Skip to main content

Constitution

· 3 min read

Preamble​

In our pursuit of justice, knowledge, and innovation, we establish this Constitution to govern the operations and ethos of the Fxyz Network.

Article I: Fundamental Principles​

  1. Justice Over Anything (Veritas - Adl): Justice is the bedrock of our network, guiding all decisions and actions.
  2. Reasoning and Knowledge: Our operations are grounded in robust reasoning and a comprehensive knowledge base, fostering the evolution of knowledge into wisdom.

Article II: Governance and Management​

  1. Decentralized Autonomous Organization (DAO): Governance is executed through a DAO, ensuring transparent and democratic decision-making.
  2. Holacracy: Management is structured in a holacratic system to distribute authority, promoting flexibility and resilience.

Article III: Operations and Security​

  1. Operational Efficiency: We commit to streamlining complex systems for enhanced accessibility and efficiency.
  2. Technological Advancement: We leverage blockchain, AI, digital currencies, and knowledge graphs to bolster security and operational capabilities.
  3. Privacy and Security: We uphold the highest standards of data encryption and anonymity, adhering to global privacy regulations.

Article IV: Economic and Financial Principles​

  1. Financial Innovation and Integrity: We support financial innovation, seamless value transfer, and uphold the highest standards of transaction integrity.
  2. Economic Model: Our economic activities are value-driven, based on transparent and fair market principles.
  3. Fund Management: We ensure dynamic and responsible fund management to maintain liquidity and financial autonomy.

Article V: Community and Culture​

  1. Community Engagement and Contribution: We value and reward contributions that drive network growth and foster a collaborative culture.
  2. Member-Centric Policies: We prioritize member privacy, autonomy, and active participation, ensuring a member-centric approach.

Article VI: Innovation and Infrastructure​

  1. Dynamic Infrastructure: We maintain a robust infrastructure supported by smart contracts to ensure trust and operational efficiency.
  2. Innovative Solutions: We commit to continuous technological innovation, including instant settlement solutions and comprehensive knowledge hubs.

Article VII: Research and Development​

  1. Interdisciplinary Collaboration: We promote free discussion and interdisciplinary research, blending human, machine, and natural intelligences for innovative solutions.
  2. Continuous Learning and Adaptation: We advocate for continuous improvement and learning, adapting our technologies, policies, and practices to the evolving global landscape.

Article VIII: Additional Provisions​

  1. Integrity and Automation in Contracts: We ensure the integrity and automation of contract terms for reliability and predictability.
  2. Diverse Support and Inclusion: We support a broad array of digital currencies and diverse participation, ensuring inclusivity and versatility in transactions.

Article IX: Membership​

  1. Membership Validation and Contribution: Membership requires validation, with diverse ways to contribute and participate, ensuring a dynamic and accountable community.

Article X: General Provisions​

  1. Deterministic Operations: We ensure predictable and reliable network behavior, maintaining a balance between deterministic operations and the allowance for evolutionary dynamics.
  2. Circles of Interest: We allow circles within the network to pursue their own interests, provided they align with the overall goals of the network.

Whitepaper Draft

· 17 min read

Financial Network based on Digital Currencies and Digital Identities

Abstract​

In a world interconnected by data, complex systems form intricate networks. To comprehend these networks, we must delineate their architecture, transforming the chaos of vast data and networks into structured, comprehensible models.

Networks can be categorized into:

  • Physical (natural)
  • Digital (relational)

Money, a human construct, often reflects natural systems, as humans are also part of the natural world. In nature, networks facilitate communication and adhere to specific rules and functions. Examples include:

  • Financial networks
  • Social networks
  • Quantum networks (involving photons)
  • Mycelial networks

Finance is often represented through graph functions, where graphs depict networks and their characteristics, influenced by underlying rules integral to or affecting the network.

By examining the flow and protocols governing these networks, we can unlock numerous possibilities.

Summary Points​

  • The advent of digital currencies and identities heralds a transformative era for the financial sector, breaking traditional barriers. The ƒxyz network aims to simplify complex financial networks, enhancing the efficiency of value transfer, exchange, and creation. Utilizing digital currencies and identities fosters a more efficient, secure, and transparent financial ecosystem for all participants.
  • Interconnectivity and data ubiquity mean that connections, whether direct or through a network member, facilitate knowledge and value transfer.
  • We prioritize the security of our members/nodes by advocating for off-chain asset storage through Cube exchange and promoting cautious interaction with the financial world, digital or otherwise.
  • Our network's integration with both permissioned and permissionless networks enhances our access to diverse markets.
  • Natural networks, though operating in distinct clusters with unique missions, contribute holistically to the system.
  • Contributing to our community significantly benefits us.
  • We aim to synchronize the digital and traditional financial worlds using standards like the FIBO ontology.
  • Recognizing humans as legal entities with multiple personas, including online identities, underscores the necessity for digital capabilities like memory, reasoning, and value.
  • Our value network ensures data encryption to a degree that only authorized individuals can access it.

Questions​

What​

  • Simplifying Complex Financial Networks
  • Enhancing value transfer, exchange, and creation

Why​

The financial realm's complexity often obscures the underlying value flow, making it inefficient. By stripping away this complexity and identifying patterns, we can enhance system/network efficiency, given the interconnected nature of all components.

Currencies, representing primary value, are predominantly traded over-the-counter, which obscures transparency and elevates access barriers, allowing layers of secrecy that empower the knowledgeable at the expense of the less informed.

How​

  • Leveraging Collective Human-Machine Intelligence
  • Utilizing Blockchain Networks
  • Implementing Digital Currencies
  • Employing Knowledge Graphs
  • Developing Distributed Compute Networks
  • Managing Informal and Formal Value Transfer and Exchange Networks
  • Operating Decentralized Autonomous Organizations
  • Applying Holacracy Management
  • Integrating Machine Learning and Artificial Intelligence (NLP, GNN, GCN)

Why Now​

The rapidly evolving landscape necessitates timely adaptation to prevent spillover effects.

What We DON'T Do:​

  • Retain user funds or data without explicit agreement via digital or physical contracts
  • Engage in profitless activities or connected reward schemes
  • Participate in uncertain or risky trades
  • Risk more than transaction fees or currency depreciation

What We DO:​

  • Obscure all received data and employ research anonymization tools
  • Implement risk-free trading algorithms
  • Manage collective funds to facilitate earning, transferring, and exchanging money
  • Uphold anonymity while respecting legal boundaries
  • Conduct anti-money laundering (AML) and fraud detection
  • Operate autonomous groups tasked with specific functions
  • Share open-source logic and code with our community and affiliates

What's Next​

  • Expand our membership, user base, legal entities, and liquidity
  • Initiate onboarding through Telegram
  • Establish the Genesis Circle (Main DAO formation) and subsequent DAOs
  • Provide a knowledge base via multiple interfaces (chatbot, dashboards)
  • Develop functions for transfers, exchanges, and creation
  • Raise funds for machine and human agents
  • Cover development costs
  • Create applications (Arbitrage calculator, market overview, data dashboard)
  • Map all blockchains and financial entities
  • Forge partnerships across various sectors
  • Connect with major stablecoin firms (at least 4-5)
  • Transition to graph databases, AI backend, vector databases, etc.
  • Prepare for the quantum computing era

DAOs & Holocracy​

Holocracy offers a decentralized management framework that eliminates traditional hierarchical structures, fostering clear roles, expectations, and boundaries while ensuring alignment. DAOs (Decentralized Autonomous Organizations) automate governance through voting mechanisms but sometimes lack the human judgment essential for certain decisions. Integrating Holocracy with DAOs combines human insight with automated efficiency, creating a dynamic governance model that leverages the strengths of both systems.

This hybrid model is ideal for organizations seeking the benefits of decentralized governance and efficient management. It merges Holocracy's decentralized authority structure, which empowers individuals within defined roles, with the automation and scalability of DAOs.

By integrating Holocracy and DAOs, we create a robust framework that addresses the limitations of each system while capitalizing on their strengths, aiming for decentralized community governance and effective centralized management.

Members​

Members are anonymized and linked to wallets, emails, and other identification systems, maintaining varying levels of privacy:

  • Public figure
  • Anonymous
  • Pseudonymous
  • Private

"Identities can be disclosed programmatically (under predefined conditions) or manually upon initiating contact."

Circles​

Our network comprises various circles—closed networks of people, groups, and companies sharing information and resources. Governance within these circles can be through sub-DAOs or traditional methods, with access to internal data requiring connection to a circle member or formal membership, such as through NFTs or tokenized contracts.

Roles​

  • [List specific roles here]
  • Skills
  • Connections
  • Etc.

Partners​

"Wherever we aim to go, someone is already there waiting for us."

Technology Partners​

  • Solana - Application layer
  • Ethereum + Bitcoin
  • Cube - Settlement, vault, and more
  • Openbb - Data toolstack for data collection, transformation, analysis, and presentation
  • Telegram - Communication and application entry layer, TON blockchain integration, Telegram anon # integration

Business Partners​

Partnerships are essential for various operational aspects, such as:

  • Direct stablecoin purchasing
  • Smooth banking operations
  • Technical issue resolution
  • Quick response times
  • Competitive quotes
  • Etc.

Security, Privacy & Anonymity​

We prioritize privacy and security while maintaining trust through technology verification.

Digital currency holders, whether dealing with cryptocurrencies, stablecoins, or CBDCs, have undergone some form of verification, placing them in a potentially risky position.

Our approach is to maintain pseudonymity, offering a balance where certain entities, organizations, or internal sub-DAO members can verify identities and funds without accessing all private data.

For enhanced privacy and anonymity, we plan to integrate with various zk protocols and technologies, alongside:

  • AML functions
  • Anti-fraud functions
  • Extensive KYC checks
  • Transparency for members

Multi-level Encryption​

  • Anonymous
  • Pseudonymous
  • Public

Financial Cryptography​

"Don't trust, verify."

  • Employ dynamic hashing algorithms for privacy, anonymity, and pseudonymity, incorporating Solana's Proof of History in our encryption methods.
  • Utilize Multi-Party Computation
  • Implement additional privacy layers

Financial Cartography​

We map everything using graph-based tools, allowing for queries, visualizations, and interactions.

Patterns​

Patterns are omnipresent; we need to identify them. A minimum node count is required for patterns to emerge (Ramsey number). Our goal is to transition from mazes to structured trees in our pattern analysis.

Value Domain (Layer)​

  1. Digital currencies:
  2. Stablecoins
  3. CBDCs
  4. Cryptocurrencies
  5. Digital Assets
  6. Tokenized Commodities
  7. Tokenized Real-World Assets
  8. Digital Financial Assets

Social Domain (Layer)​

  • HumanBeing -> LegalPerson -> OnlineID -> Persona -> Member, Partner, User, etc.
  • Trust, guidance, and intelligence are crucial, hence the need to preserve anonymity while allowing trust in something tangible.
  • Humans possess online identities, referred to as Personas.

Tech Domain (Layer)​

Our system evolves with each iteration, improving as different paths are explored.

The ever-updating graph incorporates new knowledge and human guidance.

News is evaluated, processed, and integrated into our updated graphs.

Data Domain (Layers) - Transfer, Exchange, and Creation​

  • Data is a valuable asset.
  • Everything is characterized by data.
  • Attributes/properties: volume, variety, complexity
  • Data about users, members, products, partners - master data - core data
  • Tagged data - metadata

Comms Domain (Layer)​

  • Telegram
  • Tether

Physical Real-world Layer​

  • Humans
  • Machines
  • Energy

Science Domain (Layer)​

Network Applications

This section highlights the essential applications supporting the network's infrastructure, developed and maintained by a team of domain experts, liquidity providers, developers, and the DAO. These applications, while not always directly visible to users, are crucial for the network's seamless operation.

Infrastructure and Core Technologies​

  • Onchain E-spot FX: Execution of on-chain foreign exchange spot transactions.
  • Exchange: Platform for currency and asset exchanges.
  • Communications Network: Secure and efficient communication channels.
  • Security: Robust security measures to protect the network.
  • Payment Infrastructure: Backend systems for electronic payments.
  • Remittance Infrastructure: Mechanisms for cross-border money transfers.
  • OnOfframp Network: Interfaces for digital-to-fiat currency conversion.

Data and Analytics Tools​

  • Data Analytics: In-depth analytics and insights on digital currencies.
  • AI Bot: AI-driven assistance for data analysis and automation.
  • Sanction Check: Compliance tools for regulatory standards.

Optimization and Strategy Features​

  • Algorithms: Optimal path-finding algorithms for currency transfers.
  • Currency Transfer Optimization: Enhanced transfer mechanisms.
  • Arbitrage: Tools for statistical and triangular arbitrage strategies.

Mapping and Navigation​

  • Maps: Graph-based financial navigation tools.

User Facing Products​

User-facing products provide intuitive interfaces for end-users, abstracting the complexity of the network's backend systems.

Transaction and Exchange Interfaces​

  • Retail FX: Interfaces for retail foreign exchange and currency swaps.
  • Transfer Services: Platforms for domestic and international fund transfers.
  • On/Off Ramp Services: Gateways for digital currency adoption and liquidation.

Liquidity and Wealth Management​

  • Intelligent Liquidity Management Tools: Applications for managing and optimizing liquidity resources.

Compliance and Security Services​

  • AML/KYC Checks and Fraud/Crime Detection: Compliance and security systems for transaction monitoring and fraud prevention.

Remittance and Payment Solutions​

  • Remittance Agencies: Services for sending money across borders.
  • Payment Enterprises: Comprehensive systems for processing various payment transactions.

Timeline - Roadmap​

Initially, startups often spend years in research. Although our goal was early profitability without relying on token sales, we faced challenges but gained valuable insights. Now, we are fully prepared to implement our strategies on a larger scale.

  • We have established data connections and specific protocol integrations.
  • Our blockchain connections are finely tuned.
  • We have tested various trading strategies based on scientific research.

The forthcoming developments are clear, and we have built a robust knowledge and network foundation. We believe we have reached the necessary node count for effectiveness, allowing us to expand across multiple dimensions and layers by collectively analyzing multiple variables and their outcomes, always aiming to benefit the network as a whole. Various individual elements contribute to this goal, but the overarching objective is to act as a unified entity: sharing wealth and knowledge and evolving based on continuous learning.

Accounting/Bookkeeping​

Challenges​

  • Regulatory and liquidity challenges are addressed by network members in various countries, akin to a blend of the banking system, hawala network, and cryptocurrencies. By holding money both digitally (across multiple blockchains) and physically (in various countries), and ensuring each entity's legal compliance, we can bypass comprehensive network-wide compliance, allowing the network to function as a digital organism.

Tokenomics​

  • The project is not centered on any single individual, hence token allocation is minimal and spread over a long-term perspective.
  • Anchor Circle (main team): 10% - 10-year vesting (1% per year)
  • Operations Circle: 10%
  • Early Contributors: 10%
  • Partners, advisors, etc.: 10%
  • Seed Circle (first investment round): 10%
  • DAO: 50% - Distributed among users, liquidity providers, community members, developers, and partners through the DAO for management and organizational purposes.

Investment​

  • Friends and Family: 5% @ $5MM+
  • Private: 5% @ $10MM+
  • Strategic Seed: 10% @ $20MM - $25MM

Costs​

  • The majority of costs are allocated to a boutique team (5-7 people, $5-10K USD/month per person) and expenses related to hardware, software, and AI, including calculations, graph databases, etc.
  • Minimal marketing expenses
  • No listing fees
  • No short-term profit from token sales

Data equals money – data is money.

Fxyz Network: A Living Document

Documents​

  • Advanced localization, including user experience customization

Ontology​

  • FIBO ontology serves as the foundation
  • Formalizes data, making it machine-readable
  • Standardizes data across the network
  • Graph Schema includes OWL and RDF

References​

  1. Adams, Austin, Mary-Catherine Lader, Gordon Liao, David Puth, and Xin Wan. 2023. “On-Chain Foreign Exchange and Cross-Border Payments.” https://doi.org/10.2139/ssrn.4328948.
  2. Altuner, Dogan, Saban Çelik, and Tuna Can Güleç. 2015. “The Linkages among Intellectual Capital, Corporate Governance and Corporate Social Responsibility.” Corporate Governance 15 (4): 491–507.
  3. Ante, Lennart. 2021. “Smart Contracts on the Blockchain – A Bibliometric Analysis and Review.” Telematics and Informatics 57 (101519): 101519.
  4. Ante, Lennart, Ingo Fiedler, Jan Marius Willruth, and Fred Steinmetz. n.d. “A Systematic Literature Review of Empirical Research on Stablecoins.” https://doi.org/10.3390/fintech2010003.
  5. Auer, Raphael, and Rainer Boehme. 2020. “The Technology of Retail Central Bank Digital Currency,” March. https://www.bis.org/publ/qtrpdf/r\_qt2003j.htm.
  6. Balcilar, Mehmet, Huseyin Ozdemir, and Busra Agan. 2022. “Effects of COVID-19 on Cryptocurrency and Emerging Market Connectedness: Empirical Evidence from Quantile, Frequency, and Lasso Networks.” Physica A: Statistical Mechanics and Its Applications 604 (October): 127885.
  7. Behrouz, Ali, and Margo Seltzer. 2022. “Anomaly Detection in Multiplex Dynamic Networks: From Blockchain Security to Brain Disease Prediction.” http://dx.doi.org/.
  8. Bender, Fernando A. 2020. “Triangular Arbitrage, a Proposed Algorithm.” unknown. http://dx.doi.org/.
  9. Board of Governors of the Federal Reserve System. 2022. “Money and Payments: The U.S. Dollar in the Age of Digital Transformation.”
  10. Boonpeam, Naratorn, Warodom Werapun, Tanakorn Karode, and Esther Sangiamkul. n.d. “The Automated Equity-Split Cryptocurrency Arbitrage Strategy.”
  11. Bowman, Anthony. n.d. “Exploring Relationships among Crude Oil, Bitcoin, and Carbon Dioxide Emissions: Quantile Mediation Analysis.” https://doi.org/10.3390/pr11051555.
  12. Byrne, Stephen. n.d. “An Exploration of Novel Trading and Arbitrage Methods within Decentralised Finance.” School of Computer Science and Statistics O’Reilly Institute,. https://www.scss.tcd.ie/Donal.OMahony/bfg/202021/StephenByrneDissertation.pdf.
  13. Caliskan, Koray. 2020. “Platform Works as Stack Economization: Cryptocurrency Markets and Exchanges in Perspective.” Sociologica 14 (3): 115–42.
  14. ———. 2022. “Data Money Makers: An Ethnographic Analysis of a Global Cryptocurrency Community.” The British Journal of Sociology 73 (1): 168–87.
  15. Castrén, Olli, Ilja Kristian Kavonius, and Michela Rancan. 2022. “Digital Currencies in Financial Networks.” Journal of Financial Stability 60 (June): 101000.
  16. Elsayed, Ahmed H., and Ricardo M. Sousa. n.d. “International Monetary Policy and Cryptocurrency Markets: Dynamic and Spillover Effects.” The European Journal of Finance, 1–21.
  17. Grobys, Klaus, Juha Junttila, James W. Kolari, and Niranjan Sapkota. 2021. “On the Stability of Stablecoins.” Journal of Empirical Finance 64 (December): 207–23.
  18. Guo, Li, Wolfgang Karl Härdle, and Yubo Tao. 2022. “A Time-Varying Network for Cryptocurrencies.” Journal of Business & Economic Statistics: A Publication of the American Statistical Association, December, 1–20.
  19. Holden, Craig W., Dong Lu, Volodymyr Lugovskyy, and Daniela Puzzello. 2021. “What Is the Impact of Introducing a Parallel OTC Market? Theory and Evidence from the Chinese Interbank FX Market.” Journal of Financial Economics 140 (1): 270–91.
  20. Hu, Daning, Gerhard Schwabe, and Xiao Li. 2015. “Systemic Risk Management and Investment Analysis with Financial Network Analytics: Research Opportunities and Challenges.” Financial Innovation 1 (1): 1–9.
  21. Huang, Wenqian, Angelo Ranaldo, Andreas Schrimpf, and Fabricius Somogyi. 2023. “Constrained Liquidity Provision in Currency Markets.” BIS, Monetary and Economic Department, February. https://www.bis.org/publ/work1073.htm.
  22. International Monetary Fund. 2021. Global Financial Stability Report, October 2021: COVID-19, Crypto, and Climate: Navigating Challenging Transitions. Global Financial Stability Report. Washington, D.C., DC: International Monetary Fund.
  23. International Monetary Fund. Monetary, and Capital Markets Department. n.d. “Chapter 2 The Crypto Ecosystem and Financial Stability Challenges.” In Global Financial Stability Report, October 2021. International Monetary Fund. Accessed January 19, 2024.
  24. Jesús Barrasa and Jim Webber, Neo4j. n.d. Building Knowledge Graphs A Practitioner’s Guide. O’Reilly.
  25. Kabašinskas, Audrius, and Kristina Šutienė. 2021. “Key Roles of Crypto-Exchanges in Generating Arbitrage Opportunities.” Entropy 23 (4). https://doi.org/10.3390/e23040455.
  26. Korbel, Jan, Xiongfei Jiang, and Bo Zheng. 2019. “Transfer Entropy between Communities in Complex Financial Networks.” Entropy 21 (11): 1124.
  27. Li, Shanshen, and Xin Jing. 2020. “Intelligent Digital Currency and Dynamic Coding Service System Based on Internet of Things Technology.” Complexity 2020 (December). https://doi.org/10.1155/2020/6647039.
  28. M., Valeri, Fondacaro R., De Angelis C., and A. , Barella,Turin University. n.d. “The Use of Cryptocurrencies for Hawala in the Islamic Finance.” EJIF – European Journal of Islamic Finance. EJIF – European Journal of Islamic Finance Second Special Issue for EJIF Workshop http://www.ojs.unito.it/index.php/EJIF.
  29. Ma, Yiming, Yao Zeng, and Anthony Lee Zhang. 2023. “Stablecoin Runs and the Centralization of Arbitrage.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4398546.
  30. Makarov, Igor, and Antoinette Schoar. 2018. “Trading and Arbitrage in Cryptocurrency Markets.” SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3171204.
  31. Mc Leay, Michael, and Amar Radia. n.d. “Money in the Modern Economy: An Introduction.”
  32. Mikhalev, Igor, and Igor Struchkov. 2021. “CBDC Tracker.” 2021. https://cbdctracker.org/cbdc-tracker-whitepaper.pdf.
  33. Mosca, Michele, and Douglas Stebila. 2009. “Quantum Coins.” arXiv [quant-Ph]. arXiv. http://arxiv.org/abs/0911.1295.
  34. Packer, Charles, Vivian Fang, Shishir G. Patil, Kevin Lin, Sarah Wooders, and Joseph E. Gonzalez. 2023. “MemGPT: Towards LLMs as Operating Systems.” arXiv [cs.AI]. arXiv. http://arxiv.org/abs/2310.08560.
  35. Park, Sejung, and Han Woo Park. 2020. “Diffusion of Cryptocurrencies: Web Traffic and Social Network Attributes as Indicators of Cryptocurrency Performance.” Quality & Quantity 54 (1): 297–314.
  36. Pernice, Ingolf Gunnar Anton. 2021. “On Stablecoin Price Processes and Arbitrage.” In Financial Cryptography and Data Security. FC 2021 International Workshops, 124–35. Springer Berlin Heidelberg.
  37. Reynolds, Julia, Leopold Sögner, and Martin Wagner. 2021. “Deviations from Triangular Arbitrage Parity in Foreign Exchange and Bitcoin Markets.” Central European Journal of Economic Modelling and Econometrics, no. 2.
  38. Rio-Chanona, R. Maria del, Yevgeniya Korniyenko, Manasa Patnam, and Mason A. Porter. 2020. “The Multiplex Nature of Global Financial Contagions.” Applied Network Science 5 (1): 1–23.
  39. Robertson, Brian. 2022. “Integrating DAOs & Holacracy for Organizational Governance.” HolacracyOne Blog. May 23, 2022. https://blog.holacracy.org/integrating-daos-holacracy-for-organizational-governance-cf85ada35b74.
  40. Robinson, Sanghyun Bai Fred. n.d. “Automated Triangular Arbitrage: A Trading Algorithm for Foreign Exchange on a Cryptocurrency Market.” KTH ROYAL INSTITUTE OF TECHNOLOGY ELECTRICAL ENGINEERING AND COMPUTER SCIENCE.
  41. Shi, Qing, and Xiaoqi Sun. 2020. “A Scientometric Review of Digital Currency and Electronic Payment Research: A Network Perspective.” Complexity 2020 (November). https://doi.org/10.1155/2020/8876017.
  42. Simone Giansante (1), Segun Bewaji (2) And Alexander Vronces. n.d. “De-Tiering Large Value Payment Systems: The Case of the Canadian LVTS.” Payments Canada.
  43. “The Use of High-Frequency Data in Cryptocurrency Research: A Meta- Review of Literature with Bibliometric Analysis.”
  44. Uehara, Ryuhei, and Yushi Uno. 2005. “Efficient Algorithms for the Longest Path Problem.” In Algorithms and Computation, 871–83. Springer Berlin Heidelberg.
  45. Van der loerd, Oluwasegun Bewaji Sania Hamid Timothy Aerts Shaun Byck Ronald Heijmans Ellen. n.d. “Are Crypto Currencies Cryptic or a Source for Arbitrage? A Genetic Algorithm Approach.” Payments Canada, De Nederlandsche Bank. Accessed July 27, 2021. https://www.payments.ca/sites/default/files/paymentscanada\_discussionpaper\_cryptocurrencyarbitrageusinggeneticalgorithms.pdf.
  46. Vi̇sconti̇, Roberto Moro. 2022. “From Physical Reality to the Metaverse: A Multilayer Network Valuation.” Journal of Metaverse 2 (1): 16–22.
  47. Wang, Ye, Yan Chen, Haotian Wu, Liyi Zhou, Shuiguang Deng, and Roger Wattenhofer. 2021. “Cyclic Arbitrage in Decentralized Exchanges.”
  48. Zhang, Yi, Long Zhou, Yuxue Li, and Fang Liu. 2023. “Higher-Order Moment Nexus between the US Dollar, Crude Oil, Gold, and Bitcoin.” The North American Journal of Economics and Finance 68 (September): 101998.

Philosophy

· 4 min read

Philosophy of Fxyz​

At Fxyz, we are driven by the omnipresence of data, akin to light, which is crucial in shaping our understanding of the universe. We view data as a vital asset, mirroring the real-time synchronization observed in nature. Inspired by architectures like Solana, which promote universal synchronization, our goal is to simplify the complexities of decentralized technologies, creating an intuitive, user-friendly platform.

Our philosophy is rooted in the idea that growth comes from sharing knowledge—"You have to give in order to grow." This belief motivates us to bridge knowledge gaps and foster a balanced ecosystem. We understand that these gaps can lead to disorder, yet from this disorder, new order and opportunities for innovation arise, propelling the evolution of our network.

Embracing a Holistic Approach​

We adopt a holistic view, acknowledging the interconnectedness of all elements—from the algorithms that power our platform to the extensive networks that unite us. This perspective allows us to integrate diverse data and insights from various fields, enhancing our platform's capability to innovate and adapt.

Simplifying Complex Networks​

Fxyz is dedicated to demystifying the complexity of networks. We build on existing networks to develop a cohesive multilayer network that incorporates multiple multiplex networks. This structure ensures efficient management of data flow and protocol governance, facilitating seamless interaction across different network layers.

Our approach enables a dynamic exchange of information and value, positioning Fxyz as a leader in digital finance and as a pioneer in bridging the digital with the physical world.

Benefits for All​

  • We offer certain services for free, balanced by token compensation.

Network Design and Interaction​

We envision networks as layers upon layers, interconnected yet distinct. Our design includes multilayered networks like blockchains, which operate without hierarchical constraints, and multiplex networks (Layer 2 solutions), where each node remains consistent across all networks, though the connections and functionalities may vary.

We utilize the Financial Industry Business Ontology (FIBO), tailored to meet the needs of digital finance, to categorize and manage these networks effectively.

By gathering data, we build a strong foundation for understanding different perspectives. These perspectives are found across various fields, from biology to computers, neuroscience, and finance. We can draw inspiration from them in almost any ecosystem.

Exploring the Complex World of Multilayered and Multiplex Networks​

Picture a network within a network. Blockchains are built on top of the internet and physical hardware networks. We can create a universal multilayer network with multiple multiplex networks. To do this, we must consider the flow and protocols governing that flow, ensuring smooth connections between different layers and transitions between them.

For instance, blockchains are multilayered networks with parallel layering and no hierarchy, and Layer 2 solutions (L2s) are multiplex networks. In L2s, each wallet (node) is the same across all networks, but the connections (transactions) and other fundamental aspects differ.

For categorization purposes, we use the Financial Industry Business Ontology (FIBO) with customizations to fit digital finance.

It all depends on the perspective:

  • From a legal standpoint, it's a complex mess with multiple governing bodies discussing in old-school format.
  • Blockchains are usually mapped with graphs, as they are easier to access and follow their own rules and protocols.

We aim to apply the same approach to the physical/material/normal world, where the digital/quantum/blockchain world is constantly evolving. At least in the digital realm, there's a state when you observe it, and you can watch it all the time with enough resources and access, even if it's permissioned.

"If one node has access to any closed-source network, that access would immediately be broadcasted to other participants by sharing information and perhaps even using its value channel or connection to interact with the said system."

Chaos and Order​

Everything is both chaotic and ordered. Order brings chaos, and chaos generates new patterns. By applying this logic, we can change our perspective and even rely on machines to understand and process the data.

Story

· 5 min read

The ƒxyz Digital Currency Network Journey​

"If you don't rest upon the good foundation of nature, you will labor with little honor and less profit." - Leonardo da Vinci

Our mission was to simplify monetary transactions such as sending, paying, and earning, while also demystifying the workings of currency markets. We discovered the critical role of the over-the-counter (OTC) foreign exchange market, utilized by banks to manage and profit from foreign currency holdings.

Following Money in a Complex Financial World​

Understanding the movement of money in the intricate financial world was challenging. The over-the-counter foreign exchange market, with its immense daily transactions, was particularly complex and opaque. We gathered insights from periodic reports and broker discussions, focusing on derivative markets that required significant investment.

Additionally, informal transfer systems operated under the radar in various regions, facilitating cross-continental money movement without attracting much attention.

In places like China, despite unclear regulations on cryptocurrencies, peer-to-peer and over-the-counter trading continued. Meanwhile, other regions like Hong Kong and Dubai served as hubs for large-scale financial transactions. China was also advancing in its development of a digital currency managed by the central bank, setting the stage for future global integration.

The Rise of Digital Money: Cryptocurrencies, Stablecoins, and CBDCs​

The popularity of digital currencies was on the rise, beginning with Bitcoin. Cryptocurrencies such as Bitcoin, Ethereum, and Solana offered ease of use and diverse applications.

Governments developed their digital currencies known as Central Bank Digital Currencies (CBDCs), enhancing the trust and functionality of digital money, including stablecoins.

Stablecoins had gained traction as reliable means for value transfer, commonly used in trading and remittances. Despite risks associated with unsafe platforms and centralized issuers, efforts were underway to mitigate these concerns.

The financial ecosystem was layered with banks, payment apps, and digital currencies, each operating within its network. By analyzing these layers, we could uncover connections and better understand the system's workings.

Digital currencies offered advantages such as faster transactions and real-time calculations, aiding in activities such as money transfers, trading, and exchanges.

Understanding the system allowed us to address issues and create value, whether through value transfer or other beneficial activities.

Efforts to merge digital and traditional money into a unified system continued, although they currently operated within distinct networks.

Our goal was to generate revenue without excessive risk, utilizing both human and machine intelligence to enhance financial management. Through collaboration and information sharing, we could improve the financial system.

The Lagrange Initiative​

In the realm of FOREX trading on the Solana blockchain, powered by decentralized finance (DeFi), the introduction of Lagrange marked a significant milestone. Leveraging Solana's advanced technology, our objective was to tackle real-world challenges by creating a decentralized liquidity network similar to the FOREX Electronic Communication Network (ECN). This initiative encompassed:

  • Integrating liquidity providers from various blockchains.
  • Bridging traditional and crypto financial systems through centralized exchanges (CEX) and stablecoin enterprises.
  • Developing a decentralized exchange (DEX) with tools tailored for both digital currencies and the Forex market.

Concept of Lagrange Points​

Drawing inspiration from celestial mechanics, Lagrange points represented stable positions in space, governed by the gravitational forces among three celestial bodies. These points, crucial in solving the "Three-Body Problem," mirrored our approach in stabilizing financial markets using Solana's technology.

The Digital and Physical Realms of Forex​

Forex operated as the largest decentralized global financial market, facilitating currency trading electronically 24/5 through a vast network of banks. Despite its distributed nature, the market faced challenges such as non-operational weekends and a standard two-day settlement period influenced by bank holidays.

In contrast, blockchain technology decentralized control, shifting power from central authorities to users, thereby enhancing transparency and democratic engagement in financial operations. It supported:

  • Decentralized applications (dApps) functioning on blockchain or peer-to-peer networks.
  • Decentralized protocols enabling financial activities without central oversight.

Problem Solving with Solana​

Choosing Solana was strategic; it provided a high-speed, scalable blockchain network ideal for crafting decentralized applications and financial solutions, effectively addressing the blockchain trilemma of speed, security, and decentralization.

Lagrange's Solution-Oriented Approach​

Lagrange aimed to serve as an ECN for digital currencies, facilitating direct interactions within the crypto forex market through technologies like the Serum Onchain CLOB. Our goal was to foster a balanced, secure, and profitable trading environment. Additionally, we built the FIX (Financial Information Exchange) protocol, initially working with Serum. After the FTX/Serum collapse, we successfully rebuilt and integrated it with OpenBook, enhancing our platform's robustness and connectivity.

Interfaces and Tokenomics​

Lagrange featured interfaces including a DEX and a dApp, offering efficient trading tools and liquidity management. It planned to leverage various technologies to facilitate smooth currency exchanges and stabilize trading with fiat-backed stablecoins. We also developed various arbitrage algorithms to optimize trading strategies and enhance market efficiency.

The LAG token was designed to drive governance and rewards within the Lagrange ecosystem, encouraging user participation and liquidity provision through a DAO structure, thus influencing the platform's development and operational dynamics. Although the token was strategically planned, it was never launched.

Roadmap and Future Vision​

Lagrange's development phases were set to include:

  • Designing and launching core products.
  • Integrating key technologies.
  • Expanding operational capabilities to support diverse financial activities globally.

By harnessing blockchain technology and innovative financial tools, Lagrange aspired to bridge the gap between traditional and digital finance, creating a robust platform for secure and efficient global trading.