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Liquidity Network Blockchain Payments for Everyone Liquidity Exchange Non-Custodial Off Blockchain Exchange

Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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Page 1: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

Liquidity NetworkBlockchain Payments for Everyone

Liquidity ExchangeNon-Custodial Off Blockchain Exchange

Page 2: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

Liquidity Ecosystem

01

Page 3: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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Liquidity Ecosystem - Network and ExchangeDespite their potential, existing block-chains such as Bitcoin and Ethereum can only process ten’s of transactions per sec-ond - comparable mainstream payment systems process over thousand trans-actions per second. Off-chain payment channels have been proposed to substan-tially increase the blockchain’s transac-tion processing capabilities.

Typical off-chain channels, however, face several limitations: they are economically broken due to substantial rigid deposits, expensive channel establishment, no off-chain payment channel rebalancing, com-plex routing structures, etc.

The Liquidity.Network

is a non-custodial, blockchain settlement system supporting off-chain payments (e.g. Ether/ERC20).

The Liquidity.Network is operational un-der https://wallet.liquidity.network and supports millions of users securely, re-ducing transaction costs significantly and enabling the mainstream adoption of blockchain. Liquidity is trustless, does not require rigid funds to be locked up, sup-ports off-chain rebalancing, easy routing and free channel establishement.

The Liquidity Ecosystem stems from a symbiosis between our two novel innova-tions: the Liquidity Hub and REVIVE.

The Liquidity.Exchange

is a non-custodial off-chain exchange.

The Liquidity.Exchange is designed to not hold any funds (non-custodial), while per-forming atomic swaps off-chain. As such the exchange is resistant to blockchain congestion and excessive transaction fees. Scalable to centralized exchange throughput and beyond.

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Scalable, Instant, Secure, Easy

Enabling Micro-payments and Small Value Transfer (SVT)

Negligible transaction costs.

No rigid locked funds

Allocated funds, can be used to pay any other member of the Liquidity.Network.

Privacy

Enhanced transaction privacy.

Instant Payments and Exchange

Send and exchange crypto instantly. No waiting time.

No Custodian

Payments and Ex-changes are secured by the blockchain. Funds owned by the user at any point.

Simplicity

Simple design, avoiding complex routing.

Flexible Fees

Fees paid by either the sender or the recipient.

Security

Payments are secured by the blockchain.

Generic

Built on Ethereum. Portable to any smart contract blockchain.

Transparency

Liquidity.Network actions are auditable.

Peer Reviewed Research

Papers published in the biggest academic IT Security conference (CCS 2017).

1

7 8 9 10 11

2 3 4 5 6

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Novelty

02

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First, payment channel networks such as Lightning are economically broken. They require collateral to be locked up for ev-ery channel. This locks up a substantial amount of funds that cannot be used di-rectly with other nodes in the network. Routing payments certainly alleviates this issue, but still limits the available funds to a particular set of routes.

The Liquidity.Network allows any member of a payment hub, to pay any other member of a payment hub with the allocated funds.

The Liquidity.Network operates with simple routing designs, avoiding the complexities faced by Lightning and Raiden.

The Liquidity.Network offers instant and off-chain channel establish-ment, as already operational under https://wallet.liquidity.network.

Second, routing complexity is one of the biggest hurdles of current off-chain scaling solutions such as Lightning. Due to it’s hub network structure, the Liquidity.Network requires significantly less routing, while still benefiting from a decentralized nature. Multiple Liquidity.Network hubs can be in-terconnected with efficient routes for de-centralization and redundancy purposes.

Third, the channel establishment requires an expensive on-chain transaction. Scaling existing channel networks is therefore very expensive, because all participants need to perform on-chain transactions to join the network.

Problems of existing off blockchain designsAnd their solution..

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ty 2-party Payment Channel Hubs (Lightning/Raiden):

First, collateral with each user needs to managed individually with expensive on-chain transactions. User behaviour needs to be an-ticipated, channels refilled on demand with on-chain transactions.

Second, the sum of collateral required in Lightning is equal to the total transaction volume. Given e.g. 1M users with an average transaction volume of $10’000 in one month, the amount collater-al required is $10’000’000’000 !

Lightning is “economically broken” [Associate Professor Emin Gün Sirer]

Lightning/Raiden requires substantial locked funds, Liquidity.Network solves these problems

$10’

000

$10’000

$10’

000

$10’000

N-party Payment Hub (Liquidity.Network):

First, collateral is managed in bulk. Easy handling. No rigid lock up.

Second, the sum of collateral required in Liquidity.Network is the transaction volume of a time-period, e.g. 10 minutes. Given e.g. 1M users with an average transaction volume of $10’000 in one month, the amount collateral required is significantly less than in Lightning!

“Lightning/Raiden” hub Liquidity.Network hub

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First, current decentralized exchanges per-form the swap execution on-chain (e.g. EtherDelta, Kyber, etc.). If the blockchain transaction fees will increase (which cer-tainly happens with an increasing adop-tion), these exchange will no longer be able to operate due to excessive on-chain trans-action fees.

The Liquidity.Exchange performs instant atomic off-chain swaps without holding user funds, and is resistant to excessive on-chain transaction fees.

The Liquidity.Exchange can still operate under blockchain congestion, provides a more stable and professional service level.

Because the Liquidity.Exchange performs the atomic swaps off-chain these are in-stantenous and can reach trading speeds of traditional centralized exchanges.

Second, decentralized exchanges are exposed to the risk of blockchain con-gestion. A popular application such as cryptokitties game might clog the Ethere-um blockchain again. If the blockchain is congested, the trading on current DEX will nearly stop.

Third, existing decentralized exchanges offer slow trading speeds because the us-ers need to wait for at least one block con-firmation (we recommend waiting several for security purposes). As an exchange, it would be desirable to offer near instant trade execution for more trading flexibility.

Problems of existing decentralized exchangesAnd their solution..

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Architecture

03

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ArchitectureOff-chain Hub

off-chain payment

Liquidity.Network Smart Contract

The design of the Liquidity.Network and Exchange is centered around the notion of universal hubs. As such, a user that is joining a hub, can transact his funds with any other member of the hub, instantly, off-chain and therefore at significantly lower costs than regular on-chain transactions.

The hub architecture is novel because funds are no longer locked between only two users, but accessible to thousands of other users on the same hub. At the same time, the funds are secured by the blockchain, other users can’t steal other user’s allocated funds.

Lightning technology is not appropriate to build a hub, because the hub would need to open an excessive amount of payment channels. More details can be found on our Stanford BPASE Talk.

off-chain exchange

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Architecture advantagesThe Liquidity Ecosystem is currently implemented for Ethereum and enables millions of users and payment processors to exchange crypto.

Because the Liquidity.Network is built upon the Ethe-reum blockchain, it benefits from the existing develop-ment and research community.

With its novel design, the Liquidity.Network architec-ture solves several pressing pain points of existing payment channel designs:

Consumer

ProsumerNo rigid locked funds

Simple design and routing

Free and instant channel establishment

Non-custodial off-chain atomic swaps

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Network of HubsInterconnected Hubs

Hub 1

off-chain payment

Hub 2

Multiple Liquidity.Network payment hubs can be inter-connected. Similar to traditional payment channels, two users of different payment hubs are eligible to perform off-chain payments across different intercon-nected payment hubs.

We conjecture that the Liqudity.Network is more effi-cient than traditional payment channel networks, be-cause many interconnected payment hubs can serve multi millions of users. Complex routing connections are avoided, and less channel refunding is required.

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Why the Liquidity.Network is not CentralizedHow to define (de-)centralization:

Hub 1

off-chain payment

Hub 2(1) Who owns the funds?

(2) How redundant is a system?

(3) Can a central entity censor?

Regarding Liquidity we have the following properties:

1. A user owns at any time its funds (with the private key). Not the hub operator, or any other entity can “steal“ the users funds. A hub is not a bank nor a custodian.

2. Liquidity is designed such that many hubs can be interconnected in a network of hubs to provide redun-dancy, similar to a network of Lightning peers.

3. A hub can choose to not forward payments. If that were to happen, the user can simply remove his funds from the hub’s smart contract, which the hub operator cannot prevent. The user would then join another hub.

The Liquidity.Network is designed to become a redundant and decentralized network of hubs.

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REVIVERebalancing payment channels securely off-chain, applies to the hubs.

Khalil and Gervais, https://eprint.iacr.org/2017/823.pdf

Hub 1

Hub 2

Off-chain rebalancing

With REVIVE, we present the first solution that allows an arbitrary set of users in a payment channel network to securely rebalance their channels, according to the preferences of the channel owners. Except in the case of disputes (similar to conventional payment chan-nels), our solution does not require onchain transac-tions and therefore increases the scalability of existing blockchains. In our security analysis, we show that an honest participant cannot lose any of its funds while rebalancing.

REVIVE is integral part of the Liquidity.Network and al-lows different hubs to rebalance their respective bal-ances.

REVIVE has been published in a Tier 1 Academic IT-Security conference (CCS’17).

Page 15: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

Fully Functional Product

04

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ctWorking Version OnlineImplementation Status

The Liquidity.Network is deployed since the begin-ning of March 2018 on the Ethereum testnet under https://wallet.liquidity.network.

It’s fully operational and has shown to work stable. Users can create Liquid Ether from their on-chain Ether and then transmit this off-chain to a recipi-ent. The recipient can forward the off-chain Ether or choose to withdraw the Liquid Ether, to create on-chain Ether. Fully bi-directional transfers, work-ing on Desktop as well as on mobile with Dapp browser apps.

Dedicated mobile app under https://mobile.liquidi-ty.network.

We’re excited to release the mainnet version in the coming months.

Page 17: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

Killer Applications

05

Page 18: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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nsAirdrop powered by LiquidityAirdrops are a popular community building tool

Airdropping tokens to millions of users

No transaction costs

No custodian required

Instant and fast drop enabled

No security problems through private key leakage

Receiver can instantly forward drops to friends to multiply the network effect

New engagement possibilities: possibility to send multiple drops, different amounts, no extra cost

The current market offers airdrop solutions, which we believe are not in the spirit of decentralization

and open blockchains. Airdrop powered by Liquidity.Network solves the following problems.

1. Airdrop through a custodian (not good, a wallet provider holds the user’s private keys, like a bank).

2. Airdrop by sending the private keys to the users (not good, the airdrop provider is still custodian).

3. Making millions of on-chain transactions, expensive, slow, spamming the blockchain, not scalable

Try an Airdrop through Liquidity?

Get in touch under

https://airdrops.liquidity.network

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nsUse case — Money transfer

Instant Ethereum Payment

User UserLiquidity.Network

Support for ERC-20 token transfers e.g. stable coins

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nsUse case — Purchase

Instant Ethereum Payment

Consumer MerchantLiquidity.Network

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nsUse case — IoT Sensors

Data

Instant Ethereum Payment

Consumer SensorLiquidity.Network

Page 22: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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nsOff-Chain Atomic Exchange

Instant Ethereum Payment

Instant ERC-20 Token Payment

Consumer ConsumerLiquidity.Network

Planned for Q3 2018

Page 23: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

Market

06

Page 24: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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tAddressable Market

IoT

Pay per view

Digital Goods

Gaming

Merchandise

Rental Services Blockchain

Applications

Digital Payments

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tComparison to other payment solutions

Liquidity. Network Traditional Banks Online Banks Blockchain

Scalability ++ + + - -

Speed ++ - - o -

Fund Control Decentralized Centralized Centralized Decentralized

Security Cryptographic majority voting Trust based Trust based Cryptographic

majority voting

Accessibility + + + -

Fees ++ o o - -

- - - o + + +

worse better

Page 26: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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tComparison to other off-chain solutions

Liquidity. Network Raiden Lightning COMIT

Blockchain Support Ethereum, Bitcoin (with RSK), others

Ethereum, Bitcoin (with RSK) Bitcoin

Ethereum, Bitcoin (with RSK)

Prototype

No rigid funds locked

Free off-chain Registration

Users in funds control

Easy Routing

Token Support

Ether support

Open Platform

Secured by blockchain

Mobile Application

?

?

BTC

(only unidi-rectional)

Page 27: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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tComparison to other exchanges

Marketplace NYSE Kraken DEX Liquidity.Exchange

Fast Trading

High Volume

User controlled funds

Blockchain Congestion Resilient NA NA NA

Transaction Fee Independent NA NA NA

Marketplaces have experienced many evolutions.

Starting with traditional physical marketplaces, mov-

ing towards more professional settings such as the

New York Stock Exchange.

Only recently have we experienced the appearance

of cryptocurrency exchanges which experience an

increasing amount of volume. User’s funds, howev-

er, are trusted by the exchange operator. Examples

such as Mt.Gox have shown that centralized ex-

changes cannot be trusted.

EtherDelta was one of the first decentralized ex-

changes, however suffers like all on-chain exchang-

es from very slow trading speed. On-chain exchang-

es face the risk of upcoming blockchain congestion.

Our envisioned Liquidity.Exchange allows instant

trades, without being custodian. User funds are se-

cured by the blockchain, but trades are not slowed

down, nor made expensive by the blockchain.

Page 28: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

People

07

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We currently count more than 10 excellent Liquids covering de-velopment, legal, marketing, public relations and business devel-opment.

The design of the Liquidity.Network became possible due to more than 5 years full time blockchain experience by the team members. We have academic expertise in computer science, security, mathematics, formal methods, augmented by profes-sional experience at world leading companies such as Intel and Facebook.

The team understood, that in order to continue to revolutionize how society trades and interacts with blockchain technology, scalability needs to be considered as a core business.

Team and Background

Proven

blockchain expertise — Ph.D. in blockchain security,

privacy and scalabilityhttps://www.research-collection.ethz.ch/handle/20.500.11850/129776

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eTeam

Dr. Arthur Gervais

Arthur is a Lecturer (equivalent Assistant Professor) at Imperial College London and at the Lucerne University (HSLU). He completed his PhD thesis on the topic of the security, performance, and privacy of proof of work blockchains at ETH Zu-rich in 2016. He co-authored 8+ influen-tial peer-reviewed scientific articles pub-lished at top-tier security conferences. Arthur holds two Master degrees from KTH Stockholm and Aalto University and a diplôme d’ingénieur from INSA de Lyon from 2012.

Co-creator of the one-click smart contract formal verification tool www.securify.ch

Rami Khalil

Rami started to program when he was 12. Now, he is about to finish his Mas-ter degree from ETH Zurich and received his Bachelor from the German Universi-ty in Cairo with Highest Honors. He got the first place at the ACM Arab Collegiate Programming Contest in 2013, as well as the Honorable Mention at the world finals in Yekaterinburg and in Marrakesh of the ACM International Collegiate Program-ming Contest. Rami interned three times at Facebook, as well as once at Gnosis.

LiquidChain GmbH, ZurichCHE-433.093.832Made in Switzerland

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eTeam

Thibault Meunier

Thibault is about to obtain both his Mas-ter from Imperial College London and a French Engineering diploma from ENSEE-IHT. Previously at CERN, he rebuild their main front-end hosting website, entry-point for more than 14000 websites.

Guillaume Felley

Guillaume studied at EPF Lausanne and ETH Zurich in Switzerland. He is now fin-ishing his master degree at Imperial Col-lege London doing research in the field of Blockchain. He build TLS-N, a blockchain oracle system https://www.tls-n.org.

George Sedky

George is an IT security enthusiast, with research contributions in Blockchain Scalability and IoT. He’s about to finish his Bachelor degree from the German Univer-sity in Cairo and has over 3 years expe-rience in software engineering, designed and implemented cyber defence tools.

Janine Videva

Janine is a FinTech marketing and com-munication professional since 2016, well connected as former communication as-sociate for a leading Swiss FinTech as-sociation. MSc degree in Corporate Com-munication from USI and a Masters in Digital Marketing.

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eTeam

Mohammed Kasstawi

Mohamed’s vision is to decentralize the Internet. To this end he knows how to ea-gerly explore and evaluate the latest proj-ects and their viability from a business perspective. He is the founding partner of zk Capital.

Imran Khan

Imran is a strategic thinker, trained with theory through a Bachelors in Business/Leadership @ Northwestern University, and experienced through practice as Part-ner at zk Capital and Business Develop-ment @ Microsoft.

Tony Tran

As an extrovert, Tony enjoys communica-tions, building relationships and especial-ly community discussions about crypto-currency and blockchain. Before crypto, Tony worked for General Electric for 5 years though many different roles at Oil & Gas and Renewable Energy.

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eVC Participation

We’ve been able to attract a number of VC funds to participate in Liquidity.Network.

We can openly name Danhua Capi-tal (DHVC), zk Capital, ZMT Capital and YouBi Capital.

We very much thank them for both, their thorough due diligence and their contribu-tion.

Your continued support is helping our team as well as our business development sub-stantially.

Page 34: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

Roadmap

08

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apStrategy and Product Roadmap

Alpha Version of Liquidity.Network

Excited by REVIVE,

we developed the first

alpha version for Li-

quidity.Network, and

launched a private

Liquidity.Network hub.

Non-Custodial Off-Chain Exchange

Enable the Liquidity.

Network to perform ex-

changes of ERC-20 to-

kens. Faster and more

cost efficient trading

than other decentral-

ized solutions.

Public Announcement

Launch of the official

Liquidity.Network web-

site, FAQ, whitepaper,

engage the community

and public roadmap.

Foster development

Based on the commu-

nity feedback we adopt

improvement ideas and

attract talent to join the

Liquidity.Network devel-

opment.

Early Bird Access, Testing

Deploy Liquidity.Net-

work hub MVP and give

early bird access. Build

a strong community.

Optimize the hub.

Public Liquidity.Network

Publish the official and

stable Liquidity.Network

version. Include web

and mobile wallets.

September, 2017

November, 2017

December, 2017

March, 2018

June, 2018

Q3 2018

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apOpen to other BlockchainsPrototype Implementation ready for Ethereum and can also be deployed on ETC or Rootstock.

Other possible Blockchains for the Liquidity.Network:

Bitcoin (through Rootstock)

Dfinity

NEO

and others

Page 37: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

ICO

09

Page 38: Whitepaper - Liquidity.Network - Off-Blockchain Payment Hub · 02 Novelty First, payment channel networks such as Lightning are economically broken. They require collateral to be

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OTokenWe envision a cross-chain, off-chain payment processing ecosystem whereby hubs can com-pete to attract end users and merchants. Our aim is to integrate the Liquidity token within this ecosystem such that a competitive open mar-ket for secure payment processing can thrive within the network.

The personal end users of the system will be the main source of demand for usage of the network. Therefore, to facilitate the creation of this demand, end users will not be encum-bered with having to interact using LQD tokens in regular usage scenarios.

The Token allows the holder to participate in the Liquidity Network - it is an access Token to pay for auxiliary services (e.g. channel monitor-ing).

LiquidChain GmbH plans to operate several Li-quidity.Network hubs on top of the Ethereum blockchain building the foundation for instant and cheap transmission of crypto. Anyone how-ever will be able to operate a Liquidity.Network hub once the software is open sourced.

The LQD Token’s primary purpose is to be used to access premium features in the Liquidity.Network (e.g. Service Level Agreements). That is for example to guarantee a particularly high number of transactions per second, the user would need to provide a certain amount of LQD tokens to the hub provider.

Please follow our blog for more details.

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OToken SaleThe Token symbol is LQD. There will be 100 Million LQD To-ken created, and a fixed 50% of these Token will be offered during the public sale.

We adopt a uniform price Dutch auction, which is set up to discover a fair price for a fixed amount of LQD.

The price initially starts very high and is contin-uously reduced with every Ethereum block over time.

As soon as the auction is started, participants can provide Ether to bid for LQD Tokens. The auc-tion is finished, when the price multiplied with the number of offered Tokens equals the total ETH amount sent to the auction.

The Dutch auction allows for everyone to decide the price per token they deem appropriate. All par-ticipants receive their Tokens at the same final price of the auction.

The exact auction parameters will be released 3 days prior to the token sale.

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OSale Schedule

We’ve launched the Whitelist and KYC process and already collected a substantial amount of applica-tions. In order to satisfy all demands we’re reserv-ing sufficient time prior to the auction start, in order to properly handle all KYC requests and inquiries from the community.

Participants of our pre-sale are already automati-cally whitelisted and fully KYC compliant and can participate again.

Whitelist Period Start ICO StartKYC Start

08.04.2018 16.04.2018 14.06.2018

Auction Parameters

11.06.2018

The dutch auction parameters will be released shortly before the ICO start. That is because those parameters are mostly dependent on the Ethere-um price.

Please keep in mind that at no point in time will we send you an Ethereum address to contribute to. The only place where you’ll be informed about an Ethereum address is https://ico.liquidity.network

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OHow to Participate in the Sale

Telegram Whitelisting with @bigwig_bot

Whitelist your Ethereum address by joining the Liquidity Telegram channel @liquidity-network and sending a message in private to @bigwig_bot. The bot is the central point of communication over the ICO process.

Light KYC or/and Full KYC

We perform KYC on all participants. We have green light from the Swiss Finance Reg-ulators (FINMA) to perform light KYC for contributions < 3000 CHF. For contributions beyond, full KYC is required (Video or certified ID/Passport copy).

Dutch Auction

We accept incoming funds in Ether under https://ico.liquidity.network. The bot com-municates individual authentication codes to be used to authenticate.

Token Issuance

It is planned to issue the tokens 14 days after the end of the public sale.

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OKnow Your Contributor (KYC)

Light KYC

Only Documents required, up to 3000 CHF contribution.

Full KYC

Video KYC or Certified ID/Passport copy, unbounded contribution.

We have received athorization from FINMA to perform Light KYC for participants below 3000 CHF. This heavily simplifies the KYC pro-cess and allows many more people to join our sale than previously anticipated.

Document Submissionunder https://ico.liquidity.network

Light Acceptance

Eligible to contribute upto 3000 CHF. To be unlimited,continue with Full KYC.

Light KYC

Video KYC

Full KYC

Please choose

Full Acceptance Full Acceptance

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09 IC

OAllocation of FundsThe Tokens will be used in particular for the development of the Liquidity.Network and it’s community.

Public Pre-Sale. The public pre-sale has received 15% of the Tokens.

Public Sale. The public sale will receive 50% of the Tokens. Any interested party can participate in the public sale.

Retained by LiquidChain. LiquidChain GmbH is currently building and pushes the devel-opment of the Liquidity.Network and therefore will retain 35% of the Tokens. These tokens are vested linearly over a 2-year period.

Public Pre-Sale

LiquidChain GmbH

Public Sale50%

15%

35%

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Regulatory Compliance

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yLicensed Finance IntermediaryRegulatory risks are perceived as one of the big-gest threats to crypto based projects. That’s why we go beyond the traditional best practises to en-sure the long-term success of the Liquidity.Net-work. KYC on all participants is only one part.

We are an official member of the Financial Services Standards Association (VQF), the leading, largest, officially recognized self-regulatory organisation in Switzerland directly under the FINMA (Swiss Fi-nancial Market Supervisory Authority).

To meet regulatory compliance, we’re working with one of the best law firms in Switzerland, Bratschi.

Our legal partner was recommended as one of the best in particular in the crucial field of compliance: Bilanz 2017, Top Anwaltskanzleien 2017.

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Planned Use of Funds

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Amounts expressedin US$ 1’000 US$ 10’000+ US$ 20’000+ Beyond.

Engineering Hire 8 stellar engineers, excellent work conditions.

Hire 10 stellar engineers, stellar work conditions. Strategic aquihire of top talents in the field of traditional,

digital payments, fintech and blockchain.Yearly costs US$ 1200 US$ 1500

Research Fund 2 PhD position for scaling blockchains Fund leading crypto research group. Build a worldwide leading blockchain research centre

that is collaborating with Tier 1 researchers, sponsors the best blockchain conferences.Yearly costs US$ 200 US$ 400

Marketing & Communication Push online advertising, over 20 languages.

Presence on most Social Media platforms. Attract the best marketing and communications manager

to get mainstream adoption through Social Media and Internet TV advertisement.Yearly costs US$ 400 US$ 800

Legal Services Higher renowned lawyers to push a global payment system.

Worldwide hire of the best legal experts in the field. Mainstream adoption requires regulatory acceptance and

preferably governmental support. Powerful lobbying and a consistent legal framework is priority.Yearly costs US$ 200 US$ 400

Business Development Hire two excellent manager with technical knowledge

Hire three excellent managers to cover many countries. Collaborate with a small nation state to accept Ether

payments as o cial payments. Building towards a global presence as micropayment and small-value payment

provider.Yearly costs US$ 500 US$ 1000

Education Support IT courses for school kids. Update existing MOOC courses, teach seminars O er several PhD stipends, build MOOC for blockchain

technology and the ecosystem. Educate girls and boys equally from young age.Yearly costs US$ 100 US$ 200

Annual costs US$ 2'600 US$ 4'300 US$ 10’000 - 20’000

Numbers and objectives are non-binding.

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Join us !

We’re hiring! We’re in particular looking for:

- COO

- Business Development

- Marketing and Growth specialists

Get in touch under [email protected]

Telegram Community

https://t.me/liquiditynetwork

Blog

https://medium.com/@liquidity.network

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Pushing the decentralization of payment systems forward.

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Legal Disclaimer1. The Company is invested in seeking out legal and compliance expertise to ensure that the sale of the Token are compliant with the applicable regulation insofar as there is no reliable and confirmed practice by the regulators.

2. There is no guarantee that future Token will grow in value and that the price of the Token will not decrease, including significantly, due to some unforeseen events, or events over which the developers have no control, such as unforeseen regulatory requirements which will force the Compa-ny to adjust or even stop the project or because of force majeure circumstances.

3. The Tokens will be issued on the Ethereum blockchain. Therefore, any failure or malfunctioning of the Ethereum protocol may affect the han-dling of the Tokens.

4. Blockchain technologies are subject to supervision and control by various regulatory bodies around the world. The future Token may fall under one or more requests or actions on their part, including but not limited to restrictions imposed on the use or possession of digital Tokens, which may slow or limit the functionality or repurchase of Tokens in the future.

5. The objectives stated are non-binding and may be changed at any time. All persons and parties involved in the Token and in the purchase of the Tokens do so at their own risk. Mentioned numbers are non-binding, and can be changed at any time.

6. Technical innovations of all kinds may pose a danger to the function of the Blockchain and related networks and systems.

7. Funds collected in fundraising are in no way insured. If they are lost or lose their value, there is no private or public insurance representative that the Purchaser can reach out to.

8. Received funds are neither earmarked nor refundable.

9. Tokens are a new technology. In addition to the risks mentioned in this document, there are therefore certain additional risks that the Company cannot foresee. These risks may manifest themselves in other forms of risk than those specified herein.

10. Last updated: 10th of June 2018.