Shield AMA Recap

03 Sep 202018:08

AMA

Shield AMA Recap

Nick (CryptoDiffer)

Hello, everyone!😁

We are glad to meet here
Charles, Core Contributor

Charles

Hey everyone, I'm Charles from Shield protocol. Thank you for having me today!

Nick (CryptoDiffer)

Let`s start with the introduction questions!
Q1: Can you introduce yourself to our community?

Charles

sure thing, I’m Charles from Shield protocol. I’m a continuous entrepreneur in Fintech industry and ex-founder of a listed company. I’ve worked in crypto for 3 years and have experiences of running centralized exchange. Now building Shield protocol.

Nick (CryptoDiffer)

Cool. Thank you for the introduction!
Q2: Can you briefly tell us what is Shield in 3-5 sentences?

Charles

Shield is building a one-of-a-kind decentralized derivatives exchange that trades risk-free perpetual contracts. Risk-free Perpetual Contract is an innovative financial product, which uses a combination of 0 position loss, a dual liquidity pool model, high leverages, a decentralized brokerage system, and external liquidators to counteract the existing limitations.
This brand new perpetual product goes above and beyond the mentioned limitations in the current derivative products, in our capability to get to be a more competitive space and bring DeFi the next generation of global decentralized derivative infrastructure.

Nick (CryptoDiffer)

Q3: Let`s now talk about the milestones you have achieved so far and about your upcoming plans

Charles

We are proud to announce the news of our latest funding - of 2 million dollars, conducted in a private funding round. The leading investors include A&T Capital and Hashkey Capital, while the rest of investors included SevenX Ventures, Incuba Alpha, Youbi Capital, OKEx Blockdream Ventures, Bonfire Union, Moonwhale Ventures, Zonff Partners, Shima Capital and Sharlyn Wu (Ex- Huobi CIO) for Shield’s latest funding round.
We also partner with Slowmist for audits and Chaink for price feed. Ethereum testnet is already launched (www.shieldex.io) and we will launch the BSC after the ITO.

Recently we receive many supports from global communities including Russia, Turkey, Thailand, Indonesia, Vietnam, Japan, Taiwan, etc. Shield ITO will launch at 11:00(UTC+0), June 7, 2021. Detail: https://shield-dao.medium.com/

Charles

Thanks Nick!

Cryptodiffer Community

COMPETITIVE ADVANTAGES AND STANDARD SECURITY MATTERS ALOT TO INVESTORS

What features makes you unique and forever undispensable by investors among your competitors, and What your security standards. Any plans for AUDITS. ???????
@ShieldCharles

Charles

Yep, I would say Shield is quite unique compared to the other potential coompetitors. I can talk about the following unique selling points:

-0 Position Loss
Risk-free Perpetual Contract is an innovative financial product with infinite upside potential and limited downside risk, which has no delivery. The unique point here is that the perpetual contract without potential position loss, thus avoiding huge downside risk or even liquidation that caused by the price delay.The protocol allows users to open short or long positions with prepaid funding fee in a fully trustless way. The maximum loss is capped by the prepaid funding fee, while the gain has infinite potential.

-Unlimited Liquidity by well hedged private pool and retail-focused public pool to ensure strong liquidity for traders. In this way, the users on Shield will be able to customize their risk management when involving with liquidity mining.

-High Leverage, the option like funding fee model enables up tp 100x leverage.

-Decentralized Brokerage System, the first trustless brokerage system on chain with higher commission rate than CEX.
Shield Audits
1) Slowmist
https://github.com/slowmist/Knowledge-Base/blob/master/open-report/Smart%20Contract%20Security%20Audit%20Report%20-%20Shield.pdf

2) Peckshield
https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-Shield-v1.0.pdf

Cryptodiffer Community

In reference to its SDL tokens, could you really tell us about its usefulness in the protocol, its distribution and if it has any burning mechanism?

Charles

Good question. Here is the one-page. There're mainly 2 token use cases:
1)Governance
Shield is community-oriented and will be governed by DAO. Shield will gradually transit to community governance and reshape the infrastructure of future derivatives.

2)Swap&Burn
The mechanism is that 10% of the total SLD would always be equal to 100% of the swap&burn value, thus generating a repurchase price. Anyone can go swap&burn to earn profits.

Bitcoin.com tweets how Shield Tokonomics captures the value in the long run. Feel feel to check out: https://twitter.com/BTCTN/status/1398022021993349124?s=19

Cryptodiffer Community

I came across the Shield’s risk-free perpetual contract. Can you please explain how it works and the benefits it brings for users in the Shield ecosystem?

Charles

Sure. Unlike the traditional nonlinear pricing model, Shield applies linear approximation by cutting up the nonlinear process, allowing decentralized risk-free perpetual work well on the Ethereum blockchain with on-chain settlement. On the fundermental product perspective, risk-free perpetual is exotic option from traditional finance industry, the core member of Shield bring this option on chain and allow the users to stike without expiration date, which is perpetual pruduct user experience.
So for the users of Shield, the biggest benefit is that pay little to win big without position loss. The protocol allows users to open short or long positions with prepaid funding fee in a fully trustless way. The maximum loss is capped by the prepaid funding fee, while the gain has infinite potential!

Cryptodiffer Community

- Crypto derivatives and Brokerage systems are quite complex and difficult to understand. How do you plan to simplify it for users to help on-board users to your platform?

- There are IDO, IEO, ILO crowdfunding. Why did Shield choose the ITO Crowdfunding, which is first of its kind? How do we participate?

Charles

Here it is. It's quite similar to affiliate program. The broker invite use users and gen commission when they trade. Shield is the first one to implement this on-chain.

ITO is acutally we initiate the sale on our twitter page. We hope the token can be fully distributed to the target users who join Shield ecosystem in the long run. Shield ITO will be live on June 7. You can refer to the guide here: https://shield-dao.medium.com/step-by-step-guide-how-to-participate-in-shield-sld-ito-fa5e9c931497
Last but not lease, follow our social media:
Website: https://www.shieldex.io
Whitepaper: https://docsend.com/view/tik7bk6c6vv6nqwvield_dao
Twitter: https://twitter.com/shiled_dao
Medium: https://medium.com/@shielddaoofficial
Telegram: https://t.me/shield_dao
Discord: https://discord.gg/NAbGTHYgMg

Cryptodiffer Community

Will Shield only seek to redefine decentralized derivatives trading on the Ethereum network? Or do you plan to expand to the BSC chain and then to the rest of the chains?

Charles

We have Ethereum layer1 and BSC ready. And they're both audited. We also hope to launch standard perpetual contracts based on Ethereum layer 2, along with the deployment on other blockchains as well.
We plan to launch the BSC testnet in 1-2 weeks. After the ITO, we will launch the BSC mainnet.

Cryptodiffer Community

🧧 Is there any time limit or a fixed delivery date for the flexible funding rate? How do you determine the flexible funding rate?

📀 How the Binary Liquidity Pools different from each other and how is it different from other mining infrastructures in terms of strong liquidity and low LP mining?

Charles

The funding fee is charged on daily basis and usually lower than the CEX. We have formula visible on whitepaper.

Strong dual-liquidity pool which consist of public pool and private pool. If you're professional traders, you can go this one; public pool is similar to liquidity mining, which is easy and more individual-friendly.

The majority risk of Shield is taken over by private pool. Therefore the LP mining in public pool is lower.

Cryptodiffer Community

You point out that your protocol does not have an expiration date, but what do you really mean by them? Could it be that the positions can last over time and be canceled until the user wishes?

Charles

yes, positions can last over time if users wish to. And can be closed by users at any time as well.

Cryptodiffer Community

It's stated on the website that Shield is The First Decentralized Risk-free Perpetual Contract.

Traditionally, only Government securities like bond are risk free by nature. Can you tell us if this is the same thing offered by Shield or there is another meaning to 'Risk Free' by shield?

Charles

yep, that's interesting. Cuz what we mention risk-free here is that you dont pay for the position loss due to unfavored price movement. This graph might be a better example.

Cryptodiffer Community

Hello,
As a recent victim of a liquidation incident I only skipped to set a stop-loss and BOOM.
Instead of saying the protocol as "risk-free" can we consider Shield is providing a method for squirrel deposits to prevent big losses of traders?

Charles

Your version sounds good. Will take it into consideration.

Cryptodiffer Community

🎑 Do users need KYC to start trading with Shield and earn interest? Do I have to submit my personal information to the system to open a position?

🧩 Centralized exchanges are majorly controlled. Crash risks are experienced. Accounts are frozen from time to time. How does Shield eliminate all these problems? How does Shield's decentralization make it different in security and risk reduction?

Charles

No. Shield is dex and running on blockchain. You connect non-custodial wallet like metamask wallet and start to trade.

Cryptodiffer Community

I have seen that you have done many AMAs, my question is, what do you expect to get from so many AMAs and what are your goals with the community? Do you consider the community to be a fundamental role in the project?

Charles

Shield is community itself I would say and will be governed by Dao in the near future. Community will participate the govanance and hand with us to reshape the future derivatives protocol.

For now anyone interetsed in Shield value please join us on social media. Shield team all on Telegram and we're looking forward to new idea/proposal from the community side. Btw, we also establish Shield eco fund to expand the global community. Anyone who want to run a Shield community can recieve SLD token incentives and support from the Shield offcial.

Cryptodiffer Community

Your project is very important but it needs a large user traffic to be sustainable over time. What marketing strategies do you have planned to increase the validity of your brand?Are you planning a strategic partnership to level up your project?

Charles

We do have go-to-market strategy to get users and liquidity.
-Product-oriented
Risk-free perpetual not only significantly decreases retail traders’ without potential downside risk on-chain, but also satisfies the non-custodial, permissionless and auditable features of decentralized derivatives on this DeFi boom. This unique selling point will attract end users in crypto and stay addictive to Shield once they try.
-Decentralized brokerage system and global KOL strategy
Shield is the first dex to implement a brokerage system in a fully trustless environment. Brokers can earn up to 40%-100% commission rate on Shield, which is way higher than CEX and are allowed to claim and check the rewards anytime. And Shield will always capture new users with global KOL strategy and connections.We have partnered with global KOLs and trader communities now, including Russia, Turkey, Thailand, Indonesia, Japan, etc.

-Sales team
Shield team has rich experiences on running centralized crypto exchanges and Shield has been working on a sales team to keep educating the new users under mature user acquisition strategy.

Cryptodiffer Community

Does Shield have Competitors in Crypto Space? What are the special advantages of Shield with Competitor? Also What consensus algorithm is Shield currently using?

Charles

It's known that there're some products on decentralized derivative market but Shield presents one-of-a-kind solution to deal with challenges(Delayed price feed, Order matching limitation, Costly market making, Delayed liquidation) on a fully decentralized way. Some may choose offchain matching, sidechain, or Layer2.

However, Shield thinks that only adopting the features of DeFi and satisfying the demand for individual trading that have not been met on CEX is the correct path to develop a decentralized derivatives exchange. As for the Risk-free perpetual contracts, currently we have no competitors that can offer such an innovative financial product. But we like dYdX and think it is potentially the biggest competitor.

Cryptodiffer Community

Apparently, many blockchain projects are not solving any real problem, they just exist to sell their tokens. What problems exactly is Shield solving, and solutions are you providing?

Charles

Here are more details about Shield business model
THE BLOCK: Why Shield Protocol is the next best solution in the Decentralized Derivatives Market
https://www.theblockcrypto.com/post/103436/why-shield-protocol-is-the-next-best-solution-in-the-decentralized-derivatives-market

Cryptodiffer Community

I have seen your risk-free permanent contract. What is your marketing strategy to keep Shield number one? Since I think, the company will see this opportunity and copy your strategy.

Charles

Cuz we not only have innovative finance capability, but also we know how to implement user acuquisition stategy for this new product. Even fork code can't copy shield since shield's pricing model is difficult execute themsevles.

Nick (CryptoDiffer)

Thanks for your time @ShieldCharles
👍🏻
Thank you to everyone who took part!

Charles

Thanks for the questions!

Nick (CryptoDiffer)

Very interesting questions and answers!

Charles

Last but not least, join the ITO and follow the social media!

Nick (CryptoDiffer)

Chat is unmuted!