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Setheum

  • Proposer: JBA-Khalifa
  • Payment Address: 1EDXptvCZo1sWpT8BFTvdopZbBShhurkGA
  • Status: Terminated

Project Overview 📄

Overview

Please provide the following:

  • A brief description of the project.
  • An indication of how you will integrate this project into Substrate / Polkadot / Kusama.
  • An indication of why your team is interested in creating this project.

The Setheum Network MVP will include the following parts

  • The STP258 (Setheum Tokenization Protocol [to-fiat]) Stablecoin Standard Module: 34 fiat currencies that can be spent on SettPay and are also represented in a basket token.
  • The SERP (Setheum Elastic Reserve Protocol) Token Elasticity Module: Designed to make cryptocurrencies that are backed by other cryptocurrencies with the PES (Price Elasticity of Supply) algorithm utilized for token elasticity of supply (TES) algorithm.
  • Setheum Chain using Substrate to enable all in one DeFi & DeCo development and interoperability including the following modules:
    • The STP258 Module, which we are developing and is open-sourced for the community to use and build upon. It is a stablecoin protocol that offers 34 fiat-pegged stablecoins and a family stablecoin that is pegged to all the 34 stablecoins as a basket of tokens.
    • The SERP Module, which we are developing and is open-sourced for the community to use and build upon. It is an elastic fully decentralized stablecoin protocol that functions like a decentralized Central Bank
    • Various modules specific to manage Distribution of STP258/SERP-TES Monetary Issuance, Ecommerce payment, et al.
  • SettPay: The Setheum Wallet for the STP258 Stablecoins, to function like a traditional Bank. Later on to add features to pay on ecommerce platforms with any cryptocurrency through the STP258 protocol, to enable minting of STP258 stablecoins, peer to peer transactions, and later on in the near future we will add Subsocial in the SettPay Dapp as a micro-service just like Alipay chat in AliPay.

Setheum Labs props, supports, nurtures and stewards applications in the fields of Decentralized Finance protocols particularly e-commerce (Decentralized E-Commerce or DeCo) and protocols that can serve as open finance building blocks such as stable currency and synthetic assets. Setheum Network is a focal R&D project initiated the Setheum Labs. Setheum Labs is founded by Muhammad-Jibril B.A. participant of the Polkadot ecosystem. Deco is now like a store where anyone can sell anything, it is basically a financial framework and infrastructure for normal eCommerce platforms/apps to integrate or build their payment gateways on to give free discounts to their users/customers through Setheum's elastic distribution of stablecoins by the SERP-TES. We will integrate this project into Substrate, Polkadot and Kusama by developing Substrate Modules and running Polkadot & Kusama Parachains. Our Team is more than interested in creating this project because we see a gap in the cryptocurrency industry, how cryptocurrency is being used and the limited access to more diverse stablecoins. And we want to create fully decentralized stablecoins that function like Central Banks and have their own decentralized Monetary Policy and Fiscal Regime. I am an eCommerce entrepreneur and I know the pain points of the seller especially the most painful - that is the Payment Systems, the payment gateways are too complicated and have unreasonable difficulty in selling to a worldwide audience. Setheum makes a payment gateway I can use on my App to sell anywhere in any cryptocurrency and in fiat.

Project Details

We are building a decentralized, cross-chain, community-owned DeFi (Decentralized Finance)and DeCo (Decentralized Commerce) system - the Setheum Network, to enable true economic interoperability, cross-chain liquidity and scalability. Along with the system, we are also building an economic model and governance framework to sustain the development, and continuous participation in the Polkadot ecosystem (e.g. as parachain and will setup a non-profit foundation to foster development on the Polkadot Ecosystem - especially in Nigeria and Saudi Arabia), until ultimately transitioning the network to community ownership. The Setheum Network will serve as a building block for DeCo and DeFi applications such as SettIndex in the Polkadot Ecosystem, and will provide new use cases for quality assets in the Polkadot ecosystem, such as DOT and new upcoming Polkadot projects such as Kylin, ChainLink, Open Ethereum et al..

As for the SettPay Wallet UI, it is not simply based on polkadot.js, it will be separate UI? We currently don't have mock-ups. We are planning to use ReactJS or VueJS frameworks written in JavaScript.

The stablecoins are backed by the DNAR, just like the gold standard. The DNAR is the Gold. A partial derivative stablecoin (SETT) - pegged to 34 fiat-pegged stablecoins (a basket of currencies just like the IMF's SDR).

Setheum also offers a Central Bank type of monetary regime to issue it's elastic stablecoins, but unlike the Central banks, SERP-TES is decentralized and it distributes the new supply of stablecoins as discounts and cashback when users pay with SettPay. SettCard will soon be offered.

Ecosystem Fit

Are there any other projects similar to yours? If so, how is your project different? Setheum offers a stablecoin market unlike any orher, unique. Libra offers a basket token pegged to various fiat currencies that can only be spent as a basket token, we offer a basket token of Fully Decentralized Algorithmic Crypto-Collateralized Elastic Stablecoins backed by our governance token. I invented the SERP-TES and the STP258 Protocols. And the STP20 Protocol is coming soon. We designed everything from the ground up to repell any economic catastrophy that Libra can not withstand. We developed a Monetary Policy that even large Banks would love to immitate and we do it under the Apache 2.0 License.

Acala provides a single multi-collateral USD-pegged stablecoin. We offer an elastic stablecoin protocol (SERP-TES) that mints and contracts the supply of SETT depending on the Demand Curve. As if it increases in value over it's peg then more is minted as inflation, and the protocol will buy back during contraction.

The stablecoins are backed by the DNAR, just like the gold standard. The DNAR is the Gold. A partial derivative stablecoin (SETT) - pegged to 34 fiat-pegged stablecoins (a basket of currencies just like the IMF's SDR).

The jSETT will be multi-collateral and pegged to the SETT, so you can mint jSETT by locking DOT or KSM et al, it is still linked to the DNAR, because as jSETT is transacted, DNAR gets transaction fees thus increasing the Value of the DNAR and thus minting more SETT for discounts and cashback. So the jSETT is also far from same with Acala's aUSD.

Setheum also offers a Central Bank type of monetary regime to issue it's elastic stablecoins, but unlike the Central banks, SERP-TES is decentralized and it distributes the new supply of stablecoins as discounts and cashback when users pay with SettPay. SettCard will soon be offered.

https://github.com/Setheum-Labs/Setheum-Labs-White-Papers/blob/main/Setheum%20Tokenomics%20White%20Paper(3).pdf

Team 👥

Team members

  • Muhammad-Jibril Bashir Abba (Founder, CEO, Full Stack Developer)
  • Valentine Oragbakosi (CTO, Core Rust Developer)
  • Hamza Yasin (Senior Blockchain Developer)
  • Junaid Mushtaq (Lead Blockchain Developer)
  • Suleiman Mustapha (Front-end Developer)
  • Al-Mustapha Mustapha (UX/UI Designer)
  • Khadija Bashir Galadanchi (HR & Management)
  • Bashir A. Galadanci (Enterprise Banking)
  • Bashir Adamu (Accounting & Finance)
  • Dr. Rislanudeen Muhammad, PhD Economics (Advisor - informal)

Team Website

The legal structure of the Setheum Labs will be set up soon in a Crypto Favourable Legislation i.e. Switzerland, Malta, Estonia, et al. In the meantime, the team is under legal agreement.

Team's experience

  • Jibril is the Founder of Setheum Labs and Slixon Technologies (an ecommerce startup), the chief economist and chief researcher of Setheum, the co-founder and Director of Technology at Obelisk Integrated Services, Director of Technology at Basmam Traveling Agency, Advisor at Workman.ng, EnvestLab and Northflix.ng. He is an early Bitcoin & Blockchain enthusiast, a self taught Polyglot, cyber security analyst, Economist, Entrepreneur, Full-Stack Developer, Software Engineer, Blockchain Developer, who has taken a year to design and architect the best approach to build a scalable TES mechanism for the STP258 Stablecoins and the best token economics that could sustain the Setheum Economy, the SERP Protocol which we will implement as a Substrate Module for the Open Source Community from inception to implementation. He was a Google Developers Group early Nigerian community contributor. Self-taught Cryptographer, Rust developer, Java, C, C++, JaaScript, ReactJS, VueJS, TypeScript, PostgreSQL DevOps Engineer. An Entrepreneur with experience in startups and business development, graduated from Informatics Academy with IDITC and studying BSc. Computer Science in Weifang University of Science and Technology in Shandong, China.

  • Valentine holds a Bachelor's degree in Biochemistry but took a liking to Technology and went on a tech career journey from an Intern at Genesys Tech Hub, to a Software Developer in Progxap. He recently was a Software Engineer in Sprinttrip and co-founder of Vanilla. He is a Rust developer An active member of the Open Source Community, and the Rust community. He has had over 800 open source contributions on GitHub this year, Arctic Code Vault Contributor. Valentine has worked on so many projects in Open Source and Rust.

  • Hamza is a 1ST PRIZE WINNER – INTERNATIONAL CONFERENCE ON OPEN SOURCE SYSTEMS AND TECHNOLOGIES IN UET. A Blockchain Expert and a Java developer having experience in Swing framework, Java core, Nodejs, Javascript, Solidity Smart Contracts, Ethereum, bitcoin, stellar, cryptonote, Hyperledger, Ethereum or other blockchain forks, Centralized, Decentralized or Hybrid Crypto Exchanges and Private Blockchain Development. I do consultancy in blockchain space.

  • Junaid Mushtaq holds a BSc in Computer Science from the University of Central Punjab and has vast experience in Blockchain Development with over 4 years working experience in the industry as a blockchain Developer and a Senior Software Engineer with a focus in designing and implementing Scalable and Highly Available integrated solutions. Proficient in Hyperledger Fabric, Ethereum, Quorum, Python, ReactJS, Docker, RESTful API design, Back-End Development and Web/Blockchain integrations.

  • Suleiman holds an IDITC from Informatics Academy and a Nano-Degree in Front-End Development.

  • Al-Mustapha holds an IDIC from Informatics Academy and a Nano-Degree in UX/UI Design.

  • Khadija has a Bachelor's degree in Sociology from Al-Qalam University. She is the co-founder of Slixon Technologies.

  • Bashir A. Galadanci is the Founder of Obelisk Integrated Services, he is our Director and Stakeholder, he has over 30 years of Banking experience and Corporate Relations operations. He is proficient in Enterprise Banking and Finance. He was former Head Registrar and Operations manager at Unity Bank He is an Entrepreneur and professional Architect as well as a professional banker.

  • Bashir Adamu ,CA is a Chartered Accountant, he is our Director and Stakeholder, he has over 30 years of Accounting & Banking experience. He is proficient in Accounting and Finance. He holds a Degree in Accounting and Finance. He is an Entrepreneur, former Principal Manager at Unity Bank - responsible for Planning, prioritizing and overseeing project management activities in an effective manner, preparing budgets, determine timelines, and identify resources. Understands customer requirements clearly and develops Financial & Accounting project plans, scope and deliverables.

  • Dr. Rislanudeen Muhammad, PhD, is our informal Advisor, so he is not on our board but He is pleased to help with informal Advices. He is a Harvard Business School Alumni with over 30 years of Economics and Banking experience. He was Executive Director then CEO/Managing Director of Unity Bank. He is an Entrepreneur and has been adorned with many awards. He has also been featured in some of the most prestegious magazines and TV channels including Bloomberg, Economic Confidential, et al. He was nominated for the position of the Governor of The Central Bank of Nigeria.

Team Code Repos

Team LinkedIn Profiles

Development Roadmap 🔩

The Setheum Network Milestone 1 will be a 6 week project, aims to deliver a running MVP Substrate chain testnet providing algorithmically elastic stablecoins - the STP258 Sett tokens. Upon the testnet launch, we will implement a basic version of its economic model and work towards a Canary Network Launch and an Initial Parachain Offering of the Canary network on Kusama. And then work towards launching the Mainnet with all of the future plans we provided above and move towards an Initial Parachain Offering (IPO) of the Mainnet of Setheum network, participation in the IPO auction will depend upon the readiness of the Polkadot network.

Overview

  • Total Estimated Duration: 6 Weeks
  • Full-time equivalent (FTE): 1.5
  • Total Costs: 0.9 BTC

Milestone 1 - The SERP Modules

  • Estimated Duration: 6 Weeks
  • FTE: 1.5
  • Costs: 0.9 BTC
NumberDeliverableSpecification
0a.LicenseApache 2.0
0b.Testing GuideThe code will have proper unit-test coverage (e.g. 90%) to ensure functionality and robustness. In the guide we will describe how to run these tests
1.Substrate module: stp258 (0.3 BTC - 2 weeks)We will Implement The STP258 (Setheum Tokenization Protocol to-fiat Module) Stablecoin Standard Module - 34 fiat currencies that can be spent on SettPay and are also represented in a basket token. The stp258 module will fetch the prices of the fiat pegs of the stp258 tokens / sett tokens and create stablecoins that are pegged to those fiat currencies and back the supply of the currencies by the serp_tes. The module will have a basket_token that will be pegged to a number of currencies. We will implement a sett_swap module that will utilize the stp258 to offer atomic swap between stp258 tokens.
2.Substrate module: serp_tes (0.3 BTC - 2 weeks)We will Implement The SERP (Setheum Elastic Reserve Protocol) Token Elasticity Module: Designed to make cryptocurrencies that are backed by other cryptocurrencies with the PES (Price Elasticity of Supply) algorithm utilized for token elasticity of supply (TES) algorithm. The serp_tes module will bring the serp modules together to interact. It will compute the contraction and supply of DNAR-SETT, trade with the serp_market, mint and burn DNAR_SETT to and from the serp_market and the settpay_serp. There are 2 scenarios where the serp_tes comes into play, the contraction of DNAR-SETT, and the supply of DNAR-SETT. There are two scenarios that deal with both the contraction and the supply of DNAR-SETT, what happens when SETT dumps / bearish, and what happens when SETT pumps / bullish. When SETT pumps, the serp_tes does this: price_cp is the price of the SETT compared to the peg and neg_sett is returned when SETT is negative against the peg, and change_in_price is the change in price of SETT then for elast, if stable_price < peg_price, then execute sett_mint, else if stable_price > peg_price, then dinar_mint, return elast. elast is p2 - p1, p2 is the current price while p1 is the previous price in a given amount of time, lets say 6 seconds - the blocktime. The serp_tes does the same during contraction but in the opposite direction.
3.Substrate module: serp_market (0.3 BTC - 2 weeks)We will Implement The SERP (Setheum Elastic Reserve Protocol) Token Elasticity Market Module: Designed to make contraction and supply with the validators. During SETT contraction, the serp_tes mints DNAR to the serp_market to buy back SETT from the sett_stake in return for DNAR to be staked for the validators, the SETT is then bought more valuable than it's market price, the buying_price is set through this: buying_price = (market_price + (mint_rate * 2)); so the buying price is the market_price of the SETT plus twice the percentage of DNAR minted, which is the change in price of SETT. So, if the market_price of SETT is $2.0 USD and the mint_rate is 10%, meaning 10% of SETT price needs to be raised back to the peg, then the serp_market buys back SETT from the validators at the price of $2.44 USD with DNAR, then staking_rewards reduce in proportion to the newly minted DNAR, in the case of our example the staking_rewards are contracted not by 20% of the staking rewards but by the staking_reward percentage - (mint_rate x2) which is - 0.44, therefore the new_staking_reward should be 29.56. And if you calculate it, when a nominator stakes $100 worth of DNAR then they get $15 of DNAR rewards and during dinar_mint they get more DNAR without losing staking_rewards, because the staking_rewards increase when sett_mint and decrease when dinar_mint. And the trades with serp_market buys from the validators with more value than the market_price. Later in the future we will let the validators get jSETT as a liquid incentive to stake more SETT for the serp_market to trade with, that also increases the price of SETT, which in turn increases minting which in turn increases discounts in SettPay and DNAR buyback from the validators which in turn still increases the price of both DNAR and SETT.

Community engagement

As part of the Program, we will produce an article/tutorial and publish it (for example on our Medium Publication). It should explain our work done as part of the grant. We will publish multiple articles after the completion of different deliverables.

Future Plans

Please include the team's long-term plans and intentions.

  1. IPO in Kusama and Polkadot
  2. SettCard (Visa Cryptocurreny Card for distributing SETT rewards, discounts and cashbacks to be linked to SettPay)
  3. SettPay WordPress Plugin for WordPress e-commerce platforms
  4. SettPay Payment Gateway API
  5. Setheum SDKs for Integration and easy development on the Network
  6. SettInDEX Setheum Built-In Decentralized Exchange with Synthetic Assets, Liquidity Pools, Margin Trading, Dark Pool, Liquidity Staking, jtokens (another token protocol module I designed for Setheum's SettIndex to be launched before or at mainnet, spec description is present in our white papers)
  7. SettApps Scalable Dapp Chain for E-Commerce & DeFi dApps on the Setheum Network. The Setheum Relay will be tuned specifically for DeFi and DeCo.
  8. DS3 Foundation to foster the growth of the Setheum, Substrate, Ink! and Polkadot Ecosystem, especially in Nigeria and Saudi Arabia
  9. SEANET (Setheum Enterprise Alliance Network) for Enterprise Alliance to foster adoption amongstEnterprise E-Commerce Platforms (i.e. Macy's, Uber, Walmart, BigCommerce, WordPress, Shopify, Shoprite, Jumia, Fortnite, Slack, Atlassian, Salesforce, McDonalds, KFC, et al.) and invite small businesses and niche stores and even Universities to build on the Setheum Network and increase the value and adoption of the Entire Polkadot & Substrate Ecosystem as We will promote development with ink! and Substrate and many advanced, niche and beautiful FRAME modules will be built for various use cases, thus propping the adoption of Rust too..
  10. SAGA (Setheum Association of Government Alliances) Just like SEANET but for Public Bodies, NGOs, Universities & Governments starting with Government Departments we already work with and those we worked with in Nigeria, to support them to build on the Setheum Network and increase the value and adoption of the Entire Polkadot & Substrate Ecosystem as We will promote development with ink! and Substrate and many advanced, niche and beautiful FRAME modules will be built for various use cases, thus propping the adoption of Rust too..
  11. Cross-Chain Swap with Ethereum, EOS, Stellar, Tezos and Cosmos.

Additional Information ➕

We are planning to be the gateway to Polkadot in Africa and the Middle East (especially Nigeria, Ghana, Saudi Arabia and the UAE) with ecosystem growth and development strategies that we are planning to apply and foster the adoption on the Web3 Ecosystem. Our plan includes a Blockchain Development Incubation Hub and our Ecosystem Fund. We are planning to be Polkadot's embassy in Africa and the Middle East.

Possible additional information to include:

  • What work has been done so far? We have designed, drafted and published the white papers with technical insight and spec. I designd, drafted and published the White Pagers of Setheum and even of the Future Plans we have for Setheum, like Synthetic Assets, margin trading, money market, liquidity staking et al here
  • Are there are any teams who have already contributed (financially) to the project? No, so far we are fully self-funded
  • Have you applied for other grants so far? No, we have not applied for any other grants so far, but we have applied to the Substrate Builders Program We are providing the Entire Project under the Apache 2.0 license.