Plutos Network is a multi-chain synthetic issuance & derivative trading platform which introduces mining incentives and Staking rewards to users.

By integrating Blockchains such as Solana, Polkadot and BSC, enabling on-chain and cross-chain liquidity and trading, Plutos Network is to offer users synthetic issuance and trading services for a wide range of synthetic products which are sustainable, profitable and disruptive to the traditional derivative market.

Plutos Network is a decentralized cross-chain derivative issuance and trading platform which provides infinite liquidity based on the schemes of Staking and Minting and leading Blockchains like Solana, Polkadot and BSC. With Plutos, all users can have access to synthetic assets from both traditional financial market and the crypto market. By enabling cross-chain and on-chain functionalities, Plutos will be able to deliver keynote features such as scalability, high interoperability, low cost of transactions, offering the perfect solution for current DeFi derivative market to difficulties and limitations such as high gas fee, low transaction speed, vulnerability of hacking such as flash loan etc.

I. Key components of Plutos Network

Plutos Staking

• Users can earn rewards by Staking derivative assets on Plutos Network. The Staking service will be first built on Ethereum, and then migrate to Polkadot after the sub-parachain, OCW components are ready for deployment. The Staking service will soon be available on other leading Blockchains such as BSC and Solana.

Plutos Market

• Your One-stop platform for issuing and trading crypto derivatives. By applying AMM mechanism and enabling cross-chain wrapping function to build chain-bridges between mainstream assets of Blockchains including Ethereum, Polkadot, BSC and Solana, Plutos Market will be the marketplace when users can trade cross-chain derivatives with low cost, fast transaction and high security. In Plutos Market, users can trade derivatives such as contracts, options, swaps etc.

Plutos Pool

• Through PLUT Staking and minting, integrating liquidity from leading DEXes such as Uniswap, 1inch, Balancer, PancakeSwap etc, Plutos Pool can offer infinite liquidity for users with the best trading experience and passive income. With Plutos Pool, slippage and will very much improved thanks to the liquidity integration and cross-chain liquidity pools. There will be no need for Liquidity Provider on Plutos Network. Users will only need to stake PLUT and mint assets such as pUSD to convert one asset to another or open long or short positions of leveraged contracts underlying various assets without any restriction.

II. Technical Architecture of Plutos Network

Sub-parachain Component 

• A Sub-parachain will be built to be the underlying module for communications with parachains on Polkadot. Thanks to the outstanding features of Plutos Sub-parachain, Plutos will enable fast communications through the module with various parachains such as Rococo etc. The component will be a valuable improvement in order to realize interoperability, scalability and fast transactions.

Plutos Marketplace for Derivative Issuance and Trading

• The workflow of derivative issuance and trading on Plutos Network include several key components: Plutos Market for synthetic issuance and trading marketplace, Plutos Multi-chain Asset Collateral Pool for aggregating all assets on Plutos Network, Integration with leading liquidity and swap protocols including Uniswap, 1inch, Pancake and more for infinite liquidity.
• Plutos Market is a synthetic/derivative DEX without an order book. The dApp provides both leveraged and un-leveraged products. Users are able to converting one PLUT to another without worrying about how deep the liquidity nor slippage because the debt pool smart contract is backed by the staked collateral which plays the role of liquidity provider. Users are also able to be benefited by taking short or long positions with leverage. 

III. Infinite Liquidity & Synthetic variety by Staking & Minting

• Plutos Pool is a pool created in the process of PLUT holders staking PLUT and minting assets including pUSD, pBTC, pETH etc. The pool acts as a liquidity provider, acting as the counter-party when trading pUSD to pBTC, for example. Therefore, it can be said that the liquidity is infinite. In other words, there is no worry for users over the lack of liquidity or slippage existing in traditional financial markets.
• However, if all users only have pBTC and the BTC price rises by 50%, the total debt also increases by 50%. In this case, the collateral pool, the staking pool has the opposite position, pBTC sell (or inverse piBTC), so the buy/sell ratio plays an important role in the overall collateral ratio of the system. Plutos Network will increase the stability of the system by reducing the risk of various methods such as position hedge in the on/off chain for the position imbalance of the system.

V. Plutos Market: how does synthetics trading work

• Plutos Market offers better trading experience including reducing of friction, slippage, expanding the accessibility of mainstream crypto assets, etc.
• The lack of an order book in Plutos Market offers better deals when people trade synthetic assets. Assets will be assigned with real-time pricing through on-chain and off-chain pricing feeding by oracles such as ChainLink and Umbrella, then these assets are easily converted. Due to the large size of collaterals placed in Plutos Market, it can avoid issues such as slippage by enabling infinite liquidity and on-chain trading process.

VI. System Architecture

• PLUT Mint - Collaterals
• Plutos Market - Exchange