Lien Finance AMA Recap

Lien Finance AMA Recap

CryptoDiffer team

Hello, everyone!😁

We are glad to meet here 

Lien Finance team

Lien Finance team

Hi everyone!

We are glad to come back again.

CryptoDiffer team

1) Could you tell us a bit about Lien.Finance vision, Fairswap and how is it unique for DeFi ecosystem?

Lien Finance team

The unique point of the Lien Protocol is that it provides the derivative products in a decentralized manner. With the product called LBT, users can leverage their ETH positions by buying it. This is an European call option and there is no liquidation unlike the one in CEX. 

In addition, users can technically create original derivative products by tranching the product as users like. Last but not the least, the stablecoin can be produced from the product called SBT as this is deep in the money covered-call position. 

Also, FairSwap is also unique in the way that it has the front running prevention.

CryptoDiffer team

2) What are the different ways Lien holders can participate in the ecosystem products?

Lien Finance team

Lien holders can receive discounts through the collected fees from the Lien Protocol and FairSwap like dividends. Users can receive discounts on a pro-rata basis (according to the amount of LIEN users hold). We would like holders to trade using FairSwap and hold the derivative product created in the Lien Protocol according to your risk appetite.

Users do not need to hold Lien tokens to trade on our platform.  In our protocol, there are SBT and LBT which are European type call options with different features. You can buy these tokens and other products which will be coming up in very near future.

CryptoDiffer team

3) Can you tell us about your upcoming roadmap and what achievements are you really excited about?

Lien Finance team

Well, as some of you may have known already, we are now trying to come up with the Lien protocol version 2.0. Though it may take a while until we reach to the version2.0, we will continuously deliver something new to users. To start with, we are going to relaunch FairSwap with the lower fee. It can be used as a IDO launchpad and users can trade tokens without worrying about front running. 

Also for the next step, we are going to provide varieties of derivative products. We are working on creating put options as we only provide call options. 

Also, for people who cannot trade when there is almost no volatility, we are also considering provide volatility tokens which is an option which you can receive more when there is a small volatility.

Last not the least, we are now working on creating options with BTC and other major crypto currencies. 

We believe that we are going to provide something new in every month.

CryptoDiffer team

Awesome, a lot of updates to come out!

Thank you for great answers!

I think it is time to start community questions round!

Cryptodiffer Community

– How can Anyone Customize the LBT? What Platform you guys have Made for this to Let the Transaction happen?

– Lien protocol regularly holds an auction for SBT, a token that backs up the value of a stable coin implemented in the protocol, making the auction process a vital part of the protocol. How is it different from MakerDao protocol?

Lien Finance team

– Though we have not prepared the front end for tranching ETH, the protocol enables users to tranche ETH to make options. We first started to provide SBT and LBT.

However, by tranching in a different way, we will provide other options.

Cryptodiffer Community

With the Lien Protocol, users can create, trade and use stablecoins and options created from ETH without worrying about counterparty risks. This means that users can customize the LBT. How do you provide the market for selling LBT and the necessary liquidity?

Lien Finance team

This is a nice question! In our current LBT-Lite, you can buy/sell LBT at the theoretical price derived from black-Scholes formula. With this technique, the depth of the liquidity is not necessary for trading without a huge spread.

Cryptodiffer Community

-With $LBT, I can amplify my gains when price of ETH goes up. What happens when ETH goes down?  How can I hedge my funds to protect my risk exposure?

-Why did you raise address limit from 10LBT to 50LBT? What new features were added to cause the raise?

Lien Finance team

– When ETH goes down, you would receive less ETH. As LBT is always created together with SBT, SBT holders receive more ETH when ETH goes down. Currently, we only provide LBT which we only provide the part of features in our protocol.

– The reason why we limit the amount of LBT is for security reasons. Since we had a bug, we haven’t got audited by code auditors though we fixed a bug. Since we confirmed that the protocol was working without any problem, we changed the limit from 10 to 50.

Cryptodiffer Community

What is LBT token? Can I sell or transfer them? Am I correct in your understanding that you are shaping a new market for Ethereum-backed options?

Lien Finance team

Yes for all questions! You can buy/sell LBT at anytime if it is not out of stock. As of now, only Lien team is the option creator, so it gets sold out in some attractive market condition. In a near future, users can also participate in the market as an option seller just like we do now, and the market will have more liquidity!

Cryptodiffer Community

How does Lien solve the scaling problem? And how will Lien overcome the threat of centralization?

Lien Finance team

We are working on L2 implementation for tackling with scaling problem. However, as the technology is still under development, we are trying our best to minimize the gas cost on L1 implementation on LBT-Lite market and the coming new features.

Cryptodiffer Community

What advantage does LBT have over options on traditional trading platforms? What’s the difference between LBT Lite and original LBT?

Lien Finance team

As we had a vulnerability in the code, we relaunched a new version of LBT with some restrictions in functions. After a re-audit is finalized, LBT-Lite will be fully functioning version.

Cryptodiffer Community

What are your major goals to achieve in the next 3-4 years? What are your plans to expand and gain more adoption? How do Lien elevate crypto participants’ understanding about project?

Lien Finance team

Our aim is to provide derivative products to users more freely. By providing many derivative products and options in a decentralized manner, users can enjoy having some exposures in crypto world. 

Also, if it becomes normal to have options, there will be the stablecoin backed by those risk positions of users. 

That is truly decentralized stablecoin and it will benefit people who believe in crypto.

Cryptodiffer Community

Are there limits to financial theory and innovation for LienFinance? Will the goals for LienFinance be sufficient after a certain success and stability is achieved, or are your goals always endless in the industry? How focused are you on improvement?

Lien Finance team

Originally we focused more on stable coin than option market, but as we see a lot of demand for option market those days, we slightly pivot to focusing on the usability as an option market. Our current goal is just an oversight which we can imagine at this moment. Therefore, as long as our curiosity in the crypto space sustains, Lien protocol will be more sophisticated, and we our team are sure that our endeavors will last forever!

Cryptodiffer Community

2020 is the year of Defi and Farming, so does LIEN predict 2021 to be the trend of options and derivatives? And what is the strategy for LIEN to be the leader?

Lien Finance team

We don’t predict anything. However, we believe that it is meaningful to provide varieties of options and derivatives to meet different demands from different users. 

Our strategy is very simple to provide good products in a decentralized manner with a creative way.

Cryptodiffer Community

How is call options executed? Will options be priced in stablecoin or ETH? How will you prevent disadvantages such as delayed transactions and high gas from being part of your project?

Lien Finance team

The call option is executed at the price of chainlink ETH-USD price. The profit is calculated in dollar basis, but paid out in equivalent value of ETH at the settlement price. In order to minimize the gas cost, we are doing our best to minimize the frequency to write value on the state when we implement solidity contract.

Cryptodiffer Community

What is the most main use case of Lien Finance?

Lien Finance team

The main use case is to buy derivative products, but we also believe that there are people who would like to hold stablecoin backed by stable derivative products.

Cryptodiffer Community

What is your long-term vision about the industry which #you are working on? Are you afraid some day there will be another project with more innovative technology can replace #your project? Because we can see many crypto projects related with this concept recently.

Lien Finance team

We would like to be No.1 derivative provider in the DEX world by making many kinds of derivatives including derivative backed stablecoin.

We are not afraid of new technologies, rather we expect on them. We are confident that our project is very unique and creative, if there are other good projects, we are willing to cooperate with those people.

Cryptodiffer Community

How can  Lien Finance generate liquidity in a deflationary economic system?

What is the difference of  Lien Finance ‘s services to other projects who are same concept?

Lien Finance team

The main advantage to competitors like Hegic and Opyn is that users do not have to exercise before maturity. If you have in-the-money position in Hegic or Opyn, your have to exercise before maturity, or your right to receive profit would expire. This is a huge advantage if we want to expand the demand beyond the professional-traders.  We believe Those usability will solve the liquidity problem in the long run.

Cryptodiffer Community

Are you planning to increase your leverage when trading LBT up to X10 – 50? Any plans of implementing time-lock contract soon?

Lien Finance team

Hi, we already provide some LBTs which have 10x-50x leverage. It is just a matter how you tranche ETH. Of course we provide anything as long as there are demands.

Cryptodiffer Community

Considering that there is not team or Governance, How do you keep updated the project?

Lien Finance team

The basic concept of the call option was invented a half century ago. However, the most liquid option market is the traditional call option market. We are creating a market that sustains decades without any further modification.

Cryptodiffer Community

1. iDOL stable coin tokenomics are unique but where can one use this stable coin at the moment and where is it heading in the future?

2. Why there is no governance ? How will new updates be implemented ?

Lien Finance team

1. As there was a vulnerabilities in our protocol, we stopped a feature to create iDOL. We will restart creating stablecoin from our protocol when we come up with the Lien Protocol ver2.0. 

2. The governance is meaning less as most of projects only ask users to vote but majority of tokens are held by developers. It is more valuable to have a product which cannot be controlled by anyone as we believe in a decentralized world. We would like to make something decentralized and if the stablecoin is made from that protocol. It is better than anyother crypto-backed stablecoin.

Cryptodiffer Community

What are the major changes that brings on lien protocol version 2.0 ? How will the new version 2.0 will help users and investors?

Lien Finance team

In Lien 2.0, we focus on UI/UX in order to attract not only professional traders but also newbies. Even in the traditional option market, it is hard to say it is easy to use. Here, we are sure that we can create a platform that can provide a new experience of Financial Creativity to all!

Lien Finance team

Thanks for great questions!

We guess we answered enough:)

Cryptodiffer TEAM

Thank you everyone who took part today!! Appreciate all the interest!

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