Potion Protocol will be open-sourced via a novel on-chain NFT game
Published in blockchainreporter.net
On March 14th 2022, PotionLabs will launch Potion Unlock, a launch mechanism that represents a hybrid of many emerging approaches currently being tested in web3. Players will be able to purchase NFTs through a Dutch-style auction, providing them with a password segment that can be used to collaboratively unlock the Potion Protocol. If successful, the community will be rewarded with the entire code and documentation for a new, powerful risk management layer in DeFi.
DeFi motivation
PotionLabs is seeking to accomplish several goals with this launch model. The developers are deep believers in decentralization and designed Potion Unlock to transfer control of the Potion Protocol to the community. In this way, the approach delivers “aggressive decentralization’ and avoids power becoming concentrated in the hands of the few, ensuring that it is instead spread across the community.
This form of protocol release is also meant to create a commercially viable way for PotionLabs to continue to finance its groundbreaking research work, while operating within clear regulatory guidelines. It will be interesting to see if the release model will be replicated or adapted by future Web3 projects.
Blockchain mechanics
To achieve complete decentralization, the protocol (encrypted using a symmetric key and a modern and secure stream cypher algorithm) has been uploaded to IPFS. The password has then been split into 10,000 fragments and embedded into 10,000 NFTs. This provides on-chain identity and agency to anyone participating in the game.
Asymmetric cryptography will ensure that each fragment is only accessible to its NFT owner. Each fragment is encrypted with the original minter public address, and will require a single-click to decrypt via Metamask. A secure system that still manages to deliver a simple and elegant UX.
Finally, when it comes to participants revealing their secrets, a Validator smart contract will ensure that this can be done trustlessly. A Merkle proof will be used to validate that a given provided password fragment is original, providing evidence to others on chain that password fragments are authentic.
The smart contract will also provide a single source of truth, as password fragments will be accumulated every time someone executes a reveal. This will continue until the complete password is visible and publicly available on chain. At this point, anyone will be able to decrypt and access the Protocol’s codebase.
For a deeper description of Potion’s blockchain architecture, take a look at their comprehensive documentation.
Last chance to purchase an NFT rarity
There are 6 NFT types or “rarities” in the game, each with a different “decryption power” (length of the password segment), giving the various players different capabilities and powers. Each NFT rarity also has a different “redundancy” level (based on the number of duplicates), so no single holder can block the resolution of the game.
NFT Rarities
Over half of the 10,000 NFTs have already been acquired, either by early founding members of the community (OGs), or by private buyers in a $12m sale. 1,000 NFTs were also airdropped to leading members of prominent DAOs.
The upcoming auction is the last chance for interested investors to purchase an NFT and take part in Potion Unlock themselves. If you are one of these, get started by whitelisting yourself and registering a metaMask wallet on the game’s website.
About Potion Labs
PotionLabs is a web3-native research and software development company that has developed a robust risk management layer for crypto assets, the Potion Protocol. It pioneers a new risk pricing model based on the Kelly Criterion, that results in long-term survival mathematical expectations for LPs and deeper, more reliable liquidity markets for users. The release of the Protocol’s code is launching shortly through the Potion NFT Unlock game.
Twitter: https://twitter.com/PotionLabs
Deep dive: https://Linktr.ee/PotionLabs
