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Two Track Winner of Human DeFi Hackathon 2020. Convergent and Coherent Time Value Tokens Powered by Aeternity Protocol Non Fungible Token Implementation with a Hash Time Locked Contracts (HTLC) construct.

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GigameshGarages/AeonNet

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AeonNet

After a brief interlude, I am really delighted to be back in action in the aeternity ecosystem. I really enjoyed coding smart contracts in Sophia with Time Value Tokens as an NFT with a basic Property Verifier together with a Hash Time Locked Contract (HTLC). This prototype is named as 'AeonNet'. It was an double delight to win the esteemed Human DeFi Hackathon prizes for this idea.

Summary

  • Convergent and Coherent Tangible Time Value ( Non - Fungible ) Tokens Powered by Aeternity Protocol Hash Time Locked Contracts (HTLC).

Concept

  • What Is Time Value? In options trading, time value refers to the portion of an option's premium that is attributable to the amount of time remaining until the expiration of the option contract. The premium of any option consists of two components: its intrinsic value and its time value.

  • Time Value is also considered as an extrinsic or instrumental value in the options trading context. It is the premium a rational investor would pay over its current exercise value (intrinsic value), based on the probability it will increase in value before expiry. This value is always greater than zero in a fair market, thus an option is always worth more than its current exercise value. Time value decays to zero at expiration, with a general rule that it will lose ​1⁄3 of its value during the first half of its life and ​2⁄3 in the second half.

Roadmap

This prototype is a step towards using Aeternity Protocol for tokenising Bitcoin Options Trading ( among other options trading possibilities ) using the power of hash time locking, time value tokenisation and time value streaming in the near future. It is also possible to build trading settlement systems using this concept.

It has been a solo effort so far. I am looking forward to collaborating with hello Aeternitians here to refine the prototype and deploy this into the Aeternity MainNet as a time locked bridge to bring the might of Bitcoin into the magical powers and possibilities of Aeternity !! After all, in our voyage to Aeternity, we need a lot of time locks and time machines.

Technology

  • Hash Time Locks implemented through the Time Stamping Transactions in a Blockchain
  • Time Value Token created as a Non Fungible Token in the Aeternity Token Standard

Tools

  • Aeternity Node
  • Aeternity Smart Contracts
  • Aeternity SDK
  • NodeJS
  • NPM

References