Blackswan $SWAN v2 Progress Report #1
Cryptocurrency markets are heavily correlated and full of downside tail risk. While there are many tokens competing to achieve the highest positive growth during these periods, virtually none of the projects plan for the opposite, extreme contraction during market cycles.
Blackswan maintains stability not only during market growth cycles but unleashes growth during contractionary market periods with the aim to move as an anti-fragile asset or uncertainty index.
Development of the Blackswan hedging platform and bridge aggregator have commenced! In order to keep up with our increased development pace, we have expanded the team to now include, 1 UX/UI designer and 2–3 new developers. This means that the complete team composition includes 2 founders, 3 developers, 2 community managers and 1 graphic designer.
Blackswan Hedging Platform Changes
After further research into our initial delta neutral LP provision strategy on traditional DEXs, we decided that due to a number of potential issues, a completely decentralized optimizer utilizing the strategy we outlined in our previous article, would not be viable.
Instead we have decided to tackle liquidity provision on decentralized derivatives platforms such as Perpetual Protocol. Highly imbalanced open interest on platforms like Perpetual Protocol mean that there is a great opportunity to earn yield via the funding rate as well as trading fees.
Historically there have been substantially more longs than shorts on a variety of trading pairs on Perpetual Protocol, meaning that collecting the funding rate while hedging out price risk can be very attractive. Based on the average funding rate over the past 28 days on ETH / USDC, the resulting APR would be close to 50%.
Without the use of leverage, this can result in a price neutral return yearly return of 25% APR or roughly 28% APY!
This is just one of many delta neutral opportunities to be showcased on the Blackswan Hedging platform, and will allow users access to a strategy otherwise reserved for more knowledgeable market participants in an automated manner.
Blackswan Website Redesign
Designs below are not final and are subject to change and improvements! The purpose of showcasing these designs is to get community feedback on the overall look and feel.
Above is our improved landing page with a much more coherent design and focus towards directing users to our dapp as well as ecosystem growth via the stats.
The delta neutral yield optimizer is modeled after familiar platforms such as beefy.finance and others. We may instate deposit limits on each pool in order to ensure minimal yield impact on the selected strategy.
The bridge aggregator is designed to be intuitive and transparent in demonstrating cross chain routing, liquidity and more. While we plan on launching with BSC, ETH and Polygon chains supported, we would also like to add Terra, Fantom, Solana, xDai and more soon after launch.
The Blackswan Lake has been re-vamped, and although this design can stand on its own, we plan on adding more exciting stats and graphics to the page in order to represent its importance and value presented to $SWAN v2 holders.
As we mentioned at the beginning of the article, these designs are incomplete, although they allow for a visualization of what the platform will start to look like. Our designer has some serious talent, and the speed at which this was able to be put together is a testament to his commitment to the community.
Blackswan v2 Funding
We are fortunate enough to have enough funding to easily complete our platform changes and continue development, however, auditing costs and initial liquidity for SWAN v2 will have to be supplemented with additional funding.
We are in talks with an incubator that will provide us the resources necessary to ensure a successful and high quality launch of SWAN v2 that will ultimately benefit the community as a whole. In addition, our unannounced partnership will be carried over from SWAN v1 to SWAN v2 and will be announced at launch of the new token.
With the above designs, plans and changes, the Blackswan team has clearly shown an evolution of quality and contribution to the DeFi space that we hope will have a lasting impact. Our token design, hedging platform and bridge aggregator are all unique and substantial improvements upon existing market offerings that we cannot wait to release to the public!
Weekly updates will continue on our Medium page.
