Lightency Documentation
- Version: 1.0
- Author: Jaafar Saied
- Created: 6 December, 2022
- Update: 9 Avril, 2023
If you have any questions that are beyond the scope of this documentation, file, Please feel free to email via the contact section .
Introduction
Lightency in Nutshell :
Lightency is
a web3 energy platform
, it enables negative carbon impact utility token, allows
community governance to holders and traceability of energy
investment as well as green energy production. Lightency’s model
allows for regions lacking renewable electricity access to
create self-sustainable communities able to generate and consume
energy dynamically. Furthermore, Lightency transforms carbon
offsets into investable assets through state-of-the-art Energy
Attribute Certificates.
Lightency is a multi-faceted holistic Web3 platform that allows
the utilization of the blockchain technology to maximize and
optimize energy distribution and production. Additionally,
Lightency makes use of Decentralized Finance to provide an
alternative funding scheme for green energy projects.
Lightency’s DeFi solution additionally offers crypto enthusiasts
from yield farmers to VCs the opportunity to make a green impact
and offset their carbon footprint while making attractive
returns.
Lightency, a Utility Token ?
Lightency token is packed with diverse utilities, including but not limited to the following:
| To Green Energy Investors | Green energy investors will utilize the token to invest in Lightency’s Energy Fund, and as a result be offered exclusive access to attractive returns and an active role in the governance of the fund and the choice of its investments. |
| Reward | Partners, affiliates, and stakeholders will be rewarded with vested tokens according to the allocation and schedule of the tokenomics model. |
| Lightency DAOs | The Lightency DAOs members have a fundamental role in the roadmap and decisions of the project. The token in this case will be utilized to submit, vote, and reject proposals. |
| Swap | The Lightency token is used to auto-convert to desired tokens prior to cash-out procedure. |
| Stake | Lightency offers diverse staking packages depending on the lock period. Yield farmers will stake Lightency tokens to get attractive returns and make a green impact at the same time. |
| Energy certification | Households and organizations will have the opportunity to acquire energy attribute certifications to offset their carbon footprints. |
| Powerchain | Grid operators will use Lightency tokens to purchase the powerchain service. |
Token economy
Lightency is a utility token that allows holders to benefit from
all the features in the platform while incentivising the early
adopters, thus this token gains in value through its adoption
rather than speculation and high dependency on the evolution of
the crypto market. Avoiding the volatility of the crypto market
is key to sustaining user loyalty and creating organic growth.
Lightency Users:
Let's identify in high level the Persona of Lightency users
-
Crypto VCs :
Crypto Investors who look to Medium-long term investment will be able to invest in Green Energy projects through the energy fund as well as earn attractive passive income and participate in LightencyDAO.
-
Yield Farmers/ Crypto VCs/ Retail Investor :
Crypto enthusiasts looking to generate attractive returns while making a green impact
-
Vesters :
Crypto enthusiasts looking for exclusive packs while locking tokens for a considerable period
-
Organisations :
Any Organization that is looking to use the energy certification platform to certify green energy production, or to buy and sell a green energy certificate.
-
Utilities & DSO* :
*DSO : are the entities responsible for distributing and managing energy from the generation sources to the final consumers Typically.
Energy distributors who have interest to incentivise their customers to produce local green energy. PowerChain allows an energy marketplace where local producers can provide their energy exceedance in a local community marketplace.
Token model
Lightency token should be low in volatility, non-inflationary.
The token price should grow proportionately with Lightency token
utilities, which is directly related to the growth of the active
users. The token bonding curve (BC) is an Aristotian[1] view of
money, in the sense that each token issued is backed by a stable
store of value (fiat or stablecoin). This ensures less
information asymmetry and reduces the volatility of the asset.
Creating a fixed supply with no underlying asset follows the
Platonic Vision.
Bonding curve
-
How does it work? :
A bonding curve contract issues its own tokens through buy and sell functions. To buy tokens, you send cryptos/fiat to the contract which swaps these assets to stable coins and issues Lightency tokens following the value of the cryptos/fiat received.[2]
-
The Sell function works in reverse:
First you provide the bonding contract with permission to take the amount of tokens you want to sell and then you trigger the function to take those tokens from you. The contract will calculate the current average selling price and will send you the correct amount and burn the tokens sold. Token price is then updated following its relation with the token supply.
Advantages Disadvantages The advantage of the bonding curve is that it ensures organic growth. Indeed, the price of the token only increases according to the increase in demand. This prevents us from phases of speculative bubbles, leading in most cases to extreme volatility. The disadvantage of the bonding curve is that it allows for printing and burning to occur forever, they allow for supply to grow without bounds Mitigation: Alternatively, some bonding curves hard-code a cap to the number of prints that can exist in the market. Hard coding a hard cap to no longer have the supply infinity constraint will ensure that the price of the token does not become stationary. Once the hard cap is reached, the token will then trade in the secondary market.The advantage with the reward system is that the dilution of the token's value is almost non-existent, and given the deterministic nature of the token's price, Lightency can estimate the price impact of the reward distribution. A disadvantage of the bonding curve, it flows from its nature, namely that each token is a standard of value. Rewards can only be distributed by collecting part of the profits generated from the activity within the Lightency ecosystem. Mitigation: Using an augmented Bonding Curve (ABC) allows implementing vesting mechanisms. Dedicating initial funds to buy tokens to charge the reward and incentive pools.
Price
The Price per token increases as the number of tokens issued increase.
For instance, a very simple version of the contract specifies
that the price per token is equal to the number of tokens
currently in existence. More specifically, to sell a token, the
price is equal to the number of current tokens but to buy the
price is equal to the number that will exist after you purchase.
For instance, if there are 10 tokens in existence then selling 1
will earn you 10$. If you want to buy the 11th token, you’ll pay
11$ for it and so on.[2] -Buying slides you up the price curve
and selling slides you back down. In the example above, if there
are 9 tokens in existence then we know that buying another token
will cost 10$. However, selling a token into the contract will
earn us 9$. If I sell another token, it will earn me 8$. I could
sell another 3 and be down to 5$. But then if I buy, it will
push the price up to 6$ again. So the price adjusts
dynamically.[2]
What happens if the price in the secondary market is different from the price on the Bonding Curve?
Arbitrage
Furthermore, thanks to its AMM nature, the Curve will also
stabilize the prize all over the network. Even if the community
creates additional exchange solutions for the token like a DEX
pool, sudden price fluctuations will lead to arbitrage
opportunities between them and the Curve that can be exploited
by anyone therefore stabilizing the price no matter where the
token is trading.[3]
Source : Click here
Lightency pillars
As the Bonding Curve contract is the only responsible for
minting new tokens, we created pools owned by Lightency team
stakeholders to interact with the Bonding Curve
The treasury
The Treasury is a contract that feeds the staking pool, the
reward pool and the energy fund pool as well as the team pool
Energy fund pool
It is a pool dedicated to VCs to purchase Lightency tokens with
a discounted price following a vesting period. This pool is
governed by the treasury. This allows the treasury to govern the
received funds and invest in the energy projects. As the token
price can only increase with adoption, Lightency treasury buys a
big portion of the token at the Bounding Curve launch. This
figure below presents the initial scenario of the Token launch
and the interactions between the different pillars.
User / System experience
In the next section we will explore the interaction between the
treasury, the Dao, the energy Fund and the Bonding Curve. Also
present on high level how the bonding curve interacts with a Buy
and Sell Function, in this case with the Treasury but it's the
same process with any user.
Staking
Implementing a staking mechanism is very important to decrease
the circulating supply, have an overview of the big unstaking
upcoming event in order to decrease any potential volatility in
the token price. Staking will encourage users to not cash out
but to lock the token in the platform to earn passive income.
Lightency DAOs
To browse more detailed documenation, clik on the : Lightency DAOs
Lightency is a platform that offers decentralized financial
(DeFi) solutions, and it is built on the concept of
decentralized autonomous organizations (DAOs). DAOs are a new
way of organizing communities and making decisions, where the
power to make decisions is distributed among all participants in
a network.
In the context of DeFi, DAOs are becoming increasingly important
because they allow for decentralized decision-making and
governance. In other words, DAOs provide a way for the community
to collectively manage and govern the DeFi protocol.
The Lightency DAOs
are responsible for overseeing the development and governance of
the platform. Participants in the DAO have the ability to vote
on proposals related to the protocol's operation, such as
changes to the code, allocation of funds, and protocol upgrades.
By leveraging the power of DAOs, Lightency is able to offer a
more decentralized and community-driven approach to DeFi,
which aligns with the core principles of the blockchain
technology on which it is built.
Roles
-
Council :
Council members are whitelisted members.They are the most superior in the hierarchy . Only council members can add other council members . Council members are also the only members that can create a proposal. Council members can vote on proposals.
-
Community :
Community Members are the new joiner to the DAO only at one condition they must be stakers . Only stakers can join a DAO and become a community member. Community members can vote on the proposals listed by counsel members.
Proposals
The Proposals can be one of these types :
-
Fund a Specific Pool :
By specifying in the proposal the address of the pool that we want to fund
-
Burrow :
Burrow Stable coins from lending protocols.
-
Delete a Member :
A council member can create a proposal to delete a council member.
-
Community Pool :
is to decide on upcoming features, updates, and any strategic decision that can impact the economy of the token.
Energy Attribute Certification
Energy certification platform is a system for the issuance and
management of Energy Attribute Certificates (EACs). EAC is an
official document which guarantees that produced energy comes
from a renewable source. There are different standards that
regulate how data is stored and validated. In Europe, this
document is called Guarantee of Origin (GO), in North America,
it's called Renewable Energy Certificate (REC), and in parts of
Asia, Africa, the Middle East, & Latin America the governing
standard is International REC (I-REC). Standards do vary, but
they all share the same core principles.
The main purpose of EACs is to act as an accounting vehicle to
prove that consumed energy came from a renewable source. EACs
are mostly used to address sustainability reports regarding
Scope 2 emissions.
DAO oriented
As the users of the platform are organizations who have
different policies and should interact with regulators and
standardization bodies, the governance of the platform is
composed of different DAO´s that interact with each others to
track the energy produced and interact with the different
stakeholders with a set of rules and standards that protect each
institution.
Solution
The Key stakeholders are :
organization & issuer, each organization can create Its DAO with
predefined rules to allow access to its employee as part of this
organization with a set of responsibilities. Same for the
issuer, they can create their Dao and allow members to
participate following predefined rules. The issuer DAO is used
to enable issuers to mint EAC's upon request based on provided
generation evidence by the organization. Besides just minting
new EAC’s, the issuer DAO also ensures that the certificate
lifecycle and organizations are always in compliance with the
regulation. The exchange module is used to facilitate trading
between buyers and sellers of EACs. The exchange module is built
on the bases of the order book system where sellers post asks
and buyers post bids. Once there’s a match based on EAC criteria
and price the trade is executed. The UI module is the glue that
connects all underlying modules and makes them accessible to the
end-user. It’s also a demonstration of how easy it is to build
an open, transparent, and regulatory compliant market for EACs
around the world.
Powerchain
Powerchain is a decentralized energy management system that
allows energy tokenization to better balance the grid and
provide a transactive energy marketplace to increase energy
efficiency for the grid operator and incentivise energy
producers with a better monetisation. PowerChain is composed of
2 Modules ; Energy management system, and an energy market
place. In figure 7 we explain the relation between PowerChain
and an energy installation. The EMS is designed with a
decentralized infrastructure and adopted from OpenEMS, a
European energy software association.The energy marketplace is
composed of 3 main algorithms that we will explore in the next
sessions to maintain an efficient and autonomous marketplace.
Powerchain
-
Description :
The EMS has the role of maximizing the efficiency of the MG and optimizing the distribution of available production on the grid. This system communicates, in real time, with devices and services to collect data, perform analyzes and calculations, and execute control and processing algorithms. In other words, the EMS manages the energy flow in such a way to keep the entire network in balance. In order to do so, the system has to be in continuous communication with the devices and the available services on the grid. This requires that it implements multiple communication protocols in order to ensure interoperability.
-
Architecture :
The EMS is composed of a central node and a local node. The local EMS is directly connected to the devices (e.g. production system, meters, storage system, etc.), it monitors the system, collects data and executes control commands. The central component manages and optimizes the energy flow of the entire network by communicating with the decentralized local EMS. It provides data aggregation, monitoring and visualization of local components. Each component has its own user interface adapted to the specific needs of the user (prosumers for local EMS, network manager for central EMS). The interface should display real-time network data and status.
