2.5 Global value exchange layer
Last updated
Last updated
This system will algorithmically estimate the price of datasets to provide transparency to potential buyers. It also helps with fraud detection by flagging any transactions that are priced at a large difference from the preliminary price estimation.
We will take a hybrid approach of using manual market making and pricing, as well as automated market makers. In the initial phases we will do manual market making. As the usage and scale of the platform grows, we will move to automated market makers for some kinds of transactions (like high-volume standardised data categories), and stay with manual or more controlled pricing mechanisms for specialised or sensitive data.
To ensure users and stakeholders confidence in the platform above mentioned approach will help with:
Price stability
Liquidity
Fair price discovery
Seamless transactions enhancing user experience
Regulatory compliances related to market manipulation and fairness
An automated conversion mechanism that facilitates transactions with the Human Chain ecosystem in both $HUC and fiat currencies will enable mass adoption and scaling. We plan to build this in a later phase.
Data consumers can buy data-sets by paying either in Fiat or in $HUC tokens. The purchases will be facilitated by smart contracts at the price determined by our market makers. Both the transactions and the pricing will be fully transparent by virtue of blockchain technologies that we use.
In case the data consumer wants to purchase data in a Fiat currency, an On-ramping layer will be part of the transaction.
On Ramp
The On-ramping system will allow data consumers to pay in fiat currencies and convert it into $HUC tokens so that new customers can seamlessly purchase data sets without owning $HUC tokens. We will integrate existing third party on-ramping systems.
Data providers will be able to contribute data to the system in exchange for fiat currencies. This will be an important step in moving towards mass adoption as it removes the friction of having to transact in the crypto world.
Off Ramp
The Off-ramping system will allow data providers to earn in fiat currencies instead of $HUC tokens so that new providers can seamlessly contribute data sets with frictionless onboarding. We will integrate existing third party off-ramping systems.
An always-on price monitoring system would alert us to any potential price manipulation attacks on HumanChain. This provides additional security and reduces market risk. We plan to build this in later stages of the project.
