Introduction

Hyperdex Defi
12 min readJul 15, 2021

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Our Mission is to create a first decentralized finance investment platform for digital assets mirroring the standard financial products. Over the past few years the digital assets industry has developed constantly to find bridge solutions from the current obsolete financial system into the current fast and relentless digital one. For the first time, any platform’s user will get the possibility to invest its digital assets directly into this new decentralized concept offering modern income generating tools.

Function

Anyone owning digital assets in form of cryptocurrency or stable coins, thorough the use of Metamask or any similar wallet interface, will be able to connect to our platform and invest in our products. We offer three types of investments: fix income, algorithm trading, race trading.

For each of the above section we have developed virtual containers to identify the selected strategy and time expiration. We call them “cubes”. The cubes, similar to a liquidity pool on a Defi Exchange, will be containing the user’s investment strategy and generate income according to the type selected.

Some of these cubes have the possibility to become “Hypercubes” as we call them, as they allow simultaneusly the investment of the underlying cube’s asset and the platform’s token (Hyper Token). See specs in the CUBES section.

Hyper Token

A token running on the Binance chain, Hyper Token ( HYP), will be issued. An initial liquidity token pool will be created with standard features, and the token value will be set at 0.1 usdt. The token will act as a normal Binance chain token and will be oscillating in price according to the users swaps like for any other token. The users can acquire tokens only via swaps or with our new minting criteria (see minting section).

4th Dimension Profits

The user by investing in any of the Cubes has the choice to earn simultaneously “parallel“ profits by transforming the Cube into HyperCube. In fact at expiration date the Cube will only be paying a basic percentage reward on the underlying asset, while the HyperCube will be paying a double reward and increasing the basic percentage reward as well. Therefore the HyperCube profits will be generating a reward in the invested currencies (for ex. usdt or bnb) and in Hyper Token with its own percentage value/amount indicated at the time of the investment. Therefore if the Cube’s reward was 100 usdt, the HyperCube will add an additional profit in Hyper Token. See examples in the next sections.

Practically, an additional profit (in Hyper Token) is given to the user if he invests a small amount of Hyper Tokens together with the main Cube’s stable coin investment. The result is a parallel exponential profit by having a double effect , a gain in the Hyp token amount as well as the potential gain of the Hyper token price appreciation. In fact, a Hyper token steady price appreciation is the most probable outcome, as any peers who wants to transform a Cube into an HyperCube will have to swap stable coins or main crypto in the platform’s liquidity pools. The system, by minting on demand (see examples in the minting section), is built to find a stable equilibrium between the circulating supply and the real liquidity pool market cap.

It’s important to understand that by having this double reward (the underlying asset profit, such as usdt, and the freshly minted HyperCubes’ tokens) the user has received the possibility to add both values into the liquidity pools and farms, creating a great equilibrium effect in the overall environment. In fact, by using this system, the overall production of new Hyper Tokens is well balanced by stable coins or crypto produced by the platform as profit or as swaps into the liquidity pools. The final effect will be that even in one year, we will not have a circulating supply that exceeds by a great number (20, 30, 40, 100 times) the amount of liquidity placed in the pools, giving the opportunity to every user to swap at certain price levels without big fluctuations (like it happens in many defi swap projects). The final goal is to obtain a total platform market cap that is close to the real liquidity placed in the pools and not just a multiplication of price times circulating supply.

Pre-sale

In the presale phase up to 200 million Hyper tokens will be minted, and it will last about 4 weeks once the Launch page is active. The pre-sale phase will be ongoing until the total collected amount reaches up to 10 milion USDT or once the 4 weeks are over. The minimum investment in the pre-sale phase will be 1.000 USDT to a max of 100.000 USDT for retail clients (up to 500.000 USDT for institutional clients).

The client/investor receives ten tokens for every USDT (or stable coin) invested (the price is set at 0.1 USDT for the pre-sale phase). For example, if the Client invests 100.000 USDT, an amount of 1.000.000 HYP (hyper token) will be minted and delivered to the client with a pre-declared vesting period of 12 months.

Simultaneously, for every new client’s minted token, the platform will mint an additional one.

Therefore if we consider the above example of a 100.000 USDT investment, an additional 1.000.000 HYP will be minted for the following purposes:

  1. 500.000 Hyp to be placed in an LP liquidity pool together with 50.000 usdt of the client initial investment
  2. 250.000 Hyp will be hold in a wallet as reserve liquidity to list the token in other blockchains or decentralized exchanges.
  3. 100.000 Hyp will be kept by the developers
  4. 100.000 Hyp will be used for marketing fee ( Social media, Influencers , web ad, SEO etc)
  5. 50.000 HYP will be used for contingency fee (certifications, legal expenses general set ups)

In the end, for every 100.000 USDT investment, there will be an instant minting process of 2.000.000 tokens, basically for every usdt or stablecoin flowing into thesystem during the pre-sale phase the platform will mint 20 tokens.
Once the platform launches, the regular “minting on demand“ processes will
happen as described in this white paper, and clients can get HYP either by swapping usdt/stablecoin/crypto or by participating in the hypercubes investments.

Tokenomics

Once the pre-sale phase is completed, the official dex tokenomics will be activated with the following criteria:

  1. In the pre-sale phase up to 200 Mil Hyper token will be minted: 100 Mil for the users/clients, 50 Mil for LP pools, 25 Mil for marketing/advisory fees, 10 Mil as reserves liquidity for other blockchains listings, 10 Mil for developers and 5 Mil for contingency fee (Certifications,
    legals fee general setups etc).
  2. In the regular phase minting will occur on demand, only in the amount matching the profit value of the HyperCube at expiration/renewal.
  3. The platform’s fee as well as any other fee, will be minted on demand or deducted by the users investments/profits.

Minting

After the Pre-sale phase, the token’s minting will happen every time a user’s profit generated from any HyperCube’s investment is due (see CUBE section). In fact, in order to mint a calibrated amount of token, to prevent inflation or deflation issues, any HyperCube’s profit will be minting only the Hyper Tokens expected from the percentage reward.

For example: at expiration the fixed income basic Cube generates a profit of 100 usdt for the user. The HyperCube generates a higher return on the 100 Usdt (for example 110 Usdt) plus 100 Usdt in Hyper Tokens. If the HyperToken is at that moment worth 1 usdt, therefore an additional profit of 100 Hyper Tokens will be minted for the user. In the example above, if at expiration the HyperToken was worth 2 usdt, the total minting amount would have been 50 tokens, and so on. (tokens minted = profit in usdt / HyperToken usdt value)

The Hyper dex platform’s commissions for any new usdt or other coin investments will not mint new tokens, but it will deduct directly tokens from the investment, see examples below:

  1. The user invests into a fixed income usdt HyperCube 1000 usdt plus 100 Hyper Tokens. The commission will be 3 usdt (1000 usdt * 0.3%) and 0.3 Hyper tokens (100 Hyper Tokens * 0.3%).
  2. The user invests 1 eth plus 1000 Hyper Tokens into a fixed income HyperCube. The commission will be 0.003 Eth (1 Eth * 0.3%) and 3 Hyper Tokens (1000 Hyper Tokens * 0.3%).

Fix Income Cubes / HyperCubes

In this section, the user will be able to select from several Cubes choices a fixed income investment offering returns on either stable coins or cryptocurrency. Every Cube has its own expiration date and the detail about the final return on investment as well as its pay-back rules. An early redemption is possible with a flat 20% fee of the initial investment. The funds will be managed partly across fix income generating staking programs, and partly traded with proprietary arbitrage algorithms. The users investments will be initially collected into our smartcontract, visible on the BSC blockchain, for further distribution into our staking and trading accounts. At expiration our smart contract will call back the funds necessary to fulfill the payment obligation.

To transform a Cube into an HyperCube the following steps are necessary:
1. The peer has to obtain Hyper Tokens from swaps, or the pre-sale, or other HyperCubes profits.
2. The peer has to invest into the Cube an equivalent value of Hyper Tokens in a range that varies from 10 to 100% of the main stable coin or crypto Cube’s investment.
3. Once obtained the HyperCube status the fix income return values of the prevoius basic Cube will increase. In fact the HyperCube fix income return will add a bonus percentage on the main investment as well as giving a Hyper Token return on the secondary investment. See examples below.

A Hyper Token cube, initially with a 20% per annum fix income return, will be created as well. The users can simply deposit in the cube any hyper token purchased through swaps on our liquidity pool or through the platform’s rewards. (like it’s usually the case for regular farming pool)

For example:

  1. Cube 1 (6% return)
    Asset: Usdt
    Expiration: December 2021 ( 3 months)
    Entry fee: 0.3%
    Fix return (annualized): 6%
    Lock up Period : until 22 December
    If transformed in HyperCube: 7% + 20% double return
    Asset: Usdt + HyperToken (10–100% of the usdt amount)
    Fix return (annualized): 7% usdt + 20% of the usdt value in Hyper Tokens
  2. Cube 2 (4% return)
    Asset: ETH
    Expiration: December 2021
    Entry fee: 0.3%
    Fix return (annualized): 4%
    Lock up Period : 22 December
    If transformed in HyperCube: 5% + 20% double return
    Asset: ETH + HyperToken (10–100% of the ETH amount)
    Fix return (annualized): 5% ETH + 20% of the ETH value in Hyper Tokens

Algo Trading

The nature of this cube is a trading one, based on a pure statistical arbitrage algorithm. This proprietary system will identify market discrepancies among the main cryptocurrencies. This approach is not a pure arbitrage one, it’s way more sophisticated, as it is looking into a multi dimensional way into the market. A complex chain analysis of the cryptocurrency will be created at all times, finding at the end of each calculation the most probable path for the selected coins. We are trading this paths and achieving very high returns compared to the risk. The system is a sort of big eye into the market, constantly updating and regenerating its own strategies in order to find the best possible path into stable revenues.

This cube has a dynamic income pay out, the potential return is higher compared to the fix income cubes. Expectancy is for returns above 15% per annum, with higher lock up period. An early redemption is possible with a 20% fee. All the trades will be shown next to the performance graph. For example:

  1. Cube 1 (variable return)
    Asset: USDT Algo Trading
    Expiration: March 2022 (6 months)
    Entry fee: 2%
    Performance fee: 20% of the net profit
    Return (annualized): up to 50%
    Lock up Period : until 22 March 2022
    If transformed in HyperCube: double variable return + lower fees
    Asset: USDT + HyperToken (10–100% of the USDT amount)
    Performance fee: 15% of the net profit
    Return (annualized): if 25%, 25% USDT + 25% of the USDT value in Hyper Tokens
  2. Cube 2 (variable return)
    Asset: USDT Algo Trading
    Expiration: September 2022 (12 months)
    Entry fee: 2%
    Performance fee: 20% of the net profit
    Return (annualized): up to 100%
    Lock up Period : until 22 September 2022
    If transformed in HyperCube: double variable return + lower fees
    Asset: USDT + HyperToken (10–100% of the USDT amount)
    Performance fee: 15% of the net profit
    Return (annualized): if 35%, 35% USDT + 35% of the USDT value in Hyper Tokens

Race Trading

The nature of this cube lets the user make a market prediction on a certain cryptocurrency. A user can choose a coin’s long or short market direction, and generate a profit if the coin achieves the selected price value before the cube’s expiration day. Therefore the race is a more aggressive approach, similar to a future contract trade, with the advantage that the profit and potential losses are immediately visible in our cube’s structure. The cube’s trade will be active once it receives through our smart-contract the user’s coins. A graph next to the race cube will be always available, in order for the user to check on its investment. The race cube trades will be entered across our own platform or by external trading environments connected to our smartcontract. An early redemption is possible with a 20% fee. In the future we’re planning to add more pairs, not just against stable coins but crypto against crypto as well. For example:

Cube 1
Asset: Eth 3000 Race Trading
Expiration: December 2021 (3 months)
Entry fee: 0.5 %
Target price: 3000 Usdt
Liquidation price: 1500 Usdt
Return (annualized): profit based on price level
Lock up Period day: 22 December
(for the payouts, the formula considers the final price at expiration, or the achievement of the predetermined targets or stop)
If transformed in HyperCube: double variable return
Asset: ETH + HyperToken (10–100% of the USDT equivalent amount)
Return (annualized): if 35%, 35% ETH + 35% of the ETH value in Hyper Tokens

Cubes expiration / renewal

Any cube has in built the auto renewal function, and it’s active by default. The user has the possibility, before the expiration date, to unlock part of or the whole investment from the cube. At renewal, the unlocked funds can be withdrawn, otherwise, if not unlocked, the funds will continue generating profit until the next expiration / renewal period.

Commission Plan

Each cube will have its own commission parameters, following this plan:

  1. Fix income cube — deposit fee 0.5% (deducted immediately from the deposited coin)
  2. Algo Trading — Deposit/management fee 2% (deducted immediately from the deposited coin) & net profit performance fee of 20% (deducted at cube’s expiration)
  3. Race Cube — Deposit fee 0.5% (deducted immediately from the deposited coin)

The above rates may slightly vary during promotions’ periods or particular market conditions.

Swap and Liquidity pools fee

The peers, similar to other defis swaps, can add liquidity to our pools and benefit from a percentage reward on the fees. For every swap 0.25% will be deducted from the transaction and distributed and distributed according to the fee structure below:

  1. 0.17% to all the peers that invested in the liquidity pool;
  2. 0.08% to the platform.

Farms

Once a liquidity pool investment has been made, the peer receives an LP-Token. Our system has planned to create yielding farms to take advantage of the LP-Tokens. However our farms are based on a fix income return in order to mantain under control even with this feature the minting production. The planned annualized return of our farming is set at 20%.

Referral Reward

The platform has developed a reward plan for any promoter or entity who will bring new users.

A simple referral system acting through the promoter’s wallet will be available for everyone helping the growth of the community for a limited time after launch. With the referral code the user will generate 3–5% more Hyper Token profit on its cube investment at the first expiration / renewal, and an additional 3–5% Hyper Tokens will be minted to the promoter as soon as the user invests in the cube. The user will be allowed to use the referral code only once per cube.

In the future, additional referral periods will be possible according to the promoters community requests.

Incentive steps for investments

The following steps are used to incentivize the user’s investments, with extra bonuses on the profit given in form of tokens:

  1. 0–100 ( usdt value) no additional Hyper token
  2. 101–500 (usdt value) 2.5 % extra Hyper token on top of the profit
  3. 500–1000 (usdt value) 5 % extra Hyper token on top of the profit
  4. 1001–10000 (usdt value) 7.5 % extra Hyper token on top of the profit
  5. >10001 (usdt value) 10 % extra Hyper token on top of the profit

The platform will generate additional Hyper token as well, directly proportional to the extra tokens minted through the bonuses.

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