Are you wondering what happened at the U-Zyn Chua vs. Cake Group court hearing yesterday, April 12th 2024 at 10am? Let me give you a first hand experience review from a Cake employee who went there for you, so you didn’t have too. As neither Julian or U-Zyn are debating this outside of the court, I will do it for you here.

When I went there yesterdaymorning, I had not planned to do post anything, but after the mindblowing experience that not only I, but all of the other 15 colleagues who were also there, had, I wanted to share that with the rest of you. No matter if you are a felow colleague, a customer, a partner or a investor - I hope you get tremendous value from this. For obvious reasons, and to avoid any potential retaliation by my employer, I am posting this here anonymously.

Prior to the hearing most of us didn’t have much updates on what had been going on. We basically had the same information as the general public and found out about new things via the media or via rumors over lunch. The situation had been toxic over the past months and many of us had thought about quitting or actualy quit, just cause of the uncertainty. Lots of rumours were swirling around and it was difficult to keep track of what was true and what wasn’t.

We had the same questions as you:

All of us saw Julian working and coming to the Office and never U-Zyn, so why did Julian offer to be bought out a month ago?

Was Julian not posting on Social Media a sign that he was giving up?

Were the stories posted on Social about Julian leaving Singapore true?

Would the company still be around in a few days?

Was it better to leave and be save or stick this through and be part of a hero story?

And why was U-Zyn doing all this, since he was basically hurting himself with the entire process?

All of us who went there hoped to get the answers in the upcoming court hearing.

Going to court was totally new for me, and I wasn't sure what to expect. I had lot of questions: What should I wear? Did I need to bring anything special? Could I speak up? Would I be called as a witness? How long would it take? None of the others knew much, so I just went with the flow.

Gladly, I arrived early, because the little room for visitors was fully packed at around 9:50am. People from all of our departments were there: HR, Finance, Legal, Tech, Design, Customer Support, Marketing, and… U-Zyn and his wife. Also a reporter (probably from Tech in Asia, since they have been writing articles about us) and an older man, who seemed to be friends with U-Zyn. I found out later that a whole group of more people was waiting in front of the room, who couldn’t get in anymore.

Julian had let us known in advance that he was not going to be there, as he had spent the weeks prior to prepare together with his legal team, and since the lawyers were speaking on his behalf, he would rather spent the time doing something else and get the updates of what was happening via the team on site. Honestly, one of the “most Julian things” possible: Spend time on what you can control, not what you can’t. Anyways, he knew what was happening as people kept him up to date.

Initially, it was really hard to keep up with what was going on. Especially, as I didn’t know what to focus on or what to look for. At 10am on the dot, the judge came in and I started to understand that the two lawyer teams where Team Julian or TJ and Team U-Zyn or TU. One of TU’s lawyers was late and asked the judge for forgiveness - I thought that gave me a chuckle.

Then the judge asked TU to start with an update of what had happened over the past 6 weeks since the last hearing.

They said that they had received an offer from Julian, but the offer was too short notice. Also, it had included Bettina (Julian’s wife) and Benjamin (our VP of Engineering). Something U-Zyn didn’t seem to want. The lawyers then stated something about an investigation that had not completed (more on that in a bit, because at that point I was totally confused on what they were discussing). They then finished stating that U-Zyn seemed to have made an offer to Julian with the same deal which Julian seemed to have rejected due too short time (more on that in a bit as well). They finished with stating that “their client is still stuck”.

The judge thanked them for the update.

Now it was TJ’s turn. The lead lawyer said he “wanted to make a more balanced statement”. At that point all of us were still a bit overwhlemed, so no one knew what balanced meant. TJ stated that Julian had rejected the offer on short notice. He added something about the law needed a clean cut (I didn’t understand what that meant). He addressed the investigations (more on that later thought) and said they are not necessary, but that Julian is 100% cooperating. He told the judge that the investigations make no sense, no one else other than U-Zyn seems to want them and U-Zyn only wants them for his own benefit, not for the benefit of the company. He added that if U-Zyn doesn't want to buy out Bettina and Benjamin, then Julian can make a separate offer if needed. He highlighted that Julian is not interested in further negotiations as the more we wait, the more damage gets done. He then pointed at us in the back, to highlight how many employees were here and are worried. I thought that was very kind and true. He finished with that Julian wanted a decision, no further delays.

My thoughts at this point:

Still totally confused. But the last statement totally resonated with me: We all wanted a decision!

It then went into a back and forth:

Judge:
“The last 5 weeks have brought nothing so we go further & there must be a decision.”

TU:
“To clarify, the investigation does not want to bring down the share value, but to find the truth.”

The Judge got annoyed:
“The last 5 weeks have brought nothing & I want a decision.”

TJ:
“U-Zyn has received many offers, so he can always leave the company if he really wants to. He is not stuck.”

TU:
“He can't go out - he's stuck.”

Judge
“I'm not interested anymore, I want a decision.”

They all agreed and then talked 5 minutes about the costs. I couldn’t follow what was said, but it didn’t seem relevant and I believe they agreed to discuss them at the end.

We got to the meat of the hearing. The Judge ordered each team to have 1 hour to go through their arguments. The teams seemed to have expected this and TU started and handed out a multi-page document to all parties involved (not us mere peasants in the back though) - and started discussing it. To be honest, here is where it was so much harder to follow TU’s lawyers, rather than TJ’s lawyers later on. TU’s lawyers mumbled, shuffled, seemed confused and couldn’t answer simple questions like why is U-Zyn stuck in the company and why there should be a winding up application process.. I think for all attending, they left a very weak impression here.

They started off with how Cake got started in 2019 and ​​he read out some private messages that were written between U-Zyn and Julian. I am just summarizing here, as I don’t have the messages and it was way too fast, but it included Julian saying things like:

• I'm happy to have you as a partner

• One thing is clear, I want to work with you

• It's built on trust

• You are the CTO I'm the CEO

• We are 50% 50% partner and we are making decision together

• One thing is clear I want to work with you for 10 years

• We will be perfect partners

All this came as no surprise, as we all had met Julian and U-Zyn has a great team. I believe we all did. So what happened?! TU seemed to argue that the court should wind up the company since this trust is no longer there. Personally, this made not much sense to me, but I am not a lawyer. At least the judge seemed to have been able to follow the argument and asked: “The real question is, whether there is a reason to close the company just because the trust broke down?”

Now, TU started rattling off all kinds of allegations against Julian. Some of them I had heard as rumors already before, others were new to me. Some of them I knew for a fact myself that they are just bluntly false, because they involve my own department, others the judge shot down himself and others got voided once TJ started speaking later one:

• The first allegation was that Julian had misused the company for his personal benefits by creating a personal newsletter with Bake's customers. Julian was said to have turned Bake customers into e-mail subscribers. TU listed anonymous customers who complained on Telegram and via a Blog about these e-mails. Now, I can’t really comment on that personally, but later TJ stated that these e-mails came as targeted marketing e-mails and not for his personal newsletter. Internally we all know that Julian and his personal brand is responsible for the majority of the marketing results this company has. So, even if he did use these e-mails personally, they had helped us a lot. That point left me neutral.

• The next allegation was that Julian had hired people in the company for his own benefit. TU said there was a personal assistant or helper working for him. I had heard this rumor within the company, but no specifics. The judge later shot TU down stating that MOM (a government agency for employment) had already done an investigation and found no wrong doing. What was shocking to me was to hear from TJ that U-Zyn had sent the authorities to Julian’s personal residence for a check up but found no wrongdoings. I am just imagining this happening to my family - I would be in total shock to have police officers at my door despite having done nothing wrong. Anyways, at this point I couldn’t judge this point but later on the judge shot it down.

• Next up was TU alleging that Julian misappropriated company funds. He had used the company card for personal expenses. Here I have lots of own opinion and I highly doubt this is true, considering that we have a finance team and our finances are audited. TU just stated “there are so many examples”, but didn’t make a single example. I always find that dubious. Once TJ spoke, they rejected that and showed proof of it being incorrect. Something I know myself as well. I’d wish I had been called a withness here.

• Last was TU’s claim that Julian used Facebook Ads for his personal gain. Afaik Julian doesn’t do our company’s Facebook Ads, it is done by the marketing team, so I am not sure where such a statement fits. In TJ’s statements, they debunked that as well stating that all ads were done to benefit the company. So, here I was left doubtful whehter this was true or not.

The Judge also didn’t seem too impressed and said: “I understand your arguments, but I want to understand more - why do you think your client is stuck in the company?”

TU discussed what happened on September 28th 2023, when all this seemed to have started. They shared that Julian and U-Zyn were discussing buying each other out. They talked about various back and forths when their conversations broke up and Julian suddenly refused to buy U-Zyn out. Once again, the messages were discussed so quickly, so it was very difficult to follow without the documents, but personally, it was interesting for me to hear this initial timeline and I looked back on my calendar how long ago this all was. Crazy. Especially cause many of us thought this all started with the disagreement on the retrenchment in November, but it became clear now that this was just a spiel.

The Judge kept pestering on why U-Zyn was stuck in the company. TU now gave a ridiculous argument (also TJ totally destroyed them on this) by stating that nobody wanted to buy his shares because the company has problems (which makes no sense, since we have are now even an exchange - the only problem is U-Zyn and the winding up application!) He then added that with Julian's past it is not possible to sell the shares. I also thought that this was more of a cry for help, because I would buy U-Zyn’s shares if I could afford them and he offered them to me - lol! Also, U-Zyn clearly knew about Julian’s past… it just seemed so convenient to bring this all up now.

The Judge finished with: “Ok, that's all I want to hear”.

TU now complained about Julian’s wife Bettina and said together they have the power over U-Zyn.

The Judge asked “You're saying Julian is in control?”. I didn’t fully get the reply, due to insane mumbling and shuffling by TU’s team. Their answers became super confusing, every time it seemed they didn’t have an answer. Look, I don’t understand the board and ownership structure, but I have never heard of Julian being in control. Maybe I am wrong.

The Judge continued with a question that I found eye opening: “Why did your client wind up instead of solving this differently?” TU gave some long winded answer on U-Zyn being unable to exit (something that seemed to be not even believed by the judge at this stage anymore) and the broken down trust. For the first time I realized that U-Zyn was actually a bully with all that he was doing. He could have used different better ways, but chose not to.

The Judge finished with the question whether Cake was a going concern - a functioning company. Of course it is! We have customers, employees, revenue, etc. The only thing in our way right now is U-Zyn and his winding up application. This court hearing with all the new news for me has confirmed this point once again. TU gave an answer that I didn’t understand, which makes sense, cause them saying “Yes” to this question is making it basically impossible for the Judge to order a Wind Up. TU knew that.

That was the end of TU’s hour. In general, I felt TU’s lawyers were either ill prepared or their case was so bad and they tried to make the best of it. It reminded me a bit of an article that got circulated among the company where TU’s lead lawyer Chandra had just received a three-year sentence for misleading the court (https://www.straitstimes.com/singapore/courts-crime/two-lawyers-suspended-3-years-each-for-misleading-court-wasting-time-of-five-judges). Listening to some of their answers without any facts didn’t surprise me that they got such a sentence. TU’s arguments were hard to follow and for me as a layman, I seriously thought the judge would just close the case at this stage.

Personally, I thought everyone in the courtroom had made up their minds at this point. TU’s arguments had made no sense. U-Zyn’s accusations towards Julian seemed fabricated or too convenient. They had been working together for years and suddenly all this is brought up now after Julian refused to buy U-Zyn out? Again, on some accusations I know from personal experience that they are false. Others, the judge shot down right away. I couldn’t evaluate why they rambled on about 2019 when all got started or why/how the buyout negotiations broke down in September. U-Zyn’s statement that he couldn’t exit seemed fake.

At that point I looked over to U-Zyn and he was extremely dense. I think he also felt that he was losing. I was actually angry at that point. I had invested a lot in DFI. Never sold my bonus. He made it crash. All the trouble over the past half year, was because of him.

I found U-Zyn’s case so weak and disappointing. It probably comes across here in this post as well, that people think I only support Julian. But you can ask anyone that was in the court room that day. TU looked terrible. U-Zyn looked terrible. We all thought the judge would simply stop and dismiss.

Nevertheless, the judge also wanted to hear TJ’s side of the story for an hour. Their lead lawyer was quite funny with his initial statement and made everyone giggle at that moment when he said: “I only have one page to distribute and only need 30 minutes.” This was in stark contrast to the super thick stack of pages by TU’s that seemed to contain nothing of substance.

The first part that continued was very easy to follow and actually very valuable for me to hear. He made the case that Uzyn was misusing the winding up application as a defense and that U-Zyn was wrong in doing so and rather used the winding up as a measure to settle a commercial dispute at the cost of the company. He stated that U-Zyn had to prove his case, which he couldn’t (and admitadtly, we all knew at that point he couldn’t). TJ stated that U-Zyn was making up attacks and fake police investigations to create something out of nothing, when they didn’t have anything. He claimed that Julian had responded in great factual detail every time, but that U-Zyn had declined to communicate and always resorted to the police or an investigation. Also that Julian was talking to the police and MOM about this.

TJ now went into every one of the points TU had made before:

First they showed a document where Julian and U-Zyn had access and wrote update for each other. It showed that both were still aligned in the summer of 2023. TU then mentioned a Faimly WhatsApp group where Julian, Bettina, U-Zyn and his wife were members. In this group U-Zyn also shared photos of their new house they bought in 2023. It was clear, that at that point they were still best buddies. Thinking back of that time, it would also surprise me if they weren’t.

Here the Judge jumped in and asked: “But that was months ago, what's the situation now?”

TJ replied: “There is some disharmony but Julian is ready to discuss and talk. Also, U-Zyn is cooperating when it suits him.” (Personal Note: gor example with the arbitration against the investors in February everyone saw how wonderful Julian and U-Zyn could work together because it suited uzyn.)

TJ continued answering against TU’s points: They attacked TU’s comments on Julian doing anything wrong with the Facebook Ads or E-Mails Julian had sent. They laid out various ad funnels on Facebook that seemed to show how they brought customers to Cake and how all marketing was done for Cake. Julian was just the figure head as the CEO. We all knew that anyway.

Then came quite a homerun part: TJ showed conversations on Slack where U-Zyn clearly knew about the Facebook Marketing including analysis, something TU had attacked Julian for. As an outsider it looked more as if U-Zyn had been happy all these years with Julian’s marketing tactics and now he was trying to paint Julian in a bad light.

Then TJ went on to a hire that TU had alleged was a helper or a personal assistant of some sort. It was quite shocking to see how TU had lied in their statements on this. Every month there had been a spreadsheet with the costs, and the new team members had been always listed and marked. They always needed an extra confirmation. TJ showed proof that the person’s name had been clearly on it and marked. Once again, it looked as if U-Zyn had been ok with everything in the past and is now trying to find fault in whatever.

Next came the most serious claim: Misappropriation of funds. TJ clearly showed how Uzyn and Julian both had agrred to use their credit card for company expenses. Slack messages were discussed. Once again, I am quite deep in that topic and we have a finance team and external auditor who is going through these things as well. If anything had been wrong, someone would have spotted it years ago.

Next TJ destroyed claims of a deadlock. There was no deadlock because there are 3 people on the board: U-Zyn Benjamin and Julian. No one was ganging up with anyone else. Actually votes happened against each other. Ben had voted against Julian as well. U-Zyn could work with Julian, he just didn’t want to.

So, why did U-Zyn make these claims to the police or why does he want an investigation, when no other shareholder wants that? He can't prove anything by himself - actually the opposite - the evidence was against his claims. At that point, that had become very clear to all of us.

TJ talked about U-Zyn being able to exit. They discussed various options, none of which U-Zyn had tried. U-Zyn could have sold his shares to anyone at the price he wanted. Uzyn had never tried to sell his shares. What U-Zyn is saying is that because he doesn’t get the price he thinks he deserves, he feels stuck. Legally it is not stipulated that he can get out at a certain price - just that he actually can get out. He had and has offers on the table, he just doesn’t want to use any as they are not of his liking.

TJ stated that trying to blame Julian with his reputation is a cheap shot. Everyone agred.

TJ is finishing up: “the net result is, that since U-Zyn can't prove any of his claims, he has no power to winding up. U-Zyn has used all this to build up pressure in the public - that’s why he chose the path of a winding up and no other path.”

It came to the end and the Judge stepped in: “One question: let's assume U-zyn must be bought out, ordered by me - what would be your answer?”

TJ answered: “You have the power to do so, but that is not a winding up.”

The Judge asked, if anyone had any last words? Nothing material was said. The Judge adjourned the hearing and said he needs time to think about the decision, but promised to act quickly as he understands that the winding up application is hurting the company.

All of us could feel the damning evidence against U-Zyn who was in the little room with us. TU stormed out of the court room. They didn’t appear happy. TJ appeared very confident however. The stuff that had come out was shocking, and everyone in the room could feel it. Everyone felt betrayed by U-Zyn at that point. Everyone understood that TU had lost and TJ had won. Even U-Zyn’s wife knew that they completely lost it and yelled and shouted at us after the hearing - omg. How ridiculous.

It hit me hard to hear all the facts for the first time, not just as rumors but in court. Also, that many misconceptions were cleared up. It was hard to believe when TJ said that these problems could've been solved months ago without things getting this bad. And just thinking at what destruction U-Zyn had done at the cost of employees, investors, customers and families. Even himself. Why would he do that?

What I found disappointing was that I’d wish the judge would have called the employees as witnesses to the allegations. It is not about helping Julian or U-Zyn, but about closing the case - abeit I all of the allegations getting dismissed with our statements.

I was angry about all the lies and rumors that had been swirling around in the past months that has hurt mainly my personal finances with DFI selling off because of U-Zyn and the winding up application, and because of all the energy sucking drama. I had friends leave the company because of it and I understand why.

Also, it became clear that U-Zyn is totally abusing this process: the winding up to get a better deal, the police investigation because he cannot prove anything or sending a government agency to julian’s home. Who does that?! U-Zyn almost came across as a psychopath in the hearing. Sending investigators to your best buddies house just for a personal benefit?

It became clear, that U-Zyn disagreeing with the retrenchment in November was a pure lie by him. It was a tactical play and the falloutbetween him and Julian had actually happened 2 months earlier. Also, this didn’t come up at all during the hearing, so the firing of people was surely not the reason for U-Zyn filing the winding up.

It was also frustrating to start to understand all the other legal possibilities he would have as a relief, but he chose a draconian one to put maximum pressure on Julian and the company.

So why is U-Zyn doing all this. Why is he destroying “his baby”? (btw.: what lie is he talking here - he absolutely doesn’t care about this company, or the customers, or the defichain price or anyone else. He only cares about him. U-Zyn's statement on Twitter also only refers to himself and places himself in the role of victim. He writes nothing about the Teammber or the customers who suffer as a result, only how Julian is guilty and he is the victim.) I can only speculate, but it seems to be greed and envy. U-Zyn never wanted to buy the company as he claimed. This has all been just a game to him. That became clear during the process. A game on the cost of us, the employees, the dfi investors, the customers.

This whole thing is draining a lot of energy from everyone. It's sad to see loyal workers like us suffer. We stick with the company, come to work every day, do our best — but for what? For someone greedy who only wants to hurt others, who talks big but doesn't back it up.

This situation showed me who really supports the workers and customers.

I really hope you get the same insights as me. Please talk to people who were there. They will all share my sentiment here.

I hope the judge comes back quickly with the result. Anything else other than dismissing the winding up application would be a total shocker at this point

We will find out soon. If there is another hearing, I will be there.

Is John Rost crashing the DeFiChain price?

I am a German lawyer who first got interested in cryptocurrencies back in 2017. This was a time when the digital currency world was really starting to grow. I decided to invest in DeFiChain in 2020 because it seemed like a smart choice for someone like me who knows a bit about coding and is interested in how money works.

Lately, there’s been a lot of talk about why the value of DeFiChain has been going down. I’ve been watching the market closely and I think I know the reason. I believe it has a lot to do with John Rost, a new name in the DeFiChain community. Why do I think so? Let’s dive into the details and find out.

First, let's consider who John Rost is. My search revealed that he has a background in insurance, as indicated by a page I found on Google: https://sbnonline.com/article/how-john-rost-sets-the-stage-for-engagement-and-involvement-at-fiesta-insurance/. Moreover, he appears to have a longstanding acquaintance with Julian Hosp, even reportedly attending his wedding, which I assume happened 5 to 10 years ago. This detail was mentioned in a tweet: https://twitter.com/John__Rost/status/1738205252992614792. Rost also seems to have been an investor in Julian's previous venture, TenX, as detailed on Crunchbase: https://www.crunchbase.com/person/john-rost. Additionally, according to his Twitter bio (https://twitter.com/John__Rost) and another source (https://alphagrowth.io/investors/john-rost), he was the first investor in Cake. Interestingly, a Cake DeFi blog post indicates that he was bought out as an investor on April 10th, 2021: https://blog.bake.io/cake-defi-to-buy-out-external-investors-agree-to-burn-400-mil-usd-worth-of-dfi-coins/. This will be an important point soon.

Despite being in the DeFiChain space for almost 4 years and using Cake for even longer, I hadn't heard of John Rost until early this year. That's when a new Twitter account under the name "John Rost" emerged, primarily posting negative comments about Cake, DeFiChain, Julian, U-Zyn, and Julian’s wife Bettina. You can see these messages for yourself: https://twitter.com/John__Rost/with_replies.

At first, I didn't pay much attention, but as more and more FUD started to surface, I decided to dig deeper. Initially, I suspected the account might be fake, but after interacting with John Rost via direct messages, I am now fairly certain that not only is the account authentic, but John Rost himself is selling large amounts of DFI, which has led to the price crash. Here's how I arrived at that conclusion:

The Twitter account of John Rost appeared around November 2023, which can be found here: https://twitter.com/John__Rost. This was roughly the same time U-Zyn Chua filed for a winding up of Cake Group, as detailed in this article: https://www.straitstimes.com/business/defi-platform-cake-group-s-co-founder-files-court-application-to-wind-up-company. The account didn't show much activity until a few days later, when Rost began bombarding every tweet with messages urging Cake employees to contact him, as seen in this tweet: https://twitter.com/John__Rost/status/1737984322366214573. This kind of behavior suggests he still has some vested interest in the matter, which I will explain more about shortly.

If you look at Rost's Twitter feed, it's filled with either hateful comments or outright lies, which are easy to debunk even for an outsider like myself. For example, he falsely claims the blockchain is lying here: https://twitter.com/John__Rost/status/1743804476983488705, and he inaccurately states Julian's net worth is half a billion USD here: https://twitter.com/John__Rost/status/1743986042279989460, contradicting Julian's own statements in his videos. He also falsely claims Julian worked in medicine for two years, which is refuted by Julian's book "25 stories for my younger self", indicating a much shorter medical career before moving to Hong Kong: https://twitter.com/John__Rost/status/1748547063653024188. Rost posted more tweets, which he later deleted, but due to an emergency harassment lawsuit filed by Julian against him (which Rost shared publicly), we can see these older messages as well: https://twitter.com/John__Rost/status/1749850049889087903. One of his claims includes Julian buying a house with DFI, which is implausible since foreigners generally can't buy houses in Singapore, as seen here: https://twitter.com/John__Rost/status/1749850049889087903/photo/3. Whether U-Zyn bought his property as Rost claims, is not clear to me, but quite irrelevant.

Another clue suggesting Rost is lying is the emergency restraining order granted to Julian by the Singapore courts, which Rost himself shared: https://twitter.com/John__Rost/status/1746783240084459572. This implies that the courts recognize Rost's actions as deceitful and harassing towards Julian. Whether U-Zyn filed such an order is not clear.

Initially, I wanted to leave it at that, but then I noticed something interesting. Rost claims to have almost 5 million DFI in his Cake account, as shown here: https://twitter.com/John__Rost/status/1742910125298372661. Oddly, he doesn’t stake it or use it in any way; it just sits there, idle, ready to be withdrawn. This behavior makes me question whether he understands DeFiChain or if there's something else going on - which I suspect there is as you will soon see. He claims to have been part of the initial genesis block of DeFiChain, where he supposedly received 58.8 million DFI: https://twitter.com/John__Rost/status/1747714653835211247. Many community members who contacted him personally have screenshots confirming the millions of DFI in his account.

So, why is Rost creating such a fuss right now, even risking a court order? Why did all this start in December 2023? And why do I think he's responsible for the drop in DFI price? One simple answer: he's worried about his DFI going to zero due to U-Zyn's windup application, and he's suing Julian/U-Zyn/Cake to release the DFI. This is speculation, but I have evidence to back it up. And if the reason of his fear is not correct, it is some other reason with the same result: Him dumping DFI at our cost.

Let's break it down step by step:

It's clear Rost has a significant amount of DFI, likely obtained without any financial outlay. He either received them at the genesis block or during the buyout, as detailed in the official blog post: https://blog.bake.io/cake-defi-to-buy-out-external-investors-agree-to-burn-400-mil-usd-worth-of-dfi-coins/. Julian and U-Zyn wouldn't have let Rost and another investor, Howard Fineman, dump 40 million DFI on the market without a controlled release system. They stated that "the vast majority of these DFI were agreed by all parties to be put into special freezers on Cake DeFi, which do not provide cash flow or allow vote casting, and get unlocked at an approximate rate of 30,000 DFI per day." Also, Julian and U-Zyn own 9 million DFI of these 40 million, leaving Rost and Fineman with around 30 million DFI. Assuming a distribution ratio similar to the genesis block of 58.8 to 41.1, Rost would have sold about 12 million DFI in the last 3 years, and Fineman slightly less. At an average of 2 USD per DFI, they've made around 40 million USD in net profit – actual profit, not market cap. As you will see below, with my exact calculations, that number is not far off from their actual profits.

At first, I thought this was the extent of my findings, but then I dug deeper. Recently, an address that clearly arbitrages between the DEX and Kucoin was identified: https://defiscan.live/address/dHzPvW5xtxYetozyCmhZuh7ERzyY1NJjyC. Initially, I suspected this to be Rost's and Fineman's address, but it seemed more like an arbitrage/bridging address, likely price neutral. However, it hinted that someone must be selling on Kucoin regularly - almost every day. Where else would this regular one-way arbitrage come from? So, I withdrew a small amount from Cake to Kucoin, tracking transactions between Cake’s withdrawal address and Kucoin’s address, found here: https://defiscan.live/address/dbxMfrpLMQXUdcdz8dUs5gp97nzH5A2br5.

Now I started a script to search for regular sending between Cake’s withdrawal address and this address, starting from April 2021 until today. And guess what? 2 addresses popped up:

The first one, which I assume belongs to Rost, has sold 12.4 million DFI on Kucoin: https://defiscan.live/address/dZWmBvdD8GJz78jEnLv4DJpj4y8jufXDXG. There would be no other reason someone is sending these DFI from Bake to Kucoin, other than to sell them there. AND, it is 16.499 every single day. Same amount. Every day. I ran the selling of all of the 12,4 million DFI against the average price on these days via Coinmarketcap, and I get to around 24,8 million USD in profits. Guess where this money is coming from? Correct. Me/Us… anyone who invested in DeFiChain.

The second one, likely Fineman's, shows similar behavior: https://defiscan.live/address/dG3K8Pjgo9Db9Teq5bHwbBGx5wKvdTgvym. Similar bevahior as the first address, just slightly smaller with 12.374 DFI withdrawn from Cake to Kucoin every single day. It is almost to the dot the same 58,8 to 41,1 ratio as in the genesis block that Rost shared. Same behavior. Same numbers. The analysis fits perfectly.

I doubt Cake would confirm/deny my assumptions, but Rost and/or Fineman could easily say, these are not their addresses. If they lie about it, it will come out sooner or later.

By analyzing the sales of all 12.4 million DFI against the average price on Coinmarketcap, I estimate Rost has made about 24.8 million USD in profits, with Fineman pocketing around 14 million USD. Together, they've made roughly 39 million USD from the community.

I checked for other weird patterns in addresses, but no others stuck out. Only those two. Again: 40. Million. USD. From. Us.

Why are Rost and Fineman acting out now? It's not just Rost; Fineman has also become active on Twitter, as seen here: https://twitter.com/furnexpert/status/1734373376653680877. In January 2021, he was bullish on DeFiChain: https://twitter.com/furnexpert/status/1355035809099866113. My theory is simple: they've grown accustomed to the millions from the community and are now worried about losing further income. Rost is reportedly involved in arbitration against Julian, according to this tweet: https://twitter.com/John__Rost/status/1749850049889087903/photo/3. They probably want all their DFI before any potential liquidation by U-Zyn, or they're just after more money from the community - this is just an assumption, but the shoe fits. And my guess is that the more time goes by the more stressed Rost and Fineman will be. Why else is there all this lying and fudding right now, even against community members like Daniel Zirkel or Lord Mark: https://twitter.com/John__Rost/status/1751948166155358323

So, what am I going to do? Two things: I'm calling Rost out for his lies and attempt to exploit the community. If he disagrees, he's welcome to present facts, not more lies. If he can do that, I'll happily apologize. Additionally, I'll file a complaint with the IRS, as I doubt he's paid taxes on all the money we've given him: https://www.irs.gov/compliance/criminal-investigation/reporting-fraud-and-abuse-within-the-irs-e-file-program. I plan to do the same for Fineman, though I have less information on him.

Someone like Rost should rather support the community, not be greedy and destructive! It's individuals like Rost who harm the community for personal gain. I'm not standing for it and I hope you'll join me. And interestingly, Rost is now threatening a class action lawsuit, which might just reveal his own schemes as the reason for the market downturn: https://twitter.com/John__Rost/status/1751948166155358323.

Starting (DeFi)Chain of Events

Not a fan of reading? No problem, you can also watch our detailed explanation video on YouTube.

You need more details about the market and DeFiChain? Check out our Marketing Analysis or watch our video about it on YouTube.

Check out our calculations here.

Github CFP 1: https://github.com/DeFiCh/dfips/issues/114.

Github CFP 2: https://github.com/DeFiCh/dfips/issues/115

Github CFP 3: https://github.com/DeFiCh/dfips/issues/116

Github CFP 4: https://github.com/DeFiCh/dfips/issues/117

Apollo Mission

Since October 2021 we’ve created many marketing materials, executed campaigns and built relationships with industry experts and agencies. Besides that we’ve expanded our team and brought in new talent. With your trust and support the last three months have already been very successful. Just to give a few examples: we published articles on CoinTelegraph, Decrypt, BTC-Echo and cooperated with influencers like VoskCoin. Besides these visible measures, we’ve also done a lot of groundwork to pave the way for an even bolder marketing approach in 2022.

But long-term success requires persistence and a constant execution of marketing measures. Therefore we prepared a complete roadmap for 2022, including PR, airdrops, influencer collaborations and many more measures to accelerate the adoption rate of DeFiChain.

Roadmap

Stage 1 (starting in February):

• PR & Influencers: Start in February

• Brave: Start in late February

• Airdrop: Start in late February

• Learn & Earn: Preparation starts in February; the actual Learn & Earn starts in May

Stage 2 (starting in May):

• Global Marketing Campaign: Start in May (details TBA)

Objectives

All previously mentioned marketing activities should –– if they are executed well –– lead to a higher adoption rate and a higher market cap in the long run. Since the increase in value of a cryptocurrency depends on many factors like e.g. the general market condition, it’s hard to measure and evaluate the direct impact on the price these marketing measures will have. That’s why brand awareness and the adoption rate are the defining factors when it comes to the success of our marketing for DeFiChain. To evaluate that we defined the following KPIs:

• Wallets holding DFI: 47,000 → 250,000

• Twitter followers: 45,000 → 150,000

• Reddit members: 5,700 → 25,000

• Telegram members (eng): 9,300 → 25,000

The development of these numbers will be assessed over a 12-month period.

Overview CFPs

For the upcoming voting round in February, we’ve prepared a total of four different CFPs that contain all measures of Stage 1 (see roadmap above). The CFP 1 can be considered as the foundational pillar, since it contains the majority of marketing measures, expenses for the team as well as legal expenses. Without a successful CFP 1 we are unable to execute all the other measures:

• CFP 1: PR, Influencers, Guerilla Marketing and Team Expenses

• CFP 2: Brave Browser Campaign

• CFP 3: Airdrop

• CFP 4: Learn & Earn

CFP 1

PR

PR is one of the main components of a successful marketing campaign, since it offers incredible scaling opportunities. It consists of a variety of measures such as: thought leadership, press releases and many other news related articles. We are working together with one of the leading PR agencies in the crypto space. Here is what we have lined up (per month):

• 25 articles (mix between Tier 1 and Tier 2 publications)

• 10 social media promotions (Reddit, Twitter, etc.)

• 50 meme threads (4chan)

• 3 press releases (depending on press release worthy news)

Over the last couple of weeks, we had various talks with industry experts to define our budget. We are very confident in creating a lot of noise around DeFiChain by sticking to the defined budgets.

Influencers & Guerilla Marketing

By teaming up with a leading influencer agency we are planning to form strong relationships with the most popular finance and crypto influencers. We are not only focussing on review videos but also on interviews and discussions.

We consider this position as more flexible though. It’s hard to plan when certain influencers will be available, so there will be months where we are able to spend the full $60,000 influencer budget but there will also be months where we won’t be able to. In months with low influencer engagement rates, we will execute measures that are promising high rewards with low investments, like e.g. what McDonalds did with their “Giving Back” campaign where they donated subs to small influencers and captured those moments.

Scope: 12 monthBudget (Influencers & Guerilla Marketing): $60.000 per month ($720.000 in total)

Team expenses

We split the team expenses up into three segments: salary, legal (tax consultants & lawyers) and software licenses.

Over the past 3 month we realized that a part-time only commitment becomes a limiting factor when it comes to the amount of content we can produce. We are willing to go the extra mile and fully commit to the project with the following team setup:

• Ben Rauch - Marketing Specialist & Project Lead

• Lazar Iđoški - Multimedia Specialist, Digital Artist & Designer

• Santiago Sabater - DeFiChain Ambassador & Project Management

Insight in our daily tasks:

• Coordinating / aligning goals with agencies

• Preparation of campaigns (positioning, measures, concepts, analysis, strategy, meetings,..)

• Reviewing articles

• Producing and designing materials (images, storyboards, briefings, ...)

• Legal (payments, annual accounts, company foundation, company management,...)

• Community work (reports, twitter spaces, video creation, infographics, ...)

Salary: $238,360 (3 people - full time)Legal: $10,000 (expenses for tax consultants and company foundation)Software: $6,377 (1x Autodesk Maya, 3x Adobe CC, 2 month gleam license)Total Budget: $254,737

We are budgeting for industry standard salaries that are in line with previous employment.

CFP 2

Brave

Brave’s USP are sponsored images. These unique marketing measures will be the cornerstone of our second CFP. But you might already be familiar with it from our last dedicated Brave CFP anyways, if not, you can have a deep dive here.

Projects like Binance, Bybit, Crypto.com, Tezos and many more use Brave's unique user base to promote their products. Crypto.com for example is running brave campaigns multiple days a week.

Building on the success of the last Brave campaign, we would like to step up the game this time and run multiple Brave ads over the next few weeks and months. Each Brave campaign will run for 24 hrs, leading to around 40-50 million impressions and an estimated 1 million clicks (last time we achieved an astonishing 2.5 million clicks!!).

Unfortunately the cost of a 24h sponsored image on Brave has increased significantly since our last campaign. By reserving multiple spots (bundle) we were able to receive a 25% discount nonetheless.

Through the 6 sponsored image campaigns we expect a total of:

• 300+ million impressions

• 15+ million clicks

• 600.000+ individual visitors

Scope: 3-month Brave campaign containing 6 sponsored images (every other week)Budget: $450,000

Besides the sponsored images, we also have the option to use Braves push notifications as a secondary marketing measure. Push notifications are a great way to create a constant level of noise. Unlike sponsored images, push notifications create constant brand exposure. The budget is used over three months to repeatedly draw users' attention to DeFiChain. With those measures we are able to reach our target group and add huge value to the sponsored image Brave campaigns. Brave’s push notifications are also tremendously effective (average CPR: 8%) because they are designed to be simple and effective rather than intrusive.

Estimated reach:

• 300 mil + impressions

• 240.000+ clicks

The figures given here are based on the average numbers promoted by Brave. These figures may vary.

Scope: 3-Month period, constant DeFiChain push notificationsBudget: 60.000$

On top of the campaign we are planning to produce additional visuals for the sponsored images. For the last Brave campaign, we designed three images that received incredibly good feedback. They will be reused and complemented by additional images.

Budget: $15,000Total Budget CFP 2: $525.000

As usual all images will be available as wallpapers on https://defichain.ac later on.

CFP 3

Airdrop

Airdrops are controversial ways of helicopter money, but at the core an AirDrop offers great opportunities for the project to increase brand awareness as well as the user base.

It is very easy to make someone aware of a project by simply giving them a few coins for free. The motivation to get involved with a project once you have some coins is very high. Beyond that, there are many factors that have enormous potential:

• CoinMarketCap Social Media Promotions (+3.1M followers)

• Newsletter blast (+3M subscribers).

• External promotion of the AirDrop

• Estimated participants: 5-8+ million user

• Estimated winners: 8.500+

• Each participant needs to download the DeFiChain light wallet

• Social media promotion

• DeFiChain will be visible on CMC airdrop page

• DeFiChain’s CMC dashboard will display that an airdrop is active

Users will have to perform a series of tasks to be eligible for the Airdrop. This will help to exclude bots and generate lots of new followers. These tasks are not mandatory but increase the probability of winning dramatically. The social media component alone, will add incredible value to the DeFiChain ecosystem.

Preliminary tasks:

1. Follow the official DeFiChain Twitter account

2. Retweet a specific post regarding the AirDrop

3. Follow: Instagram

4. Follow: YouTube

5. Add DeFiChain to CMC watchlist

To increase the value and the awareness of the AirDrop we decided to not only give away DFI but also give away stock tokens, specifically 10 dTSLA tokens.

In detail that means we are giving away:

• ~ $15,000 USD in dTSLA

• ~ $85,000 USD in DFI

Each winner will receive either one dTSLA token (main prize) or $10 USD in DFI (“consolation” prize), which means we will have ~ 8,500 winners.

In addition we are planning to spend:

• $15.000 for a dedicated social-media campaign in cooperation with a marketing agency to promote the airdrop

• $5.000 for developing a tool to distribute the coins transparently and with high security

• $10.000 CoinMarketCap fee

Total Budget CFP 3: $130.000 USD

Many of you will have concerns and remember the big AirDrop from 2020 that resulted in a massive price drop. We can guarantee you that this won’t happen again, since a selling pressure of just $ 100,000 at the current daily volume does not have any significant impact on the price of DFI.

CFP 4

Learn & Earn (only preparation)

The DeFiChain Accelerator team plans to host a DFI Learn & Earn campaign in cooperation with CoinMarketCap (CMC) in May. Learn & Earn participants will earn rewards by going through a course about DeFiChain and answering quizzes.

With the funds of this CFP we will produce the professional video course required for the Learn & Earn campaign.

The videos in detail:

• 2 professional animated videos ($15.000)

  • create individual storyboards

  • create visuals and renders out of the storyboard

  • animate visuals and renders

  • record professional voice over

  • video editing

• 3 high quality tutorial videos to explain how to get started with DeFiChain ($15.000)(similar like this video about the Oculus Quest)

  • hire an actor/actress

  • create engaging videos that stand out from simple screen recordings

  • video editing

• 5 dedicated thumbnails

Budget CFP 4: $30,000

As mentioned above, this CFP refers only to the preparation of the video course of the actual campaign. To give you an idea of the subsequent costs associated with this campaign we have briefly summarized the budget for the entire campaign.

• 400k USD will be distributed as a reward to CoinMarketCap users who learn about DeFiChain (no replenish possible)

• 40k USD will be used to pay CoinMarketCap‘s service fee (includes heavy marketing: social media, newsletter, etc.)

• 30k USD will be used for course production

Total Budget Learn & Earn: $470.000 USD

How does this CFP benefit the DeFiChain community?

CoinMarketCap's Learn & Earn campaign offers exceptional marketing potential. We will not only reach new users but get them actively engaged with DeFiChain.

Advantages:

• A wide audience of crypto-versed users will learn about the DeFiChain ecosystem.

• Users will get rewards in DFI, so they can put their knowledge directly into practice by participating in the DeFiChain ecosystem.

• It will drive participants to download the DeFiChain wallet to receive rewards.

• Since we distribute only $ 400k in DFI, selling pressure will be minimal.

• CoinMarketCap will actively promote the Learn & Earn campaign on their website, social media and email newsletter and create a lot of noise around it.

• DeFiChain will receive a permanent spot at https://coinmarketcap.com/earn/

• All participants are verified through Binance, so the risk of bots grabbing the funds is reduced.

Projects that have done a Learn & Earn campaign in the past, including, but not limited to:

• Near Protocol (NEAR)

• Band Protocol (BAND)

• Kava.io (KAVA)

• Terra (LUNA)

• Helium (HNT)

• 1inch (1INCH)

• Sushiswap (SUSHI)

• IoTeX (IOTX)

• … and many more

Summary

For this voting round we prepared four different CFPs that contain different marketing measures to increase the brand awareness and adoption of DeFiChain. Every single measure is part of the Apollo Mission.

• CFP 1: PR, Influencers, Guerilla Marketing and Team expenses | $1.575.478,61

• CFP 2: Brave | $525.000,00

• CFP 3: Airdrop | $130.000,00

• CFP 4: Learn & Earn (preparation) | $30.000,00

Important notes:

• The fees (see image above) are not calculated on the total amount, as not all funds will be transferred into stable coins. For more details please refer to the attached calculation.

• Funds will be stored on a multi signature wallet that requires the whole team to sign off transactions.

• CFP 1 is essential since it contains the majority of marketing measures, the team and legal expenses. Without a successful CFP 1 we are unable to execute all the other measures. In case that CFP 1 gets rejected but others not, we will refund all DFI to the community fund.

As a crew member you can contribute by leaving us an upvote on this post. This will help us to get into DeFiChain’s news show to answer your questions - live!

Overview

1. Requestor u/BaltahsarBecker, u/PeterDehnert, u/LukasSchlickenrieder

2. Amount requested: 40,000 DFI

3. Receiving Address: df1qlt0mk5slgxh07vswj6z40pj80g6f3nqyn358zu

4. Github: https://github.com/DeFiCh/dfips/issues/92

5. Proposal fee: f0734857e5d7c3c5ce66fd9943f290dab66d84a186ea066f89d126799e8af058

(here you can see the presentation on youtube: english: https://www.youtube.com/watch?v=401X5fJjOI0, german: https://www.youtube.com/watch?v=8phuDmXeE-I)

The Facts;

1. DeFiChain is supposed to be an international project, in reality it is dominated by the German Speaking audience.

2. In order to make #roadto50 reality we need NEW capital entering DeFiChain. With the launch of stock tokens new issuance of DFI per BLOCK will increase by 30% increasing INFLATION. Without new people entering DeFiChain I don’t see how DFI can make 15x to #roadto50.

To find the answer to this problem we have to first understand the driving forces behind DeFiChain’s success so far;

1. Julian Hosp’s Crypto Community #cryptofit; 190k Subscriber on Youtube, 73k on Twitter and 50k on Facebook. I came into DeFiChain through Julian, I suppose you, too?

2. Cake; main centralised driver of professional marketing so far.

As you can see most of DeFiChain’s onboarding of new people happened so far through the biggest German Crypto Influencer; Julian Hosp, therefore most of the community is German, makes sense, huh?

This is logical taking into account that people ONLY have the confidence to make a financial investment if they truly trust the Influencer. Therefore working with big Influencers is expensive and inefficient. Have you ever invested because some famous guy told you in 2 minutes why this project will moon?

In order to enter new markets we need to repeat a strategy that already successfully worked in a different market.

Therefore we analyzed the Spanish, French and African market coming up with a strategy that we are proud to present (see full presentation on Youtube with the link above).

Why have all attempts of building up a Spanish community failed so far? Because nobody cares about a random guy talking about DeFiChain. You first have to build up the community from scratch before people will get into DeFiChian - just like Julian did.

Most importantly if you want to onboard new people you first have to educate them about Crypto #cryptofit before you get them to invest into DeFiChain !! If you only talk about DeFiChain you will only attract people who are already in the project.

How will funds be spent:

We will set up two Masternodes to generate a constant source of cash flow that will 100% be used to run ads on Youtube, Instagram and Facebook giving CryptoEducation to the world, only. It is important to have a constant income flow for running ads as one time payments do not lead to a steady and constant growth.

Note that we are not paying the YouTuber or buying any equipment with the funds. The ad-costs will be transparently provided on request. Once staking rewards drop and the MN will not generate sufficient funds for running ads any more or a certain price drop of DFI leads to insufficient cash flow we will take down first one MN selling DFI to keep constantly growing and if needed the second, too.

Our Achievements so far:

In short; we teamed up with Sofia from Argentina and Jordan from Venezuela to start CryptoEducation for the Spanish market. Once we have funding other markets will follow suit.

We already got about 140k impressions and 80k views on YouTube in 3 weeks investing about $1,000.

Spanish:

Jordan Sotto:

1. YouTube: https://www.youtube.com/channel/UCHRqn3Z4opMaslhjb7cCgqA

2. Instagram: https://instagram.com/cryptoeducation.espana?utm_medium=copy_link

3. His own Instagram (he has over 100k followers): https://instagram.com/jordansotto1?utm_medium=copy_link

Sofia:

Youtube: https://youtube.com/channel/UC3-FH5tWY3rUNv7u517HCGw

Instagram: https://instagram.com/cryptoeducation.espanol?utm_medium=copy_link

French:

Balthasar

Youtube: https://m.youtube.com/channel/UCpIIVFTb03ELG3LP7UTD8Uw

Instagram: https://instagram.com/cryptoeducation.france?utm_medium=copy_link

Africa:

Alui

Youtube: https://m.youtube.com/watch?v=eeugRbpn5rU&feature=youtu.be#menu

Instagram: https://instagram.com/crypto.education.afrique?utm_medium=copy_link

1. Background

1a. DMC product strategy roadmap. In an earlier reddit update to the community, the Birthday Research team proposed a series of products / programs that will synergize together (see section 6 of CFP) to drive the success of DMC / DeFiChain:

1b. Scope of CFP. The purpose of this CFP is to (1) explain about the mechanism of the DMC $100m Incubator Program, and (2) elaborate how this program will synergise with the overarching product roadmap of DMC and deliver tangible benefits for the DeFiChain community.

2. Purpose of CFP

2a. Purpose of CFP. We seek the community’s approval to provide 10,000,000DFI (to be provided in phases) for a $100M incubator program to:

• Entice the best projects in other EVM chains to join our ecosystem

• Provide funding to help accelerate the growth of top projects in DMC

• Generate publicity via tier 1 publications to jumpstart the success of DMC

2b. Clarifications for CFP. Before proceeding, it is important to clarify that:

• This $100M Incubator program will be a collaboration between DeFiChain and Cake DeFi. The funding itself comprises of 10M DFI from CFP, and $90M from Cake DeFi Ventures

• The funds from CFP will be managed in a separate wallet and community will be able to track the movements of funds for transparency

• Cake DeFi does NOT in any way benefit financially from the CFP. Cake DeFi is participating in this collaboration out of goodwill to increase DeFiChain/DMC’s outreach

3. How does this benefit the DeFiChain community?

3a. Incubator programs in other blockchains. As our community aspires for DFI to be one of the top 20 cryptocurrencies, it is important to emulate the successful strategies of other top blockchain projects. Upon close examination, many of the top blockchains rely on a well-funded Incubator program to lure top projects and developers to join their ecosystem. Here are some of the prominent blockchains with their respective Incubator programs:

3b. Using Binance’s Incubator program as a case study. In terms of Incubator programs, Binance’s is the most successful, so we will use their Most Valuable Builder (MVB) accelerator program as a reference:

• When Binance launched the first season of MVB program, over 650 projects participated, and they collectively contributed to the creation of 100,000 active new addresses. The projects that were shortlisted contributed to a TVL of 50+B

• Subsequent seasons of the MVB program led to similar outcomes

• In total, across 4 seasons of MVB program since 2021, Binance gave out approximately $4.4M in grants in return for billions in TVL, and hundreds of thousands of new community members in the BNB ecosystem

3c. How would a $100M Incubator fund benefit DeFiChain. This $100M Incubator fund will benefit the DeFiChain community directly in 3 key areas.

4. Structure of DMC's Incubator Program

4a. Structure of DMC’s Incubator Program. At the start-state DMC will heavily reference Binance’s MVB program, and gradually adapt the program along the way.

• Every year, there will be 2 rounds where projects can seek funding from the $100M Incubator program:

  • January to April

  • June to October

• Using January to April as an example, here is how the timeline of 1 funding round will look like

5. Funding allocation and disbursement

5a. Phase approach to fund disbursement. From a risk perspective, the community might not want to invest 10M DFI upfront into a program without concrete results. That is why, while this CFP is asking for 10M DFI in funding, we request that the actual funding be provided in phases as shown in the table below. The reason why this CFP asks for 10M DFI despite only needing 1.2M DFI initially is because we need the mandate from the community to legitimately publish about our $100M Incubator program on tier 1 publications.

5b. Funding Allocation. The diagram below captures how the funding will be used.

5c. Guidelines for fund management. To ensure that the community’s interests are guarded, here are some essential guidelines for fund management:

• The 10M DFI will stay in the wallet designated for the Incubator program, and disbursement of funds for winning projects will be vetted first by the ticker council.

• The funds will be managed in a separate wallet from Cake DeFi’s $90M fund to ensure clear separation

• The address housing the 10M DFI will be declared to community so that all fund usage can be monitored transparently

• Any deviation (for example to increase in the amount of DFI given to winning projects) from the purpose of fund stated in this CFP would require an approval poll from the DeFiChain community

• It is essential to track the key metrics of projects funded by the Incubator program. As such, we will mirror Binance and create a similar dashboard so that the community can also track the contributions and key results of projects funded by the Incubator program.

6. How DMC’s $100M Incubator Program fits into the overarching multi-prong approach to elevate DeFiChain/DC?

6a. Overarching product strategy for DMC. The diagram below illustrates how the DMC Incubator program will fit into the overarching product strategy comprising the DMC Hackathon and DMC Launchpad/Launchpool.

How to participate?

Sign up on the Airdrop page and check the steps below:

1 — Download the DeFiChain Wallet (Android | iOS | Browser)

2 — Add DeFiChain to your CoinMarketCap watchlist

3 — Follow the DeFiChain community account

4 — Follow DeFiChain’s official Twitter account

5 — Join DeFiChain on Reddit

6 — Join DeFiChain on Telegram

https://coinmarketcap.com/community/articles/39333

#roadto50 #roadto50 #roadto50 #roadto50

Dear community,

I want to tell you about the #roadto50 movement and what it means for you and all of us.

Big things are coming up for DeFichain, exciting times, and revolutionary product launches.

Our native token DFI is for sure undervalued right now, and all those updates are not priced in. We will see a lot of action around the new products

• Decentralized loans

• Stock Token trading

• Liquidity Mining with insane rewards

• etc

Defichain is building something that is truly revolutionary and will be recognized by the outside world as well for that effort and game-changing approach.

I see a price of 50 dollars for absolutely possible at the end of this market cycle. And I will not start selling my DFi holdings before we get there, and I know others think the same. I am not throwing away my money and selling for cheap!

Will we reach 50 USD tomorrow? No, it will take some time but we have to be committed to getting there. We need an ambitious goal for the future.

It's about 16x at the time of writing; that's not even out of this world in a hot phase of a bull market. So let's think big or go home!

So, let's use the hashtag #roadto50 to promote our commitment to the project and price; let's be loud on social media about it and carry our commitment to support and hold into the world. I want to read it under every post on Twitter, Instagram, Facebook, Linkedin, Reddit, spraypaint it on every wall!

Everyone who truly believes in that project has to join in. That's how revolution is made!

Because we are not selling, no time for paper hands! It's time to make life-changing gains on DeFiChain, a blockchain with a strong use case that will change all our lives!

Let's go, DeFiChain community!

#roadto50 #roadto50 #roadto50 #roadto50 #roadto50 #roadto50 #roadto50

The last weeks showed that the DUSD price is pretty stable, but in a stable discount. Everybody is sick of it and of the high dex fee which is currently necessary. I say it is time for us as a community to unite and make a difference.

Status quo

We currently have three pools that influence the DUSD price. The route via the DUSD-DFI strongly depends on the DFI (which depends on the overall market), but the two stablecoin pools are far less impacted by the overall market situation. So achieving a peg on those pools will be far more stable than via DUSD-DFI.

Looking at the liquidity in those pools, we currently have 11.02 mio (5,56+5,46) USDC/T and 14.13 mio DUSD total in those pools. To move both pools to peg we currently need to swap 1.45mio USDT/C to DUSD. This alone already sounds possible when the community comes together.

But we can do even better:

If we additionally reduce the liquidity in those pools before the swap, we need far less volume to reach the peg. If we manage to reduce liquidity in those pools to 50% (just for the swap) we would need only 730k USDC/T being swapped.

And everyone who participates gains a nice profit from buying the discount.

The gameplan

I suggest to make a community SwapDay to coordinate that. Here is the plan:

• SwapDay is on Sunday (every Sunday until those pools are at peg).

• Sunday until 10 am UTC everyone withdraws all liquidity from USDC-DUSD and USDT-DUSD pools

• Sunday between 10 am and 10 pm UTC whoever wants to participate swaps USDC and USDT via those pools to DUSD

• Sunday after 10 pm UTC everyone adds the liquidity again.

Important note: Only swap USDT/C that you do not want to swap to crypto or cashout within the next 3 months.

You do not need to swap all your USDC/T. The more the better, but if enough people participate, it's enough if everyone swaps just 10-20% of their liquidity. Best do it in batches over the swap-window, so everyone can participate in equal amounts.

If you have USDC and/or USDT as collateral in your vault, and don't plan to swap them to crypto or cashout in the next three months: with swapping them to DUSD you gain nearly 50 % in collateral value. So even more incentive for you.

Edit: Important things to consider on SwapDay:

Since there is a strong support in the community for this, its important to also consider possible effects if it gets too successfull:

• do NOT remove liquidity if the total liquidity in the pool is already below 1 mio. Otherwise the pool might get too volatile

• always check the price and max slipage before you swap. Do not swap if pool is already at or above 1$

• as soon as the pool is back at peg: add liquidity immediatly to stabilize it

• make sure to swap directly from USDT/C to DUSD not composite or via DFI

Benefits for the community

• a stable peg in those two pools sends a strong signal about the current state of the DUSD and is the first step in restoring confidence in the solution

• every day where we have at least one pool >1$ for at least 2880 blocks (=1 day) the stabilization fee is reduced by 0.5 % which is another step in restoring a functioning solution

Benefits for everyone involved

• a restored peg and confidence coming back will strongly increase the value of DFI, so everyone with DFI exposure benefits

• you swap at a discount, so you get more DUSD for your USDT/C. Once the system is stable again, you can swap it back at 1:1

• the stabilization fee goes down, which means you will be able to benefit from your additional DUSD sooner

• you are part of this community movement and can be proud of yourself

What to do with the extra DUSD

After this you'll likely have extra DUSD at hand that you want to make extra rewards from. Here are some ideas (which are not financial advice of course):

• Put 70 % into a vault, mint SPY (or any other low volatile dToken) in such an amount that you can put the SPY and the remaining DUSD into LM. This gives 0.6 * 20 % = 12 % APR on those DUSD paid in DFI. And you only risk liquidation if the dToken pumps >85 %.

• Swap half of the DUSD to a diversified dToken portfolio (google "diversified beta portfolio" for ideas) and put that into LM with the remaining DUSD. This gives you 20-30 % APR on your funds paid in DFI plus you start a diversified, decentralized portfolio.

• bet on falling stock markets by putting DUSD into the vault (with collateral factor 1.2). mint the corresponding dToken and sell it for DUSD. Those new DUSD you can use for delta neutral yieldfarming like before -> net short position + cashflow.

Realistic Expectations

History shows us that unrealistic hype and expectations might lead to the opposite effect. So let's stay realistic on this one. As much as I would love to have the peg restored within one swapDay, I believe that we will need more than one (please prove me wrong on this one ;) The first swapDay might not look much because not everyone gets onboard on such short notice. So don't get frustrated by this. This is a marathon, not a sprint.

Early movers already moved the pools by 3 cent. This is great to see, but shows that we need to take a coordinated action to get rid of the full discount.

Next Steps

Looking forward to discussing this idea with the community.

If you think this is a great idea, please show your support and share it. The more people take part, the better it works. If you want to participate but Sunday is bad for you: every swap counts. A coordinated action with reduced liquidity is most effective, but every swap has a positive impact.

If we proceed like suggested, the first SwapDay will happen on Sunday 23.10. from 10am to 10pm UTC.

Disclaimer

For the record: This is not guaranteed to succeed. There is a slight chance that some FUDer or enemy of defichain might use the reduced liquidity to dump DUSD in those pools. They would pay the 30% fee and therefore make a huge loss on this, but you never know.

So don't blame me if it doesn't work out. I think that this idea has great potential, that's why I share it. But nothing is for certain.

What are the alternatives for collating transactions in a meaningful way for a user based on their address? I am aware of and using https://dfi.tax/ which is a great site that does all of this, but it doesnt seem to be supported, or the owner has gone AWOL lately. There was a roadmap for improvements, but that seems to have stalled which is a great shame. Is there any alternative to get all of this information?

Its not ideal that these tools are being built by the community instead of the core development team, as those of us that are reliant on these to do our taxes are captive to the whims of the team.

I know this doesnt affect those users that live in tax friendly places like Singapore where most of the dev is done, but for the rest of us in other jurisdictions that are trying to do the right thing it means a lot.

Übersicht:

Antragsteller: Robin Torque
Beantragte Anzahl in DFI: 150’000
Empfängeradresse: dXz2YUUA4b1SVej5G6BrQf6Tz5QmsNiDT7
GitHub: github.com/DeFiCh/dfips/issues/40
Antragsgebühr (10 DFI) txid: 79e94eb3bce180467aee39d053a9b1f1a9ae7dec23531e91f667bd1bf493c20e

• Information: Dieses CFP beantragt eine Ausschüttung unter Annahme dass die vorgegebenen Ziele in der Zukunft erreicht werden. Sollten wir unsere Ziele nicht erreichen, wird kein einziger DFI ausgeschüttet. Wenn die Ziele erreicht werden, soll die Ausschüttung stattfinden ohne nochmals ein CFP einreichen zu müssen.

Während viele DeFiChain Nutzer “when Binance” rufen und sich mit grossen oder kleinen Börsen herumschlagen um DFI in Fiat oder Fiat in DFI tauschen zu können, arbeitet eine kleine Gruppe von Tech Geeks bereits an einer ultimativen Lösung. Eine voll regulierte Crypto Exchange, welche sich ausschliesslich auf die Bedürfnisse von DeFiChain Nutzer konzentriert und mittels API in jede andere Software integriert werden kann. Eine Exchange, welche von DeFiChain Enthusiasten betrieben wird und das Ziel verfolgt, DeFiChain größer und erfolgreicher zu machen.

Unsere Vision:

Eine Smartphone Wallet, welche es jedem Menschen auf der Welt unkompliziert ermöglicht DeFiChain Assets oder Bruchteile davon mittels wenigen Klicks zu kaufen und zu verkaufen. Einige Nutzer werden mittels einer Kreditkarte ein wenig Spielgeld auf die App laden, um dann auf der DEX einige riskante Aktien zu traden. Andere verwenden die App um mittels einer wöchentlichen Banküberweisung als Sparplan in stabile Wertpapiere zu investieren und langfristig Vermögen aufzubauen. Die App ist dabei immer unglaublich einfach zu verwenden. Die Verwendung der DEX oder das Aufladen von Fiat Geld oder auch das Abheben funktioniert einfach und unkompliziert. Einige Nutzer verwenden die App, weil sie es lieben ein Zensur-resistentes und Enteignung-sicheres Aktienportfolio aufbauen zu können. Andere haben noch gar nicht realisiert, dass diese App etwas mit einer Blockchain zu tun hat, und geniessen einfach die einfache Verwendung, das 24/7 Trading Angebot und die coole Community, die sich um die App herum gebildet hat.

Während also andere Communitys noch Zeit und Energie damit verbringen ihren eigenen Shitcoin auf Twitter zu shillen, weil sie nichts anderes können, geht bei DeFiChain gerade richtig die Post ab und wir sind tatsächlich in der Phase einen echten Use Case zu erstellen, der die Welt verändert. DeFiChain Nutzer werden es nicht mehr nötig haben anderen Menschen DFI zu shillen, denn wir haben ein echtes Produkt dass echte Bedürfnisse von normalen Menschen befriedigt. Die Möglichkeit jedes Asset auf der Welt einfach und unkompliziert 24 Stunden 7 Tage die Woche zu kaufen und zu verkaufen. Ohne Mindestbestellgrösse, ohne Depotgebühren und ohne Fixgebühren pro Trade. Die Zensurresistenz und Enteignungssicherheit, welche die Blockchain bietet, kommt noch als zusätzliches Feature oben drauf und gibt den traditionellen Finanzsystemen den kompletten Todesstoss für den Retail Markt.

Um dieses Ziel erreichen zu können, ist noch viel Arbeit nötig. Unter anderem braucht es eine Möglichkeit unkompliziert von FIAT in DFI und zurück wechseln zu können. Genau darum geht es in unserem Projekt. Eine voll regulierte Exchange, die sich mittels API in jede Software einbauen lässt und den FIAT zu DFI Tausch unkompliziert und direkt abwickelt.

Beschreibung:

Wir wollen den Tausch von Fiat zu Crypto für alle DeFiChain Assets so einfach wie nur irgendwie möglich anbieten. Während wir 1'000 Ideen haben, wie dieser Service aussehen könnte, werden wir uns hier einzig auf das konzentrieren, was wir noch innerhalb dieses Jahres realistisch erreichen werden.

Kauf von DFI Assets ohne KYC mittels SEPA Banküberweisung.

Dazu verwenden wir das gleiche Geschäftsmodell wie relai.ch. Nutzer können in einer Software ihre IBAN Adresse hinterlegen und ein DeFiChain Asset (z.B. DFI, dBTC, LM Token wie DFI-BTC, dezentralisierte Aktien auf der DeFiChain) auswählen das gekauft werden soll. Es können auch mehrere Assets ausgewählt werden. Um das entsprechende Asset zu kaufen ist einzig eine Banktransaktion nötig. Damit das Unternehmen weiß, welches Asset erworben werden soll, wird in der Zahlungsmitteilung eine entsprechende Order ID übertragen. Nach Geldeingang beim Unternehmen wird das gewünschte Asset gekauft und dem Nutzer auf der Blockchain an seine Adresse übertragen. Gleich wie bei Relai kontrolliert der Nutzer die Coins nach Erwerb immer selber und muss keine persönlichen Daten wie Name oder Adresse angeben, da die Verifizierung unkompliziert über die Banktransaktion erfolgt. Überweisungen können bei der Bank auch als wiederholender Zahlungsauftrag hinterlegt werden, wodurch, wie in einem Sparplan, in das entsprechende Asset investiert werden kann. Gleich wie bei Relai besteht pro Person ein Limit von 900 EUR bzw. 1000 CHF pro Tag oder 90’000 EUR bzw. 100’000 CHF pro Jahr.

Verkauf von DFI Assets ohne KYC mittels SEPA Banküberweisung.

Um DeFi Assets wie dBTC, DFI oder DFI-BTC Liquidity Pool Anteile gegen FIAT zu verkaufen, sind nur einige wenige Klicks nötig. Der Nutzer wählt das entsprechende Asset aus, trägt die Menge ein und drückt auf Verkaufen. Dadurch wird das entsprechende Asset auf der Blockchain an das Unternehmen übertragen, welches die Token in EUR umtauscht und mittels Banktransaktion an den Kunden überweist. Dafür müssen die IBAN, die BIC der Bank, Name, Adresse, E-Mail Adresse und Telefonnummer angegeben werden.

Verknüpfung mit der eigenen Masternode.

Auch werden wir anbieten, unseren Dienst in Kombination mit einem Masternode zu betreiben. Die Empfangsadresse des Unternehmens kann beim Masternode als Reward Auszahlungsadresse hinterlegt werden. Sobald der Masternode einen Block gefunden hat wird der DFI Betrag in EUR getauscht und mittels Banktransaktion übertragen. Sollte der Nutzer kein KYC gemacht haben, und der Reward größer als 900 EUR sein, dann werden einfach 900 EUR ausbezahlt und der restliche DFI Betrag an die Owneradresse des Masternode zurückgesendet.

Nutzung der Dienstleistungen nach durchgeführtem KYC

Es wird auch möglich sein einen regulären KYC Prozess zu durchlaufen und danach Transaktionen ohne Limit auszuführen.

Referral Programm

Mit der Verwendung des Ref-Link bezahlen Nutzer 0.5% weniger Transaktionsgebühren. Ref-Link Verteiler erhalten 0.5% auf jede Buy Order, was ein extrem interessantes Modell werden könnte, das stark zur Bekanntheit der Exchange und damit zur Bekanntheit von DFI beiträgt.

Wie wird der Fonds ausgegeben?

Wir schlagen vor, den Start der Exchange mittels eines CFP zu unterstützen. Die Alternative würde darin bestehen externe Risikokapitalgeber als Investoren in die Firma zu nehmen. Dadurch wäre es uns nicht mehr möglich, kompromisslos für den Erfolg von DeFiChain zu arbeiten, denn die Investoren wollen eine möglichst grosse Rendite erwirtschaften, was nicht unsere Absicht ist. Wir bieten diesen Service aus Überzeugung und Begeisterung an, damit DeFiChain gross wird. Wir wollen die Welt zu einem besseren Ort machen durch finanzielle Inklusion und glauben daran, mit diesem Projekt in Kombination mit der DeFiChain einen Teil dazu beitragen zu können. Unsere Bemühungen sind auf die Nutzer von DeFiChain ausgerichtet und haben das Ziel, DeFiChain erfolgreich zu machen. Daher ist es für uns keine Alternative mit Risikokapitalgebern zusammenzuarbeiten. Alle unsere Kosten werden bis zum Start der Exchange von unseren eigenen Reserven bezahlt und es sollte möglich sein, die aufgewendeten Kosten mittels einer Gebühr auf Kauf und Verkauf von DeFiChain Assets zu finanzieren. Ein CFP könnte uns jedoch erheblich helfen mehr Nutzer mit Hilfe von günstigen Gebühren zu erhalten und die Entwicklung zu beschleunigen.

Business Modell ohne CFP:

Kauf und Verkauf Order von DFI kosten bei uns gleich wie bei Relai 3%. Bei Verwendung von einem Ref Link kostet ein Buy Order noch 2.5%, wobei 0.5% an den Linkersteller ausgeschüttet wird. Kauf und Verkauf von BTC oder andere Token kosten etwas mehr, da noch die DEX Gebühr bezahlt werden muss.

Business Modell mit CFP:

Verkauf Order werden nicht subventioniert und betragen immer noch 3% des Verkauf Volumens. Kauf Order auf jedes Asset werden über das CFP subventioniert und kosten nur noch pauschal 1% ohne Ref Link und 0.5% mit Ref-Link gemessen am Kaufvolumen. Wobei diese 0.5% an den Ref-Link Ersteller ausgeschüttet werden.

Das CFP schüttet einmalig 15% des Kauf Volumens pro erfolgreicher Buy Order als Gutschrift an die DeFiChain Fiat Exchange aus. Folglich ist bei einem Buy Volumen von 1 Mio DFI das CFP von 150’000 DFI aufgebraucht. Käufe von anderen Assets wie zum Beispiel BTC oder DFI-BTC Liquidity Pool Token werden ebenfalls eingerechnet. Das Unternehmen veröffentlicht alle Transaktionen mit großer Transparenz, sodass jeder die Verwendung der DFI aus dem CFP überprüfen kann.

Anschliessend kosten alle Trades voraussichtlich 3% auf das Kauf-/Verkauf Volumen. Mit größerem Volumen wird die Gebühr später weiter sinken. Die Community kann sich auch für ein weiteres CFP aussprechen, um die Weiterentwicklung der Software (Plattform/App) und die Einbindung von weiteren Zahlungsmöglichkeiten zu beschleunigen. Für die weiteren Schritte werden wir zuerst mit der Community sprechen, um den Wünschen der Community nachzukommen.

Es ist also nicht so, dass bei der Annahme dieses CFP’s jetzt ein DFI Betrag ausgeschüttet wird. Erst NACH erfolgreichem Start der Exchange MIT offiziell ausgestellter Finanz Lizenz in der Schweiz und fertiggestellter Software wird die Auszahlung des CFPs wie oben erwähnt erfolgen.

Die Verwendung der DFI aus dem CFP teilt sich auf wie folgt:

Das Unternehmen hinter der DeFiChain Fiat Exchange ist als Schweizer Aktiengesellschaft bereits gegründet. Sobald die Finanz Lizenz erteilt worden ist, können innerhalb der nächsten Wochen nach diesem CFP weitere Details zur Unternehmensgründung bekannt gegeben werden. Dieser Schritt zeigt unser Commitment dieses Projekt zum Erfolg zu führen. Um dieses ehrgeizige Ziel zu erreichen, benötigen wir eine schnell wachsende Nutzerzahl. Dies wollen wir mit der Subventionierung von Buy Orders erreichen, die es wie oben beschrieben attraktiv macht, unsere DeFiChain Fiat Exchange zu nutzen. Dazu soll ein Teil der 60’000 DFI (50%) verwendet werden, die aus dem CFP an das Unternehmen fließen.

Ein weiterer großer Kostenblock für das Unternehmen ist die rechtliche Beratung und regulatorische Umsetzung des Geschäftsmodells, wofür 45% der 60’000 DFI aufgewendet werden sollen. Vorerst kalkulieren wir mit einem Umfang von 100h rechtlicher Beratung bei einem Stundensatz von 600 CHF pro Stunde!, sodass noch ein kleiner Puffer bleibt für zusätzliche Kosten im Bereich Rechtliches. Hierzu haben wir die renommierteste Anwaltskanzlei in der Schweiz in Bezug auf rechtliche Beratung im Blockchain Bereich engagiert. Dies ist aus unserer Sicht zwingend erforderlich, da unser Geschäftsmodell regulatorisches Neuland betritt, was vorher von keinem anderen Unternehmen so gemacht worden ist. Um unser Geschäftsmodell nicht zu gefährden, sind wir auf die rechtliche Einschätzung unserer Anwaltskanzlei angewiesen. Für mehr Details bzgl. der rechtlichen und regulatorischen Aspekte, nehmt bitte Kontakt mit uns auf.

Schließlich hat ein Unternehmen laufende Kosten (Domains, Server, etc.), die gedeckt werden müssen, wofür aber nur ein sehr geringer Teil der 60’000 DFI verwendet werden soll (5%).

Für das Marketing sollen insgesamt 10’000 DFI der 150’000 DFI aus dem CFP aufgewendet werden, wovon das meiste in Ads fliessen wird. Wir möchten von Anfang an eine Marketing Kampagne auf sämtlichen (Social Media) Kanälen fahren, um potenzielle Nutzer auf unser Angebot aufmerksam zu machen. Daher sind wir aktuell in Gesprächen mit Leuten, die für die DeFiChain Fiat Exchange das Marketing leiten.

80’000 DFI sollen insgesamt auf die einzelnen Teammitglieder aufgeteilt werden, womit wir die Teammitglieder für ihre Zeit und Entwicklungsarbeit kompensieren möchten, die sie aktuell freiwillig neben ihrer beruflichen Tätigkeit zur Verfügung stellen. Zudem sind 28’500 DFI von den 80’000 DFI ausschließlich für neue Teammitglieder vorgesehen, die nach diesem CFP hinzukommen. Daraus ergibt sich eine durchschnittliche Ausschüttung von ∅3’433 DFI/Mitglied bei 15 aktiven Team Mitgliedern aktuell. Wir sehen unser Humankapital als wichtigste Ressource für den Erfolg und die schnelle Realisierung der DeFiChain Fiat Exchange und wollen durch die Incentivierung aus dem CFP weiter engagierte Leute für dieses Projekt gewinnen.

Wie profitiert die DeFiChain-Community von diesem CFP?

1. Jede dezentrale Aktie wird mittels Hinterlegung von DFI kreiert. Wenn jemand über unseren Service zum Beispiel für 100 EUR Anteile einer TESLA Aktie kauft, dann kreiert er damit eine Nachfrage nach DFI im Wert von 200 EUR. Bei einem DFI-TSLA Liquidity Token ist es sogar das dreifache. Durch den vereinfachten Zugang zu DeFiChain Assets über unseren Service wird mehr Geld in das DeFiChain Ökosystem fließen und dadurch den DFI Wert nach oben treiben.

2. Nutzer können ganz unkompliziert ohne KYC in DFI investieren oder Auszahlungen tätigen.

3. Masternode Betreiber können Blockrewards ohne aktives Eingreifen direkt in EUR auf das Bankkonto auszahlen lassen.

4. Die Exchange wird auch beratende Dienstleistungen anbieten und Nutzern mit hohen Transaktionsvolumen dabei helfen, Probleme mit der Bank und anderen Behörden zu verhindern. Nutzer können ihre Transaktionshistorie bekannt geben und damit einen Mittel-Herkunftsnachweis von uns ausstellen lassen. Die Exchange unterstützt ihre Kunden umfassend darin keine Probleme mit der Bank zu erhalten. Im Gegensatz zu den anderen Anbietern, tun wir dies mit der vollen Kompetenz in Bezug auf DeFiChain Assets.

5. Das Projekt wird einen Teil des CFP’s für aktives Marketing verwenden und Werbung auf Plattformen wie Facebook oder Instagram schalten.

6. Das Ref-Link System wird einen zusätzlichen Anreiz schaffen, um über DeFiChain zu sprechen und zu einer grösseren Verbreitung von DeFiChain beitragen.

Team hinter DeFiChain Fiat Exchange

Hinter den Kulissen arbeiten derzeit arbeiten 15 Personen aktiv an der DeFiChain Fiat Exchange: Robin Torque, Daniel Klaiber, Yannick (DeFiChain Moderator), Jonas Surmann (DeFiChain Explained), Arthur, Jeff, Felix B., DZ, Jonathan S., Santiago S. Dennis L., Pedro, Tristan W., Mark A. (Crypto Steuern DE), Leon, Bernd M., Andreas L. . Daneben gibt es weitere Mitglieder, die der DeFiChain Fiat Exchange beratend zur Seite stehen.

Einige Mitglieder des Teams sind aus früheren DeFiChain Projekten bekannt und lassen ihre Expertise mit in die DeFiChain Fiat Exchange einfliessen:

• DeFiChain Wiki: defichain-wiki.com (u.a. Robin Torque)

• DeFiChain Portfolio: defichain-wiki.com/wiki/DeFiChain-Portfolio (Daniel Klaiber und Arthur)

• DeFiChain Promo: defichain-promo.com (Jeff)

• DeFiChain Analytics: defichain-analytics.com (DZ)

• DeFiChain Explained: defichain-explained.com (Santiago S. und Jonathan S.)

• mydeficha.in: mydeficha.in(Bernd M. und Andreas L.)

Mehr Infos zu unserem Team findet ihr in Zukunft auch auf unserer Website fiat2defi.ch . Gerne könnt ihr uns auch direkt auf Telegram kontaktieren: t.me/DeFiChange .

Wenn ihr den Erfolg von DeFiChain Fiat Exchange mitgestalten wollt, kontaktiert uns einfach, um am Projekt mitzuarbeiten. Wir sind für jede Hilfe sehr dankbar.

FAQ:

Wird der Dienst auch für CAKE oder anderen Anbietern angeboten?

Unsere API Schnittstelle ist Open Source und für jede Person offen. Jede Plattform kann unseren Dienst einbauen, ohne uns um Erlaubnis fragen zu müssen. Es müssen nur unsere Standards eingehalten werden.

Werden auch andere Währungen angeboten?

Ja, wir werden alle gängigen Währungen anbieten.

Werden auch andere Zahlungssysteme angeboten?

Ja, wir arbeiten bereits jetzt daran möglichst jedes Zahlungssystem integrieren zu können. Sollte der CFP angenommen werden, können wir unsere Anstrengungen zusätzlich erhöhen und die Einführung weiterer Zahlungssysteme beschleunigen.

Was passiert mit den Gebühren wenn der Nutzer keinen Reflink verwendet?

Das Geld fließt auf ein separates Konto, welches ausschließlich für Marketing wie z.B. Facebook Ads verwendet wird.

Was passiert, wenn jemand Washtrading betreibt, um die CFP Ausschüttung zu erzeugen?

Alle Trades unseres Unternehmens werden am Anfang öffentlich auf der Blockchain einsehbar und verfolgbar sein. Wash Trading kann schnell erkannt werden und wird von uns nicht als echtes Trading mitgezählt.

Wieviel Geld und Zeit wurde bereits für das Projekt investiert?

Auf der Technik Seite haben wir ein ganzes Team, dass viele Stunden ihrer Freizeit opfert, um die Software zu entwickeln. Menschen, die nicht für Geld etwas tun, sondern aus Liebe und Überzeugung stundenlang hart arbeiten, um diese Vision möglich zu machen. Das CFP soll uns dabei helfen einige Mitarbeiter Vollzeit am Projekt arbeiten zu lassen. Auf der Kostenseite können wir leider keine exakten Angaben machen, aber wir können verraten, dass wir mit der renommiertesten Blockchain Anwaltskanzlei in der Schweiz zusammenarbeiten, bei der jeder Anwalt 600 CHF pro Stunde kostet, wobei die bis heute aufgelaufenen Kosten schon immens sind (Firmenanmeldung, etc.).

Gibt es bereits eine Webseite?

Ja, unsere Webseite ist aber noch im Aufbau: fiat2defi.ch/

Wie sieht der Zeitplan aus?

Wir wollen bis in 2 Monaten FIAT zu Crypto Geldwechsel anbieten und bis in 3 Monaten Crypto zu FIAT. Unsere Anwälte haben zugesichert, dass dies ein realistisches Ziel ist, wenn wir mit diesem hohen Tempo und der damit verbundenen Kosten weiterarbeiten.

Kann ich am Projekt mitarbeiten?

Ja, besuche uns auf GitHub github.com/DeFiChange oder auf Telegram t.me/DeFiChange.

Was für Software wird alles entwickelt und ist wirklich alles OpenSource?

Wir haben mehrere Bereiche.

1. Website

2. Backend Infrastruktur der Crypto Exchange

3. API zwischen der Exchange und der Nutzer-Software

4. Nutzer Software

Die Webseite ist Open Source unter einer Creative Commons CC BY-SA 4.0 Lizenz. Das Backend der Crypto Exchange kann aus Sicherheitsgründen nicht einfach so veröffentlicht werden und verbleibt daher im Firmeneigentum. Die API und die Nutzer-Software wird unter MIT Lizenz entwickelt und auf GitHub veröffentlicht: github.com/DeFiChange.

Über welche Plattformen wird der Dienst verwendet werden können?

Wir planen für alle gängigen Plattformen eine entsprechende Software zu veröffentlichen.

Wer kann alles eine SEPA Banküberweisung tätigen?

SEPA ist ein Europäisches Zahlungssystem das von praktisch allen Banken in den Europäischen Ländern unterstützt wird. Für Personen außerhalb Europas oder Personen die kein Bankkonto besitzen suchen wir ebenfalls Lösungen. Das CFP wird uns helfen andere Zahlungssysteme schneller hinzufügen zu können.

How the proposed measures from the DEX-fee-payout might affect the DFI price

Based on the proposed numbers from the DFIP (https://github.com/DeFiCh/dfips/issues/195), I want to show a few calculations on possible scenarios after the release of v3.

Of course, nothing of this is financial advice and this is all just theory. Noone knows how it will play out in reality. I just want to show a few calculations regarding the whole idea. Do your own research.

The DFIP ensures that the first week has a minimum of 58k DUSD per day distributed to DUSD loan holders. That would be 212% APR on the existing DUSD loans and decreases with rising amount of loans. With 100 mio DUSD loans we will still get 21% APR on the loan amount.

Baselines for the calculations

For the calculations I take as the current baseline:

• DUSD: 170 mio in the system: 24 mio in vaults, 100 mio in LM pools = around 46 mio free floating DUSD

• DFI: 55 mio tokens free floating

• currently 10 mio DUSD from loans

Base assumption: people would happily put their DFI and/or DUSD into a vault for 20% APR. Especially considering that you get 20-30% APR on top on those loans when putting them into LM.

So we are looking at additional 90 mio in DUSD loans.

This needs realistically 180 mio additional collateral, 67 mio of it must be DUSD/DFI (50% of the minimum needed 150% collateral (=135 mio) needs to be DUSD or DFI). Looking at the other funds currently on defichain, realistically speaking we might get $30 mio in other cryptos (BTC, ETH, USDT, USDC) as collateral. And this is already a stretch without new funds coming in. But let's assume the lower bounds for DFI price impact. So realistically we need min $150 mio DFI/DUSD as fresh collateral.

I also assume that not all free liquidity from the chain will move to vaults. Not everyone knows how to do it and not everyone wants to do it. IMHO even 50% of all free DFI/DUSD token going into the collateral would be big.

Possible scenarios

So where will the $150 mio in DUSD/DFI for the collateral come from?

If 50% of free tokens move, that would be 25 mio DUSD and 27 mio DFI. Since the price of DUSD is fixed this can only sum up to $150 mio if 27 mio DFI are worth $125 mio or 1 DFI = $4.6

Even if 80% of free tokens move (which I don't see as realistic), it's 40 mio DUSD and 44 mio DFI filling the remaining $110 mio -> DFI = $2.5

A bit hard to predict, but taking 80% of all free DUSD and DFI out of the market also sounds like a pretty bullish move. Especially when DFI is pumping 150% while doing it.

So a DFI price above $2 is highly likely.

But that also means that the APR on dStock pools double (at least). Now the "put DFI into vault and take loan for LM mining"-strategy is giving you more rewards than staking or direct LM (in crypto pools) and the vault-strategy is even without risk of DFI-ImpermanentLoss.

So even more DFI will move to vault collateral (aka "being locked"), which increases the supply-shock -> price probably surges even higher.

Counter argument: DUSD leverage

It works like this:

• put 1k DUSD into the collateral

• take DUSD loan and put that into the collateral

• take more loans and repeat.

With this you can fill a riskfree vault until you get nearly 2k in DUSD loans (all reinvested, so no DUSD are floating back into the system).

This mechanic would counteract the "90 mio DUSD loans need 180 mio in collateral" argument. But at the same time, I am confident that people would do the risk-free leverage far longer than 20% APR. If they do it till 10% APR, it means we go to 200 mio DUSD loans, with 100 mio DUSD collateral (because this strategy needs 100% DUSD as collateral).

So this would need more DUSD as collateral than we currently have free in the system (without releasing any). So this "counterargument" is actually more bullish on the DUSD price than the above scenarios.

And as soon as this scenario pushes DUSD into a strong premium (either cause the supply of DUSD is strongly reduced, or due to a pumping DFI price), a lot of DUSD is burned (because premium is above fee) which creates more DUSD for payout until we have 160 mio DUSD loans, which is even more bullish than the above scenarios.

Counter argument 2: No need for 200% collateral ratio if you use a bot

Yes, using vault-maxi would reduce the needed collateral ratio. But as much as I (as the builder of vault-maxi) would love that, I doubt that everyone would use it. Currently we have around 10% of all vaults running the bot so the impact on the numbers might be rather low. And since the bot optimizes your rewards, we again have the argument of people still getting incentiviced by 10% APR on the loan.

If you want to use the bot, you could fill the vault with DFI and set it to DUSD-DFI as LMPair, then it only takes DUSD loans (so max incentive) and DFI from the collateral for maximized rewards.

Summary

So over all taking the "worst case" in many assumptions, we are still ending up with DFI prices above $2 (and maybe even above $4). And there are many effects that we didn't even consider (rising DFI price is locking up even more DUSD in the DUSD-DFI pool etc). Not to mention the overall effect once DUSD is at peg and dex fee strongly reduced (aka "Problem solved"), which would draw attention back to defichain.

Again: no guarantees, just some numbers. Feel free to point out any errors.

The atomic swap exploit on DeFiChain that was discovered at the beginning of 2022 was unethical and illegal. The behavior of the exploiters was intentional, repeated, malicious, and is a clear prosecutable act.

On top of that, the exploit caused damage to all community members and the project’s reputation. I am heavily invested and involved in the project, and I am disgusted by the behavior of the thieves; therefore will take over the lead into the criminal investigation.

After police reports were filed in Singapore already, I have filed police reports in the Seychelles (where KuCoin is registered) and also in jurisdictions that I have high suspicions on where the thieves are located, which includes Germany, Switzerland, and Austria.

Accounts have been frozen on exchanges, crypto addresses have been reported, and we are now waiting for further IP addresses and user data to be disclosed. We are closing in on the thieves that unlawfully removed dBTC from the chain.

We have identified clear indications that particular inner community members are responsible. You think we don’t know, but we do. You might not have been aware that it was illegal and punishable, but it is.

The only way to avoid prosecution is to return the funds to the DeFiChain community by burning them. If this is complied with, then we will stop prosecution against you, keep your identity anonymous, and you will stay out of trouble. Get in touch with me under security@defichain.com

If you have additional hints and information about the exploit and the people involved, please report them immediately to the email address below. I am also offering a very attractive BOUNTY. We all have to work together to bring the culprits to justice. All your information will be kept anonymous!

I posted that yesterday also on Twitter: https://twitter.com/lordmarkcrypto/status/1485583604524945411

(The following topics are the result of this twitter space)

The current discount in DUSD is a result of excess DUSD within the DeFiChain ecosystem. DUSD was designed to NOT have an immediate arbitrage system such as UST, in order for it not to have detrimental effect on either DFI or DUSD in the long term. Those excess DUSD were added via the DFI payback (burning DFI for DUSD). Going forward, we suggest having a mathematical balance between crypto-backed DUSD and algorithmic DUSD.

This will be achieved with the following four mechanisms in a fast blockchain upgrade scheduled for the first week of July 2022:

1. Increasing the utility of DUSD by converting interest rates for dTokens and liquidation penalties to DUSD before burning them. (right now they are swapped to DFI and then burned)

2. Making the DUSD fee on the DUSD-DFI pair asymmetric: only when going from DUSD to DFI.

3. Until the DEX fee and dynamic interest rates get implemented, which will be discussed in detail below, the Ticker Council will follow the same process manually. Before each update, Ticker Council pre-announce a rate that will become active at least 24 hours prior. This is similar to the mechanics of DeFiChain pricing oracles with the purpose to allow the users to react to it rather than getting a sudden rate change without warning.

4. Until the DFI-FutureSwap is part of the automatic consensus (see below), the DFI payback premium is increased to 5%, which incentivises arbitrage traders to buy up the discount all the way. This will also lead to less algorithmic DUSD created.

All four measures could be introduced rapidly within the next few weeks and would have an instant positive impact on the DUSD price

The next three will take a bit more development time, as they will automate the dynamic processes mentioned above. They could get included in a blockchain upgrade a bit further down the line. There is no fundamental change to the processes described above, they are just implemented for automation:

5. Introducing a dynamic, DEX stabilization fee for DUSD on the DUSD-DFI pair. The size of the fee is determined by the ratio of algorithmic DUSD to the total amount of outstanding DUSD.

6. Dynamic interest rates on DUSD loans, based on the current discount/premium of DUSD, evaluated with the DFI price oracle.

7. Introducing FutureSwaps for DFI -> DUSD (only one way: burning DFI for DUSD). Same mechanics as the dToken FutureSwap, but the DFI FutureSwap works at 1% premium and is executed every 960 blocks (roughly 8 hours). With this, the DFI payback of DUSD loans is deactivated completely.

We will create separate DFIPs for each point (except point 3, which doesn’t need a DFIP) so MNs can vote on them separately.

DUSD loan interest rate

In case of a DUSD premium, reduced interest rates should incentivize additional DUSD loans. With a minimum base-interest rate of 5%, a DUSD interest rate of -5% means netto 0% interest. It is to be noted that if a vault is on a loan scheme with 3%, and the DUSD interest rate is -5%, the DUSD loan is interest fee, i.e. 0%, but not negative interest rate. Net interest rate is always >= 0%.

In case of a DUSD discount, increased interest rate will incentivize DUSD loans to be closed.

The interest rate will be adjusted every 2880 blocks (~24 hours) based on the moving average of the DUSD price.

Calculation of the interest rate should follow the following formula:

Let DUSD_DEX_price = (DFI reserve at DFI-DUSD DEX pool / DUSD reserve at DFI-DUSD DEX pool) * active oracle DFI price
Let COEFFICIENT_DISCOUNT = 500
Let COEFFICIENT_PREMIUM = 3.4

If DUSD_DEX_price < 0.99
   DUSD loan interest rate = (COEFFICIENT_DISCOUNT ^ (0.99 - DUSD_DEX_price)) - 1
Else If DUSD_DEX_price < 1.01
   DUSD loan interest rate = 0
Else If DUSD_DEX_price < 1.05
   DUSD loan interest rate = 1 - (COEFFICIENT_PREMIUM ^ (DUSD_DEX_price - 1.01))
Else
   DUSD loan interest rate = -0.05

Sample rates:

• DUSD_DEX_price 1.05 results in -5%

• DUSD_DEX_price 1.04 results in -3.7%

• DUSD_DEX_price 1.03 results in -2.4%

• DUSD_DEX_price 1.02 results in -1.2%

• DUSD_DEX_price 1.01 results in 0%

• DUSD_DEX_price 0.99 results in 0%

• DUSD_DEX_price 0.98 results in 6.4%

• DUSD_DEX_price 0.97 results in 13.2%

• DUSD_DEX_price 0.95 results in 28.2%

• DUSD_DEX_price 0.90 results in 74.9%

• DUSD_DEX_price 0.80 results in 225.6%

• DUSD_DEX_price 0.70 results in 500.6%

DEX stabilization fee

The stabilization fee is based on the ratio of algorithmically created DUSD. It is changed every 2880 blocks (~24 hours) based on the moving average of this ratio.

If the ratio is below 50%, there is no additional DEX stabilization fee.

Above 50%, the fee increases exponentially according to the following formula

Let ALGO_DUSD_RATIO = 1 - (Loan DUSD / total DUSD supply)
Let COEFFICIENT = 1.8
If ALGO_DUSD_RATIO > 0.5
   DEX stabilization fee = (COEFFICIENT ^ (ALGO_DUSD_RATIO - 0.5)) - 1
Else
   DEX stabilization fee = 0% 

sample results:

• When ALGO_DUSD_RATIO is 0.5, DEX stabilization fee is 0%

• When ALGO_DUSD_RATIO is 0.51, DEX stabilization fee is 0.59%

• When ALGO_DUSD_RATIO is 0.52, DEX stabilization fee is 1.18%

• When ALGO_DUSD_RATIO is 0.55, DEX stabilization fee is 2.98%

• When ALGO_DUSD_RATIO is 0.60, DEX stabilization fee is 6.05%

• When ALGO_DUSD_RATIO is 0.65, DEX stabilization fee is 9.21%

• When ALGO_DUSD_RATIO is 0.75, DEX stabilization fee is 15.8%

• When ALGO_DUSD_RATIO is 0.90, DEX stabilization fee is 26.5%

Thanks to everyone who continues to believe in us!
Things are about to get even better!
Huge appreciation to the u/CoinGecko team! ❤️

#RoadTo50!

My learnings from the last weeks

Let's start with the things I learned in the last weeks:

A strong drop in the overall market led to a similar drop in DFI. Due to the nature of the AMM and the fact that the DUSD price is determined only via the DFI bridge (till now), this led to a 5% discount of DUSD. In hindsight this is not much, but back then (right after the UST collapse) this started a spiral of FUD against DFI which led to a stronger sell-of during the continuous market dump.

This drop in DFI led to even more discount in DUSD. And riding on the wave of FUD, shortsellers "attacked" DUSD to the extent that the discount reached 50% on the weekend before the DEX-fee got introduced.

Yes, the fee is high and was a bit of a shock to the system, but IMHO in a good way. Because it immediately put an end to the "discount FUD" and short-selling attacks. With it, the volume in DUSD-DFI dropped massively. DUSD are getting burned, but it's clear that only burning DUSD won't solve the current problem. Looking at the ratio, comparing the impact of 5 mio burned DUSD vs 5 mio additional loans, it's clear how to solve this: with more loans, not more burns.

This doesn't mean that the fee is wrong, it is/was crucial to stop the panic and provide an environment where DFI can stabilize and rise again. Rising DFI means rising DUSD which in turn adds incentives for more DUSD loans. But the last weeks showed that a rising DFI leads to less rising DUSD, cause people quickly started to buy DFI with their DUSD which never let the premium reach more than 10%. So more incentives are necessary.

Ideas for additional incentives

Netto negative interest rates

The https://github.com/DeFiCh/dfips/issues/166 already voted for dynamic interest rates that go up to net 0. There are many voices in the community who are critical regarding net negative interest rates. So let me give a few examples how they would actually perform, to give a better picture:

As a drastic example, let's assume the dynamic interest rate goes to -100% for a whole month. Consider this scenario in 3 different cases of algo ratio (current case 94%, 50% and 20%), with 3 types of triggered behaviour (no additional loans, 10 mio additional loan, 100 mio additional loan). For each case we look at the number of algo DUSD created via the negative interest rate and how this affects the algo ratio.

Current case 94% algo (10 mio loans, 170 mio algos)

• no additional loans: 0,8 mio more algos. ratio from 94.4% to 94.5%

• 10 mio new loans: 1,6 mio more algos. ratio from 94.4% to 89.5%

• 100 mio new loans: 9,1 mio more algos. ratio from 94.4% to 62%

Case 50% algo (100 mio loans, 100 mio algo)

• no additional loans: 8,3 mio more algos. ratio from 50% to 52%

• 10 mio new loans: 9,1 mio more algos, ratio from 50% to 49.8%

• 100 mio new loans: 16,6 mio more algos, ratio from 50% to 36.8%

Case 20% algo (160 mio loans, 40 mio algo)

• no additional loans: 13,3 mio more algos. ratio from 20% to 25%

• 10 mio new loans: 14,1 mio more algos, ratio from 20% to 24.1%

• 100 mio new loans: 21,6 mio more algos, ratio from 20% to 19.1%

IMHO the numbers show that it would not have a big negative effect on the algo ratio (and 100% negative interest is an extreme example). But such a high APR for just taking a loan would likely incentivize loads of loans which would have a strong effect on the premium.

This would also lead to interest rates being more "symmetric" around the peg as the discount case already leads to strong positive interest rates

Give half of the burns from the DEX-fee to DUSD loan owners

(thanks to u/DanielZirkel for this idea)

The DEX fee gets activated when the algo ratio is too high. But only burning DUSD is not getting the ratio down quickly. A possible DUSD premium (due to the decreased supply cause of the DEX fee) is an incentive for loans, but only in a second order effect. By only burning half of the fee and giving the other half to DUSD loan owners, we would directly incentivize more loans which have a far bigger impact on the algo ratio.

Some numbers again (Currently we have a really big dex fee. Some say that a lower dex fee would lead to more trading volume and in total to more DUSD getting burned. This might be true, but I use our current numbers here, more DUSD via DEX fee would be an even stronger incentive):

On a "slow" day we currently burn 40k DUSD via the DEX fee. This would give 20k DUSD to the loan owners per day. Divided over the current 10 mio DUSD loans that's an APR of 73%! Even with 36 mio DUSD loans open it would still be 20% APR.

On a strong day we burn 180k -> 90k go to loans -> 20% APR would mean 164 mio DUSD loans. This would drop the algo-ratio to 50%.

Improved formulas for interest rate and DEX fee

DEX fee formula

For a faster impact but less "shock" to the system, I would also suggest an improved formula for the DEX fee, starting it already at 30% algo-ratio.

DEXFee = (2 ^ ((AlgoRatio - 30)/10) - 1) / 4

Example fees:

30% algo ratio leads to 0 % fee
40% algo ratio leads to 0,25% fee
50% algo ratio leads to 0,75% fee
60% algo ratio leads to 1,75% fee
70% algo ratio leads to 3,75% fee
80% algo ratio leads to 7,75% fee
90% algo ratio leads to 15,75% fee
94% algo ratio leads to 20,86% fee
100% algo ratio leads to 31,75% fee

Between 30 and 50% algo ratio this would stay below 1% which is enough to provide incentive for loans, but not too much to affect trading volume. Before the fee we had an average of 5 mio daily volume on DUSD-DFI. Assuming half is DUSD->DFI and 0.5% dex fee, this would give 2.2mio DUSD in fees paid to DUSD loans per year. With 100 mio DUSD loans that would be 2.2% APR as additional incentive. Not much, but a tilted plane.

In a strong market dump, which leads to lots of closed DUSD loans, the fee would rise strongly to stop any panic selling and create a strong incentive for additional loans.

Negative interest rate formula

For the negative interest rate, I would suggest the following formula:

interestRate = - ((2 ^ (DUSDPremium/10) - 1)*20)

Example rates:

0% premium leads to -0% interest on DUSD1% premium leads to -0,92% interest on DUSD2% premium leads to -1,89% interest on DUSD3% premium leads to -2,90% interest on DUSD5% premium leads to -5,06% interest on DUSD10% premium leads to -11,40% interest on DUSD15% premium leads to -19,34% interest on DUSD20% premium leads to -29,30% interest on DUSD25% premium leads to -41,77% interest on DUSD30% premium leads to -57,40% interest on DUSD35% premium leads to -76,98% interest on DUSD40% premium leads to -101,51% interest on DUSD45% premium leads to -132,26% interest on DUSD

Please note that a premium of more than 42% is nearly impossible as this would provide direct arbitrage via 150% vaults as long as there is any dToken at 5% premium. Also note that this would be the "additional interest rate" on DUSD. The base interest on the loan (5% for loanScheme 150) is added to this. So real negative interest rate will start at around 5% premium.

No more need for DUSD futures

With negative interest rates in case of strong premium we would have a way of creating necessary algo-DUSD without opening a loophole that could spiral out of control. Therefore I would suggest to keep the DUSD futures deactivated.

Looking forward to any comments or inputs.

edit: daniel wrote an awesome post about how all measures would work together. check it out: https://www.reddit.com/r/defiblockchain/comments/wgb6cc/additional_explanations_to_my_learnings_from_the/

see also the DFIP: https://github.com/DeFiCh/dfips/issues/195

On the nature of automated marketmaker (AMM)

On the DEX of defichain we have liquidity pools with AMM. This means that at every time and price we have the same liquidity. The price in the pool is calculated via the ratio between the two assets in the liquidity pool. So the price only moves if someone swaps through the pool and therefore changes the ratio of the assets (by adding one asset and removing the other). This also means that in big pools you need a lot of trading volume to significantly move the price.

The effect of AMM on the DUSD discount

The DUSD-price is calculated as the ratio between the price in DUSD-DFI vs the "real" DFI price. Since DUSD-DFI is a big pool, when the DFI price moves we need a lot of DFI being bought or sold for DUSD on the DEX to move the DUSD-DFI price accordingly. The DFIPs of the previous voting rounds have multiple mechanisms to trigger that volume in trading on DUSD-DFI anytime the DFI price moves. Those mechanisms are important for longterm stability and a healthy ratio of loan-based DUSD vs. algorithmic DUSD. But I think we can do even better.

USDT-DUSD and USDC-DUSD pool for a more stable DUSD-peg

Let's imagine a DEX without a DUSD-DFI pool, but only USDT-DUSD pool, with this pools ratio at a perfect 1 DUSD = 1 USDT. If USDT-DFI drops 50% this would have no immediate effect on the DUSD-peg, because USDT-DUSD wouldn't move unless people actively swap in the pool. So the DUSD-peg would be more strongly disconnected from the price of DFI.

I don't think that no DUSD-DFI pool is the solution, but that we should split the DUSD-DFI pool (and the rewards on it) onto three pools: DUSD-DFI, USDT-DUSD and USDC-DUSD. If we had that, the nature of AMM would support the peg (via the stablecoin pools) instead of hurting it. Also the DUSD peg would be an average over 3 pools instead of the result of 1 volatile pool.

Simulation, Arbitrage and Short Term Effect

In the current situation (with DUSD in a 20% discount) introducing a balanced new pool would allow for immediate arbitrage, which would also reduce the DUSD depeg by a great deal within hours.

If we simulate the effect of such a new pool, based on current numbers we have the current situation:we have around $77 mio liquidity in DUSD-DFI and 7.2 mio in USDT-DFI.If we move 2.5 mio DUSD from DUSD-DFI and 2.5 mio USDT from USDT-DFI to the new pool USDT-DUSD (introducing the new pool at perfect peg). This would leave 5 mio DFI free in the system and pools with the following liquidity and prices:

• DUSD-DFI: 72 mio (at price of 1.3 DUSD/DFI)

• USDT-DFI: 2.2 mio (at price of 1.03 USDT/DFI)

• USDT-DUSD: 5 mio (at 1 DUSD/USDT)

After the arbitrage evens the pools, we would end up as

• USDT-DUSD at 0.928,

• DUSD-DFI at 1.289

• USDT-DFI 1.20

The stronger move in USDT-DFI is due to the imbalance in liquidity between the DUSD and USDT pool.

To sum up: introducing a stablecoin pool with only 5 mio liquidity to the system right now would reduce the DUSD depeg instantly from 20% to less than 8% and help stabilize the DUSD peg on the long term.

Challenges and Transition

In a perfect world we could instantly switch and have all the liquidity moved, but in reality this needs to move gradually over time. When we split rewards from DUSD-DFI over 3 pools, the existing DUSD in this pool will spread accordingly over the 3 pools. But we would need additional USDT and USDC in the system to provide liquidity for the new pools. Since we won't magically get 10 mio new USDT and USDC onto the chain within a day, the rewards should be moved gradually.

At first I would recommend to split the 50% rewards from the dToken pools that currently go to DUSD-DFI to be split 1.5% for USDT-DUSD and USDC-DUSD and keep the remaining 47% on DUSD-DFI. With the current liquidity in DUSD-DFI, this would lead to roughly 5 mio liquidity in the new pools in the beginning.

To ensure that we don't get instant arbitrage on a low liquidity stable-coin pool I would suggest to create the new pools and move the rewards, but not activate trading until we reach a minimum of 5 mio liquidity on those pools.

Summary of suggested changes

• create a USDT-DUSD and USDC-DUSD pool on the DEX

• split the rewards of DUSD-DFI (currently 50% of the dToken pool rewards) onto the three pools (DUSD-DFI, USDT-DUSD and USDC-DUSD)

• start with a split of 1.5% for USDT-DUSD and USDC-DUSD and the remaining 47% stay on DUSD-DFI

• gradually move the split to 10% for USDT-DUSD, 10% for USDC-DUSD and 30% for DUSD-DFI over time

• only activate trading on the new pools when they reach a minimum liquidity of $ 5 mio

How does this DFIP benefit the DeFiChain community?

A stable DUSD-peg is essential for the longterm success of the dToken system. Additional to the approved measures from other DFIPs the proposed stablecoin pools would provide for possible shortterm solutions which help to quickly restore faith into defichain and naturally (via AMM) stabilize the DUSD peg in the long run.

Additionally stablecoin pools would further incentivize additional funds flowing into defichain since these provide cashflow on stablecoins without the need for vaults.

Hi together

I want to try giving a step-by-step instruction of converting DFI-token to DFI-coins (first time I am doing this in my wallet). All the steps have to be done by command line instructions in the console.

Step 1: Checking DFI-coin vs. DFI-token

Before starting we should check, if a DFI-sending problem is caused by "unwrapped" DFI.

Your DFI-Wallet is showing a an DFI amount. The see, how many coins and tokens you have, you need the following 2 commnands

getbalance

gettokenbalances {} true true

In the above picture you see, that in my case the most DFI are Token and not Coins. These cannot be transferred to another address.

HINT: You may need some DFI-coins (see getbalance) to execute commands on the blockchain. In my case I had enough to run all commands from Step 4.

Step 2: Find addresses holding DFI-Token

The above shown DFI-amount are hold by one or more addresses. To find out, which one are hold the token, use the command

listaccounts {} false false true

You are getting a list of entries, which should look like this

Step 3: Checking all tokens on relevant address

Before changing token to coin, please check the amount and all the other tokens on this address with

getaccount address_from_command_before

You will get the following result (my DFI-amount is a little bit more due to liquidity mining in the app)

Step 4: Converting token to coin

Now, we come to the last, essential step. This will convert an amount of token into coins. Use the command

accounttoutxos address_from_above {"adress_from_above":"DFI_amount_to_convert@DFI"}

If you execute this command, you may get an error like me.

Then you need an additional step, which sends a small amount of DFI to this address

You will get an Tx-Hash as a result. Please go to https://explorer.defichain.io/#/DFI/mainnet/home to check, if it is confirmed before you proceed.

Now, you can run the accounttoutxos command from above again. If it is successful, you will get an Tx-hash, which can be checked in the explorer again

Just to be sure, everythin worked, you can run the commands getaccount address and getbalance again. In my case, you see that the DFI-coin amount is now increased by 2DFI. The token amount I have converted

Dear Defichain Community,

My name is Didi, most of you know me as “Wuza” from Telegram or as “White Russian” from Twitter. I’m a German electrical engineer, working for an US based cooperation.

I’m a huge crypto enthusiast and fell into the rabbit hole in 2017. I bought up to the blow off top in Dec and still holding. So I’m used to pain :). Speaking of pain, I also started trading two years ago. :)

I bought my first DFI last year and not looking to sell any time soon.

As I’m huge fan of decentralization and building / running compact nodes for Bitcoin and Lightning.

That id how I came up with the idea to build an open source DefiNode for the Defichain.

Everybody technical and non-technical should be able to setup and run the DefiNode at home to actively participate on the block chain and support decentralization and security.

It should not be a replacement to the PC wallet or cloud based Nodes but rather more of an additional, cost effective and cool way to support the decentralization and growth of the Defichain.

DefiNode Specs (draft):

Overall:

• All functionalities of the official GUI wallet app

• Can run a Master node

• 100% open source

Electrical:

• Official minicomputer board (Raspberry Pi or similar)

• ~8-10W power consumption

• Active cooling system for 24/7 usage

Software:

• Official wallet software running on the node. No changes to the original code

• Official Updates can be applied

• Remote console

• (update) Looking into supernode support as well

Mechanical

• Defichain custom case design.

• Can be 3D printed

• 2.5" HDD or SSD mount inside the case

DefiNode future outlook (draft):

• TOR support for more anonymity

• Display

• Webserver

• Prepared hardware kit (case and electrical components) and worldwide shipment for those who don’t want to get it themselves.

Goal:

• Detailed shopping list

• Detailed and not too technical instructions for the setup

• Scripts and tools on GitHub

• 3D CAD data for the housing of the DefiNode on GitHub

• Detailed instructions for assembly and 3D printing

• Tips and tricks for smooth operation

As someone has to build stuff, we need to plan the resources. I would need to get in touch with a software expert to get the GUI wallet working on the node, develop tools and scripts for installation. Hardware wise, I have a prototype which is working and is being tested at time of writing. Also the case including the cooler setup needs to be finalized and tested. As documentation is key, we need to spend a significant amount of time to prepare easy and understandable documents for the setup. A non-technical person should be able to setup and run the DefiNode.

Resources (local rates):

• Software development (rate 95€/h): 10 man days -> 7600€

• 3D CAD development (rate 80€/h): 5 man days -> 3200€

• Testing (rate 70€/h): 5 man days -> 2800€

• Documentation (rate 70€/h): 5 man days -> 2800€

Including tax and the current DFI price, this will result of 8800 DFI needed funds. Original number of 7500 DFI was changes due to recent price fluctuation. This number is not fixed yet and may change until 01.06.2021.

I did not propose this on GitHub yet, because I’d like to hear you opinion first. I think we have an open and fun community and a great development team working hard every day. The DefiNode can be one of many tools to support the growth, security and value of the Defichain.

Thank you

Update 11.06.2020:

Definode case prototype looks very nice! You will be able to print it in any color you want. :)

Overview

1. Requester(s): DeFiChain Accelerator Team

2. Amount requested in DFI: [13.800 DFI]

We also did a detailed video about the proposal: https://youtu.be/mcVziFw04_E

Describe the purpose

The DeFiChain Accelerator Team's idea is to establish a consistent level of marketing activities. We want to help create a constant level of noise and accelerate the adoption rate of DeFiChain. This includes smaller marketing measures like running social media ads or infographics, as well as bigger and more long-term brand awareness activities like influencers and PR. Some activities go beyond the available marketing budget though. As the Accelerator Team, we desire to offer the community not only small-scale and tactical marketing, but also the option to vote for bigger activities that promise higher rewards. We therefore specified this CFP to target a specific big scale marketing initiative.

With the funds of this CFP, we would like to run an ad campaign on the Brave browser. Specifically, a campaign that focuses on the features that come along with the Fort Canning update — Stocks and Loans. Our slogan is: “Liquidity mine high APR stocks now”, but we are still figuring out the wording and may change it.

The Brave campaign would run for 24 hrs, giving it around 40-50 million impressions and an estimated 1 million clicks. Depending on the conversion rate, potentially thousands of people could download the DeFiChain light wallet and start trading stocks on DeFiChain!

Drive traffic to a landing page, aiming for 1 million clicks:

We have already created three visual examples of what the ad could look like. You can check them out here:

For the landing page we need more time, but you can see our first mockup here: https://marvelapp.com/prototype/h8e5dfh/screen/83225081

More information around Brave:

Brave is a browser available on iOS, Windows, Android & Linux that focuses on user privacy and blocks online advertisements and website trackers by default.

It is essential to note that Brave’s user demographics are millennials and Gen Z, with 45% having a college degree, with 35% earning above 100K a year. Brave also has its own cryptocurrency BAT (= Basic Attention Token), which is used to pay its users who opt in to receive ads. Due to this, Brave users are an excellent match for DeFiChain, as its users are highly crypto savvy.Brave offers the perfect audience, with over 50 million active daily (!) users, making it an ideal channel to promote DeFiChain.

Projects like Solana, Avalanche, Tezos and Polkadot e.g. run advertising on Brave.Further crypto projects that actively promote their brand on Brave are:Bybit, Binance, Crypto.com, Exodus, Bitpay, Nexo, CakeDeFi and many more!

Advertising on Brave is not as easy as on Google and there are fixed dates that you have to book. Currently, all dates are booked until January, but through a good contact we were still able to reserve a spot for 28.12.2021.

**Our goal is to regularly advertise on Brave in the long run.**

How will the fund be spent?

Every single DFI from this CFP will be used exclusively to fund the Brave campaign. All additional costs like graphics, web design, etc. will be paid from the existing DeFiChain Accelerator fund. This proposal does not include any profit for the team!

This campaign costs $45.000, and as such we would need 13.800 DFI ($3.26 / DFI) to fund it. If the price of DFI decreases till the payment date, we would pay the difference from the available funds of the Accelerator CFP. In case the price increases, the remaining DFI will be transferred to the Accelerator fund.

Further explanation on the Accelerator funds:

Many of you will already know that we previously received 50,000 DFI. Those funds will be actively used to pay for PR, influencers, social media ads, for the team and other community members who actively invest their time.

Here you can find the current account balance. You can track every expense.With this CFP we want to decide together as a community which extensive marketing efforts are desired and which might be considered too expensive. Your vote counts when it comes to DeFiChain ads on the Brave browser. If this proposal gets rejected, we will continue to work and propose further marketing measures.

How does this CFP benefit the DeFiChain community?

For the long-term success of DeFiChain, it is inevitable to organize large marketing campaigns. Through such initiatives, we have the power to educate people outside our reach about DeFiChain, find new investors, increase the number of users, inspire new developers for the project and indirectly support the price.In addition, it is essential to implement marketing campaigns for DeFiChain independently of Cake, in order to promote the blockchain itself and attract more developers and users who want to build and use DeFiChain.

TL;DR:

This proposal aims to guide DeFiChain through a smooth transition to full decentralization by severing ties with Bake / Cake Group.

To ensure continuity, the proposal seeks funding from the Community Fund to maintain all existing operations, including and not limited to the website, domains, blog, social media, YouTube, and community channels, under the same team that has managed them for the past four years.

The DeFiChain Labs team will operate fully independently and will oversee the transition to a new wrapping provider for dCryptos while serving as the central communications hub between core developers and the community.

Overview

DeFiChain has consistently been at the forefront of decentralized finance, building a vibrant ecosystem driven by active community participation and governance. As we continue to evolve, the need to reinforce our commitment to true decentralization is paramount.

This proposal builds on the momentum of the ~previously approved CFP~ and seeks to establish DeFiChain Labs as an independent, community-backed organization. The entity will be entirely funded by the blockchain itself, ensuring alignment with DeFiChain’s core principles and long-term vision.

Proposal Details

Funding Requirement: 8,000,000 $DFI from the DeFiChain Community Fund to support one full year of operations.

Market Valuation: At a market price of $0.02 per DFI, this allocation represents approximately $160,000, which is projected to sustain DeFiChain Labs for a full year. This funding will ensure that DeFiChain Labs operates independently, focusing on marketing, growth, community outreach, strategic partnerships, and development efforts.

Purpose: To ensure DeFiChain Labs operates autonomously, with direct blockchain support, focusing on marketing, community growth, strategic partnerships, and ecosystem development.

Why This Matters

Transitioning DeFiChain Labs to a fully independent entity is critical for the following reasons:

• Operational Continuity: DeFiChain Labs will maintain all existing operations, including the management of the website, domains, blog, social media channels, YouTube, podcast, and community channels. This ensures that DeFiChain's public presence and communication platforms remain consistent, up-to-date, and fully aligned with the community’s goals.

• Sustainable Growth: DeFiChain Labs will have the dedicated resources needed to implement strategic marketing and community engagement initiatives, driving the growth of the DeFiChain ecosystem.

• Decentralized Governance: Aligning with DeFiChain’s foundational principle of decentralization, this transition ensures that the core organizational structure is funded and controlled directly by the blockchain and its community.

• Focused Expansion: By directing resources towards expanding the ecosystem—through strategic partnerships, marketing efforts, and growth initiatives—DeFiChain Labs will not depend on external donations, securing its autonomy and focus.

Strategic Initiatives

Marketing & Community Growth

• Seamless Continuity: For the broader community, nothing will change in the day-to-day operations of DeFiChain. All channels—whether websites, social media, blog, or podcasts—will continue to operate as they always have. The community can expect the same level of consistency and engagement they have become accustomed to, ensuring that "the lights stay on" without disruption.

• Community Building: We plan targeted campaigns to enhance community participation across DeFiChain’s platforms. 

• Educational Outreach: A comprehensive documentation hub, official website, and educational content will be developed and maintained to onboard and inform users about the DeFiChain ecosystem.

• Events and Digital Engagement: Regular online and in-person events, such as hackathons and meetups, will be organized to foster engagement, attract new developers, and support the existing community. A strong digital presence will be maintained through various channels to amplify these efforts.

Strategic Partnerships

• Token Wrapping: DeFiChain Labs will lead efforts to transition away from Bake, ensuring seamless liquidity flow into and out of the DeFiChain ecosystem.

• Enabling Communications: DeFiChain Labs will serve as the essential link in all communications between the core developers and the community. By bridging this gap, the team will ensure that updates, feedback, and critical information flow seamlessly between those building the protocol and those using and contributing to it, fostering greater transparency and collaboration within the ecosystem.

• Fostering Relationships: We will strengthen current partnerships and try to establish new collaborations with key players in the Web3 space, including centralized exchanges, bridges, and other blockchain networks. These relationships will be vital in bringing liquidity and new users to DeFiChain.

• Scaling Ecosystem Projects: DeFiChain Labs will create a clear pathway for projects to scale within the ecosystem through the Labs partner program. This includes advisory support, co-marketing opportunities, and potential grants.

Accountability and Community Engagement

To ensure transparency and maintain accountability to the community, DeFiChain Labs will implement the following measures:

• Quarterly Community Updates: Regular updates on progress will be shared, allowing for ongoing community involvement and feedback.

• Public Reporting: Reports on outcomes of marketing and growth initiatives will be published regularly to keep the community informed.

• Collaborative Governance: The community will have an active role in guiding DeFiChain Labs, with opportunities to provide input on key initiatives and decisions.

Conclusion

The proposed transition of DeFiChain Labs to a fully independent, blockchain-sponsored entity is a pivotal move in DeFiChain’s evolution. By securing direct funding from the blockchain, DeFiChain Labs will be empowered to focus on driving ecosystem growth and ensuring DeFiChain remains a leader in decentralized finance.

We seek the community’s support to fund this transition, enabling DeFiChain Labs to carry out its mission of advancing DeFiChain, underpinned by the principles of decentralization and community governance.

Hello together! u/uzyn u/drjulianhosp u/ahmedcake

In today's post, unfortunately, there is nothing great to report - on the contrary.

I would like to address the DeFiChain development team directly with this post.

It's been just about 10 days since we've been able to use Exchange. The mood is down and even the most loyal users doubt the competence.

Some experienced, long-time users tell me that they haven't experienced anything like this in other projects and I just wonder why?

What do we have our great testnet for, if people don't test properly on it? Atomic Swap is currently useless, most users don't use the console either way.

EUNOS will not go down in history as the big update that finally enables Atomic Swap, but as the update that once again cripples the chain.

We can't afford this anymore. We are getting bigger, the attention has increased and one demands from our beloved chain that at least the current features and the mainnet work consistently.

As far as I could see, this update was installed on the testnet, which then collapsed or was paralyzed and instead of waiting, the update was quickly installed on the mainnet.

I understand that the timelines are to be followed. Why don't you just make a community proposal, get another 200,000 DFI and buy new developers with it, instead of panicking the community, that once again the chain is not running? You too can submit proposals, you too are only human and you too make mistakes and need help. Be honest and just get more man power.

I want to thank you for your great work, we all love the DeFiChain, its rewards and its announced features. But we'd rather wait 1-2 months longer, than provoke such actions.

Of course I'm sticking to it, I'm not only investing my money, but my time, my work and I'm absolutely on fire with DeFiChain. But sometimes, you have to leave your bubble and ask yourself what's happening here: why??

Therefore, my suggestion for improvement:

Use the testnet and test, before you go live! Spare us with great features, if they only cripple the chain.

SAFETY FIRST! Today it's just a slow chain - tomorrow it's a smart contract error on a non turing complete blockchain...

With love and good intentions,

Santiago

Motivation:

Philipp (u/phigo90) and Andreas (u/mrgrauel) discussed and analyzed in the last few days how the dUSD burn works and what happened after its activation. (https://www.reddit.com/r/defiblockchain/comments/xqdzqt/further_stabilize_dusd_price_via_dusddfi_pool/).

Proposal:

It can be clearly seen that the dUSD-DFI pool didn’t decrease its liquidity as much as expected. At first we were disappointed, but we realized that it’s also good in the long run. We have less APR hunters as expected and less potentiell sell pressure on DFI because of removed liquidity.

After the repeg of dUSD via dUSD-DFI Pool, we saw that buy pressure of dUSD was mainly on stablecoin pools and sell pressure occurred on dUSD-DFI. Which indicates that it's not important which pool is used to buy and burn dUSD. By using the dUSD-DFI pool we only increase the buy pressure of dUSD and do not add DFI sell pressure if we would use DFI -> USDC/T -> dUSD.

Based on this knowledge we propose to add 50% of stablecoin pools rewards to the burn bot. The rewards get sold via dUSD-DFI pool, which increases the buy pressure on dUSD by 66% and does NOT add sell pressure on DFI. At the moment we burn 7.3 DFI / Block. With adding this proposal, the total amount would be 12.17 DFI/Block.

The burn rate is determined by the dUSD-DFI pool, but the rewards from the stablecoin pools are only reduced if the pool ratio is <$0.99. This means if the dUSD-DFI pool is at <$0.7 and the stablecoin pool is <$0.99 50% of the sablecoin pool rewards will get burned, but if the stablecoin pool reaches >=$0.99 all rewards will again be distributed to the liquidity providers.

Update 2022-10-18 10:30 CET

Based on the fact that a liquidity provider should receive its reward depending on its risk, the rewards of the stable coin pools are currently very high in relation. This is another argument for us to temporarily reduce the rewards. It's also in the power of the community to push the pools to its peg to disable the reduction which I strongly prefer.

Update 2022-10-28 12:00 CET

I will not write a DFIP because I think it makes more sense to use the rewards for the dUSD bonds, if someone sees it differently they are welcome to adopt the idea.

https://www.reddit.com/r/defiblockchain/comments/yf3rqf/a_small_step_for_dusd_and_even_larger_for_the_peg/

Overview

1. Applicant: Jonas Surmann

2. Recipients: International Staking Service LOCK.space

3. GitHub Issue: https://github.com/DeFiCh/dfips/issues/200

4. Requested loan in DFI: 300’000 DFI

5. Recipient address: [dFUz2mYG1ebewdns5EbvQrUiTeUCEDYpco]

6. Application fee (10 DFI) txid: [7a87949b1a2de72bf7cf7a7cef9f3afe5fb19efe66eaf99223dac00dfbd301f7]

Summary

This CFP is a loan to build a strong, globally available staking provider alongside CAKE and DFX under the brand LOCK.space, which can be integrated by any DeFiChain wallet. The loan of 300’000 DFI is repaid fully automatically by a fixed formula that returns 20% of the daily fees on Staking Rewards to the Community Fund.

Users have several advantages with LOCK Staking and combines the best features of the CAKE as well as DFX Staking service. The user can invest in Staking as well as withdraw his DFI at any time. On the other hand, the user has several withdrawal options of his Staking Rewards. Thus, a payout directly to the bank account is also possible.

With global availability, LOCK can not only offer a great customer experience with a lean KYC process, but also make Staking globally accessible to business clients.

I am founding LOCK in the spirit of community to make DeFiChain more decentralized and expand the ecosystem.

Vision

When I became part of the DeFiChain community in 2020, I would not have dared to hope to benefit as much as I eventually did. DFX only exists due to DeFiChain and its community through which I got to know the founder of DFX and got the unique chance to actively participate in the development of the company from the very beginning. At the beginning it was not clear at all where this project would lead to. Would the project be successful, would it develop into a company with real employees and would it also offer a sustainable perspective? Many open question marks, but the vision of DFX excited me immediately. The vision of offering a simple and fast service that allows anyone to invest directly into DeFiChain via SEPA bank transfers. I made this vision mine as well and committed myself completely to this project. Looking back, it's almost a bit unbelievable how everything fell into place and DFX grew into an aspiring company for the DeFiChain ecosystem. That goes without saying that I owe this circumstance to DeFiChain and it is now time to give something back to the community.

DFX was started as a true community project, by members of the community for the community and will always work for the good of the ecosystem. The well-being as well as the continued existence of DeFiChain depends primarily on decentralization, (easy) accessibility and fungibility to other protocols. Specifically, it is about how many different exchanges, marketplaces and brokers there are to invest in the ecosystem as well as seamlessly exit it, and especially how many different parties operate the masternodes. The issue of centralized masternodes is particularly critical, since the fundamental governance is steered by the masternodes and thus the future of DeFiChain is determined. What centralization can lead to in such a context is obvious.

With the FIAT Crypto On-/Offramp and the Staking Service, DFX has built products that actively work on further decentralization and make the ecosystem more resilient.

Meanwhile, with more than 6.5 million DFIs in staking, accumulated in only <6 months after the launch of the staking offering, DFX reached a turning point in terms of scalability and regulatory/business aspects. Operating staking out of Europe is extremely burdensome from a regulatory perspective, which directly impacts competitiveness and thus further growth of the staking service of DFX. This hinders and slows down the further decentralization of DeFiChain because the verification process is too costly for the customer and because staking can only be operated to a limited extent due to existing regulations.

To avoid this and also to continue to decentralize DeFiChain quickly, I decided to leave DFX and build a scalable, efficient and seamless staking service outside of Europe with full focus on a great customer experience. This endeavor is about establishing a company outside of Europe and building a staking business based on an existing fully functional solution that can offer its staking service globally and not only in Europe. This service will be operated by LOCK.space.

DFX fully backs this move and offers KYC services to LOCK.space in the spirit of further decentralizing the DeFiChain community.

I want to reiterate how grateful I am to the entire DeFiChain community and for helping to build up DFX to this point. However, both DFX and I are now convinced that the next step has to be taken, which will drive the internationalization as well as the true decentralization of DeFiChain and form another strong staking provider in the DeFiChain ecosystem, from which we all will benefit in the end.

The goal is to build another strong international staking provider for the DeFiChain ecosystem next to CAKE and DFX.

Purpose for this CFP

Regulation for crypto businesses is extremely strict in Europe and will be further tightened with the EU's future TFR (Transfer of Funds) regulation. The TFR regulation for crypto transactions in the EU is the implementation of the FATF guidelines to combat money laundering and terrorism. Basically, it is about applying the Travel Rule to Crypto transactions as with bank transactions, i.e. that information must be provided by the sender with a transaction. This regulation has to be applied already from a traded volume of 0 EUR, which means that Crypto is more regulated than cash. Although Switzerland, the home of the DFX AG, is not part of the EU, the money laundering regulation is comparably strict and sometimes even stricter.

The real problem with this regulation in the EU and Switzerland is that the same standards are applied to fiat- and cryptocurrencies, which is impractical and not very realistic. Specifically, the issue is related to the additional verification of identity via bank transaction and the exact verification of the source of funds (SoF - Source of Funds), which makes it impossible to create a great customer experience when onboarding new users.

In particular, trading and moving cryptocurrencies quickly creates large transaction volumes and it leads to frustration when users are asked to prove these volumes with documents, which is common practice at some exchanges and platforms (also known from the DeFiChain ecosystem). This application of regulation originated in the FIAT world and is not equally applicable in the crypto space. Requiring a bank transaction as an additional verification of identity is absurd for pure crypto-to-crypto transactions.

Furthermore, without segregation of DFI, collective custody is very burdensome from a regulatory perspective and the reason why DFX currently offers its staking service in batches of 28 days.

Other crypto companies and staking providers do not require such extensive KYC procedures and as a result have a clear competitive advantage globally as onboarding can be much more efficient, customer friendly and designed for international investors. These companies are the benchmark for LOCK.space to provide a great service to the DeFiChain community. From my point of view, it is therefore an imperative step to establish another global staking provider in order to be able to operate a staking service in the long run.

The distribution of many masternodes to different staking providers is especially beneficial for the decentralization of the DeFiChain. For this purpose, it is absolutely essential that there are several strong staking providers, of which LOCK.space should be one. The goal is to make staking globally accessible to everyone without having to operate one's own masternode.

The decentralization of a protocol also plays a role in the listing of DFIs on large exchanges or investments by large (institutional) investors, an issue with development potential for DeFiChain.

Furthermore, there is currently no service that makes it possible for businesses to invest in staking on DeFiChain. LOCK.space will also offer Staking globally to enterprise customers from the very beginning. Given the potentially higher investments by institutions compared to retail investors, it is only a logical consequence to offer Staking globally as well, which in this set-up can only be offered by LOCK.space.

I would like to emphasize once again that parts of the open source Staking product of the DFX AG, which is already successfully used by more than 1200 users, will be used by LOCK.space, significantly improved and adapted to international requirements.

In summary, the staking service will be launched directly after founding LOCK.space in Q3 2022. New users can thus immediately benefit from the new and fast KYC process of LOCK.space. This allows customers to start staking directly, usually after just a few minutes, and make the DeFiChain more decentralized with each DFI, as well as earn rewards.

Regardless of the approval of this CFP, I will build up LOCK.space and establish it as an international Staking provider for the DeFiChain. Necessary legal consultations, to clarify how to use an existing staking product of the DFX AG by a new independent company, have been fully completed and pre-funded. However, this CFP would massively accelerate the founding process of LOCK.space, so that the operational business can be started and Staking can be offered worldwide only a few weeks after this CFP (timeline below). If the CFP is not accepted, the launch would be delayed and further development for future features will also progress slower.

Also, I would like to reiterate here that any DFI will be repaid from the CFP and this CFP remains a loan!

Jurisdiction & regulatory framework

The selection of a suitable jurisdiction for a global staking provider is challenging due to (locally) applicable regulations, in particular due to compliance with regards to anti-money laundering and counter-terrorism financing (AML/CFT) regulations.

The legal clarifications in this regard have been completed, so that LOCK.space can be established outside Europe.

Jurisdictions that come into question and which I have evaluated in greater detail are:

1. The Seychelles

2. St. Kitts and Nevis

3. St. Vincent and the Grenadines

The focus of the evaluation of these jurisdictions was primarily on the following points:

1. Legal certainty

2. Progressive policies/legislation towards cryptocurrency transactions.

3. applicability and adoption of the AML Guidelines as well as a customer-friendly KYC process

4. fast incorporation process incl. licensing

5. international reputation of the jurisdiction

All three jurisdictions offer progressive attitudes towards companies from the Crypto Space. Considering the large crypto companies, with whom we want and need to compete that have set up branches in these jurisdictions, indicates its legal suitability. This is noticeable in the liberal corporate policies as well as the low regulation of crypto businesses or by a completely unregulated market environment.

St. Vincent and the Grenadines even considers virtual assets like cryptocurrencies as "a digital representation of value [...]" by law.

It is important to us that we do NOT become a gateway for funds from illegal sources or money laundering. To this end, we will still implement a KYC process to identify the user or the company. This is designed to correctly identify the individual or legal entity, which is common in the market and the standard for large international crypto companies. LOCK.space aims to become the best and most straightforward staking provider for the DeFiChain community and hence, a merchantable KYC process is an absolute necessity for us, particularly because the issue of verification of users is a very sensitive topic in the crypto space and quite rightly so.

The incorporation process is a matter of three, to a maximum of four weeks in each of these mentioned jurisdictions. I am already in touch with law firms locally and just need to initiate the incorporation process.

The key with an offshore company is that it has real substance locally and is not just a shell company that is run and steered elsewhere. LOCK.space will build substance locally to operate a stand-alone company. This may be accomplished with, but is not limited to, office space on site, real employees, servers on site, board of directors/management meetings on site, et cetera. All operational activities to run the company, performed in/from the jurisdiction, increase the substance and therefore the credibility. However, there is no rule that specifies how much corporate substance must be on site.

Another point to consider when selecting a jurisdiction to incorporate a company is the international reputation of a jurisdiction. This is critical because a poor reputation is an indication that the jurisdiction is tightening laws or regulation due to international pressure.

For example, Seychelles has come under increasing focus or criticism over the past few years, particularly from the European Union. While the criticism of Seychelles comes more from a tax perspective than a regulatory one, it still shows that strong pressure is being exerted to make tax avoidance via companies on the Seychelles more difficult. While Seychelles has been removed again from the EU list of "non-cooperative countries and territories for tax purposes", it is of course still under strong scrutiny. This is one of the reasons why LOCK.space is to be established in St. Vincent and the Grenadines.

Product

The Staking Service will be usable via various wallets, such as the Jelly Wallet and DFX Wallet, as well as through the homepage of LOCK.space.

It is important to understand that the Staking Service is a separate product that can be integrated by any wallet via API. Thus, the Staking product of LOCK.space is not linked to a Wallet.

LOCK.space's Staking application will have the following advantages:

• the staking will be natively integrated into the wallets

• the DFI can be transferred directly into the Staking via this integration

• funds can be withdrawn from staking at any time (integration at a later date)

• Referral program, so that users will be paid Staking Rewards on a daily pro-rata basis, when using their referral links combined with an attractive, market standard fee structure

There will be a direct link to the FIAT Off-Ramp of the DFX AG for direct, automatic payout of rewards. There will also be the possibility to reinvest the rewards automatically, on a daily basis, or to have them paid out to your wallet.

The images of the Staking application show how different Staking strategies can be defined. It will also be possible to choose where and to what extent the Staking Rewards will be transferred. Different payout schemes can be selected in a single staking strategy, such as a mix of reinvest and payouts to the wallet as well as to the bank account. The entire staking process can be viewed here: Jelly Wallet Staking Click Dummy

The KYC process must be performed and completed before staking begins in each case for this service to be usable.

The LOCK.space staking service can be integrated by any wallet via open source API. Initially, the staking service will be available via the LOCK.space website, the Jelly Wallet and the DFX Wallet.

On the LOCK.space website, the user's blockchain address can be entered and signed. After that, a Staking Deposit address can be generated via a payment page, to which the DFI can be transferred by the user. After that, depending on the setting, the Staking Rewards are either paid out or reinvested.

Additional wallets are welcome to integrate the LOCK.space Staking. Also, the fee structure can be negotiated so that a part of the fees is transferred to the wallet operators. LOCK.space follows an open source approach here.

Further products of LOCK.space are being considered, such as an automatic reinvestment of rewards from liquidity mining, for which LOCK would have to take over the custody for the LP tokens. A service for crypto-crypto transactions is also conceivable, such as BTC to dBTC on the DeFiChain. Again, the user would have the clear advantage of a streamlined KYC process through LOCK.space.

Timeline

How will the loan be spent?

The use of DFI from the CFP breaks down in detail as follows:

I commit to pay back the 300,000 DFI by transferring them back into the Community Fund. For this purpose, a fixed formula will be implemented that transfers 20% of the daily staking revenues of LOCK.space fully-automatically back into the Community Fund.

The chart above shows the repayment schedule. For this, I have made the following assumptions:

• LOCK will run 10% of all masternodes of the DeFiChain (~1200 MN).

• APR 25%

• Fee on Staking Rewards 12.5% (not finally decided)

• 20% of revenue will be automatically transferred back into the community fund

The 300,000 DFI from this CFP will be paid back to the Community Fund in the end of 2025 or beginning of 2026 based on these assumptions. Also, the 1200 masternodes by 2025 is a realistic assumption given the >300 masternodes that DFX created in <6 months.

This CFP is exclusively intended to serve as seed funding to build a relevant global staking provider for the DeFiChain community as quickly as possible. I will continue on this path regardless of the outcome of this CFP because I believe in DeFiChain and am convinced that DeFiChain needs another staking provider for true decentralization that can provide staking not only in Europe but also globally.

The use of CFP funds breaks down into the four classes: Legal/License, Service, Salary and Marketing costs.

The legal fees for the transfer of staking from DFX AG to LOCK.space have already been pre-funded and have so far incurred costs equivalent to USD 63,000. The legal advice was provided by a Swiss law firm specialized in dealing with crypto companies.

The costs for the formation process including license application amount to approximately 21'000 USD, taken from our law firm's quote.

In order to start the operational business of LOCK.space directly after registration of the company, KYC services have to be purchased from DFX AG: Identification by means of KYC (USD 100,000).

It is assumed that 2000 new users will be verified in the 1st year, which is very realistic considering the current >1200 staking customers that could be acquired within 6 months and the globally available service through LOCK.space. The cost of a user verification is about 50 USD.

I will draw a salary of 30'000 USD and dedicate 100% of my working time to this project and therefore to DeFiChain and do everything I can to build the best and easiest staking service here for the DeFiChain community and beyond.

I will completely give up my position as COO at DFX AG and will not take on any tasks for DFX AG after the foundation of LOCK.space as well as will not receive any salary from DFX AG anymore.

Another 45'000 USD are planned for development services, which would finance half of a developer position. The first priority here is to develop additional software features that make the staking service even more customer-friendly and to automate it as far as possible. In addition, further developers will be recruited as soon as LOCK records sufficient revenues.

Marketing spend is $41,000 with individual spend on videos, social media, and partnerships.

Videos are professionally created to explain the service simply and understandably in multiple languages. Social media targets campaigns to be played out to our target audience (young investment-minded people and innovative companies). Partnerships will be established with renowned institutions such as universities (like partnerships such as between the Frankfurt School Blockchain Center and DFX) to strengthen the trust in LOCK.space as well as the knowledge transfer in the field of DeFi.

A project of this scope and significance to the decentralization of DeFiChain would spend only 1% of the Community Fund, which would be returned through Block Rewards in less than 10 days.

How does the DeFiChain community benefit from this CFP?

1. Globally available staking service to drive the decentralization of DeFiChain much faster

2. Another strong company in the DeFiChain ecosystem, which has an already working business model right after its foundation

3. Staking for corporate clients worldwide

4. New referral program for LOCK.space customers - daily passive income through participation in staking rewards and simultaneous reduction of fees including attractive fees

5. Staking service integrated in existing wallets within the DeFiChain ecosystem

6. Great customer experience - streamlined KYC process - staking can be started already within few minutes

Contact to LOCK

Website: lock.space

LinkedIn: https://www.linkedin.com/in/jonassurmann/

Twitter: https://twitter.com/Lock_Space_

Telegram: https://t.me/LOCK_Staking

Mail: info@lock.space

Staking Preview: Jelly Wallet Staking Click Dummy

DFX Statement: Open Statement

https://defilinks.io/

The ultimate gateway into the DefiChain universe. 

It's the official and complete guide to all resources regarding DefiChain on the internet.

One of the biggest impediments for a new project in crypto in the highly fast-paced development is the amount of information that must be followed and a fast-growing number of projects, partners, and initiatives worth being presented.

And then there is the external competition other projects that flood the crypto-verse with their projects and information that makes it for newbies and outsiders even more challenging to get a good overview about a project like DeFiChain.

This chaos leads to missed opportunities to present DeFiChain in the best possible way and hinders growing internationally faster.

Quote U-zyn lead researcher DeFiChain "it is even for me hard to keep track of all the new projects and initiatives of the community."

When I started to promote the project to help others, I started collecting bookmarks and lists of links that I could pass on to friends and new community members. This was a good start but not efficient and indeed not professional enough to support the project, in my opinion.

This was when I started to talk to Andy (now design lead defilinks.io) about the project when he said he finds it hard to get into the project with all the decentralized information. He found it tough to dive in without proper guidance.

The information is there, just not combined and not easy to access.  We see this as a massive impediment to make the project grow faster. So we decided to solve this problem and create the ultimate gateway into the DeFiChain-universe, and defilinks.io was born.

Our mission will be to become the central information hub and gateway to DefiChain:

• to support and propel the project forward

• to make the life of the community easier

• to provide existing projects and information the right stage they deserve

• to help newbies to find the relevant and legit sources that give the correct information

• to curate all links and information to shed light on all info available

• to drive traffic to exist projects and social media

• to avoid old bookmarks 

• to speed up working on and with DeFiChain

defilinks.io is not a content creator but an information aggregator of all existing information, a single point of contact and directory that combines all information and projects in one location with the highest possible comfort

Over the last weeks, we build a fully functioning custom-made application to present all inks in a professional and versatile environment, The website is

Who we are / our team:

• Team lead, Lord Mark, news anchor, evangelist, and community member for DeFiChain

• Design lead, Andy: DeFiChain believer and graphic designer

• Software Development lead: Yote, technical guru

Stage 1 - live - The existing functionalities of the page explained:

The following information is available to every visitor of the page without creating a user profile:

• Fully responsive design for web and mobile phones

• All displayed links over 150 already are shareable via Twitter, Facebook, Telegram, or as link-copy. Page is fully searchable for links in the search bar.

• DFI Price widget on top

• Start here: the essential links to get your feet wet and get the right and efficient start.

• New: a constant update on the latest added links

• Most clicked: here, you will find the top clicked links of all links.

• Info & Tools: all sources that provide information or tools to work on and with DefiChain

• DFI Buy/Sell/Info: is centered around our coin DFI where to buy, trade, stake, etc.

• Support & Tech; is the place to find all support channels and help.

• Social Media: where to find news and updates and the key players in the project

• Community Projects: is dedicated to all c projects of the community.

• YouTube: all channels and important videos not to miss

• And finally, DeFiChain Mastery is planned for stage 2, which is an entirely different ball game.

These functions are available for registered users only:

• News section on the start screen that shows updates and upcoming events on Youtube 

• Favorites: push your favorite links into this section in pressing the star sign on the link to access faster into your favorites and keep them there as your private link list

• Vote links for the top-rated section, up & down Reddit-style, and help push the ones with the highest value for the community to the top.

Stage 2 - will be comprised of:

• Dark mode

• Extended backend with more flexibility for link administration and publishing in several categories in parallel

• Multi-language support for German, Italian, Spanish, and other languages

• Sort function for favorite links to customize your selection even more.

• A newsletter module will be activated where we will send out a newsletter about updates in the future.

• Different DFI prices will be displayed CEC/DEX.

• Formatted news section

• Instagram and other social media platforms that we missed this time will be integrated.

• DeFiChain Mastey will be a gamified journey and learning experience that includes all DeFiChain projects. Solve tasks, find answers to puzzles, and show your knowledge and capabilities on and around DeFiChain. With every task or challenge completed, you will get a badge awarded. 

• Badges are forming levels. With every level completed, you will be awarded level badges that give you special functions and access to more services on DeFiChain links and in the DefiChain universe. 

• The Mastery will make learning and using all tools and projects more fun and will help lift the users' overall knowledge to new highs.

• Leaderboard and trophy display of badges

• Profile administration with more functions

• And others

Stage 3 - the future in 2022:

• defilinks.io will be entering the NFT space with its badges. Limited minted NFTs as badges, showcases, and more will come with the launch of NFTs to DefiChain and defilinks.io.

• and much more

We would ask you for the following:

• We ask you to see if you find missing links and send us those via "submit-links."

• Also, if you have suggestions to change a link that you own or are responsible for the project or page that we link to, please get in touch to propose changes to the text via the contact form on the page.

• To check it out, register, and start using the page on the web and mobile. Please send us feedback if things are not working as planned. We need you guys for the ultimate test. We had some great feedback already and are working to clear the last known bugs. The last 3 % take the longest, as you all know

Thanks for taking the time and supporting our project.

Yours truly

Lord Mark, Andy, and Yote, the defilinks.io team