Asset Manager

Efficiency, Composability, and Security.

Fully on-chain financial systems face difficulties in efficiency and scalability, and are prone to multiple forms of attack such as MEV. Meanwhile, fully off-chain systems allow the operators of the system to take actions which are to their interest but not the participants’, leading to violations of custody and order integrity, and ultimately eroding the trust in centralized financial systems. As we created Deepwaters, we realized that the optimal solution would need to transcend the existing paradigm in which platforms make tradeoffs between trust and efficiency. We considered what would be important to our users, and decided to focus on a number of things: 

1. Fairness in price, meaning the price you are obtaining is truly market-representative.

2. Fairness in execution, meaning you get what you think you are getting when you initiate a transaction. In practice, this requires eliminating slippage and front running while ensuring the inviolability of the order flow.

3. Composability. Like you, we believe in the omni-chain future.

4. Secure, optional custody. You can use Deepwaters in a fully non-custodial manner, or temporarily leave your assets within the system for faster, more efficient swaps and other transactions. No matter how you choose to use Deepwaters, your assets are fully yours, never rehypothecated, and we couldn’t touch them if we wanted to.

5. Validation and Auditability. We want you to trust us, but you don’t have to trust us. You are always able to verify that we are doing what we say we are. You can be a validator in real-time, or you can audit us post-facto.

The Asset Manager is the composable business logic layer which allows us to simultaneously fulfill all of these goals. It allows for off-chain operations, accounting, and calculations while interfacing with multiple blockchains.

Asset Manager Schematic Representation

Asset Manager Functions

The Asset Manager directly interfaces with supported blockchains, maintaining the overall state of the system and ensuring proper functioning and accounting. Its operations are audited in real-time by independent third party validators. The asset manager will be progressively decentralized, ultimately resulting in a system fully protected by blockchain consensus in addition to cryptographically protected communications and hardware. This will guarantee the proper functioning of the system, ensuring no discretionary actions can be taken by any parties, including the Deepwaters team.