Last updated 2 weeks ago
Our Risk Ratings effectively guide investors, but the Risk Rating computation is centralized. This trust-based arrangement gives us the power to alter scores at will, which is unacceptable.
This is the total amount allocated to Xerberus Nodes: A Decentralized Risk Rating Agency on Cardano for the World. 2 out of 6 milestones are completed.
1/6
Project Planning and Kick-off (Months 1-2)
Cost: ₳ 75,000
Delivery: Month 2 - May 2024
2/6
Paper on the Xerberus Node
Cost: ₳ 225,000
Delivery: Month 4 - Jul 2024
3/6
A simple Xerberus Node for Initial Testing
Cost: ₳ 225,000
Delivery: Month 6 - Sep 2024
4/6
Integrating the Risk Model into the Xerberus Node (Second Alpha)
Cost: ₳ 75,000
Delivery: Month 9 - Dec 2024
5/6
Xerberus Node Beta
Cost: ₳ 37,500
Delivery: Month 11 - Feb 2025
6/6
Project Conclusion
Cost: ₳ 112,500
Delivery: Month 12 - Mar 2025
NB: Monthly reporting was deprecated from January 2024 and replaced fully by the Milestones Program framework. Learn more here
In addition to the main applicant (Simon Peters), the proposal has two co-proposers: Noah Detwiler and Matthias Guilbert, being submitted by the three Co-Founders of Xerberus.
We propose to decentralize and scale up the computation of the Xerberus Risk Ratings through a Network of Nodes, removing Xerberus Servers as centralized power and potential censor.
NO
Xerberus Nodes, like most Nodes of decentralized networks, are fully open-sourced. Users who run nodes can inevitably look into the source code, as this is the only way Node Providers can independently ensure that our nodes are censorship-free. Our Nodes will be licensed under the MIT Licence, a permissive open-source license. This means that the software is available for use, modification, and distribution under the terms that allow for open-source and proprietary use.
What is Xerberus?:
Xerberus is a Risk Rating Protocol that empowers investors by providing metrics to facilitate a quick and objective assessment of any crypto asset. Our platform, Xerberus V1, is fully functional and will be entirely published by 23.12.2023. Until then, access will remain exclusive to our Xercher Community. We encourage anyone who would like to be granted access to the platform to reach out to us on our socials (Discord, X, etc.).
Our platform allows users to assess the risk associated with any crypto asset and explore the metrics underlying our Risk Ratings. What sets Xerberus apart from any other risk assessment system is its radical approach that relies exclusively on on-chain data. We believe that bad actors can easily fake credentials and use social media to deceive investors, but one thing they cannot do is hide their transaction records.
More concretely, the fundamental idea at the core of Xerberus is that transactions encode relevant information that can be used to guide the actions of rational investors. Because markets are efficient and priced in all available knowledge, we believe that Xerberus empowers its users by decoding this hidden information and making it readable.
Problem: The Risk Ratings offered by Xerberus Ltd. have proven effective in guiding investors, but their computation is centralized at Xerberus servers. This contradicts the decentralized ethos of blockchain technology and creates a vulnerability with a single point of failure by placing the entire system's reliability on Xerberus alone. This setup could lead to potential biases, technical failure, or security issues within the company.
Solution:
Impact on Xerberus: The proof of concept is up and running, and given we achieved our publication date of 23.12.2023, we are almost six months ahead of schedule for our last catalyst proposal. However, Xerberus is far from having realized its full potential. Expanding Xerberus to a decentralized network running on Cardano as a partnerchain would take Xerberus to a whole new level: A genuinely decentralized system would put Xerberus into the hands of the community and create a new layer of Cardano itself that can be used by other Dapps that want to build on the Xerberus Risk Engine. From Lending Protocols that wish to manage their Credit Risk to Option Protocols that look to improve their internal pricing engine, they need a risk engine that can be built on Xerberus.
Uniqueness of the Solution
The Benefits to Cardano
2. Funds: Our company is registered in the United Kingdom under the Company Number 14966821. Find out more by following this link: https://xerberus.io/company. By law, we are required to publish our balance sheets and statutes only on the government website, but we will make them available to the Cardano community in the form of a report audited by an external and certified accountant. Everyone will be able to see how Catalyst funds were used.
3. Xerberus Community Track Record: We have been active in networking, attending several Cardano events, and representing Cardano at various conferences throughout the year, including Web3 Berlin and Crypto Cruise Cologne, where we delivered keynote speeches. We are proud to have earned the trust of key members of the broader Cardano community. For instance, we serve as official advisors to the Orcfax Oracle Project. Furthermore, over the past year, we have been actively involved in the community, providing valuable information that has helped to shed light on several controversial events, such as the report on the failed
Ardana Project: https://xerberus.io/blog/the-life-and-death-of-ardana.
FACT Launch Report: https://xerberus.io/blog/the-fact-launch-on-wingriders-lanchpad.
Project Planning and Kick-off (Months 1-2)
Technical Design and Substrate Customisation (Months 3-4)
Core Development and Initial Testing (Months 5-6)
Risk Assessment Algorithm Integration (Months 7-8)
UI/UX Development and Beta Release (Months 9-10)
Final Testing, Documentation, and Official Launch (Months 11-12)
Answer:
The core team behind Xerberus consists of three highly accomplished and competent Co-Founders and an invaluable key member.
Simon Peters is the Director of Xerberus LTD. From 2019 to 2022, he served as the CEO of DECUS Network, a corporate venture based in Berlin. Under Simon's leadership, DECUS secured one million USD in venture funding, and the custody infrastructure developed under his supervision is currently used by institutional players within the EU. Throughout this period, Simon collaborated with several Tier 1 banks within the EU. He conducted activities at the intersection of emerging regulations, institutional adoption of blockchain technology, and the creation of technology capable of fulfilling the specific needs of these sectors. Within less than three years, DECUS Network and its clients were fully integrated into the BlockSize Capital Group. The technology developed under Simon's leadership is now employed by firms like Micobo GmbH, serving prestigious clients such as HSBC, Deutsche Bank, and Allianz. This experience makes Simon an excellent fit to work on Xerberus for the Cardano community: https://www.linkedin.com/in/snj-peters/
Noah Detwiler is the Chief Scientist of Xerberus LTD, responsible for developing the data models supporting Xerberus' Risk Assessment of Cardano native assets. As a physicist, he graduated with distinction and was recognized as an outstanding student on the Dean's List from Ariel University. Noah's background as an applied econophysicist equips him with a profound understanding of using mathematical models and statistical analysis to complex economic systems. His proficiency in intricate data modeling, coupled with his expertise in physics and econometrics, empowers him to devise innovative solutions for complex challenges, such as managing blockchain data's noisy and sparse nature. Throughout his journey, he has honed his skills as a proficient SQL and Python programmer: https://www.linkedin.com/in/noachdetwiler/
Matthias Guilbert is the primary front-end developer at Xerberus. Matthias served in the military for five years before applying the learnings from the French Navy Special Forces to the civilian business world, leading various challenging projects, occasionally in conflict zones. He became a software developer focusing on real-world solutions enabled by tech products. Matthias' greatest strength is the MERN stack. He is an avid technology enthusiast and continues to learn new programming languages: https://www.linkedin.com/in/matthias-guilbert/
Mihir Solankar is a full-time core team member and Xerberus' first employee. He is a skilled back-end developer who has been coding since his early teenage years. He worked in various positions and is a critical asset in developing our platform. (https://github.com/Mi88ir?tab=overview&from=2023-07-01&to=2023-07-11)
While this capable core team is central to the company, Xerberus extends beyond it. We enjoy the privilege of having an outstanding advisory board that includes people with solid institutional backgrounds and occupying influential positions. These individuals possess in-depth knowledge of financial market operations and believe in Xerberus and its capability to achieve its goals. Our first advisor has decades of experience in institutional trading. This individual has built quantitative trading strategies and managed hedge funds in London, New York, and Silicon Valley. This person currently holds a managerial position at the largest data broker in the market. Our second advisor is, among other roles, a former Executive Director of Goldman Sachs New York and currently manages his own proprietary quant crypto trading firm. We are not permitted to publish the full names of our advisors, but we can provide proof of engagement to trusted representatives of the Cardano community under signed NDAs.
Lastly, we are fortunate to have support from a dedicated group of community members and highly skilled freelancers who excel in building large databases and developing machine-learning models. As we continue to grow, we plan on using the funds raised to expand the team and hire two long-time supporters currently employed and waiting for an opportunity to join Xerberus Labs Ltd. full-time. The new team members will be responsible for building the Xerberus Nodes.
Please find the budget detailed in the spreadsheet provided below: https://docs.google.com/spreadsheets/d/e/2PACX-1vSzotWbRBcsoxp0dYNKU370NGyL0-SjOXYZtgdAEb2YchbVUjyWlm10grAdlCA5EomTjjYK701EU180/pubhtml?gid=0&single=true.
Funds will be used primarily to offset the costs associated with the expansion of expenses of the two talented professionals joining our team to help us build the Xerberus node and deliver our vision: a Blockchain Architect and a Senior Developer. The cost of hiring them both is $224,000 per year, which is an excellent value for money considering the high demand and skill level of these roles. This amount is based on a gross salary of $8,000 per month, which is ca. $5,000 after taxes, and provides good living standards in London. Xerberus will also commit funds to these human resources, complementing their salary with token and equity options as an incentive and a reward for their work.
This proposal totals approximately $225.000, assuming a stable ADA (Cardano) price of $0.30. This price will cover the described project. We acknowledge that the current ADA price is higher and hope it remains stable. Still, we must include a safety margin that covers the impact of market hardships on our employees and their families. In case the ADA price falls to something around $0.25. and the proposal totals approximately $187,500. We will still be able to fill the gap with other funds. If ADA prices strongly increase or decrease, we will scale the project up or down accordingly. However, if we stay within the ranges given above, the project will be executed as described.
Below is a screenshot of the budget:
Xerberus’ development relies on various funding streams, including private investment funds, different revenue streams from services we provide to other projects, and Catalyst funding (Fund10).
We offer a critical services to the community while creating a platform that draws investor attention to the Cardano Ecosystem and generating external revenue, Xerberus channels revenue back into the Cardano financial system via an out network of nodes. Additionally, we will be yet another case study community members can point to display the always-evolving strengths of the Cardano Network and set an example for the exploding partner chain ecosystem of Cardano. Our nodes will be open sources and can be a blueprint for future partner chains.
The different layers of value we create ensure an exceptionally high investment return per ADA spent, significantly benefiting the community.