What Is Lithium (LITH)?

What Is Lithium (LITH)? Complete Guide Review About Lithium.

What Is Lithium (LITH)?

Currently Lithium protocols are constrained by lack of pricing of real world illiquid assets. Off-chain collateral requires informed pricing in order to execute corporate actions such as investments, liquidations and mergers and acquisitions. Creating a network of accurate and incentivized pricing experts for these off-chain assets is the critical missing link in enabling DeFi’s expansion from $77B+ to the real world assets of $100T – a 1300X increase. At the same time, we aren’t able to tokenize assets we can’t price.

Lithium Finance’s Pricing Oracle is a collective-intelligence version of platforms like Pitch Book and Crunch base, powered by cryptocurrency incentives which leverage the immutability of Ethereum’s global asset rails for reliable delivery of quality information. In addition, the participating oracles develop a reputation which enhances their earning potential and rewards increasingly accurate information.

Lithium Storage Key Points

Coin BasicInformation
Coin NameLithium
Short NameLITH
Circulating Supply2.10B LITH
Total Supply10,000,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

Wisdom Node

Experts who have knowledge in the latest pricing of private companies – they could be brokers, investors or anyone that is familiar with private market activities. A broker usually has the latest transaction prices of private companies. However, currently they have no incentive to disclose the pricing to industry peers, creating a very in transparent market. Investors who have regular touch points with their portfolios also have better estimation on changing prices. Lithium will explain the mechanism in detail on how to incentivize these Wisdom Nodes to provide the right data points.

Dominate Truthful Peer-Prediction

Recent advances in peer-prediction capabilities allow Lithium to query individuals to provide answers without access to the ground truth (an external answer with finality, i.e. stock price once IPO, or final score of a match). Previously, aggregating multiple users’ opinions has been thought to require access to final answers (ground truth) — but this is not the case. They can therefore select a set of Wisdom Nodes or aspiring Wisdom Nodes to answer questions in binary fashion (i.e. higher / lower or yes / no) or ternary (i.e. higher / neutral / lower) or categorically (i.e. <$10, $10-$20, >$20).

From this set of Wisdom Nodes and their confidence staking, we can mathematically determine the best answer prior to disclosure of the future ground truth, giving us the pricing information we need during illiquidity. The mathematical combination of all answers allows common answers to reinforce each other and off-axis — or non-correlated answers to cancel each other. This combination allows to reward those participating in consistent results. In some cases where the eventual ground truth is revealed, the reward will be distributed on disclosure, meaning once an asset is priced in the market.

PoWS — Proof of Wisdom Staking

Lithium Reputation is an added incentive and enhancement to correctness over time. Initially individuals may have low or no reputation, but as their performance improves they receive a higher reward, all else being equal. The closer a Wisdom Node is to the final ground truth, the higher their compensation. In addition, the more an individual signals their confidence in the results (by staking more tokens) the more they earn, enabling a strong feedback loop to encourage positive, honest behavior. Of course if a malicious actor decides to provide answers designed to manipulate, they might also decide to add a significant stake to their answer to maximize the impact.

Lithium In this case, once the consensus answer or ground truth is uncovered, not only will the malicious actor’s reputation be slashed, so will all of their stake. In the case of an attempt to collude with a number of malicious actors, the amount of funds required to stake plus the lack of direct influence (due to the random down-selection) means all of these funds will get slashed and the resulting answers will not be impacted. Therefore, the best action is to both answer honestly and stake your confidence.