Editor's note: This article is from Bihu Live.

Editor's note: This article is from Bihu Live.

On August 12, Zhang Chizhang, head of the dForce community, and Ricky, co-founder of MYKEY, were guests in the Bihu live broadcast room, sharing the most suitable products and operation precautions for beginners in the DeFi field. As the guest at the end of the live broadcast said, reviewing this live broadcast may be a good way to learn and understand Defi. PANews participated in this live sharing as a media observation group. The following is the sharing record.

Mr. Zhang: Hello everyone, I usually use this name when I participate in AMA. I graduated from the Economics Department of National Taiwan University in 2016. In 2017, I traveled around the world with a backpack on my back for nine months. Then I decided to go to Shanghai and entered the blockchain industry.

I used to do centralized exchanges and decentralized wallets, and used the account "Mr. Zhang" to bring about domestic staking. Now I am in the team (dForce) of the teacher Mindao (Yang Mindao). Because Mr. Mindao's imagination of finance and blockchain is amazing. I am now doing dForce startups.

Moderator: Question 1. Many people around you will be attracted by the high returns of DeFi. DeFi has become very popular recently. However, many people did not participate for various reasons such as thresholds. What problems did the guests think they encountered and how to solve them?

Mr. Zhang:

From the Defi craze brought by Compound, to YFI, YFII, Balance, and then to YAM that started yesterday. The super high returns of these projects have attracted a lot of people to be interested in Defi.

I often answer questions for friends in the community, and many people will ask how to participate. Even our company's small partners are attracted, but don't know how to participate. He is obviously in the Defi team, but none of his funds are involved in Defi mining.

I think that for most people, first of all, it may be because they don’t know English, and most Defi projects have a learning threshold, and they need to read a lot of English learning materials; secondly, Defi projects are becoming more and more complicated and diverse, and they need to know a lot of things. If a step gets stuck in the middle, or the GAS is too high, you will feel frustrated and unable to participate.

I personally recommend everyone to participate in the simplest Defi products first, and I will introduce them later. At the same time, join the discussion community of Defi products. First find the people who know the most or like-minded people to participate together, so that you have a better chance of finding a more profitable mining project in the market. Defi mining can also be completed with the assistance of friends in the community.

Fat Brother: You can install a Mykey, open Mykey’s wealth management center, and use Defi freely under the condition that Mykey subsidizes the network fee. Although it is actually quite panic, because there may be safety issues, sometimes the friction threshold is quite high. But I think this is very early in the industry. The throughput of the entire chain is very weak. However, with the rise of various Defi projects this year, their interconnectivity has proved that the Ethereum community is very powerful and fully interconnected.

We are looking forward to a better blockchain platform in the future, and Ethereum will become faster. At that time we should have a better Defi user experience. Mykey will also help you to repackage complex, obscure, and code-like products. It is made into a product that novice users will love and use very conveniently. This is also our original intention of making Mykey products.

Moderator: Compared with other Defi products, what is the difference between the new product launched by dForce? Why is it the most suitable project for Xiaobai to operate? Can you teach me how to do it?

Mr. Zhang: I hope that after watching the live broadcast, you can systematically know how to use Defi mining projects. After having a system through the process, you will be more confident in operating more complex products.

In dForce, if you have not participated in Defi projects before, I would suggest that you participate in stable currency deposits first. Stable currency deposits are the most direct, just like we go to the bank to deposit RMB and US dollars and get interest. Stablecoin deposits are a similar concept. Just put USDT or Binance’s BUSD into the loan market, and then get the interest. This is the simplest Defi product, you will not have too much risk, and you will not have the risk of currency price fluctuations. If such Defi products happen to have incentive mining, then participate in mining by the way. Such income is as high as 50% annualized in dForce, USDT. Compared with traditional financial products, it is a very high return.

Give you a quick demonstration of the product. First open the Mykey wallet and click the apply button below

Then find dForce’s stablecoin interest-earning through the recently commonly used or popular recommendations or financial management columns.

It can be seen that there are three types of stablecoin interest-earning products of dForce: USDT, USDC and DAI.

For novice users, if you happen to have this stablecoin, click Deposit, enter the amount, such as 1USDT, and then send the transaction, you can see how much USDT has been deposited and how much interest has been generated below.

In addition to earning interest on deposits, dForce also added Defi mining incentives. Once the currency is deposited into the stable currency to generate interest, another token dUSDT will be found on the asset page. After getting dUSDT, you can search for “dForce mining” in Mykey wallet.

Here I can put the equity token dUSDT that I just deposited into the USDT into the champagne tower pool, and then enter the amount to get the reward of DF.

In the DF mining tool, if you pull to the bottom, you can see the real-time annualized rate of return of several stable coins. The Singularity Pool and the Gold Rush Pool with relatively high returns will be discussed later.

Just to add, why use such a product. Many people's exposure to mining may start from Compound. What Compound does is to simply deposit it in to mine. However, in the case of the extremely high gas fee of Ethereum, if you have experienced it, you will know that it is a particularly expensive operation to withdraw the income of Compound every day. What dForce solves is that you deposit USDT and DAI in the pool, and it will automatically withdraw Comp for you every day, and then automatically sell COMP for you. If you deposit USDT, USDT will be given to you, which will be a very simple operation for users.

dForce products can be deposited and withdrawn at any time, and the interest rate will be calculated every 15 seconds, and can be withdrawn at any time. The rate of return is shown in MYKEY, USDT is more than 2.2%, USDC is about 7%, and DAI is 11%. If the mining income is added, the annual return is between 40-60%. Now liquidity mining is actually the project side subsidizing users, and users assist the project side in long-term growth by providing liquidity.

Moderator: Question 2, MYKEY is the first wallet that has access to Compound mining and has been optimized for users. For the wealth management needs of wallet users, MYKEY also has a corresponding wealth management section. Please share why this section is suitable for novice users, and what are the user-friendly features?

Fat Brother: The financial management that domestic users recognize is more financial management on WeChat and Yu’e Bao on Alipay. These have been deeply rooted in the hearts of the people. Everyone's concept of financial management is that it can be transferred in and out very conveniently, the rate of return is clear at a glance, as well as how much you earned yesterday and how much you have earned accumulatively. These are what users need. Foreign Defi products are all in English, users need professional tools to use them, and the user experience is not suitable for domestic users.

We have done secondary development on the top Defi products. It is also currently investigating dForce's new interest-bearing contract. It will also support dForce's financial management in the near future. Because it adds another layer of packaging to novice users. Users don't need to pay attention to the income of various mining, just deposit the coins.

For Compound, MYKEY does another thing. Because depositing on Compound, you can mine the governance token COMP. MYKEY allows users to claim COMP tokens in the simplest way. Officially, it is necessary to call the Claim method in the contract. MYKEY uses KLAM of a specific currency, which saves users about one-fourth to one-fifth of the gas.

MYKEY also has some fun stuff. For example, if you mine more than 0.2 COMP, you can extract it in MYKEY for free. This can help users to participate more.

In MYKEY financial management, there will be Defi and Cefi products, and users can easily enter the income details. Show your total asset value in the income statement. Click into each currency, and you can see the interest rate per second jumping there. Such an experience is very suitable for Chinese users. We also hope that we can support more and better products, so that everyone can experience the convenience and openness that decentralized finance brings to everyone.

Mr. Zhang: I think listening to Defi live broadcasts, I have made a lot of money by catching hot spots these days. Whether mining or buying Defi tokens.

Moderator: How do you participate in the advanced mining with more than 100% income on dForce?

Mr. Zhang: In addition to the annualized income of stablecoin deposit mining, which is between 40-60%, we also have several pools. Including the gold rush pool, putting gold and our stable currency USDX can generate 100% annual income; the other pool is the Singularity Pool, which has the highest income among all. To obtain the benefits of the Singularity Pool, you must first prepare DF, which is the platform currency of dForce, paired with the stable currency USDX issued by us, and the two together provide liquidity on Uniswap, and then you can start mining.

Why do we do this? Here I want to popularize the concept of liquidity mining for everyone. Many people think that liquidity mining is to make money, but they don't think about the meaning behind it. Starting from Compound, liquidity incentives are provided for depositors and borrowers, because the platform believes that incentives for depositors and borrowers can expand the consensus of the Compound lending agreement; while Curve provides incentives for those who provide liquidity. As more people provide liquidity, Curve's trading depth will be better.

While earning liquidity mining, everyone is actually contributing liquidity. Whether it is deposits or transactions, the platform can be further expanded. In Singularity Pool, we first hope to increase the transaction depth of DF through liquidity contribution, and also increase the liquidity of our own stable currency. USDX is a relatively special stable currency. It is a compliant stable currency. One USDX is equal to 80% USDC + 10% TUSD + 10% PAX. These assets will enter the lending market again in the future, which will have a leverage effect. Every time we encourage one USDX, we will add one dollar of deposits to our interest-bearing market. dForce will focus on stimulating the third pool, Singularity Pool.

It is recommended that everyone participate in stable currency deposits first. Because of currency speculation, everyone should have USDC or USDT in hand, and participate in the Defi deposit of stable currency first. Then take the ownership certificate of the deposit for pledge mining. Simply participate in your first Defi mining project, feel that the income is not enough or want to participate in such as Singularity Pool, then join the community, and operate step by step through such as tutorials. But first of all, you must participate in the first one to understand how the whole Defi works and what the benefits are.

On Bihu, you can search: dForce mining, there is a tutorial written by Lin Ming.

Moderator: There are too many types of Defi, and it is dazzling. Please share how you judge that mining a certain currency is profitable or has relatively high returns?

Mr. Zhang: Let me give you the example of YAM. Friends who pay attention to the blockchain today should be able to see the circle of friends swiping. The title is how to mine 20,000 YAM Defi mining? After reading Xindong, you may feel a little frustrated when you browse the English website.

So back to what I just said, if I don’t have the ability to study alone, I will find the person who knows best and ask, or join the community discussing Defi. Now that YAM has been launched, there must be someone in the community posting the latest rate of return. When I saw it this morning, the rate of return for putting in ETH was 1000% annualized. But I saw that the YAM project was originally unaudited. Many people may be a little scared when they see that it has not been audited. Because if you earn an annualized rate of return of 1000% but lose the principal, it is not worth the loss.

So I will make a judgment myself, and I will use 10% of my personal assets to do some speculative things. Then assign to each project. With an unaudited project like this, I presume all my money will be gone. Because if there is a loophole and the money could all be gone, I would assume the risk is infinite. Then go to see what I need to prepare to participate in the project and how much gas I need to pay. Generally, I will calculate a simple number. If I can recover the spent GAS fee within three days, the included GAS, the outgoing GAS and the rewarded GAS. If I can get my money back within three days, then I will participate.

Because the GAS fee can be recovered within three days, the rest is earned. Even if the rate of return drops further, it is still profitable. Today I participated in this YAM a little bit.

Now for many Defi products, enthusiastic members of the community will provide a profit calculation table, and you can calculate how much profit you can get by how much USDT or how much ETH you output and invest. So finding the right tools and the right people first helps you get involved in projects like this.

fat brother:

I have heard the analogy of Cao Yin. The messy Defi project that just came out is like a wild cat. It is very good when it comes up, and you really want to touch it. According to his approach, he will definitely give it a go when he comes up, and then see how the development will turn out.

Mr. Zhang is quite right. You need to be very aware of the risks you face. Whether the product has been audited, who made it, can understand better. If you don't understand, try to participate as little as possible.

When we choose Defi products, we generally choose products with a longer duration and larger assets under management. For example, YAM has met the condition of large assets, but it only lasts for one day. So I will try this product in moderation, because the annualized rate of return is too high. But because today's gas fee is too high. Because MYKEY is a free transfer, we have subsidized the gas fees of many users, and also subsidized several sums of more than one hundred dollars. But MYKEY's atmosphere, make up for it.

Everyone should be optimistic about the risk-benefit ratio, and it would be nice if they could clearly know what they are playing. If you want to be stable, I think products that last for a long time, and the income is not so high, but not so low are more worthy of everyone's consideration.

In addition, if you choose Defi products, you can take a look to see if the other party has passed the audit of the organization. The ability and reputation of the organization are also critical. For example, dForce has invited the most authoritative institutions in the audit industry before, and MYKEY is also planning to invite them to conduct audits, and will announce this matter in the near future.

At the current stage when the network fee is very expensive, it is better to operate less and be safe and stable.

Moderator: For any investment, it is still a prerequisite to do a good job of risk control before investing. Including your own investment philosophy to be thought through.

Mining still takes a lot of energy. If I only hold stable coins or BTC, ETH, how can I use the best exchange rate and the cheapest GAS to exchange for the coins needed for mining?

secondary title

Interactive Q&A

Interactive Q&A

1. When will Binance launch the key?

I said it doesn't count. We have a unified process, the project party applies, and we have a dedicated team to do the review. After passing the review, just pay attention to the announcement information.

2. Are the current Defi projects overheated?

Mr. Zhang: Personally, I think it is really hot. But just like I can't predict whether Bitcoin will rise or not. Personally, there are three criteria for judging whether Defi has reached a turning point:

The first is to look at the current rate of return for Defi project mining. Recently, the rate of return of mining has dropped from a high annualized rate, but a new rate of return for Defi mining will be launched. As long as the funds in the world are unimpeded and can flow freely, the rate of return should approach the rate of return of traditional world financial management. If you find that the rate of return of DeFi is getting closer to the rate of return of traditional financial management, it is a bad indicator;

The second indicator is to look at the attitude of the exchange. Because the exchange is the core of the entire industry. What currency is listed on the exchange means that the sector is hot. Once the exchange no longer grabs Defi project tokens, it is likely to mean that Defi is not so hot;

The third is to see if the star Defi project develops and issues coins and starts liquidity mining. Every star project is an object chased by the market. Its issuance of coins will drive the market to pay attention to it, to mine and trade. It will revitalize the atmosphere of the entire Defi.

It doesn't look like a tipping point has been reached yet.

3. Predict which sector can catch the heat of Defi?

Fat Brother: It depends on what sector of tokens the exchange is listing recently. NFT (non-homogeneous tokens) is very hot, and I think it may take advantage of the popularity of Defi. Recently, MYKEY has also added the function of medals. Four medals have been issued. After that, we will jointly issue some medals with the project party. For example, if you participate in the Singularity Pool, you can issue a special Singularity Medal. After participating in the champagne pool, you can issue champagne medals. Let everyone have a sense of honor.

MYKEY will also provide you with some benefits in some medal activities. NFT may be a relatively big hot spot in the future. Because people have a natural desire to collect, and collecting in the field of digital assets can show some interesting things. Like collecting art, these could be the next thing, but I'm not sure.

Another hotspot may also be related to Defi. We are now focusing on open finance, using passwords on the blockchain, and knowing the risks you face and the operating logic of participating projects in the form of code. For the first time in human history, we can control the assets or behaviors in our hands.

But the entire blockchain is still transparent and open. Not much privacy for all. If Mr. Zhang knows Fat Brother’s address, everyone has just seen how much money I have in my wallet. You can easily track me and know what coins I bought recently, whether I participated in dForce or Compound, and whether BNB has been sold. . These are actually the privacy of people in the digital world. I think privacy projects will become the next hot spot for blockchain development.

When Defi is combined with privacy, a real openness that can protect privacy is a more reasonable open finance.

4. Does DF have its own main network? Ethereum's recent transaction fees are a bit high

The dForce project is currently built on Ethereum. Everyone knows that the recent transaction fee of Ethereum has hit a sky-high price, and I feel a little distressed when I use it. We are still considering whether DF will have its own main network in the future. But the next layout will consider that the smart contracts currently deployed on Ethereum may also be deployed on other public chains. For example, well-known main chains such as COMCOS, Nervos, and Polkadot. Assist them in the development of the Defi ecosystem and link the liquidity of these public chains together.

5. What role does DF token play in the dForce ecosystem?

DF token is the right to use token plus ownership token in the dForce ecosystem. Because dForce itself is an agreement in three directions: asset agreement, lending agreement and transaction agreement. Each type of agreement has its own product line branch. Each product line will be linked to DF tokens.

We are still mainly expanding our own ecology. After the ecology grows bigger, whether it is USDX’s currency sales fee, the burning of DF tokens in lending, or the transaction fee to burn DF tokens, it will support the overall value of DF. See our white paper for details.

6. Which scenario will MYKEY integrate zk SNARK be applied first?

zk-SNARK is one of the most promising technologies for our team. It is a layer 2 network of Ethereum based on zk-rollup. Everyone knows that Ethereum is very congested right now. Throughput has reached an upper limit, and there is no good solution in the short term.

I think Ethereum is getting more and more congested, and it is very likely that it will be even more congested than it is now. Under the circumstances that Ethereum 2.0 cannot be launched soon, and it may take three to five years to fully upgrade. The community proposed the technology of zk-rollup. This technology can use the consensus of the first layer of Ethereum, the private key of the first layer, and the operation of the second layer. The biggest difference between zk-rollup and other Layer 2 networks is that. You still have a layer of security. This is a huge change and improvement.

We will continue to explore and promote the application of this technology in the MYKEY wallet. At present, the zk-SNARK plan has been placed in our development schedule. After completion, the transfer between MYKEY users, MYKEY users and other scenarios that support zk-SNARK, for example, maybe Binance will also support zk-SNARK Token recharge. In such a scenario, users can quickly confirm and transfer money at a low price, such as one-thousandth of the current handling fee

In addition, in some scenarios generated in MYKEY, such as Cefi financial management, network fee recharge, and red envelopes, these functions can use zk-SNARK to help everyone reduce the troubles caused by the high threshold of Ethereum.

7. It costs dozens of dollars to create a MYKEY ETH account. Why is the MYKEY wallet so rich? What strategy will MYKEY adopt if the GAS on Ethereum cannot be reduced?

The development of the blockchain is that the application continues to promote the development of the infrastructure. The explosion of Defi applications this year will promote greater development at the bottom layer. Now there are many technical solutions that can solve the problems of throughput and high decentralization, high consensus and low cost.

Ethereum uses the Sharking plus 2.0 solution to solve it, but it really cannot be lowered. MYKEY will also change its strategy, such as the subsidy plan. The current subsidy is treated indiscriminately. It is issued to users in the form of consumption coupons every month, and users can only use slow transactions. Sometimes users have to wait for a day, which also brings a bad user experience to users.

In September, we will launch a new version of user subsidies. It will become more flexible, as long as it is divided into discount coupons, discount coupons and some targeted coupons. It can be obtained by everyone in various scenarios. For example, if a user often buys dForce for financial management, he will be rewarded with free dForce coupons. If the user uses Compound, he will be given Compound coupons. It is hoped that through a more reasonable subsidy method, the cost and budget of MYKEY can be made more reasonable. Be able to stand out in the competition of smart contract wallets.

Frankly speaking, there is no wallet in the world like ours. The whole world can realize our subsidy policy, and it has not been detailed to each transaction. We hope to make the entire blockchain more and more useful. It is our original intention and our mission to make the blockchain truly oriented towards novice users and to achieve large-scale implementation.

8. Will dForce launch any products worth looking forward to?

The three major directions of dForce, the troika are the asset agreement, the loan agreement and the transaction agreement. All our products will revolve around this troika. We believe that making a protocol matrix will have a longer-term moat than a single protocol. The next thing that will be launched is an aggregation transaction agreement, which will also be related to our asset agreement and mortgage agreement.

dForce will favor low-level products. It is not the same as the application layer in the market. We believe that a vertically integrated agreement will have more long-term advantages. You can see that hot spots are one after another, and capital flows are one after another. We think Defi is like running a marathon. No matter how fast you run today, if you don't build a long-term and stable moat, you may be the one swimming in the beach tomorrow.

9. Will KEY be its own exchange, will it develop other uses, have you ever thought about combining it with the real economy?

KEY will not be its own exchange. The original intention of MYKEY is to make the blockchain more usable, and let the blockchain link various user needs

applications and scenarios. Just like what we do today, we will integrate the depth of Binance and the depth of Uniswal. We don't care whether the application is centralized or decentralized. We can connect and access the useful digital currency and blockchain scenarios that can solve user problems. What we are best at is to provide an easy-to-use account, a set of protocols and mechanisms that can ensure that user accounts will not be lost, and can smooth out the technical threshold and burrs of the blockchain in front of MYKEY.

For specific business, MYKEY will not do too much.

The direction of future efforts is to link everything.

Another mission of MYKEY is to help the token KEY expand more and more usage scenarios, so that it is not only a token of Bihu, but also has more uses in MYKEY. Now everyone can use KEY to buy network fees, with a 20% discount. In the future, we will also find ways to allow KEY to pay for more things.

The combination of KEY and the real economy has never been thought about. If I start thinking about it, I'll share it with you.

10. Currently cross-chain is very popular, will dForce consider participating?

On the one hand, everyone may care about cross-chain, on the other hand, Ethereum is too congested. We had an in-depth chat with Conflux about how to deploy the contracts of dForce’s current lending protocol on the Conflux chain, perhaps the smart chain launched by Binance.

Of course, the condition to consider is the need to be compatible with EVM, which will make it easier for developers to migrate. Also consider what support the chain will give us. Most DeFi exists in Ethereum, and because Ethereum has a very strong asset network effect, most assets are issued on Ethereum. These assets are the soil for Defi developers. Only when it is built on rich soil can the products made be used by others. If it is found that there are no stablecoin assets on the chain and no assets as collateral in the produced product, then there will be no lending behavior, and there will not be too many transactions, and the produced product will be useless.

To put it simply, we need to choose a chain that is friendly to developers and can give us liquidity support. If we can do it, cross-chain makes sense.

Don’t worry too much about the old leeks, the prosperity of Defi will eventually be fed back to Ethereum. My personal main currency is also on ETH.

11. Will MYKEY launch an official mining tutorial for your reference?

Won't. Because our community partners have provided a large number of mining tutorials for everyone. If you are interested in that Defi project, you can go to Bihu to search for mining tutorials. Most likely they can be found. If you can’t find it, you can also join Defi’s WeChat group and ask big names and professional users in it. They are happy to solve problems for you. You can also join the dForce group. The dForce group is one of the high-quality Defi groups in China in my opinion, and I have also received the preaching and teaching of Teacher Mindao in it.

12. For those who do not understand Defi at all, how should they get started? What learning platforms are there?