What is Glitter Finance ?
Glitter is building a smart and intuitive DeFi 2.0 platform for the novice trader, and thus for mass adoption, by creating a bidirectional cross-chain bridge between Algorand and other supporting blockchains like Cudos, Polygon, Solana and Terra. The aim is to solve DeFi’s fragmentation and cross-chain bridge capital inefficiency problems by integrating yield pools in an attempt to transform the bridge into an investment platform via redeploying wrapped tokens from the bridge into the yield. This will allow traders to earn while using the cross-chain bridge ecosystem. Another feature will be the Deep Learning Neural Network, which, simply put, is a “one click” platform created by combining AI and machine learning to maximize yield farming. Lastly, to facilitate a streamlined exit of DeFi dividends for traders, Glitter will integrate crypto to fiat solutions.
Challenges in DeFi
High network fees, speed limitations - The DeFi industry is historically heavily concentrated across the Ethereum network, with historically the highest dominance in TVL (total value locked). The development on Ethereum network ballooned in recent years, causing heavy transaction congestions, making the network fees high and thus limiting microtransactions.
Fragmented User Base and Liquidity Inefficiency - With the rise of DeFi, separate Blockchain technology networks started to offer DeFi products, creating a fragmented user base and considerable liquidity dispersion across various chains.
Managing multiple farms is more costly and time consuming - The continuous search for yield farming opportunities makes it difficult to keep up for experienced users and confusing to get started for novices.
Limited use of collateralized assets - In general, collateral used to obtain decentralized loans is locked in a protocol, id est out of circulation blocking liquidity and limiting yield generation capabilities. Current solutions focusing on leveraging locked liquidity across various blockchains received limited exposure and constrained utility because of their current complicated UI and poor user experience.
Banking the Unbanked 2.0 -I n many platforms the threshold to invest remains too high, discriminating smaller retail traders and creating a barrier for mass adoption.
Where comes Glitter Finance into the picture?
Glitter Finance response for the above mentioned challenges is the creation of the cross-chain bridge, which has the potential to ease high transaction fees (by employing Polygon to foster low gas fees), bridge the user base and increase liquidity efficiency.
With the use of deep neural algorithms, Glitter makes sure to provide the best yield farming returns to users optimized across various chains. In addition, Glitter Finance will integrate wrapped token liquidity (locked collateral) created by the bridge, into a yield platform.Yield integration will foster the creation of a true meeting place for people of disparate blockchain communities and serve as an incentive for traders to venture into the ecosystem of partner blockchains within the bridge. Lastly, in order to fundamental democratization of money, a low investment threshold will be introduced, allowing smaller retail traders around the world to participate in DeFi.
Glitter Finance Platform Components
The platform of Glitter Finance will feature the following components:
Vault Contract - used by agents to provide crypto liquidity to yield farm on swap fees
Vault-Pool protocol - used to pool funds in order to allow participants below the required amount for the yield farms to generate yield reward.
Oracles - to provide data feeds.
Cross-Chain Token Swap - Glitter bridge will serve as an AMM (auto market maker) .
NFT Marketplace - will allow mainstream NFT exhibitions, Sales and cross-chain swap of NFT assets.
How will the team generate revenue?
A very important part of any project is the ability and strategy to generate revenue. Glitter Finance is very transparent with creating a multi-channel revenue strategy, which includes:
Cross-bridge swap fees - a flat 0.30% fee will be charged against every cross-bridge swap
Yield commission model - a flat 10% charge of the net yields generated (from locked assets) by the user for using the platform.
B2B - offering the service of a cross-chain bridge creation to multiple blockchain technology providers.
Integration - Glitter can become a liquidity provider and lender for various businesses that may globally need such liquidity.
NFTs - minting, marketplace sales and commissions (a standard of 1 commission for every NFT sale)
In addition to the mentioned revenue stream, the Treasury of Glitter Finance will hold 22% of the total supply of their $XGLI token. Furthermore, Glitter Finance will have control over the collateral used, which can be deployed strategically to build multiple revenue streams.
The ownership of Glitter’s native token $XGLI will grand traders the following advantages:
listing a new yield farm
updating the treasury fees for yield collected from the redeployment of user assets
updating cross-chain transfer treasury fees
update oracle addresses
choosing a new administration
spending assets from the Treasury
the user only has access to the yield and not the underlying token
OCT 2021 – FEB 2022
Whitepaper 2.0 Team Onboarding Private Token Sale $XGLI Token Launch on TESTNET Algorand ↔ Solana TESTNET Launch Initial Fiat Service Integration Whitepaper 3.0 $XGLI Token Launch on MAINNET Algorand ↔ Solana MAINNET Algorand ↔ Polygon on TESTNET Public Sale
Integration of Algorand Yield Farms Integration of Solana Yield Farms Algorand ↔ Terra on TESTNET Algorand ↔ Polygon on MAINNET Algorand ↔ Terra on MAINNET $XGLI Staking DAO Launch │ Q3 2022 Integration of Major Chains (Terra ↔ Solana, Terra ↔ Polygon, Solana ↔ Polygon) │
Q4 2022 Integration of Yield Farms Launch of Leaderboards Fiat Integration │ Q1 2023 Machine Learning Models Deployment Launch of Single Click Yielding Recommender System │ Q2 2023 Launch of Mobile Application (Android / iOS)
Launch of the Cross Chain Swap Launch of Cross Chain NFT Marketplace │ Q4 2023 Optimization of ML Models even further
Inês dos Santos Veiga
DIRECTOR OF OPERATIONS
Glitter Finance is a Tallinn based blockchain research and development startup founded in 2021 by a team of experienced professionals in the DeFi space. The company already amassed €2.9 million in funding and many new strategic partnerships. The aim of the project is to increase capital efficiency between cross-chain bridges by integrating a yield into the cross-chain bridge design and redeploying wrapped tokens from them into the yield. Interoperability is the key component for an effective DeFi ecosystem in this fast evolving space. Every time a new blockchain project enters the market, it brings its own unique ecosystem and offerings, however, there is this barrier of interoperability slowing down advancements and adoption in the DeFi sector. While creating a bridge can overcome this barrier, individuals do not necessarily want to use it without incentives and this is where Glitter Finance comes in.
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