Whitepaper
(C) Vadims Conley - CEO of ZollarEXECUTIVE SUMMARY
The payment sector has always been deemed to be one of the most vital sectors for the economy to be able to function. Although there are various digital payment options, users still have to face hefty fees, security vulnerabilities, hacking of their assets, and third-party dependency. Cryptocurrencies were meant to replace the traditional financial system through the introduction of decentralization; however, when it comes to real-life usage consumers regularly face the same problems: their usability, complex transactions, and difficulties with conversion of the cryptocurrencies they hold into a fiat currency. Accepting, verifying, and processing cryptocurrency payments is still rocket science for many consumers. Zollar aims to resolve such issues and serve as the bridge between the cryptocurrency world and the real world. The goal is to satisfy consumer demands by providing them with a state-of-the-art payment processing token without compromising security, efficiency, or cost effectiveness.
Powered by a Binance Smart Chain Network, the native Token of bsc ecosystem. Zollar Token serves as the next generation payment token that combines all aspects of a modern-age payment processing with added features such as: peer to peer exchange, storage of value, blockchain based security, decentralized ownership, proof of staking based consensus, a deflationary approach towards supply, and the provision of lucrative staking rewards.
INTRODUCTION
Zollar, hereafter referred to as ZLR, is a modern-age blockchain project that aims to resolve problems associated with traditional payment processing by providing a decentralized crypto token i.e., ZLR, and providing Instant payment processing in a seamless, cost effective, and efficient manner. Deployed on Binance Smart Chain Network, the Zollar Token will work as a multi-feature payment token that allows users to transact in a seamless, risk-free, and cost-effective way. It will create a new ecosystem where all of the problems associated with traditional payment processing are addressed profoundly. The user doesn’t have to rely on central authorities whose actions may result in a system collapse.
VISION
We believe the underlying factor which will continue to define blockchain and defi products is the ability to give people and businesses more power and control over their finances. This is the driving force behind the creation of Zollar Token. We will provide a payment currency to the people where they can freely utilize their crypto assets in a fully secure, fast, and affordable online environment while providing them with lucrative earnings in the form of staking rewards in a seamless, risk-free environment.
BACKGROUND
The financial industry is evolving. Blockchain and defi technology have been and continues to revolutionize the way people interact with money and finance. The introduction of Bitcoin, the first-ever cryptocurrency by Satoshi Nakamoto in 2009, enabled people worldwide to transfer money, trade, and pay for shopping around the globe within a decentralized, peer to-peer network. As per coinmarketcap.com, cryptocurrency has become a 1.8 trillion dollar industry; however, despite the phenomenal growth of this market the dependence on third parties to undertake day-today financial-related activities continues to grow. The section below describes some of the major issues that are faced by consumers today.
PROBLEMS
PAYMENT PROCESSING IS SLOW
Traditional payment processing is slow. Despite all of the technological revolution in the digital sphere, it can still take days for a bank or a payment processor to complete a simple transaction. These payment delays cause unnecessary stress and frustrations while you wait for your fiat to reach your account.
SPENDING ISSUES WITH DIGITAL ASSETS
Despite Digital Assets being on the rise, they still lag when it comes to mass adoption and real world utility. In similar words, it is still a bit harder for its holders to find a place where they can spend their digital assets.
NO AUTHORITY REMAINS WITH COMMUNITY
Traditional centralized payment companies and digital assets don’t grant any decision making capabilities to their user base or their community. This lack of communal agency results in simple centralization of authority with the company’s founding team.
SECURITY ISSUES
Because of centralization there are multiple security issues associated with traditional payment processors and their digital assets, this makes them prone to hacking attacks and viruses which may result in investors and holders losing significant revenue in the case of a successful attack.
EXPENSIVE MICRO PAYMENTS
For micropayments such as tipping, the transactional fee charged by banks and payment processors is often higher than the amount being paid.
EXPENSIVE PLUGINS
Plugins provided for micro, small, and medium scale businesses are often expensive and as a result these startups are not able to afford them for long.
MONTHLY FEE, CARD LIMITS AND ACCOUNT MINIMUM AMOUNT LIMITS
Traditional banks and payment processors charge a user with a specific fee on monthly or a yearly basis; moreover, there are restrictions when it comes to debit/credit transactions and an account holder is required to maintain a minimum balance.
TIME TAKING KYC AND AML
Know Your Customer (KYC) and Anti Money Laundering (AML) are two important onboarding steps required under the Security Exchange Commission (SEC) and with financial regulators around the world. The pain point arises when these processes take weeks to complete (even when a user has submitted all of his/her credentials and required documents)
LACK OF TRANSPARENCY FOR THE INVESTOR
Traditionally an investor is barred from participating in the decision making process and doesn’t have any input on important matters within the company like how and where funds are being allocated.
CONCLUSION
To eradicate these pain points and lift people out of the frustrations associated with the unfairness, inefficiency and disappointment caused by a lack of change in the current banking system, our forward thinking traders and brokers have found a solution in the shape of ZLR that will disintermediate and commoditize today’s status quo.
OUR SOLUTIONS
INSTANT PAYMENTS
Zollar Payments are instant, making it a fantastic alternative to fiat by eliminating unnecessarily long waiting times. All payments are executed and recorded on a transparent blockchain instantly so that users don’t have to wait for hours until their crypto assets are received.
STATE OF THE ART PLUGINS
In order to enable startups, micro, small, and medium sized businesses to accept ZLR, we provide dedicated plugins that can be easily integrated into the websites of such businesses. This will enable website users to spend, receive, and tip Zollar Token easily - without any of the technical difficulties commonly associated with other cryptocurrencies.
COMMUNITY VOTING FEATURE
The community will be heard. The community will decide what we develop on the platform. In order to do so, each holder of the Zollar Token (as well as the merchants) will be able to vote through a percentage based, intelligent voting system embedded within the Zollar ecosystem on ideas proposed by us. ZLR will always add or remove services, markets, and initiatives as per the consensus of the community. We want to return power to the people and a decentralized platform will help us do so.
SOPHISTICATED TECHNOLOGY
ZLR is based on a sophisticated BINANCE SMART CHAIN (BSC) Network that works as a combination of proof of stake (PoS) and proof of working (PoW) Hybrid. This way, while at one end our users can enjoy staking benefits, they will also be able to earn returns on investment by securing the network through Proof of work.
DECENTRALIZATION
ZLR runs on a completely decentralized platform where the entirety of control lies with its users. Through the deployment of the platform on blockchain, central authority isn’t held by anyone - not even the founding body or management team - and ultimate control is given to the community. Furthermore, blockchain technology ensures that the platform remains immutable (even by data uploaders) because it is nearly impossible to hack, alter or corrupt data on the blockchain.
SAFE AND SECURE PAYMENT PROCESSING
Our goal is to create a safe and trustworthy environment for the community to send, receive or transact their Zollar Tokens. Our decentralized blockchain ensures that no central authority has editing or manipulating access to our network and thus all transactions are executed in a safe and secure way.
LOWER OPERATIONAL AND TRANSACTIONAL COSTS
ZLR will significantly lower the service fees charged by payment processors. In the current market, cross border payment processing takes up to 5%-8% of the total payment amount. Furthermore, the buyers have to wait for days or sometimes weeks for payments to be processed. As a businessperson, this is not sustainable because it slows business operations to a crawl. We aim not only to lower costs but to provide a seamless and transparent payment process.
MERCHANTS GET A WIDER CLIENT BASE
By accepting cryptocurrencies as means of payment, merchants will be able to attract entirely new demographics of customers. Cryptocurrencies know no borders or limitations! This will enable businesses to expand their operations into new markets and to offer revolutionary goods and services.
LUCRATIVE STAKING REWARDS
Those taking part in the initial phases of the project will have an opportunity to fund something with real value, beyond mere speculation. Apart from being tradable on the bsc crypto exchange, the Zollar Token will be used to lower the fees of virtually all bsc services as well as to grant access to exclusive staking benefits (conditional). To gain access to these benefits, the customer needs to transfer the Zollar Token to bsc, resulting in a smaller supply on the market. Holders of the Zollar Token will, therefore, see a gradual appreciation in value with time.
SEAMLESS KYC AND AML
The Zollar Platform will develop an Artificially Intelligent KYC and AML software which automatically confirms and executes thousands of applications within minutes. As a result, we will ensure that the Zollar Platform remains complaint to international regulations while enabling the timely processing of user applications.
TRANSPARENCY PROVIDED
All transactional activities are recorded on the bsc blockchain and are available for public review any time through bsc Blockchain explorer. Not even a single transaction can be altered, deleted or manipulated and the entire record remains immutable, forever.
TRUSTLESS PLATFORM/MIDDLE MAN ELIMINATED
By implementing smart contract based technology, mutually set agreements between users and merchants would be recorded in a decentralized blockchain that can never be altered or corrupted.
Zollar TOKEN
Zollar is a decentralized virtual currency based on the BINANCE SMART CHAIN (BSC) Network. It serves as a robust, multi-featured digital asset token based on a combination of proof of stake and proof of work consensus algorithm. It has significant potential in hand for its holders and community. Zollar performs a manifold of functions but perhaps the number one benefit it provides is as a utility within a payment processing platform that significantly reduces the conventional banking and transactional overheads while simultaneously eliminating the timeline inefficiencies and security issues that factually plague classical banking. The Token, backed by its community, would be used for daily transactional activities happening within the Zollar financial ecosystem. It will serve as a store and exchange value between users in an efficient environment at reduced costs.
SECURITY
Zollar Token is based on the latest innovative contract technology of the binance smart chain blockchain making it one of the most secure cryptocurrencies. It allows a peer-to-peer mode of payment, so you won’t have to worry about a third party getting any information or your data. All of your data is encrypted and your digital assets are reserved in a wallet that only you can access.
DECENTRALIZED BLOCKCHAIN
Zollar Token blockchain is capable of handling any amount of transactional volume all of the time without the chance of the network going down or suffering sluggishness. Unlike traditional payment methods, there is not a single point of failure and all transactional activities are open and transparent to the whole community. In three words, ZLR is reliable, transparent, and secure.
PRIVACY
With Zollar Token, users can enjoy the advantages of using a public blockchain while still being sure that their private information is protected.
DEDICATED WALLET
Zollar Token is supported by its dedicated encryption-enabled Zollar wallet. The encrypted technology of these wallet would allow you to secure your Zollar Tokens so that you can view transactions, send or receive your coins, and check your account balance anytime.
LOWEST FEES
Zollar Token will offer significantly lower fees than any other major online payment system or bank enabling users to send, receive, or perform any crypto transaction at minimal costs.
PORTABLE
It is inadvisable to carry large amounts of any current major currency. Cash amounting to millions is obviously risky to carry for several reasons which is why Cryptocurrency investors prefer it to its physical counterpart. With Zollar Token, you can easily carry millions of dollars with only a few megabytes of memory.
TAX & REWARDS
Tax is 5%. Half of that is burned and the other half is sent back and shared between all holders. The rewards for Zollar are set at 2.5%. This allows holders to earn more units at each transaction made. The main advantage when compared to other coins is that Zollar allows you to do so without having to stake. Rewards are fixed and shared between holders at each transaction made: sell, buy, or trade.
MARKETING STRATEGIES
USE COMMUNITY TO NURTURE CURRENCY
To make Zollar more and more marketable, the first step we follow is to find a community and build a platform around them rather than building a currency and expecting everyone to show up. This is why the Zollar Token has been launched on several trading exchanges. We focused on making Zollar sensitive to the needs of the community while keeping it relevant to their cultural heritage and background. Having already been listed across some of the leading crypto exchanges (with no indication of stopping here), our community is ever increasing. Being community driven, we want our investors to be excited and to feel good about joining the Zollar family.
WORD OF MOUTH MARKETING
Word of Mouth happens when you are notified about a product or service by someone that you trust. Having already been listed across some of the leading crypto exchanges our community is ever increasing and, as they say, “Word of a Mouth is the best marketing”. The number of holders and merchants is growing immensely because our investors trust us and they spread the word about the opportunity that Zollar provides. We also intend to conduct seminars, use TV Campaigns, Forums, Blogs and our social media platform to further enhance and gain the trust of our valuable investors.
CRYPTO EXPOS
To spread our message to potential investors, we create awareness campaigns throughout the globe and always participate in Crypto expos. We sponsor mega events and our highly professional marketing team actively participates in these Expos ensuring maximum conversion of Zollar Tokens.
MERCHANDISER PARTNERSHIPS
We continue to partner with key merchandisers around the Globe to create mutually beneficial channels and aid in the acceptance of the coin.
CELEBRITY ENDORSEMENTS
In order to ensure maximum outreach to the public, we conduct events and advertisements where our Zollar Token is endorsed by famous celebrities from the music and film industry.
INTENSE DEEP CODING AND EDUCATING PEOPLE OF THE RISKS
Research suggest that some of the cryptocurrencies didn’t last very long because they included a novel feature set which would gain short-term speculative hype but in the long term the project would fail due to lack of follow-through. Our approach in this regard is completely different. Our highly experience team of developers have ensured that the Zollar Token is here to stay for the long haul (we survive). We take care of the development end through bug fixing to ensure that the promise made at launch is honored. Why is education a part of our marketing strategy? Because we want every investor and buyer to be an informed consumer. This is an ethical bar which we have set for ourselves because we believe that if our coin is going to be transparent, we should too. We consider it a duty to educate people of the risks and then give them the tools that they need to secure their wealth. An educated consumer will always make the right decision for themselves and we want to be a part of that decision making process without having authority over it.
GETTING MINERS ONBOARD
We tend to raise awareness about Zollar Token among people of all walks of life and gain value in the eyes of its miners and users. We believe in building trust and maintaining that trust, expressing our vision and intentions to miners and getting them on board with the opportunity ahead. Having already offered one million Zollar Tokens, we have developed a group of loyal miners committed to the cause who will process our payments even during slumps in price because they believe in the eventual outcome.
TOKENOMICS
STATIC LIQUIDITY ACQUISITION
The static reward (also known as reflection) and Liquidity Pool acquisition mechanisms function as follows: The LP acquisition mechanism is the process of having the liquidity generated in the form of “CAKE-LP”. This function can be triggered by any normal transaction of the token, as all transfers evaluate the set of conditions that trigger the mechanism. The main conditions of the mechanism are whether the client/investor is different than the LP pair, and whether the accumulation threshold has been breached. Should these conditions be met, the swapAndLiquify function on the Octans contract is triggered. With each trigger, the swapAndLiquify function splits the contract’s balance into two halves. The first half is swapped to BNB via the Pancake Swap Router using the Octans-BNB pair thus temporarily driving the price of the OCTA token down. Afterwards, the resulting BNB balance along with the remaining Octans balance are supplied to the Octans-BNB liquidity pool as liquidity via the Router. The recipient of the LP units is defined as the current owner of the Octans contract. This process is automatic and requires no human interaction. It is written directly onto the contract. At the launch of the Octans protocol, it was decided that these LP-tokens would be burned in order to protect our investors from any kind of liquidity pull/removal. The reason as to why we choose to perform manual burns is explained in detail below.
MANUAL BURN (E.G)
All the generated LP tokens from the Zollar-BNB pool are manually sent to a burn address to avoid Liquidity moves, and to protect investors from any kind of liquidity pull/removal. All the transactions related to the liquidity burn are available at this address: # $ TEST
WHY MANUAL
Our group seeks to implement a burn strategy that is advantageous and rewarding for our long term investors. A continuous burn has its disadvantages. An infinite burn cannot be controlled in any way. Having controlled burns allows for the community to define the purpose of the generated tokens at any moment.
BALANCE
Balances in the Zollar system are calculated in one of two ways:
With Method 1. Most investors are familiar with this method; the traditional fixed number of units being associated with a user’s address.
Method 2 : This method has to do with static rewards, representing an investors balance as aproportion of the total supply of the token. Whenever a taxed transaction occurs, half of the 8% tax is re-distributed to the holders. The specific amount received per transaction, by each investor, is proportionate to how much of the total token supply the investor initially holds. The more you hold, the more you will receive per transaction, resulting in a lucrative form of passive income.
INITIAL BURN
At our launch, 50% of the total Zollar supply was sent to a dead wallet, the burn address. Since this address holds Zollar, it is considered an existing holder. Due to the static reflection being proportionate to how much of the total token supply a wallet holds, the burn wallet receives around half of all reflections, as it initially held 50% of the total supply. It is due to the aforementioned that the Zollar balance of the burn address is ever increasing. This further contributes to the supply of Zollar becoming increasingly scarce, resulting in a higher, more stable price floor.
10%
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Tokens Allocation
Team Liquidity Marketing Circulating Staking & Rewards
CORE CONCEPTS
Base _and _quote are two concepts that will be mentioned frequently. Two easy ways to
distinguish between them are:
• In a trading pair, the base is always the token before the hyphen, and quote after
• In transactions, price refers to how many quote tokens are needed in exchange for one base token. For example, in the BNB-BUSD trading pair, BNB is the base token and BUSD is the quote token PMM Parameters.
The funding pool of PMM is described by four parameters:
• B_0B0: base token regression target - total number of base tokens deposited by liquidity providers
• Q_0Q0 : quote token regression target - total number of quote tokens deposited by liquidity providers
• BB: base token balance - number of base tokens currently in the pool
• QQ: quote token balance - number of quote tokens currently in the pool
Pricing Formula
The PMM price curve is plotted by the following pricing formula:
P_{margin}=iRPmargin=iR
Where R is defined to be the piecewise function below:
if B<B_0, R=1-k+(\frac{B_0}{B})^2kB<B0,R=1−k+(BB0)2k
if Q<Q_0, R=1/(1-k+(\frac{Q_0}{Q})^2k)Q<Q0,R=1/(1−k+(QQ0)2k)
else R=1R=1
it is the market price provided by an oracle, and k is a parameter in the range (0, 1).
THREE POSSIBLE PMM STATES
Initially, i.e. prior to any transaction, the capital pool is in equilibrium, and both base
tokens and quote token are at their regression targets. That is, B=B_0B=B0
and Q=Q_0Q=Q0.
When a trader sells base tokens, the base token balance of the capital pool is higher
than the base token regression target; conversely, the quote token balance is now lower
than the quote token regression target. In this state, PMM will try to sell the excess base tokens, lowering the base token balance and increasing the quote token balance, in order to move this state back to the state of equilibrium. When a trader buys base tokens, the quote token balance of the capital pool is higher than the quote token regression target; conversely, the base token balance is now lower than the base token regression target. In this state, PMM will try to sell the excess quote tokens, lowering the quote token balance and increasing the base token balance, in order to move this state back to the state of equilibrium.
The parameter R in the pricing formula above assumes a critical role in facilitating this regression process. The more the capital pool deviates from the equilibrium state, the more R deviates from 1. When the price given by the PMM algorithm deviates from the market price, arbitrageurs step in to help bring the capital pool back to the equilibrium state.
LIQUIDITY PROVIDER FEE
A small amount of transaction fee will be charged on every trade. This fee is called the liquidity provider fee and will be distributed to every liquidity provider based on their proportional stake in the capital pool. More specifically, liquidity provider fees are collected from what buyers received and distributed to liquidity providers who supplied this kind of asset to the capital pool. In other words, liquidity providers are rewarded in the same asset denomination. For example, when traders buy BSC tokens with BUSD tokens, liquidity provider fees will be charged in the form of BSC tokens, and distributed to liquidity providers who deposited BSC tokens into the capital pool.
When traders sell BSC tokens for BUSD tokens, liquidity provider fees will be charged in the form of BSC tokens, and distributed to liquidity providers who deposited BUSD tokens into the capital pool.
Please note: Base and quote tokens have different returns on investments (ROI) in
PMM's funding pool.
MAINTAINER FEE
A maintainer fee is also collected from what buyers received, and will be directly transferred to the maintainer. The maintainer may be a development team, a foundation, or a staking decentralized autonomous organization (DAO). Currently, the maintenance fee on Zollar is 0.
WITHDRAW FEE
A withdrawal will change the PMM price curve and may harm the interests of other
liquidity providers. Zollar charges a withdrawal fee from liquidity providers who withdraw their assets and distribute it to all remaining liquidity providers.
Please note: Normally, the withdrawal fee is 0 or an extremely small percentage (\<0.01%) of what you withdraw. The withdrawal fee will increase significantly only if the funding pool suffers from a serious shortage of either base or quote tokens and liquidity providers intend to withdraw the type of token in shortage. The withdrawal fee serves as a protection mechanism for liquidity providers who maintain their supplies of liquidity and contribute to the sustainability and overall health of the Zollar platform.
DEPOSIT
Depositing and withdrawing base token when there is a shortage of base tokens, or quote tokens when there is a shortage of quote tokens, will change the price curve. This requires us to process the deposit and withdrawal with caution and care in order to keep the capital pool sustainable and fair.
We will analyze what happens when an LP makes a deposit when there is a shortage of basetokens.
According to the calculation formula of B_0B0 derived above
B_0=B_1+B_1*\frac{\sqrt{1+\frac{4k\Delta Q}{B_1i}}-1}{2k}B0=B1+B1
∗2k1+B1i4kΔQ−1
After an LP deposit b base tokens, B_1B1 increases by b, and B_0B0 increases more than b's magnitude. It means that this deposit helps all LPs who provided base tokens make a profit. The reason why is that the deposit makes the price curve smoother, and the same amount of \Delta QΔQ can now buy more base tokens. In this case, as soon as the LP makes a deposit, the LP makes a profit. This is referred to as the deposit reward. The essential source of this reward is the slippage paid by the trader who made the system deviates from the equilibrium state.
Please note: It is important to note that deposit rewards are not risk-free arbitrage trading opportunities.
WITHDRAWAL
Similarly, after an LP withdraws b base tokens, B_1B1 decreases by b, and B_0B0decreases by more than b's magnitude. This withdrawal causes all LPs who owes Base Tokens to suffer losses. This is because this withdrawal makes the price curve more steep, and the excess quote tokens have less purchasing power in terms of base tokens.
The PMM algorithm stipulates that a withdrawal fee is required to withdraw tokens in this case. The magnitude of the fee is equal to the aggregate loss of all LPs caused by the withdrawal. This fee will be directly distributed to all LPs that have not yet withdrawn. Factoring in the deposit reward from the previous section, if an LP makes a withdrawal immediately after depositing, the withdrawal fee will be greater than the deposit reward, thus eliminating any possibility of risk-free arbitrage trading. It is worth noting that both deposit reward and withdrawal fee are only significant when the system deviates very far from the equilibrium state and the deposit/withdrawal the amount is large. Traders thus often overlook the existence of this gain/loss. Of course, traders are also welcome to extract value from the system by exploiting this if they so wish. In order to do that, they can first deposit to earn deposit rewards when the system deviates from the equilibrium, and then withdraw once the system returns to the equilibrium to avoid the withdrawal fee.