The Network Operating System Liquidity Provisioning System — Part 1: Uniswap integration
The booming development of innovative protocols in the DLT space has brought hundreds of nascent tokenized systems to the market over the last several years, including a range of different technical solutions, decentralization schemes, and economic models. As firm believers in decentralization, the team at Trace Labs sees this vast innovation landscape as a very promising one, out of which many well-thought-out, battle-tested and highly resilient systems will become the next layer of the global IT trust infrastructure.
However, being novel systems, most, if not all tokenized networks have a very cumbersome onboarding process. It is still very hard to start using many of these technologies, especially for traditional businesses. The two key problems are the steep learning curve when it comes to technology implementations and the complexity of handling cryptocurrency in an enterprise environment. These challenges — among others — have been the key drivers for the development of Trace Labs’ Network Operating System (nOS) which aims to abstract these complexities as much as possible for businesses adopting DLT technologies today.
Launched earlier in 2019, the nOS has been used to help organisations capture and structure millions of events that transpired in their supply chains with GS1 global standards, issue tens of thousands of verifiable credentials, and link that data in the OriginTrail Decentralised Network (ODN). In doing so, the Trace Labs team successfully integrated the ODN with several legacy systems of diverse solution providers (Salesforce, SAP, Microsoft Navision, and Oracle to name a few). Going forward, nOS is becoming the centerpiece technology interfacing with a series of blockchain-based solutions recently launched by the British Standards Institution (BSI), thus catering to both organizations and individuals aiming to build resilience in their supply chains. This paradigm shift is ensuring that trusted data exchange is brought about by complementing rather than replacing traditional IT infrastructure.
nOS core services together with those of the networks it abstracts — such as the ODN, Ethereum, vendor cloud services, and legacy networks — present a technological stack which enables abstracted automated integrity validation, and linked data across systems, including sovereign custody of collected information and its portability across the infrastructure.
In particular, DLT networks often require the usage of a native token, which entails periodically obtaining a specific amount from a trusted source, securely storing and managing the assets across implementations, and finally integrating existing systems and Dapps with the aforementioned networks. Ideally, we would be able to abstract much of this infrastructural complexity and allow developers and system integrators to build applications with most of this complexity handled “under the hood”, while keeping decentralization high by enabling organizations to govern their implementations (including the ability to provision network nodes within their cloud environments and with full custody of their keys).
This is where nOS leverages its liquidity provisioning service (LPS). By obtaining tokens on a need-to-have basis from one of many liquidity pools, the nOS LPS enables users of nOS to be onboarded in a traditional cloud model (pay-as-you-go credit system, paid in traditional currencies). With the LPS, the system integrators can focus on the outcome — building network applications based on trusted linked data — as all the liquidity provisioning, token management, network gateway maintenance, and system monitoring happens under the hood.
The first nOS LPS source of liquidity is the Uniswap V2 automated liquidity protocol on Ethereum blockchain (more information on Uniswap can be found on the project website and in their whitepaper) currently being implemented by the Trace Labs team.
In this way, anyone that owns TRAC tokens can participate in the wider OriginTrail ecosystem by providing liquidity as a Uniswap liquidity provider. Being a completely decentralized and transparent system, Uniswap is a great tool for enabling the LPS to run without the need to only rely on centralized exchanges and potential trouble caused by bad actors in such integrations.
To provide long-term-stable liquidity provisioning service, the nOS LPS will integrate a multitude of liquidity sources, both from decentralized and centralized services. The initial Uniswap integration is the first stepping stone on the path of providing a seamless cryptocurrency provisioning scheme for enterprise developers and system integrators, enabling them to focus on what they do best: building efficient, trusted applications.
