WHY PLUTOS NETWORK?
Plutos Network offers users synthetic issuance and trading services for a variety of synthetic products that are reliable, financially viable and disruptive to the conventional derivative market by integrating Blockchains such as Solana, Polkadot, and BSC, which enable on-chain and cross-chain liquidity and trading.
Plutos Network’s system architecture that aids in making all of this possible are: PLUT Mint (Collaterals) and Plutos Market (Exchange).
PLUT Mint — Collaterals
Plutos smart contracts allow PLUT holders to mint assets like pUSD, pETH, and pBTC by putting up collateral and using Plutos smart contracts. A Collateral Ratio of less than 500 percent will be required. The collateral ratio (C-ratio) is the proportion of a user’s locked collaterals to the value of their newly created tokens. The debts will mint and be stored in pUSD after the collateral is placed.
When the price of PLUT rises, so does the Collateral Ratio (C-Ratio). When the price of PLUT goes up, the increased value of the PLUT tokens can be utilized to generate more pUSD, which can then be swapped for more synthetic assets, or vice versa. Users that keep their collateral ratio over this optimal C-Ratio are eligible for the exchange fee and inflation rewards, which are calculated based on the staking proportion.
If the C-ratio falls below the pAsset’s minimal criteria, the protocol will launch a margin call to liquidate collateral in an attempt to recover the position’s C-ratio. By re-denominating all pAsset values into assets like ETH, BTC, USDT, and others via oracle price feedings, the protocol will be able to detect whether a holding is below the needed threshold.
Plutos Market — Exchange
Plutos Market allows users to trade a wide range of synthetic assets without the need for an underlying asset. Users can effortlessly and conveniently move their assets from one account to another to profit without having to go through any of the formalities or controls that are required in traditional financial systems.
During trading, there will be no need for a counter-party because the system will immediately transform debts into synthetic assets. When a person wants to exit or lessen their debts, they must first pay off the debts by burning the same amount of debits.
The fund pool can adopt any random and customized AMM logic, including weighted pools (for constant weight index funds), stable pools (for soft pegs) Tokens), and smart pools, thanks to the separation of token administration and accounting between AMM and the vault (for ongoing parameter changes).
Capital efficiency and yield can be enhanced by lending unused assets in AMM to the loan agreement with the launch of the Balancer Asset Manager (a trusted external smart contract that can use the base tokens stored in the vault in the fund pool).