2.4 Features & Benefits

2.4.1 Tiered Gas Pricing

Overview

Tiered gas pricing introduces a flexible mechanism where transaction fees are dynamically adjusted based on the valuation of the transaction. This approach ensures fairness and affordability while incentivizing efficient network usage.

Key Features

Transaction Valuation-Based Tiers: Gas fees are categorized into tiers based on the value of the transaction, with lower-value transactions incurring reduced fees.
Equity Across Users: Enables smaller users to transact without prohibitive costs, promoting inclusivity.
Dynamic Adjustment: Gas pricing adjusts in real-time based on network conditions, ensuring optimal utilization of resources.

Benefits

Reduced financial burden on smaller transactions.
Enhanced network participation and accessibility.
Incentivizes efficient transaction structuring.

2.4.2 DAO Governance

Overview

DAO (Decentralized Autonomous Organization) governance enables the community to have voting rights over protocol changes, ensuring a decentralized and democratic decision-making process.

Key Features

Voting Rights: Token holders gain proportional voting power based on their stake.
Proposal Mechanism: Any member can propose changes, subject to community voting.
Transparency: All decisions and voting outcomes are recorded on-chain.

Benefits

Fosters community-driven development and ownership.
Enhances transparency and accountability in protocol updates.
Ensures the protocol evolves in line with user priorities.

2.4.3 Gas Sponsorship

Overview

Gas sponsorship, inspired by Solana, allows certain transactions to be subsidized or free for users, improving the user experience and adoption. The fee payer pays for all the user transactions.

Key Features

Subsidized Transactions: Protocol or third-party sponsors cover gas fees for specific actions.
User-Friendly Experience: Eliminates the need for users to hold native tokens solely for transaction fees.
Selective Sponsorship: Targets specific use cases or user groups to drive adoption.

Benefits

Reduces barriers for new users entering the ecosystem.
Promotes specific transactions like onboarding and DeFi interactions.
Increases overall network activity.

2.4.4 Tokenomics: Staking and Rewards

Overview

Tokenomics within the Liquidity Chain incentivizes participation through staking and rewards, promoting network security and user engagement.

Key Features

Staking Rewards: Users earn rewards by staking LQDTY tokens, promoting network security and stability.
Validator Rewards: Validators are rewarded for maintaining the blockchain’s integrity through block validation.
Dynamic Reward System: Rewards adjust based on network activity, staking amount, and validator performance.
Reward Allocation: A portion of transaction fees is distributed to stakers and validators.
Delegated Staking: Users can delegate tokens to validators, participating in staking without managing a node.

Benefits

Enhanced Security: Staking strengthens network security by incentivizing decentralized validation.
Passive Income: Stakers earn rewards, offering a passive income opportunity.
Token Value Appreciation: Staking reduces circulating supply, potentially increasing token value.
Decentralization: Delegated staking ensures broad participation, enhancing the blockchain’s decentralization.

Use Cases

Network Security: Staking ensures continuous operation and security of the blockchain.
Community Engagement: Encourages active participation and governance from token holders.
Long-Term Stability: Supports the ecosystem’s growth and stability by incentivizing token retention.

2.4.5 Pluggable Feature Contracts

1. Options Trading

Overview

This module enables decentralized options trading, allowing users to hedge risks or speculate on asset prices.

Key Features

Customizable Options: Support for various options types (calls, puts) and expiration periods.
Decentralized Settlement: Trustless execution of contracts.
High Liquidity: Integration with liquidity pools for efficient trading.

Benefits

Enhanced Security: Staking strengthens network security by incentivizing decentralized validation.
Passive Income: Stakers earn rewards, offering a passive income opportunity.
Token Value Appreciation: Staking reduces circulating supply, potentially increasing token value.
Decentralization: Delegated staking ensures broad participation, enhancing the blockchain’s decentralization.

Use Cases

Risk management for volatile assets.
Strategic investment opportunities.

2. Traditional Future Trading

Overview

The traditional futures module provides the infrastructure for trading standardized futures contracts.

Key Features

Leverage Support: Enables margin-based trading.
Standardized Contracts: Ensures uniformity across trades.
Robust Risk Management: Automated mechanisms to handle margin calls and liquidations.

Use Cases

Portfolio diversification.
Hedging against market movements.

3. Perpetual Futures

Overview

The perpetual futures module facilitates trading futures contracts without expiration dates.

Key Features

Funding Rates: Periodic payments between long and short positions maintain price stability.
Continuous Market Access: Traders can hold positions indefinitely.
High Liquidity: Supports large trade volumes with minimal slippage.

Use Cases

Long-term investment strategies.
Speculation on asset prices without time constraints.

4. Perpetual Futures

Overview

Web3Fabric utilizes zero-knowledge proofs (ZKP) to validate user data securely and perform compliance checks.

Key Features

ZKP-Based Verification: Ensures data authenticity without exposing sensitive information.
KYB with Merkle Root Comparison: Validates business data integrity using Merkle tree structures.

Use Cases

Streamlined regulatory compliance for financial institutions.
Enhances privacy and security in user verification processes.

5. Automated Market Maker (AMM)

Overview

The Automated Market Maker module enables decentralized and continuous trading of assets through liquidity pools, removing the need for traditional order books.

Key Features

Liquidity Pools: Users can provide liquidity to pools and earn fees proportional to their contribution.
Constant Product Formula: Ensures trades maintain balance in the pool, e.g., x * y = k.
Seamless Token Swaps: Facilitates instant and trustless token exchanges.

Use Cases

Supports decentralized exchanges (DEXs) for token trading.
Provides liquidity for new or less liquid tokens.
Enables yield generation for liquidity providers.

6. Decentralized Identity & Credential Management

Overview

This feature leverages Decentralized Identifiers (DIDs) and W3C Verifiable Credentials to enable secure, privacy-preserving identity and credential management.

Decentralized Identifiers (DIDs)

Self-Sovereign Identity: Users control their digital identities without reliance on centralized authorities.
Interoperability: Built on W3C standards for cross-platform integration.
Privacy-First Design: Enables selective disclosure of user information.

Benefits

Strengthens user privacy and security.
Simplifies decentralized identity verification.
Reduces reliance on centralized identity systems.

7. W3C Verifiable Credentials

Key Features

Trusted Issuance: Credentials (e.g., certificates, proofs) are issued securely and cryptographically signed.
Selective Disclosure: Users share only necessary credentials, ensuring privacy.
Integration with DIDs: Seamlessly links credentials to decentralized identities.

Benefits

Facilitates trustless, automated verification.
Enhances compliance with privacy and regulatory requirements.
Reduces identity fraud risks.

Use Cases

Decentralized KYC for financial services.
Credential issuance for education and employment.
Access management in decentralized applications.
Regulatory compliance for identity verification.