ALQO Lightpaper 2020

A Decentralized Ecosystem for

Financial Services (DeFs)

A Liquid ObjectA Liquid Object

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We aim to empower those sidelined users with the tools needed to capitalize on this new and innovative tech.

Traditional finance (“TradFi”) operates in an archaic and obtuse manner, where

users have limited control over their finances and receive the least incentives and

opportunities for saving. Decentralized finance (“DeFi”) grants financial

autonomy and more significant savings opportunities. It provides for products

direct to the consumer transparently and openly. DeFi is the evolution of finance

inspired by the limitations of TradFi and gives individuals control of their financial

sovereignty.

The process of empowering users with DeFi requires a multi-prong approach to

understanding the current landscape and the products and services offered by

this new financial technology. Historically, DeFi offers only the most tech-literate

users the aforementioned increased opportunities; currently, everyday users

interested in capitalizing on this growing financial technology remain on the

sidelines.

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Overview

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We present ALQO, a decentralized ecosystem for financial services "DeFs,"

focused on contributing real-world use and value to decentralized finance by

bridging the traditional banking experience with decentralized finance via an

accessible platform centered on user convenience and ease-of-use. ALQO

will develop stand-alone decentralized products for those users wishing to

remain completely focused on autonomy.

ALQO, meaning "A Liquid Object," is a nod to the economic term liquidity,

which is a significant contributor to, and indicator of, the success of a

cryptocurrency's ecosystem, which will play a role in the adoption of the

ALQO network. The ALQO team incentivizes its ecosystem's growth with

diverse liquidity mechanisms, such as auctions, lending, and indexes.

ALQO builds its next-gen network using the dynamic Substrate framework.

The integration of its custom chain to the Polkadot protocol allows maximized

scalability in a secure and developer-friendly framework, providing rapid

product development and deployment; while retaining composability and

interoperability at its core. Using this cutting-edge tech stack to develop its

"DeFi" product offerings, ALQO delivers innovative decentralized financial

products to market fast.

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DeFi

DeFiDecentralized finance intends to disrupt traditional banking and the conventional

financial services market entirely. However, a steep learning curve, poorly

designed user-interfaces, lack of security measures, high fees, and a generally

poor user-experience present an opportunity for improvement of this industry

segment to serve non-native and native crypto users better.

ALQO's DeFs solves these issues by providing a safer and more comfortable user

experience for all participants and provides products that address these industry

issues. It accomplishes its simplicity of use and safety by delivering audited contract

products, an optimized user interface to reduce asset allocation errors, and more.

While ALQO focuses on its decentralized ecosystem for financial services to drive

financial innovation through technological improvements, using the ecosystem in

daily life is the EONS financial services layer's goal. EONS is an extension of the

ALQO ecosystem. EONS is a bank-like financial services platform that bridges the

gap between traditional and digital finance, giving the user more control over their

money and savings, with more opportunities to earn, such as higher interest on

novel investment opportunities, than conventional banking.

EONS provides several money-management conveniences, such as a Visa debit

card (launching in the UK, coming Q2 2021 for the EU and USA), IBAN accounts for

UK & EU residents, expense analytics, and automatic personal savings accounts the

user controls. EONS gives users the ability to access decentralized and standard

banking services within a complete product suite to ditch their out-of-date bank

permanently.

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Products

ProductsIn ALQO's DeFs, are several innovative products. Auctions allow users to buy and

sell assets in a public auction. Auctions are simple and easy to set up, and listing

options are robust. In an example auction, a typical listing will see the user set the

auction rules, like duration, accepted assets, price decay rate, reserve, trade price,

and asset settlement addresses for the settlement contract. The contract controls all

assets listed for auction, and bidders must prove ownership of funds to make bids.

Contract finalization settles automatically. When an auction ends, funds disburse

automatically, and assets transfer to the buyer.

Lending is a second product service. With lending, users can loan and borrow

products via collateralized assets. Typically, a user forms a request and sends their

collateral to the smart contract; the contract pool then fills it if the requested loan

asset is available. The rate determines the collateral or borrowed asset correlation,

loan pool availability, and contract duration. Pool availability and asset collateral

set the borrowing limits. Lending is a great way to earn interest on your crypto or

stable coin collateral or borrow against others' assets while retaining ownership of

your primary collateral, assuming you satisfy your loan commitment.

Indexes are a great way to gain exposure to multiple assets in one product. Built

using the ALQO blockchain, we provide market index products whose value is

represented by a single token issued. As interoperability between different

blockchains increases, proper multi-chain indexes are now a reality, offered in a

single token. We plan to release several index products in permanent and short

term indexes, with varying assets and risk templates.

Automatic Marker Making, "AMM," allows users to stake assets that trade them to

fulfill exchange buy requests. ALQO's DeFs goals include establishing AMM

algorithms that create an attractive option for users interested in tiered risk

allocations of automatic trading strategies. ALQO's team plans to release detailed

information in its official forthcoming technical whitepaper regarding the type of

trading strategies employed and the risk each provides. AMMs have experienced

a surge of interest lately. We feel ALQO's AMMs are an attractive proposition.

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Interoperability

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Smart contracts are code that allows a blockchain to handle financial services

without a centralized party. All of the ALQO products are smart contracts built

on top of the ALQO blockchain network. Interoperability allows different

blockchains to communicate directly; we believe that interoperability is a

significant contributor to the crypto industry's future mass adoption success.

The ALQO chain provides increased multi-chain interoperability. ALQO seeks

to expand on this functionality for our ecosystem. It is a significant and critical

element of our long-term vision for integration with our EONS financial

services product. It will allow us to decentralize finance and banking to reach

the masses.

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Tokenomics

Tokenomics

The ALQO token will play an integral part in the DeFs ecosystem, allowing access to

the many planned products. Currently, the ALQO blockchain exists as a Pivx-based

proof-of-stake masternode network, with approximately 69M coins in total supply

and circulation. The ALQO coin's current holders will take part in a non-expiring

coin-to-token swap to receive mainnet tokens on the new ALQO chain.

We will phase out the existing masternode structure of ALQO's current network,

and current rewards will change. The node structure of our new chain will take

precedent. However, node operators will continue to receive rewards for securing

the network. ALQO will use a node structure and network hierarchy comparable to

existing parachains. We will release detailed tokenomics of our new chain in a

forthcoming technical whitepaper.

The mainnet ALQO token uses include DeFs products, staking, and mainnet

contract gas. Increasing the usability of the mainnet ALQO token will help control

supply while increasing demand.

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Wallets

WalletsThe ALQO wallet's primary goal is to enable access to a user's token holdings and

the DeFs products and services by employing a platform-agnostic design. The era

of desktop wallets is closing; browser extensions like MetaMask allow user custody

access to new and innovative products in the DeFi space. Our wallets will capitalize

on the trend and release first as a browser extension and later to Android and iOS

mobile app platforms.

Traditional DeFi products are built directly into the wallet's interface, reducing

participation fees and complexity. All products enabled on the ALQO network will

be reviewed to minimize user risks. The Substrate network allows control of many

different assets, regardless of the blockchain type, which will enable users to

manage all of their assets in one location. Users can manage their security using

their operating systems, secure passwords, and mnemonic backups.

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Conclusion

ConclusionALQO's DeFs' mission is to unencumber finance from its legacy constraints in

conventional banking and financial services. DeFs aims to empower users with

innovative financial products and services in a decentralized manner that is simple

and easy to use. Users can make the most of ALQO's DeFs by bridging the gap

between banking and decentralized finance with EONS, the licensed and

regulated financial services platform.

ALQO helps architect the future of finance with cutting-edge financial technology, bringing

everyone financial freedom.