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Welcome to Komodo!
Commodities trading protocol. 

DeFii is a very interesting ecosystem inhabited by users who farm food coins and mine liquidity.
This habitat is getting crowded and new protocols build derivatives on top of each other.
This increases leverage and can lead to a dangerous bubble. 

DeFii natives may find it surprising that human beings also farm and mine in the real world. 
The commodities market is more than two hundred times bigger than the whole DeFii.
However, it faces many problems:
The brokerage and clearing fees are high. 
The technology is obsolete and requires lots of paperwork. 
And The strict regulations make trading less accessible in developing countries, a common place for farms and mines.

We decided to tackle these issues by building a decentralised, commodities trading platform, powered by Ethereum smart contracts. 

There are over 50 most popular commodities available grouped into a few categories. 
It’s a hackathon time, so let us invest in coffee expecting a surge in caffeine demand. 
On the asset's screen, we can analyze price history and buy or sell the synthetic commodity. 
We decided to integrate with Uniswap V3. We deploy the pool automatically and manage the metadata using the token list standard.

But where do the synthetic tokens come from?
Anyone can mint them providing collateral. 
Currently, we allow tokens to be backed either by Ether or by USDC.
To initiate the transaction, we must lock a certain amount of collateral that exceeds the value of created tokens.
 
Let’s mint the tokens….
 
We can see that the tokens have been added to our balance.
We can also flexibly managed the collateral. 

Adding more to our position will increase the solvency score, which is the ratio between the value of the collateral and the real-time value of minted tokens. 
If we need more working capital we can always reduce the collateral level. 
However, we should be careful with that, and always keep the score above a safe level.
If the solvency ratio drops below one hundred twenty percent, anyone could liquidate our position by selling the tokens for our collateral at a discounted price.

It's important to notice that the collateral doesn't lie idle. We automatically deposit the funds on Aave, so the token creators can earn extra income on their positions. Globally, the constantly growing collateral pool keeps the whole system more stable.

The newly minted tokens could be easily provided to the linked uniswap 3 pool, where we could specify the terms, on which, they are being offered on the market. 

The biggest challenge in building a protocol for synthetic commodities was how to inject data about the plethora of assets into the EVM. 
The Chainlink offers the most convenient way of accessing data directly on chain, but it tracks a limited amount of assets.
UMA is efficient, but the data is not accessible directly on chain.

Therefore we have the solution, that combines chainlink's convenience with the efficiency of UMA, which we call flash storage.

When a user sends a transaction, it’s supplemented with signed pricing data and directed to a proxy contract. 
The proxy contract strips the data out of the transaction.
It verifies its integrity by checking the signature and saves the data on chain. 
The raw transaction is forwarded to the commodity token contract which may conveniently access information from on chain storage.
The data may be erased afterwards to save the costs or kept for others. 

Thank you for your attention. 
Best regards from Alex, Jacob and David, a friend of all the Komodos.
Let us hope that the evolution will favour open protocols.