Decentralized Basic Income: Creating Wealth with On-Chain Staking and Fixed-Rate Protocols

In this review, we evaluate the mechanisms behind the decentralized finance protocols for generating stable, passive income. Currently, such savings interest rates can be as high as 20% annually, payable in traditional currency values such as US dollars. Therefore, one can benefit from the growth of the cryptocurrency markets, with minimal exposure to their volatility risks.

arxiv.org

Notes

Two viable solutions

Orion money on Harmony
Lido on Harmony

Diagram describing how Orion money protocol can work on harmony using terra bridge and 1wallet

Even though Harmony’s UBI development should include a diversifying strategy, it is assumed that a first version using only one investment instrument—in this case Anchor Earn—should be a good starting point.

There are four critical areas for the development of a first beta version, they are a way to use One Wallet with fiat on-ramp support, a way to swap ONE into wrapped UST, a way to bridge and deposit UST into Anchor on Terra and a way to receive and wrap aUST.

Roadmap

Phase 1: ONEAnchor (owner @Boris Polania)

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Fixed income (15-20%) product based on terra's anchor protocol on harmony.

Porting EthAnchor

OneAnchor smart contracts (e.g. EthAnchor)
OneAnchor API (to be utilized in the OneAnchor frontend) e.g. EthAnchor API

DEX integration for swapping ONE<>1UST (start with sushi)
OneAnchor frontend e.g, Orion money

Integrate 1wallet

Integrate with wormhole bridge for 1UST & 1aUST

Milestones @Boris Polania to add details

ONE → 1UST in Sushi
OneAnchor Gateway
One Wallet 1UST and 1aUST support

Phase 2: ONELido (porting Lido) (owner: @Jacky Wang)

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Fixed income (8-10%) product based on Lido (liquid staking) on harmony.

ONELido is a Liquid Staking Protocol, built on harmony blockchain that allows their users to earn staking rewards without locking ONE or maintaining staking infrastructure.

Users can deposit ONE to the ONELido smart contract and receive stONE tokens in return. The smart contract then stakes tokens with the DAO-picked node operators. Users' deposited funds are pooled by the DAO, node operators never have direct access to the users' assets.

ONELido Smart contracts (port from Lido)
ONELido App (frontend) e.g., solido app
ONELido DAO
ONELido JS SDK (port from Lido SDK)

Additional Resources

Solido (solana Lido)

Repo: https://github.com/ChorusOne/solido
Docs: https://docs.solana.lido.fi

Phase 3: dONE (native staking derivative)

Fixed income (15-20%) product based on native staking derivative and yield products on harmony.

Development Updates

Week 10/03 - 10/10

This document is now updated with a preliminary roadmap.
OneWallet Integration:

Deposit interface complete with automatic swapping into UST. i.e., if the user deposits any amount of $ONE it will immediately into UST using $SUSHI (it will eventually deposit those UST into Anchor and receive wrapped aUST)

UST is now a default asset in the Wallet and mainnet balances are shown accurately

oneAnchor, integration started, basic setup and testing

Week 10/18 - 10/25

OneWallet beta integration
Integration with Terra Bridge (50%)
Order Bot for oneAnchor (25%)
oneAnchor contracts deployed in local test net

20% Fixed Income on 1wallet