SVET Contracts Board

Content

Introduction To DeFi Markets

Rapidly deteriorating world's economy puts Gen-Z and Millenials out of job. This period of the high unemployment among younger workforce might be extended for 2-3 years.

The difficult situation on the job market is exacerbated by World's governments pursuing the 'home-sheltering' policy which is obeyed by international corps and large educational institutions promptly shifting their employees and students to the remote schedule.

It is expected to result in the significant inflow of unexperienced traders to decentralized exchanges. In fact, on one of the most popular on-line trading platforms - Robinhood - more that 13 million accounts have been already opened.

With an average account size ranging between 1000 and 5000 USD ($3000 av.) the total sum, which has been already invested by fledgling generation of assets holders using this application to the stock market, is estimated to be 39 billion USD.

As the popularity of crypto-currencies among younger investors continues to increase, it might, then, be reasonably assumed (from this application's statistics alone) that for about 5 percent ($1.65 billion) will be allocated to this high-risk assets category by millions of new day-traders discovering for themselves the DeFi markets.

Considering that Robinhood is aimed primarily at the Western auditory, which constitutes about 40 percent of all people involved into trading crypto-assets, the total number of on-line traders, which might be dealing with crypto-currencies world-wide might be about 32 million (with the total AUM of around $2.7 billion).

However, that constitutes only a fraction of private capitals potentially available for allocation into this new assets category.

As 'traditional' investors navigate the current periods of high market volatility, they are increasingly looking to uncorrelated assets like digital currencies to diversify their portfolios. This, combined with demographic changes that will see more than $68 trillion of wealth transferred from older to younger generations over the next 25 years in the U.S. alone, means that shifting preferences (including an interest in digital currencies) might bring to digital money market an additional $3.4 trillion (5%) of the new capital.

DeFi currently constitutes less than 1% the of total crypto-currencies daily trading activity or about $5 billion. This proportion is expected to grow in the future but even if it does not an influx of three-and-a-halve trillion dollars to the 'main' crypto-market means that DeFi has a potential to expand seven-fold (to $34 billion) from the current levels.

That flow of new investments into the unregulated, decentralized finance markets might be increased at least two-fold by the current tense geopolitical situation which continues to evolve into the direction of major world's regions further self-isolation from each other.

One of the most obvious ramifications of this new policy of political isolation and economic 'self-reliance' is that the Internet's largest corporations will be more rigidly regulated on national and international levels and, in some cases, even banned from entering local markets.

It will lead to financial apps smaller providers being legally confined within narrow borders of their native countries and inevitably push an increasing number of younger users (specially in the non-Western world) into the cross-border crypto and DeFi spaces.

Moreover, we can expect as the increased profitability of speculations with 'regular' assets will attract more unexperienced users into the traditional markets it will create the new speculative rush forcing national regulators to step in and to impose severe restricts on younger users access to main stream trading platforms (specially in countries with weaker democratic traditions).

That will further increase the inflow of new users into DeFi where the imposition of a direct government control is possible only if each individual Internet access point will be closely monitored by law enforcers and then traced back to a particular user. Obviously, only users living under the most severe political regimes are at risk of such disproportionate and costly measures severely limiting their individual freedoms. For the great majority of world's countries such level of control over users' access is technically impossible and / or politically unfeasible.

On top of those trends on the financial market there is another one on the product development side. An increased profitability of traditional assets markets as well as crypto-currencies / DeFi attracts the new wave of PE / VC investments into the improving DeFi infrastructure and next generation of DeFi products with greatly improved user interfaces, which brings even more new young traders into DeFi.

Risks

However, while contemplating investments into this new assets class, it also important to carefully consider risks associated with this highly volatile and poorly regulated industry.

One of the possible medium-terms developments on the regulatory front is that sharply growing profits in DeFi will create a new wave of greed culminating in a series of DeFi markets bum and busts accentuated by govs attempt to provide more liquidity to the 'traditional' markets in an attempt to prevent sharp stock depreciation and the consequent lending / mortgage markets (for which those stocks serve as collaterals) contraction.

Faced by what regulators usually view as a 'speculative bubble threatening the livelihood of average, uneducated investors' governments might step in and attempt to install the harsh regulatory regime which might result in the complete bun on some types of crypto-assets (specially on those which assure users anonymity as well as on stable-coins).

Although those types of bans are technologically unfeasible and can be easily circumvented by even technically non-savvy users, it might lead to an unprecedented level of volatility on the digital assets markets during the next 2-5 years or even longer until the new generation of political leaders will legitimize crypto-currencies.

Another group of risks are technological ones. The most important being the vulnerability of unaudited smart contracts and an high regularity of hackers attack organized by the most sophisticated world's malicious groups, some of which are connected to states powers (such, f.e. as Lazarus), on centralized crypto-exchanges and on most popular crypto-currencies protocols (f.e. Ethereum Classic). As a result of those attacks users funds might be forfeit or permanently blocked.

Although, by following a simplest security protocols, those risks can be greatly reduced, the level of technical expertize required for that might exceed that in a possession of an 'average' user, stipulating the necessity of some preliminary education / training.

Additionally, there is a risk that the global economic downfall will be more severe and prolonged than reasonably expected being exacerbated by the sharp contraction in liquidity (this scenario looks less likely after the most recent declarations of the FED's head promising 'to exceed 2% barrier'). However, if political circumstances will force major political players to take USD inflation into more close consideration than promised the risk of monetary mass contraction and subsequent fall of all assets markets might result in an unprecedented avalanche of all digital assets prices.

SVET Contracts Board Description

The SVET Contracts Board (SVET-CB) has been designed primarily for use of contractual parties desiring to assign a portion of their assets to a series of ERC20 smart contracts emphasizing a promising capital allocation strategy through a correlation to equity deals made by the most successful Silicon Valley VC funds.

SVET-CB positions itself as a provider of analytical, algorithmic solutions for individuals with high risk tolerance and an interest to non-traditional digital assets markets (specifically, DeFi).

SVET-CB developers' more than 5 years experience with decentralized blockchian platforms allows them to combine traditional fundamental analytical approaches such as projects' due-diligence and audits with on-chain analysis and smart contracts technologies.

SVET-CB allows individuals to, essentially, follow the strategy of the leading Silicon Valley private funds by aggregating individual contributions of SVET community on audited, secured and algorithmically managed smart contracts accounts. It provides contractual parties with an opportunity of early entry into otherwise unaccessible deals and, at the same time, gives crypto-funds a broader reach into the crypto-enthusiasts community.

SVET-CB employs the wide variety of smart contracts to meet users personal preferences and capital availability. Additionally, Svetrating.com platform allows to establish and to maintain the direct line of communication to SVET community through periodic ratings updates and projects' reviews.

Moreover, SVET-CB allows to reach into promising DeFi companies on their preliminary listing stages when deals' entry ceiling exceeds risks levels acceptable for individual users.

SVET-CB employs SVET token as an universal MoE and UoA to compensate analytics, to automatically exchange on coins / tokens of new companies and as the main currency of smart contracts, preventing the influence of crypto-currencies market volatility on contractual parties.

SVET Contracts Board Advantage

A number of available option on DeFi and Coin / Tokens Assets Allocation Markets are growing rapidly. It creates a large disparity of information between non-experienced users and professionals. That gap is used by rough an / or malicious actors to harm honest participants interests.

SVET Board is aimed to meet that challenge by featuring The Array of SVET Rating Based Audited Smart Contracts, which allows HNWI to execute several basic assets allocation functions without taking on themselves risks of acting on non-reliable data and misinformation.

There are three basic functions groups, which are included into this Array:

  • Forming Risks Avoidance Portfolios;
  • Entering / Exiting Venture Deals;
  • Acquisition and Transferring of Digital Assets;

Please, find the description of proposed SVET Contracts below:

SVET Contracts Board List

  1. An Array of fixed (not amendable) DeFi Portfolio Contracts;
    1. Following leading Silicon Valley VC's DeFi portfolios;
    2. Hodling (Long-Term Fundamentals) DeFi portfolio:
      1. SVET Supply-Weighted Index
    3. Short-Term (Fast Growth) DeFi Portfolio;
    4. Defensive (non-correlated) DeFi Portfolio;
    5. Blue-Ships (popular names) DeFi Portfolio;
    6. An Industry (industry specific) DeFi Portfolio;
  2. An Array of fixed (not amendable) Coins / Tokens Portfolio Contracts;
    1. A Contract for Buying BTC / ETH (Long / Short);
    2. Following leading Silicon Valley VC's Coins / Tokens portfolios;
    3. Hodling (Good Long -term Fundamentals) Coins / Tokens portfolio;
    4. Short-Term (Fast Growth) Coins / Tokens Portfolio;
    5. Defensive (non-correlate) Coins / Tokens Portfolio;
    6. Blue-Ships (recognized names) Coins / Tokens Portfolio;
    7. An Industry (industry specific) Coins / Tokens Portfolio;
  3. An Array of Income Earning Contracts
    1. A Contract for entering into a Mining Pool;
    2. A Loan Contract;
    3. A Staking Contract;
  4. An Array Of Digital Angels Contracts
    1. A Contract for ERC20 tokens Inter-Exchange;
    2. An ERC20 Contract for minting a Token;
    3. TGE Contract;
    4. A Secure Agreement For Future Tokens (SAFT)Contract (essentially, buying a token for fixed price in the future);
    5. Custodial Contract (freezing assets until the realize date);
    6. A Milestone Contract (realizing assets upon completing a project stage);
    7. A Pooling Contract (meeting minimum capital requirements);
    8. A Foreign Contract (buying overseas assets);
  5. An Array Of Special Contracts
    1. A Contract for Buying none-tented (directly from miners) BTC / ETH;
    2. A Transfer Contract (going from fiat to coin and back);
    3. A Stable (stable-coins) Contract;

If you have further questions, want to contribute to the development of the SvetRating platform or need an investor access to the platform, please, send us an email to welcome@svetrating.com or join our Groups in Telegram , LinkedIn, Facebook and Twitter.

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