Hypersphere

The universal exchange

Our model is to take the idea of De-Fi and make it 4 dimensional instead of 3. An idea that is called a hypersphere, the hypervolume as seen below that is encapsulated by the hypersurface. A hypersphere is a mathematical 4-sphere, the surface being 4 dimensional. It is analogous to a quaternionic projective space, the n-balls (in this case asset price/volume) lie in the ring of quaternions.

This idea was born out of viewing the work Balancer Protocol has done with multi-token pools and the work of Samuel R. Buss, PhD. Dr. Buss has helped us with the code, though its original application was in graphics to help smooth animated surfaces, we will use it to recreate a universally interoperable, single pool asset exchange.

Balancer is working towards this in their V2, though that work was made public after we began working on this project, I had figured it was the most logical direction for Balancer to progress into since their system of automatically finding the best prices between pools was rendered pointless by high gas fees.

Liquidity should not be balkanized in the way De-Fi has currently. There is no point in having 17 WETH-USDT pools at different interest rates and trading fees, when they should be in a single pool that can allow, pairs, trios and quads to be traded at once. Which is what the Hypersphere allows.

So for example if you wanted to trade $100 worth of Uniswap token for $75 of Ethereum and $25 of WBTC this trade would be possible to be processed because it retains the value of the Hypersphere, $100 swapped for $100 is what happens here, in principle. And because of that any iteration of trading is possible, pairs, tries, quad or even more as a single trade.

In theory, the Hypersphere can accommodate an infinite numbers of tokens deposited. In reality, we have to restrict which tokens can be added to ensure stability and viability of the Hypersphere. Projects with low trade volumes would pose a threat simply because a user could swap those less desirable tokens for Ethereum or Uniswap and the Hypersphere would be left with assets that may not be able to be exchanged into the token of the liquidity providers choice. For this reason the initial release will focus on top 20–30 tokens in the De-Fi space with Aspen token holders being able to vote for acceptance of new tokens, since they are the ones who will take the risk related to the project.

The Hypersphere will have some automated security features to ensure the safety of users’ deposits. We are interested in implementing a circuit breaker that can take effect for irregular transactions that could effect the liquidity of the Hypersphere. Secondly, liquidity providers will have to commit to a lock in period for their deposits to prevent rug pulling. Rug pulling is a smaller issue for the Hypersphere since our assets only derive their price vis-à-vis each other at the time of trade, rather than a constant like a traditional pool. These time locked periods could vary between 6hrs to 1 month to allow users maximum flexibility in how they want to employ their funds.

The Future

Looking towards future usage of the Hypersphere concept, we plan to integrate its’ usage with our lending platform dLEND that will allow crypto users to lend directly to students and home owners.

Because the Hypersphere is able to make any asset interoperable the applications are countless, integrations with projects like energy exchanges, raw data analytics sales and payment management systems are all possible.

But our end goal is an application that would allow real-world payments via an accepted crypto currency. Not a debit card but something akin to PhonePe (India), CashApp (United States) or Alipay (China). These apps in many ways have replaced debit cards. Because real-world adoption of crypto has been slow the app would have to focus on a the most popularly adopted tokens for payments. So it could work by individual pooling a token (i.e USDT) then users connect their wallet or transfer their funds into the application with whatever token. When payments occur the pooled money is used for instant payment and the user’s funds are deducted accordingly and given to the pool plus a small fee as an incentive.

Of course this an application that needs more fleshing out but these are the general directions we plan to take the Hypersphere and De-Fi into the future with Aspen Labs. We are excited hit the slopes with all of you!