Chapter 1 | Financial Innovation in Blockchain Transformation: A Preliminary Exploration of the Origin of WaykiChain Synthetic Asset ROG

"In the quiet space, an artificial celestial body system composed of two satellites is suspended serenely, like a little boy sleeping soundly in a cradle. In another space-time coordinate, a metal box the size of a notebook is slowly unfolded and automatically presented Three small screens are displayed to project the artificial celestial system in space on the small screens in all directions, and everything appears silent until a small red button is pressed."

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1. Rod of God space-based space weapon system RFG and WaykiChain space-based currency ROG

Rods from God, abbreviated as RFG, means God's rod space-based space weapon system in Chinese, also called God's rod. It consists of two satellite platforms, one of which carries high-density metal rods made of tungsten, titanium, and uranium, and the other satellite is responsible for communication and targeting.

Atomic bombs and hydrogen bombs are very lethal nuclear weapons. They release huge energy clusters including light energy and heat energy to destroy targets through nuclear fission and nuclear fusion. However, the space-based space weapon system RFG does not rely on any ammunition, but completely relies on rocket thrust and The huge kinetic energy generated by the free landing destroys targets such as large buildings and underground bunkers hundreds of meters deep, and the attack effect is comparable to nuclear weapons.

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1. What is the decentralized synthetic asset system Wayki-X?

To understand Wayki-X, you must first understand the concept of "synthetic assets". The synthetic asset is a simulation of the price of the initial asset (also called the original asset), not the initial asset itself, which means it does not have other attributes of the initial asset. For example, the legal currency of the United States, the U.S. dollar, is an initial asset with attributes such as compulsory payment and government endorsement, while USDT is a synthetic asset that is used to anchor the U.S. dollar and introduce the blockchain. The price of USDT is basically the same as the U.S. dollar, but it There are no attributes such as compulsory payment.

Why do you need synthetic assets? The most important significance of synthetic assets is to meet trading needs and provide investors with trading tools without requiring them to actually hold or entrust them to others. If an investor is bullish on gold, he can buy real gold to earn the price difference, or he can buy synthetic assets of gold, but he does not want to hold gold because of the wear and tear and loss of gold. In addition, some initial assets such as Facebook stocks are not available for trading in all countries, but users can invest in them through synthetic assets. In short, the core role of synthetic assets is to break the various transaction restrictions of the initial assets and provide an alternative solution to allow transactions to proceed without hindrance.

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2. What can users do with Wayki-X?

In fact, the process of Wayki-X issuing synthetic assets is relatively simple. First mortgage ROG to generate xUSD, and then use xUSD to purchase synthetic assets. Based on this, users can be divided into three categories, and there are some differences in the mechanisms corresponding to each category of users:

1) Mortgage users: Only mortgage and no transaction. Mortgage ROG at a mortgage rate of 800% to generate xUSD, and xUSD is pegged to the US dollar 1:1. Assuming that the price of ROG at that time was $1, staking 800 ROG can generate 100 xUSD, and a debt is formed at this time. It can also be understood as follows: $100 is borrowed against a motorcycle valued at $800, and the $100 is a debt. The ratio of personal debt to total debt is the debt ratio. The system distributes rewards to mortgage users according to the debt ratio, including additional issuance reward ROG and transaction fee reward xUSD. The former needs to be locked for one year, and the latter can be used after receiving the account. In addition, if a user who trades synthetic assets loses money, the lost funds will flow into the fund pool, and staking users will share this part of the income from the fund pool.

If there is a mortgage, there is a redemption. If you want to redeem ROG, you need to destroy the corresponding xUSD. ①When the mortgage rate is greater than 800%, the part exceeding 800% can be redeemed, and then continue to mortgage and mint xUSD to receive more rewards. ②When the mortgage rate is lower than 800%, you cannot receive rewards, mint more xUSD, and cannot redeem ROG. At this time, if you want to redeem ROG, you can reduce the debt by destroying xUSD and increase the mortgage rate to meet the system requirements.

2) Transactional users: Only trade without mortgage. Such users can use the WaykiChain stablecoin WUSD to buy xUSD, and then use xUSD to buy various synthetic assets such as U.S. stocks and Hong Kong stocks to earn trading income. Of course, they also need to bear the risk of asset decline. In fact, trading synthetic assets is essentially an exchange between users and smart contracts. The user hands over the xUSD to the smart contract, which will burn it and then mint synthetic assets of the same value, such as xBTC and xETH, and return it to the user.

3) Mixed users: Both mortgage and transaction. The rights enjoyed by mortgage users and transaction users can be enjoyed by mixed users, which is a combination of the former two. Of course, hybrid users also bear corresponding risks.

You may be curious or doubtful about the 800% mortgage rate, the source of ROG, and the relationship between ROG and synthetic assets.

1) Why not directly use ROG to buy synthetic assets, but mortgage ROG to generate xUSD and then buy synthetic assets?Because the price of ROG is not as stable as xUSD, buying directly with ROG is not conducive to the liquidation of synthetic asset transactions.

2) What is the relationship between ROG and synthetic assets?ROG is an important support and value endorsement for all synthetic assets, ensuring that they have value and can be liquidated.

3) Why is the mortgage rate 800% instead of others such as 200% or 900%?If the ROG mortgage rate is too low, once the ROG price falls, it will have an impact on the market, and if the mortgage rate is too high, more ROG will be taken up by the mortgager, neither of which is suitable. It is more appropriate to have a mortgage rate of 800% in the initial stage, which can effectively cope with extreme market conditions, thereby protecting the stability of ROG holders and the entire ROG mortgage pool. In fact, the mortgage rate is not static, and the target mortgage rate can be raised or lowered through decentralized governance in the future.

4) How did ROG come about and how can users get it?secondary title

3. What are the advantages of the decentralized synthetic asset system Wayki-X?

The subject matter of Wayki-X transaction is synthetic assets instead of initial assets, and adopts the generation/destruction operation mechanism instead of the form of traditional counterparty delivery. These unique designs give it seven significant advantages:

1) Low transaction cost and short settlement time.To buy stocks in the traditional way, there are usually middlemen including brokers, market makers, etc., who charge fees directly or indirectly. Transactions in Wayki-X do not require these intermediaries, which can save some fees, reduce costs, and shorten the settlement time.

2) Low barriers to entry.In traditional finance, synthetic assets are only open to experienced investors with large capital scales, while Wayki-X allows investors with small capital scales to participate. In addition, there are no market category restrictions, and users in both the cryptocurrency and traditional financial markets can participate. Virtually anyone in the world can participate.

3) The user sits on the bank.Wayki-X adopts the mortgage pool mechanism. All ROG stakers are similar to shareholders, sharing the benefits of the entire mortgage pool, and at the same time bear the counterparty risk of the transaction user's synthetic asset position. The money lost by trading users is shared by mortgage users. Similarly, the money earned by trading users is the money lost by mortgage users, and they will bear it together. In fact, if all mortgagers are considered as a whole, it is a "big banker", and each mortgager is a "small banker".

4) Fund security.The fund pool is decentralized, there is no privileged controller, and no one can embezzle the funds in the pool. In addition, synthetic assets are fed real-time prices by decentralized oracle machines, and it is difficult for anyone to empty the fund pool by changing prices and doing unilateral market transactions. In addition, users' funds are not entrusted to a third party, but are kept by themselves.

5) Unlimited liquidity.Suppose investor A wants to buy 5 BTC for $50,000, but the market sell order is as follows: 4 for $10,000 and 1 for $10,000.1. Therefore, A can only buy 4.9999 bitcoins (without considering the handling fee). If you want to buy 5 BTC, you need to spend $50,000.1. The order book mode of the exchange makes the transaction price slip, and the transaction depth is not very good. On the contrary, in Wayki-X, there is no counterparty, the user interacts with the smart contract, destroys 50,000 USD equivalent of xUSD to generate 5 full xBTC, no price deviation, unlimited liquidity, and zero slippage .

6) Barrier-free transactions.Breaking the barrier between the cryptocurrency market and the traditional financial market, users can directly use cryptocurrency to invest in traditional targets such as gold and commodities. At the same time, it breaks the barriers between countries or regions, and investors can trade various assets around the world. For example, Chinese investors can invest in US stocks.

7) No legal risk.Synthetic assets are not assets in the real world, but a simulation of real assets. When users buy synthetic assets such as stocks and gold, they are essentially trading digital currencies, which do not involve laws and regulations in traditional financial fields such as securities.

WaykiChain's decentralized synthetic asset system Wayki-X eliminates various barriers to entering the financial market, allowing any individual or institution to trade various financial products around the world, which can meet users' needs for open finance and is in line with the current financial development trend. In addition, it seamlessly connects cryptocurrencies and traditional financial markets, providing a feasible mechanism for on-chain transactions of assets in the real world. It can expand the market value of DeFi and even the entire cryptocurrency market, and inject strong development into it power. Synthetic asset trading has transformative significance and will be an inevitable trend of financial transactions in the next stage.

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3. WICC+WGRT double-mined the space-based coin ROG to create a value anchor for it

Tianjicoin ROG is not an isolated digital token. It is not only supported by the decentralized synthetic asset protocol Wayki-X, but also closely related to the entire DeFi ecosystem of WaykiChain, intertwined into an unbreakable value network, thus obtaining WaykiChain Fully supported by the DeFi ecosystem.

Breaking the traditional token crowdfunding, pre-mining and other distribution models, Tianji Token ROG has no crowdfunding, no pre-mining, and the team has no reservations. The genesis period can only be obtained through WICC or WGRT pledge mining, and truly belongs to the community. This will not only enable each WICC and WGRT holder to obtain the space-based currency ROG for free, but also make ROG closely related to WICC and WGRT, mainly reflected in:

1) Pledge WICC/WGRT to obtain ROG, so that ROG can obtain the corresponding value anchor.

2) Pledging WICC/WGRT will reduce its market circulation, which will help expand the value space of WICC and WGRT.

Decentralized synthetic assets are a new trend in financial development. WaykiChain ROG uses the decentralized synthetic asset protocol Wayki-X as an application scenario, and will be able to obtain a steady stream of value momentum from traditional finance. In addition, Tianjicoin ROG relies on WaykiChain's native asset WICC and governance currency WGRT, and they are inseparable from WaykiChain's entire DeFi ecosystem, which will help Tianjicoin ROG gain more value foundation.

Space-based space weapon system RFG is more strategic than traditional unconventional weapons, and is more favored by military powers. It is an important direction for future global weapon development. Whoever owns the space-based space weapon system RFG has the highest voice and dominance in the field of military weapons. ROG is the foundation of the financial field. Under the background of accelerated globalization, it can meet people's needs for open finance and help users in various regions invest in global assets without hindrance. ROG is like the fire of future financial reform: a single spark can start a prairie fire! This is the beginning of the era of global decentralized finance!