Introduction to DeFi:
With time comes growth, opportunity, and most importantly, change. We live in an exciting time for DeFi systems, developments and advances in the field of these systems since 2022 have led to the acceptance of this technology as an independent financial system publicly and also as an investment opportunity for investors.
In decentralized financial systems, open-source software and combinable frameworks allow anyone in the world to access global financial services in an unreliable and transparent manner, without the need for user identification.
Almost every day, there is a new investment project being introduced to the investment market that claims to be the best in its field and purpose, but despite the positive qualities of decentralized financial systems, scams, abuses, and programming errors are among the most common risks associated with using DeFi platforms, which causes investors to be very cautious of the security of their investments.
In DeFi projects, the developer publishes a whitepaper to inform consumers of the original idea of the project. In some projects, such as the YAM protocol, despite reporting how the project is working, it eventually encounters some technical problems and ends up losing the capital. In the mentioned case, a bug in over-mints tokens has happened. Due to tokens having more multiplicity than expected, the chain of command is invalidated and the investors lost millions of their capital by the developers’ mistake. Of course, there are other methods of fraud in these projects, such as:
Rug pulls, Honeypots, and Phishing attacks, but there are ways you can secure your funds against them:
1- Find the Purpose of the Project:
Many cryptographic projects offer nothing new. They just try to ride the wave of DeFi projects and attract investors. In order to avoid investing in the wrong projects, we need to find out new and unique elements for each project that will lead to a successful investment. If the initial information about the project is unclear, vague, or suspicious it may be a scam.
2- Study the Development Process
A standard DeFi project is an open-source project. By examining the code written for the program, one can realize the originality and reliability of the project.
3- Fundamental Smart Contract Under Consideration
Smart contracts need to be audited to ensure that users are secure. If developers fail to provide an “audit trail”, it could indicate a risk to investing in the project, especially since offenders are reluctant to do so due to the high cost of the audit.
4- Investigating the Individuals and Companies Involved in the Project
A common theme in the digital economy is anonymity and sobriquets. Top developers are even taking advantage of this freedom.
If there is no information about the people behind the project, this can be seen as a warning, especially if the legal debt recovery process is fraudulent without any explanation as to who was behind the project.
5- Fair distribution of tokens
When determining whether a project is safe, the fair distribution of tokens is a crucial factor. Fraudsters typically monetize token-based projects by raising their token price before unloading them. As a result, the founder must allocate a significant portion of tokens to the founders (between 40–60% of the total tokens) who can sell their tokens at once when the price rises. However, such an allocation does not in itself indicate fraud, but more research is needed on the project.
6- Proportional initial supply
For new projects, there are four main methods of raising capital, including IEO, IAO, ICO, and IDO. In the event that tokens are distributed in large quantities at the beginning of a project introduction, the price of tokens will decline rapidly.
Furthermore, having a good stock reward for depositing, having different licenses from reputable sources, setting up a network that is difficult, and providing state-of-the-art technology can serve as indicators of credibility.
Of all interpretations, the Bersipa coin project, which is the native coin of the Bersipa wallet, has largely solved all six parameters in its chain and has given users access to research on this project by providing free and transparent resources.
To develop the string network, Bresipa wallet, and other technologies unique to the Bersipa protocols, the Bersipa coin was created. The aim of creating this coin wasn’t to create wealth but to develop the technology of the Bersipa protocol system and other technologies.
Another distinctive feature that makes Bersipa one of the leading projects in the future is its clear financial plan.
Justice-oriented technology:
In the techno section, you can see the fair distribution of Bersipa Coin. The Bersipa Foundation has presented one of the most unique ways to distribute limited coins among developers, by distributing only 18% of its coins to the programming and development team, 15% of which is locked for three years. With the equitable distribution of coins, justice has been achieved. From 2022 to 2025, all of the coins that the foundation will hold will represent only 3% of the total supply of coins on the market.
Bersipa DEX:
DEXs are a type of currency exchange that allows direct, peer-to-peer digital currency transactions online, securely and indirectly.
Below is an overview of the Bersipa ecosystem and the technologies used in the DEX private exchange, along with an explanation of why the Bersipa Wallet project is one of the most innovative future projects of the DeFi financial system:
The Bersipa String project is an ultra-blockchain project, and the DEX exchange launched on the Bersipa wallet is only part of this large financial structure.
Bersipa DEX Aggregator:
“DEX Aggregator” has the ability to provide liquidity from various DEXs, its mechanism is such that the user orders the order in case of depletion of coins and tokens in the DEX wallet; Provides from other DEXs that have the lowest price close to the order amount. (Figure 1)
By dividing a swap transaction between several derived exchanges, the user can have a better overall price than any single exchange.
The following section shows Bersipa DEX aggregator’s calculations:
Advantages of DEX Aggregators Mechanism:
DEX Aggregator provides the following benefits to the users:
1. Suitable for high and low volume exchanges
2. Providing liquidity
3. Anonymity
And
4. Automatic detection for the lowest transaction rate and cost (Gas fee):
A DEX Aggregator searches for other DEXs with the lowest rates and provides the maximum liquidity for order quantities as part of its planned mechanism. The next DEX is automatically generated if the order amount is not met, and the process is repeated until the order amount is met. As a result, the transaction fee rate varies between 5 and 50 percent, depending on the availability of liquidity from various sources.
A look at the simple and basic structures of the DEX function will help us to understand what will happen in the alpha version of Bersipa DEX:
Bersipa Market Maker
Bersipa coin is connected to an automated market maker created by using an inflation control mechanism. Inflation occurs at two main levels:
- In Market Inflation:
Market control in this inflation is done by a mechanism that controls the base price of the tokens.
- In Pool Inflation:
With a special floating formula, the protocol automatically controls inflation between +20 and -20% using a mechanized percentage. By falling the price the investor demand increases, to control this volume of demand, this formula applies the inflation control mechanism between 1 and 20%.
Compared to the previous issue, in the face of a sharp increase in market prices, demand decreases. To attract the desire to preserve capital, the injection of pre-planned liquidity reduces the inflation rate to 20%. The mentioned process is organized by an automated formula derived from artificial intelligence, the coefficient of which can be seen in an accessible leaderboard at www.Bersipa.io.
The technology currently works on a string network but has the ability to join other blockchains with API settings.
Bersipa Pool:
The Bersipa pool system is an automated market-based protocol (AMM) currently built on the main string network but it will be able to connect to other protocols through the APIs on the market.
In Bersipa pool, users can receive Bersipa coin in exchange for offering five main currencies BTC / ETH / IOTA / FTT / BNB with different interest rates for each. The Bersipa ecosystem provides selected currencies, which are reputable cryptocurrencies in the world, and which enhance the credibility and confidence of investing in this network.
Benefits of Bersipa Pool :
1- High annual profit of Bersipa coin
2- Lending with a coefficient of about 50%
3- 2% instant redemption rate
4- Up to 80% reduction of transaction fees in Bersipa DEX
Bersipa SOR Mechanism
Additionally, to the features noted above, Bersipa Wallet provides liquidity to users through an automatic accumulator (DEX Aggregator). In order to provide this service, Bersipa uses an artificial intelligence model called Smart Order Routing (SOR), which automatically brings liquidity from multiple sources to find the best price.
Staking
Investing in cryptocurrency is a way to earn passive income by helping to verify transactions in blockchain networks. Typically, crypto staking networks allow token holders to participate in the validation and approval process of other users’ transactions by depositing part of their assets, resulting in a share of the rewards.
As mentioned earlier in the Tokonomic section, 16% of Bersipa coins will be rewarded in the staking process. Investors can receive SIPA coins as a reward for five years if they have the six listed currencies below:
1- BTC
2- ETH
3- BNB
4- IOTA
5- FTT
6- SIPA
Each token is chosen for a specific reason, for instance, BTC and ETH are the two main currencies in the cryptocurrency market that have the lowest investment risk.
IOTA is one of the leading projects in the implementation of Tangle technology, and BNB and FTT are the currencies of the two major crypto exchanges, Binance and FTX.
Ways to Make Money from Bersipa Wallet
In recent years, various monetization conditions have been introduced by DeFi technologies. In addition to providing a space for trading and exchanges, Bersipa Wallet offers its users several ways to earn money from their main capitals.
As well as the coefficients of each currency and inflation, Bersipa Wallet calculates the stakes of these six currencies. For each year of the investment, the interest rate changes as follows:
• The First Year:
- The investor can receive up to 16% of the capital they have staked as a reward.
• The Second Year:
- The investor can receive up to 14% of the capital they have staked as a reward.
• The Third Year:
- The investor can receive up to 12% of the capital they have staked as a reward.
• The Fourth Year:
- The investor can receive up to 10% of the capital they have staked as a reward.
• The Fifth Year:
- The investor can receive up to 8% of the capital they have staked as a reward.
In the first year of investment, for example, investors who stake their funds can receive a bonus of 16 percent of their initial capital multiplied by the inflation index (floating inflation index). The reward will be automatically credited to their account in the form of Bersipa coin, which they can withdraw after the staking period stipulated in their smart contract has expired.
Lending :
If an investor uses the lending method in the first year, he or she can receive multiply 50% of the amount in their Bersipa wallet with collateral of one of the six listed currencies multiplied by the P-rate, which is also multiplied by the floating inflation index (FII) as a non-interest loan
Floating inflation rate per currency:
SIPA = 1.10
BTC = 1.01
ETH = 1.02
IOTA = 1.03
BNB = 1.02
FTT = 1.02
After depositing collateral, loans are sent instantly through smart contracts. Every loan will have a minimum payback period of six months and a maximum payback period of 24 months.
With less than 1000 USDT:
The investor can choose the method of staking or lending according to their credit limits.
It is worthy to mention that the Bersipa DEX discount does not apply to investors whose invested assets are less than USDT 1000.
Between 1000 and 5000 USDT:
- The investor can choose the method of staking or lending according to their credit limits.
- Investors will receive 2% of their initial capital as redemption in the form of Tether amount accordingly.
- They have the privilege to receive up to a 50% discount on their DEX commission rate (multiplied by FII rate) in their transaction.
With more than 5000 USDT:
- The investor can choose the method of staking or lending according to their credit limits
- Investors will receive 2% of their initial capital as redemption in the form of Tether amount accordingly.
- They have the privilege to receive up to 80% discount on their DEX commission rate (multiplied by FII rate) in their transaction.
Example:
If an account has a balance of USD 10,000, the following conditions apply:
Both staking and loan options are available for this account.
Assumption: 1
2% of the depositor’s total capital, equal to 200 USDT, will be returned to their account upon selecting the investment method and signing the smart contract.
- The investor may intend to stake their assets.
If the investor decides to use half of their initial capital as a loan credit to buy tokens, this amount is multiplied by the P-rate multiplied by FII (floating inflation index).
X / 2 (P-rate) × FII = Loan amount
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