Community AMA
Lendefi AMA session With Scotts of The lendefi.finance community
October 2, 2021 13:00 UTC

Project Competitors and New Users

Q: Do you believe in this project and why should people invest in this?
A: It’s simple. We would not be involved in this project if we didn’t believe in it. As a team we see decentralization as the future of not only finance but society itself. It is the only path to true democracy and liberation.
Q: Why should we use Lendefi instead of other lending platforms?
A: You should use Lendefi because it is going in the direction of complete decentralization, which in the long term will reduce risk significantly. Most other platforms are largely centralized if you dig deep enough.
Q: Many new projects made a good impression at first but were suddenly abandoned. My question is, how will you manage the project and token to gain a place in the market and become the best token in the blockchain world?
A: We have been running this project for 10 months and have not abandoned it. And not intending to do so. We will become a well known token once we have acquired a substantial user base and can prove we are worthy.
Q: What is the plan to attract people to use the Lendefi trading platform?
A: Our plan to attract people is by educating and providing incentives such as farming and attractive interest rates and rewards.
Q: You will lend your funds after mainnet, I guess, to make application work in the beginning phase. But how will you show people that THEY should lend? How to attract people's attention to lending?
A: The project will lend some funds, but it’s important for the project to mainly allocate funds for the development and marketing of the protocol itself. As a decentralized project, it must organically attract lenders.
Q: How do you develop this project so that it becomes bigger and covers other countries and even the whole world, so that they know about this project? And what about the language they use because not many people can speak multilingual. And for beginners or people who just know about crypto and participate, but they don't know anything about this, how do you get them to understand this project? and what strategies will you make to make this project a favorite?
A: The protocol is available globally, however, we do intend to implement multilingual at some point. Which would also mean we would need to engage in region specific marketing campaigns. For new users, we will need to emphasize educational content.
Q: How will you succeed in getting users while there are big DEX exchanges like dYdX which offer leverage up to 25 and many pairs with big liquidity?
A: This is going to be an on-going process. Rome wasn’t built in a day. I think our USP direction should be towards full stack decentralization, which in turn will foster sustainability and trust.
Q: Binance Smart Chain (BSC) is trending right now. Is S-wallet interested or is there a plan to enter the world of BSC?
A: We are already focusing on BSC. Q: As you know Covid-19 has a large impact in the crypto Market, So How can your company maintain its project and also the team that are working hard during this pandemic?
A: We are a group of individuals living across the globe. There has not been any direct impact to Lendefi team members due to Covid-19.
Q: Whenever a company is in the early phase of a startup, there are many challenges that the organization has to overcome. Being able to solve challenges is a major determining factor towards success. What challenges do you recognize?
A: This isn’t a company, this isn’t a business. Lendefi is a DeFi Protocol. The biggest challenge is the upcoming attempt at bringing in regulations.
This will be overcome by an unstoppable full stack decentralized solution, operated in an autonomous fashion.

Contract and Token

Q: What happened to Lendefi old, I have both of the coins????
A: Lendefi Old has been upgraded with the current Lendefi token. Lendefi Old is completely decommissioned and worthless.
Q: Has the smart contract been audited?
A: Yes the smart contracts have been audited and the audit will be released with the Mainnet. Q: Is there a minimum number to the circulating supply, or put differently, is there a maximum to the burn?
A: No, burning will keep occurring as per trading activity due to reflection and also manual burning by the DAO.

LP, Staking and Rewards

Q: Who is providing liquidity for the platform?
A: Lendefi is a decentralized platform, therefore liquidity will mostly be provided in a decentralized fashion. Lenders will be incentivized to do so by a combination of receiving interest and by staking iTokens in order to receive further rewards in the form of Lendefi.
Q: Will there be the possible options to do staking and farming in future?
A: Yes we will be introducing staking of Lendefi, Lendefi/BNB LP and farming of iTokens. Q: What about NFTs, are you thinking of creating some?
A: We are researching NFT staking rewards. Q: Will lendifi be burned and will there be a staking pool for lendifi/BNB to get bnb.
A: Lendefi is continuously burnt during trading activity due to the reflection nature of the token. There is already an LP for Lendefi/BNB on PancakeSwap. But soon we will also have farming features which will reward users for staking their Lendefi/BNB LP Tokens.
Q: As we know, liquidity pools suffer from impermanent loss. The yields and multipliers offer value for providing liquidity, but is there a way to protect against, or offer some sort of bonus compensation for, the potential for impermanent loss incurred by large price swings?
A: One solution may be to stake the LP tokens in the future farming feature in order to mitigate against impermanent loss.

Security and Risks

Q: Will you have some “security funds”, so if you get hacked, then you are able to fully/partially refund users' losses.
A: Yes, we intend to have an insurance fund for circumstances such as this. But the fund can only cover so much. Ideally there is no hack, but if there is, it must be a small one.
Q: How are you going to manage Lendefi when something surprising happens in the future, like a hack, etc? What processes are in place to prevent this from happening?? And what are the responses/potential actions of the Lendefi team?? Thank you
A: In the scenario where a hack or exploit occurs, we will immediately start engaging with security exports (which are done on an on-going basis). From there we will follow a set procedure.
Q: Hacking is a process that is now seen in defi projects. What is Lendefi's view on it?
A: Security is an on-going issue in space, hence we have engaged with security experts. Q: Is there any safety mechanism to prevent overminting (to prevent any foul play/hacks)?
A: We are using a multisig wallet to strengthen the ownership of the protocol and token contracts.
Q: What are the most problematic obstacles, which, u think, are/will be the most difficult to solve?
A: The biggest obstacles will be user acquisition and security. User acquisition we are addressing via developing a farming and referral system. Security we are addressing by consulting with blockchain security experts.

Investors, Partners and Community

Q: Can you tell me more about the coop with Reef Finance. What are you doing together?
A: Previously we had hired a developer to work solely on supporting Reef Chain (“RC”). Given at the time there was no active swap and liquidity on RC, we started by forking and combining components of Uniswap and Polkaswap on RC. During this process we sought ecosystem support in the form of a grant to continue development work. The grant application was submitted in early June, but has yet to be approved. Once the grant is approved we will re-commence development on RC.
Q: How do you plan to raise awareness of Lendefi and gain more investors? A: Awareness will be gained by producing and distributing more educational content about decentralized lending, borrowing and leveraged trading, especially via social channels and through future partnerships.
More investors will be organically attracted to the project once it forms a user base. Furthermore, crypto specific marketing campaigns are necessary, however, timing is very important in this regard as the cost of resources compared to other industries is significantly higher.
Q: Is there a plan to attract the attention of any BIG investors? If yes - then how?
A: We feel big investors will only enter once we are more established and have a mainnet product. Up until then big investors will just consider the project as vapourware. We have mentioned before, all roads lead to the mainnet.
Q: In the long run, why should we trust and follow you and your project? How do you raise awareness and elimination of the doubts of investors / partners / customers?
A: The answer goes back to full stack decentralization and for the project to not be controlled by a central party. This is an on-going process which we are working on.
Q: Seems the community is not so active, 50 people out of 15k. Do you have a plan to raise community activity and how? Let’s exclude airdrops from this question, as it does not work.
A: The community will become more active as we attract more users to the protocol itself and also through marketing campaigns to attract new token holders.
Q: Are there new partnerships/partnership discussions? If yes - tell partner names, if u can.
A: There are no confirmed partnerships, but we are in talks with Chainlink and BSC. We also intend to open up discussions with PancakeSwap after the mainnet release.
Q: Are you searching for other partnerships?
A: We are always searching for partnerships, however, we only look for relevant ones rather than just doing partnerships for marketing and hype purposes.
Q: What is your situation in terms of integrating with other chains? Roadmap says it will be completed in Q3.
A: We are researching integration with other chains including Solana, Reef and Ethereum. The existing roadmap is out of date and will be updated shortly.
Q: I want to support your project. Tell us more about the Ambassador Program and in what ways can we participate?
A: We have suspended the Ambassador program for the time being and while building out the Protocol referral system. We believe the referral will be a more effective program to drive adoption, so we may not resume the Ambassador program.

Listings on DEX/CEX

Q: Market/Exchange and why? ‘
A: PancakeSwap for the time being as it has the most liquidity on the BSC network. Q: Why is Lendefi not yet CEX listed? When can we expect the first CEX listing?
A: Lendefi is not CEX listed because it underwent a token upgrade, so the listing process has been delayed. We are putting together the necessary requirements in order to gain a CEX listing. However, we will not list on an exchange that is not reputable and does not carry genuine volume. To be in a position to list at a reputable CEX that would benefit the community, we need to increase token awareness and volume first. Q: Why isn't the new Lendefi volatile at all, why can't we trade it anywhere yet? Volume are extremely low. Can we get information on new exchange listings?
A: Perhaps it is not volatile because there are many holders due to reflection. Lendefi can be traded on PancakeSwap. Please stay tuned to our announcements channel for updates.
Q: Will syrup pool be the only volume increase tool? Maybe you have multiple ideas to share except syrup.
A: Syrup Pool is good for increasing DEX volume and creating awareness via whitelisting. But most importantly, Syrup Pool is necessary as a pathway to a Binance listing these days. Moreover, any CEX wants to see volume and Syrup Pool is a known method of creating consistent volume.
Q: In my opinion we definitely need New Exchange listings Like gateio. Hotbit CEX or kucoin. Are you talking with them?
A: We are speaking with all of the exchanges you mentioned. In our opinion the only exchanges worth listing at are Binance, Kucoin and Gate. The other top exchanges are largely US based and don’t list many tokens. We consult with professional market makers that provide us advice around which exchanges actually have real volume.

Mainnet, Roadmap and Whitepaper?

Q: When can we expect to go live?
A: We can expect to go live in the coming weeks. The mainnet deployment is essentially complete (but kept private). The main aspect left now is the documentation and final testing of the deployment before it can be handed over to a maintenance and tech support service provider.
Q: Any update on a new roadmap and white-paper? There was talk of them being published last Sunday, September 19th, but did not happen (sounded like team wanted more certainty with timeline estimates/goals before publishing). If roadmap and white-paper are proving to be challenging to get to a "releasable" or publishable state, can they be reduced in size/scope to create a more interactive approach to updating these (and other similar) publications from Lendefi for more frequent and regular updates?
A: Our main concern is providing a realistic timeline and have been consulting with our development team about this. Regardless we will publish the whitepaper soon and if dates cannot be finalised then we’ll publish with TBA. So yes, I agree with your approach.

Marketing

Q: When will you start « strong » marketing?
A: Stronger marketing will kick off after the mainnet release and kick into full swing in the months of November and December. We have already booked and paid for a few high end marketing campaigns. Note this will be based on market conditions, if the market conditions are poor, we will pull back the marketing plans until the conditions improve. Q: First of all, wait for the mainnet. What kind of marketing do you intend to do when it comes to mainnet?
A: We intend to conduct marketing campaigns focusing on content delivered by social channels, as well as crypto marketers.

SEC vs DAO

Q: What are the possibilities to « bypass » SEC in case of legal issues about lending?
A: Full stack decentralization is necessary to combat any legal issues. In that we mean decentralized computing, domain, governance and network relays.
Q: If DAO is on BSC, are you sure binance could not stop it?‌‌
A: As per our understanding Binance cannot shutdown the Lendefi DAO.
Q: There is more and more news regarding regulation of crypto/DeFi (at least within the US). Xavier addressed this topic a bit this past week on TG, and sounds like a fully-decentralized platform, from top to bottom, is key as well as community driven DAO. How does the platform stand currently regarding its architecture and decentralization? Are the two related at all? If so, what elements are currently in a good position (i.e. decentralized) and what elements need to be addressed?
A: The platform is very much ready to be implemented in a decentralized manner. The frontend can be deployed to ICP and the backend to StackOS. Blockchain relays can be switched to Pocket Network. Furthermore, we have already registered an ENS domain which can be viewed on Brave and Opera.
Q: Admins said you can see the team at Linkedin. But the team is not complete, why?
A: Given the regulatory issues we are witnessing right across the DeFi space. We have been given strict legal advice to not emphasis on the team. We are lucky to have Scott as the CEO and public face of Lendefi, however, he bears a significant risk in doing so. In the long term the consensus amongst blockchain legal experts is that for projects to survive long term they must become completely community driven, have no legal entity and no public facing team. In other words, decentralized technologies must become decentralized in all aspects. Q: Any concerns with the recent news about China clamping down on mining and now foreign exchanges operating within the country?
A: No concerns. Our direction is full stack decentralization, so eventually even Chinese users will be able to access Lendefi through decentralized means. Furthermore this regulation push will push Chinese users into the DEX trading space.
Q: What development trends of the industry do you think will be shown in 2021?
A: Full stack decentralization, unstoppable tech!
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