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New Listings Analysis

1 Preface

There were several goals we were trying accomplish as part of this asset listing framework, but the most important one was to ensure that all assets we approve to be listed on the platform are tamper resistant. As we mentioned in Phase I of this analysis, we think of tamper resistance as a spectrum, and built our parameters accordingly.

The various SIP’s released over time have limited the main oracle-based attack vector to pure oracle manipulation. In general, oracle manipulation is a function of liquidity. The higher the liquidity, the costlier it would be to manipulate it. To start identifying assets we can feel comfortable adding to the exchange, we looked at nine assets of the top 20 which haven’t been listed yet. Similar to our analysis of the existing assets, we tracked orderbook depth over time for each asset on both a cumulative basis (across all exchanges) and an exchange-based breakout. The goal was to get a realistic understanding of the cost of manipulation and ensure that our parameters remove any economic attack vectors. We present our findings throughout this report and have included all the supporting data within the Appendix.

Assets Covered

LEO 2 Final Results

We ranked the proposed assets from most to least expensive to manipulate. We also included the average amount necessary to shift the price by 10% in each direction for the period we tracked. This was the primary metric used to gauge an assets viability for the platform. Out of the nine assets we analyzed, six had enough liquidity to make use comfortable listing them in this phase. Stellar, LEO, and Token had very poor exchange-based liquidity. Stellar is a widely available asset trading on and Pro, but the trading volume, among other things, would indicate that there isn’t much demand for it. The risk/reward here doesn’t justify the listing. Huobi Token’s liquidity isn’t even remotely close to being an acceptable listing. LEO is an interesting scenario as its illiquidity is more of a function of where its listed rather than a lack of demand. There was a lot of interest early on that subsequently waned when burns were disappointing. As of late it’s had a bit of a resurgence, but I think this is an asset we can think about listing later once we have the ability to incorporate features like open interest caps.

Average Amount To Drop The Average Amount To Raise The Tamper Resistance Asset Exchanges Price by 10% Price by 10%

Binance, , Coinbase, Huobi, EOS (EOS) , Poloniex ~$5 million ~$5 million

Bitstamp, Bitflyer, Bittrex, Coinbase, Cash (BCH) Huobi, Kraken, Okex ~$4 million ~$4 million

Binance, Binance US, Bitfinex, Classic (ETC) Btitrex, Coinbase, Huobi, Kraken, ~$3.3 million ~$3 million Okex, Poloniex

Binance, Binance US, Bitfinex, (DASH) Bittrex, Coinbase, Huobi, Kraken, ~$2 million ~$2 million Okex, Poloniex

Binance, Bitfinex, Bittrex, Huobi, (XMR) Kraken, Okex, Poloniex ~$2 million ~$1.8 million

Binance, Binance US, Bittrex, Huobi, Cardano (ADA) Kraken, Okex ~$2 million ~$1.5 million

Binance, Binance US, Bitfinex, Stellar (XLM) Bittrex, Coinbase, Kraken, Poloniex ~$2 million ~$0.9 million

LEO (LEO) Bitfinex ~$2 million ~$0.5 million

Huobi Token (HT) Huobi ~$0.32 million ~$0.36 million

1: Period tracked for all data was from 3/15/2020 – 3/23/2020 3 Appendix

4 (BCH)

Exchanges: , Bitflyer, Bittrex, Coinbase, Huobi, Kraken, OkEx

5 Bitcoin Cash (BCH)

6 EOS (EOS)

Exchanges: Binance, Bitfinex, Coinbase, Huobi, Kraken, Poloniex

7 EOS (EOS)

8 LEO (LEO)

9 Stellar (XLM)

Exchanges: Binance, Binance US, Bitfinex, Bittrex, Coinbase, Kraken, Poloniex

10 Stellar (XLM)

11 Cardano (ADA)

Exchanges: Binance, Binance US, Bittrex, Huobi, Kraken, Okex

12 Cardano (ADA)

13 (ETC)

Exchanges: Binance, Binance US, Bitfinex, Bittrex, Coinbase, Huobi, Kraken, Okex, Poloniex

14 Ethereum Classic (ETC)

15 DASH (DASH)

Exchanges: Binance, Binance US, Bitfinex, Bittrex, Coinbase, Huobi, Kraken, Okex, Poloniex

16 DASH (DASH)

17 Huobi Token (HT)

18 Monero (XMR)

Exchanges: Binance, Bitfinex, Bittrex, Huobi, Kraken, Okex, Poloniex,

19 Monero (XMR)

20 Disclosures

This report was done by Delphi Digital, a research and consulting firm focused on the digital asset market.

Delphi Digital is not a FINRA registered broker-dealer or investment adviser and does not provide investment banking services. This report is not investment advice, it is strictly informational. Do not trade or invest in any tokens, companies or entities based solely upon this information. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. Investors should conduct independent due diligence, with assistance from professional financial, legal and tax experts, on topics discussed in this document and develop a stand-alone judgment of the relevant markets prior to making any investment decision.

Delphi Digital receives no compensation from the companies, entities, or protocols they cover for their subscription-based research products. This report was prepared for members of the Synthetix team as a paid consultation and does not represent an endorsement nor a recommendation by Delphi Digital and is not to be construed as investment advice of any kind; this report is strictly informational. Do not trade or invest in any tokens, companies or entities based solely upon this information. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. Investors should conduct independent due diligence, with assistance from professional financial, legal and tax experts, on topics discussed in this document and develop a stand-alone judgment of the relevant markets prior to making any investment decision.

The information contained in this document may include, or incorporate by reference, forward-looking statements, which would include any statements that are not statements of historical fact. No representations or warranties are made as to the accuracy of such forward-looking statements. Any projections, forecasts and estimates contained in this document are necessarily speculative in nature and are based upon certain assumptions. These forward-looking statements may turn out to be wrong and can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, most of which are beyond control. It can be expected that some, if not all, such forward-looking assumptions will not materialize or will vary significantly from actual results.

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