Principles

Premia: Public Redux of Economic Market & Investment Access

One of the first principles of the Premia v3 protocol and a core part of the ecosystem's culture is to enable permissionless use by anyone worldwide. This design decision was inspired by Ethereum's core ideals and our commitment to open access as a requirement for a future in which anyone can access top financial services, no matter their life circumstances. - Equity of opportunity

Conscious, Open, & Contestable Smart Markets

Permissionless Smart Contract Design

Permissionless design in a protocol refers to its services being unrestricted and open in nature. Unlike traditional systems with barriers or limitations, a permissionless design ensures that anyone can freely access and utilize the services regardless of location, financial status, age, or other factors.

In a decentralized financial system, activities such as selling financial products, hedging risk with options, passive yield through algorithmic strategies, swapping assets, providing liquidity, or creating new markets are available to all users without approval or authorization. No gatekeeper or central authority can deny access based on arbitrary criteria.

Permissionless is core to the Premian ethos; however, certain regulations restrict Premia ecosystem partners from providing services based on certain jurisdictions or sanctions. Thus, to remain compliant, some jurisdictions or domiciles may see limited services offered via the Premia Blue app, which an ecosystem partner operates.

This significantly differs from traditional financial services, where access is often tightly controlled. For example, traditional banks and investment platforms might restrict services based on a person's geography, requiring them to reside in a particular country or region. Wealth status might also be a barrier, with certain investment opportunities only available to those who meet specific income or net worth criteria. Age restrictions are also common, particularly for products and services considered higher in risk or complexity deemed only available for "sophisticated actors" or "accredited investors".

The permissionless design embodies the ethos of decentralization, promoting inclusivity and democratizing access to financial tools and opportunities. It breaks down barriers historically excluding large population segments from the global financial system, allowing for a more equitable distribution of resources and opportunities.

However, it's worth noting that this openness also comes with challenges and risks. The lack of restrictions means a higher potential for fraudulent or malicious activities. It also places a greater responsibility on individual users to understand and manage the risks associated with their actions, as no centralized entity oversees or regulates the activities.

In essence, permissionless design is both a revolutionary concept and a double-edged sword. It opens doors for many who have been left out of the traditional financial system but also requires a new level of awareness and responsibility from all participants. It represents a fundamental shift in how we think about access to financial services, moving from a system of gatekeeping and control to one of openness and individual empowerment.