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CRD Network White Paper


June 2021


This white paper is for information purposes only and may be subject to change. We cannot guarantee the accuracy of the statements made or conclusions reached in this white paper and we expressly disclaim all representations and warranties (whether express or implied by statute or otherwise) whatsoever, including but not limited to: • any representations or warranties relating to merchantability, fitness for a particular purpose, suitability, wage, title or noninfringement; • that the contents of this document are accurate and free from any errors; and • that such contents do not infringe any third party rights. We shall have no liability for damages of any kind arising out of the use, reference to or reliance on the contents of this white paper, even if advised of the possibility of damages arising. This white paper may contain references to third party data and industry publications. As far as we are aware, the information reproduced in this white paper is accurate and that the estimates and assumptions contained herein are reasonable. However, we offer no assurances as to the accuracy or completeness of this data. Although information and data reproduced in this white paper are believed to have been obtained from reliable sources, we have not independently verified any of the information or data from third party sources referred to in this white paper or ascertained the underlying assumptions relied upon by such sources. As of the date of publication of this white paper, CRD tokens have no known or intended future use (other than on the CRD Network, as more specifically defined in this White Paper). No promises of future performance or value are or will be made with respect to CRD Tokens, including no promise of inherent value, no promise of continuing payments, and no guarantee that CRD Tokens will hold any particular value. Unless prospective participants fully understand and accept the nature of the CRD business and the potential risks associated with the acquisition, storing and transfer of CRD Tokens, they should not participate in the CRD Token event. CRD Tokens are not being structured or sold as securities or investments. CRD Tokens hold no right and confer no interests in the equity of any company. CRD Tokens are sold with an intended future functionality and utility on the CRD network and This white paper does not constitute a prospectus or disclosure document and is not an offer to sell, nor the solicitation of any offer to buy any investment or financial instrument in any jurisdiction. CRD Tokens should not be acquired for speculative or investment purposes with the expectation of making an investment return. No regulatory authority has examined or approved any of the information set out in this white paper. No such action has or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution or dissemination of this white paper does not imply that applicable laws or regulatory requirements have been complied with. Participation in cryptocurrency projects carries a substantial risk and may involve special risks that could lead to a loss of all or a substantial portion of your contribution.

1- Introduction.

The CRD Network is a decentralized ledger system that seeks to bridge the centralized fiat financial world with all the applications of decentralized ledger systems; thereby eliminating the gulf between normal retail banks and the crypto world, as well as vastly reducing transaction costs.

It is based on a subnetwork of the Ethereum Blockchain but uses its own tokens, known as CRD Tokens, as an intermediary currency to ensure ledger compatibility and easy transferability between the different financial spheres.

The system interaction between the ledger and the CRD Tokens (CRD) is known collectively as the CRD ecosystem. Transactions are secured by a network governing APIs (CRD Network) enabling interoperability between classic banking services and crypto marketplaces.

1.1 Basic Concepts.

1.1.1 The CRD ecosystem.

This is a direct link of transactions between the centralized financial world, as well as the decentralized ledger systems underpinning various blockchains. The main benefit of using this system is that it enables a drastic simplification of transaction mechanisms between normal fiat currencies (everyday money - USD, EUR, GBP, etc) and cryptocurrency by reducing operating friction, and thereby making transaction fees negligible.

Users who wish to conduct transactions in this network will use CRD as their only payment mode. In other words, all cryptocurrency or fiat currency when transacted within the network is logged as CRD, but can easily be converted into the asset of your choice.

At its core, the CRD Network is an API inter Hub between the crypto and fiat worlds; by leveraging the data streams from spheres it serves as a modular substrate, upon which FinTech apps can be built and operated.

The operant purpose of the CRD Network is to compute transactions and thereby optimize the flow of operations by bundling them and simplifying the flow of data. In this way, the output which gets executed on the Ethereum Blockchain takes advantage of economies of scale and thereby reduces the comparative cost of transactions.

1.1.2 CRD Token (CRD).

This is a secondary validation token, a utility token based on the ERC-20 protocol, which is issued by the Ethereum blockchain. While the coin has been pre-minted, it gets distributed across the system upon logging transactions into the CRD Network.

It is limited in its supply, and there are only 1bn CRDs in existence, though there are far less in active circulation. At its core, it is intended to act as a stable access token. However, it remains in free float, to give the CRD Treasurer Committee flexibility over management to ensure that it remains stable over time by ensuring convertibility between fiat and cryptocurrency.

It bears saying that network operability considerations, as determined by the governance board, will take priority over the maintenance of any present price ratio.

This stability, along with its decentralized ledger, will allow for the creation of a bridge between the fiat and decentralized worlds and thereby enabling low-cost transactions between them.

Nevertheless, it is presently in a transitionary period, as adequate liquidity capital reserves are still being built but the long term target is for 1 CRD to keep a stable value relative to the euro; though it will maintain its free-floating status, as the exchange ratio happens via active management, not an actual 1:1 peg against the euro.

In addition, users can receive CRD Tokens as rewards for helping the stability and the liquidity of the CRD. This is done via our reward program, which will be discussed in further detail in subsequent pages (see section 6 for further information).

In brief, CRD Network users will be able to stake their fiat and cryptocurrency assets to the network for fixed periods, to help provide the necessary liquidity to reduce transaction costs; as well as provide capital to maintain stability level with the EUR.

These are known as the Liquidity and Stability programs, respectively. Wider Adoption and Utility of CRD Tokens.

Over time, the applications of the CRD Tokens will grow. The CRD Network has a program in place whereby they finance the third-party development of new innovative uses of the system (see section 5 for more details).

As new applications become available, demand for the network capacity will grow, and thereby the network robustness will be strengthened via CRD price stability. Every additional user within the system removes the friction between the potential transactions, given that they hold CRD, which was converted from another asset.

The CRD Token system is being utilized in partnership with DLTify, which is providing additional technology use cases and driving the adoption via influencer marketing.

The payment utility is pending integration by Coinify.

1.1.3 Tokenomics.

Coin Symbol


Total Supply (capped)
Supply Management
Active Supply Management via treasurer committee.
Network Fees Distribution
% of Network fees
Validators and Nodes
Master Node Operators

In contrast to many other cryptocurrencies, the CRD has been pre-minted and there is a firm cap of 1bn. Unlike Ethereum or BTC, they’re not actively mined and the minting function of the tokens has been inactive since 2018 as the contract has been closed for minting. You can verify this information on this link.

That said, as a consequence of this, there are various wallets containing the bulk of the network’s tokens, and they remain inactive to avoid flooding the market. Major withdrawals from most of these wallets rely on community approval.

As of 20th June 2021, the wallet distribution is as follows:

1.1.4 Actively Managed Stablecoin.

CRD is a free-floating currency that is actively managed through monetary policies that affect the availability or scarcity of the tokens. In effect, CRD Network’s treasury functions as a central bank with the mandate to eventually reach a similar price level to the EUR and, once reached, maintain that price ratio.

This stability will help keep gas fees relatively predictable and will allow the development of DeFi microservices that have stable profit margins; while also allowing the users to expect their transaction prices to remain relatively constant.

The CRD Network believes that for DeFi to flourish it must guarantee some predictability and stability, so that entrepreneurs and users can use the space without fear of volatility that would harm their finances.

1.2 Formal Definitions.



Application Programming Interface (API)
It is a computational protocol allowing for the communication of various differentially programmed systems.
The CRD Network is partially designed to function as an API infra Hub, and thereby bridge the crypto and fiat world.
Fiat Currency
Is a government-issued currency that isn't backed by a commodity (USD, EUR, GBP, etc). Its main source of value is a collective belief that it’s worth something.
By contrast, some cryptocurrencies, like Ether (ETH), are backed by computing power, or some other predefined commodity.
Decentralized finance (DeFi)
Is a means of finance not reliant on financial institution intermediaries such as (exchanges, or banks), and instead utilizes smart contracts on blockchains.
ERC-20 Token
They are smart contracts that execute in the Ethereum blockchain. Their framework is flexible enough to permit various use cases, without interrupting the Ethereum blockchain.
CRD Tokens are one such contract, which is used in the CRD Network as a means of tallying the transactions and account balances of the network users.
CRD Network (the CRD ecosystem)
A network that seeks to bridge the centralized financial world, and decentralized finance (which includes all applications of decentralized ledgers).
CRD Token
Is a pre-minted validation token used when logging transactions into the CRD Network, it is presently in free float, although long term it is designed as an actively managed pseudo-stablecoin that has price level stability with EUR.
Master Nodes
A type of complete node within a blockchain network, which can carry out certain tasks or services.
Only Masternode Holders can execute them.
Through this system, you increase the possible transactions per second, as well as limit malicious activity by Masternode Holders acting as validator and guarantor.
Master Node Holders
These are users who have staked over 1m CRD into the network via a smart contract and thereby act as guarantors and validators.
In addition, they get votes in proportion to their financial commitment to the CRD Network and through them, they can affect the policies underpinning the system.
Is a decentralized cryptocurrency exchange, which enables automated transactions between cryptocurrency tokens on the Ethereum block chain through the use of smart contracts.
CRD Network utilizes both Uniswap and Sushiswap to create liquidity pools to ensure easy convertibility between currencies.
Is a decentralized cryptocurrency exchange, which enables automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
The CRD Network primarily utilizes Uniswap, Sushiswap and Tacoswap to create liquidity pools to ensure easy convertibility between currencies.
A network fork of Sushiswap and Uniswap.
It is a decentralized cryptocurrency exchange, which enables automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
The CRD Network primarily utilizes Uniswap, Sushiswap and Tacoswap to create liquidity pools to ensure easy convertibility between currencies.
Liquidity Pool
Decentralized collection of assets held by various users to provide the CRD Network with liquidity to run the system.
Users are rewarded with CRD Tokens, and the yield is tiered according to both the length that the assets are locked, as well as the value of the assets stored in the pools.

2 - Possible Infrastructure usage.

More than just a coin with an associated subnet, CRD and the aggregate CRD Network is designed to be built upon and have Decentralized Finance (DeFi) apps deployed on them. In other words, its primary value stems from its modularity, whereby third-party developers can build virtually any FinTech application on the network.

Experimentation is encouraged within the CRD Network. Third-party developers can receive a CRD grant as financing, under the condition that they build their use cases with a target audience in mind.

While the specifics of this system will be discussed in more detail in section 5, the abridged version is that the third-party developers work in tandem with a social influencer with a large audience. Through this pairing, the social influencer can craft a product custom-built to their followers’ needs, while the third-party developers can launch their products and services with a built-in audience, and proof of demand.

In this section, we will be discussing proposed use cases of the CRD Network as consumer, business and institutional products. Primarily though, it’s a showcase of various products in development by our DeFi innovation partner, DLTify.

2.1 DeFi compliant KYC (proof-of-KYC on chain).

We have built a Hyperledger Besu ETH private network and masternode system to validate all important actions within the network by independent nodes. Each important operation, such as validating a KYC process, is recorded there with all associated timestamps and hashes. In other words, it allows auditors/regulators to trace each KYC request lifecycle, as we are able to show the whole sequence of events, including data queries from KYC providers for various checks we make.

The core idea is that we operate in two networks simultaneously — in the ETH public net and in our ETH private network (Hyperledger). Then, within these systems, there are various sets of masternodes with different access settings. Some types of masternodes are able to validate records only, other types will be able to read some extra data.

All past transactions are stored in the blockchain and synced with masternodes. Consequently, it is not possible to revert old data; as we operate on a PoS private network, and nodes will ensure that no previous data will be altered. Even if we would want to change anything on the blockchain, all traces will stay in the system which ultimately restricts us from altering anything without broader consent.

2.2 BitClout Integration and Creator Coin financial instrumentation.

BitClout is a social network that lets you speculate on people with real money, and it is structured as a blockchain. Its architecture is similar to leading cryptocurrencies, like Bitcoin, but it can also support complex social network data like posts, profiles, follows, speculation features, and much more at significantly higher throughput and scale.

What the application does is to turn someone’s social media presence into a tradable coin known as a “Creator Coin”. In essence, it is commodifying and assigning a monetary value (in BTC terms) to someone’s influence over social discourse by tokenizing their online presence.

Unlike traditional cryptocurrencies though, the Creator Coins are created and destroyed automatically, as well as instantly, depending on whether they’re being bought or sold. In other words, users don’t trade their currency directly with each other, but via a smart contract known as an “automated market-maker,” as it stores a portion of the purchase price into the contract and is able to pay out if someone sells.

Hence, despite not being in a “live” market, the price adjusts automatically relative to the scarcity of individual Creator Coins via a predefined equation. In addition, creators receive a “Founder’s Fee” whenever their coin is traded.

The CRD Network seeks to integrate its DeFi fiat/crypto functionalities into BitClout for business synergies, as follows:

2.2.1 ON/OFF Ramp for BitClout Tokens.

Through the CRD Network’s Creator Neobank, fans and creators are able to buy and sell Creator Coins directly with their normal bank account, or credit card. In addition, we also offer a credit card through the CRD Network Creator Neobank, which allows them to earn Creator Coins via our card reward program, as well as seamlessly participate in BitClout, crypto and the offline world.

It bears mentioning that on BitClout, if Influencers sell their own Creator Coin, users holding their coin are notified of this transaction. In other words, effectively the capital associated with these Creator Coins might be considered tied up, given that any rapid divestment could collapse the price.

Consequently, the CRD Network will allow you an easy way to sidestep these issues by being able to collateralize your Creator Tokens and receive a CRD-denominated loan with a pre-agreed interest rate in exchange.

Then, upon receiving the CRD funds, you can utilize the comprehensive fiat/crypto exchange facilities offered via the CRD Network liquidity pools and bridging ecosystem to transfer your funds to your bank account. Or, if you prefer, you can utilize the outlined neo-banking functionalities to withdraw your funds; this can be done via multiple methods, including a debit card, which will be mentioned in more detail in the section to come.

In other words, you will be able to gain access to the value of the funds locked in your Creator Tokens without having to sell them. This is done by locking the collateralized Creator Tokens in a smart contract. However, it’s worth mentioning that If the terms of the debt are breached, then the contract retains the deposited Coins, executes the sale for the Creator and the Creator Coin holders aren’t notified, given that a third party executed the transaction.

This method thus becomes an easy means by which Influencers can temporarily exit the BitClout environment, and utilize the locked equity without having to liquidate their positions.

2.2.2 NIFTIT - NFT Fragments.

NIFTIT is an app built on the CRD Network that allows users to divide NFTs into “Fragments”. NFT Fragments are fractions, which in total represent the sum ownership of an NFT. Think of them as partial ownership of an asset, or merely a digital collectable, wherein each piece represents a proportional percentage of the NFT.

As such, by controlling all Fragments, you own the NFT as a whole, along with the underlying rights thereof.

Influencers with BitClout Creator Coins will be able to organize “token airdrops” in accordance with Coin stakeholder percentage. In other words, they will be able to reward their followers with NFT Fragments representing their stake in the Creator Coin holdings.

Consequently, if an Influencer/Artist is creating a project, they can drive interest in their Creator Coin by promising to give an NFT Fragment representing fractional ownership over the project relative to a user’s proportional Creator Coin holdings once it’s completed.

Hence this becomes an added source of creator funds via the increased capitalization of the Creator’s Coins, and given the Founder Reward, each time these coins are traded, the artists benefit financially.

Furthermore, the CRD Network will provide a secondary market to trade the associated NFT Fragments with the wider crypto community.

2.2.3 BitClout Token Dark Pool - Lend & Borrow Market.

Present BitClout functionality only allows you to speculate on the upward trajectory of the Creator Coins. As such, it is possible to invest in the success of an Influencer, but it is not currently possible to speculate on their loss of relevance.

To that end, the CRD Network will create a secondary market for financial instruments that derive their value from the different Creator Tokens and investor demand. This will be done via the creation of a dark pool of Creator Tokens wherein offers are matched by counteroffers.

In other words, a futures contract is matched with a short contract at the same price; a call is matched with a put; etc. As such, complex financial instruments can be built via automated market maker smart contract functionality, which trades on financial traits tied to these assets.

These dark pool created financial instruments will be denominated in CRD, and will partially be funded via liquidity pools and the offer/counteroffer pairing between the various financial products.

Users will be able to receive daily yields and rewards by staking their Creator Coins in the liquidity pools of the CRD Ecosystem.

2.3 Crypto/Fiat Banking.

The CRD Network is not only a means of systematizing and optimizing transactions, it’s also a means by which you can store capital. And given that the system is designed to serve as a bridge between the crypto and fiat world, it can accommodate either preference or both simultaneously via the Wallet system, which is built on top of the CRD Network.

As such, in contrast to previous banking institutions, that either scorned crypto or were too illiquid to be able to effectively deal with fiat currency, the CRD Network and operating protocol can store value securely, much like a high-street bank would, while also maintaining the connection and benefits of the decentralized world.

The Fiat/Digital Wallet has three major components:

2.3.1 Fiat Ledger.

This portion of the CRD Network Wallet holds the major traditional fiat currencies of the world (USD, EUR, GBP and SGD) and operates much like a normal high-street bank account might.

The primary difference is that instead of having to get various accounts to hold each currency, the Wallet is like having four traditional bank accounts in multiple countries at the same time.

In other words, you can easily send and receive major currencies. And you even get bank account numbers for the Eurozone, US, UK and Singapore. So you can send and receive payments from people with no association with the crypto world.

From the outside looking in, it looks like a regular bank account of the specific countries as you get:

USD account numbers

Euro IBAN account numbers

British Pound account numbers

SGD account numbers

Our fiat ledger is ideal for both businesses and consumers with a global perspective.

For companies, being able to leverage the CRD network means that they can provide customers with local account numbers, and thereby they can pay into local currencies, as often an obstacle for overseas clients are the currency conversion fees.

On a personal level, you can use the Wallet as a means to travel and spend in a local currency, and thereby bypass expensive exchange fees. You can also make international purchases and potentially even get better prices for products and services, as some businesses, like airlines, have geographically based pricing.

Put simply, the Fiat Ledger gives you all the flexibility of having bank accounts all around the world, without going through the trouble of setting everything up.

2.3.2 Cryptocurrency Ledger.

Another portion of your wallet can store many of the major cryptocurrencies, including BTC, ETH, BCH, BSV and USDT20.

In addition, you have access to over 100 of the most liquid tokens.

2.3.3 Non Fungible Tokens (NFTs).

This is the final, and most unique portion of your Wallet, as it can store Non-Fungible Assets that operate based on the ERC-1155, and ERC721 smart contract protocols.

At its core, an NFT is a cryptographic ID representing ownership over a unique item. It’s a non-reproducible marker of authenticity that is stored in a cryptocurrency wallet.

NFTs aren’t solely reserved for the cryptocurrency world. They may denote something as tangible as the deeds to a house, or as intangible as clothes for a character in a videogame.

The key component is that they’re IDs representing unique items that can be identified based on their specific characteristics, as well as a traceable chain of ownership from the point of creation.

However, NFTs are not just an alphanumeric code assigned to a specific item. The protocol under which they are built allows for the creation of smart contracts.

In other words, NFTs can automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement, due to their smart contract functionality.

As such, through this, you can create hyper-specific contracts that ensure impartiality and documentation of the chain of ownership.

Due to their flexibility, you could, for instance, say that a house is worth $1m plus a cookie; and so if you found a buyer for that house, they would trade the $1m plus an NFT representing the cookie from a store, for an NFT representing the house. And all this would be mediated via a smart contract.

So this is the most adaptable portion of the wallet, in that it does not simply store assets, but it can also store executable instructions relating to those assets.

2.4 Dedicated Crypto Banking services.

2.4.1 Crypto Banking Services.

CRD Network’s goal, in regards to its banking services, is to beat the traditional banks with their neobank business model. By seamlessly bridging the worlds of traditional banking, along with the cryptocurrency world, it can offer far more than either one of these spheres could do by themselves.

Here’s a brief list of the main utility you gain by using CRD Network’s services:

Trade Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dash (DSH), Tether (USDT20) or any ERC-20 product.

Buy with confidence using the Wallet of your choice. Choose between your payment card, Crypto/Fiat digital Wallet, or a bank transfer to buy the virtual currency of your choice.

Purchase with a payment card (Visa or Mastercard) or via bank transfer without opening an account. Access liquidity in major centralized and decentralized exchanges to enjoy low slippage cost.

2.5 R&D: DeFi Banking Products.

As mentioned before, DLTify is currently our main FinTech novel applications provider for the CRD Network. They research and develop new means by which CRD Tokens can be utilized to remove inefficiencies in both crypto and fiat transactions.

And so, we will present to you one such new use case of DeFi:

Fiat funded smart contracts via Atomic Swaps.

A perennial problem in the crypto world was that asset trades happened on trust (one sent the token, and then hoped the other side sent their respective side of the trade), while the other option was going through third-party intermediaries (which would hold the assets of both parties in escrow and then give each member the assets they were exchanging for).

As you might imagine, this was a system rife with scams and/or with major transaction costs. This meant that many trades that people wanted to do were simply not economically viable, or likely even possible.

A proposed solution to this are Atomic Swaps, so what are they?

What are Atomic Swaps?

An atomic swap is a peer-to-peer trade, wherein assets are exchanged between parties without the need of an intermediary, like an exchange, or having trust in the goodwill of the party.

It is done via the use of a smart contract, specifically, a Hash Time-Locked Contracts (HTLC), which is a class of payments that require that the trading parties either acknowledge receiving the payment before a deadline, or forfeit the ability to claim said payment, and thereby refunding the proposed asset to the original parties.

In essence, the smart contract itself becomes the intermediary by temporarily holding the assets in escrow.

Through this method, you can create trades across various blockchains by ensuring that either party only gets their desired outcome, and if not, the trade is refunded.

How it Works.

For simplicity’s sake, rather than talking in theoreticals, let’s give a specific example:


John wants to buy an asset using their eurozone bank account, while Peter wants to sell this asset and receive euros.


Given that neither John nor Peter know each other, they need a means of being able to trade without either of them having the chance of getting scammed. As such, they use cryptographic protocols such as Nimiq OASIS, to create a smart contract that connects John’s eurozone bank account through the CRD Network. Both parties send their assets to the contract.


Upon the smart contract receiving the money from John via his eurozone bank account and Peter’s asset via his digital Wallet, it then waits for acknowledgement and acceptance of both parties. If either party rejects the trade for whatever reason, or the contract times out, both parties are refunded what they originally sent to the contract.

Our approach.

CRD Network integrates seamlessly with DLTify’s protocols and technologies and gives them access to the regulated markets. Together, we offer an array of specialized banking services.

CRD Network´s integrations will narrowly follow the adoption curve of the various DLTify protocols. The banking services that are offered through the CRD Network will be tied to DLTify’s technological applications of decentralized ledgers.

2.6 Prepaid Cards.

As one of CRD Network’s primary ambitions is to be able to seamlessly replicate (and improve upon) traditional retail banking with our neobanking model, and our ties with the crypto world, it should come as no surprise that we also have card functionality.

Nevertheless, as with anything within the CRD Network, it’s bespoke. If a community has the means of designing and executing the protocols, they can design the cards to their specifications.

Out of the box, it’s a simple white label card, wherein the primary difference and advantage is that any crypto or fiat funds stored in your CRD Network account can be withdrawn via our debit card, as well as pay online and offline.

Nevertheless, every last bit from its look to its functionality can be customized.The card can also be converted into a debt instrument, as it can be funded via any of the network’s demand and supply-driven financial products.

The only limits are your imagination and the network’s demand and supply-driven pricing on various financial instruments.

3 - Institutional and Prime Service.

In the earlier section, we talked about the various use applications for products within the CRD Network. Nevertheless, the underlying infrastructure underpinning the technology allows not only for applications but algorithms to be run via smart contracts.

Through these operable instructions, you can do two main things:

Execute a set of instructions (for instance, run a regulation-compliant cycle, exchange currencies at FX rates, etc); and

Report a set of predefined behaviours (for example, output trading logs in a PDF format, receive real-time transaction and position notifications, etc).

The following examples are use cases for the CRD Network that aren’t immediately related to a single product. These examples are case studies of ways in which the operable algorithms within the CRD Network are being utilized by treating it as an API infra Hub - a nexus between the spheres of crypto and fiat currency.

3.1 Automated Investment Strategies - Single Touch Execution of Yield Arbitrage Strategies.

The CRD Network offers decentralized financial yield arbitrage strategies at the press of a button. Meaning that by leveraging DeFi’s range of FinTech products, and the CRD ecosystem’s efficiency, you can exploit momentary fluctuations in the market to maximize the return of various financial assets.

Put simply, institutions can design and execute various fiat funded/leveraged, yield arbitrage strategies across the globe. Here are a few examples of potential yield arbitrage strategies:

Debt Bridges: (temporary financing provided at higher than average rates, meant to be replaced with a longer-term financial instrument, typically used in M&A) Executed Via Maker Dao, USD and Euro money markets.

Debt Swaps: (a refinancing arrangement, wherein a debt holder becomes a proportional equity stakeholder, in exchange for cancelling the debt) Executed Via Maker Dao, Compound, USD and Euro money markets.

Supported Protocols: All traditional institutional transaction flow with direct access to DeFi Fixed Income Classes.

3.2 Deep Liquidity Access.

3.2.1 Liquidity on Demand for any Asset.

Given that one of the major aspirations of CRD is to behave similarly to a stablecoin via active management, it has secured for itself deep pools of liquidity, which ensures easy convertibility within the CRD Network to many major cryptocurrencies and fiat currencies via decentralized exchanges.

3.2.2 Indirect Markets.

In addition to our decentralized Direct Market solutions, we also have asset reserves to serve as an intermediary with transactions that might be too illiquid, or volatile, to execute successfully on a regular basis:

Exchange between any currency and any fungible asset on our Open Banking Ledger; and

Digital Assets to fiat currency.

4 - Network Architecture.

A chart showcasing the CRD Network’s role as a middle operator between retail banking and the decentralized financial world.

4.1 What makes it possible?

The second Payment Service Directive (PSD2) is a 2015 EU Directive regulating payment service providers throughout the Eurozone, with the ultimate goal of building a more systematized European transactions market, as well as increasing security for customers.

While most of it is not immediately relevant for CRD, the regulatory directive required banks to provide open APIs, a protocol that allows external programs to be able to read and interact with the bank’s data, after passing certain security checks.

In turn, this enabled third-party developers to utilize this information to provide add-on applications and financial services.

As such, PSD2 tangentially solved the last major obstacle in bridging the crypto and the fiat world. In other words, CRD’s integration into the traditional bank’s API allows it to connect directly to the operations of high-street banks and thereby you can seamlessly use the contents of your bank accounts within the CRD Network.

By proxy, once your funds have managed to reach the CRD Network, it is very easy to get involved in the crypto world. Vice versa works as well, as you can convert your various cryptocurrencies into CRDs and then transfer the value to your bank account, which instantly gets converted into fiat currency upon leaving the network.

4.2 Transaction Fees.

The CRD Network will enable user interfaces and apps to be built on top of this system architecture.

However, these new apps built within this framework will have to charge fees to function. While the users themselves will only see the charge as a single fee per transaction, the revenue generated from them will be split in two to serve different elements of the system:

CRD Network Fees; and

Ether Gas Fees.

This is because the computing power required to initiate a given transaction is paid by the CRD Network. Nevertheless, once the transaction is initiated and confirmed by the different peers, it’s bundled with other similar transactions, at which point it’s either executed locally or passed onto the Ethereum blockchain to be executed at a broader network level.

It bears mentioning that given that the fee charge happens once per transaction, both elements are packaged together. In other words, given that the broad infrastructural management happens at the Ethereum blockchain level, the charge is relative to the price of Ether, though instantly swapped, and so the user never has to deal with this complication.

In other words, whenever a computation is made by these apps that affect the network, they incur a fee. These transactions are validated at the local system level by Masternode Holders, who also receive a proportional fee to their financial commitment.

Masternode Holders are network participants who have provided the equivalent of 1m CRD as collateral and through this method staked a CRD Network Node, this allows them to:

Process and confirm internal system transactions;

Receive CRD fees from the system, proportional to their stake in the network;

Participate in the governance process on a deeper level.

CRD Network Participants can ensure the stability and liquidity of the system by providing the capital necessary to reduce volatility. In exchange, they are rewarded CRD tokens by the network for their contribution.

Through these Liquidity and Stability programs, potential developers and influencers are assured of the long term viability of the system and are thus more likely to participate in the network’s development.

4.3 Computing Power.

The CRD Network operates by a distributed node system, which can be independently managed. It is accessed by a staking mechanism, similar to the ‘proof of stake’ mechanism that exists in the Ethereum network, meaning users with a higher number of staked tokens hold more control.

CRD stakeholders can stake 1,000,000 CRD to operate a node and become a Masternode Holder, and thereby earn fees proportionate to the general availability of nodes and their operating use.

Then, when a large enough bundle of transactions has been collected and needs to be executed, it is packaged, and executed on the Ethereum network (as this is where most of the endpoint of standard executions are happening).

This creates a two-layer system, wherein most complex computations happen at the CRD Network level, and then the refined instruction package is executed on the Ethereum network (although the system can operate on other blockchains if the need arises). Hence the system has two authentication protocols, which ensure efficiency and safety, as the two ledgers must coincide at all times to function.

4.4 Governance.

Presently the operating principle under which policies regarding the CRD Network are designed is to develop use cases of the technology to increase demand while limiting the supply of the pre-minted 1bn CRD.

Through this induced scarcity, the price will trend upwards from its current free-float state, until a CRD can have approximate price level stability with EUR.

Thereafter, policies will be enacted to maintain this pseudo peg to the EUR; chief among our monetary policies is limiting or increasing the supply of CRD depending on the direction in which we require the price to move to maintain price level stability.

It bears saying though that network operability is prioritized over maintenance of the pre-agreed exchange range, and thus, while actively managed and with aspirations to be a stable currency, it will remain in free float.

The governance of the CRD Network is done via two layers:

The WACEO, a non-profit organization, maintains the organizational and regulatory requirements.

Internal decisions are made in a representative democratic manner by holders of a minimum of 1k CRD, which get a vote proportional to their financial participation in the network.

Among the main things that the network decision-makers will need to consider will be developing use cases. The CRD Network is, after all, a platform that allows for the development of apps with financial integration.

4.5 Third-Party architecture.

The CRD Network is designed to operate as a substrate wherein third parties are encouraged to build and deploy their financial applications on the blockchain.

In section 5 we will be discussing in detail how third-party teams are encouraged to work on applications. Though suffice it to say that CRD’s design philosophy in regards to the network is that the more use cases are created, for which there is demand, the more widespread adoption of CRD happens.

As such, the CRD Network operates as an API infra Hub, which can collate and parse through data from the fiat and crypto sphere. And thereby it has a greater potential for FinTech solutions than you would find in either realm.

Furthermore, the underpinning modular design philosophy of the CRD Network allows apps designed within the network to communicate with each other. In other words, a novel application might depend on operations that happen on other apps within the network.

The more innovative third-party applications there are, the more they can be restructured to be able to enhance utility or even create new functionality.

5 - App Development.

As mentioned in section 4.5, the CRD Network is designed with modularity in mind. In practice, this means that third-party developers are allowed, and even encouraged, to build and deploy new applications on the blockchain.

They have to have a technological use case that can be deployed and eventually profitably executed on the CRD Network; and

They have to partner with a large social influencer to design a bespoke product with built-in demand. It also bears mentioning that the application has to adhere to safety and regulatory protocols, as determined by the WACEO board.

In this way, the CRD Network itself acts as a bootstrapping mechanism to idea-rich, but resource-poor, developers while simultaneously creating applications with built-in demand, given that the influencers leverage large audiences. After which, the apps will eventually pay for themselves via fees and evangelization to new audiences.

Along with the WACEO, we are creating best practice guidelines for our influencer pairing programme. We will shortly be releasing those guidelines, to best protect the CRD Network going forward.

However, for now, suffice it to say that any future influencer that pairs with us will have to, at a minimum, meet these two primary criteria:

An evaluation of fitness and properness; and

Strict adherence to best practices.

6 - Liquidity and Stability Programs.

The overarching guiding principle in the governance of the CRD is to transition it into a quasi-stablecoin, wherein it eventually maintains approximate price level stability with the EUR through active management.

To be able to reach and maintain this price equilibrium, it is essential to pay close attention to two factors:

Liquidity - By ensuring easy and instant convertibility between the CRD and ETH, the free-float volatility of the currency will begin to stabilize as it will begin to mimic the price evolution of a stablecoin. The key to the success of this strategy is the maintenance of large enough liquidity pools that can be tapped to ensure seamless exchanges between the cryptocurrencies.

This portion of the plan, along with the mechanisms to achieve it falls under the Liquidity Reward Program, which will be discussed in subsequent sections.

Stability - Once the markets adjust to the idea of the CRD being easily convertible, and volatility diminishes, to reduce negative arbitrage opportunities, we will then peg the CRD to the value of the euro, meaning that we require ample capital reserves to be able to maintain this price ratio.

This portion of the plan, along with future price development to eventually reach CRD-EUR price level stability, will fall under the purview of the Stability Reward Program, which will be addressed once the Liquidity program has achieved its stated aims of reducing price fluctuations.

In brief, the Liquidity Program will ensure the convertibility of the CRD with the external source of value of ETH. This is an intermediate stage, wherein CRD and ETH are analogous with one another, and the market comes to understand this reality through the quick and easy convertibility between the two.

Once the market has adjusted to the seamless exchange potential between the two, a price ratio will be determined between the CRD/EUR and this peg will be maintained with EUR capital reserves previously built up via the Stability Program. Over time, this price differential ratio will be narrowed, until the CRD and EUR reach approximate price level stability with each other.

Finally, once 1 EUR is approximate in value to 1 CRD the governance of the CRD Network will be tasked with the maintenance of the peg through limiting or increasing the availability of CRD within the network. The tools available will not be dissimilar to that of central banks in the fiat world, with the key difference being that there can only ever be a maximum of CRD1bn in circulation, and these tokens have been pre-minted.

Nevertheless, despite the capped number of 1bn CRD, this does not mean that the network has a maximum theoretical value of EUR1bn, given that CRD Tokens are infinitely divisible and can thus be parsed according to the needs of the network.

In other words, if the need arises, the peg could be shifted by one decimal points, so that 0.1 CRD is approximately 1 EUR (instead of the currently proposed goal ratio of 1 CRD being equal to 1 EUR), and thereby instantly tenfold the CRD Network market cap potential.

6.1 Liquidity Reward Program - CRD Liquidity Pool.

As mentioned in the previous section, to reduce the inherent volatility and nicheness of a lot of cryptocurrencies it is necessary to ensure easy token convertibility into more mainstream cryptocurrencies.

Every time conversion between CRD and ETH happens, the CRD Network solicits the CRD Liquidity Pool, exchanges the user’s ETH for CRD, and then distributes it across the first layer of validation.

Thereby the system can assuage many of the major concerns for potential users, by ensuring immediate convertibility, and thus you indirectly fuel demand. With more transparent and larger markets, prices stabilize.

To that effect, to ensure liquidity and hence convertibility of the CRD, we are launching the CRD Liquidity Pool, which will reward users for lending their ETH as capital to be used by the CRD Ecosystem and thus reduce market frictions.

As the CRD Liquidity Pools expand, community members can enter larger CRD positions with confidence, as transaction costs are reduced and the stakes can easily be converted into other currencies.

Our CRD Liquidity Pools will be based on the Uniswap, Sushiswap and Tacoswap decentralized exchanges (DEX). As such, those DEXes will be the gateway into the CRD Network, whereby the cryptocurrency community can easily trade CRD.

In this way, the CRD ecosystem is diversified and has multiple access points, to serve as redundancies and simplify transactions. By continuing our support of all three DEX platforms, we continually deepen the CRD/ETH liquidity pool.

7 - Technical Timeline.

8 - Conclusion.

The main problem in the cryptocurrency world is that many market participants are fuelling a speculation bubble. Short term thinking often governs these projects, as it has unfortunately been interpreted as a “get rich quick scheme”.

The CRD Network, and the CRD Tokens, are a long term project, they’re not meant for speculatory short term growth. The Tokens themselves are actively managed to ensure liquidity and stability, thereby allowing for the creation of a network ecosystem that can breed innovative FinTech applications without the risk of wild currency fluctuations destroying entire business models overnight.

The network is an infrastructure bridge that enables interoperability between the fiat and the cryptocurrency world, as it acts as an API infra Hub. And on top of this bridge, one can build innumerable applications that interact with each other via the CRD tokens.

Modularity is key, and community participation is actively encouraged, as each additional user, or new use case, increases the value of the network as a whole.

In sections 2 & 3 we discussed the incredible flexibility and adaptability of the technology, whereby entire financial industries were mimicked in a decentralized manner. Presently, we’ve only just begun to understand the possibilities of this new technology.

And so, if you’re someone that can see the potential of the technology, and its long term exponential adoption possibilities, we would like to welcome you into the CRD Network and the future of finance!

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