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Decentralization

(de)Centralized systems

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. This is one of the benefits of decentralization.
Additionally, reducing a workforce (read: bankers) to a code-based system, severely lowers costs for users of this system. All in all decentralization brings:
  • Less corruption
  • Better decision making
  • Lower operating costs

Creditless

For this reason DeltaPrime works completely decentralized 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 decentralized forms.
Additionally, unlike centralized brokerages, we do not hold your tokens. Although the Prime Account has an interface as easy-to-use as any centralized 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.

Suspension of withdrawals

In recent times, multiple trust-based, 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 default of a Prime Account, the DSC will automatically repay the loan. Because the 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 24-hour timelock, giving our users time to adapt to the updates where necessary.

DAO

DeltaPrime is on the road to becoming a fully Decentralized Autonomous Organisation (DAO). This means that all decisions currently made by the development team, will in the future be made by you, the community. DeltaPrime will start with protection mechanisms like multisig & timelock, and many audits protecting users from any centralization risks. After the creation of our governance token, centralization risks will be eliminated by introducing a sustainable, decentralized governance body.
As DeltaPrime grows into a DAO, this page will be further updated.