Recapitulation of VyFinance PROJECT AMA event held at AMA LOVERS CLUB.
Date: Friday, 21st April, 2023
Time: 12:00 Noon UTC
The VyFinance PROJECT team was represented by @StevenHenryWard_Wont_DM_First who judiciously shared with us detailed knowledge and information about VyFinance PROJECT.
1st Segment: INTRODUCTION
✨✨QUESTION1🩸: Can you please introduce yourself and your background, also introduce the team working on VyFinance?
👉ANS: We are based out of Australia. My background is as a bonds trader and broker. I entered the world of crypto in 2016 and never looked back since. My journey to VyFinance really began with using a lot of defi, and seeing a lot of issues in the current design of DExs'. So I decided to build our own hahaha
The team is composed of 9 full-time, of those 5 fulltime engineers
Our lead Haskel engineer is a PhD from the university of Cordoba.
✨✨QUESTION2🩸: Can you introduce VyFinance project, what critical problems does it solve that existing solutions are not solving and what's the competitive advantage?
👉ANS: We are a fairly comprehensive defi ecosystem, with the launch of our DEx and BAR coming in early May.
We are trying to deal with two big problems in DeFi:
1) The deflationary nature of DeFi tokens
2) The difficulty for newcommers to engage with DeFi protocols
With respect to number 1
We are the first project on Cardano to introduce a distributive mechanism (The BAR) into our DEx. A portion of all fees generated on the DEx will be used to buy back VYFI token from the market, and distribute it to those staked at our BAR
With respect to number 2
We are introducing the first non-custodial LP farming for any DEx in crypto! So when users supply liquidity, they only have to hold the LP tokens in their wallets and they will automatically be farming
This also means that a user never needs to perform more than 1 transaction to start their farm!
✨✨ Great, the problem of newcomers engaging with Defi protocol is a great problem that needs a solution!
The non-custodial farming also gives some amazing tools for advanced users!
Now as users have the Liquidity Pool tokens (LPs) in their wallets, they can use those for other things - such as provide collateral or build liquidity pools out of the LPs themselves! (We just released an article on this today)
✨✨QUESTION3🩸: Can you briefly tell us about the VyFinance earning mechanism?
👉ANS: Certainly. Our BAR allows users to stake their $VYFI tokens, and share in the earnings from across the ecosystem.
0.1% of every trade on the DEx
10% of all of our lottery
6% from every nft sale
Is all converted to VYFI and distributed amongst those staked
When a user stakes their VYFI at the BAR, they are minted a token xVYFI. This represents what percentage of the BAR they own. Users can use this xVYFI token to supply liquidity and farm as they would VYFI - while its accruing value in the background.
✨✨ Where can user read about the staking?
An article describing our BAR can be found here:
✨✨QUESTION4🩸: Can you briefly describe your PARTNERSHIPS and BACKERS so far?
👉ANS: We are partnered with many large project in the Cardano space. World Mobile Token, Minswap, AADA, NEWM, Charli3, Muesliswap, Geniusyield, just to name a few! We were the 4th Cardano Nativr Token ever minted on the Cardano Blockchain, so we have been in the field for a while!
We have never recieved VC funds. He have followed the Cardano philosophy on this and have backed ourselves and worked with the wider community to build and grow
We are currently the 8th token on Cardano for total marketcap - so to a certain degree, we are backed by the entire community! You can see our token, and any cardano tokens stats here:
✨✨QUESTION5🩸: Finally on this segment, let's talk about the token,
Can you give an overview of the Tokenomics and Utility of VyFinance Token(s)?
👉ANS: Absolutley! This is my favourite part. We have a total supply of 450million tokens, but what makes our system unique is that we have designed our emissions to farm this out over 21 years! Our daily farming emissions decreases over this time, and never actually reaches zero (similar to how bitcoin never reaches 0 for mining - just gets closer too it)
Our circulating supply is currently 14mil, and we will reach a token supply of 60million over the next two two years. Compared to other dex tokens, we are farming at less that 15% of pancake, and less than 10% of the largest dex on Cardano - MINswap, in terms of total tokens.
When we mix that with our inbuilt buyback - we are confidant we can sustain strong price action
VYFI allows for access to our BAR, which allows in the share of the buyback. It can also be used to farm or provide collateral on 5 platforms on the Cardano ecosystem (Minswap, wingriders, muesliswap, AADA, and Blueshift).
VyFi allows access to our governance, our lottery, token staking for other new projects on Cardano through our vault (you can see these here: http://app.vyfi.io).
2nd Segment: LIVE Questions
✨✨QUESTION1🩸: Currently you are only supporting "Cardano Chain" in your App,
Do you have any plan in your Pipeline to support more Blockchain or Cross chain?
👉ANS: Ill start here!
After our DEx, we are building an Auto-Harvester. This will allow users to aggrigate their liquidity and let our AI decide on liquidity pools for the user. This will incorporate cross-chain yield farming yes.
Ill answer this as it also answers the question above. Users can get started with a Cardano wallet - and can get VYFI on any Cardano DEx (minswap, wingriders, muesliswap, sundaeswap). Our DEx will be launch in early May, and youll be able to buy us directly on our own DEx there after.
We plan on making the entire process for new users the easiest experiance that has ever existed on a DEx. We have a "ZAP" feature, that allows you to supply liquidity with only a single token
To illustrate the change
With ZAP, you come to our DEx with only 1 token, supply it as a ZAP. Once you recieve the LP, you are instantly farming.
✨✨QUESTION2🩸: I Noticed that 85% Total supply you have locked for farming,
And I haven't Noticed any allocated token for Marketing and Publicity,
How are you going to do your marketing without money?
👉ANS: We have 5% for ecosystem development. As I described before, the 85% is minted over 21 years of emissions. So it will be a long time until we are even half-way to that 85% being released (9 years)
✨✨QUESTION3🩸: On your website, I saw the VyBar (Coming Soon). What is the VyBar all about and how does it benefit the VYFI ecosystem? When will it also be launched?
👉ANS: I described this earlier, and linked the article. Its our distributive mechanism for our token to allow users to share in the fees generated from our ecosystem.
✨✨QUESTION4🩸: It caught my attention that you implement "Fees used to generate upward pressure on the VYFI token", but could you explain to us how these fees will put upward pressure on your tokens? Wouldn't this do the opposite, preventing users from buying in order to avoid rate losses?please
👉ANS: Through our BAR, the fees generated are collected, and use to buyback VYFI from the market. This provides upwards pressure to our token through the collection of fees
✨✨QUESTION5🩸: Could you tell us a little more about the plans you have for this 2023? what are your priorities? and will they be able to complete the development this year?
👉ANS: Once our DEx is complete, we are beginning construction of our Auto-Harvester (similar to Yearn from Ethereum). We are looking to have a simple version of this running within a few months of our DEx (we expect it to be the first, even if simple, auto-harvester on Cardano)
✨✨QUESTION6🩸: How will you attract traders to VyFi with the competition of other major Decentralization Exchange (DEX) that provide many features/products?
👉ANS: With our unique implementation of LP farming - our Liquidity Pool tokens wont just be dead value locked to a farm. You will be able to use our LPs for collateral on loans in the Cardano ecosystem (more info on this coming soon), to build multi-layered Liquidity pools that give boosted farming, and many more interesting and complex tools that can be built. We discuss this in our most recent article here: https://vyfinance.medium.com/layer-two-l2-liquidity-pool-lp-farming-deep-dive-41f561b21edf
Warning - this article is for advanced readers. We are writing a simpler version as we speak :)
Where we discuss Layer 2 Liquidity Pools (a first in crypto!)
✨✨QUESTION7🩸: May I Know What Distinguishes VYFI From Other Existing Project, Could
you List Some Unique and Salient Features that Makes you Best From the Other Similar Projects ?
👉ANS: As above :) Our article describing non-custodial farming can be found here:
✨✨QUESTION8🩸: You point out that VYFI token holders can vote democratically on protocol changes, but really, how many minimum tokens will I have to have to be able to participate in the voting? And also, how often will the voting take place?please
👉ANS: New farms will be the biggest initial voting. What farms does the community want to be able to host on our site.
Given our total holder base is close 15k, and we only have a supply of 14mil, thats less than a 1k average holder per wallet.
✨✨QUESTION9🩸: Why can't we do non-custodial LP farming on other chains. What technical factors make Cardano such a superior alternative to other chains?
Can you finally explain the click-to-earn mechanism?please
👉ANS: I wont go full engineer depth as Cardanos UTxO modal is not for the faint of heart. But to put it simply - you can stake Cardano on chain without having it locked. Its built into the blockchain to be able to do this. Thats not the case with other blockchains, there is no system for staking while having tokens loose (thats non-eUTxO chains I should add).
The click to farm represents the fact that users only need to make a single transaction to start farming on our site. You can "ZAP" in your liquidity with one token, and begin instantly farming as soon as the LP hits your wallet.
✨✨ Ohhh, Id like to share our twitter and telegram here if I can - otherwise delete the message
Thank you for answering the community questions
Thank you for asking all the questions everyone!
Its great to see some really good questions in there
✨✨Before we come to the of the AMA, do you have any information or infographics you would like to share with the ALC community?
First of all, thanks so much for having me! Its been a real pleasure speaking with you all! We are doing some really amazing things, and implementing some amazing new tech to 'level up' the user experiance when interacting with DeFi. This is made possible through the Cardano Blockchain, and some creativity of course!
If anyone has any questions, you can find us on any of our socials - and we have many articles on our medium describing how we are doing things uniquly to improve the user experiance, and bring internal hedging strategies for impermanent loss built into our DEx.
👉Follow Us On Our Various Social Media Communities For More Update👇👇👇
👉FOLLOW AMA LOVERS CLUB ON:
📌Telegram Group: https://t.me/amaloversclub
🌎📢Telegram Channel: https://t.me/amaloversclub_channel