Asset Manager

Efficiency, Composability, and Security.

Table of Contents

    • 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. Protecting liquidity providers. Most liquidity providers to decentralized exchanges have a negative return compared to simply holding their original assets. Liquidity providers need to earn a positive return for their service to the platform.

      5. No custody. Your assets are fully yours, never commingled with others, and we couldn’t touch them if we wanted to.

      6. 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

      Among other things, the Asset Manager:

      • Performs price discovery to ensure fair price and execution.

      • Operates the Trading Mempool, Arbitraging Counterparty, and Open Outcry to fulfill transactions.

      • Facilitates single-sided liquidity by managing asset availability to various functions.

      • Directly interfaces with third supported blockchains.

      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.

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