This repository covers the smart contract and web portion of Highstreet Market, a product within the Highstreet World Metaverse. for more overviews on Highstreet World itself, please visit: https://docsend.com/view/6vcat9niwhrfjik3

Highstreet Market is a limited edition marketplace catered to influencer lead brands or product collaboration between celebrities and artists. The market place is available both on the browser or in the metaverse through Highstreet World. Buying on the browser is as easy as ever, simply visit https://Highstreet.market and connect your wallet, then purchase the products you want with $HIGH. In the Metaverse, if you take the ferry from Fresh Mint Island to Highstreet City, you'll dock on a rooftop that serves as the 3D Manifestation of Highstreet Market.

On May 9th 2019, the Uniswap team announced Unisocks($SOCKS) at the Fluidity Summit in NYC. Although Unisocks wouldn't be the first product represented on the Ethereum blockchain by Tokens, it would be the first to allow every token to be redeemable for a pair of actual SOCKS in real life. Since only 500 tokens will ever exist, every SOCKS sold increases the price of the next one. Following a bonding curve to govern it's price, Unisocks tokens can be sold back to the liquidity pool at any time.

Although Unisocks was launched as a proof of concept for a decentralized exchange, it demonstrated a viable path to disrupting the way physical goods are released. From a Luxury Brand's new line of apparel to VIP Concert Tickets, Fine Dining Restaurant Reservation to Small Batch Wine and Whisky sales, any limited edition product can be sold on a bonding curve. As such, our team has taken it upon ourselves to build exactly that, a marketplace on the ethereum blockchain for high end brands to launch their limited edition products.

Brands like Nike or Supreme periodically drop limited edition products, however majority of the product's value kick in after the drop in secondary markets. These markets are often plagued with fraud and are a logistical nightmare for all parties involved. Token based rollout strategy will allow brands to not only capture part of the resale value of their products but also protect them from malicious 3rd parties.

Bonding Curves were made popular by DEFI platforms like Uniswap, Aave, and Bancor in order to ensure liquidity and remove the need for traditional market makers like in centralized orderbook based exchanges. Bonding Curves use a pricing algorithm that serves as the Automated Market Maker (AMM) so buyers and sellers of our product tokens can always ensure that there's someone on the other side to trade with.

For our product tokens, first a user can stake tokens into the bonding curve's reserve pool, by doing so product tokens are minted for the user based on the pricing algorithm. When a token is purchased this way, every subsequent token will increase in price, meaning early buyers are rewarded as they can now sell their tokens back for a profit.

Although there are many bonding curve formulas out there, we are adopting the Bancor Formula

• Reserve Token refers to the token that the users initially stake into the bonding curve

• Continuous Token is the product token received once Reserve Tokens are staked

• Reserve Ratio is a fixed ratio from 0 to 1 between the Continuous Token's market cap and the value of the Reserve Token Balance.

• Since the Reserve Ratio is directly related to price sensitivity, this ratio will vary depending on the type of product being minted

Every buy and sell moves the Reserve Token Balance and Continuous Token Market cap, so in order to maintain our Reserve Ratio, the price of the Continuous(Product) Token will be continuously recalculated.

Initially we had our sights on the famous Bancor Bonding curve. Not only was it the most popular but also the most documented and referenced literature. However very quickly we discovered its limitations pertaining our specific use case.

From the beginning, we can already foresee that a lot of the features and results that we seek for a bonding curve based commerce platform directly goes against the nature of bancor’s implementation. At a glance the Bancor curve should be able to conclude that token price = Reserve Balance / (Supply * reserve ratio). However there’s a catch here, this formula is designed for a framgentable token, thus the pricing function computes instantaneous price at a given supply value down to 10^18th decimal. This pricing logic falls apart completely when each product token by design has to be whole. Since each token is pegged to a real world item, it does not make sense for buyers to own partial products. Additionally because these are real items with real world market value we cannot initialize the token price at $0 when supply is also at 0.

In order to solve the above mentioned problems, we had to do a deep dive on the derivation process of the Bancor equation. We started with the fundamental idea that we wanted a curve that resembled some sort of hockey stick growth: as supply is driven closer to the upper cap, the price for each token increases more drastically. With an exponential equation (eq. 1), we can control the behavior of token prices on both ends of the spectrum: m will control price behavior when supply in circulation is low, and n will control price behavior when supply in circulation is high.

In order to address the issue that our token cannot be fragmented, we have to look for a way to precisely calculate the price to purchase one token based on the instantaneous price function given in equation 1. Upon further learning, we realized that the area under the pricing curve actually represents the total amount of stake tokens in the pool. Hence we can model changes in reserve balance by computing the anti-derivative of the pricing function (eq. 2). Thereby, we can derive the equation further to compute precisely the price for k tokens given the existing supply of x (eq. 3 - 9). So far, this is all within the scope of bancor formula implementation; we had to make adjustments on our business logic to account for the indivisible nature of our tokens (i.e, adjust for price calculation and token transaction logic), but no deviation from existing Bancor implementation thus far.

Implementing initial pricing is where deviation starts to show. Initially we thought about modifying the pricing function with a constant (eq. 10). This however introduces a new complexity, as we have arrived at a term that cannot be simplified easily (eq. 11 - 13), and not computationally viable if calculated as is.

An alternative we chose to pursue is an equation similar to eq. 14. This has an advantage in that this does not modify any code of the existing Bancor curve implementation, and thereby minimizes risks for coding error. What we have to take into account however, is that based on the initial price (the ideal y intercept of p(s) when s = 0), we have to compute supply shift and reserve balance as prerequisites when creating a new token.

In order to defend against pumps and dumps, we've incorporated two main forms of defense. The first is by means of the reserve ratio. The higher the reserve ratio between Reserve Token Balance and Product Token will lower the price sensitivity, this means depending on the product we can tweak the reserve ratio to ensure drastic price swings don't occur. The second is by means of KYC, we understand this may be a hotly debated issue, however as of now we have no other means of limiting the amount of the same product each individual can buy. This being said, we are open for community suggestions and open the floor to any members who may have a better and more anonymous way of ensuring a few individuals don't ruin the fun for everyone!

Smart contracts written in solidity will mint new product tokens everytime a user deposits DAI or ETH into the Product Reserve Pools. The Product Token Value is calculated via a pricing function that you can directly inspect in this respository.

The market place's front end interface is a web application built on React. Buying, Trading, and Redemption of tokens can be performed on the web app interface. Redeeming a product token will send it to address 0, effectively burning it and removing it from circulation forever. Users interact with the market place the same way they would any other web application with the exception that Metamask is required to fully use the service.

The entire market place of course is also available on Highstreet World, our metaverse built on Unity. Highstreet world is a MMORPG game where in-game items are real products by real brands. The game is built on Unity and has Native VR support built in. Mobile and Standalone VR access will be coming in February 2022.

Click on the image to play our in-engine trailer:

• Users unlock liquidity mining by enrolling in Viveport’s subscription service

• Users earn High Tokens by completing certain tasks in the metaverse like buying and selling products in our marketplace

• High Tokens that are mined can be sold on centralized and decentralized exchanges, however we incentivize users to use it to buy products, as doing so will qualify them to share a portion of the purchasing transaction fees.

• High Tokens aim to be the ultimate utility token across the metaverse, so our goal for future releases is to include our Unity SDK inside Viveports development kit so a list of qualified actions from 3rd party games can also share in on our tokenomics framework.

• Every product pool provides new opportunities for High Token Stakers

• By buying products with our High Token, Highstreet Residents automatically turn on staking rewards generated from that product pool

• Every transaction comes with a fee, out of the 4% collected on every purchase, 1% is shared towards Street High Stakers in the pool.

• Although the bigger your stake the more you earn, we still incentivize smaller players by starting staking reward accumulation based on timestamp

• Rewards are paid out in High Tokens upon selling or redeeming product tokens