The eRSDL and unFederalReserve Operational Ecosystem
unFederalReserve Development Update — February 2021
To get us all caught up on our progress, here we present an update on the unFederalReserve product development timeline. Before we start, here are some important project facts for background:
- unFederalReserve is a financial software company
- We are bankers and information technology professionals
- Our clients are banks who either license our software directly, or own an SPV that licenses our software
- Our clients’ customers, through a standard deposit account or line of credit account UI, participate in a decentralized financial system
- The spread between the lines of credit and deposit accounts covers platform expenses and helps meet profitability goals
Overview: How unFederalReserve Can Help
Our product is ideally suited for a U.S. Treasury chartered bank, leveraging blockchain’s near instantaneous, immutable settlement capabilities. The product is funded by the cumulative balances of high yield, money market accounts (our Thunder® product). Funds are then drawn through a line of credit (our Lightning® product). The rates are established by either the participants or the bank, for example, through an auction bond process. The term would be open, but a few days from the draw settlement, a trigger would spike rates or penalties are incurred. The spread allows for the payment of commitment fees on a line of credit itself to ensure there is a baseline of sufficient liquidity. The banking product is bonded in the event of large-scale, non-credit-related default.
Our software leverages the best of blockchain while leaving the user’s typical banking experience in place. We expect that our software will result in new product creation, and become the U.S regulatory banking product development and distribution platform of choice. Through an iterative process, as we complete our understanding of the rewards and limitations of each money Lego®, we will assess and take the next logical step toward the end goal.
Product Concept
Step 1: ALDash Creation: Our process begins with the construction of a Compound fork, called “ALDash.” We will launch a unique DeFI platform, because we need managed spaces if we are to create a “safe harbor” in the “open ocean” of DeFi.
Step 2: KYC Chain/Selfkey Capabilities: Once we apply our principles to map out a curated maker/taker environment, we’ll have the ability to link to other “oceans.” As a next step, we will add KYC Chain/Selfkey capabilities to create a “cRSDL”-qualified Participant token that will enable us to make and take small, purposeful loans within the safe harbor of qualified entities to ensure workflow is correct.
Step 3: Program Expansion: After rigorous testing of our technology, we will expand the program to include a sponsor bank or bank-owned SPV. In either scenario, an Asset-Liability Committee (ALCO) tool will monitor the products adoption and usage, so that Management can drive results.
The Products
ALDash®: A Fork of Compound — An Asset Liability Committee Tool
As an asset liability tool and forking Compound, ALDash® gives us a number of competitive advantages over companies that only use two-panel supply-and-borrow user interfaces (e.g. AAVE, C.R.E.A.M, et al); specifically, the ability to make and take loans while incorporating our own code into the open ocean of DeFI protocols. There are only a few live products like this in existence. Provisional patents will be filed covering this and other technologies we develop along the way.
CMDash®
In Q1 of 2021 our design team laid out the account creation, log in and setup processes in a series of screenshots. While not wired for use, we believe our wireframe may be the marketing premium our bank sponsor chooses to leverage to engage with non-bank lenders and smaller bank clients. Our cash management tool is critical for treasurers who manage cash at their companies. This role is often led by someone on the Controller team who manages accounts using spreadsheets or by logging into individual savings and loan accounts. CMDash® displays the key metrics and reports that are critical for treasurers to make decisions on the fly, on a day-to-day basis.
Lightning®
Lightning is a low interest rate line of credit meant to be drawn for a few days at a time. It is priced for risk and short duration, with ample liquidity.
Thunder®
Thunder is a high interest rate money market deposit account. Once users connect or open their accounts, they have a place to earn higher yields on their cash sweeps, inbound wires and other cash accounts.
KYC-Chain® Partnership
KYC-Chain is a global provider of all-in-one KYC & AML blockchain and banking compliance solutions.
They are a perfect partner for us for the following reasons :
- 10,000+ data sources
- 240 countries and territories covered
- 30s data check response time
- 50,000+ successful onboardings
- 4,000+ types of ID documents supported
KYC Chain excels in the area of standardized, institutional KYC and we will work together to bolster global awareness about our combined vision.
Development Update — February 2021
Over the past few months, the unFederalReserve team has been in product development mode, working through initial security and operational plumbing, requirements, and user-story iterations based on bank and lender feedback.
We are now full speed ahead on the development of our product roadmap in partnership with Webdevelop.pro, whose efforts and solid engineering principles have gained us traction and embedded SeCops/Devops/Code into every area of our development.
We have added the ALDash® product development (the Compound Fork) and we continue to track according to our posted roadmap; now that we are fully staffed with astute developers, we will begin sending updates that are fully focused on product development.
Systems/VMs and Devops Pipelines Setup
CMDash®
ALPHA frontend code : User Profile, Dashboard, User Settings, Sign-up Flow
ALDash® — Fork of Compound Process
Smart contracts forked and pushed to Ropsten Testnet
User interface ALPHA functioning about 70% and wired to Testnet contracts
The supply/borrow tokens for February and eRSDL will also be part of the list of integrated tokens. We will be focused on stablecoin USD Coin (USDC) supply and will reward community members who provide supply to our tokens through additional eRSDL rewards.
Lightning®
This schematic will be created using USDC, with Polkadot or Algrorand as a back-end. POC and research was completed in January, and the unFederalReserve team will begin true implementation in late February.
We may also use fork of ALSense contracts as the baseline into the safe harbor lending area as well, and we continue to work through additional lending protocols as a baseline.
Thunder®
Designs, architecture and POCs will begin in late February 2021.
ALCO
Designs, architecture and POCs will begin in late February 2021.
unFederalReserve February Goals:
- Complete buildout of ALDash® Compound Fork for Alpha/Usability testing and share with community, including eRSDL rewards incentives for participating and providing supply. Alpha testing late February/Early March
- Continue on analytics dashboard CMDash® area
- Begin implementing Lightning®
- Begin designing Thunder®
- Ongoing website cleanup and maintenance tasks based on Community Feedback
More from unFederalReserve
