I. What is Lithium?
Lithium Finance serves as an Oracle utilized for assessing the worth of assets that lack liquidity. Specifically, an Oracle refers to a system that delivers up-to-date data to blockchains and smart contracts. This enables users to accurately determine the prices of challenging-to-evaluate assets, including Pre-IPO shares, private equity, and other illiquid assets.
II. History of Lithium
The two key members and founders of the project are David Lighton and Steve Derezinski.
- David Lighton: Has many years of experience in the cryptocurrency market as Founder and CEO of the SendFriend project. SendFriend is a blockchain fintech startup that has received investment from Techstars, Ripple and Barclays.
- Steve Derezinski: Longtime lecturer in the field of blockchain at the prestigious MIT University. Steve has helped more than 80 startups raise capital with a total raised of up to 250 million USD.
III. Striking Features of Lithium
According to Lithium Finance, the current landscape of DeFi includes numerous Oracles, but many of these projects suffer from delayed price updates and inaccuracies, posing a barrier for wider DeFi adoption.
Lithium Finance aims to address this challenge by implementing the DMI (Determinant-based Mutual Information) mechanism, which involves two key roles: the Wisdom Seeker and the Wisdom Node.
The Wisdom Seeker acts as a quote finder for assets and utilizes the Lithium token (LITH) as a bounty for locating quotes. On the other hand, the Wisdom Node serves as a quote responder for assets and is required to stake LITH.
For assets that involve company shares, Lithium Finance will conduct polls to gather expert opinions, rewarding quality answers with LITH and deducting LITH from those providing poor answers.
In the realm of real estate, where valuation can be complex, Lithium Finance leverages data and scientific calculations to provide users with the best possible predictions regarding the optimal time to purchase an apartment, particularly during periods of escalating prices.
Furthermore, in unconventional domains such as antiques, Lithium Finance collects data on these items to draw conclusions about their value, enabling users to obtain insights into the worth of the antique they are interested in.
IV. Core Technology of Lithium
The active structure of the Lithium Protocol involves two key roles: the Wisdom Querier (Price Seeker) and the Wisdom Node (Pricing Service Provider).
The Wisdom Querier represents various entities such as cryptocurrency projects, investors, private equity firms, mergers and acquisitions investment banks, and street analysts who are seeking accurate pricing information to make informed decisions. By aggregating a global pool of information, the protocol aims to provide the most competitive rates available. The Wisdom Queriers will also provide feedback on the accuracy of the pricing information, contributing to the refinement of the data and resulting in more precise rewards.
To access the information, Wisdom Queriers stake LITH tokens with their queries to incentivize the provision of accurate pricing data.
On the other hand, the Wisdom Nodes consist of experts who possess knowledge of the latest prices of private companies. They can be brokers, investors, or individuals familiar with the workings of the private market. These experts, who usually have access to the most up-to-date trading prices of private companies, play a vital role in eliminating the opacity of the market. They stake LITH tokens as well to provide information on price data.
The selection and rewarding mechanism work as follows: The answers provided by the Wisdom Nodes are compared with a matrix of correct answers. Incorrect responses are identified and separated from the consensus of correct answers.
If a Wisdom Node’s answer is incorrect, their staked tokens are slashed (cut off) and redistributed to the correct answer providers. Additionally, the correct answer providers receive rewards from the Wisdom Querier for their accurate contributions.
This mechanism ensures that the protocol maintains a reliable source of pricing information, with incorrect answers being penalized while accurate providers are incentivized and rewarded.
V. What is LITH?
1. Detailed Information about LITH
LITH is a utility token issued by Lithium Finance platform with reward mechanism and stake token for questions and answers. During the question and answer process, each individual will stake a certain amount in the form of a bonus (when asking a question) or confidence (when answering). This combination of zoning produces stronger signals towards the best information.
2. LITH Allocation
3. Use Cases of LITH
LITH is used to reward Wisdom Nodes, encouraging them to give correct answers. In addition, the Wisdom Nodes need to guarantee their answers by Stake LITH.
VI. How to earn & own LITH?
Users earn LITH by being able to buy, sell on Lithium, complete quests, or buy on the floor after listing.
VII. Which Crypto Wallets are suitable for LITH?
As an ERC-20 token, LITH can be stored in any wallet that supports ERC-20 tokens. Here are some popular wallets that are suitable for storing ERC-20 tokens like LITH:
- MyEtherWallet (MEW)
- Ledger Wallet
VIII. LITH Recent Developments
In the near future, Lithium Finance will focus on expanding Wisdom Node up to >200 Nodes until Q2/2022, as well as expanding relationships with companies not only Crypto, but also traditional economy. .
IX. Teams, Funds & Partners of LITH
2. Investment Funds & Partners
The above is Waytrade’s comment on the Lithium project which is our personal opinion, this is not investment advice at all. Investors should be responsible for their own decisions.
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