DefiDollar AMA Recap

02 Sep 202005:08

AMA

DefiDollar AMA Recap

Cryptodiffer Team

Hello, everyone!😁

We are glad to meet here:

Siddhartha Jain (sid), Co-founder and COO - DefiDollar

Siddharth Jain

It is a pleasure to be here!

Cryptodiffer Team

Welcome Siddhartha, thank you for taking your time today!

Siddharth Jain

Thanks for having me

Cryptodiffer Team

Our team has prepared 3 questions for you to start with!
Let`s start with the introduction !
Q1: Can you introduce yourself to our community?

Siddharth Jain

for sure, let me share a bit about myself and the DefiDollar team
Hey everyone, This is Siddhartha, am the COO and one of the Co-Founders of DefiDollar
Have been involved in the blockchain ecosystem since 2017 and prior to starting DefiDollar was working on Ethereum L2 scaling
Always keen to learn more about cryptoeconomics and love to dig into on-chain data

I take care of everything business side of things at DefiDollar - Operations, Marketing and BD 💪

My co-founder, Arpit is the tech brains behind the product and is an ex-google, ex-yc alum
Both of us are DeFi- buffs and love to tinker with new products
We are a 6 strong right now with 2 members working part time for now
Actively hiring for multiple roles in the team right now 😇
Any solidity devs, do check out the role - https://angel.co/company/defidollar/jobs/954028-senior-solidity-engineer

Cryptodiffer Team

Awesome, thank you for an answer! The next question from us is about your project!

Q2: Can you introduce DefiDollar to us?

Siddharth Jain

We started DefiDollar in the EthGlobal hackathon in May. During that time, there was a lot of talk about how to get Dai back on it's peg. Also this about the time when centralization of other stablecoins was being seen as a real risk.

So, we thought about how we can reduce this risk and build a better and smarter stablecoin.
We had the opportunity to participate in the Ideo co labs’ Product Validation Day, where we got feedback from the power users in DeFi. That led to a major change in the protocol design and we decided to build on top of Curve.
DefiDollar ($DUSD) aspires to be a risk-insured stablecoin layer for DeFi. It aims to provide a safe and stable way for users to hold their assets.
It is currently live on Ethereum and built on top of protocols like Curve Finance and Yearn Finance.

We have dual token design:
- The stablecoin index, pegged to $1 - DUSD
- A governance token - DefiDollar DAO ($DFD)
$DUSD is a stablecoin optimized for peg safety, yield and diversification. The basket approach diversifies the risk, allows more types of collateral to be onboarded and allows integration with yield generating DeFi primitives. The inbuilt protocol mechanisms along with arbitrage helps keep the peg close to $1

Simply put if you want to hold a stablecoin that is insured against volatility and peg failure you should own DUSD.
DUSD is the first index shipped by the team in late August 2020.
The DUSD product portfolio also includes:
A Savings account - To help LP’s earn IL free returns on their stable assets, deposit stablecoins and earn interest in stablecoins
DFD Staking - Stake DFD to earn more DFD

DefiDollar has enabled protocol fee sharing and the revenue generated is used for DFD buybacks and to fund the DUSD Savings account.
The team is working on a bunch of exciting stuff that will help expand the scope for the DefiDollar ecosystem be it synthetics including indices and options products.
The next to be released is ibBTC which will be a BTC index and will be launched in collaboration with Badger DAO.
Really hyped to see ibBTC launch later this month(expected)
https://medium.com/defidollar/defidollar-badger-dao-present-the-defi-benchmark-bitcoin-interest-rate-e13371244c82

Cryptodiffer Team

Great! Thank you for an answer!
We have one last question from our team before we start community questions round!
Q3: Let`s now talk about the milestones you have achieved so far and about your upcoming plans?

Siddharth Jain

We have been live on Ethereum since late august and currently manage over $14 Million in DUSD . Aldo the DFD staking vault has ~40% of the circulating supply of DFD locked in it.
Let me share some statistics
We've been gradually gaining traction, Slowly but Surely! :)
you can check out the graphs here: https://duneanalytics.com/sid_31/defidollar
The savings account offers ~30% APY and is a great way to earn returns on your stable assets
One can find our detailed roadmap here: https://docs.dusd.finance/roadmap
we aslo shared in depth, what's next for the protocol this coming quarter
https://medium.com/defidollar/defidollar-roadmap-449465749537
I'm personally excited for ibBTC that we are building out in collaboration with Badger DAO. It is expected to get in TVL worth hundreds of millions of dollars
and is being built on top of Curve + Badger DAO + DefiDollar
ibBTC will exist as an ERC20 and will become the the default BTC asset on Ethereum

Cryptodiffer Community

The Governance token of the DefiDollar protocol is DFD. What primary functions will the DFD be serving and what will be its role in the DefiDollar ecosystem?

Siddharth Jain

DFD is the Governance token of the DefiDollar protocol It will serve two primary functions:
Governance :
The DFD token will be used to make critical protocol decision like the following:
-Whitelist & remove peaks
-Assign peak ceilings similar to the ones in Maker Vaults to balance the index
-Fine tune parameters like redemption fee within a peak
-Decide on the distribution of the protocol income

Protocol Backstop:
-DFD will be called in to act as the ultimate backstop against volatility. Similar to the fashion in which MKR acts as the last line of defence for DAI.

Cryptodiffer Community

1. Can you give us some list of partners and advisors you have been working with to make the DFD platform one of the best in the industry?

2. I heard that you are building ibBTC. Can you tell us more about this and with whom will you be building the IbBTC with?

Siddharth Jain

1. we are working with some of the best projects in DeFi
Key Partnerships inlcude Curve Finance, Yearn Finance, SushiSwap - Onsen,Badger DAO - BTC index, Cream Finance - Iron Bank, Opyn - Option Coin

We added the Curve liquidity pools as the first liquidity pools for the index and also for stablecoin swaps when a user mints DUSD
With yearn - we are leveraging their yVaults to earn added yield for our protocol users

DFD and USD are a part of SushiSwap's Onsen program as well

Regarding the option Coin - We envision options to be huge this coming year in DeFi , hence building a way to aggregate liquidity from options' protcols and use them as collateral in DefiDollar using the Option Coin

2. We are building ibBTC in collaboration with Badger DAO
https://medium.com/defidollar/defidollar-badger-dao-present-the-defi-benchmark-bitcoin-interest-rate-e13371244c82

Cryptodiffer Community

I read that DFD is the Governance token of the DefiDollar protocol It will serve two primary functions which are Governance and Protocol Backstop. I know of governance but I've not heard about protocol Backstop before, could you describe it briefly for us to understand?

Siddharth Jain

It is similar in terms of how MKR acts as a protocol backstop for DAI.
In case of DUSD falling away from its peg of $1, as a measure of last resort DFD will be used to make the protocol whole
The DUSD index is stronger than any single coin and can average out the volatility.

Cryptodiffer Community

What are the products of DefiDollar Ecosystem? Which one you think is the unique and most proud of?

Siddharth Jain

We have the following:

DUSD - The Stablecoin Index, Live already having ~$14 Million locked
Savings Account - The DefiDollar savings account , has ~$4.5Million worth stablecoins deposited
ibDFD - The DFD staking vault that allows one to earn more DFD

the upcoming ones include
ibBTC - The Bitcoin Index being built in collaboration with Badger DAO
OptionCoin - Aggregating options liquidity and then using the optioncoin as collateral in our protocol, in collab with protocols like Opyn
I think i have covered some of the most interesting ones, remainder look like repeated ones or not very relevant

Cryptodiffer Community

Do you also support USDT, DAI, TUSD and USDC for now, what are the benefits of that?

Siddharth Jain

we support these coins - USDT,USDC, TUSD and DAI for now
these can be used to mint DUSD right now
but we are lookign to expand the coins supported as well

Cryptodiffer Community

1. What profit sharing system has DefiDollar put in place to help attract more users to it platform?

2. Will you be introducing something like buyback or token burn so as to help drive up the price of the token?

Siddharth Jain

2. we do have a buyback mechanism - it is basically protocol fee sahring enabled
https://medium.com/defidollar/protocol-fee-sharing-enabled-via-the-dfd-buyback-vault-12ea9b104753#:~:text=DefiDollar%20DAO%20Token%20(DFD)%20buyback%20vault&text=The%20protocol%20income%20currently%20channeled,25%2C%2014%3A00%20UTC.

Cryptodiffer Community

is DFD - one of the best connected and established projects on ETH branching out into the BSC which should get a fair amount of interest from people at Binance trying to raise the BSC..

Siddharth Jain

We just announced the bridge this week to BSC 🙂
https://medium.com/defidollar/bridging-defidollar-dao-dfd-to-binance-smart-chain-using-multichain-xyz-b1eeae357887

Really excited about the possibility of what can happen on that front

Cryptodiffer Community

How much investment has DefiDollar raised in the past year and what are the strengths of DefiDollar to do so? thanks !!

Siddharth Jain

we have raised a seed round from marquee investors
https://medium.com/defidollar/defidollar-raises-1-2m-to-be-the-risk-insured-stablecoin-layer-for-defi-f5c76a7afe25
you can read more about it here

Cryptodiffer Community

Can you explain how is your Tokenomics Distribution? How many tokens Will be minted ? And How many tokens Will be locked by the team?

Siddharth Jain

you can find the deails on tokeneconomics and release schedule here:
https://bit.ly/3mzvQSC
We have really exciting bits coming up for DefiDollar with the ibBTC and BSC launches coming soon(no exact dates - 😉 )
Would love to see more of you involved with us in our community chat @defidollar_community
I am really humbled by the many questions posted by the community , would have love to answer more of them
but the paucity of time says otherwise

Cryptodiffer Team

Thank you @sid_31 for your time, great answers!
thank you everyone who took part today!

Do not forget to join @defidollar_community to learn more about the project!

Siddharth Jain

Thanks for having me @makscryptodiffer
it is really an honor for me to interact with the community