EVOProtocol	Embededd Volumetric Optionality Protocol	v1.0.0+0

Embedded Volumetric Optionality Protocol

Abstract

EVO Protocol is a dynamically adjusting ERC-compatible protocol that adjusts based on volume

EVO tokens are minted and burned on-demand by deposit and withdraw operations directly via the contract.

Initiated Protocol Operations

• Deposit
  
• Withdraw
  
• Transfer
  

These operations contribute to transfer rates. Transfer rates are tracked both in aggregate and individually (i.e. per address). The period of time for tracking is the last 25 days.

Time and Period

V2 Upgrade will include upgrading the time and date to a new libray

Time and Period should be defined on a per market basis. Meaning you should choose what is computed to be the optimal time period based on historical analysis.

Multiples of 4,6, etc are suggested

• For Example 25 days has36000 minutes, which divided by block_time=4 gives 9000

GasEVO is determined both in aggregate (dynamically) and individually for each address based on transactional (i.e. volumetric transactional information) stored and updated through the smart contract during the previous transactions.

All three operations such as deposit, withdraw and transfer can equally contribute to the transfer rates that are tracked totally and individually(as per holder) by the smart contract for the period of the last 25 days.
The token price is determined dynamically(and individually for each holder) based on the information stored or updated in the smart contract during previous transactions:

Utility

Note: This is specific to the implementation based on the reference specification , as described in the whitepaper (./latex/*/.tex)

Given enough liquidity, GasEVO has a way to compute the exchange rate towards the base instrument (ETH).

Like this, movements of the bigger or significant volumes can be interpreted as market trends (i.e. gwei pricing.)

By utilizing small volume movements and disincentivizing the larger ones without compensation to holders every exceeding bulge bracket trade of the token is tracked by the smart contract and higher "transactional" fees are applied (re: withdraw, or 'consumption').

Note: We describe transactional fees sometimes as an interest fee. This language is marked as depreciated as this confers and/or implies a rate of return that is somewhat deterministic, this however is not the case per se as it is entirely possible that all trades could be below the transfer rate during a period/epoch.

Transference of funds below daily volume threshold does not impose any interest fee.

When the threshold has been exceeded some percentage of tokens gets burned, for the transfer, for deposit or for withdraw of the base instrument (ETH).

Thresholds are tracked individually per address as the average rate and have a function by which they operate on.

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title: 'EVO Protocol Reference Implementation Overview'

EVO Protocol Reference Implementation Overview

[time=Wed, Oct 7, 2020 4:07 AM]

Table of Contents

[TOC]

Protocol Overview

EVO tokens are minted and burned on-demand by deposit and withdraw operations directly via the contract.

Initiated Protocol Operations

• Deposit
• Withdraw
• Transfer

These operations contribute to the transfer rates. Transfer rates are tracked both in aggregate and individually (i.e. per address). The period of time for tracking is the last 25 days

25 days has 36000 minutes, which divided by block_time=4 gives 9000

GasEVO is determined both in aggregate (dynamically) and individually for each address based on transactional (i.e. volumetric transactional information) stored and updated through the smart contract during the previous transactions.

All three operations such as deposit, withdraw and transfer can equally contribute to the transfer rates that are tracked totally and individually(as per holder) by the smart contract for the period of the last 25 days.The token price is determined dynamically(and individually for each holder) based on the information stored or updated in the smart contract during previous transactions:

{equation.gasevo}

$$ P_{t+1}(h, a):=\sqrt{\frac{D_{t}}{S_{t}}}+I_{t+1}^{\prime}(h, a) $$

The above equation will compute the price for a holder $$h$$ to purchase a certain amount of EVO tokens in exchange for a base deposit in ETH/WETH at the given discrete time - $$t +1$$ , where $$Dt$$ stands for the deposit of ETH in the smart contract at previous time - point and $$St$$ stands for the total supply of EVO tokens so far.

The first component with the token - base ratio $$Dt/St$$ under the square root is the indicative price and does not depend on the purchase/transferred amount, $a$.

Ergo, the component $$I_{t+1}^{\prime}(h, a)$$ is called the discounted interest rate and it can grow proportionally to a within a range of $$[0, 0.24]$$ of $$a$$.

Higher interest payouts can slow down, deaccelerate, the price movement. Interest rate determines how fast, or accleration, such price can change depending on the market demand & supply pressure for EVO-based tokens. Interest[#] is computed individually for each EVO holder.

Note that all interest payments are contributed to the same common deposit Dt on the smart contract, which is supporting the indicative price. This means that interest is shared by all holders that choose not to trade their tokens at the moment.

An ERC20 smart contract will contain the information about the balance of every address,

Address Information (i.e. wallets)

$$B(h) s.t. Bt + 1(h, a): = Bt(h) + a$$.

In addition to the individual balances, GasEVO contract keeps track about how much each holder has transferred in the last epoch (i.e. 25days)

Total average transfer rate for an address

$$avg(Rt + 1(h, a)): = avg(Rt(h)) + a$$

Total average daily transfer rate for all holders

$$avg(R¯ t + 1(h, a)): = avg(R¯t(h)) + a$$.

Calculations

More formally calculation of the individual interest rate as well as the applied ownership discount can be described in following steps:

For: $$l := 4 , m := 26$$ are the low and high transfer rate constants and

$$\beta=\frac{\operatorname{avg}\left(B_{t+1}(h, a)\right)}{S_{t+1}}$$, the future balance ratio, we resolve $$\tau=\frac{\operatorname{avg}\left(R_{t+1}(h, a)\right)}{\operatorname{avg}\left(\bar{R}{t+1}(h, a)\right)}$$ is the future transfer ratio and $$\theta=\frac{B{t}(h)}{S_{t}}$$ is the ownership ratio at a discrete point in block time then we resolve the interest rate;

$$ P_{t+1}(h, a):=\sqrt{\frac{D_{t}}{S_{t}}}+I_{t+1}^{\prime}(h, a) $$

thereby applying the ownership ratio for discount

$$l_{t+1}^{\prime}(h, a):=\frac{a \times \sqrt{l * \max \left(\min \left(\theta, l^{2}\right), 1\right)}}{100}$$

whereas %$$I$$ is the discount*, thereby computing the discounted interest as,

$$I_{t+1}^{\prime}(h, a):=\max \left(I_{t+1}(h, a), l_{t+1}^{\prime}(h, a)\right)-l_{t+1}^{\prime}(h, a)$$

Price dynamics of equation (1) depends on the transactions volume conducted by all of the involved market participants and bounded by $$O(sqrt(n))$$.

Therefore it can be expected that the demand for EVO Protocol based tokens like GasEVO will be able to represent the demand for the value storage, whereas GasEVO represents the value of storage as a derivative function of the underlying asset, Ethereum (i.e. gwei, or as a fixed unit of account for contracting)

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Appendix

Window Calculation

informative 525600 / 4 = 131400 131400 / 25 windows = 5256

tags: {erc20.balance_wallet}

Address Balance

$$B(h) s.t.$$

$B_{t+1}(h, a):=B_{t}(h)+a$

Adress Balance

$$B(h) s.t. B_{t+1}(h, a):=B_{t}(h)+a$$

Discrete Transfer Rate

tags: {calculation.25day_transfer_rate_discrete}

Equations

Aggreagte Transfer Rate

tags: {calculation.transfer_rate_aggregate}

$$\operatorname{avg}\left(\bar{R}_{t+1}(h, a)\right):=\operatorname{avg}\left(\bar{R}_{t}(h)\right)+a$$

Future Balance Ratio

tags: {equations.future_balance:ratio}

$$\beta=\frac{\operatorname{avg}\left(B_{t+1}(h, a)\right)}{S_{t+1}}$$

tags: {equations.future-transfer:ratio}

$$\tau=\frac{\operatorname{avg}\left(R_{t+1}(h, a)\right)}{\operatorname{avg}\left(\bar{R}_{t+1}(h, a)\right)}$$

tags:{equations.ownership:ratio(DISCRETE_POINT)}

$$\theta=\frac{B_{t}(h)}{S_{t}}$$

tags: {equations.gasevo}

P_(t+1)(h,a):=sqrt((D_(t))/(S_(t)))+I_(t+1)^(')(h,a)

$$ P_{t+1}(h, a):=\sqrt{\frac{D_{t}}{S_{t}}}+I_{t+1}^{\prime}(h, a) $$

2 Interest Rate

tags: {equations.interest_rate}

$$I_{t+1}(h, a):=\frac{a \times \min (\operatorname{avg}(\beta, \tau), m)}{100}$$

3 Ownership Rate

tags: {equations.ownership_ratio}

$$l_{t+1}^{\prime}(h, a):=\frac{a \times \sqrt{l * \max \left(\min \left(\theta, l^{2}\right), 1\right)}}{100}$$

4 Discounted Interest Rate

tags: {equations.discounted_interest_rate}

$$I_{t+1}^{\prime}(h, a):=\max \left(I_{t+1}(h, a), l_{t+1}^{\prime}(h, a)\right)-l_{t+1}^{\prime}(h, a)$$

tags: {equations.discounted_interest_rate_qed}

$$I_{t+1}^{\prime}(h, a) \in[0,0.24]$$

tags: {equation.stress_test}

appendix scenario: Firesale

$$\sqrt{\frac{\left(m-\max \left(l^{\prime}\right)\right) * D_{t}}{100}},$$ $$where; m:=26, l:=8$ and S_{t}=B_{t}(h)=1$$

Errata

Volumetric Manifolds

A constructed mechanism for facilitation of efficient and effective contract$^[1]$ trading

$$ G:=(V, E, w) $$

Appendix and FAQ

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Security

please contact: <mailto: sam@manifoldfinance.com>for bugs/security issues, thank you.

License

SPDX-License-Identifier: SSPL-1.0