A Dynamic Liquidity Ocean ' DLO' for Autonomi Network: L3 DEFI Liquidity on Demand

After thinking about this for many years (since about 2018 I think,) I have recently mined the ML data accumulated by Grok to help better organize and present the design above.

As such I have posted a public gdoc now called “DLO Technical Whitepaper 1.0” that anybody can view or download here describing how it all works here, with diagrams and psuedo code included in the link below.

The goal in creating DLO was to use the principles and ‘ethos’ of the Autonomi Network to leverage existing Autonomi capabilities to design what is essentially a dynamic liquidity for L3 Settlement based on the full reserve value of the network hardware and the software that runs it, and in the process fundamentally create an architecture for the native autonomi token ‘NAT’ which is locked/bound to the Autonomi Node-runner hardware , all or portions of which can be made mobile as full reserve certificates at the discretion of the node operator (white list, blacklist control).

The NAT Native Autonomi Token is essentially a one time ‘Genesis event’ which makes use of a (yet to be fully developed/figured out) Proof of Resource Value ‘PoRV’ algorithm designed to periodically consult 3rd party oracles so as to adjust a ‘combined value’ of

a. system utility(# of antnode and storage in operation-ability to do assigned work, which is relative between systems) and

b. the actual (and periodically by noderunner selected depreciation schedule adjusted-consulting trusted oracle services for same) ‘market value’ of the hardware to set the ‘overall value’ of the NAT (locked to the system) token value at time of Genesis by the Node-runner Owner of the system hosting antnodes and running the DLO client on the Host Operating System.

Anyway the link is below for anyone interested… 14 pages, yeah @zettawatt it’s a heavy read. :slight_smile:

DLO is fundamentally a full reserve digital money creation system (not currency creation) which dynamically supports the liquidity needs of Layer 3 DEFI without any third party counter risk.

Hardware is RWA, a ‘real world asset’, where MSRP price discovery of new and used hardware value is easy to determine using US $ as the unit of measure while depreciation or expenditure write offs are the choice of the Node-runner Operator/Owner of the system (Different nation states have different rules as to how this depreciation is applied or whether or not the hardware equipment , together with the software if it has an MSRP value (ie the Windows OS or the Apple MAC OS), can be written off as a one time expense.

The Autonomi Software configuration running on the operator hardware is the factor within PoVR which determines the utility value portion of the calculation. (how they get balanced is open for debate..)

DLO is designed to be built from 100% FOSS sources, currently referencing the most popular projects in Github.

In practice a DLO could be designed and built to underpin any Layer 0 Network like Autonomi with full-reserve digital money (not currency) based on the utility of the software running on the node hardware and the value of the hardware itself using the US$ as the unit of measure ( Layer 0 networks of which, there are not that many).

For those interested in taking a deep dive into the world of full reserve digital money with dynamic utility for Layer 3, please post your comments here. This paper is some place to start that conversation.

We have a chance to build a full reserve money system with dynamic liquidity for Layer 3 which can be nicely integrated into the existing Layer 3 ‘L3’ Token currency (being ANT/$AUTONOMI), before someone else does it.

Once this ‘cat is out of the bag’, the clock starts ticking and it does become a race.

DLO is about preserving buying power, by first sopping up and, then disconnecting from the erosion root cause, which is fiat.

Ask yourself this question? Why should US Stablecoins , Bitcoin, SOL, Cardano and Ethereum be largely the biggest benefactors of legacy fiat flight?

DLO enables us to change the narrative in much more positive way, linking digital Money directly back to Main St. which is sort of what Bitcoin does, but in a much more power wasteful way.

Much better to buy hardware with that fiat , setup Autonomi antnodes then re-monetize that spent fiat value locked in your Autonomi Network hardware and software Node-runner setup as a ‘proofed’ ‘store of value’ , which becomes a PQC protected(by Autonomi) ‘digital money’ full reserve anchor, which can at the Node-Runner’s discretion, be transformed and transferred where needed to be staked as 1:1 certificates to back Layer 3 DEFI, all the while paying the Node-runner for staking those certificates as needed, when the volume spike is over, the certificates are released, returned to the Node-runner operator of the system to which they are serialized, then burned and the original value of the token is now fully available to do it again, and again and again. :slight_smile:

5 Likes

Can you do a quick comparison between this and Autonomi’s existing proposed tokenomics, and benefits of your proposal vs the existing plan?

On the face of it, I like the idea of being able to do something with the value of the hardware being dedicated to the network.

It seems very complex. How feasible do you think it is / how much work might it be to implement?

One clarification I’d like ask for is the role of the PoRV certificates is what they can be used for in the higher levels of the system, e.g. defi. I assume they can only be used for time-based activities, e.g. staking / yield generation, because if they could be used for collateral to borrow against / anything where value can immediately be released vs over time, it’d be easy to realise the value then stop providing resources, so any value unlocked must be for value provided over time, not just value of hardware at any given time.

Is the above assumption correct?

I’ll have a better read when I get some time :slight_smile:

4 Likes

your assumption is generally correct with the proviso the owners/operators of the Node-runner Hardware bound NAT token value transforming that value, full or partial to a mobile cert value authors/owns the white/black list and terms that governs which projects can tap their liquidity availability, for how long and,

As for doing a tokenomics comparison, really ANT in its current form is really a Layer 3 fiat currency with controlled inflation and an ERC-20 gateway, where as DLO is a digital money Layer 1 bound to a hard store of value physical hardware resource (layer 0 , yes purchased with fiat) where L1 value is partly determined by the utility and third party oracle information, treatment of equipment write downs over time. Layer 2 is mobile certificates etc, ( better to read the Whitepaper)

Likely even the size of stake available per DEFI Layer 3 project, so think DLO white lists/black lists as a portfolio ‘rule book’ set up for liquidity, that could be in practice also automated , so ‘dynamic directed liquidity’ would also be possible , with ‘a rewards returns strategy’ as it applies to deployment of liquidity under the complete control of the Node-Runner.

As to your others questions, I don’t have a ready answer for estimates, I have just an approach I know has worked for me in the past to help find that cost, time, manpower estimate information reasonably accurately. It goes sort of like this:

As of now I am researching in my spare time the FOSS package per each capability table to determine ‘how fit for purpose’ each one is given the capability perf./sec./resource requirements, so that’s a bit of grind, AI does help though in this type of research.

Most all of the capability code can be AI tool generated (Claude or whatever) provided there is a detailed requirements story for each capability is in place first, which is the next step one takes after the above FOSS package audit per capability is complete to make sure there is a good story/FOSS package fit.

Assigning each capability to one lead developer to drive the code generation, and have another developer hand tune the build is one part of the estimate (my two pairs of eye balls on it rule).

Then its a good idea to raise and rally a system team of three devs to do ‘stitch up’ sprints of all the capabilities led by a QA release lead , so as to create a DLO 0.8 alpha and then get one dev and one QA person to run system tests, logging capabilities individually to get decent observability in place to help tune the DLO up.

Building the automated test framework is a one off, I have not looked at that, same for a live test network. One could likely clone the existing Autonomi automated test framework and re-purpose it? Maybe.

Imo a couple of people are required to gen/tune the test cases (using the story requirements. as the base line) , also defining the metric sets and pas/fail criteria from each capability story, before the test jig code is written.

then its always a good practice to have a different QA engineer gen the test case code to be used to validate each capability, interviewing the test writer first before starting that effort.

so that’s the general approach I use to generate a solid estimate.

I’m just not there yet. It’s a journey. at my current pace and availability maybe I have the stories detailed by end of year.

The DLO 1.0 as presented imo, is in good enough shape to maybe have the emerging Autonomi developer co-op @zettawatt take the lead on it, IF, and that is a big if, we can get enough people interested to help out.

Also for the test network there is the question of API set up for the Layer 3 DEFI apps, and how to detail that in the Tech White Paper at the example level and what existing ones to transform to support the test.

I don’t pretend to have all the answers, but my research now tells me a full reserve digital money system with dynamic liquidity, what I call a “DLO’ is now possible using existing FOSS and AI driven research confirms Autonomi Network being an excellent foundation for a full reserve DLO.

How long it would take to build the DLO can be discovered using the above approach, compiled in a spreadsheet, only after the story requirements and test cases are detailed.

Once you see this DLO idea, you can’t ‘un-see’“ it. I think the DLO full reserve dynamic liquidity (in the right place for the right period of time, under the direct control of the Node-runner) has ‘legs’ .

:wink:

2 Likes

The epic transform here in DLO is

from fractionalized reserve fiat money expansion to

full reserve digital money with dynamic liquidity to serve transaction volumes of L3

which imo can’t be overstated.

DLO removes the fractionalized reserve ‘Fiat currency printers’ out of the economic equation long term (Especially when people and commercial entities peer 2 peer start buying and selling RWAs among themselves with NAT) .

DLO replaces these legacy fractionalized fiat currencies with sound digital money, NAT, backed and locked to what are RWA ‘real world assets’ (purposefully deployed hdw/sft). The value of NAT is manifested by PoRV as a full reserve which is backed/proofed with buyer evidence together with 3rd party automated oracle market valuation.

The NAT is then the ‘stationary’ locked to the RWA hybrid software/hardware value backing for the creation (NAT value is temporarily decremented/burned in a fungible manner) and also re-absorbed via (JIT) mobile digital cash equivalent certificates. ‘JIT’ certificates provide the staked liquidity to those L3 containerized (containers long term rented by Node-runners) Apps.

This means the JIT certs are effectively transforming existing Layer 3 currencies to be full-reserve backed currencies and business solutions providing settlement of transaction volumes as they occur for a fee, where the issuer of the staked liquidity also earns a fee.

Those Layer 3 full-reserve backed currencies will then be subjected only to the supply/demand market forces of the underlying PWAs and human resources effectively employed that are backing those JIT certs in the DLO for use by those L3 currencies who choose Autonomi Network and DLO to have full reserves behind their value add currency service offerings.

A bit of a game changer imo.

1 Like

ok

In the link below, I have further developed the DLO ‘Dynamic Liquidity Ocean’ story prefaced with an easy to understand analogy comparing the current use of Fiat and how DLO transforms existing fractional reserve created fiat currency locked in your hardware value into a full reserve digital money based on RWA Real World Assets (your NodeRunner System Hardware) .

All of this is done with an additive Noderunner operated DLO software handling what are whitelisted dynamic liquidity quotes and mobile staked cash certificates to create another revenue stream for the NodeRunner Operator and at the same time create the Liquidity Pool needed for Later 3 Web App and Smart Contract developers selling products and services (Warranty reserve proof and borrowing liquidity proof, visibility of assignment/lock to any loan issued so no over booking of the liquidity pool, as that is what cause price inflation to spiral out of control)

Using Grok, there is now an organized table of FOSS software that can be referenced and representative code snippets for each of the capabilities.

At the end of the conversation thread I added a ‘capabilities story’ to ensure the Noderunner Operator could manage as many systems running the DLO software as they want by extending DLO to support into what is a DL ‘Distributed Ledger’ Mesh that can be viewed from a single pane of glass through a web interface to see state and system wallet balances.

There is also a description and code snippet (Grok generated) on the DLO plugin for the their Smartcontract Layer Three Web app developer to review

Again everyone, you will need a free grok account to view this conversation, the tables and the code snippets within.

Maybe someone will actually read it. :wink:

https://grok.com/share/c2hhcmQtMg%3D%3D_0506ea43-2251-4b1f-ae57-c7f7eff97637

2 Likes