DeFiner X DODO X Loopring DeFi Star Project Special Bihu Live Review

Editor's Note: The article is from Bihu Live.

Moderator: Pan Zhixiong (Chief Researcher of Lianwen): Today's live broadcast event is the first show of DeFiner. We also invited DODO and Loopring (Loopring) to talk about some new cooperation and trends of DeFi.

First of all, congratulations to DeFiner. On October 10th, he made a very important announcement. He completed the private placement on Coinlist and received a deposit of 5 million US dollars within a week.

Today we had a relatively simple chat, that is, after DeFiner invited two partners, we can talk about some specific things about the specific new actions and trends. First, please introduce yourself.

Jason: I'm Jason from DeFiner. DeFiner is a Defi lending agreement. The difference is that we have added an aggregator function to the Defi agreement, which can allocate idle assets. Our return rate is always better than Aave and Compound, which is mainly due to some things on our products.

We were established in the United States in 2018, and we have been in Defi for a long time, nearly two and a half years. So it is not easy to witness the growth of the Defi industry step by step.

I did this activity last week, and I was quite nervous before the launch. Because I don't know what the market is like. Because the market was not good last week. Later, it was actually quite a surprise, or it can be said to be quite a surprise. Because our conditions are very harsh, we need to recharge 2,000 US dollars to get 100 credits. The maximum amount is $1000. It was quite tense at the time, but it basically ended soon afterward. That's why I think Defi is just an adjustment now, but the market environment is actually quite good.

Because we want to release this Token, mainly Dex. I am very happy to chat with DODO and Loopring and Teacher Pan.

Jay: I am the COO of Loopring and an early investor in digital currency. Loopring is the first layer-2 network protocol implemented on Ethereum. We officially launched a decentralized exchange based on the second-tier network in February this year, and it can reach 3000 TPS, that is, the transaction speed can reach 3000 transactions per second on the Ethereum network.

We all know that recently due to Farming and transaction mining, Ethereum’s transaction fees are particularly expensive, and each transaction requires hundreds of transfers or cash withdrawals. But if you use the ZK rollup of the Loopring protocol, then your transaction fee can be reduced to no more than one dollar per transaction. And its transaction speed can reach 3000 transactions per second.

On Monday, the Ethereum Foundation announced that they will release version 1.5 of Ethereum before version 2.0. It is a technology combined with Rollup, which can increase the TPS of Ethernet to a maximum of 4000 transactions per second in a short period of time. And after 2.0, it can reach the highest performance of 100,000. So now that the general environment has basically been determined, Rollup technology is the only option to solve Ethereum congestion.

Daidai: I am very happy to support another old friend's upcoming coin issuance with two old friends. We DODO will do IPO as soon as possible to provide liquidity.

The first time Bihu did a live video broadcast, it was me and Fat Brother. So everyone should have an understanding of DODO. DODO is a decentralized exchange based on the next-generation algorithmic market maker model based on PMM (active market maker algorithm). Optimize capital efficiency by introducing market reference prices. Based on this, in the mainstream currency market, we support unilateral currency exchange, and the utilization rate of funds is 10 times higher than that of Uniswap. In the future, we will introduce the market-making strategies of professional market makers to the chain to provide efficient liquidity and realize effective price discovery. In terms of new asset issuance, our goal is to be the freest DEX, not only the freedom to list coins, but also the freedom to make markets. The market-making parameters of all assets on DODO are adjustable, including deposit ratio, central price, handling fee rate, curve slope and so on. Therefore, the threshold for new asset issuance can be minimized. At the same time, we are also starting mining now. The current capital pool size is 100 million US dollars, and the average daily transaction volume is 20 million US dollars, which is about this level. We completed the second round of financing at the end of September, and we will announce some better news and more cooperation with you next week.

Moderator: Can we first understand, apart from financing, what new progress has the project made? Can you tell us about some of DeFiner's progress at the project level?

Jason: Of course we are still mainly project-based. We have launched the Defi lending agreement that focuses on the aggregator model mentioned earlier, which can improve the utilization rate of funds. Recently, at the beginning of October, the BATE version was launched, and now everyone can use it in Imtoken and so on.

We should be the first Defi product mainly based on the mobile interface. Everything else is on the web. Of course, we will also have a web page. At the beginning, we will focus on mobile phones, and then we will also have our own APP, and we are doing all of them. We think the mobile terminal is still the most important. At that time, I felt that Binance Exchange had seized this opportunity on the mobile side. So we first launched the mobile terminal configuration, and then combined with the web terminal. This is the news on our products, you can try it out.

Of course, after the token is issued, liquidity mining will also be launched. You can also talk about the difference between us and other liquidity mining in the market later.

What's more, during the National Day holiday, we launched a campaign to get 100 USD for depositing 2,000 USD, and now there are about 5 million USD in the fund pool. We have launched another 250,000 token plan to share the fund pool with early participants. As for how much the 250,000 tokens are worth, we will know when DODO and Loopring open. But I think there should be many.

These are probably the plans on our side.

Moderator: I saw that Loopring 3.6 is on the testnet? Can I introduce it to you?

Jay: First of all, I would like to congratulate DODO and DeFiner for completing the financing. We are an old project, which came out in 2017. It's great to see this industry flourishing.

Our National Day is like never before. I went to the office yesterday and saw that our technical team slept in the office yesterday, and had been rushing all night the day before yesterday to catch up on products. Our version 3.6 technology and, I don’t know if we can disclose it, but according to some news, we are working on a smart wallet that can support AMM on the second-tier network. These products are expected to be launched before the end of the year.

3.6 network, the test network has just been launched. Its characteristic is that in the current second-tier network, you need to move your funds from the first-tier network to the second-tier network, and there is a cash withdrawal action on the second-tier network. To be honest, this action is a bit of a bad user experience. Everyone thinks why should I move to your second-tier network? Although your second-tier network is very fast, it is still very troublesome to add this step. But after 3.6, you don't need to do this step anymore. You can transfer to any address on the first-tier network, and it can receive your withdrawal immediately.

For example, everyone knows that every ERC20 withdrawal on a centralized exchange lost money some time ago. It may charge you a withdrawal fee of about one or two dollars, but in fact it may post 4 to the Ethereum network. , $5 or more in gas subsidies. If our Rollup technology is used, the exchange can directly mention anyone. For example, if you mention your address, you only need to pay the gas cost which may not exceed 1 RMB. I hope it will be launched at the end of the year. In this case, if there is another AMM craze next time, everyone will not have to worry about the high handling fee. You can directly move Defi products to the second-tier network.

And the second layer network can become a programmable immediately. Everyone is complaining that the Layer 2 network is not programmable and cannot be composable, but it will be supported immediately.

Moderator: Is the AMM you want to do a bit like the AMM made by DODO?

Jay: There are still differences. DODO is still very distinctive, and their algorithms are different. We are still very similar to Uniswap, the only difference is that we provide a two-layer network, which is faster than Uniswap. Now Uniswap is on the first floor. However, Loopring's DEX is to transfer funds into the smart contract of the second-layer network, which means that many users' funds are deposited in it and are not used. Because we are in the form of an order book, we hope to provide an AMM pool to revitalize users' funds.

And DODO is a PMM model, which can be unilaterally mortgaged. Unlike Uniswap, which needs to be deposited on both sides, the price is done using the oracle mechanism, and they are still very distinctive. I myself have done Farming on DODO.

Moderator: I heard that Loopring will provide a second-tier solution? Does that mean that DODO and DeFiner will consider using Loopring's second-layer solution in the future?

Daidai: Our CEO Radar is also an older smart contract developer. He has seen Loopring's solution. Before that, Radar Bear also chatted with Brother Dong.

Our internal conclusion is that we will not FOMO this thing, although we see that Uniswap, Cerver, etc. are doing Layer 2, but we will not follow up. Originally, in the form of our PMM, its gas fee is not high. We should be at the same level as Uniswap, a little higher than them, and the gas fee for each transaction is not that high.

We should wait for the forerunners like Loopring to see how the effect is, so we can directly choose a more mature route and use it directly. I am very much looking forward to the big brothers of Loopring going on the road first, and we will follow behind.

Moderator: DeFiner does lending, which is not a high-frequency business. Will he consider joining Layer 2 in the short term?

Jason: Because we are low-frequency, not communication-oriented. So let's take another look. But I think when this technology takes shape, it will be easier for us to combine it. For now, there are still many things we can do, so we will wait for a while. As far as low frequency is concerned, the current GAS is fine.

Jay: The two points are stepped on very well. I also suggest, because you are not developing in it, so wait for a while and see how the early stage people step on the pit. In fact, we have been communicating with some Dex already on Layer 2. They also still have similar problems, which have not been well resolved. I think you can observe first.

Their problem is how to move assets from the first floor to the second floor. Many users don't do it when they see this step. Daidai said that she thinks it is a side chain, the concept can be understood in this way, but it is still a bit different. Because it is on Ethereum after all, unless they do a bridge that allows two asset conversions. But Layer 2 still has its advantages. The Ethereum Foundation has also chosen. Of course, in the end, whether our group of pioneers will be the ones who ate crabs, or will die on the beach in the end, we can wait for three months or half a year to see.

The general direction of us and ZK sync is to do Rollup based on zero-knowledge proof, and MC is another direction. ZK is also different from our background relay. Layer 2 can be regarded as a smart contract, and we are currently two separate smart contracts. Rollup is currently separate, how to connect between Rollup and Rollup is also a problem. This can be solved by technology, it is a matter of time.

Moderator: Let’s talk about liquidity mining. Has DeFiner considered liquidity mining? Are there any specific actions and plans for the follow-up?

Jason: Defi has been lukewarm for a year or two, but it became popular this year because of tokens and liquidity mining. So there are so many things for everyone to have fun with. Mobility is a point of fire for everyone. Regardless of whether it is DEX or lending, any Defi product will eventually have tokens in it. Because it is completed and comes out of the protocol layer, a lot will be distributed through tokens, whether it is governance or benefits. I think token is a must.

So DeFiner will also have liquidity mining. But DeFiner's positioning is to give funds a comfortable and safe home. Our positioning is still based on decentralized banks. If the funds have high returns outside, such as 100% or 1000% high returns, he will go out to pursue high returns. But if there is no such high income, it is where our DeFiner serves.

What we pursue is not high returns, but stable, long-term and safe returns. So our liquidity mining will be slightly different. But the core purpose is to send your own tokens to your own users. But it will be done in a range with a long-term stable rate of return. For example, between 10% and 30%, if it goes up, we probably won't do it. But this interest rate will be relatively stable, unlike some other agreements, which are 100% or 1000% at the beginning, but it is difficult to continue. Instead, we are positioned as a home for idle funds. If you don't have a good investment opportunity, keep your funds with us. We also call it a savings agreement, which is the first generation of decentralized savings accounts.

Therefore, we will definitely do liquidity mining, and the target income will be positioned between 10% and 30%. I think we are relatively easy to achieve. Because we have our own aggregator or the function of capital allocation, there must be no problem with 10% of the income generated by ourselves. Plus tokens can be controlled to this degree.

This product will be launched in the near future, you can pay attention to it. The initial investment will also have a higher profit, but it is still within the range I mentioned. Of course this is our product itself. Through the combination with Dex, such as Loopring and DODO, which can be mined, the income of tokens can be further increased. You can also participate in the liquidity mining of trading AMMs. This is another source of income.

All in all, I think the effect is pretty good. I think that since the currency is available, everyone's interest has really been ignited. Going back to what I just said, the activities we did last week. The quota of 20:1 was sent out yesterday for the last wave of invitations, and it exploded in an instant, and many people complained that they did not participate. I think the community's passion for liquidity mining is still there. But it is true that those who participate in the early stage will enjoy the benefits.

I don’t know about DODO and Loopring. Do you have any special plans for liquidity mining other than what you can see in the current product?

Moderator: I remember that DODO is doing liquidity mining, and it is doing it very cautiously, right?

Daidai: Because when we designed the algorithm, its advantage is the high utilization rate of funds. So you only need to use one-tenth of the funds of Uniswap, and you can be as good as its price. So the huge amount of money is not that important to us. All you need is a pool of appropriate size. But I think it may be because there is no mine to dig now.

Our curve is that after the end of the first phase of mining, everyone withdrew. After mining for the second time, maybe not much can be mined recently, and we have surpassed the previous high point again. So it's also amazing. But there are also advantages. When the amount of funds is sufficient, you can actually apply more market-making strategies.

So we will not only rely on Chain Link in the future. We will also cooperate with Chain Link in the future. One is to optimize the quotation of the oracle machine, because obviously our algorithm needs a quotation with higher precision; the second is to cooperate with some other trading companies and market makers to integrate their institutions The market-making strategy is applied on-chain. For this strategy, a relatively large amount of liquidity provision is a prerequisite.

So now everyone is more interested in mining on DODO, and it is OK. But in fact, the rewards we provide are already very cautious. And now everyone has a thinking of being a questioner. When judging Defi, we only look at two indicators, tvl lockup volume and trading volume. But in fact, not every Defi project is only suitable for judging by these two single value standards. It's not that the amount of locked positions is at the top, and the prices of these currencies will be the highest in the future. I also hope that the entire industry's understanding of Defi can gradually improve, and at the same time discover more data metrics to measure the growth of different products.

Moderator: Loopring doesn’t seem to be doing liquidity mining, right?

Jay: Yes, we didn't design too complicated patterns in this area. Because we are a DEX with an order book. We are still relatively conservative, and may also be relatively old-fashioned projects. On our Layer 2 network is a smart contract that controls all funds in the exchange. Now there are tens of millions of dollars in the funds that are almost idle, that is, everyone is placing orders there. If these orders are not traded, they will not enjoy any value. We also hope to generate some benefits for users, especially now that AMM is so popular. So our current primary goal is to provide ama services first, so that our users of Loopring can generate more benefits. The funds lying in it can generate income, even if the funds lie on the second-tier network, the funds will not be jealous of some high-return funds on the first-tier network.

I want to ask Jason, I am also very impressed that DeFiner can complete 5 million US dollars on Coin List. Is there any requirement for joining the DeFiner project? Are there any regions that block users on Coin List, such as users in China or the United States?

Jason: Yes, neither China nor the United States. This blocked many participants, but you will find that there are still people who have overseas IPs and do it. So I was quite surprised, after all, China and the United States are basically the two largest markets. I was a little worried at first, but then I didn't expect the effect to be okay.

Jay: I had a brief chat with Jason before, and I also know that they are doing some marketing operations with a top foreign partner. It seems that the effect is still good. Domestic users can have the opportunity to participate on the 12th through DODO and Loopring.

Jason: I think a token, including mainstream Defi tokens, will eventually be listed on a centralized exchange. But since we still do Defi, how do we distribute benefits to Defi partners? I think it would be better to rank the debut on a decentralized exchange, which I think is a benefit. Of course, for decentralized exchanges, Loopring’s Layer 2 amm, and DODO’s innovative AMM, there is a lot of room for technological advancement. We still hope that the traffic and depth can be improved, and the transaction cost can be reduced. In the end, for users, in fact, Defi-like exchanges are better. This is also a big reason why we chose to launch on Dex instead of decentralized exchanges at the beginning.

I think the Defi game has just started, let's play together.

The Bihu community is pretty good. Every time you watch the video, not only watching the video, it is always very rewarding for yourself. One is the return on knowledge, which has popularized many things that the next generation of Defi is doing today; the second is estimated to have a great return on money. One, we will give some red envelopes, and more importantly, we can capture some opportunities.

Our private placement ended on the 10th. In fact, it is mainly for users in the community. In fact, from the perspective of fundraising, there is no need for us to go to Coin List. Because it's actually quite troublesome. But we also finished the private placement. On the 12th, we will issue coins one after another. The first batch of coins must be sent to the decentralized exchange.

At first we thought about Uniswap, DODO, and Loopring. But many people suggest that there are so many robots in decentralized exchanges. If the depth is not enough, the robots will soon be able to masturbate each other between the two pools. We are also considering this issue, that is, we should not build an exchange first. Loopring is different because it is an order book model after all. What is more worrying is that between DODO and Uniswap, there are a lot of robots on Defi that are not deep enough. We are also looking at whether we should only put DODO and Loopring first, and Uniswap and centralized exchanges will not be too long away. This matter is still under consideration.

Domestic partners are definitely very beneficial. Especially those who are already using DODO and Loopring can pay attention to us. The first batch of tokens will definitely be launched on DODO and Loopring.

Moderator: If you choose DODO and Loopring, it may be the first project to be launched on the two DEXs.

Jay: It is actually difficult, because of the existence of these robots, they do not involve the transfer of money, they all use a wallet, so the robot will be very fast on both sides. We are also discussing in detail how to face this problem with the technical experts.

But I think this direction is no problem. Everyone can pay attention to Loopring and DODO. The specific time on the 12th has not been determined yet, and it is estimated that it will be during the day or afternoon on the 12th.

Daidai: The trading pair of FIN to USDT will be held at the meeting.

Moderator: As a DODO that uses oracles, it also supports IDO. How do IDO and oracles separate the two types of products?

Daidai: We have two markets. One is DODO ZOO, and the other is DODO Wildlife Park. The so-called use of oracles is just a quotation strategy. Because DODO ZOO supports some large-selling, mainstream trading currency pairs. For such trading pairs, the external trading market already has good liquidity on Binance and Huobi, so Dex is relatively just a small pond. At this time, we will need to use external guidance prices. So the easiest way to quote is to use the public oracle service. However, with the public oracle service, if you meet a more powerful counterparty, it can come to arbitrage or rush to run away, which will cause LP losses.

So we now think that this kind of completely clear quotation strategy cannot be used. Therefore, it is necessary to cooperate with Chain Link or cooperate with some other institutional market makers to introduce professional and higher-precision quotations. It's not easy to be slapped.

The DODO Safari market is for the liquidity of new assets. DODO is one of the places with the best liquidity for new assets. For new assets, there is no liquidity yet, which means that no one has the ability to price new assets, and even the project party does not know how to price them. Market making is a very professional thing. The core of market making is quotation, which gives opinions on the price of assets. And publish it to the order book or chain.

For the situation that no one has the ability to price new assets, our IDO is actually to solve this problem, which is the problem of market making and liquidity provision of new assets. The parameters of the oracle here are an initial price set by the project party, but as everyone trades freely, the price will increase along the curve. The main point of this version of IDO is that project parties can provide liquidity unilaterally, and we do not allow project parties to withdraw liquidity.

At the same time, the technical team is developing a new version of the IDO algorithm. All the parameters of that version of the algorithm are open, and the project side can self-list the currency. Moreover, there will be great flexibility in market making, and retail investors can also participate. Retail investors cannot participate in the market making of IDO now.

Moderator: IDO trading strategy is the same for zoos and safari parks? Or is it completely different?

Daidai: It is the same for traders, that is, free trading. Market making and trading are two different things. The core of market making is quotation, and trading is the free buying and selling of any person.

Moderator: Will Fin follow up with centralized trading? Do you have any plans?

Jason: There will definitely be a centralized exchange. Because once this currency flows out, you have no way to control it. The initial Defi projects were all launched spontaneously on centralized exchanges. In fact, I think it is a good thing for the project party. A large part of the traffic in the currency circle is still in centralized exchanges. Why is Defi growing so fast? It is not the new funds joining, but the original funds flowing into Defi from Cefi.

I think for now, centralization still has its own great advantages. After all, decentralization is based on smart contracts, and the flexibility of development is not that high. Including most of the current traffic, do the market. Decentralized exchanges are basically technology-based, and I think the market will be weaker. Centralized exchanges are actually quite strong in the market.

So we will also go to the centralized exchange, but after the decentralized exchange. You can also pay attention to some information, and news should come out soon.

Moderator: How are the funds allocated to DODO and Loopring arranged?

Jason: We will discuss this with the two of you. This is really a first. To discover value, we are still discussing how many liquidity pools are needed. But try to provide sufficient trading depth.

Moderator: How much liquidity will you use to do this?

According to the current market situation, tens of thousands of dollars is the least. This round of private placement ended at $0.6 per Fin. Therefore, the liquidity is at least tens of thousands of dollars, and even 100,000 is possible. This strategy and that strategy will be discussed before going to the firm. But your information about the market is actually the most inaccurate, so it may be staged. For example, arrange some funds at the beginning, tens of thousands of funds or tokens, if you think the market is particularly good, then you will definitely arrange more funds. This is a groping state. In the early stage, I was really uncertain, because I didn't know how the market would go.

In the initial stage, you should take part of the funds, tens of thousands of dollars to test the water, if not enough, you will increase the provision of liquidity.

Moderator: On October 12th, DeFiner’s Fin tokens will be unlocked, right?

Jason: We first sent to Dex, this is the first wave. After the Dex is distributed, we will distribute it to some early investors. There must be a market first, and then there are coins in the hands of others.

Daidai: Would you like to introduce your economic model?

Jason: Our tokens are divided into three most important directions: the first direction is governance. Governance tokens are basically what Defi projects will have. For example, the project has some parameters or controls which assets are not listed, and participates in community governance;

The second is liquidity mining, which is also available in most DeFi. Because liquidity mining can absorb some selling orders that you want to sell well, and then distribute them to users. And it can also balance the deficit, for us to do lending;

The third is something that no one does. Another function of our token is profit sharing. Because we are borrowing, the profit of Dex is the handling fee, and the loan is the interest difference. There are 100 trillion loans in the traditional financial market, resulting in an interest rate difference of about 3%, which is 3 trillion US dollars. For Defi loans, there will basically be an interest rate difference of 1%-2%, which is our income. For example, in the case of Compound, keep this part of the proceeds for yourself. We will think about returning this part of the proceeds to all Fin holders through the secondary market. That is to say, Fin has achieved profitability. This is something that other Defi classes have not launched yet.

We feel that if it is for the ultimate decentralization, there must be a share of profits. So we still return it to all Fin token holders through the profit sharing mechanism. This will have stronger support for the token. For example, our capital pool has reached DODO’s current 100 million US dollars, and our basic profit income should be about 1.5 million US dollars, if it is calculated at 1.5%. If we take all 1.5 million US dollars to the secondary market to repurchase Fin’s token. In fact, our private placement only made $1 million, so you can imagine this scenario. So for us, the size of the capital pool is still very important. It determines the revenue generated by our service. It also determines the income we can control and how many tokens we can buy back from the market. This is where we differ from other economic models.

Moderator: I remember that the interest rate difference in Compound is used to establish an insurance fund?

Jason: Yes, we will also have an insurance fund. Because it is equivalent to belonging to the team itself, and then feel that if there is a problem, the team is willing to take out this part of the funds and provide insurance. So will we.

Moderator: There is another question, will profit sharing be involved in the definition of securities?

Jason: Right now. Because we have legal counsel before we issue coins. The only thing he said is that you can't let investors sit or lie down and make money. You still have to design some strategies or mechanisms to let them participate in some behaviors, and then get rewards. So it can be designed that investors need to provide liquidity, do LP, or make a little contribution to the community. As long as the behavior occurs, it is okay to get a share of the profit. Of course, how much you give him is another matter. But in traditional securities, you can get dividends without doing anything. And it is a fixed, legal dividend. This, this, yes, it is true that what you said is right, it is necessary, and one thing to pay attention to is right, but we all have legal advisers, and then we take care of this. The teacher didn’t say yes, that is, you just lie down. Yes, this is something to be aware of. But we will have legal counsel to do it.