11. OVERVIEW 32. THE SHORTCOMINGS OF A NASCENT CRYPTOCURRENCY MARKET 43. THE POWER OF CRYPTOCURRENCY AS AN ASSET CLASS 74. THE VISION THE OLYMPUS ECOSYSTEM 84.1 The Olympus Marketplace 84.2 The Olympus Wallet 94.3 The Olympus Blockchain 104.4 Tools for Privacy and Encryption 114.5 Financial Products Protocol 115. STRUCTURAL SHIFT A NEW PARADIGM FOR FINANCIAL DERIVATIVES 125.1 Smart Contract Model 125.2 Leverage Without Margin 135.3 Financial Products 146. GO-TO-MARKET STRATEGY 156.1 Product 156.2 Liquidity 166.3 Investors 177. OLYMPUS BLOCKCHAIN THE FINTECH BLOCKCHAIN 187.1 Blockchain 187.2 Tokenomics 188. PRIVACY AND ENCRYPTION 198.1 Zero Knowledge Proof 198.2 Homomorphic Encryption 209. ROADMAP 2110. DISCLAIMER 2321. OVERVIEWAs of November 2017, the total market cap of all cryptocurrencies stands at around 200 Billion USD. This is in comparison to a mere 40 Billion market cap at the beginning of the year, and a stunning success for a market that did not exist less than a decade ago. However, cryptocurrency as an asset class is still in its early days, as a single company’s stock valuation can be multiples of times larger than the entire cryptocurrency market. A simple comparison to the market cap of other asset classes in this visual shows the limited scale but also the great future potential of the cryptocurrency market. To point out a few figures, the global stock market is worth 73 Trillion, the debt market is worth 215 Trillion, the real estate market is worth 217 Trillion, and the derivatives market is worth 544 Trillion. We believe that the cryptocurrency market can become as developed as these existing asset classes, and it is our mission here at Olympus to create the cryptocurrency asset class. Our vision is to bring cryptocurrency-based financial products to main street and to financial institutions in a safe, secure, and transparent manner. This will make it so that the average investment portfolio in the future will include cryptocurrency financial products as much as it includes equity, fixed income, and real estate financial products. Cryptocurrency-based derivative products that are powered by blockchain and smart contract technology will play a key role in building cryptocurrencies into an asset class that is both mature and sustainable in the long term. The current cryptocurrency market experiences high levels of volatility and correlation of price movements tends towards 1 during market crashes. Both of these tendencies leave investors without any downside protection. This means that most of the risk that investors are exposed to is systematic market risk and not idiosyncratic risk, and thus diversification in terms of owning more cryptocurrency types will not solve the fundamental problem of extreme downside risk. The only viable strategy for most seems to be buy, hold and pray; this needs to change for cryptocurrencies to enter into its golden age. Cryptocurrency financial derivative products are critical because they allow the creation of well-diversified cryptocurrency portfolios that can hedge against market risk and extreme volatility. This can allows portfolio managers, asset managers, and private wealth managers to construct cryptocurrency portfolios that are suitable for their investors and meet their 3investment mandates. Average investors will also be able to participate in this market as they can gain exposure without massive volatility and risk to their portfolio and investment capital. Olympus will create cryptocurrency inds akin to the SP and work with fund managers to create cryptocurrency funds that meet the investment goals and risk tolerance of their investors. Of course, cryptocurrency derivative products can also be used by more experienced investment professionals to take on more customized exposure and to leverage up. Here, Olympus Labs presents an innovation known as leverage without margin that structurally changes the traditional derivatives framework. Olympus Labs is a blockchain-powered cryptocurrency financial ecosystem that defines the protocol for cryptocurrency-based financial products. The Olympus ecosystem provides investors with a comprehensive financial marketplace filled with financial products, services, and applications that serve their investment needs. Olympus Labs provides the products and tools for investors to properly manage their crypto-wealth, giving them the ability to construct a well-diversified portfolio, to hedge against downside risk, and to make positive returns in any market condition. 2. THE SHORTCOMINGS OF A NASCENT CRYPTOCURRENCY MARKETThe current cryptocurrency market is a mainly spot market and as a result suffers from many limitations that prevent the cryptocurrencies from maturing as a true asset class. The cryptocurrency marketplace, aside from a few derivative products on bitcoin, is sorely lacking in even basic derivative products necessary for portfolio construction, risk management, and exposure targeting. There are a few key reasons for this situation Overall market was not mature enough to incorporate financial derivatives Lack of exchanges that provide liquidity for these financial products, Lack of a standard protocol to create, uate, and trade these financial products. 4Olympus will tackle the above-mentioned challenges to create a crypto-based financial derivatives marketplace. Below is a list of critical limitations of the current cryptocurrency market Lack of derivative products for hedging against downside risk/protect your portfolio Inability to take negative delta/short positions to profit in downturns Inability to take on desired customized exposure eg. exposure to volatility Inability to generate carry on holding cryptocurrencies Inability to take on leveraged positions Lack of crypto-wealth management products High market volatility, especially during market downturns as correlation tends towards 1 All of the above combined means that an investor cannot properly manage his/her cryptocurrency portfolio. This prevents mainstream investors and institutional investors from entering this space, which is important in establishing cryptocurrencies as a mature and long-term asset class. Jamie Dimon’s dismissive comments on cryptocurrencies would be comical if the size of the cryptocurrency market were tens of trillions of dollars instead of 200 billion dollars. The current limitations also poses serious problems for current cryptocurrency investors. We have surveyed and summarized some pain points for cryptocurrency investors in the market today. 5Existing pain points for cryptocurrency investors Example 1 You are holding BTC and want to buy into a new ICO, but do not want to sell your BTC. Olympus is creating a product to allow investors to collateralize their BTC and increase their allocatable exposure. Example 2 You are holding BTC and want to general profits from holding an asset the way a stock would pay dividends. Olympus is creating a product for you to lend out you BTC to generate interest income while ensuring you will get 100 of your BTC back. Example 3 You are a blockchain company that just raised millions in an ICO, and most of your funds are in ETH or BTC which can be volatile, making it difficult to align budgeting and operational plans. Olympus financial products and services will allow you to manage your funds for value preservation and stability. Example 4 You sense that the market is going down, and would like to profit from this anticipated movement, but cannot do anything aside from moving your cryptocurrency investments into cash. Olympus is creating financial products to short the market and profit when the market is going down. Example 5 You want general market exposure to the cryptocurrency market and are looking for a simple index such as the SP 500 for the cryptocurrency market, but have to construct this manually and rebalance periodically on your own, costing time and fees. Olympus will create market inds that will give you a diversified exposure to the cryptocurrency market with a single product. The above are just a sample list of pain points that cryptocurrencies investors face today. Olympus will solve those pain points and many more with our financial products and our financial ecosystem of products, tools, and D-Apps. 63. THE POWER OF CRYPTOCURRENCY AS AN ASSET CLASSAn asset class can be defined as a group of securities that exhibits similar characteristics, behaves similarly in the marketplace and is subject to the same laws and regulations. Most portfolios, whether individual or institutional, will allocate investment funds to the main asset classes to construct a well-diversified investment portfolio. The major asset classes include money market instruments, fixed income products, stocks or equities, real estate, and derivative products. Note the absence of cryptocurrencies from that list of asset classes that receive the major investment flows. The result is simple and shocking from a capital flow and market cap perspective, as has already been demonstrated by the market cap comparisons in the Overview section. The relative small market cap of cryptocurrencies means that it is volatile, that it is difficult for institutional investors and main street to join, and that the market as a whole is vulnerable to certain events such as forks. The power of cryptocurrency becoming an asset class, in light of the existing asset classes, is quite obvious. For one, the markets will become more stable and less volatile, giving cryptocurrency investors returns without the high level of volatility. Secondly, the increased funding from both institutional investors and main street investors will grow the cryptocurrency market to multiples or even 10 x or 100 x of its current size, shoring up the cryptocurrency market for long-term sustainability. Furthermore, there will be a wealth of cryptocurrency-based financial derivative products that will give investors the power to properly manage their crypto-wealth. Thus, a deep derivatives marketplace for cryptocurrencies will empower investors and solidify cryptocurrencies as an important asset class. The benefits of a deep derivative cryptocurrency marketplace and creating a cryptocurrency asset class are summarized in the list below Investors have the tools and products to make positive returns regardless of market conditions both when markets are going up and when markets are going down 7 Investors, both retail and institution alike, can hedge their portfolio risk Investors can access a wealth of crypto-wealth management products to easily construct a well-diversified portfolio Cryptocurrency holders can generate carry income on the crypto assets that they hold Investors can take on leverage without risking portfolio margin calls It will bring in large institutional investors as well as mainstream investors There will be reduced market volatility and market vulnerability Cryptocurrencies will become a mainstay in asset allocation 4. THE VISION THE OLYMPUS ECOSYSTEMThe vision of Olympus Labs is for cryptocurrencies to develop as an asset class to rival that of stocks, debts, and real estate. We look to put Olympus cryptocurrency products into the portfolios of millions of investors, and to democratize wealth creation and wealth distribution through cryptocurrency-based financial products. Olympus Labs is building an ecosystem to cute on our vision and to turn our vision into reality. The Olympus Ecosystem is a blockchain fintech ecosystem of tools, products, services, and fintech D-Apps. There are five main components of the ecosystem 1. The Olympus Marketplace, 2. The Olympus Wallet, 3. The Olympus Blockchain, 4. Olympus Privacy and Encryption, and 5. The Olympus Financial Products Protocol. 4.1 The Olympus Marketplace At the core of the Olympus ecosystem is the marketplace for crypto-based financial derivative products and fintech D-Apps. The crypto-based derivative products will be built by both 8Olympus and third-party product developers. The fintech D-Apps are third party applications such as Cindicator, Spectre, Santiment, Kyber, Shapeshift, and others that will provide their services on our plat in return for user traffic. All financial products depend on an index or benchmark, and each crypto asset pair in the crypto asset decentralized exchange can serve as the underlying asset for crypto-based financial derivatives. In the Olympus marketplace, the financial products can also take the of independent applications with their own underlying investment strategies. Olympus provides the infrastructure for financial product creation and the plat for financial product distribution and exchange. We also offer tools for financial product creation through SDKs and APIs to encourage cooperation and make it easy to create financial products. Users can find a variety of financial products in the financial product marketplace and choose the products that align with their financial goals, risk tolerance, and desired exposure. The goal of Olympus is to create a marketplace that can provide users with the financial products that can help them meet their financial goals with any set of financial objectives. 4.2 The Olympus Wallet The wallet serves as the payments and transactions settlement backbone of the ecosystem. Unlike existing wallets, The Olympus wallet is a crypto asset wallet. Crypto assets include cryptocurrencies and cryptocurrency-based derivatives. We believe that crypto assets will soon be indispensable in capital allocation and portfolio construction. Crypto assets have a few key advantages They are easy to carry They require minimal transaction fees to transfer 9 Transactions involving crypto assets simultaneously ensure crypto asset ownership and user privacy. As the user’s portal to their crypto assets, a wallet must guarantee security while also providing an user-friendly experience. In addition, with the continuous development of the crypto asset market, multi-asset allocation is also a growing need. The wallet is designed from the outset to support multi-asset portfolio management in order to better meet the anticipated needs of investors. To achieve security and multi-asset allocation, our public-private key management system will be based on Key Tree. By using a sufficiently long random number as a seed to derive the root private key, each child public key and chain code was backwards derived from the parent private key. Similarly, in considering the privacy issue, we enhanced the difficulty of traceability by deriving a separate interchange address path, which can be used to leave different output address for each transaction. The backup of the key is also essential, therefore we encourage users to create a key backup at the beginning of a wallet creation in order to pr