AMA with our partners DuckDAO, on Monday the 12th of October
On Monday the 12th of October, the DuckDAO community welcomed us to their community for an AMA.
DuckDAO is a DeFi fundraising platform that champions everyday crypto investors by keeping the funding process community focused. The DuckDAO approach at fundraising is extremely advantageous to projects due to the fact projects get a well-established base of supporters (Ducks) rather than a single VC entity who demands extremely cheap prices in exchange for their support. The VC model simply places too much burden on both startups and the investor and may pose a flurry of risks down the line.
Equally as attractive as its funding model is DuckDAO’s history in the crypto space. As a four-year veteran, DuckDAO has helped fund over 400 projects in the space including recently hyped projects of Geeq, Mantra DAO, and Bondly. Through DuckDAO, projects get connections to a myriad of marketing services making sure promising projects get the exposure they need to succeed. These are the attributes that made DuckDAO our first choice for a fundraising partner.
Participants:
YFDAI — Olivia — Founder
YFDAI — Rocky — Founder
YFDAI — Phil — Project Advisor
DuckDAO — Limmy — DuckDAO community representative
Please note that the following summary has been edited for clarity.
Limmy
Good evening/morning/afternoon all! Welcome to yet another DuckDao AMA. Our special guests this session are Olivia, Rocky and Phil from YFDAI!
On behalf of everyone here at DuckDAO, welcome :)
Phil
Great to be here Limmy, thanks for having us
Olivia
Hi I am Olivia, I am the Founder and CEO of YFDAI. I also have qualifications in C, C++, JAVA, Python, Oracle and I’ve been an avid fan of blockchain and trader of cryptocurrencies since 2016.
Rocky
Hi I’m Rocky, Lead Dev of the project. My core skills are — Solidity, Web3 TronWeb, JavaScript, MongoDB, ExpressJS, ReactJS Node.JS React Native, HTML5, CSS3, Distributed Ledger Technology , Ethereum and TRON DAPPs , Authentication systems and Real Time Web Apps. I have been involved in crypto since 2017 and have a passion to try and bring safety and security to the space.
Phil
I’m the advisor to YFDAI Limmy, My Background is marketing, I have been providing marketing and advisory services in the industry for many years and have also helped Ken and Lukas with the marketing arm for the Foundry.
Limmy
We understand that at this current point in time, you’ve chosen to remain anonymous for regulatory concerns, so thank you for sharing. Looking forward to getting to know you when the time comes for you to reveal yourselves!
Phil
Yes not long to wait now!
Limmy
The question we want to start with is one in regards to the partnership.
In the medium statement, the two main aspects of the YFDAI and DuckDAO partnership are the use of SafeSwap as one of the approved exchange partners, and the leveraging of DuckDAO resources for the LaunchPad.
Those two points are a pretty natural progression for the business models for both projects, but you also mention the exploration of further ways to work together — are you in a position to provide some examples of what this may be?
Olivia
The Partnership with DuckDao is certainly beneficial for both projects, this is not a partnership just for the sake of it. DuckDAO are recognised as the number one decentralised fundraising group in the space, with a reputation that precedes them.
For our LaunchPad projects we provide the tech/smart contracts for the projects to be set up safely and wanted a trusted partner for the fundraising, for us there was only one choice. This in turn will bring increased deal flow to the Ducks of projects where they do not need to consider if they will exit scam, they just need to consider if the project has a good enough business model to compete and succeed.
Adding SafeSwap into the partnership provides the deal flow in reverse with other top quality projects identified by Duck that meet our criteria moving onto the SafeSwap Exchange. It’s a win win for both projects.
But DuckDAO is more than just a fundraising arm, as I’m sure everyone can see they are evolving quickly to give great value to their DAO members. The DLP token for example is a great idea to bring decentralisation to market making, and this is a service that we will be offering to our Launchpad projects as well, again for far too long this type of service has existed in the shadows, with poor performance and high costs being commonplace, we see the Market Making offer via the DLP token bringing great value not just to the investors of DLP but the the space in general.
We also know that the Duck Team is looking into advanced farming methods that align with our views that farming is finished in its current format and that farming 2.0 is going to take over. By this I mean ensuring that returns are paid from income and that they are regenerating for sustained longevity and not just a means of distribution/inflation.
We are keen to work with DuckDAO on any aspect we can see adds value to both parties and discussion with regards to cross farming will be happening soon. I hope i’m not in breach of NDA now Limmy 😂😂
Limmy
Thank you very much for the kind words! I know that each of our current members is keen for this partnership, especially with the long term strategy of YFDAI. We’re all in here for the long term and whilst it is fun and games to farm madly for food coins for a weekend, something with a bit more planning is going to be welcome for sure
The questions that we’ve gathered from our community today focus on YFDAI itself, and will let us get to know you and your project a little better. We will be opening up the chat at the end for people to throw their specific partnership questions at you if that’s ok :)
The defi space is already becoming quite saturated, with a number of projects offering a similar suite of products and services to what you have proposed.
What are the differentiating traits of YFDAI that will lead an investor to believe that they can sustain the business model in the long term , after the present ‘phase ‘ of defi crypto projects has passed?
Phil
Very Saturated — only the best will survive as always
Rocky
We have a long term vision for the DeFi space with multiple revenue streams being able to sustain the staking and farming Dapps. Our soon to be finished detailed white paper will explain it all in great detail. We have already forged partnerships with industry leaders in financing and marketing and blockchain analysis — Duckdao, ferrum, dextools and others.
Our vetting process and token lock ups with audited contracts minimizes risks of fraud and rug pulls. But to answer in one sentence- I would say the biggest difference is our economic model, which is based on true income. Within the next 14 days, we will be releasing details of a very important advancement which will set us apart from all other projects… watch this space.
Limmy
We do have another question about the revenue model a bit later on so we’ll come back to this one
Trustswap seemed to have been making the same promises as you guys but we saw what happened with the HATCH rug pull. What makes your process of due diligence different from that of Trustswap, and how will you avoid similar outcomes for your user base?
The “how do you compare to xyz” questions are very popular so we’re giving you some chance to practice with us haha
Phil
It’s a good question as well
I see Olivia is typing so will let her take this one
Limmy
Getting to know your competition and constantly adapting is also key, along with being able to critically analyse the other players in the space.
Olivia
Yfdai locks up both dev and liquidity tokens as well as advisor and marketing tokens in audited smart contracts. The other key requirement is no mint functions in the contract. Unfortunately with Trustswap these levels of locks-ups were never in place.
We actually do thorough vetting not just on dev token lock-ups like Trustswap. To launch on launchpad and SafeSwap, a startup project must follow our stringent requirements that include comprehensive token lock ups and contract audits. They must also pass our legal analysis and feasibility study.
Limmy
That’s a pretty key difference.
This does flow nicely into the next question too:
How will the team evaluate projects to be listed on your launchpad? As mentioned just now, this space is full of rug pulls, and not all of them are obvious cases of degenerate chicken.
How tight is your platform security, and what goes into the audit process for these projects to protect investors — especially YFDAI users?
Rocky
YFDAI cuts no corners when it comes to security and audit processes. We put all startups through the same protocols that we followed to ensure the most safe and secure user interactions. We look at all aspects of the fundamentals of any token offering including experience of the devs, white paper content, website, smart contracts, economics, fair launch, no private sale /presale.
Our partners also do their own analysis to determine whether to fund a new project and incubate it.
Limmy
That’s good to know — projects will have a lot of eyes on them from the likes of yourselves and the partnerships you alluded to above so users should feel safe and confident when using your platform :)
Phil
The key is in the tech — but the added checks take it one step further — far too many scam projects currently
Rocky
Yes this our first priority 😊
Limmy
Your 72% APY sounds more sustainable than most other staking models. Can you guarantee that the percentages won’t go much lower or will remain the same? How long can this be sustained for?
Phil
The 72% is a fixed rate that will not be changed. We only have a lock period of 72hrs so it is very flexible compared to many. There is an allocation made to keep this running for 2–3 years however when the whitepaper is released you will see that all of our services create an income.
Incomes are always paid in the YF-DAI token which is taken from the circulating supply and part used to regenerate the staking and farming pools. A proportion of all income is also burnt. This ensures we are sustainable and also still provides a deflationary tokens supply.
Our sustainable return and flexible access is why it’s been so accepted with over 60% of the circulating supply already staked since inception.
Limmy
This is talking about income for users, and not the project’s revenue stream correct? (which I believe you said the details of which are still to be fleshed out in a later announcement)
Phil
Yes — so many systems fail as they are just distributing tokens which increases the supply, which pushes down the price of the token. It’s key with systems like this for there to be a balance, so we have fees from services, which are paid in YF-DAI, buyers of the services market buy these which takes back from circulating supply- some are burnt and some are redistributed to the pools. Lots more detail on this will come in the whitepaper very soon Limmy
Limmy
Looking forward to it
A big problem for a lot of Defi projects seems to be that when farming starts, the price goes down because people unload to put liquidity into the farm. Will there be an incentive to hold and not just farm and dump?
Rocky
Great question, the reason why most project tokens suffer a decline after farming starts is purely due to the fact that there are no basic economics used. If you do not have an income, how can you give rewards?
The reality is that for many projects Farming is just a new term for token distribution and therefore inflation. The way the YFDAI farming is set up is very different. We see it as Farming 2.0 where rewards are given from total supply, but services are then paid in the YF-DAI token, which comes from the circulating supply, part of these fees or income are then used to burn and to regenerate the farming and staking pools.
Also there will be many reasons that people will not want to unstake to liquidate, we cannot say too much yet as this has not been released but long term Staker and Farmers will receive lots of benefits to hold, these will be released in the Whitepaper hopefully by the end of this week.
Also we are maintaining all code publicly for each of our contracts. We see lots of projects hide their contract code with a Proxy so people aren’t able to know what’s behind it.
Limmy
Ahh ok — so the model is cyclical. The inflation is counteracted through some of the mechanisms you will be applying — cool!
Phil
Exactly — and some other things… but again, we don’t want to spoil it as whitepaper coming 😁
Limmy
Haha ok ok
Having a launchpad offering on your platform is an interesting concept but what makes it unique from others? What is the benefit over a project simply listing on Uniswap?
Phil
The benefits for a project are that it will be an instant seal of approval. Launchpad ensures that liquidity is locked long term, that all team, advisor and marketing token are locked, that there is no mint function in the contract and that it is all audited. Blockchain Consilium will be completing the audits, as they have done for YFDAI. Many projects that need to be Anon will see this as providing a level of trust with their communities.
The Key is that once a project goes through the LaunchPad all of this is done via YFDAI tech and taken out of the project’s hands. Once done, they then get listed on SafeSwap and can advertise that they have passed our strict criteria. We have already had many applications by projects who want to launch and instantly be verified as not being able to exit scam or rug pull.
Limmy
Sound solid — basically a way to help users of your platform do their due diligence
Actually it might be dangerous to have that blanket statement haha — make sure you all still do DD on everything folks!
Phil
Yes — although just part of it, users still need to DD on viability of the long term success, use case etc etc.
Limmy
Of course
Ok so our next question was How does YFDAI generate revenue? I think you’ve already covered that in mentioning an announcement that is coming up sometime this week so we’ll move onto the next one.
Phil
We can answer here a bit — looks like olivia is taking it
Limmy
Ok great — a sneak peak!
Olivia
This is a hard question to answer today, we have a large announcement coming this week that will mean that our list of services offered will be growing, and they are income producing to allow revenue for YF-DAI but also revenue to regenerate our staking and farming pools.
But from the already known services SafeSwap will create an income from trading fees, which are 50% lower than Uniswap, we will also have listing fees. Launchpad projects using our tech will also pay fees in YF-DAI. The full whitepaper will be out by the end of this week and all income will be detailed.
Limmy
Can you please talk about the choice to have such a low total supply of tokens in the context of yield farming/Defi? What are the pros and cons of this particular tokenomic model?
Rocky
The token supply is limited and deflationary due to the burn functions. The Y-DAI token extends 18 decimal places so just like 1/1000 of a bitcoin is known as 1 satoshi you can similarly divide up YF-DAI tokens.
Limmy
With such a low supply, how does this affect long term sustainability? What happens after 3 years?
Phil
Instead of having billions of tokens we chose to have 21000 which makes each individual token carry a higher price. We believe psychologically the higher price reflects the higher value of YF-DAI to the users. No new tokens can ever be minted so the total number will only decrease now and after 3 years. But don’t worry, we won’t run out 😂
Limmy
Haha
In regards to the SafeSwap and LaunchPad services — one of the major flaws from uniswap (and ETH in general) are high gas fees, and sometimes stuck transactions due to network congestion. Does your solution aim to solve/alleviate these issues?
Olivia
Not at present, we are looking into several options currently however we are firm believers that ETH 2.0 will solve this issue. Our fees are 50% cheaper than Uniswap however so trading on SafeSwap will always be more cost effective. But for many the key gains will be down to minimising losses. Our Partners Dextools often report on daily rug pulls, a few days ago there were 34 different projects in just 2 hrs that exit scammed. On SafeSwap this simply won’t happen saving all users from this risk.
Limmy
!!! 34!!
Phil
Yes in 2hrs — its crazy when you look at the stats
Limmy
That’s pretty frightening…
We originally had a question here about team anonymity and whether or not you were going to reveal yourselves but the latest update answers this one pretty comprehensively.
Instead, maybe we can talk about the broader picture — do you think that projects with anonymous founders have a future in this space or will all projects need to ensure that they follow suit?
Phil
Each project will have to decide on whether to be anon based on their legal advisors recommendation. While YFdai has decided to become non-anon we realize this may not be the way some projects and their advisors wish to proceed until the regulations become more certain in all jurisdictions.
With the amount of fraudulent projects exit scamming every day, retail buyers are starting to demand more- but for many projects there are legitimate reasons to be non anon due to the grey areas with regards to what can and cannot be done. I think this is another plus point for SafeSwap and Launchpad, retail buyers will feel far more comfortable with an Anon team knowing they have passed our strict criteria.
Limmy
So in theory does this mean that an anon team can still pass the audit?
Phil
Potentially yes. Projects via launchpad need to meet our criteria, which is mainly around making sure liquidity is locked, not needed tokens are in time release smart contracts with monthly releases, there are no mint functions and the code is good and audited. There are some other checks as already mentioned but there are some great projects that have no choice to be Anon depending on their location. — So it’s the tech and locking of tokens and liquidity which is key here.
Limmy
Right, makes sense!
Over the past months we have seen many yield farming projects that are just clones or copies with a few changes to Yam or sushiswap. What is your plan to attract liquidity from the mainstream yield farms that have launched to date?
Rocky
Yfdai’s business model includes a one stop shop for all your DeFi needs, farming is just one small part of what we do. . Our yield farming 2.0 will attract customers looking for long term sustainable passive income rather than high risk short term gains. We also have a very large marketing budget as we understand that this is a vital component.
Limmy
Will we see a renbtc pool available on day one? 😁
Olivia
Our first farming pool info will be released soon, then moving forwards governance will have a say in new pools 😊
Limmy
Ok cool! Final question before we open it up:
What is the long term/end goal of YFDAI? Is the plan to capture the market share of say, Uniswap? Perhaps a better way to phrase this is what place do you see YFDAI occupying in the crypto Defi space long term?
Phil
YFDAI seeks to set a new standard in the DeFi community. A standard where the security of the investor is paramount and a place where legit projects can thrive while the weeds wither. We hope to earn the community’s trust and provide real DeFi products and services along with full insurance on wallets and users funds to enable us to become the most safe, secure DeFi platform in the crypto sphere.
Uniswap are number one at present and have first mover advantage, but I think people are ready for change and SafeSwap can at lease take a significant share, but our aims are higher 😁 We are also big believers that people are now moving away from centralised exchanges, so the future potential of Dex volume is huge
Limmy
Ohh Insurance — that’s probably something people would like to dig a bit deeper on haha.
Ok we’ll now open the chat for those that have any further questions they wish to ask Olivia, Rocky and Phil.
🐥
What’s the marketing plan for the next 3 months? YouTube influencers coming soon?
Phil
There will be a large marketing plan — but far more than just influencers — we will also be concentrating heavily on digital advertising and also content creation and distribution to name a few
🐥
Investors are now evaluating projects for a short period of time and trying to make a profit in the short term. IEOs & DEFI are one of the short-term investment tools for the last 2 years. So what makes YFDAI valuable for the long term ?
Phil
big question — with lots of answers, but in short, deflationary supply, income producing via a wide range of services and also huge upside, the market cap is just 1.7 million
🐥
How secure is the website and the hosted platform? Was there an independent security check carried out? If not, would it be possible to get it done?
Phil
Blockchain Consilium has produced the audits — certificate and full audit report can be found on the website and in the YFDAI announcement channel.
Rocky
If website goes down you can stake farm unstake all the things from our smart contract also
🐥
How YFDAI is a community centric innovative DeFi project developed by the people, for the people?
Phil
Going forwards Governance will come into play — so there will be votes for things like new farming pools etc.
Limmy
Ok fantastic!
Well, on behalf of our community here, thank you for your time today!
Phil
It’s been our pleasure, great questions and as always a great host. Thank you for having us. If there are more questions the team is always available in the YFDAI telegram chat.
DuckDao Details:
Telegram Channel: https://t.me/joinchat/It2yDE3QPPTw9JLLMHLXKA
Website :https://duckdao.io/
Twitter :https://twitter.com/dao_duck
Medium: https://medium.com/@duckdao
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