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1. OVERVIEW 32. THE SHORTCOMINGS OF A NASCENT CRYPTOCURRENCY MARKET 43. THE POWER OF CRYPTOCURRENCY AS AN ASSET CLASS 74. THE VISION: THE OLYMPUS ECOSYSTEM 8

4.1 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 11

5. STRUCTURAL SHIFT: A NEW PARADIGM FOR FINANCIAL DERIVATIVES 125.1 Smart Contract Model 125.2 Leverage Without Margin 135.3 Financial Products 14

6. GO-TO-MARKET STRATEGY 156.1 Product 156.2 Liquidity 166.3 Investors 17

7. OLYMPUS BLOCKCHAIN: THE FINTECH BLOCKCHAIN 187.1 Blockchain 187.2 Tokenomics 18

8. PRIVACY AND ENCRYPTION 198.1 Zero Knowledge Proof 198.2 Homomorphic Encryption 20

9. ROADMAP 2110. DISCLAIMER 23

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1. OVERVIEW

As 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

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investment 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 indexes akin to the S&P 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 MARKET

The 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, evaluate, and trade these financial products.

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Olympus 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.

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Existing 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 S&P 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 indexes 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.

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3. THE POWER OF CRYPTOCURRENCY AS AN ASSET CLASS

An 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 10x or 100x 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

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• 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 ECOSYSTEM

The 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 execute 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

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Olympus 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 platform 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 form of independent applications with their own underlying investment strategies. Olympus provides the infrastructure for financial product creation and the platform 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

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• 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 prepare for any contingencies.

The ability to make payments is another important feature of the wallet. Payments can be made by direct transfer, just as one would with other forms of online payments. A user only needs to scan the QR code of an item and enter the corresponding amount in the wallet to complete the transaction immediately. We will also provide multi-platform developer tools to facilitate the rapid integration of e-commerce platforms and other platforms with virtual asset payment requirements to provide better, faster, and wider use of wallet features.

4.3 The Olympus Blockchain

The Olympus ecosystem is inherently focused on financial markets. Many current public blockchains do not have the same basic characteristics of the Olympus ecosystem or they cannot meet the specific needs of the financial sector. Olympus will engage in public blockchain research and development, while providing products to introduce blockchain-powered finance to the masses.

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Financial product analytical tools and investment strategy encryption will be available to developers working on innovative financial products. For users, Olympus will open up the financial and crypto asset markets. For developers, it will be a supportive network to develop interesting strategies. A later section will go into the Olympus Blockchain in depth.

4.4 Tools for Privacy and Encryption

Privacy is an important issue in blockchain, and an even more important issue for financial applications on the blockchain. The identity of the investor making a trade should be protected in order to prevent him/her from being taken advantage of by whales with large amounts of capital and the tools to see who are making trades. By incorporating zero knowledge proof into the Olympus Ecosystem, we will achieve investor identity privacy-preservation, thus protecting investor interests.

In addition to the identity of the investors, the actual trades need to be protected as well in order to protect proprietary trading strategies and to prevent others from front-running orders and causing massive adverse market impact that causes a large financial cost for the investor. We will explore options to accomplish this, including conducting R&D on homomorphic encryption.

4.5 Financial Products Protocol

The financial products protocol is a key building block of the the Olympus Ecosystem. Rather than building individual fintech D-Apps and financial products that are unrelated to each other, we believe that building a common protocol for financial products will make a lasting impact in this industry. Referring back to the definition of an asset class as products that behave similarly, this protocol will tie the cryptocurrency products together to resemble that of an asset class. The protocol will be open-sourced to serve as a foundation for decentralized blockchain fintech applications. Internally, the protocol will have privacy-preservation features and externally, the protocol will be in the form of an API to allow for rapid development of applications. The protocol will also standardize cryptocurrency-based financial products and

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allow third parties (product developers, software engineers, financial engineers) to create financial products based on the Olympus protocol. In essence, through this protocol, Olympus decentralizes the financial product creation process.

5. STRUCTURAL SHIFT: A NEW PARADIGM FOR FINANCIAL DERIVATIVES

The decentralization that blockchain enables is heralded by many to have the power to transform the way we live on a similar scale as the internet did. A major assumption underlying this belief is that decentralization will allow direct peer-to-peer interactions in a trustless environment, cut out middlemen, and therefore reduce costs and complexity. This will usher in a new age of prosperity.

Unfortunately, the majority of blockchain projects do not actually solve any real world problems or reduce structural complexity. It is with great excitement that Olympus is structurally shifting the financial derivatives landscape by changing the framework for financial derivative products and cutting out middlemen for multiple processes.

5.1 Smart Contract Model

The Olympus financial products protocol sets the standards for the financial products that can be built in the Olympus Ecosystem. For example, all financial products in the Olympus Ecosystem must be based on an underlying asset that is a cryptocurrency or cryptocurrency pair. The financial products that are created using this protocol will be in the form of a smart contract/token. The smart contract token then executes to allow for the myriad of financial products in the ecosystem. There are a few features of the smart contract token that are worth pointing out.

Self-executing: Once the smart contract is activated, it will run the logic that was pre-programmed to deliver the financial outcomes laid out in its product description. There is no manual verification or levels of back office paperwork. This cuts costs in the system, in the form of processes, manpower, financial cost, and time savings.

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No Counterparty Risk: Since all of the logic is executed within the smart contract, and the smart contract is traded on the open market, there is no underwriter or counterparty risk. This directly reduces the risk in the system, which in turn directly reduces cost. Moreover, this eliminates the costs related to assessing and hedging counterparty risk.

Blockchain Finance, not Finance on Blockchain: There might not appear to be any difference between the two, but they are two completely different visions of the future. Most projects in the blockchain finance space fall into the second category of finance on blockchain. This typically means that blockchain is only used as a ledger and all of the trappings of traditional finance are kept in tact. While this is a step in the right direction, Olympus has chosen to take a bolder path to create blockchain finance. This means leveraging all of the power of blockchain technology to create an entirely new financial framework that is suited to cryptocurrency, blockchain technology, and smart contract technology. The next section highlights a key innovation of Olympus Labs that brings this to life.

5.2 Leverage Without Margin

A key innovation in Olympus Labs is the creation of financial products that makes it possible to have leverage without margin. Leverage refers to the act of taking on debt. Margin is a form of debt or borrowed money that is used to invest in other financial instruments. Traditionally, if an investor wanted to gain more exposure to a certain asset without putting in more of his/her own capital, then he/she is engaging in leverage, and the money that he/she borrows to allow for the leveraged position is called margin.

For example, let’s say a stock costs $10 and an investor has exactly $10. Without taking on leverage, he can buy one share of the stock, and if the stock goes up by $1, the investor will have made a gain of $1. Now assume he wants 2x leverage, meaning he wants to make a profit of $2 should the price of the stock go up by $1. Then he needs to borrow $10 as he would in fact be buying two shares of the stock to get the 2x leverage. This is typically done through the broker-dealer with the funds coming from syndicates, who charge an interest on lending the money. It’s a complex and costly system and worst of all, if the position goes against the investor in an adverse manner, then the investor might get the dreaded margin

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call, where the investor is forced to either put in more capital or be forced to liquidate their positions, even those not related to this investment, to ensure a safe capital position. There are many cases in which the market rebounds right after an investor is forced to liquidate through a margin call. Leverage then is not only costly from a processes and accounting perspective, but also from a portfolio risk perspective, as a single position can put your entire portfolio at risk.

The innovation of leverage without margin equates to a structural change in financial derivative paradigm. Through smart contracts and embedded oracles, these products can achieve real-time mark-to-market profit and loss calculations. Taking the example in the previous paragraph, this means that if the investor wants 2x exposure, he does not need to borrow money as he does not actually need to own 2 shares of the stock. The smart contract is set to perform as if it has 2 shares of the stock and p&l will be calculated accordingly. The fact that the cryptocurrency market is open 24/7, unlike other asset classes that have opening and closing trading times, means that there is also less risk of price jumps for underlying assets.

Leverage without margins means a few important things: • We are eliminating loan syndicates as there is no more need for borrowing/margin to achieve leverage, removing entire processes and players from the derivatives market

• We are changing the derivatives pricing model as interest rates, a major factor in current derivative pricing models, are no longer a factor in this new model

• The investor will only risk whatever investment he/she has put into the smart contract token, protecting his portfolio against margin calls.

5.3 Financial Products

All Olympus financial products will be based on smart contracts. Some of the benefits of doing so are: • Achieve leverage without the need for margin

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• Ensure the return profile of products is clear and transparent

• Trade across existing exchanges with ease

The financial products in the marketplace will attract investors of all risk appetites, from the risk-averse to the risk seeking. Below are a sample of product types that will be available: • Fixed Income Products

• Market Indices

• Leveraged ETFs

• Binary Options

• Options

• Futures

6. GO-TO-MARKET STRATEGY

The vision of Olympus Labs is to become the blockchain fintech ecosystem.  At the core of Olympus Labs’ go-to-market strategy is to empower our partners and the community to build and to succeed. Their success will lead to network effects that make Olympus invaluable to the blockchain fintech ecosystem. As there are more use cases and more users on the Olympus platform, the demand for MOT (Mount Olympus Tokens) will increase, and against a limited supply of tokens, this will cause a rise in the price of MOT, thus rewarding early investors and supporters of the Olympus community.

6.1 Product

Having a simple blockchain infrastructure is far from enough to convince developers to join the Olympus ecosystem. The key to attracting financial product developers to join the Olympus

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ecosystem is to build infrastructure that allows them to shorten the product development cycle and speed up the process for getting a product from the idea phase to the product launch.

We will provide developers with a variety of development kits so that they can build financial products and applications easily and quickly. Developers are encouraged to integrate the SDKs into their own financial products and applications for the Olympus Financial Products Marketplace.

By supporting developers in these ways, we will build an active and engaging developer community. As more financial products and applications are added to the ecosystem by developers, users also benefit from a wider array of financial products that meet their diversified needs.

We believe in the power of good ideas. Thus, Olympus will provide funding to community projects that show promise and vision. In order for our ecosystem to grow and thrive, it is necessary to have a pipeline of outstanding financial products being developed by the community’s users and developers.

We will take the initiative to seek out these projects, both within our community and from outside through events such as hackathons. With our fleet of ground-breaking financial products and the support we offer to forward-thinking projects, the Olympus ecosystem will flourish for both users and developers.

The Olympus platform will promote partner products and applications in the Olympus marketplace and drive traffic to these products and applications.

6.2 Liquidity Liquidity is king for any financial product. Without liquidity, there is no market, no price, and no value. Therefore, Olympus emphasizes the importance of providing liquidity to Olympus financial products. To that end, we have embarked on a few initiatives.

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• Olympus is partnering with market makers and liquidity providers and offering bounties for traders who help provide liquidity for Olympus products.

• Olympus is partnering with existing exchanges. The exchanges will provide liquidity and get the fees from the transactions.

• Olympus is integrating decentralized exchanges into the Olympus platform to create a liquidity pool for order book matchmaking.

6.3 Investors

The end goal of all of this, of course, is to put Olympus financial products in the hands of investors and empower them to have a more robust and well-diversified investment portfolio. Therefore, it is key that we have a strategy in place to disseminate our products into the marketplace. There are a few strategies that we are pursuing: • We are partnering and integrating with blockchain players with existing user bases such as wallets and exchanges to offer their users our products. It is a win-win as Olympus products are distributed widely and our partners are able to retain and attract more users with our product offerings.

• Partnerships with asset managers, portfolio managers, and private wealth managers to create funds and portfolios to meet their investors’/clients’ desires to gain cryptocurrency exposure in a way to meets the funds’ and the clients’ mandates for capital preservation, volatility management, etc. To that end, we are organizing special events and industry meetups to educate fund managers and help them set up crypto-funds for their clients.

• Creating a new breed of crypto-advisors who would play a similar role as an investment advisor in the traditional financial world. They would advise their clients to allocate some of their funds to Olympus financial products. It is our strong belief that the ICO investment wave will come to pass in the near future, and it will be a great transition for those involved in ICOs to switch over to working with Olympus financial products.

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7. OLYMPUS BLOCKCHAIN: THE FINTECH BLOCKCHAIN

7.1 Blockchain

Olympus will use the Ethereum blockchain in its initial launch stage. However, Olympus plans on developing its own public blockchain that will be tailored for fintech applications.

Two core issues are the limitation of transactions per second (TPS) and privacy of existing public blockchains. We expect high trading volume and a large number of transactions in financial derivatives markets and need to prepare to meet that need. Also, when handling financial information, advanced privacy-preserving techniques such as zero knowledge proof need to be implemented, and will be integrated with the Olympus blockchain.

In addition, Olympus financial products are in the form of smart contracts which will need to have special features built in such as oracles for pricing fees, mark-to-market p&l calculation, and built-in margin conditions. As a result, we need to define a new smart contract standard for financial products, and this standard needs to be compatible with both Olympus blockchain and the existing ERC20 standard.

Furthermore, existing consensus algorithms have a tendency towards centralization at some point in the network, such as mining pools for POW or large stakeholders for POS. We are exploring options for a consensus algorithm that will meet our needs of efficiency and true decentralization, namely DPOS and DAG. DAG has proved to be faster, but the double-spend problem in DAG is in need of an elegant solution. The team will explore and test DPOS and DAG to decide which will better meet the needs of Olympus.

7.2 Tokenomics

All transactions carried out on the Olympus Ecosystem, including product creating, payment settlements, product purchases, and transactions on the exchange, are subject to fees in order to prevent network abuse and encourage a healthy ecosystem. The fees required for the transactions are specified in units of gas. Gas is used to pay the fees for all transactions that deploy on the Olympus blockchain or the Olympus smart contract. The specific amount of gas required for each transaction depends on the type of the transaction and the amount of

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system resources required to execute it. Gas only exists in the context of executing transactions in the Olympus Ecosystem. MOT (Mount Olympus Tokens) are used to purchase the gas used to conduct the transactions, so the gas price is quoted in the number of MOTs. The gas price will fluctuate based on the amount of transactions on the network and the amount of resources that are available to reach an equilibrium price.

8. PRIVACY AND ENCRYPTION

8.1 Zero Knowledge Proof

Zero knowledge is an important technology to integrate into Olympus to ensure the privacy of investors.

Introduced by S.Goldwasser and C.Rackoff in the 1980s, zero-knowledge proof is a cryptographic methodology by which one party (the prover) can prove to another party (the verifier) that a given statement is true, without conveying any information apart from the fact that the statement is indeed true. Zero knowledge proof is an effective cryptographic method of establishing a secure privacy-preserving protocol. To understand zero-knowledge proof, start by defining an interactive proof system. Interactive Proof System: a pair of interactive machines [P,V], where P and V represent the prover and the verifier respectively, can be considered as an interactive proof system of language L if they satisfy the following requirements: 1. Machine V is polynomial time 2. Completeness: for any x ∈ L , there exist an honest prover P, so that the system outputs x ∈ L when the verifier V completes the interaction with P 3. Soundness: for any x ∈/ L and any prover P, the system output x ∈ L with negligible probability when the verifier V completes the interaction with P A zero knowledge proof system is an interactive proof system that meets the requirements of zero knowledge proof and must possess the following four attributes:

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1. The verifier cannot obtain any information from the protocol 2. The prover cannot deceive the verifier 3. The verifier cannot deceive the prover 4. The verifier cannot simultaneously disguise him/herself as a prover in another zero knowledge proof system Zero knowledge proof is particularly suitable for use cases which require privacy-preservation. Zerocash, a privacy- preserving version of bitcoin, is a classic example of the application of zero knowledge proof. Zerocash is the first blockchain system to integrate zero knowledge proof, providing full confidentiality in peer-to-peer payments. The system does not reveal the origin, destination, or amount of the transaction, while allowing authorized queries regarding transaction details through private keys. The Olympus System provides a zero-knowledge proof security service layer at the architectural level for smart contracts and decentralized applications. This security service layer ensures privacy protection during data computation, such as for zero knowledge identification verification, transaction data security, and so on.

When users place an order in the DEX, zero-knowledge helps them protect their personal information and user identity. Traders can only get the order book information but cannot know the identity of the people placing those orders.

8.2 Homomorphic Encryption

Homomorphic encryption or related encryption techniques are important in ensuring the security of investment and trading strategies.

The topic of homomorphic encryption was first introduced by Ronald L. Rivest, Leonard Adleman, and Michael L. Dertouzos in 1978, but it was only in 2009 that Craig Gentry proved the first homomorphic algorithm. Homomorphic encryption is a form of encryption that allows computations to be carried out on ciphertext, thus generating an encrypted result which, when decrypted, matches the result of operations performed on the plaintext.

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Let E(m) be the encrypted cyphertext of m, if E(a) and E(b) are known, then anyone can obtain the cyphertext of a ⊕ b through some sort of operation denoted by E(a) ⊗ E(b), and homomorphism can be generally expressed as: E(a ⊕ b) = E(a) ⊗ E(b) where ⊕ and ⊗ represent the binary operations of plaintext and ciphertext spaces respectively. Homomorphic encryption includes operations such as addition, subtraction, multiplication, and division. Achieving both additive homomorphism and multiplicative homomorphism means being able to run all operations, a state known as algebraic homomorphism.

Current homomorphic encryption is computationally prohibitive, so we will make efforts on a few fronts. First, we will work with researchers, universities, and research institutions to conduct R&D to push the boundaries of this technology. Secondly, we will work to implement a version to be applied for high-value trades and clients as a premium service. Lastly, we will explore and implement other encryption technologies that meet the need for trading and investment activity encryption.

9. ROADMAP

Phase 0: Olympus MVP Wallet Design MVP wallet Build and test MVP wallet Launch MVP wallet

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Phase 1: Olympus MVP January 2018

Integrate 0x decentralized exchange into Olympus wallet Integrate Kyber decentralized exchange into Olympus wallet Integrate Shapeshift into Olympus wallet Build and test the Financial Products Marketplace Deploy the Financial Products Marketplace Launch 1-2 crypto-based financial derivative products

Phase 2: Olympus Financial Protocol March 2018

Define Financial Protocol standard Build and test protocol sample on ethereum network Provide Olympus Financial Protocol standard document Provide Financial Protocol standard SDK

Phase 3: Olympus Blockchain Q3-Q4 2018

Performance analysis between DPOS vs. DAG consensus algorithm Build, test, and deploy consensus algorithm Build, test, and deploy Olympus Blockchain Launch Testnet Launch Mainnet Migrate Olympus ERC20 token to Olympus Blockchain token Extend Olympus Financial Protocol to support Olympus Blockchain

Phase 4: Olympus Migration Q3-Q4 2018

Build, test, and deploy official Olympus Wallet Migrate MVP wallet to official Olympus wallet Migrate MVP Financial Products Marketplace to Olympus Financial Products Marketplace

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10. DISCLAIMER

This draft Olympus Labs White Paper is for information purposes only. Olympus Labs does not guarantee the accuracy of the conclusions reached in this paper, and the white paper is provided “as is” with no representations and warranties, express or implied, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, title or non-infringement; (ii) that the contents of this white paper are free from error or suitable for any purpose; and (iii) that such contents will not infringe third-party rights. All warranties are expressly disclaimed. Olympus Labs and its affiliates expressly disclaim all liability for and damages of any kind arising out of the use, reference to, or reliance on any information contained in this white paper, even if advised of the possibility of such damages. In no event will Olympus Labs or its affiliates be liable to any person or entity for any direct, indirect, special or consequential damages for the use of, reference to, or reliance on this white paper or any of the content contained herein.

Phase 5: Zero Knowledge Proof and Homomorphic Encryption Q4 2018-Q4 2019

Implement Zero Knowledge Proof on Olympus Blockchain Collaborate with universities and research institutions to improve the efficiency and applicability of Homomorphic Encryption

Phase 6: Olympus Ecosystem Q4 2018-Q4 2019

Build and provide developer tools, SDKs, and APIs Set up fund to invest in teams building Fintech D-Apps on Olympus Blockchain Host startup competitions and hackathons to build a developer community building applications on the Olympus Blockchain

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