What is ALICE token and how can you use it?
The key component to provide a trustless DeFi protocol
ALICE is a ERC-20 token issued at 11:26:01 PM on August 14, 2019 with a supply of 25 billions. It is used to provide a trustless system within the AliceFi ecosystem.
Trustless
AliceFi is a trustless DeFi protocol. What does it mean that it does not require trust?
Consider a centralized crypto exchange. You would deposit and trade cash or assets in exchange wallets. The basic principle of exchanges is that your cash or assets are exchanged for other assets based on the orderbook of the database that the exchange has built on its own.
If the exchange tries to cheat users, manipulate the orderbook or withdraw all the assets, the user has no involvement. All you can do is to trust the exchange that they will not cheat you.
But in AliceFi you don’t have to trust anyone because you control your own private key. Your property is actually what you own. It’s a completely different model from a centralized exchange.
AliceFi means you don’t need to trust anyone.
You don’t need to trust in people, you can trust the code. AliceFi’s backend is written on smart contracts. Since smart contracts operate on the blockchain, the logic is guaranteed to work. Once a smart contract is deployed, it is permanently recorded on the blockchain thus no-one can change it.
Suppose you have a smart contract that says, “If a person deposits 100 DAI, he/she can withdraw 100 DAI at any time later.” As soon as this contract is released, the above promise is guaranteed forever as long as the blockchain exists. So it’s a system that doesn’t need to trust anyone.
Oracle Issues
This smart contract looks perfect, but it has one big drawback. That is, only the data recorded on the blockchain can be referenced by the smart contract. Smart contracts cannot read data outside the blockchain, such as today’s temperature in Seoul, flight cancellations, and prices of ERC-20 assets.
So someone needs to inject this data into a smart contract, which we call oracles. And here we meet the oracle issue. Smart contracts have no choice but to trust the data injected by the oracle. Because you need to trust oracles, you would have trouble creating a system that is trustless.
Oracles’ role in the AliceFi ecosystem is the operation of loans backed by collateral. They are called operators and must provide the market price for each collateral token (ETH, ERC-20, EOS, BNB etc) and properly liquidate the loan that has entered the liquidation phase.
The main purpose of the ALICE token is to provide operators with obligations and rights. Whoever stakes more than 25,000,000 ALICE tokens can become an operator and get paid for hard work for the system!
But if they don’t work honestly and try to trick the system, they will be penalized for the staked amount according to predetermined rules. In other words, their assets are slashed. This allows AliceFi to build a system that doesn’t need to trust oracles! For more information on the operators and staking, please refer here.
Token Distribution
25,000,000,000 ALICE tokens were initially issued and no additional tokens will be issued. The distribution ratio of issued tokens is as follows.
Team
The AliceFi team is allocated 10% (2,500,000,000) of ALICE tokens. You can see who is working in AliceFi team on LinkedIn and more members are joining.
Private sale
AliceFi’s roadmap by the end of 2020 has been announced (including development of the mainnet). The funds to develop the system reliably are raised in private sale, for which 10% (2,500,000,000 ALICE) are allocated.
Reserve
Urgent liquidity supply may be needed, for example due to changes in market conditions or rapid growth in demand for funds. 10% is allocated for this. This quantity will be used only in urgent circumstances, after obtaining community consent. 10% (2,500,000,000 ALICE) are allocated.
How to get ALICE tokens
Initial Free Offering
The AliceFi team is seriously concerned about negative results that can come from token sales to the public (ICO). Instead, AliceFi is conducting an Initial Free Offering (IFO), which provides ALICE tokens every 24 hours for free to users who have deposited DAIs. 70% (17,500,000,000 ALICE) are allocated for IFO and this supply has been transferred from Ethereum network to PlasmaChain, where AliceFi is operating. Tokens sent to PlasmaChain can be found here.How to get ALICE tokens
Participate in IFO
This is a free way to get ALICE tokens. After you start saving DAIs, you will receive the same amount of ALICE tokens free every 24 hours as the amount DAI deposited. Interest on DAI savings (earning 8% annual rate) is also accrued!
However, this method makes it difficult to obtain large amounts of tokens at once. You must stake at least 25,000,000 ALICE to become an operator, which is the amount you need to save $25,000,000 DAIs for free in one day. In reality, it’s not easy to have such a large amount. Therefore, we have prepared the following method for potential operators.
Purchase from within AliceFi app
For those who want to be an operator, we sell ALICE tokens within AliceFi app. You must have DAIs to purchase it and it will be exchanged at the rate of 1000 ALICE = 1 DAI. This token will be deducted from the Private Sale volume. There are no ALICE tokens listed on the exchange yet, so this is the only way to buy them.
Caution: Only purchase ALICE for the purpose of becoming an operator. The AliceFi team is seriously concerned about the side effects of the public sales of tokens. Never buy for investment purposes. The AliceFi team does not guarantee the price of the ALICE tokens and is not responsible for any problems caused by it.
What you can do with ALICE tokens
Collateral Token Listing
AliceFi’s lending system does not require any permission to list a collateral token. Anyone with 25,000,000 ALICE tokens who selected any ERC-20 token as a collateral then staked ALICE is entitled to work as an operator of that collateral from that moment on. If you staked on a collateral token that is already listed, you need to collaborate with existing operators.
Operator Node Operations
If you chose to stake ALICE at a specific collateral, you are now an operator. The operator is responsible for providing the price feed and liquidate loans, which is done automatically by the node software provided by Alice SDK. Thus, operators only need to build a backend infrastructure for running the node 24 hours a day. The whole process is automatic.
Profit Sharing by Stake
If you become an operator and operate the node normally, you receive profit from the loans. The AliceFi team gets no exclusive benefit from the system. Only those operators of the collateral tokens will receive a profit based on the percentage of their ALICE tokens staked.
Exchange
There are no exchanges where ALICE tokens are traded yet. But soon you will be able to trade with decentralized exchanges. Users who receive ALICE tokens for free can use them to exchange with other tokens. Whenever the ALICE token is listed on the exchange, we will notify you through various channels.
