Sunday, 4th July 2021 8PM GMT + 7
Hi everyone and welcome to the AMA on Forum Crypto Moonlight Official Group We’re honored to host an Ask-Me-Anything session with @liquidifyio
Liquidifyer : nice to be here tonight,
its an honor to introduce our project to the Indonesian community ☺️
Look forward to sharing insights of YSL.IO with the FCM community! 🦾
Muhammad Ryan || FCM: I will explain a little about the AMA segment this time,
Segment 1: project introduction
Segment 2: Question Twitter
Segment 3: Live Question
SESSION INTRODUCTION PROJECT
Q1. Can you briefly explain what Liquidify is? We want to know more about it and how it works?
Liquidifyer: “Liquidify – is the world’s first Liquidity Accelerator for Long-Tail Crypto Assets”
When we look at the crypto market today, it is pretty obvious from looking at Coinmarketcap that the concentration of capital and liquidity is very significant. Bitcoin alone as the leading asset currently makes up over 40% of the whole market capitalization of cryptocurrencies (and up to 70% at times). Probably way over 90% of capital is currently concentrated in the Coinmarketcap top 100. So this is what we call the “head” of the market, mainstream assets.
But what about the other 8000+ assets currently listed on Coinmarketcap? Those form a vast “graveyard” of largely forgotten assets and small-cap coins, which we call long-tail crypto assets. Many crypto users are still “hodling” these assets, sometimes because they still have faith but often also because they are simply not able to sell as there is no liquidity. This means that there is still a lot of potential in such assets in terms of community resources.
So how is Liquidify going to solve this?
The idea stems from the traditional finance industry, specifically how non-performing loans were restructured in many Asian economies after the Asian crisis of the 1990s. Typically bad loans were repackaged together with high-quality loans to make them more attractive and then resold to investors and institutions.
Liquidify will do something similar with crypto assets, we will allow people to lock up long-tail assets and also mainstream coins according to different valuations and receive LAT (our protocol token) and LFY (governance token) for that. We call this synthetization/collateralization mining and the architecture in which this happens is called the “liquidity accelerator”.
To finish this up: Liquidify is a decentralized protocol that is designed improve the liquidity and growth potential in long-tail crypto assets (assets with low liquidity, low trading volume, and low market capitalization). Long-tail crypto asset holders can collateralize their assets through the Liquidify asset pool. The liquidity accelerator synthesizes all assets placed into the Liquidify asset pool into a fixed total amount of Liquidity Accelerator Tokens (LAT) and Liquidify Tokens (LFY).
Q2. How has your team’s experience and background been effective in the success of your project so far?
Liquidifyer : About myself, I am the international community growth manager of the project with more then 10 years experience in event and community management, I personally got myself into the Crypto space around 2017, and since then I am personally invested, since I believe in the growth and adoption of future technology.
The team behind Liquidify consists of 20 professionals, all with long-standing experience in technology, finance, and crypto. Among them is a champion from the Google Coding Competition, winner of a DoraHacks Hackathon, as well as a number of team members with work experience in Fortune 500 companies, such as Microsoft, IBM, Alibaba, and Google.
The executive team of five people has a combined experience of 60 years in technology and 20 years in the crypto market.
The team prefers to stay anonymous and will hand over the project to the community when the initial development stages are complete. Community governance will be exercised via a DAO and community voting. We acknowledge that staying anonymous will cost us empathy and trust in some parts of the crypto world, and especially in traditional industries, however, we opted for this due to the risks associated with crypto-related activity in some jurisdictions where team members are currently located.
Q3. What are your key features that set you apart from other projects and what competitive advantage do you have?
Liquidifyer : As you can see our idea of the project is very unique.
our competitive advantages are:
1. With our excellent connections in the crypto market we will be able to attract many projects to work together and join our protocol. On the other hand, our connections in traditional finance will help us to design better products for institutional customers and in the long run it will help us to extend our product reach to include assets from traditional markets such as stocks, bonds, real estate, and so on.
2. our extraordinary team which was introduced above
3. our unique business idea, which was validated in traditional finance markets
Certainly right now we are most looking forward to the protocol v1.0 release later next week, this will be the most important step. It also means that LAT and LFY will be launched and tradeable on decentralized exchanges. After that, the most important milestone will be releasing the full protocol 3.0 in October and by then we also want to decentralize the whole governance structure and transform the company into a DAO.
Q5. Can you provide some progress on your Roadmap and what results Liquidify has achieved so far?
Liquidifyer : You can refer to our website for this. Essentially, in 2021 we plan to fully launch the Liquidify protocol in 3 stages:
Liquidify 1.0: Collateral Synthetization (April 2021) –> done
Liquidify 2.0: Long-tail Asset Pool Synthetization with Extended Allowlist (June 2021)
Liquidify 3.0: Long-Tail Asset Pool Synthesis with More Flexible Asset Pool Setup Rules (October 2021)
Simran Dhillon (@simran_ysl), is the other Co-Founder of YSL.IO. Just to give you a quick background on him; Simran has diverse professional background across IT and Business, and has notable industry experience with companies such as Microsoft and HSBC. More importantly, he is a crypto veteran 💪 that has garnered significant experience within the crypto space, both as a programmer and working in the background as an advisor for a number of Blockchain projects including Zencash (which is now known as Horizen).
In addition to @simran_ysl and myself, we have a dedicated team of seven blockchain developers + one UI/UX designers that are focused on the development of our smart contracts and platform . Each of them are experts within their respective fields and are all busy working their magic behind the scenes ✨ to ensure we can deliver the best possible version of YSL.IO for our 12k+ community. We also have a marketing team that are hard at work, drumming up materials that will help spread awareness of our unique concept.
SESSION QUESTION FROM TWITTER
Q1, From @Alistai89126620 As I could see from your Litepaper, The Liquidify protocol 3.0 will open the long-tail crypto asset category and no longer set any allowlist restriction, can you explain why this last category won’t perform any other allowlist function? What’s this category going to determine?
Liquidifyer : Indeed the final version of our protocol won’t have an allow list anymore,
instead voting will determine which assets are included in the protocol. all holders of LFY, our governance token, will be able to vote on such decisions.
Q2, From @MOhameD211a Smart contracts are vulnerable to bugs, and even recently three big new DeFi projects were victims of this, costing users funds. How efficient and secured is your smart contract, and did you ever audit it via any external party?
Liquidifyer : Safety:
Liquidify is a decentralized project, funds are not held by the project team or by any centralized custodian but in the smart contract. This limits the risk of centralization but we recognize that this introduces a different kind of risk, which is the security of our smart contract. To guarantee user safety, Liquidify will get a smart contract audit by a leading smart contract auditing firm such as Consensys or Quantstamp.
Very simple, as Liquidify will combine many different assets into one index with LAT issued as index token, it means that LAT holders are significantly less exposed to the risk of one single asset dropping in value. For example, if there are 50 different assets in the asset pool and 1 of these assets drops to zero, the actual impact on the LAT price will not be significant. Moreover, the special feature of Liquidify is that it will combine BOTH long-tail assets AND mainstream assets into a single contract, which also significantly lowers the risk of a single asset dropping in value, while also improving liquidity by a lot.
Q3, From @JrKatasi As far as I know, Liquidify introduced 2 tokens which are: LFY and LAT. Can you please explain what is the purpose of these two tokens? How are they used and what role do they play in the Liquidifyio platform? Liquidifyio users need to hold both tokens?
Liquidifyer : Liquidity Accelerator Token (LAT)
LAT tokens track the combined prices of all long-tail assets collateralized via the protocol, plus speculation and utility value. Since the total amount of LAT is fixed, and the price-determining parameters include the volume of Liquidify’s long-tail crypto asset pool, it means that a larger asset pool will theoretically increase the LAT price.
An example: the total supply of LAT is 45 million. If we have 45 million worth of assets locked in the pool, then the value of LAT would objectively be 1$ per LAT, not considering any speculation. Now if an additional 45 million worth of assets enters the pool while LAT supply cannot be increased, then the value of LAT would be 2$. There is currently over 70 BILLION worth of assets locked into DeFi applications.
if the LAT token comes any close to the top 5 defi competitors, it will look like the following graphic:
yes its a once in a lifetime opportunity
about the LFY TOKEN:
Liquidify Token (LFY)
LFY is the Liquidify protocol governance token. Token holders can exercise their own voting rights in the Liquidify governance system or delegate tokens to others for voting purposes. Any token holder can participate in Liquidify’s governance. As long as a user holds 1% of tokens via personal ownership or delegation, they can initiate governance proposals, including those that posit changes to the long-tail crypto asset pool allowlist, asset pool portfolio weight ratio, lock-up incentive policies, transaction fees, and other protocol-related parameters or variables. It is even possible to propose changes to the basic infrastructure of the protocol.
Q4, From @Jaki73364096 I read that the Liquidify protocol will limit the assets that can be mortgaged based on qualifying asset types. But, how can you qualify to use the protocol? Is it necessary to have a specific LAT quantity? And if so, how can I get them?
Liquidifyer : Regarding supported tokens/projects, we will have an allowlist initially to determine which tokens can be accepted. We have already seen lots of interest from projects contacting us and asking about possible cooperation, currently we are screening for the best options.
The project beta will be launched later within this week or the beginning of the next week.
You get LAT tokens, by synthesizing your assets into the protocol. Your token will be”exchanged”, into the same amount of Value of LAT token. There is no minimum of LAT tokens to use the protocol.
Q5, From @zeonk313 Could you introduce here the most interesting features of @Liquidifyio to the community, which attract and encourage users to start using @Liquidifyio ? And What role do your partners play in the flow ecosystem and what benefits do they have for being partners?
Liquidifyer : Target clients are 1) long-tail crypto-asset holders and 2) institutions that potentially want to get exposure to long-tail assets, e.g. small-cap coins. In both cases, liquidity is the key. Long-tail asset holders can benefit from increased liquidity being able to sell assets which otherwise would not be possible to sell, also increased liquidity will potentially be beneficial for the price of such assets, it can help to bring back life to those projects. Not only users, project team’s can obviously also benefit from this, there are many ways they could use Liquidify to reinvigorate their project and improve the circulation of their project tokens.
On the other hand, institutions can usually not trade assets with small market cap or low volume, but they might still want to get exposure to such assets. There is significant potential in some long-tail assets and many obscure small projects have grown to become CMC top 50 or even top 10 assets. Offering indirect exposure to such assets can be highly interesting for institutional traders and investors.
Of course, the improvement in long-tail asset liquidity for the cryptocurrency market is only the first goal of the Liquidify Protocol. In the future, with the continuing advancements in the Liquidify Protocol and the continuing expansion of the ecosystem, more long-tail assets from the field of traditional finance, such as long-tail bonds will also be tokenized and then included in the asset pool of the Liquidify protocol.
SESSION FREE ASKING
Q1 From @botman599 How many $LAT tokens do I need to hold in order to pledge assets via the Liquidify protocol asset pool and does your platform have a STAKING Plan?
Liquidifyer : Of course we gonna be involved in those hot topics and offer our community a variety of services,
It will be definitely possible to stake lat Tokens for a fixed annual return.
Q2 From @HighVoltage0022 A big problem for a lot of Defi projects seems to be that when farming starts, the price goes down because people unload to put liquidity into the farm.
Will there be an incentive to hold and not just farm and dump???
Liquidifyer : synthetisation is different to farming. its a different concept, tokens are exchanged for each other, in farming people just stack a token to farm another. our protocol uses and exchange process.
Q3 From @hprasel Do the token holders have right to participate in the governance of the project? And how?
Liquidifyer [never dm first] : yes the company will be transformed into a DAO later, and protocol user will harvest the LFY token which will give them a voting right, similar to holding a stock in a traditional finance company.
Q4. From @Jaclynsuong What are your plans to place for global adoption and expansion?
Liquidifyer : Liquidify chose to initially build its protocol on the Binance Smart Chain (BSC) and Huobi ECO Chain (HECO). Compared to the Ethereum public chain, BSC and HECO are more suitable for the technical development and business expansion of the Liquidify protocol in the early stages.
Of course, BSC and HECO are only Liquidify’s preferred public chains in the initial stage. Liquidify protocol is blockchain agnostic, which means it is not limited to one specific chain or ecosystem. In the future, the Liquidify protocol will be available on Ethereum, Polkadot, and other major chains.
so our protocol will be able to move around freely between the chains.
Q5. From @Fighter00022 Do you plan for BSC or Your project, in future??,”
Do, have plans to add your project, in various blockchians, in the future????,”
Liquidifyer : yes we will be listed on Pancake-swap this month 🙂 we will start on the BSC, later we will go on ETH, and all other available blockchains
feel free to be part of our long-term investment opportunity! as i stated before, we need somebody manage the indonesian community, so please contact me for a job offer 🙂
Website : http://www.liquidify.io/
Twitter : https://twitter.com/Liquidifyio
Facebook : https://bit.ly/3tpXXaH
Medium : https://medium.com/@liquidify
Discord : https://discord.gg/bsM7ykdqrd