Power corrupts. The more power one or a few people in a system possess, the more prone this system is to corruption and short-term decisions. At the same time, the wisdom of the crowd theory teaches us that decisions made by a large group of non-experts tend to have better results than decisions made by one or few experts. Removing the large number of employees in centralised systems and replacing them by a code-based system additionally severely lowers costs for users of this system. All in all Decentralisation brings:
- Less corruption
- Better decision making
- Lower operating costs
For this reason DeltaPrime works completely decentralised and code-based. Everyone with a MetaMask account and funds for gas can create a Prime Account or deposit funds. There is no single person in DeltaPrime who can refuse this access to liquidity. DeltaPrime does not check whether you are "credit-worthy", nor do we have any humans assessing this. Instead, our safety measures come in other, fully decentralised forms.
Additionally, unlike centralised brokerages, we do not hold your tokens. Although a Prime Account has an interface as easy-to-use as any centralised project, the tokens are instead held in a Dedicated Smart Contract, which you are the sole owner of. Every single action performed, is stored on the blockchain, which you can track through your history.
During Q2 & Q3 2022, multiple undercollateralized lending protocols have gone insolvent. Through fund misappropriation, bad decision-making and adverse market conditions, tens of thousands of loans defaulted. This led to depositors everywhere losing access to their funds. DeltaPrime prevents this from happening by keeping the borrowing trustless. A dedicated smart contract (DSC) prevents fund misappropriation through a walled garden; should bad decisions lead to the risk of default, the DSC will automatically repay the loan. Because our code is open source, you can see the exact rules every DSC is following. In doing so we ensure loan repayment for depositors, preventing the need for withdrawal suspensions other undercollateralized protocols have had.
Apart from a lack of need, any (re)deployment of code to the network has a 72-hour timelock, giving our users a great amount of time to adapt to the updates where necessary.
DeltaPrime is on the road to becoming a fully Decentralised Autonomous Organisation (DAO). This means that all decisions currently made by the development team, will soon be made by you, the community. For this you will be rewarded in the form of $PRIME tokens, to be launched in 2023.
As DeltaPrime grows into a DAO, this page will be further updated.