Real-World Bonds
The goals of Abachi is not to create a fork of Olympus DAO but to use the underlying tech to enable real-world bonds to go through it.
This requires a lot of work and has been broken into phases. Please see below to understand how this will eventually work. Abachi is a multi-year and multi-phase ambitious project.
Abachi will also need to work with various jurisdictions to see how these can be offered but it will start by looking into the Singapore and Australia markets via fully accredited front-end partners.
The technology and use of the protocol will be licensed in ABI.
Phase 1:
In the initial phase Abachi will launch with the simple DeFi three pool structure.
1. Stable Earn Pools: These pools power lending and borrowing on accredited pools, users will be able to pool their money in these pools and earn ABI as an incentive. The pool is then used to power borrowing needed across the ecosystem.
- Accredited stable pools (wallet must have been approved before)
- Decentralised non-accredited pools
2. Centralised Borrowers: Accredited pools will power all centralised lending and borrowing for our partners. An accredited business can deposit USD or AUD into a pool which is accredited (launched by a known partner, read how). The pool can be shared across various other accredited front-ends that allow their own KYC/Accredited users to borrow or lend. Abachi SDK will make it simple to launch these pools and provide a Web app to manage them. This money can now be used to provide credit svcs to real-world. In this case the partner would need to acquire any required licensing for regulations or KYC/AML. They are incentivized to do this via ABI rewards and they are charged a fee per transaction.
3. Reserve & Insurance Fund: Funds from the stable coin pools will also be used to keep some funds in deposit as insurance or reserve. This is to ensure that if the staked ABI is not able to cover the cost of any malicious attempt to the system, there is another pool that can be used to cover. This includes any coverage we need for smart contract code also.
Phase 2:
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In the second phase, we hope to bring all the pools we launched in the traditional DeFi three pool strategy to all be powered by the underlying tech.
1. Bond issuers will need to stake ABI into a smart contract. These are denotes as reserve bonds. These act as a guarantee against any issues originating from a given issuer and ensures no malicious bonds enter the system. Where the protocol or governance deems a breach of this, the reserve bonds are withheld by Abachi. Both staked and unstaked ABI can be used for these bonds.
2. Tokenized credit pools & Bonds. Once the issuer / partner has staked the required bonds, they will then have access to both a Web UI and underlying contracts (by adding their address to allow-list). They can use this to issue 1:1 bonds, tokenize credit pools and launch those pools, or even bring in third party real-world assets in via other services e.g. centrifuge to offer into the markets.
3. Abachi will launch a market for accredited partners that have gone through the compliance needed to be able to trade these bonds, nft credit obligations etc. Read on how Abachi Handles compliance across partners.
Last modified 1yr ago