Lien AMA Recap

Lien AMA Recap

CryptoDiffer team

Hello, everyone!

We are glad to meet here 

Lien Finance team

Lien Finance Team

Hi all!

CryptoDiffer team

Let`s start with pre-selected questions from Twitter
DeFi is one of the hottest topic in the blockchain space right now. Can you share your opinions on DeFi with us? Do you think that DeFi will disrupt the existing financial system? What is LienFinance approach towards the DeFi sector?

 

Lien Finance Team

In the traditional financial market, there exists a lot of regulations for the protection for the investors, which is not a bad thing of course. However, those regulations may limit the potential of the innovation in the finance space. This is what DeFi needs to overcome. DeFi need to be the place where anyone can enjoy the state-of-the-art technology at his own risk. DeFi is not disrupting the existing financial system, but is providing the new opportunity of experience.

 

CryptoDiffer team

The Lien protocol allows anyone to create an ETH derivative in a simple, elegant way. But what are the innovative features of this protocol?

 

Lien Finance Team

There are several innovative features on our protocol. One is definitely the fact that everyone can mint stable coins without over-collateralization. Most of other stable coins heavily rely on the collateral, the capital efficiency is sacrificed. Another feature is that we eliminate the governance from the protocol. Since the poor governance diminish the value of the protocol, Lien Protocol does not require the governance and it will be semi-permanently operated as long as there are demands for backed assets.

 

CryptoDiffer team

Can you tell me how #Lien_Protocol is resilient against government control?

Lien Finance Team

Once we release the code to the main-net, we are not able to change it because we do not have governance mechanism and the concept of can-do-anything admin key. No one can stop deploying smart-contracts to the blockchain.

CryptoDiffer team

The IDOL tokens is it totally necessary to perform the platform? What other limitations will this platform have in order to be used??

Why derive ETH in two ways like SBT and LBT? none of these can be marketed, except IDOL Tokens?

Lien Finance Team

Very Good question! SBT is always absorbed to a part of iDOL, so we do not have to marketize SBT itself. On the other hand, LBT has a brilliant feature as a leveraged token without any fear of liquidation. If you are not interested in hedging the risk by using the stable coin, you can enjoy the leveraged position in this Lien platform.

CryptoDiffer team

You seem to Value most about DECENTRALIZATION… but in the Field of Defi or Financing, Most Investor Trust the Centralized Platforms.

Is it true with @LienFinance?

What is your view with this?

Lien Finance Team

Unfortunately, it is true at least at this moment. We are starting from providing the protocol for the people who do not want to rely on the centralized platform. However, the global regulations are putting pressure on the crypto centralized platform and it is getting severe day by day. In a near future, we are feeling like people using centralized platform may inevitably start using decentralized ones. See what will happen.

CryptoDiffer team

Could you talk about Lien FairSwap? Can Uniswap provide support for LBT?

Lien Finance Team

Technically, it is very risky to trade LBT in Uniswap, because Uniswap are not able to handle the ETH distribution to LBT holders at the maturity date. The Liquidity Provider for the LBT on Uniswap will GOX if they keep LBT after the maturity date. This is one of the technical reasons why we prepare our own Lien FairSwap.
In addition, as many of you may know, the Uniswap users may suffer loss from front-runners, and the Liquidity Providers suffer loss when the market is volatile. We overcome those problems in Lien FairSwap.

CryptoDiffer team

Community, influence, and product are the criteria to evaluate a project and decide the opportunity to this time.
What are your outstanding advantages to overcome competitors?

Lien Finance Team

Our outstanding advantage is definitely the product at this moment. Our main competitor may be MakerDAO in the sense of crypto-backed stablecoin, but we successfully overcome the weakness in MakerDAO, i.e. over-collateralization and poor governance model.
We are doing our best for saying we are strong in the community as well.

CryptoDiffer team

The Lien protocol allows anyone to create an ETH derivative in a simple, elegant way. But what are the innovative features of this protocol?

Lien Finance Team

There are several innovative features on our protocol. One is definitely the fact that everyone can mint stable coins without over-collateralization. Most of other stable coins heavily rely on the collateral, the capital efficiency is sacrificed. Another feature is that we eliminate the governance from the protocol. Since the poor governance diminish the value of the protocol, Lien Protocol does not require the governance and it will be semi-permanently operated as long as there are demands for backed assets.

CryptoDiffer team

I am not really impressed with your project, Can you tell us some advantages of this project? And why should I buy LienFinance?

Lien Finance Team

First of all, our stable coin is backed by the stability of ETH derivatives price without relying on the over-collateral which is not really achieved by any other projects. Fluctuation of ETH price is basically absorbed by 2x leveraged token which can also attract people who believe in the value of ETH. Moreover, we also provide the Uniswap-like DEX platform which enables to benefit Liquidity Providers who normally have disadvantages in Uniswap-like model.

CryptoDiffer team

Can you explain
What is Lien FairSwap?
and How it works?

Lien Finance Team

It is a Uniswap-like DEX platform, but unlike Uniswap, users don’t need to be suffered from loss from front-runners. Also, the Liquidity Providers is also freed from the loss when the market is volatile.
There are mechanisms to clear the trade which are included in the block at the same time and to change the commission according to the volatility which is calculated by the protocol.

CryptoDiffer team

How do you evaluate the support from community?
What is your strategy to marketing and for Mass Adoption?
What message do you want to send to community through AMA today?

Lien Finance Team

The support from the community is definitely important as the protocol does not stand without it. That is why we announced the ambassador program to recruit people who contribute to spread our protocol.
For now, rather than focusing on marketing, we would like people to know more about the protocol itself, the beauty of the mechanism, and the value of our stablecoin as well as the value of the protocol.

CryptoDiffer team

The most important thing for an ecosystem is the number of regular users. How is #LienFinance oriented towards development in this regard?

Lien Finance Team

We announced the ambassador program to recruit people who contribute to spread our protocol. As it is little difficult for people without financial background to understand the mechanism, we would like ambassadors who can explain about our protocol.
It would be great if ambassadors give messages to investors, community and developers so that they involve and contribute to the project.

CryptoDiffer team

Q1: What are your main advantages compared to your competitors?
Q2: Do you have any partnerships with other projects to focus in the near future?

Lien Finance Team

Q1 :Our main competitor may be MakerDAO in the sense of crypto-backed stablecoin, but we successfully overcome the weakness in MakerDAO, i.e. over-collateralization and poor governance model.
We are doing our best for saying we are strong in the community as well.
Q2 : To make Lien Protocol more valuable and usable, we are currently investigating oracles to see which would fit our protocol most.

CryptoDiffer team

The most important thing for an ecosystem is the number of regular users. How is #LienFinance oriented towards development in this regard?

Lien Finance Team

We announced the ambassador program to recruit people who contribute to spread our protocol. As it is little difficult for people without financial background to understand the mechanism, we would like ambassadors who can explain about our protocol.
It would be great if ambassadors give messages to investors, community and developers so that they involve and contribute to the project.

CryptoDiffer team

How do you evaluate the support from community?
What is your strategy to marketing and for Mass Adoption?
What message do you want to send to community through AMA today?

Lien Finance Team

The support from the community is definitely important as the protocol does not stand without it. That is why we announced the ambassador program to recruit people who contribute to spread our protocol.
For now, rather than focusing on marketing, we would like people to know more about the protocol itself, the beauty of the mechanism, and the value of our stablecoin as well as the value of the protocol.

CryptoDiffer team

Lien – A new crypto-backed stablecoin and ETH option protocol without over-collateralization. What does this slogan means and how are you doing this , can you please explain?

Lien Finance Team

In our protocol, ETH is sliced into two tranches which are SBT and LBT. The value of SBT is stable as you would be able to receive original amount of ETH unless ETH price on maturity is above a threshhold, on the other hand LBT is a leveraged token allow you to engage almost 2x leverage trading. By combination of these two tokens, it avoids the over collateralization.

CryptoDiffer team

The most important thing for an ecosystem is the number of regular users. How is #LienFinance oriented towards development in this regard?

Lien Finance Team

We announced the ambassador program to recruit people who contribute to spread our protocol. As it is little difficult for people without financial background to understand the mechanism, we would like ambassadors who can explain about our protocol.
It would be great if ambassadors give messages to investors, community and developers so that they involve and contribute to the project.

CryptoDiffer team

Community support is by far one of the biggest factors for the success of a project. What has the LienFinance planned on increasing the user experience?

Lien Finance Team

We announced the ambassador program to recruit people who contribute to spread our protocol. As it is little difficult for people without financial background to understand the mechanism, we would like ambassadors who can explain about our protocol.
On the other hand, we do not want to focus only on marketing as it is meaningless to spread the useless product to the world.

CryptoDiffer team

Ok, thanks for such detailed and interesting answers!

Let’s move to the Telegram community questions part.

Cryptodiffer Community

There are many stable coins, Do you think that people are Wanting to have decentralized Stable coin?

Lien Finance Team

Though there are so many stable coins, we think there is no actual stable coin which is decentralized. Lien Protocol is aiming to create a stable coin which is fully decentralized , without any governance, and unstoppable unless people are willing to have it.

Cryptodiffer Community

I read a lot about Lien Finance, all are positive and good. But my question is what is behind Lien Finance that maintains its accuracy and ensures the whole system is working as per requirement? Is there any centralized server to check whether everything is working fine?

Lien Finance Team

The Lien protocol is completely operated on Ethereum blockchain, so there is no central server.

Cryptodiffer Community

Could you talk about Lien FairSwap?

&  Can Uniswap  provide support for LBT?

Lien Finance Team

Technically, it is very risky to trade LBT in Uniswap, because Uniswap are not able to handle the ETH distribution to LBT holders at the maturity date. The Liquidity Provider for the LBT on Uniswap will GOX if they keep LBT after the maturity date. This is one of the technical reasons why we prepare our own Lien FairSwap.

In addition, as many of you may know, the Uniswap users may suffer loss from front-runners, and the Liquidity Providers suffer loss when the market is volatile. We overcome those problems in Lien FairSwap.

Cryptodiffer Community

1. Comparing Lien+iDOL with other models of DeFi products with their specific bottlenecks, please tell me how do you intend to achieve greater stability for iDOL , mitigate the impact of peak market volatility and avoid the need for stability fee?

2. Did any third party audit your smart contract?

Lien Finance Team

Nice question, but interesting thing is that we don’t need a concept for controling supply and demand mechanism like stability fee in MakerDAO. Everything is based on the arbitrage opportunity. There is no ambiguouspart in our protocol.

Also, we are submitting our code to third party audit company.

Cryptodiffer Community

What is the meaning of Lien FairSwap? What’s the benefit to we users?

Lien Finance Team

We would like to intuitively tell you that this DEX is similar to Uniswap, and there exists a concept of Fairness. Detailed features are answered in a different question.

Cryptodiffer Community

1. DEX are the future. But it also seems DEX are still babies in diapers in comparison with what they aim to be. It is usually difficult for new users to get used to the interface, and feel secure with the amount of responsability, how is this problem solved in Lien FairSwap?

2. iDOL is a stablecoin backed with a cryoto and pegged to a fiat. How is guaranteed in this process that the price will be STABLE considering the VOLATILITY known of cryptos? Are there little variations in the price allowed by the model?

Lien Finance Team

It is true that DEX platforms are still babies and there are a lot to do before it will adopt to he market. In that sense, it is still difficult for new users to enter this market. But beforehand, there are still many problems for experienced traders. Even for Uniswap, we think there are the problems of front-running or the issue that Liquidity Providers are suffered from losses when there is high volatility. Lien FairSwap addresses those problems.

As you mentioned it is still difficult to maintain the stability of the stable coin. However, as Lien Protocol provides the auction process at any time, it will be more stable than MakerDAO.

Cryptodiffer Community

You have launched the Lien Ambassador program. What countries does this program cover and what core skills are needed?

Lien Finance Team

Lien Ambassador Program covers all over the world. We would like people who have strong financial background who can understand about our protocol. As our protocol is little difficult to understand, we would like ambassadors to be able to answer the questions. It would be really great if you could explain in your mother tongue.

Cryptodiffer Community

As I am new user, i found Your article is quite complicated, 

how does all this translate into an ordinary, low qualified user, who knows that LIEN Protocol exists and wants to use it?

Lien Finance Team

If you would like to understand our protocol precisely, you would need to learn financial engineering and micro economics and crypto technologies. We are doing our best to explain in a plain word in our medium blogs. Please check it out!

Cryptodiffer Community

Most users only care about immediate benefits rather than the real value of the project in the long-term. How can you convince users invest to your platform in the long-term?

Lien Finance Team

Well, we believe that the crypto world has entered to the next stage not to seek the immediate benefits. It is true that there are still people who would like to pick up easy money, but what we would like to achieve is the market which the true stable coin is used for many purposes. In our white paper, we stated the hints to enter that kind of the world.

Cryptodiffer Community

How do you plan to show the world that your product is not just useless blockchain solution to a non-existing problem?

Lien Finance Team

Hehe. IMO if the DeFi tries to reinvent the wheel on a unscalable machine, it is completely useless. Those days some DeFi are trying to introduce KYC stuff, which is purely insane. Go implement what is not realizable in a regulated world:)

Cryptodiffer Community

1) You overcome the defects in MakerDAO. Makes me wonder, is MakerDAO a reference or inspiration for Lien?

2) When did Lien start? by now How many exchanges have your token listed?

Lien Finance Team

We have been thinking that MakerDAO is not sophisticated and is replaceable. One day, we have come up with this brilliant idea in sudden.

Cryptodiffer Community

What is the difference between Solid Bond Token (SBT) and Liquid Bond Token (LBT)?

Lien Finance Team

As a developer that wants to build on LIEN PLATFORM, what are the things that are required Frome me? Also, what supports do you give developers?In order to create some applications on/around Lien Protocol, first of all you need to understand this protocol deeply. If you are interested as a developer, please feel free to DM on telegram!

Cryptodiffer Community

Q1: I read a lot about Lien Finance, all are positive and good. But my question is what is behind Lien Finance that maintains its accuracy and ensures the whole system is working as per requirement? Is there any centralized server to check whether everything is working fine?

Q2: What programming language are you using and why?

Lien Finance Team

Q1: To maintain the accuracy, the oracle is definitely an important aspect as it is a key for the stable protocol. We are currently investigating which oracle fits best to Lien Protocol. There is no centralized server as we eliminate the single point of failure.

Q2: We use Solidity for programming as it is the most common language in Eathereum.

Cryptodiffer Community

5 days are left before the bitcoin halving, what do you think – will this event affect LienFinance and the industry as a whole?

Lien Finance Team

We are implementing on Ethereum other than Bitcoin. Therefore, halving has nothing to do with us. Further, Ethereum does not have the concept of halving. Mining reward is updated by hard fork.

Cryptodiffer Community

As per i see, Lien project is working on Ethereum Blockchain ! But Why you choose  Ethereum Blockchain instead of any other Scalable Blockchain??

Lien Finance Team

We are releasing the protocol on ETH because many of the crypto enthusiasts are in the Ethereum community. On the other hand, we are not only looking at ETH blockchain as there may be a shift to one of other blockchains in the future. The core of Lien protocol is its mechanism, thus our protocol may also change the blockchain if we think it is required.

Cryptodiffer Community

Is lien completely decentralized? What innovations do you have in this regard?

Right now, USDT still has a huge proportion and has a high demand for being used on top future exchanges like Binance, Huobi, Okex.. So, how will Idol increase its demand, attract these potential markets and expand its impact in blockchain industry?

Lien Finance Team

Completely decentralized. MakerDAO is maintained but the poor governance model, which is hard to say “decentralized”. We are the first decentralized stablecoin backed by arbitrage opportunity rather than monetary policy mechanism.

Anyway, as you point out, it is super challenging to be like USDT. TBH it is not our target. We are at least initially provide our protocol to the people who really prefer decentralized stablecoin.

Cryptodiffer Community

Adoption is a headache challenge for every blockchain projects, especially at this sensitive period of the whole market when many blockchain projects were dead since no-one uses their blockchain. What are your team’s strategies and visions on this problem to onboard more users for Lien Finance platform?

Lien Finance Team

See what will happen in the end of June:)

Cryptodiffer Community

You say that anyone can customize the LBT. How do you provide the market for selling the remaining part of the LBT?

Lien Finance Team

Very good question. For time being, you can sell the customized LBT(Immortal Option) at the auction. You can tranche LBT what ever you like and you can sell it. However, you also need to think about the appetite of other traders to sell them at good price.

For future plan, we would like to prepare the platform to visualize what you are selling on the platform so that buyers recognize what they try to buy.

Cryptodiffer Community

How does this protocol mitigate the liquidity risk of SBT and LBT when user issue it?

Lien Finance Team

Good question. This is why we implement DEX ourselves. Please check the details in our blog!

Cryptodiffer Community

Why Vickrey Auction is an essential mechanism for DeFi product?

Lien Finance Team

Theoretically, there many disadvantages for current auction system. We don’t say that it’s required for all DeFi product, but it is required for our emergency auction at least to seek for the best price.

Cryptodiffer Community

Why we choose $IDOL and why hold it for long term?

Lien Finance Team

No you don’t have to HODL iDOL for long, as iDOL never brings you to the moon!

Cryptodiffer Community

In order to make the LBT market liquid, LBT parameters need to be discretized standardized. Is this how you are going to solve the liquidity problem?

Lien Finance Team

Super nice question, you can see how we discretize and standardize in the main net in the end of June!

Also, we prepare a Uniswap-like DEX named Lien FairSwap for LBT. Might be interesting to you as well.

Cryptodiffer Community

1. What are the requirements to be a Lien Ambassador? Are there some special benefits for Ambassadors only?

2. Some projects name their currency similarly to their project. But Lien names its coin iDOL. What is the meaning of the name iDOL?  What does iDOL stands for?

Lien Finance Team

1. Though most important thing is that you are enthusiastic about the crypto world. However, to be an ambassador, we would like you to be able to explain about Lien Protocol and answer the questions from the community. We require ambassadors to have deep understanding about finance.

2. That is true! iDOL is just a stable coin borne from our protocol. We might come up with Lien token in the future for different purposes.

Cryptodiffer Community

When will corporations stop being afraid to use blockchain? Do you want to be a leader in the mass distribution of this technology?

Lien Finance Team

No, we are not aiming at adoption for the companies. We are providing our protocol for those who really want decentralized finance.

Cryptodiffer Community

Southeast Asia is a very vibrant market and most projects are competing campaigns here to entice users and grow,  with LIEN PROTOCOL  you see how Southeast Asia is and do you plan to develop & expanding here?

Where does core profit come from? 

How will your team make LIEN PROTOCOL  become a win-win solution for both investors and platform?

Lien Finance Team

We are not looking at any individual region. We are providing the protocol to the entire space.

Cryptodiffer Community

Q1: How to keep motivation to use Lien Finance in the long term? How easy is it to use Lien Finance in currently infrastructure?

Q2: How to earn iDOL?

 

Lien Finance Team

A1: We will attract you for the rest of your life:)

A2: You can use Lien smart contracts to produce iDOL. 

For the relationship between SBT and iDOL, you can read this

https://medium.com/lien-finance/how-we-overcome-the-defects-in-makerdao-part-1-17e6fc9deeed

Cryptodiffer Community

When will the mass adoption of Lien Finance ? How will you plan to dominate market?

Lien Finance Team

Though there are so many questions about mass adoption, but we think the adoption starts from you using our protocol.

As we are now focusing on developing a good platform with elegant mechanism, we wish you would use our protocol. We believe it is most important to maximize the value of the protocol as much as possible. We will concentrate most on providing better service with the better interface or the better platform and you will user our protocol.

We welcome any comments or questions after you use it. As the announcement of beta version will be made very soon. Please check that out!

Cryptodiffer Community

One of the Uniswap’s flaw is a price slippage. How are you going to solve it with FairSwap?

Lien Finance Team

Price slippage is inevitable. This is quite similar to the OTC FX market. In our FairSwap, we dynamically adjust the slippage according to the volatility in the market. This is necessary for sustainable liquidity providers.

Lien Finance Team

Thanks for your arrangement

Cryptodiffer TEAM

Thanks for your time

It was a pleasure to conduct an AMA with Lien !!!

Let’s finish the AMA

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