Chaoxing Dialogue Issue 14|Port of DeFi Network India Edition Comp

The following is the content of all the conversations organized by Nova Club:

 

Helen: Hello everyone who is watching the live broadcast online, welcome to the Nova Club Superstar Dialogue. I am today’s host Helen, Director of Investment and Investor Relations at Nova Club. Nova means new star. "Superstar Dialogue" is a dialogue column initiated by Nova Club. It is a team of dialogue people composed of industry elite investors. We only talk to the most potential projects. DeFi is booming and has become a well-deserved super hot spot. The entire DeFi market value has soared by more than 10 times in just three months, and there is a trend of continuous heating. DeFi is no longer just a carnival of insiders, but has become an atomic bomb in the global financial circle. , Detonating the global financial bull market! Today, the live broadcast room invited Port of DeFi Network, a DeFi project "considered as the Indian version of Compound". He is the founder and CEO of technology company MⁿD Techno, and a partner of the successful digital currency investment marketing agency "Cryptoinfinity". PDF project CTO, Danish as a guest at Open Camera, and Freeman, the co-founder of Wutong Blockchain and an investor in the PDF project, will share the development status and trends of the DeFi track together!

 

First, we give a brief introduction to Mr. Danish: Danish is the founder and CEO of technology company MⁿD Techno, and a partner of the successful digital currency investment marketing agency "Cryptoinfinity". He has more than 5 years of experience in the field of blockchain technology sales and marketing. With his rich experience in social media marketing and product advertising, he has created value-added wealth for value customers in various fields around the world. Danish has established a professional and dynamic international top team, committed to promoting the exploration and development of global blockchain technology.

 

Helen: Hello, Mr. Danish, please talk about how you understand "decentralized finance"? What do you think of the current development status of DeFi?

Danish: In my opinion, DeFi is a means or sport. From a definition point of view, Decentralized Finance is very intuitive to delineate a range. Finance covers what this type of agreement is doing; and Decentralized, in my opinion, is describing the way to implement this type of financial service. If we limit the finance related to cryptocurrency to financial services based on smart contracts, then I think the concept of DeFi is accurate, like the current financial services that include transactions, lending, and derivatives in Ethereum and Bytom. All in this column. In fact, the emergence of DeFi first started with Bitcoin. I think Bitcoin is the first example of decentralized finance, but no one calls it that; when we started to build DEX and other types of decentralized exchanges, we began to securitize Token, which is also decentralized A part of finance, as everyone knows MakerDAO does is decentralized finance. Only in 2017, there was no specific name or movement to describe or describe this matter. For the current DeFi boom, as early as 2019, the total market value of DeFi was close to 150 million U.S. dollars. By June this year, the total market value of DeFi products reached 2 billion U.S. dollars. By August, the market value of DeFi had exceeded US$12 billion, and it even increased by US$2 billion within two days, an increase of more than 20%. In addition, the locked-in value of the DeFi ecosystem reached $5.5 billion, a record high. This data can be said to be very amazing. As a new financial technology revolution, DeFi is a rare big vent in the past two years. In addition, DeFi solves the bottleneck problem faced by traditional finance at this stage, lowers the financial threshold, and brings traffic to the financial field. A lot of capital has flowed into the market, which has stimulated the enthusiasm of the public, and investors naturally flock to it. But personally, DeFi is still at a very basic stage, basically equivalent to the Internet in 2000 and Bitcoin in 2010.

 

Helen: In your opinion, what are the inherent advantages of decentralized finance compared with traditional finance? 

Danish: Everyone knows how profitable the traditional financial sector is. Compared with traditional finance, decentralized finance realizes disintermediation through blockchain technology, reduces the role of middleman, and thus reduces the huge cost of intermediate links. And if you own an ETH property and hope to use it as collateral to obtain a loan, it is very simple to use decentralized finance. This way, the efficiency and simplicity of financing are much better than traditional finance. You only need to return the loan and pay the agreed interest or handling fee to redeem your original ETH, that is, you have obtained the loan, and you have the opportunity to enjoy the benefits of currency appreciation. In this whole process, there will be no human involvement, and everything will run completely through code. Therefore, in the DeFi system, the privileged institutions in the traditional financial field are replaced by codes and smart contracts. With the gradual implementation of decentralized finance, the general public will have the opportunity to enjoy the financial value contained in their financial assets in the future. Business users also have the opportunity to enjoy services at a lower cost. The operating efficiency of the entire financial system has been greatly improved, while the cost has been greatly reduced.

 

Helen: What do you think are the bottlenecks encountered by decentralized finance? What solutions can the PDF project provide?

Danish: Judging from the current development of the entire field of DeFi, DeFi is actually still in its early stages of development. There are many technical problems and problems to break through and overcome. In my opinion, the biggest obstacle to the development of DeFi is not the problem of capital and liquidity. It is a problem of high cost, scalability, user experience and security risks. Users who play DeFi have a profound experience, and the gas fee is too high. If you play liquid mining, it's common to spend dozens of dollars in gas fees at a time. If it is a heavy user, it is common to spend hundreds of thousands of dollars to play DeFi. This extremely high fee is obviously a big obstacle for DeFi to move towards large-scale users. Most ordinary users may not have a lot of funds to participate in mining. If the fee is so expensive, considering the risks of mining itself, from From a rational point of view, for most ordinary users, there is not enough motivation to mine. At present, the gas fee of Ethereum has become one of the biggest obstacles for DeFi to reach large-scale users. The second big obstacle is scalability. If there is congestion, the speed of DeFi processing transactions can be very urgent. In a special period (such as the Black Swan event of 312), if the transaction cannot be completed quickly, it will also cause losses. Some mortgage positions need to be redeemed through on-chain transactions. For example, during a period of rapid market decline, failure to complete the transaction in time may result in the liquidation of the position. This is why the new DEX recently launched by FTX is based on Solana (SOL), mainly considering its scalability and low cost advantages. In addition to cost and scalability, as well as user experience, many DeFi projects are currently in English and require the use of web3 wallets, which has a relatively high threshold for initial contacts. If it is liquidity mining, it involves the time and rate of return of various liquidity pools, the operation of adding liquidity, the exchange of tokens, etc., and there are no small thresholds. These are the things that DeFi currently needs to improve, otherwise it will not be able to reach large-scale users and will only be proud of it in the encryption core circle. 

Finally, DeFi has potential risks. The 3.12 Black Swan incident is estimated to be fresh in many people's memories, but this is certainly not the last time. DeFi projects have smart contract risks, chain risks caused by market prices plummeting, and so on. DeFi's composability and permissionlessness have brought extremely high benefits, but also accompanied by extremely high risks. However, the solution of these problems will not be accomplished overnight. The development of DeFi requires a long-term development cycle, at least 10 to 20 years of precipitation before it can fully play a real role. Therefore, what we can do at this stage is to make breakthroughs step by step, and do more technical experiments and innovations. The DeFi lending agreements on the market are indeed blooming everywhere, but many lending agreements simply do pure lending, similar to copies of Comp, and cannot even guarantee security. On the basis of ensuring the security of the entire service network, Port of DeFi Network uses technological innovation to meet the needs of user asset synthesis and mortgage lending. The technology has been upgraded from the following points: 1) The use of high-performance cross-chain Interaction; 2) Support for liquidity mining incentives; 3) Access to Oracle security system; 4) Build a distributed multi-collateral pool; 5) Build a set of perfect technical logic to assist the entire DeFi network to be convenient, safe and efficient run.

 

Helen: The current application scenarios of DeFi are indeed very rich, including various fields such as asset management, lending, stable coins, DEX, and financial derivatives. But among them, the most popular and fastest growing area is still lending platforms. Compared with other lending agreements, are there any advantages or bright spots for Port of DeFi Network? (Can be described in detail) 

Danish: PDF is the abbreviation of Port of DeFi Network, and it is also a governance token. The Port of DeFi Network is similar to Compound, which is a decentralized asset lending protocol based on Ethereum, but the difference is that the Port of DeFi Network uses Price Oracle as the data support for the underlying DeFi lending protocol on top of the basic DeFi lending protocol. Technology upgrades to realize the synthesis between real-world assets and digital currency assets, provide a truly safe, free and transparent port for multi-asset value interaction between different assets, and finally create a decentralized value interaction financial service network. Provide opportunities for economic freedom and investment freedom for any individual on a global scale. In short, Port of DeFi Network and Compound belong to the field of DeFi lending agreements. Similar to banks, users deposit money and borrow their assets from other users to earn interest. However, due to the transparency provided by the blockchain, by reducing the number of middlemen, the lender can earn higher returns, reducing the lender’s risk. The Port of DeFi Network adds the function of synthesizing assets on the basis of the loan agreement, and further reduces the threshold for DeFi mortgage lending. During the development process of Port of DeFi Network, starting from the overall situation, first set up an overall asset interaction network, and then proceeded to break them one by one from the technical details. In order to improve user experience and increase usage rate, Port of DeFi Network supports a decentralized multi-asset mortgage model, supports all basic cross-chain solutions, greatly improves the scalability and flexibility of lending and asset issuance, and broadens users Scope of application, increase platform asset precipitation. In addition, in order to encourage the large-scale application of the Port of DeFi Network protocol, the Port of DeFi Network protocol introduces a liquidity mining model. Participants can obtain PDF certificates through the use of multi-collateral and synthetic asset issuance services, help PDF to circulate within the agreement and outside the market, and open distributed license-free mortgage services. Users can mortgage ETH to synthesize assets to obtain Steady, high returns. At the same time, on this basis, Port of DeFi

 

Helen: One of the highlights of PDF is "liquid mining". Compound is currently facing a very embarrassing situation, that is, the bubble problem caused by liquid mining. How will PDF avoid this problem? 

Danish: This question is very sharp, but it is also the first issue that Port of DeFi Network considered. PDF is regarded as Comp's Indian version of DeFi project, which not only inherits its advantages but also makes up for its shortcomings. At present, the liquidity mining of DeFi is mainly a product that occurs on the Ethereum blockchain. It gains revenue by providing liquidity for DeFi products on the Ethereum. To put it simply, mining can be done by depositing ETH token assets. The reason why it is called mining is to follow the industry argument of Bitcoin mining. For liquidity mining on the Port of DeFi Network, users can obtain PDF governance token rewards by depositing tokens or lending tokens. The PDF token represents the governance right of the Port of DeFi Network protocol. PDF holders can vote to determine the development direction of the Port of DeFi Network protocol. If the Port of DeFi Network business is valuable, then PDF has natural governance value. The core of this concept is to distribute the PDF to the agreement users according to the amount of liquidity provided or used by the agreement users, which can not only encourage users to use the agreement, but also distribute the ownership to active stakeholders to achieve complete decentralization. The ultimate goal. The total amount of PDF governance tokens is 12 million, of which 2 million are in circulation, and 10 million are produced through loan mining. Unlike the expensive BTC mining, the PDF mining model is very simple, completely decentralized, and users can always Opting out, this is the advantage of PDF mining. The solution given by the Port of DeFi Network is: governance token + voting mechanism + "buy votes", creating a new governance and investment structure, that is, whoever enjoys the convenience brought by the DeFi financial infrastructure will do it Pay. If financial project tokens and assets want to enter the DeFi market for transactions, they need to pay to "buy tickets" and vote through the governance of the community. By rewarding users with PDF interest rate benefits and charging user service fees at the same time, we will increase ecological governance and achieve the ecological balance of income and expenditure of the entire PDF, thereby ensuring the value and income of everyone. To put it simply, PDF tokens do not distribute all tokens to participants for free like Comp, but through pre-sale of the initial circulation, which fundamentally guarantees the value of PDF, thus avoiding the generation of bubbles, and through Weighted management in the later stage, to achieve continuous value-added PDF. DeFi

 

Helen: What is the biggest problem encountered during the Port of DeFi Network technology development process? For the current international situation, what advantages does Port of DeFi Network have? 

Danish: At present, DeFi is still facing the status quo that most users have low awareness of it and the number of users is relatively small. It is still in the early stage of development. On the one hand, it is subject to the performance impact of the underlying public chain. At present, the Port of DeFi Network is built on the Ethereum network, but the performance bottleneck of Ethereum has been around for a long time. Faced with this situation, the Port of DeFi Network still has a long way to go; secondly, decentralized financial projects, Compared with traditional financial products, it is much more difficult to use and has higher requirements for users' cognition, which will also greatly affect the development speed of Port of DeFi Network. Therefore, Port of DeFi Network needs to simplify the operation process, so that ordinary novice users can easily master it. And establish a more professional ecological community to assist the popularization of Port of DeFi Network and establish global consensus. I believe that with the efforts of many parties, Port of DeFi Network's refined internal design and ingenious economic system are bound to become the representative of the next generation of decentralized financial systems and be widely used. Finally stand at the starting point of the widespread development of Internet finance and the germination of the blockchain technology revolution, and embrace the DeFi 2.0 era! The Port of DeFi Network is currently on the basis of technology and products. It has realized the market, agreement, and asset level. It has a larger international market, like Lego bricks, and this ecological model of domestic DeFi is difficult to achieve. Yes, because domestic DeFi projects are relatively conservative due to policy constraints, and the environment is independent of each other, and assets are relatively isolated. The Port of DeFi Network market is relatively large, bringing more confidence to participants and thus greater liquidity. In addition, for the Chinese market, PDF has reached strategic cooperation with a number of Chinese community head capital institutions, and has a huge community base. PDF has obtained NOVA, MDTechno, BV Capital, encrypted capital, imagination fund, light block chain and With the support of many domestic and overseas capital institutions such as Indus Capital, it has signed strategic cooperation with BitKeep Wallet and LBank Exchange, and established cooperation with many professional communities such as Langya Pavilion and Secret Code Academy, which has enriched the PDF ecosystem and the subsequent explosiveness of the project. It has also become a crucial step in the global layout of Port of DeFi Network and a step in rapid development.

 

Helen: Now we welcome Freeman, the co-founder of Wutong Blockchain and an investor in the PDF project

 

Helen: Huobi announced the establishment of a DeFi laboratory, Coca-Cola bottlers are testing DeFi on Ethereum, etc. How do you view this phenomenon? How to look at Defi from the perspective of capital, the continuity of liquidity mining? Will this be a flash in the pan or a new sector over time? 

Freeman: The market value of DeFi has been rising since its inception. Looking at the long axis, although DeFi has exploded recently, its growth is a long-term process. Even if there is no liquidity for mining, the general trend that the total DeFi lockup volume continues to rise is still very obvious. In addition, from the macro background, Ethereum 2.0 is gradually approaching, which will bring new development momentum to the DeFi ecosystem. The substantial increase in the performance of the Ethereum system will become a necessary condition for DeFi to grow from a niche application to a mass application, and its high-frequency scene may also bring new gameplay to DeFi. In addition to the current asset, lending and liquidity sectors, a new track may emerge in the DeFi field. I personally believe that the long-term value of DeFi still exists, and the long-term value and direction will not be lost due to short-term hype. In the future, how DeFi will challenge centralized financial service providers in the cryptocurrency field is a point worthy of long-term tracking. Another point worthy of long-term tracking of DeFi lies in its exploration of decentralized governance. Vitalik Buterin, the founder of Ethereum, made a series of remarks on Twitter this year. He pointed out that from 2008 to 2020, almost all the 12 years of the crypto world have been exploring around finance; however, in the next In ten years, the development of the encryption field will change. In his view, decentralized community governance, as well as decentralized anti-censorship information release and communication, are the next very important tasks. In terms of these, DeFi has quite a wealth of business scenarios. Whether it is to provide stablecoins or lending places, it always truly meets the needs of some people, which also allows DeFi to have cash income, such as project commissions. , Or charge users for service fees, etc. In addition, the concepts of decentralized finance and governance are compatible with liquidity mining, which is a big step for the next DeFi project to explore decentralized governance.

 

Helen: Please briefly describe the history of investing in PDF. How did PDF stand out among the many DeFi projects? What is your most concerned point (team reliability or concept)? What is the investment logic for the DeFi track?

Freeman: The DeFi market is indeed very popular now, and various DeFi tracks have very popular projects, such as uniswap, Justswap, Fomoswap and so on in the recent DEX circuit. But for us cryptocurrency investors, how to choose and screen the quality of the project is extremely important. I don't recommend blindly following the trend and investing. Take our WuTong Capital as an example. We cooperate with Hong Kong stock broker Alpha, and have real capital injections from listed companies and domestic and overseas companies. Our team manages a huge amount of capital and is responsible for our investment. I take PDF as an example to briefly summarize the reasons why we are optimistic about and invest in PDF:

1. Review the quality of the project. Before making a formal decision to invest, I, together with other overseas partners of Indus, and the founding team of PDF, held multiple zoom video conferences, and reviewed the official information, including technical codes, contract security, qualification review reports, community activity, and overseas User sentiment and many other dimensions have been confirmed many times. To put it bluntly, we want to confirm that you are a team with a team, technology, market and ideals, not a project party who just came out to cheat!

2. Estimated market value potential. This point must be the most concerned about cryptocurrency investors. We all invest in projects to get high returns. Analyze the token distribution of PDF, the total issuance is 12 million, and the maximum circulation is 2 million. This is a project with a small initial market value. This means that PDF has the potential of a large market value digital currency! 20 times the Comp, 51 times the AMPL, and even 1600 times the YFI, are all based on small market value to grow step by step. In addition, as India's first DeFi project, it has attracted the attention of Indian cryptocurrency investors from the beginning. Snapperbuzz, India's largest blockchain media, has also carried out a comprehensive report on PDF. The activity and enthusiasm of the PDF global community also shows the investment potential of the project after it goes public.

Third, the blessing of institutions. Danish has already introduced that PDF has won the support of many large capital institutions in the circle. This is the kinetic energy and potential energy of the follow-up development of PDF. After all, everyone said that it is really good.

4. Go-live plan. The PDF will be released globally at LBANK at 20:00 on August 25th, Beijing time, and will become the first DeFi project of the LBK101 plan. After that, PDF will be launched on DEX and CEX one after another. What can be revealed is that the project party is already docking with the head CEX.

 

Helen: What other sectors do you think will continue to explode after DeFi? How to lay out personal investment in the face of DeFi? Would you like to share it? 

Freeman: As an old leek in the currency circle, DeFi has become so hot this year. I believe that many friends, like me, took the contract and watched the pie fluctuated in the range of 8000-10000 for two months. Then I found that the other side of the DeFi concept related currency is like a runaway wild horse, and the price is unreasonably rising. Since June, DeFi has become hotter and hotter. It is not an exaggeration to say that the summer of 2020 is the summer of DeFi. Personally, I am very optimistic about the DEX track. Whether it is due to YFI’s popular Balancer or AMPL’s Uniswap, I believe there will be a number of star projects in the near future. According to the grapevine, Fomo3D’s original team has invested heavily in building based on " The V1 version of FomoSwap of AMM's automatic market maker algorithm will be launched soon. It is said that the Fomo gameplay with the award-winning end upside down is very fun. I hope you don’t step out and catch up with the trend bonus. Taking DeFi as an arbitrage tool, the real users of DeFi are more speculative arbitrageurs. Therefore, cooperation with exchanges and lending platforms can expand the base of such users more quickly. But from the perspective of future development, the real users of DeFi should be mature investors in the financial market. The introduction of mature investors through cooperation with banks and other financial institutions will play a positive role in guiding the development of DeFi. Discussing and paying attention to DeFi now is because DeFi has the possibility to promote the innovation of new financial technology systems. In the world of financial trading markets, there are no so-called "standards", only "subversion" and "new concepts". In particular, the governance token COMP issued by Compound created a considerable wealth effect, with a maximum increase of nearly 20 times. From the perspective of the digital currency and blockchain industry, the market lacks new concepts for a long time, and the liquidity mining launched by Compound brings new possibilities. A series of follow-up DeFi concept projects have also attracted a large number of new concepts. Admission of funds and new users. The concept of DeFi is hot. Regardless of the track, there are related tokens that have risen dozens of times or even more than 1000%. As users, when we invest in DeFi, active participation is very important. How to choose is more important, and don’t blindly follow the trend. , Finally, I hope everyone can seize the opportunity and create wealth in the wave of DeFi!

 

Helen: Finally, I would like to thank the two guests for sharing the current status and development trend of the DeFi track. At the same time, I would like to thank the co-organizer of today's event, Cointelegraph Chinese, the co-organizer Nova Club25 investment agency, and the cooperative media Mars Finance, Link De, Golden Finance, Shenzhen With strong support from 35 media such as Chain Finance, Coinvoice, and Coin Express, we will see you in the next issue!

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