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1IntroductionThemarketofcryptocurrencyanddigitalblockchainassetshasdevelopedintoamatureecosystemcomposedofinvestors,speculatorsandtraders,exchangingalargenumberofblockchainassets.Unfortunately,thecomplexityoffinancialmarketshasyettocome:participantshavelittleabilitytotradethetimevalueofassets.Interestratesfillinthegapbetweenpeople,someownershavesurplusassets,throughborrowingtoachieveassetfinancing;thetimevalueoftradingassetsisbeneficialtobothsides,andcreatenonzerosumwealth.Forblockchainassets,therearetwomaindrawbackstoday:*extremelylimitedborrowingandlendingmechanisms,resultinginimproperassetpricing(e.g.,illiquid"scams"wherethereisnoshortvehicleleadingtounreasonablepricing).●thenegativereturnonblockchainassetsisduetohugestoragecostsandrisks(bothinsideandoutsidetheexchange),andthereisnonaturalinterestratetooffsetthesecosts.Thiswillleadtocurrencypricefluctuationsandrestraintheholdingofdigitalcurrency.Centralizedexchangesallowcustomerstotradeblockchainassetsonmargin,andincorporatethe"lendingmarket"intotheexchange.Thesearetrustbasedsystems(youhavetobelievethattheexchangewillnotbehacked,willnotabscondwithyourassets,orshutdownyouraccountincorrectly),limitedtocertaincustomergroupsandlimitedtoasmallnumberof(mostmainstream)assets.Finally,thebalanceandlocationarevirtual;youcannotmovepositionsonthechain,suchasusingborrowedetherortokeninsmartcontractsorICO,makingdapps[2]unabletoaccessthesefacilities.Peertopeeragreementspromotemortgageandnonmortgageloansbetweenmarketparticipants.Unfortunately,decentralizationhasbroughthugecostsandlossestousers;ineachoftheagreementsreviewed,lendersmustreview,manageand(inthecaseofmortgages)monitorloanprovisionandaggressivelending,andloanfulfillmentisoftenslowandasynchronous(loansmustbeconfirmed,whichtakestime).Inthispaper,weintroduceadecentralizedsystemforfrictionlessborrowingofEthereumtokenswithoutthedefectsofexistingmethods,toenablethepropermoneymarkettooperate,andtocreateasecurepositivereturnmethodtostoreassets2"reconcileagreement"ReconcileisanagreementtoestablishacurrencylendingderivativemarketonEthereumblockchain.Currencylendingisderivedfromthealgorithmofassetsupplyanddemand.Suppliers(andborrowers)ofassetsinteractdirectlywiththeagreementtoearn(andpay)floatingrateswithouthavingtonegotiatetermssuchasterm,interestratesorcollateralwithpeersorcounterparties.Two2/8EachmoneymarketisanEthereumasset(forexample,anerc-20stablecurrencyDai,orerc-20utilitytoken,suchasAugust),andcontainsatransparentandopenledgerthatrecordsalltransactionsandhistoricalinterestrates.2.1provisionofassetsUnlikeexchangeorpeer-to-peerplatforms,whereauser'sassetsarematchedandlenttoanotheruser,reconcileprotocolaggregatesthesupplyofeachuser;whentheuserprovidestheasset,itbecomesareplaceableresource.Thisapproachprovidesmoreliquiditythandirectlending;unlesseveryassetinthemarketisborrowed(seebelow:theagreementencouragesliquidity),userscanwithdrawassetsatanytimewithoutwaitingforspecificloanstomature.Theassetssuppliedtothemarketarerepresentedbytheerc-20tokenbalance,whichentitlestheownertoanincreasingnumberofunderlyingassets.Withtheincreaseofinterestinmoneymarket,thefunctionofborrowingdemandbecomesmoreandmorebasicassets.Inthisway,earninginterestisaseasyasholdinganerc-20token.2.1.1mainusecasesIndividualswhomakelong-terminvestmentsinetherandtokenscanusethereconciledmoneymarketasanadditionalsourceofreturnontheirinvestment.Forexample,userswhoownanauracanoffertheirtokentothereconcileprotocolandearninterest(expressedinAugust)withouthavingtomanagetheirassetsandtakespeculativerisks.Applications,machines,andexchangeswithtokenbalancescanusethereconcileprotocolasasourceofmonetizationandincrementalreturnsby"scanning"balances;thishasthepotentialtounlockanewbusinessmodelfortheEthereumecosystem.2.2loanassetsReconcileallowsuserstoborrowfromtheagreementwithoutloss,usingctokenascollateral,anywhereintheEthereumecosystem.Unlikethepoint-to-pointagreement,borrowingfromreconcileonlyrequirestheusertospecifytherequiredassets;therearenonegotiationterms,maturitydatesorfundingterms;theborrowingisimmediateandpredictable.Similartotheprovisionofassets,eachmoneymarkethasafloatinginterestratesetbymarketforces,whichdeterminestheborrowingcostofeachasset.2.2.1mortgagevalueTheassetsheldundertheagreement(representedbytheownershipofctoken)areusedascollateralforborrowingfromtheagreement.Eachmarkethasacollateralfactor,rangingfrom0to1,whichrepresentsthepartoftheunderlyingassetvaluethatcanbeborrowed.Assetswithweakliquidityandsmallassetsizehavelowercollateralfactor,whileassetswithhighliquidityhavehighercollateralThree3/8factor.Thesumofthevalueofthetokenbalanceaccount,multipliedbythecollateralfactor,equalstheuser'sborrowingability.Userscanborrownomorethantheirborrowingcapacity,andthemortgageassetswillbefrozenandnoncallableafterborrowing(e.g.Thetotalvalueoftheborrowedassetswillbehigherthantheborrowingcapacity