When I first started looking at the DEUS project I found it very confusing both in the token generation and the actual platform. Turns out, it is both much simpler than I originally understood and yet deeply complex at the same time.
The token generation is a continuous model, with each token purchased the ethereum is placed in a reserve treasury. There is no limit to the number of tokens – like an infinity pool they just keep coming.
To understand this concept better you should read on Lafayette’s blog post
The product of DEUS - The Conductor platform
The platform helps users to create assets that mirror regular stocks and shares so that people can invest in say Tesla or Apple without having to go through lengthy signup procedures or KYCs. As the mirrored shares follow the real world trajectory, the assets they call “Registrars” go up and down on the mirrored DEUS platform.
That is the simple explanation, now let me try and go a bit deeper.
Lafayette is the founder of DEUS. He started off buying Bitcoin back in 2013 and found everything so fascinating especially after he did his first transaction. He checked on Blockchain.info which was the biggest block explorer at the time, and saw his transaction recorded on a totally different website that he made the transaction on he instantly realized blockchain is a decentralized global database, this will change everything – he was hooked.
“I started buying Bitcoin on a regular basis, and got really interested in the technology and how it could change the world. Then during 2016 I started building a mining farm in Russia, and during the ICO craze I went in deep and invested into pretty much every single ICO that was out there.”
And yes, he made money, a lot of money.
But it was the technology that interested him most. He read everything he could get his hands on and subsequently established a big mining farm in Russia. At the same time, he wanted to trade traditional stocks and shares.
“I wanted to buy Tesla amongst other shares but it is very difficult compared to cryptocurrencies where everything is so easy and so open.”
Lafayette has a number of dislikes in investing or trading in traditional stocks. One being the necessity of registering with a brokerage, which you might not trust. Another being the high fees involved. It just didn’t sit comfortably with him. There had to be a better way – using the ease of cryptocurrency with real world stocks and indices.
But before we delve into the platform, I want to return to the token generation – the continuous market maker.
“We created an exchange, using the same UI as others such as Uniswap, to create our continuous token. We have a market maker in place with the increasing supply so the price increases also.”
I ask – what seems like a reasonable question – if you keep on minting coins, how does that not devalue the value?
The answer is a reserve of Ethereum collected at the same time. The market maker calculates the price but as the price is rising so too is the reserve.
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“This creates a rising price with a rising supply. It’s not as though the shares are diluted; the treasury rises at the same time. The coolest thing about a continuous token model is that if you buy at one price, it can never go lower. We didn’t pre mine any coins so this model is actually the fairest to everyone. Everything that is done is done by the users – we just provide the platform.”
This model means there is no gap between buying or selling, or arbitrage. There is no spread between exchanges.
The token was launched four days before our interview with 200 contributors already involved.
Now back to the platform. As Lafayette explains: “The platform is a place where people can create a new asset that mirrors any asset on the stock exchange or even a basket of assets. This mirrored asset can now be traded on the DEUS platform.
“Exactly, so a person creates an asset, for example Tesla at 300 euros. He buys one register that mirrors Tesla for that mount. If the price of Tesla rises, he can then sell at the new price and burn the token on the platform.”
Lafayette stresses that the site is not for sophisticated traders but anyone who would like to trade real shares. There are no instant trades on the platform: “People will buy a Tesla and hold it in their wallet.”
As we stand in the middle of a DeFi on steroids moment with people investing in food-shaped projects of dubious credibility, there is something very reassuring about being able to invest in stocks and shares, or their cryptocurrency twins.
Lafayette explains they will make it easy for people to set up their desired mirrored share. He stresses too that this is not instant trading as a blockchain infrastructure is not built for speed.
“There is no interest in deposits in banks, DeFi is great but scary, so why not look to mirror real stocks and share but with the ease of cryptocurrencies. This is more for investments than trading.”
How will DEUS make money, or the Decentralised Autonomous Organisation DAO behind it? Transactions but these will be tiny compared to traditional fees.
Finally, the penny drops for me. DEUS is a way to invest in stocks and shares via mirrored cryptocurrencies. This is a long-term game not a short term trading hack.
Right now, the token generation event is live and the platform is planned to be live before Christmas.
Sounds like a nice Chrissy Present for hubby or wifey.
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