FairDapp – Bank Simulator

Warning:

FairDAPP – Bank Simulator (actually this probably has more resemblence of a government bond simulator but Bank is a more catchy name) is a system designed to explore how a real world financial bank would operate during a financial collapse without quantitative easing and bail outs. This system is simulated through open source smart contract codes and pre-defined rules. This contract may only be used internally for study purposes and all could be lost by sending anything to this contract address. All users are prohibited to interact with this contract if this contract is in conflict with user’s local regulations or laws.

“financial collapse 2008”的图片搜索结果

Background:

Inspired by the real world financial bank system and capitalism that has the ability to print infinite amount of FIAT currency, this project aims to simulate the operations of a bank where addresses can stake ETH to this contract for a fixed term and receive a potential reward on the staked ETH. Unfortunately, the contract is limited by the design of the Ethereum Virtual Machine(EVM)in several ways:

  1. The contract can not safely lend the staked ETH to other addresses and receive a desired return.
  2. The contract can not generate ETH out of thin air.
  3. Vitalik is unlikely to bail out the contract through hard forks.

Having said the above, the good news is that this contract and the EVM is coded perfectly to ensure (assuming there are no bug/s in the contract/EVM) that in the inevitable event of liquidation of the simulated Bank, all liabilities within will be paid in full in accordance to the EVM smart contract laws with no exceptions and involvement of external forces.

More so, it is also possible that this Bank Simulator contract is so perfectly designed that the simulated financial collapse may never occur, turning this contract into a massive unending ETH blackhole. Now, would this correctly describe the situation as the too big to fail scenario?

Potential Simulation Gameplays

  • Stake ETH for fixed returns – Early/Mid
  • Flip ownership cards – Early/Mid
  • Snipe for Jackpot – Mid/Late
  • Destroy other stakers – Mid/Late
  • Save your own stakes – Mid/Late
  • Spread the FUD – Always On
  • Destroy ETH – Always On

How it Works – Basics:

The system allows stakers to send ETH (stake order) to the contract using these three parameters:

  1. Amount of ETH
  2. Stake protection % (% of capital will be protected during a financial collapse)
  3. Duration of the staking (in units of stages)

The system will automatically calculate the amount of staked rewards at the maturity of the stake. Once a stake is initiated, only two scenarios can occur:

  1. If the staked amount matures before the liquidation of this Simulated Bank, then the staked order will be paid in full in accordance to the parameters at the time of the stake initiation.
  2. If the staked amount does not mature and the bank goes into liquidation, then the staked order will only be paid in accordance to their selected capital protection parameter at the time of the stake initiation.

How it Works – Advanced:

The system has a timer for each stage. A minimum ETH stake amount is required for each stage and when the timer runs out and the minimum stage target has not been met, then the Simulated Bank will go into a liquidation scenario where all staked ETH in previous stages would be liquidated in accordance to stakes’ selected stake protection parameter at the time of the stake initiation. Now this will not be so catastrophic for everyone, the stakes that were initiated in the stage of liquidation will share the remains of the jackpot in full.

The Jackpot  = Jackpot cut + all immature stake amounts – all stake protection amounts

The Jackpot size will change dynamically in real time depending on the mood of stakers and maturity of stakes.

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Additional Features

Reusable item are available in the system for a cost:

  1. Add time
  2. Reduce time

These two functions are disabled by default and will be enabled once the system slows down and is on the blink of potential collapse.

ERC 721 Compliant items are also available , each item has special function and the item will be more expensive after every successful purchase. 50% of the profit from the price increase goes to the previous owner and 50% to the scientists (dev).

System Settings

  • Dynamic stage target growth adjustment, starts at 3 ETH.
  • Dynamic jackpot size adjustment
  • 18 hours stage time
  • Add time feature resets time to 18 hours, reduce time feature resets time to 30 mins
  • No anti-whale settings
  • No limit to duration of the staking
  • Up to 88% on stake protection % settings
  • Jackpot cut (also the bank’s fractional reserve) – 8%
  • Scientist (dev) – 0.5%
  • Referral – 3%(If referral is used, 2% goes to referrer, 1% goes back to the original sender. If referral is not used, 2.5% goes to jackpot instead. The idea is to influence the original sender to use referral where possible.
  • Cards 0.5%

What Makes this Contract Unique?

There are many things that makes this contract stand out from others:

  1. The first contract that closely simulates an economic sector/event.
  2. A contract that will not be drained, all internal numbers match up with contract balance (contract showing a particular address has withdrawable balance remaining but the contract does not have sufficient ETH to execute).
  3. A contract that can sustain itself for a lengthy period due to jackpot snipers (weak hand) believing the contract will go into liquidation status (up to 4% of the failed jackpot snipes goes to the jackpot, and this essentially is what indirectly contributes to stakers’ rewards).

FAQ1: Explain this DAPP in a few sentences.

Choose your settings and stake your ETH. If your stake matures, you make a fixed return, else you will lose your stake in accordance to the risk level chosen.

FAQ2: Is there a need to get in early?

There is NO NEED to FOMO (In developers’ opinion). The system is balanced so that early stakers have no significiant advantages over the late stakers. The early stakers benefit from the initial launch volume and lower stage targets. The later stakers will be compensated by potentially higher jackpot and contract data (predict potential “difficulty bomb” of passing a particular stage). Stakers are recommended to adapt their strategy according to the game progress.

The community feedback is that early players may still be advantaged.

FAQ3: Will the contract pay out during liquidation?

The contract will always pay what’s promised assuming there are no bugs (tested by over 200k transaction simulations in testnet and externally audited) in the contract. No stakers will have surprise losses in any event, including liquidation. Jackpot winners, matured stakes and immature stakes will all be available for withdraw and accounted for.

FAQ4: What strategies should be used to participate in this simulator?

Stakers can customize their stake in almost anyway they like with unlimited duration, unlimited stake amount and small restriction to capital protection level. It is the randomness in customization of these stake settings that make this simulator operate as it is, consensus on the strategy will mostly certainly break the simulator. Stakers are recommended to do what they think will work out the best and do whatever necessary to make sure their stakes mature before the system liquidation breakdown.

FAQ5: Will bank runs occur?

Although unlikely, it is possible for a bunch of stakes to mature at the same time, then the system’s jackpot and reserve will be face a sharp drop off leading to panic bank runs. Stakers will become too conservative and the system may end up in liquidation.

FAQ6: Is it true that stakers can snipe the jackpot using 88% capital protection?

Yes, very true. The maximum amount that you can lose is 12%.

FAQ7: Will there be a deinvest option?

No, it is not implemented in the contract because early withdraws have have negative impact on the game play.