Incrypture - Pooling DeFi

Develop pooling function of securitization on Cardano, so that DeFi investors can more easily allocate to different protocols together.

Mathematicians, computer scientists, structured finance specialists and an SPO that have traded Mortgage Backed Securities extensively.

Securitization will allow pooling of on-chain loans to reduce risk by risk transfer and shifting, while creating novel financial instruments in the process.

Risk transfer is passing on ("transferring") risk to a third party. On the other hand, risk shifting involves changing ("shifting") the distribution of risky outcomes rather than passing on the risk to a third party.

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).  See https://en.wikipedia.org/wiki/Securitization

Market:

Pilot implementation: Pool together Two lending DeFi protocols, e.g. AAVE and Compound loans

Product:

Build a modelling and structuring tool for pooling AAVE and Compound loans via smart contracts. The user / investor can specify the assets, allocation, duration and the smart contract will take care of everything. Working out this problem will provide the building blocks for a universal pooling protocol that is the first step to a structured finance solution for securitizing DeFi.

Budget:

50k, Developer costs 625 hours x 80/hr

Road Map:

                  Code Development                                                Business Development

Month 1     Identify promissing Lending Protocols                   Hypothetical Pooling use cases

Month 2     Specifications for Interoperability                           Apply for grants from lending protocols

Month 3     Code Development for MVP                                    Start community outreach / development

Month 4     Specify Testnet development steps                       Summarize actual use cases

Success Measures:

1.  Working Plutus / Marlowe smart contract that pools two different protocols on testnet

2. Specifications for a concrete use case with prospective TVL or other concrete metric of success.

Project White paper:

https://drive.google.com/file/d/1DnQh_0FTh266Wh9nIrsl73wW_4bP6PyI/view?usp=sharing

Team Incrypture: [Contact - adilabd@incrypture.com****]

Adil Abdulali - Founder

• 10 years experience structuring and trading mortgage and asset backed securities on Wall St
• 17 years seeding and investing in Hedge Funds (Protege Partners and MOV37)
• MOV37 thesis focused on crypto, AI, machine learning strategies
• MIT Masters; initial backer of Digital Currency Initiative 2015

Sean Kim - Founder

• Application software engineer,with 30 years of enterprise-level database design expertise
• Built Credit Suisse Prime and FICC Derivatives platforms, used to manage multi-billion dollar books
• Deep experience with Intex and other structured product apps
• Skilled at managing engineering teams, and directly writing code

Michael Grossberg - Advisor

• Professor, Computer Science, Grove School of Engineering, City University of New York; Founding Co-director of the Master's in Data Science and Engineering
• Faculty positions at Hebrew University, The Max Plank Institute, and Columbia University
• Published in Science, ACM Transactions on Graphics (SIGGRAPH), IEEE Transactions on Pattern Analysis and Machine Intelligence, Medical Physics, and Advances in Meteorology
• Ph.D. in Mathematics, Massachusetts Institute of Technology

Andrew Chasen - Advisor

• 30+ years of creating software for modeling structured finance transactions;
• Created a library of over 20,000 modeled transactions for use within various analytical and risk management applications
• Sold original modeling business to Markit (now IHS Markit) in 2006;
• Involved in several new business as investor and advisor