31 Aug 202013:08
AMA
Dafi Protocol AMA Recap
Cryptodiffer Team
Hello, everyone!😁 Cryptodiffer TeamWe are glad to meet here:
Zain Rana, CEO & Founder, Dafi Protocol
(@zainrana)
Zain Rana
Hey everyone Zain RanaCryptodiffer Team
Welcome Zain, thank you for taking your time today! Cryptodiffer TeamOur team has prepared 3 questions for you to start with!
Let`s start with the introduction!
Q1: Can you introduce yourself to our community?
Zain Rana
Sure! Zain RanaI'm Zain from @DafiProtocol
DAFI is pretty cool - we're enabling every decentralized networks to reward their users, based on their network adoption
Building better scarcity, long term users, and less hyperinflation
Kind of like Staking, Liquidity Providing, and Bounties 2.0
Cryptodiffer Team
Very interesting, let's talk a bit more about Dafi Protocol Cryptodiffer TeamQ2: Can you briefly tell us what are killing features of Dafi Protocol and how is it different from competitors?
Zain Rana
For those of you who are not that familiar with DAFI - it's Reinventing how Networks are Rewarded. Zain RanaInstead of giving out tokens, every decentralized economy can create a synthetic tied to their adoption and reward their longer-term users better. We were inspired by the 2018 market chaos - it became pretty clear that this was massively contributed because of the hyperinflation & supply shocks due to a broken model.
So the big issue is how to reward a network without destroying a token (by creating too much of a supply when there is no demand/adoption) Nobody likes this model, it just devalues an economy
This is a pretty good explanation.
Rather than giving out tokens for staking, liquidity incentives, participation rewards - protocols can create synthetics on DAFI and distribute this instead
These synthetics - called dToken - are tied algorithmically to the demand of the underlying network
In a new project or in a bear market, the synthetics are issued in a reduced quantity, and for the longer term hodlers - as demand/consumption grows in the network, the synthetic dTokens increase in quantity themselves
They can, at anytime, be burned for the underlying token
Cryptodiffer Team
The last one from our team before we start community questions part! Cryptodiffer TeamQ3: Let`s now talk about the milestones you have achieved so far and about your upcoming plans?
@zainrana
Zain Rana
Well we've been working on a few cool stuff since 2018 in stealth mode (just self-funded testing of theories/models) Zain RanaIn 2020 we presented DAFI at some major institutions in England, and were incubated by the Royal Bank of Scotland too which was awesome.
We developed a synthetic creating platform for dBTC and dETH which is in its final stages now, and we also closed a very successful private sale in February - https://t.me/DAFIAnnouncement/173
We have the DAFI public sale (finally) happening on DAO Maker, sign ups started today, exchange listing is next week
We have DAFI staking going live in the Summer, and flavours of synthetics enabled shortly after
So we have this entire runway of partnerships we're onboarding, some really impressive projects in Crypto who are becoming part of the "Switch to DAFI" mission.
I recommend everyone to join @DAFIProtocol too btw
Cryptodiffer Team
Perfect! Thank you for the great answers! Cryptodiffer TeamIt is time to move to the community questions part.
Cryptodiffer Community
✅Can you explain why projects need to mint synthetics based on its own tokens, so can you explain us what are the advantages of use your them over just use the original version ? Cryptodiffer CommunityZain Rana
Yes - by simply giving out tokens directly, it's classed as "dumb incentives" Zain RanaCreating a dToken on DAFI, means the incentive quantity is linked to the adoption of the network. In low adoption, the synthetic quantity is reduced - so if users burn the synthetic for the real token - they get less rewards (the network protected itself from supply-shocks)
As demand rises, the synthetics increase in quantity algorithmically, so you are incentivized only through adoption - not randomly (like its currently done)
Cryptodiffer Community
You say that your Dafi system adjusts to the demand, it is a synthetic product, but how do we know that this does not have manipulation, for example, how is it possible to calculate the fomo here? Cryptodiffer CommunityHow does Dafi adjust to staking but in impermanent loss, what does it do to avoid it?
Zain Rana
We use secure oracles to feed in demand metrics, which create demand coefficients that modify synthetic quantity relative to demand Zain RanaThe admin key of this can be made public or private (up to the network itself)
The network adopting DAFI can select a range of metrics e.g. price of their token, volume (tx's), value of tx's, number of nodes etc - and this information (metrics) are all completely onchain and verifiable
There's also an economic reason why manipulation is not worth it - because the network adopting DAFI, and it's users, are aligned together for the simple goal of adoption, and both are now aligned on the same path. Whereas traditionally in crypto, projects distribute more tokens than they'd like (because it creates huge sell pressure and supply shocks) - DAFI makes them aligned together now
Cryptodiffer Community
Do you have any Coin Burn or BuyBack system or do you have any plan to burn $ Token to increase token value and attract investors to invest in your project on Defi? Cryptodiffer CommunityZain Rana
Nope - because buybacks/burns are desperate attempts to correct an excess supply that was created Zain RanaDAFI makes this less likely in the first place, as emission of tokens are now tied to network demand, it's a more stable model, so to clarify buybacks etc display the need to prevent over release of tokens
Cryptodiffer Community
Q1. Is the DafiProtocol Whitelisting still on and how can we stake for the Public sale? Are there special requirements? Cryptodiffer Community@zainrana
Q2. Do you have Communities, channels or social media handles we can use to access updates and do more research on the project?
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Zain Rana
It's worth taking a look at @DAFIAnnouncement Zain RanaCryptodiffer Community
Why can't a synthetic token burn? Cryptodiffer CommunityZain Rana
It can - its an intermediary Zain RanaMeaning, its burned to get the real underlying token
Check out www.dafiprotocol.io/litepaper
Cryptodiffer Community
What can we expect to see from this project in the short-term (at some point in 2021) and 2022 and beyond (long-term goals)? Cryptodiffer CommunityZain Rana
It's all oriented around the "Switch to DAFI" mission statement, so the short term goal is to enable DAFI staked for synthetics, and the long term goal is to change the token distribution model for staking etc Zain RanaThanks for having me!
If you guys have any further questions, head over to @DafiProtocol