Defibox Whitepaper V1.2

1/ Project Overview

Defibox (https://defibox.io) is a professional one-stop DeFi application platform on EOS. It is initiated and managed by the Defibox Foundation, and get funding and support from Newdex. The project was launched on July 21, 2020, which is committed to becoming the DeFi application platform widely used by EOS users. Currently, Defibox has launched two protocols, namely Swap and USN stable coin (formerly Danchor project). We will launch more protocols in the future such as decentralized lending, synthetic assets, etc.

1.Defibox Foundation

As the initiator and manager of the project, the Defibox Foundation is responsible for project goal setting, strategic planning and resource coordination, and hires an executive team to ensure the continuous development of the project.

2.BOX DAO

The Foundation will organize the governance community "BOX DAO" in the future, which is mainly composed of Defibox token holders, through governance voting or proposals to jointly maintain the operation and development of the project. The ultimate goal of BOX DAO is to dissolve the Foundation and achieve more completely decentralized autonomy.

3.Defibox Executive Team

As the developers and operators of the project, the Defibox executive team is hired by the Foundation and is responsible for the Foundation and the governance community. They need to complete the goals set by the Foundation in time and report to the Foundation and the governance community.

2/ DeFi Protocol

Every DeFi protocol of Defibox is open, and any individual or organization can visit and use it without any threshold including DApp users, contract developer, etc.

1.Swap

Swap is a completely decentralized token swap protocol and automatic market-making protocol (AMM). The protocol provides swap prices in real time through the constant product algorithm, and users can complete token swap instantly. In addition to token swap, users are free to create swap market, or they can select to join the already created market to become a market maker and provide liquidity for the market (deposit two tokens in proportion). The market maker automatically earns fees paid by transaction users based on the liquidity ratio.

2.USN Stable Coin

The USN stable coin is the original project of Danchor. The decentralized staking stable coin based on EOS was launched on January 17, 2020. The Danchor project will be merged into Defibox as a sub-project. The stable coin USN (1:1 pegged to the U.S. dollar) is generated by staking EOS, which can meet various financial needs such as leveraged trading and obtaining floating capital. The system adopts the risk control mechanism of over-staking and liquidation to avoid market fluctuations and provide value support for each USN with sufficient staking items.

3.Decentralized Lending and Synthetic Assets

Defibox plans to develop decentralized lending and synthetic asset protocols to form a DeFi protocol matrix and build a one-stop DeFi application platform.

3/ Token Release

Defibox issues BOX on EOS main chain with a total supply of 100 million, which are released linearly from 0 using mining method 100% with no private placement, no reservation and no pre-mining.

1.Swap

20 million BOX is distributed to Swap market-making mining, and the token release and market-making mining will start simultaneously.

Release rules:

0.128 BOX is released every second, and the release ends in about 5 years. The specific distribution rules are as follows:

• 0.0896 BOX is released to the market-making mining pool for market-making mining.
• 0.0288 BOX is released to the Foundation account to be used for product development, operation and promotion, team incentives, risk reserves, etc.
• 0.0096 BOX is released to Newdex account as a reward for Newdex fund-aid and support.

Mining rules:

• Becoming a market maker to provide liquidity can get 100% transaction fees and BOX incentives of market-making mining pool.
• The BOX amount obtained by market-making mining per second = the proportion of the provided liquidity converted into EOS × 0.0896.

2.USN Stable Coin

10 million BOX is distributed to USN generation mining, and the token release and USN generation mining will start simultaneously.

Release rules:

0.064 BOX is released every second, and the release ends in about 5 years. The specific distribution rules are as follows:

• 0.0448BOX is released to the USN generation mining pool for USN generation mining.
• 0.0144BOX is released to the Foundation account to be used for product development, operation and promotion, team incentives, risk reserves, etc.
• 0.0048BOX is released to Newdex account as a reward for Newdex fund-aid and support.

Mining rules:

• Staking EOSto generate USNcan get BOX incentives of USN generation mining pool.
• The BOX amount obtained by generationmining per second = The proportion of your USN generation amountto the total USN generation amount of all users × 0.0448.

3.Decentralized Lending

10 million BOX is distributed to decentralized lending mining, and the 10 million BOX is locked before mining starts.

4.Synthetic Assets

10 million BOX is distributed to synthetic assets mining, and the 10 million BOX is locked before mining starts.

5.Other Mining

50 million BOX is distributed to other Defibox protocols mining or other forms of mining, and the 50 million BOX is locked before mining starts. Before the establishment of BOX DAO, the Defibox Foundation has the right to adjust the mining distribution rules according to demand.

4/ Token Value

Defibox token BOX is the purely governance DeFi token. The value of BOX is mainly obtained through governance:

After the establishment of BOX DAO, BOX holders can vote to determine the important parameters of each DeFi protocol, for example, whether the Swap protocol pays dividends, the Swap protocol dividend ratio, Swap protocol transaction fees, USN stable coin treasury interest, USN stable coin liquidation penalty, etc. It also includes the ability to vote and decide on various proposals such as BOX burning plan, DeFi protocol logic adjustment, DeFi protocol development plan, etc. Because BOX holders have the right to determine important parameters of the DeFi protocol, they will become decision-making participants of Defibox, and BOX holders will benefit from the governance.

5/ Risk Warning

1.Technology Risk

The Defibox Foundation and the executive team attach great importance to the security risks. The smart contracts have passed multiple audits by security company, but there is still no guarantee that the contract is 100% secure. Unforeseen emergencies may occur in the future such as DeFi protocol security vulnerabilities and hacker attacks, etc. In the event of such an emergency, the Foundation will urgently shut down the DeFi protocol to avoid or reduce losses. The Defibox Foundation will maintain the principle of prudence and will launch a bug reward program in the future to try to eliminate possible security vulnerabilities and potential risks.

2.Policy Risk

Defibox Foundation may stop operations in the future due to policy reasons. Therefore, the Foundation plans to organize BOX DAO governance community in the future. The ultimate goal is to dissolve the Foundation to achieve complete community autonomy.

6/ Project Summary

As a professional one-stop DeFi application platform on EOS and with the mission of improving the efficiency of global value circulation, Defibox uses the power of decentralization to combine the features of DeFi, which is more transparent, fairer and more convenient, with EOSIO's system advantages; it provides EOS users with a safe, professional, convenient and easy-to-use DeFi protocol, and contributes to the development of the EOS ecosystem.

7/ Disclaimer

This document is only used to convey information and does not constitute relevant opinions on investing in the Defibox project. This document does not constitute and is not understood to provide any trading behavior, nor is it any form of contract or promise. Once participating in the project, it means that you understand and accept the risks of the project, and are willing to bear all the corresponding consequences for this. The Defibox Foundation clearly stated that it will not bear any direct or indirect losses caused by participating in the Defibox project.