The technology building blocks will be provided as a platform solution, providing services to users and enabling them to build and develop trading strategies (technical, news, market making, statistical arbitrage, etc.) or create entirely new digital investment products (i.e. ETFs, CFD OTC, etc.). By utilising platform services and solutions, users will be able to deploy their own algorithmic trading strategies and digital investment products. The DA Power Play solution will therefore enable algorithmic trading on crypto exchanges, from where the majority of future trading volumes on exchanges are expected to originate.
We want to empower and enable your digital assets to work for you. We are strong believers that managing your assets should be automated and quickly realigned and readjusted to each of your present circumstances and for risk/reward appetite. By having investments automated and by having them run by personal AI agents, decisions will be realigned to each individual circumstance.
DPP tokens will represent both the underlying value of the platform as well as be a means of value transfer and payment on the platform, making the platform fully self-sustaining.
Digital asset market participants face numerous operational and strategic challenges related to trading, investment and automated strategy, new products development and deployment which prevent them from maximizing returns on their investments. The operational challenges range from having enough resources to build and operate an automated trading system, the lack of a single point of managing all digital assets across numerous exchanges, opening and management of multiple accounts across different venues, to exchange downtime disabling order execution and the lack of liquidity between exchanges and wallets.
The strategic challenges refer to the requirement for constant surveillance of markets (both technical and social data), inability to rapidly develop and test trading strategies or new products (i.e. gaming ETF) as well as developing automated cross-exchange and cross-assets strategies and costs associated with development and trading. Therefore, managing digital assets, and developing, testing and executing strategies is cumbersome, leading to many missed trading opportunities.
Not only has number of digital assets and tradable pairs increased to over 460 on the top 10 exchanges with new daily additions, but so have volumes more than 7 times over between 2016 and 2017. Increased volumes provide more trading opportunities but without single management of assets spread across exchanges, automated live trading and liquidity provision, many presented opportunities will be missed, resulting in less efficient markets and potentially lower returns.
These obstacles are only likely to increase in the future, due to the ever increasing number of venues and market places as well as the number of tradeable digital assets and assets pairs. With the expected number of listed digital assets increasing by more than 2.5 times between 2016 and 2019, and with digital assets being spread across multiple marketplaces, it will be even more complex to manage and trade digital assets without a technological platform for doing so. Additionally, early adopters will become outnumbered by less fintech savvy investors, who will be looking for investment in strategies and investment products (eg. gaming ETF) rather than development of investment strategies, providing a tremendous opportunity for fintech-savvy developers and managers to develop their own strategies and products and offer them to investors creating self-sustaining operations.
Having considered current operational and strategical hurdles to strategy developers and fintech asset managers, coupled with the ever expanding market where future demand growth is expected from less savvy investors, we believe that we are presented with a tremendous opportunity for fintech developers and companies to develop, test, manage and automate live trading strategies or to create products around them (ETFs, CFDs, OTC, derivatives). With a co-investment by DPP and by attracting additional investors and assets into their strategies or products, fintech developers and companies will make their operations a greater success. DPP technology building blocks will become an integral backbone for such fintech developers and companies, providing them with an upper hand over the rest of the market.
The technology building blocks forming part of the solution will provide stakeholders with the following products and services. These services will empower DPP users, providing an upper hand over the rest of the market.
Technology blocks will provide automated strategy development, coming in two forms; drag and drop strategy block development, and programming language development. This separation will allow both non-developers and programming language developers to be able to develop automated trading strategies.
Drag and drop strategy development will be aimed at non-programming language strategy developers, i.e. primarily traders, investors or asset managers.Users will be able to utilise a simple drag and drop interface, with the addition of custom-made parameters, enabling automation of strategies based on both technical and custom-made parameters. A given strategy automation example might be: strategy that buys a digital asset being traded when the short-term moving average crosses the longer term moving average, and closes a position when either the short-term moving average falls below the long-term moving average, or price drops by 10% from its peak. The example given is a simpler overview of the more complex automated strategies that may be developed.By providing such drag and drop functionality, users will be empowered to develop their own automated strategies without having knowledge of programming languages.
Fintech developers, fintech companies and the whole community will be encouraged to open source parts or all of its code, making certain libraries and code reusable, allowing for a rapid development. With such open sourcing the whole community will benefit, enabling code optimisation and improvement, whilst constantly improving the value proposition of the DPP platform.
There will be no fees for the use of automated strategy development technology blocks and users will not be required to hold DPP tokens in order to develop strategies.
As described previously, part of the solution will be a provision of sandboxing technology block enabling backtesting of developed automated strategies. Historical data will be made available to both drag and drop and coding strategy development. Historical data will be made available going back to the exchange origins, certain digital assets origins providing both trades and order books. DPP will continue to collect this data and make it available for backtesting.
DPP will charge a small amount for each backtested strategy, with the exact fee schedule to be defined.
The DPP platform will provide a marketplace for job listings, and matching strategy developers and coding developers. Each investor, strategy developer or fintech company will be able to specify a coding job requirement, with the platform matching these requirements with available fintech coders. Fintech coders will make available their fees on the platform.
Following successful development and backtesting, users will be able to deploy their strategies live or use APIs. Live deployment can be executed directly from the DPP platform, enabling full automation and control over deployed strategy. APIs will be used by fintech companies and strategy owners that have their own trading systems, and will only use the DPP platform for optimal trade routing, faster execution, access to a greater number of order books, and enable access to the platform’s own order book. DPP will charge a small percentage fee for all trades executed over the platform. Due to expected volumes, DPP expect to have available discounts with exchanges, where this will be reflected in lower combined fees when compared with current average exchange fees. Larger whales utilising the DPP platform will naturally achieve special discount rates. Live trading and API fees will be payable in DPP tokens.
Each strategy owner and investment product creator can list developed and tested strategies seeking a co-investment by either the DPP platform or from other Investors. The strategy list will present its strategy overview, historical back-tested data, any live trading data, risk controls, fees and caps (min. & max. sizes of investment and strategy itself) if any. For selected strategies, DPP will itself co-invest from a public wallet, under terms and conditions as specified within a public wallet. DPP will not charge any additional fees for strategy co-investing, but will insist that all strategy trades are to be executed on the DPP platform, sandboxing wallets and only allowing trades to be executed on the platform itself or in cases where that is not possible, on whitelisted exchange addresses.
The DPP platform will provide a smart contract between the strategy wallet and investor wallet, fuelling strategy wallet receiving funds with DPP tokens, allowing the investor, unless otherwise specified and agreed, to control assets, add additional risk controls or add to or pull investment at any time. Co-investing will boost the visibility of top-notch strategies, enabling strategy owners to boost their earnings, whilst boosting returns to the investors, enabling a whole DPP ecosystem.
Additionally, the platform will allow for plugins from other market participants and partners like Santiment - providing social news. Likewise, the same will go for investment product creators that will be able to fuel their products from their own platform or investors.
Having connection to numerous exchanges, the DPP platform and private wallets, it is necessary to provide clearing & settlement of different digital assets between these different points of value storage. DPP will charge a small optional fee for such a service, much lower than live trading & API fees, and will continuously run algorithms and AI networks in the background in order to provide seamless access to the digital assets through a single wallet. DPP will move digital assets based upon AI prediction mechanisms, and clear and settle all the trades. Liquidity will be provisioned through the operational wallet. This service will benefit platform users with a liquidity provision, as it will enable instant access to digital assets and fiat regardless of where last provisioned, as long as they were utilised through platform wallets.
The DPP platform will enable virtual prepaid Mastercards to access fiat liquidity. Fees for all products will be expressed and payable in DPP tokens. Where DPP tokens are not made available within one of the wallets, the DPP platform will provide a conversion between different digital assets into DPP tokens.
DA Power Play is developing an end-to-end platform that will provide the required technology blocks for digital assets trading automation. By addressing stakeholders’ obstacles and through utilisation of DPP token, the platform will become a backbone for strategies and new digital assets products creation, liquidity provision trade execution and the market itself that will connect different types of participants in the digital assets economy.
This solution for the backbone of digital assets trading and investment users is composed of three layers that address different problems, providing opportunities to decrease costs and increase profits whilst mitigating the risk.
For a more detailed outline of each of our solutions, please download the full version of our business plan.
In order to address and differentiate stakeholders’ roles (investor, developer, strategy owner, fintech company), the platform will provide four different wallet types. Wallets will form an integral part of the solution, enabling a value transfer between stakeholders and providing strategy co-investment and platform self-sustainability.
The platform will act as a central clearing & settlement point between the wallets, platform and exchanges, and through the provision of liquidity to wallet owners.
As users will be able to gain access to platform liquidity, enabling them to access their digital assets and fiat regardless of which marketplace they have last placed them with. The liquidity solution will enable just-in-time and just-you-need provision of assets in the case that market opportunity should arise. Provision of liquidity will depend on platform utilisation, market conditions and developing of AI algorithms, so the possibility for usage of such service will be finite as we will work to constantly enhance volume offered and availability. The liquidity provision service will have a fee schedule that will be subject to constant improvement and optimisation.
Please refer to the full version of our business plan (download here) for a more detailed overview of each of our Wallets.
In last few months, digital assets markets notes have increased in value but have also increased in volatility and turnover. As the platform will provide a service which is based on turnover rather on the current price of a single cryptocurrency or token, our goal is to obtain up to 3-4% of turnover in a 36-month period (Chinese exchanges excluded).
During same the time, the market share of digital asset algorithmic trading is expected to increase following the initial development of algorithmic trading within traditional assets, where such trades now represent 75% of volume, and are continuing to increase.
Digital Assets Power Play will have the following revenue streams:
The platform will not only generate revenue for Digital Assets Power Play token holders, but also for other platform users:
All revenue streams and payments on the platform will be expressed and made in the platform’s own tokens. As such, tokens will not only represent participation in the value creation of the whole platform, but will also become a means of value transfer between different stakeholders on the platform.
All platform users will be able to develop their own strategies or new digital investment products (through either drag and drop, or programming languages), test these strategies and deploy them in a live platform environment. Owners will be able to publish the results of their strategies or digital investment products (like gaming ETF) and attract investment into these strategies directly from the DPP platform itself, or from other investors. Strategy owners will be able specify and to earn fees and boost their performance and earnings.
The funds raised by crowdfunding will be distributed among development costs and Operational Wallet for future trading and investments, whilst part of the tokens will be retained used over time as Liquidity reserve or the Public Wallet.
Crowdsale will represent 25% of all DPP Tokens and will have a two milestones, thus setting a minimum cap. at USD 2.1m and maximum cap. at USD 5.1m. First milestone represent funds that will be allocated for the development of platform, with a second milestone upto maximum cap. investment, will be allocated to the Operational Wallet.
Digital Asset appreciation from the Operational Wallet will feed operational costs, the Operational Wallet itself and the Public Wallet. As such, we expect the Public Wallet to grow over time, whilst enabling continuous development of the platform based upon community feedback.
The process itself should last up to 6 days with the intention to close it earlier.
The minimum target for the crowd sale is set to Ether equivalent of USD 2.1 million USD while the hard cap will be USD 5.1 million in total. Exchange rate has been fixed to USD 255 per ETH, based upon average closing price of period September 14 to September 18 2017, in order to adjust for recent volatility. At given exchange rate this represents a minimum cap of 8,236 Ether and a hard cap of 20,000 Ether.
The pre-sale phase will begin on September 19 at 5:00 PM CEST lasting for 48 hours. Following the pre-sale, the public crowdsale will start on September 21 at 5:00 PM CEST and it will last for four days.
The total amount of DPP tokens will be 100,000,000, distributed along the lines described below.
Regardless of the total number of DPP tokens, token distribution will be as stated below.
In the case the full sale of tokens is not accomplished, all remaining (unsold) tokens will be burned.
To register on the platform, users must hold 100 DPP tokens to prove eligibility for fee payments; if not, DPP will make a conversion for the minimum amount from digital assets held by the wallet owner into DPP tokens.
All contributions from the Public Wallet will be made in DPP tokens.
Token holders with more than 30,000 tokens will receive 24-hour notice on new investment into Strategy Wallets to be made by DPP from a Public Wallet.
Token holders having more than 10,000 tokens and a monthly fee turnover greater than 10,000 DPP tokens will have transaction fees reduced by 0.01%. The scale will work for each further 10,000 tokens, until we hit 0.06% in fees which is the lowest value viable for the platform.
DPP monthly token transaction fee turnover
Token holders having more than 25,000 tokens can access backtesting free of charge. In addition, this will apply to Strategy and Private wallets with more than 10,000 ETH equivalent, without having to hold the abovementioned number of DPP tokens.
All services on the platform will be payable in DPP tokens, including:
DPP platform transaction fees for every executed trade: 0.12% of transaction value, or less due to higher volume
DPP platform fee for the provision of liquidity between exchanges, wallets and the platform: 1% of provided liquidity.
DPP platform fee for backtesting - each backtest will cost 5 tokens.
Payments between Fintech developers and strategy owners for programming work commissioned will be payable in DPP tokens. The platform will provide a smart contract between these two parties, and, by submitting a backtest and confirmations verify execution of work.
Strategy owners and new product developers will set out their fees (i.e. assets under management 1%, profit 10%) and, through smart contract, charge investors and strategy backers in DPP tokens. DPP will backtest their strategies and results in order to verify results and confirm these pay-outs.
This is a purely token utilisation flow, as investors, strategy owners and platform can utilise other ERC20 tokens, Ether and cryptocurrencies for investments.
As token by its nature is a utility, and a means of payment, investment and value transfer on the platform, it should have a continuous supply and demand, both on the platform and on the exchanges. As cryptocurrencies will be converted into DPP tokens, there will be a constant inflationary pressure on the token.
Depending on token inflation, fees may be adjusted in order to better represent a market value.
As a team we have also cofounded KRYPTO INVESTMENT PARTNERS LIMITED, and the existing KIP EYE© trading system upon which the DPP platform will be based. During this period, we have achieved excellent performance results, attracted investment into the company significantly growing its equity, and have worked on deploying KIP EYE© and improving it through Artificial Intelligence modules. As a team we have decided to take on challenge of scaling the whole system, making it truly distributed and parts of it open-sourced, truly enabling a digital autonomous organisation, where tokens become a means of payment, value transfer and value of the underlying platform. For more information on our individual team members and their backgrounds, please refer to the full version of our business plan (link below).
We will publish the Terms of Sale a week before a crowd sale starts.
DIGITAL ASSETS POWER PLAY LIMITED has been incorporated at BVI - British Virgin Islands, with Krypto Investment Partners Limited as a founder and beneficial owner.
Following successful ICO, the company will work with partners on developing AML and KYC.