1. ABSTRACT MARKET OVERVIEW STIPS FinTech FINANCIAL ECOSYSTEM Results So Far To Be Developed Soon...

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2 CONTENTS 1. ABSTRACT MARKET OVERVIEW STIPS FinTech FINANCIAL ECOSYSTEM Results So Far To Be Developed Soon Ecosystem Audience STIPS Oculus (MVP) STIPS 20Fund (Launched) Fund Financial Model Index Fund Advantages STIPS Smart Fund TOKENOMICS ROADMAP COMPETITOR ANALYSIS TOKEN GENERATION EVENT TEAM

3 1. ABSTRACT The digital assets market started forming in 2009, with emergence of Bitcoin (BTC), the firstever cryptocurrency. Soon, when the first altcoin (Namecoin and Litecoin) appeared in 2011, it became clear that the market was on the threshold of meeting the brand-new class of previously-unknown assets that are to take up a strong position in the finance world. The number of cryptocurrencies, as well as total market capitalization, grew at an exponential rate, which led to emergence of new trading platforms (exchanges) and funds engaged in investing in cryptoassets. According to coinmarketcap.com, daily cryptoasset traded value reached USD 50 billion in As reported by Autonomous NEXT, a British fintech analytics company, there were 312 cryptocurrency hedge funds as at Q Assessed together, these funds control USD 6-7 billion of cryptoassets (around 2 %). Cryptocurrency and blockchain awareness spreads and grows at an amazingly quick rate: a global study of cryptocurrencyinvolved purchases made by Visa, MasterCard, and UnionPay card users shows that 89 % of respondents are well aware of cryptocurrencies, while 53 % have already bought some for the last 12 months. Such high level of engagement is ensured by blockchain itself, a technology that cryptoeconomy is based on. Never any scientific institution would dare to argue on the blockchain breakthrough. This innovation is empowered to remake the very structure of user interaction and financial services. In 2016, the World Economic Forum became one of the first who foretold the rapid growth of blockchain a thing that boggles imaginations and gobbles the financial services ecosystem. The core of blockchain is electronic transaction-recording tool which requires no third-party involvement and enables transactors track related data through the network. In simple words, blockchain is a distributed data store for digital transactions that has the multistep confirmation system, and thus it needs no further audit. Moreover, the data are always open for everyone having the access to the network. This system formalizes cryptocurrency payments and prevents any cases of malicious use of the currency units. A chart below illustrates the growth of bitcoin wallets on blockchain.com, one of the world s most popular portals. For 6 years, their number increased from 0 to 27,000,000, just on the one resource. 300,000 Bitcoin transactions are processed every day, with the total daily turnover of around BTC 1,000,000 (6 % of the market capitalization). Across the TOP-10 cryptocurrencies, the overall daily number of transactions comes to about 1.5 million 1. 3

4 Fig. Blockchain Wallet users sourse: blockchain.info Users Count Nevertheless, despite the enormous demand for cryptocurrency, the public has no clear and transparent strategy for developing this economy. Hundreds of high-profile experts are developing solutions ensuring access to the cryptocurrency market, but investors are still unable to do business without a reliable contractor a structure that could provide timely and proper information essential for professional cryptocurrency investing. 4

5 PROBLEM STATEMENT The necessity of professional cryptoasset management tools is obvious. In this regard, new infrastructural services continue to appear, called to help private investors explore the market and make further investments. It is also clear what goal these companies are pursuing the cryptocurrency market grows at a great pace, becoming more transparent and controllable day by day. A more mature and stable market means that more and more beginner investors will be engaged. With that, they will need a platform that could give everything they need fundamental analysis, technical analysis, exchange communication, direct investment tools, transfer of fiat money into crypto currencies, news bulletins, etc. Today s cryptocurrency ecosystem is too fragmented and disjointed. It needs cryptoasset management tools to provide investors both professional and amateur with a launching ground for efficient business. This approach would encourage simple and fast engagement. What is more acute is lack of tools to enable deep fundamental analysis of cryptoassets and teams developing them. Foreign consulting companies that analyze the ICO market found that 80 % of ICO examined are scams, while just 8 % make it to the listing phase 2. With that, even listing cannot guarantee that a project team plans further development of a cryptoasset. Pump-and-dump strategies at exchanges and tokens are nothing but pure swindling. Beside Bitcoin, more than a thousand digital currencies exist on the market. According to cryptoexchange aggregator coinmarketcap.com, 1,752 digital currencies were counted as at August 3, With Bitcoin holding 48 % of the market cap (around USD 300 billion), all other ones jointly hold 52 %. With that, Bitcoin held 90 % of the market just a couple of years ago. Lack of legislative regulations, highly-evolved token creation infrastructure, and traction gained by the cryptoindustry itself, together facilitate emergence of hundreds and thousands of new currencies, 95 % of which are doomed to failure. Investors always face the problem of choice in what to work with, how to avoid deceivers, and how not to lose funds after buying tokens. Information regarding teams and their actions, development plans, financial performance, marketing, HR activities, and hundreds of other indicators are critical for decision-making. Traders analyze charts and seek patterns for short-term investment, thereby missing grand mid-term and long-term profits that are to be vital on such an insanely-growing market. 5

6 SOLUTION There is the only way to increase the chances to invest successfully and improve the market with correct decisions. It requires a unique cryptocurrency financial ecosystem, developed by market experts and ensuring transparent, reliable and efficient investment activities, as well as instruments essential for fundamental analysis and forecasting. According to the recent research data, most people want to invest in cryptoassets; however, they are baffled due to highly-speculative market environment and lack of tools to enable longterm fundamental analysis. Our team has developed a concept of a decentralized platform STIPS Oculus, armed with innovative fundamental analysis algorithms. The following chapters of the present White Paper will give richer description of the platform. Index STIPS20.io, another product of our team, was designed for funds, traders, and private investors. The key purpose of the cryptocurrency index is to create an indicator that can characterize the general trend and pace of token movements. Funds accumulating investors money may use STIPS20.io as a guide to purchase most liquid tokens. Investors will be able to compare ROI with the market-average cryptocurrency dynamics, in order to evaluate efficiency and expediency when choosing a fund. Traders can exploit the index to see the real-time market picture and make informed decisions. The next stage of our work was creation of a tokenized index fund STIPS 20Fund that follows the STIPS20.io index. This helps to invest in cryptocurrency, quickly and securely, following buy-and-hold strategy that proved its efficiency both on classic securities markets and in cryptocurrency. Veteran experience of the most prestige financial institutions verified the potency of passive investments. Along with launching STIPS Oculus, we will start developing the algorithmic fund STIPS Smart Fund, which is to be empowered with analytical tools to make fully decentralized and informed decisions on distributing resources within the fund. Further, STIPS Smart Fund will follow the way of STIPS 20Fund and be the first-ever cryptocurrency fund charged with AI capabilities. Besides, the platform will have the full scope of instruments to customize the desktop by virtue of widgets; providing a user with access to third-party services (exchanges, funds, technical analysis tools, etc.). Based on EOS Blockchain, the unified ecosystem STIPS FinTech with STIPS token is transparent, secure, automated, and has everything to take the lead in forming the cryptoasset management industry. We are creating an infrastructural project that will not only enable profitable investing but also improve the cryptomarket through distributing investors resources across decent and fair projects produced by promising and trustworthy teams. 6

7 2. MARKET OVERVIEW Today the cryptocurrency market cannot be ignored. The infrastructure that has sprouted around it involves thousands of committed specialists across the globe, and billions of dollars in turnover. Let us look into the current market state. According to coinmarketcap.com, there are more than 1,700 altcoins to date. Cryptoasset growth dynamics from 2009 to 2017 is extremely rapid and looks like as follows. Certainly, cryptocurrencies and tokens do not form the world s greatest market, though it should be admitted that cryptomarket has soundly merged into the financial environment. Total cash amounts to around USD 5 trillion. M3 money supply (cash in circulation, demand deposits, notice deposits, savings deposits, certificates, and public bonds) amounts to around USD 86 trillion. In January 2018, total cryptocurrency market capitalization exceeded USD 750 billion and thereby outstripped capitalization of the world s most value company, Apple. November-December 2017, as well as January 2018, were noted by the most intensive growth of the cryptomarket capitalization the value climbed above USD 700 billion with further retracement. The total gain took place mostly due to Bitcoin cap growth by around USD 220 billion (from 15.5 to 236.7). Besides, altcoins joint capitalization increased by USD 374 billion (from 2.2 to 376). The overall number of cryptocurrencies increased from 617 to 1,754 over 2017 (effective August 8, 2018 according to coinmarketcap.com) more than three-fold. As a result of emergence of numerous competing altcoins, Bitcoin s share shrank significantly from 87.5 % to 38.6 %. Rapid market growth attracts not only private investors but also lots of institutions exchanges, broker and investment companies, and funds do their best to provide investors with access to this market. 215 cryptocurrency exchanges were counted in Q

8 Fig. Global Charts Total Market Capitalization The data above are indicative of high liquidity of the cryptomarket and traders readiness to gain more through short-term rate fluctuations. At the same time, there are many individual traders and few institutional players on the cryptocurrency field. However, if big companies do come, the cryptoeconomy may suffer significant changes related to new risk-hedging tools (futures), high-frequency robots to process deals within microseconds by means of trade algorithms, and to higher influence of funds (Soros Fund Management and Rockefellers Venrock have already shown some interest in working with cryptoassets). Fig. GDP of Global Economies Bitcoin alone holds the 5th place in the world s greatest economies rating. 8

9 ASSETS UNDER MANAGEMENT FORECAST Let us forecast the daily trade volume and potential amount of assets under management across the cryptomarket within 5 next years. The calculation will be based by the market growth dynamics over 3 last years (around 300 % year over year). The reference value will be market capitalization as at July 30, Then, we take 200-percent market growth starting 2019 with further pace shrinkage by 40 % year over year in , and by 20 % year over year in Considering previous market growth data, such a forecast could make sense. As we noted before, today s total volume of cryptoassets managed by funds comes to USD 6-7 billion (about 2 %). Based on PWC s report Asset and Wealth Management Revolution, 39.6 % of all traditional securities were under management of funds in Along with the market capitalization, we can forecast the dailyaverage exchange trade turnover, based on the cryptomarket capitalization growth. Figure 1: Total Clients in USD Trillion. As illustrated in Table below, the average daily turnover is to reach USD 58 billion by 2023, so the rate will be 300 %. 9

10 Thus, it is reasonable that the cryptomarket will reach this value by

11 3. FINANCIAL ECOSYSTEM Project Mission To make information simple and accessible, and investments reliable and smart. Project Goals 1. Build a decentralized crypto-finance platform ecosystem for smart investing and asset management. 2. Provide the community with complete, relevant, and unbiased information on each asset that interests them. 3. Build a community that is interested in independently searching and providing information on assets and the teams behind them. 4. Enable token teams to publish current information on their activities on a single platform with no need to use dozens of communication channels. 11

12 RESULTS SO FAR 1. Index STIPS20 Description We have developed a professional cryptocurrency index, available for all cryptoindustryinvolved. The index enables tracking the cryptomarket dynamics by the 20 most capitalized positions. Target Audience All cryptocurrency industry players eager to get unbiased and timely market information. Funds, investors, traders, investment institutions. Purpose The purpose of the cryptocurrency index is to create an indicator, accessible for all private investors, cryptofunds, and traders that could designate the trend and pace of digital tokens. For accumulating funds, STIPS20 can be a benchmark for buying most liquid tokens and enable straight-to-index investments for higher profitability. Investors will be able to compare ROI with the market-average cryptocurrency dynamics, in order to evaluate efficiency and expediency when choosing a fund. Website stips20.io 12

13 2. STIPS 20Fund Description The first public index-linked cryptofund STIPS 20Fund, based on the NEM blockchain. Classical transparent asset management strategy of the fund follows STIPS20 index that includes top 20 cryptocurrencies. An investor can apply to our fund at any time and get transparent marketaverage returns. Market Today s potential market for passive index-linked cryptocurrency funds amounts to USD 41 billion (see STIPS 20Fund (launched) section for market analysis). TargetAudience Amateur investors not inclined to take higher risks when making decisions, but eager to be engaged in cryptocurrency market dynamics. Purpose Creating the first-ever high-profile public passive index-linked fund, and enabling investors to take part in the cryptomarket securely, transparently, and reliably. Website stips20fund.io 13

14 TO BE DEVELOPED SOON 1. STIPS Oculus Description The platform is a decentralized environment using widget tools for the following service categories: fundamental and technical analysis (tokens, currencies, etc.) placing assets for management (includingstips SmartFund) пconnecting and using unlimited third-party financial services Purpose Creating an easy-to-use, robust, and decentralized analytics platform involving all cryptomarket players for making high-return investments. Target Audience Professional and amateur investors. Market ENTIRE cryptomarket (asset management + independent trading). Features The key advantage of the platform is gamification use of gaming thinking and dynamics in order to attract users and customers, increase their engagement in solving applied tasks and consumption. Gamification will make users more committed to transferring data related to analyzed projects, and get tokens, bonuses, ratings, etc. Current Status MVP to be ready by Q

15 2. STIPS Smart Fund Description After introducing the key elements of OCULUS, the system will be enabled to assess each and every token, based on the analysis of the collected data. In this phase, the fund will be transformed into a smart fund that will independently distribute assets across tokens, guided by the machine learning. Purpose Creating a cryptocurrency hedge fund; investment decisions will be made based on highquality fundamental asset analysis. Target Audience Professional and amateur investors. Market Potential cryptoindustry market for active-management funds is to amount to USD 69 billion in 2019 (see above for market review). Current Status Fund to be launched in Q

16 ECOSYSTEM AUDIENCE The audience can be divided into 3 blocks representatives of each one will find their own advantages in the product we are developing. INTERESTED. Potential cryptoinvestors. These people heard something about digital gold and are ready to broaden their knowledge, including potential investing in the brand-new type of assets. AMATEUR INVESTORS. Amateur investors are not professionally engaged in investing, but sometimes eager to manage their finance. They determine where to invest and assess risks themselves, when they have spare time after the main job. Prefer small-scale long-term deals to get stable profits. The category comprises people that have poor or fair investment market knowledge. Independent amateur investors have some investing expertise and prefer managing their resources themselves. They make decisions on which assets to invest in, and take all related risks. Administered amateur investors either have very poor investing knowledge, or have a good understanding but too little time to engage in these processes. Thus, such investors prefer to place their assets under professional management. Among such investors can be a student taking first steps in depositing, or an established businessman owning an enterprise that takes the bulk of time. PROFESSIONAL INVESTORS. These people are fully committed to financial markets. Some of them are even that big to be newsmakers and marketmakers. Some of them invest for living. Such professionals mostly work with others assets. They can see better where to invest, aware of hidden pitfalls and skillful in evaluating risks. Traders are investors that get short-term profit through the difference between purchase and sell prices. Their key goal is to buy low and sell high. Usually, they make numerous deals within a week. Managers are investors that control assets of others. Having perfect market knowledge, clear strategies, and essential expertise, they increase wealth of their customers. 16

17 3.1. STIPS OCULUS (MVP) First Decentralized Trading, Analytics and Management Platform Decentralized platform STIPS Oculus consists of two key elements: Analytics Block. Aggregates fundamental data by preset parameters, which are used for making investment decision; Data Capture Block. Enables the community to provide beneficial fundamental asset data for further analysis. АNALYTICS BLOCK STIPS Oculus uses the combination of unique regression and sentiment analysis to determine fundamental parameters influencing the token cost dynamics. Having rich inventory of such data, a user will be able to form a proper trading strategy for everyday operation. Regression analysis is a statistical method for studying how one or several independent variables (code activity on GitHub; asset flow) influence a dependent variable (token price). Creating a regression model is a repetitive process aimed at seeking efficient independent variables to clarify dependent ones. Sorting this out, one will be able to determine which values are efficient predictors. Then, variables should be removed or added until an optimal model is found. 17

18 Using STIPS Oculus, we will analyze the following data (the parameter list is not limited and to be continuously developed and analyzed): 1. Code activity on GitHub 2. Asset flow on major wallets 3. Project marketing activity tracking: Team activity on news publishing, event announcements in official media, event execution Advertising activities on platforms Marketing expenses calculation 4. HR activity means the rate of involving new work resources into the project 5. Number of current employees 6. Compliance of project activity with the roadmap 7. Project rating aggregating data from existing ICO-trackers 8. Number of exchanges where a project token is listed (preliminary exchange rating) 9. Project team competence assessment 10. Dynamics of the number of infrastructure-connected projects (EOS, ETH, XEM, etc.) 11. Number of project holders and in-system transactions 12. Aggregator of authoritative predictions on a token 13. Scam engagement history of project advisors 14. Trade instrument volatility 15. Trading volume across all exchanges 16. Project/trading geographic activity (interactive map supposed) 17. Jurisdictions of legal entities and operations 18. Trend analysis of the current projects and active ICOs 18

19 Sentiment analysis provides a view on the market sentiment or situation in a specific field in terms of all connected chats, tweets, or websites. The method is based on semantic analysis of aggregated news. When a user is switched to a coin, collection of news on terminological token of the coin starts. Then, sentiment of all news is assessed according to a dedicated algorithm. The output data is summarized and illustrated as a bar (number of messages and sentiment grade) in the chart. By clicking a bar, a user sees the specification of the number and sentiment by sources (minimum timeframe is 12 hours; less than 1,000 words in mentions would not be not much to look at). Administrator can choose news sources. The platform has an instrument which displays market sentiment by keywords. For instance, an end user types keywords EOS, ICO, tokens. These words are transferred to the sentiment analysis service, and the system shows the sentiment data for specific word pairs. 19

20 DATA CAPTURE BLOCK The problem of platform scaling and exponential growth is solved through continuous user interaction through gamification and token motivation system. Key problems of most services are difficulties during exploring and user retention. Gamification unleashes competitive spirits in any user. When playing, users are more engaged and feel more and more satisfied after reaching goals. This means such customers would be likely to use the platform way more often.stips token-accounting system which rewards users for completing tasks, bonuses given for platform exploration, and rating system are auxiliary incentives that encourage using Oculus. Any user will be able to enter currency data by the above mentioned criteria (wallets, team portrait, event info, etc.). In return, we will account STIPS tokens to such users, as an honor pay for information. In first phases, STIPS FinTech team will evaluate significance of these data independently, using transparent and publicly-accessible methods. POTENTIAL OCULUS USERS The platform is targeted at all market players: Token creators; Token buyers; Those who want to make money on both above categories. USER-GENERATED CONTENT SUPERVISION Oculus is a decentralized platform providing any user with access and managing rights. The system is based on automated accounting of most active users and lodging them with supervisor rights. Supervisors are users that are well-respected in the community and thus have specific rights and obligations. These supervisors validate incoming information and influence platform operation. In the initial phase, a team of 10 supervisors will be formed from ordinary users, based on their activity. To become a supervisor, a user must have 100 validated data units. A supervisor gets x2 tokens for information capture (10 STIPS); they are also required to moderate at least 10 input data units generated by other users, every week. Should they fail to perform this obligation within a month, they lose their supervisor status and become an ordinary user until their activity restores. Every user having 200 validated data units gets a super supervisor status, having the right to use all Oculus services free of charge, and access to additional platform functions. The status is temporary and requires higher activity. 20

21 ANALYTICS BLOCK Bob, a platform user, is a cryptocurrency trader. Signing up with STIPS Oculus, Bob gets access to a limited list of parameters that can influence the price of a token Bob is interested in. These parameters are: Code activity on GitHub; Number of exchanges where a project token is listed; Project team count; Compliance of project activity with the roadmap. Then, Bob chooses a token (for example, NEO), connects available parameters, and enjoys the view of how these parameters influence the token cost, in the form of charts and absolute values. Based on the analysis, Bob infers that, for instance, only Code activity on GitHub and the project team count do have impact on further NEO price. After that, Bob starts tracking changes of these parameters in his user account. When Code activity on GitHub gains 500 units and the team greets 15 new members, Bob buys a NEO token, awaiting upcoming growth. Larger team and improved code (growth of the GitHub activity and of the number of personnel) increase the demand for the token thus, increase its cost. As a result, Bob is in profit. After a successful deal, Bob decides to use full-fledged functionality of STIPS Oculus. For that, Bob buys STIPS tokens and gets access to the unlimited functionality. Alice, another user, is interested in project analysis and finding market trends. She signs up with the platform and gets access to data uploading tools, in order to receive STIPS tokens. Alice knows that XEM token team plans to hold several major events, and monitors the project s roadmap compliance. She uploads the info to the platform and is notified that X STIPS tokens will be accounted after moderation of the data uploaded. Thus, Alice provides valuable information used in the regression model, and gains on it. At the same time, Bob uses these data for trading activities. 21

22 HOW TOKENS ARE USED STIPS tokens will be the ecosystem core, accounted to users who provide valid information and used as payment method for extended functionality.token depositing will be included in the monthly tariff plan. Platform Functions: Regression analysis Technical analysis User communication tools (chats) Tools for direct user-to-exchange trade New algorithm testing Sentiment analysis News aggregator Connectable funds Function list is much broader. System functionality, as well as the interfaces, is a partial integration of the following services: Cryptowatson, Haasbot, and Cryptopanic. Therefore, the platform already includes the best practices and usability of these tools. SYSTEM INTERFACES The system is socket-based, single window for all services. Dashboard supported. Any end user can configure tools. Each tool is available as a widget to be added to the dashboard. Adding a tool to the dashboard, a user sets related parameters. For example, a user can form a dashboard aggregating all data regarding a specific token, funds on the wallet, Twitter news, status of messages related to this currency. Here, trading this token by using trading algorithms developed by other specialists, is also possible. STIPS Oculus is to become a living organism created by the community itself according to their needs. 22

23 THIRD-PARTY SERVICES USING WIDGET-TOOLS There are lots of projects on the market, and every developer team is great in their product context. We realize that we cannot create all services and be jacks of all trades. However, users do want to have access to all services, most preferably in one place. This is why the platform will be open and enable connecting third-party services and products, to use and make money on them. 23

24 OCULUS FINANCIAL MODEL The financial model is based on the following token flows: Input STIPS token flow is formed by payments of users for the extended functionality (use of fundamental analysis within the Analytics Block). Output STIPS token flow is formed by rewards to users for provision of validated fundamental information for further processing and use within the Analytics Block (users interact with the Data Capture Block). As reflected by the table above (an excerpt from the financial model), the platform is to reach positive input-output balance of STIPS token flow by the second year of operation. Before this level, deficit will be funded by means of the Expert Rewards Fund provisioned in the token distribution model. Accumulated positive token balance will be partially burned (see STIPS Token Burn section for more information), and partially redistributed to STIPS Foundation to support platform operability. EOS blockchain ecosystem was selected to execute the platform functionality, as it meets requirements emerging when developing STIPS Oculus platform, better than others. Key platform features that determine selection of the technological foothold, are: need for scalability, which is due to rapid volume growth of data accumulated across the platform and accessible for users analysis and decision-making; need for high transaction processing rate comparable with modern banking payment systems such as Visa/MasterCard (~1600 txs/sec), which is essential to form a full-fledged fund portfolio management system and processing large volumes of input data. 24

25 Emitted based on EOS Blockchain, STIPS token will meet platform requirements and enable high operating speed, optimizing network fees and retaining opportunities for flexible project development. High network capacity is reached by virtue of Delegated Proof of Stake (DPOS) all Blockchain token holders can vote for block producers (BPs). Anyone can nominate themselves for a BP status, but they will need to encourage the community to vote for them. Top 21 BPs with highest numbers of votes validate EOS blocks. Blocks are produced at an 0.5-second interval this rate is 30 times higher than block production rate in Ethereum3 (around 15 seconds). To date, main EOS network processes more than a thousand transactions per second. According to experts4, its capacity will reach 50,000 txs/sec. As opposed to traditional DPOS blockchain systems, EOS network has the builtin modification of the Byzantine fault tolerance that ensures 100-percent irreversibility of a transaction in 1 second after execution. Any blockchain network has restrictions for resource use this leads to transaction fees. In Proof-of-Work networks (such as Bitcoin and Ethereum), these fees are further awarded to miners that incur electricity and equipment expenditures essential to support operability. The core of the EOS-centered transaction system is user purchases of EOS network resources (RAM and CPU). EOS system has another approach and is based on consumption of network resources by users and apps. These resources are: RAM used to store a contract s current state; Network capacity or disk space on BPs servers; CPU on BPs nodes. For instance, when the account is created, a user has to buy around 4KB RAM and frees EOS for CPU and Bandwidth, as EOS is accurate to 4th decimal place, minimum cost of EOS for CPU and the same for Bandwidth. However, an account with such CPU and Bandwidth is unable to send transactions, so it would make sense to set the minimum at EOS 0.2 for CPU and EOS 0.1 for Bandwidth. Thus, account creation in the EOS network is paid by the creator and comes to around USD 8/account, but all account transactions will be free within the power of account resources. Applications that do not require regular payments will grow way faster than DAPPs that make users pay for every transaction. Such EOS blockchain resource use structure will engage users in ecosystem development. Built in the EOS blockchain, smart contracts will automatically distribute value flows within STIPS. As a part of the analysis platform, tokens received from users as monthly subscription payments form a pool that funds user and supervisor rewards for data provided, and also payments to STIPS Foundations to support STIPS operation and further development. 25

26 The system balance will be calculated on a monthly basis at the end of each calendar month, the general inсoming-outgoing token flow balance (between tokens received and tokens allocated for rewards and maintenance) will be drawn up. In case of negative value, the deficit will be covered by means of a reserve fund; in case of positive value, the surplus will be burned. Audit activities will take place every half-year to assess system stability these measures are aimed at supporting token flow balance. In case of determining factors leading to disbalance, a decision will be made on reconfiguration of system parameters. Such a decision will be made with consideration of supervisors opinions. 26

27 ECOSYSTEM TECHNICAL FEATURES 1. In the developed ecosystem, a STIPS token will be a smart contract that can be used both by platform users and by other smart contracts and decentralized apps. This will enableinternal token flow and interaction with other contracts and decentralized apps of the rapidly-growing EOS ecosystem. 2. Two-tier scalability. Quantitatively, the system will ensure connecting unlimited users and input large-volume data; in structural terms, the system will ensure integration and development of broad-functionality analysis modules. 3. High transaction confirmation rate provides for simple and secure supervision system essential for project development according to the goals set. 4. No transaction fees for end users will encourage the community to input data actively and be engaged in development of the analytics platform in return, this will support longterm token liquidity. 5. Parallel calculations support will optimize platform operation and enable almost-realtime data delivery. 6. Inter Blockchain Communication. EOS ecosystem structure will let EOS interact with any other blockchain through validating headers of this chain by block producers. This is essential for rapid investment portfolio forming and implementation of a user s individual investing strategy. Oculus Smart Contract Analytics Platforms Exchanges Data Access Data Delivery User Social Media Inter Blockchain Communication will support using other cryptocurrencies to pay for STIPS Oculus subscription by means of automated conversion of non-eos currencies into STIPS tokens. Beside STIPS Oculus, Oculus API will also be developed to enable third-party services to get integrated into the system and automatically deliver data and receive tokens for this. Thus, STIPS Oculus ecosystem is based on cutting-edge blockchain solutions and provides ground for long-term development in full compliance with the original roadmap. 27

28 3.2. STIPS 20FUND (LAUNCHED) First Decentralized Tokenized Index Fund An index fund is a type of mutual fund, which is managed passively and uses the market index tracking strategy. This strategy assumes that the fund portfolio consists of the same assets as the index produced by it. For instance, an index fund focused on S&P 500, follows the US stock market dynamics. Having bought one share of this fund, an investor buys 500 shares of this thick-market index. Index funds are great for saving time, as investors do not have to analyze separate assets or portfolios. As at October 20, 2017, 13.7 % of the US stock market belong to passive funds portfolios5. According to the World Bank, US stock market capitalization amounted6 to US 32 trillion (2017) thus, passive funds control US 4 trillion on the traditional US stock market. The analytics above enable to evaluate the potential market for passive funds in the cryptocurrency industry. As on July 30, 2018, cryptomarket capitalization came to USD 300 billion therefore, the potential market for passive index funds amounts to USD 41 billion. Every country has indexes reflecting market state (S&P 500 and Dow Jones in the US, RTS and Moscow Interbank Currency Exchange, Nikkei 225 in Japan). Beside thick-market indexes tracking the whole situation, there are region-specific, industry-specific, and sector-specific indexes. Any market index can be linked to an index fund. As other mutual funds, index funds can be based on shares, bonds, real estate, money market, and commodity market. Previously, the cryptomarket had no professional index designed for funds, traders, and private investors and aimed at maximum asset capitalization enhancement.our team has solved this problem through developing STIPS20.io. The fund s purpose is to follow the dedicated index and ensure informed and lower-risk distribution of investors resources. The key goal of developing a cryptocurrency index is forming an indicator that would enable private investors, cryptocurrency funds, and traders to describe the general trend and pace of digital tokens. For accumulating funds, STIPS20 can be a benchmark for buying most liquid tokens and enable straight-to-index investments for higher profitability. Investors will be able to compare ROI with the average marketcryptocurrency dynamics, in order to evaluate efficiency and reasonability when choosing a fund. STIPS20 index uses the most impartial methodology that assigns assets with weights based on their market capitalization this ensures simplicity, credibility and transparency for all concerned parties (investors, funds, managers, mass media, etc.). STIPS 20Fund is a structure that manages shareholders money, ensuring correspondence between fund shares dynamics and STIPS20 index dynamics. A blockchain-based cryptocurrency fund must use smart contracts to automate admission and withdrawal of shareholders, ensuring transparency of deals and profit distribution. STIPS20F token (hereinafter referred to as S20F) is to be the key instrument of the fund. 28

29 FUND FINANCIAL MODEL Fund financial model implies the following income flows: % entrance fee. Every time an investor wants to buy S20F tokens and become a shareholder, he/she will be charged 0.5 % of each token price, as a fee to reward fund manager and technical support team. 2. Management fee. 2 %/year, charged daily through emitting new tokens by the formula: current number of tokens * 2 % / 360. These fee tokens are then transferred to the managing company. 3. For historical reasons, index funds show better risk/roi ratio in long term, compared to active-management funds on the traditional stock market. Therefore, higher exit fee prevents an investor from making ill-considered decisions on withdrawing money at high market volatility. In case of withdrawing all assets before the quarter end, management fee is calculated for the actual period (days) during which assets were in the fund (starting from the end of the previous quarter). Management fee will be charged when withdrawing assets. Exit fee before 1 year. 4 % of the overall asset cost as on the date of withdrawal request submission. Exit fee from 1 to 2 years. 2 % of the overall asset cost as on the date of withdrawal request submission. No exit fee after 2 years. 29

30 INDEX FUND ADVANTAGES As index funds are the evolved version of active funds as a low-cost instrument for longterm passive investment, their key advantage is low expense ratio and market-average stable profitability. Low expense ratio. Annual expenses of index funds are significantly lower than those of activemanagement funds, as there are no expenses related to managers rewards and those related to frequent purchase-and-sale of securities therefore, investors pay lower fees. Low portfolio turnover rate. This benefit leads to lower investor s expenses. Index funds do not change the portfolio until the reference index composition changes. As a result, asset turnover rate is 3-5 %/year. Just for comparison, average asset turnover rate in active stock fund is 84 %. Rich diversification. Working with index funds, investors do not have to select and manage assets. Becoming a shareholder, they get a diversified portfolio, risk minimization, and marketaverage profitability. No human factor. When investing through a passive fund, an investor eliminates all risks related to incompetent managers, always present for active funds. An investor gets the market dynamics by means of a clear and transparent strategy. Fund Website: stips20fund.io 30

31 3.3. STIPS SMART FUND Decentralized Investing Solution STIPS Smart Fund is an active cryptocurrency fund grounded on the combination of the algorithmic trade and machine learning based on fundamental asset analysis. The fund is an essential part of Oculus the significant part of the platform s functionality is focused on smart investing and gives users access to data to make their decisions on cryptoassets more informed. With that, most users are not ready to make decisions themselves, so they value not analytics tools but instruments to place assets under management. For that, we will enable users to choose an algorithm/fund/trader and to transfer the management of their assets. 1. Index fund launching. In the first phase, we launch our own fund to distribute assets for 20 highest-capitalized tokens according to STIPS20 index. 2. Index fund to smart fund transformation. After launching key elements of Oculus, the system will assess any token based on analyzing the collected data. In this phase, the index fund will be transformed into a smart fund that will distribute assets across tokens by virtue of machine learning. 3. Connecting a wide range of third-party funds. 31

32 4. TOKENOMICS STIPS is a token built on the EOS blockchain. STIPS is a utility token constituting the core of STIPS FinTech. Based on tokenizing, the project economy is aimed at continuous development and enables decentralization of incoming information this minimizes garbling typical for centralized data aggregators. Tokens are constantly circulating across the system, and users can either spend them within the ecosystem, or receive them as rewards for contribution to project development. Token s key functions is encouragement, which ensures harmonic evolvement of the system. USE OF STIPS OCULUS TOKENS 1. Monthly Subscription. Oculus exploits tokens as for subscription payments (subscription gives access to extended functionality). Basic monthly subscription amount is STIPS 100 (the value may vary depending on the token s market price). All tokens collected as subscription payments are to fund further development, maintenance, and rewards to users. 2. Platform Maintenance. Some resources are allocated for the staff, server maintenance, and other expenses. 3. Rewards to users The unique token-encouragement system implies that active users receive STIPS tokens for providing various valuable data. Basic reward amount is 5 STIPS (the value may vary depending on the token s market price). The reward is paid for validated information only. Oculus supervisors get x2 tokens for such data (read more about rating in the platform description). TOKENOMICS CALCULATION FOR THE STIPS OCULUS PLATFORM Tokenomics calculation has been made based on two scenarios funds raised in accordance with Hard Cap and Soft Cap. During calculation, the following data was simulated: Input STIPS token flow, which is generated by user subscription payments for access to the platform s expanded functionality. Output STIPS token flow, which is payment to users for providing valid information to the platform. Input-output balance of STIPS token flows to ensure viability of tokenomics (that there s no token deficit during platform operation). The ratio between tokens participating in the platform s operation and the total volume of STIPS token emission. 32

33 Optimistic scenario. The amount of Hard Cap is raised (an excerpt from the model) Worst-case scenario. The amount of Soft Cap is raised (an excerpt from the model) The tokenomics model of the STIPS Oсulus platform is viable with funds raised in the amount of both Hard Cap and Soft Cap, taking into consideration assumptions, the maximum token deficit takes place in Q7 of the project operation and amounts to 3,205,825 cumulative STIPS tokens. This deficit will be smoothly offset from the Oculus Expert Rewards Fund, which is accounted for in token distribution model and amounts to 9,743,417 tokens. Starting in Q8, the platform will have a positive flow of STIPS tokens. As at Q8 of the project s operation, STIPS token circulation rate on the STIPS Oculus platform comes to 105% of the total emission volume in the optimistic scenario and 58% in the worstcase scenario. 33

34 USE OF TOKENS IN STIPS FUNDS In ecosystem funds, tokens will serve as a fee payment method. A user can pay fees with a fund token (enforced repayment), or pay with STIPS tokens with a 30 % discount. STIPS tokens can be bought by a user on the exchange in advance and deposited, or purchased directly through the platform for Bitcoin/Ethereum. Some of tokens gained will be allocated for rewards to third-party fund managers. STIPS TOKEN BURN 10 % of all input STIPS token flow (platform use fees, fund fees) will be accumulated and burned quarterly, until 30 % of all issued STIPS tokens are burned. 34

35 5. ROADMAP 2017 Cryptocurrency market studies. Collection of data regarding demand for trade tools, identification of customer needs Project team formation STIPS20 index work commencement, consultations with specialists on building formulas and forming database management procedures Putting the index into operation, testing data calculation algorithms, code operation audit Composing a project statement for developing the cryptocurrency index fund; work commencement Q Launchingan index (passive) cryptocurrency fund STIPS 20Fund following the index Q Auditing index and fund as the unified system. Transactions testing and process automation ICO preparation start Q DeepWhitePaper development. STIPS FinTech ecosystem description Designing the product for ICO. Establishing relations with partners and involving advisors Releasing White Paper and token sale terms. Q STIPS Oculus MVP September October 2018 Private Sale October November 2018 Pre-Sale December 2018 January 2019 Main ICO phase Q Listing STIPS tokens on HitBTC, IDEX, Bibox, Liqui, Cryptopia, EthFinex Independent finance audit of resources Reporting to investors on current asset distribution according to the resource use strategy, following ICO results Improvement of STIPS20 Fund functionality to make it accessible for the investor community 35

36 Q STIPS Oculus Beta release (public access with limited functionality) Q Listing STIPS tokens on Bittrex, gate.io, YoBit, EXMO STIPS Oculus release (full functionality) STIPS Smart Fund Beta release Q STIPS Oculus Final Version release Q STIPS Smart Fund Final Version release Platform extension Connecting new languages Launching decentralized data exchange system and introducing supervisor system 36

37 6. COMPETITOR ANALYSIS 37

38 7. TOKEN GENERATION EVENT Terms of TGE September 2018 January 2019 Name STIPS Emission Volume 242,367,507 Architecture EOS Available for ICO sale 146,151, Raised on private sale $1.4 M Price Stage I ($1.4 M - $4.4 M) - $0,07 Stage II ($4.4 M - $7.4 M) - $0,085 Stage III ($7.4 M - $11.4 M) - $0,1 Currencies Supported USD, BTC, ETH, LTC, BCH, EOS Type Utility token SOFT CAP $4,400,000 HARD CAP $11,400,000 New tokens cannot be emitted, generated, or mined after the ICO starts. 38

39 STIPS Token Distribution Resource UseAfter ICO 39

40 8. КОМАНДА Chief Executive Officer (CEO) Dmitrii Kotegov, CFA Chief Technology Officer (CTO) Pavel Evtikhov Investment & Finance expert 2018-Present - Co-founder and Chief Executive Officer, STIPS FinTech ATON investment company. As a top financial advisor developed a pipeline of private (HNWI) and corporate clients and managed their investment portfolios Head of investment department at Ural University Complex (venture capital infrastructure company) Manager of innovative and investment projects, Ural Scientific Research Technological Institute (venture capital business) Auditor-consultant, PWC («big4») 2018-Present - CTO, STIPS FinTech Head of Department, SKB Kontur (electronic document management operator) CTO, HoReCa Chief Business Officer (CBO) Vasili Belokryletski Chief Marketing Officer (CMO) Nikita Kutsenko Investment, Finance & Legal expert 2018-Present - Co-founder and Chief Business Officer, STIPS FinTech ATON investment company, Senior financial advisor: support of HNWI clients financial portfolio management Specialist of Investment department in The Ministry of Investment and Development of Sverdlovsk region Partner, Attorney, Lawyer, Legal assistant at Bars and Legal firms PR & Advertisement expert 2016-Present - Co-founder and CMO, STIPS FinTech Chief Business Officer, TV company State civil service, Civil Service Assistant, Counselor of the first Deputy head of the overnor s administration 40

41 Architect of Stips20 Index Sergey Fedorov Product producer & CTO owner, Unicase, web services developer company Product manager, Yandex Product manager, Abak Press Co-founder and CTO, Altein Co. Assistant to Management Maria Baklanova 2018-Present - Assistant to management, STIPS FinTech Assistant to management and translator in civil construction Translator and assistant to management, Schneider Electric Assistant to management and marketing specialist, AREVA T&D Translator and PR specialist in software company Developer Alexander Menshikov Project Manager & Art Director, Unicase Project Manager, Lovemedo (ex. Province) Project Manager, Red frame SMM-Manager Irina Borisenko 2018-Present - SMM-Manager, STIPS FinTech Marketing Director, SoyuzPromExpo, exhibition company Advertising & PR Manager, Ural Exhibitions, exhibition company 41

42 Law Partner Tarlan Kornilov Founder and CEO of Elite Consulting Law Firm Marketing and Investment Advisor Jeff Frey Jeff Frey is an international marketing- and branding expert who is specialized in marketing& growth hacking. With a passion for networking and digital business models, he established his startup InternsInBeijing as Beijing s largest platform for expats. He is also the Executive Director Asia of the Swiss blockchain& due diligence agency Alethena. Besides, he is a well-known speaker at various blockchain events mainly in Asia and an advisor to several other blockchain companies mainly for marketing and investment advisory. He previously worked for the Swiss Embassy in Beijing and is very well connected with investors in Asia. Asia Expert Khuan Tczy-Bai Shareholder, Deputy Director, Globus, LLC, JV, China Translator, Dealer in Russia and China, SAP, LLC, JV Germany-Austria Member of the Union of Translators of Russia Investor Relations Coordinator Artem Pereshitov Purchase & transportation specialist in Linvel Corp. 42