Abachi is a longer term bet on the convergence of DeFi and the traditional world. We are certain these two worlds can meet in a way where jurisdictional, compliance and regulatory frameworks can be drafted to make the transmission of money and transactions much more efficient. Abachi is also a bet on some of the tech that will allow us to do this, which includes: Olympus Dao, Polygon, Gnosis & Luca PLUS (amongst others).
Here we talk about the various facets of Abachi. This is a watered down guide, read our docs for more information.
Mission:
Build the rails to bridge DeFi and TradFi
End Goal:
Disrupt the 8.1T credit and treasuries (bonds) markets. The 6.6T forex market, and the 29T cost of trust.
Building Blocks:
1. Build a wallet that can be integrated by third-party app developers inside their apps via an SDK. This is built using tech already available (gnosis, composable finance, metamask). The wallet shows inside the app, client-side prompts and notifications built in. Further, we will add on-ramp / off-ramp capabilities via exchange APIs as plugins. We also plan to add open banking APIs via plugins (etc.) ← This itself is a pretty big project.
2. Build KYC as a service. Offer current services as plugins (fireblocks, blockpass etc.) and allow identity on a per wallet basis . ← Imagine you never have to KYC your wallet again.
3. Launch and partner with permissioned pools. This one is easy, it’s a basic three pool lending strategy with an allow list. Aave Arc, Centrifuge both do this. KYC and Wallet in the same SDK allows you to do this easily.
4. On-board partners, starting with small businesses in easier use cases that do not require as much lending regulations (e.g. Buy Now Pay Later for business, 5% @ 6 weeks).
5. As the system grows, launch credit bonds (essentially tokenised credit pools). Junk Pool. Good Pool. Mid Pool. Launch a dashboard for issuance, redemption. Integrate with other permissioned pools that also offer asset backed lending (e.g. centrifuge, TrueFi)
6. Launch permissioned bond markets (these will emerge organically anyways). Abachi can buy a 30yr bond at market, then if ever needed, sell it back after holding it for a year, or swap it for a 10yr bond.
7. Use the Olympus DAO system (the Abachi fork) to now buy back these bonds and tokenised credits using a permissioned front-end.
8. Extend the system to start buying sovereign bonds. (yes we know how crazy that sounds right now).
Olympus DAO:
We strongly believe in the technology and value behind OHM as the unit of exchange in the DeFi world.
Abachi treasury tries to maximize the OHM it holds with this in mind. This is for both treasury value increase and also for governance. As one of the key pieces of tech we plan to use forward, we want to have a higher stake in its ecosystem. This is no different to any other treasury holding bitcoin or ether. We of course enjoy the rebase rewards by holding it in our treasury as a side effect.
We are committed to partnering with Olympus DAO and are currently exploring ways to do this in a risk reduced way.
This is what Olympus was made for, both in the DeFi and real world. Few understand how powerful this tech is, and if extended, it can redefine credit and treasury markets. The biggest market that exists.
Polygon:
For a real-world user the closest they can get to Ethereum is using polygon. Fees are low and they have the strongest commitment to zk. We also plan to use the nightfall project for transaction transmissions (invoice and business document delivery).
While the SDK will eventually be multi-chain, every core service will be launched first on Polygon including the staking.
ABI:
To power the entire Abachi ecosystem, we needed a unit that could be burnt, used, staked and used as incentives. Since we are using Olympus DAO as a long term technology stack, it makes sense to use it on day 1 for token emission also. ABI will power every use case above. e.g. cross chain swaps, transaction fees, pool accreditation, accreditation provider nodes, lending incentives etc.
ABI also provides the needed backing for the project to be funded. A high inflation in the start ensures only committed backers enter the system and the treasury is essentially run in auto mode with decentralised governance down the road.
Abachi is treasury is backed by OHM and Stables. Two assets which are integral to our longer term success.
How:
- Abachi is currently in the process of forming a foundation that will govern over the entire staking system. This entity facilitates the governance and ensures we can decentralise it. It will move from a BVI to a Cayman islands foundation.
- Abachi has already formed a foundation in Singapore that will be the real-world arm of licensing the technology and building it. This will be funded by Abachi Governance and may also raise more capital as a separate entity.
- Abachi will partner with real-world companies that can integrate these technologies on day 1 and test with their customers (lucaplus).
- Abachi plans to partner with Olympus DAO for the longer term to work on Policy, Bonding and the technology that powers it all. No current partnership, but we would like to get there via dialogue.
- Abachi plans to fund & partner any other ecosystem projects that help its mission. e.g. Targeted hackathon with composable finance for two projects, funding for a decentralised yield aggregator (coconuts.finance) & dedicated price feeds & kyc on-chain via chainlink integrations.
- A different way to decentralise governance. Token alone is not enough, we will also be issuing NFTs that give you governance powers. This allows a more democratic way of governance and gives voice to contributors who may not have enough governance tokens.
- Your help.
We hope this gives you an insight into what we are trying to do. Want to be a part of the team? Join our discord: https://discord.gg/abachi and follow us on twitter: https://twitter.com/Abachi_io
