TiTi Protocol
  • πŸ‘‹Welcome to TiTi Protocol
  • Overview
    • What is TiTi Protocol
    • What is TiUSD Token
      • What is unique about TiUSD
      • How TiUSD is minted and redeemed
      • How to ensure the stability of TiUSD
      • What are the advantages of TiUSD
    • What is TiTi Token
    • How to earn in TiTi Protocol
    • What is the flywheel of TiTi Protocol (Use-TiUSD-To-Earn)
  • core architecture
    • TiTi-AMMs (M-AMMs)
    • ReOrders
    • Protocol Reserve Value (PRV)
    • Protocol Added Value (PAV)
    • Market Maker Fund (MMF)
    • Multi-Asset-Reserve
  • TiTI Tokenomics
    • Token Distribution
    • Protocol Fee
    • TiTi Incentive
      • TiUSD-X Token Liquidity Provider
      • Dual-Mining participating MMF
      • Use TiUSD to earn TiTi rewards
        • Buy TiUSD in TiTi-AMMs
        • Buy TiTi in Other DEX
        • Hold TiUSD
    • TiTi Staking
    • Reward Epoch History
  • Product Guides
    • Swap TiUSD in TiTi-AMMs
    • Join Market Maker Fund (MMF)
    • Join TiUSD-XToken LP Staking Pool
    • Use TiUSD to earn TiTi Rewards
      • Buy TiUSD to get TiTi Token Rewards
      • Buy TiTi to get TiTi Token Rewards
      • Hold TiUSD to get TiTi Token rewards
    • Join TiTi Staking Pool
    • Video Guides
  • TiTi Wikipedia
    • Core Terms
    • Core Protocol Parameters
    • Roadmap
    • TiTi Protocol Secures $3.5 Million
    • FAQs
  • Useful Links
    • TiTi Branding Resource
    • Contract Addresses
    • Audit Reports
    • Social Links
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  1. core architecture

Multi-Asset-Reserve

PreviousMarket Maker Fund (MMF)NextToken Distribution

Last updated 1 year ago

First let's introduce a new term, Reserve Ratio (RR). The Reserve Ratio (RR) is the total reserve's value against total TiUSD in circulation.

RR=RreserveQTiUSDRR = \frac{R_{reserve}}{ Q_{TiUSD}}RR=QTiUSD​Rreserve​​

Where the R_{reserve} is the total reserve's value in TiTi Protocol, and the Q_{TiUSD} is the total TiUSD in circulation.

In order to expand TiUSD's market cap, MMF can further meet users’ needs for multi-asset transactions while avoiding the single-point risk of the protocol and improving the robustness of the protocol. In the following session, TiTi Protocol is expanding to multi-asset M-AMMs. Assuming that the protocol is composed of three TiTi-AMM pools, or three kinds of asset reserve, namely TiUSD-USDC, TiUSD-ETH, and TiUSD-WBTC, RR should be:

It means that the anchor price of each market-making transaction channel remains the same, that is, TiUSD's Peg Price:

The function ensures that the Protocol can achieve a balance of risks by selecting multiple assets, reducing the impact of violent fluctuations of a single asset on the Protocol as well as ensuring the security of the PRV. During the ReOrders interval, the short spreads between M-AMMs can quickly flatten by arbitrageurs. Eventually, price consistency will be achieved. Referring to the above back-testing use cases with 3 trading pool TiUSD-ETH, TiUSD-DAI, TiUSD-USDC. The initial liquidity of each trading pool is the same. They each account 1/3 of the total circulation of DAI on the Jan ,1st 2020. The subsequent changes in circulation are evenly distributed among the 3 trading pools, the following charts show the change of TiUSD's Peg Price and RR:

As shown, when the protocol is composed of multiple assets reserve, it can not only avoid the impact of violent fluctuations in the price of a single asset to a certain extent, but also enjoy the benefits of volatile asset appreciation. in addition, composition ratio of basic assets can be further adjusted through community governance in order to more robustly control the single-point risk. Similar to the operation of swapping positions, this ratio change can hold controllable risks and maximize efficiency gains alpha benefit.

In parallel, in the multi-asset reserve model, the Protocol will issue different Market Maker Funds accordingly, allowing investors to freely choose assets and expected rate of return of each fund. Besides, each MMF maintains the independent income. For example, the USDC Market Maker Fund participants will only enjoy the income generated by TiUSD-USDC market making for fairness.

TiTi Test & Simulation Analysis
Multi-Asset Reserve Portfolio