Enigma Catalyst will be an open platform where quantitative traders and data scientists can build, test, deploy and monetize trading algorithms within a native, decentralized crypto-exchange. The Enigma Catalyst ecosystem will be composed of two primary features: a decentralized crypto-exchange and an open source software development kit (SDK) for data scientists. Data, such as proprietary data sets, personal information, trading algorithms, and order books will be decentrally stored in a distributed database using a modified Kademila DHT protocol. This is the same distributed data storage protocol used by BitTorrent and Storj.
The decentralized exchange will host cross-chain atomic swaps between users on an off-chain state channel. The Enigma Catalyst exchange is modeled after Bitcoin’s Lightning Network and Ethereum’s proposed Raiden Network. Enigma Catalyst’s main innovation on this existing technology is to enable decentralized order matching. Liquidity providers on the exchange network would essentially function as independent (but connected) crypto-exchanges managing their own order books. Liquidity providers would earn a portion of trading fees as payment for their services to the network.
Historically, decentralized exchanges have suffered from a lack of liquidity and user adoption. Decentralized exchanges face fierce competition from established, centralized exchanges that benefit from accumulated network effects. Enigma Catalyst hopes that the trading algorithm marketplace will attract users and that tokenized rewards for liquidity providers will incentivize market makers to join the network.
The Cosmos Network is also proposing the use of interconnected blockchains to facilitate cross-chain atomic swaps. OpenANX, which also recently completed a token sale, wants to improve decentralized exchanges by having centralized exchanges contribute their own order books.
Software tools for data scientists
Enigma Catalyst will provide data scientists with a suite of API tools to help them build, test and deploy trading algorithms on the Enigma exchange. The Enigma trading SDK is based on Zipline, an open-source back-testing engine designed for traditional markets. Enigma Catalyst plans on rebuilding it to adapt to cryptomarkets. The Enigma Catalyst team also plans on developing a web browser IDE based on a modified notebook interface.
What is the token being sold?
The Catalyst Token (ECAT) will function as the sole means of payment between users and as means of accessing network services. There are four main user groups on the network:
- Trade algorithm developers: can monetize their trading strategies in two ways. First, they can participate in periodic competitions in which high performing strategies will be rewarded with ECAT. Second, they can pay a deposit of ECAT to place their trading strategy on the open market and attract investment capital. The management and performance fees that developers earn will also be paid out in ECAT.
- Data Curators: create and license proprietary data sets which they can sell to other users.
- Investors: Make a deposit in ECAT to access the trading strategies marketplace where they can invest in the strategy of their choosing.
- Service providers: Service providers are nodes that perform services to the network, e.g. act as liquidity providers in the decentralized exchange or provide computational power and storage capacity to the network.
ECAT will also be used to pay fees for using the exchange and accessing network computational power and storage.
|Incorporation status||Enigma MPC, Inc.|
|Team openness||Fully transparent|
|Blockchain Developer||Guy Zyskind|
|Technical White Paper||Yes|
|Available Project Code||Yes|
|Role of token||Payment and Access rights|
|Token supply||100 million|
|Distributed in ICO||50 million|
|Emission rate||No new coins created|
|Consensus method||Proof of Work|
|Sale period||August 21st, 2017 to August 31st, 2017|
|First price||proportional to participation|
|Investment Round||First public offering|
|Token distribution date||August 25th, 2017|
|Min investment goal||10 million USD|
|Max investment cap||30 million USD|
|How are funds held||Unclear|
|Minimal Viable Product||An Algorithmic trading library is avalaible in their github|
|Bonus schedule||No Bonus|