We would like to tell you about the AMA session with Compounder Finance, represented by Mr. Shammy.
Shammy is the marketing and community lead for Compounder Finance.
This AMA took place on 16th November at 01.30 PM UTC. The total Reward Pool Was $40 and it was split among 2 Winners.
Q1. Could you please introduce yourself and tell us how did you get involved into Crypto?
I am a frontend developer, I working on a lot of the compounder interface that you interact with. My background is in marketing, branding and UX. I started with crypto about 4 years ago — and realized that I’m a terrible trader, but have a lot to offer from the product/project creation side.
Well I was on the beach and some guy told me to download MyCelium wallet, and send me $20 worth of BTC — since then I was pretty sold. I never had a comfortable feeling in my stomach about the fiat economy. This got me into Crypto and here I stand now.
Q2. Could you please give us a brief description of Compounder?
So you guys have full access to our medium, please go through it (https://compounder.medium.com/compounder-smarter-farming-7771e6bfb45d)
Though if you can imagine Yearn and Harvest as a financial product. They are offering profit strategies, so that you can earn compounding interest on your deposited assets.
What we have basically done, is cloned these strategy pools — the most effective and appealing ones in the current ecosystem — whilst also adding CP3R emissions on top. We also have a community DAO which accumulates from withdraw fees and CP3R emissions. This will be used for improving the protocol, through governance and proposals.
Right now we have some of the top yielding compound pools for: ETH, DAI, USDT, USDC, YFI, UNI. We also have CP3R token, and CP3R-ETH LP pool.These earn from strategies such as yearn, compound, dforce — which compound your interest. If we removed the CP3R emissions, you’d still be making money on your assets.
Q3. What is the tokenomics of Compounder Finance? How many tokens for each pool have you allocated?
We have a hard cap of 1,000,000 CP3R. At the moment, the circulating supply is 14,000 CP3R. The pools are allocated as such (for 30 days)
CP3R-ETH LP — 30,000 CP3R
CP3R token — 20,000 CP3R
WETH, DAI, USDT, USDC — 10,000 CP3R each
YFI, UNI — 1,000 CP3R each
So in saying this, the total supply right now is 92,000 CP3R
Emissions happen as rewards as farmed — from these emissions:
- 80% for liquidity providers
- 20% to the Compounder team
Compounder DAO rewards come from:
- 5% fee on interest-earned through strategies (not deposited asset)
- 0.5% withdraw fee on Compounder pools
I want to take this opportunity to talk about the 20% CP3R dev fund.
We have noticed a large issue right now is that we are lacking liquidity. We know that we can get decent liquidity naturally without changing the mechanics, as we are lacking exposure now. So we have been brainstorming a great idea to earn exposure and also liquidity at the same time — while also providing trust by offering the whole dev fund for the protocol.
So we will be running an LGE — a liqudiity generation event, where you will deposit ETH only. This will be help over 7 days for example, the earlier you deposit, the earlier you will start earning CP3R.
How will this supply liquidity? We have a 20% dev fund from CP3R emissions — which is basically 20% of CP3R supply. We are putting this up for grabs, so your ETH will be matched with same value CP3R in the LGE. So you will double your money instantly upon deposit.
The catch is. This LGE will earn liquidity (LP tokens) for the new locked CP3R-ETH pool. So you double your investment instantly, though your LP is locked in our contracts. The locked CP3R-ETH LP pool will earn much higher emissions than the current CP3R-ETH pool.
And so, we will be able to break the bottleneck of our liquidity lacking right now. And also we will be allocating a decent amount of the marketing fund for the LGE launch. We are looking to get a re-launch basically, and make it bombastic. While providing 100% of the dev fund for liquidity locked.
Q4. What the term “compounding interest” means to an average joe and what is the mechanic of strategy for that?
This is not completely sophisticated. When you are farming your assets in a interest-bearing strategy pool, you are earning that asset back (eg. deposit DAI, and earn DAI back) — not a token from a new project, like SUSHI for example. Your deposited asset earning nothing. So how we have compounding interest — is that we piggy back from safe and secure interest-bearing strategies. For example, as you can see here:
We use curve.finance, dforce, YFI strategy, compound.finance strategies right now, which are earning interest for your deposited asset. Now in terms of compounding your interest.
A lot of farms, you will earn a reward and then you will be able to claim it. Your deposit is static and will be the same as when you started. eg. deposit 10 ETH and then 10 months later, you still have 10 ETH.
What these profit strategies offer, is that it will re-invest your interest, BACK into your balance. So for Compounder for example:
You deposit 100 DAI, that DAI will earn 20.39% APY currently in our pool. That reward is put back into your wallet. So if you earned 1 DAI, in one day, the next day you will have 101 DAI earning 20.39%. And with compounder you will also be earning CP3R emissions (currently 23% as well as 20.39% from curve) on top of that.
Yeah honestly, it’s all about that compounding interest, and thus a protocol is born.
Q5. Was there any presale event for CP3R? If so, what was the reached hard cap?
No VC, no pre-sale, no pre-mine, no funny business
So, total circulating supply at launch was 0 CP3R
Q6. Do you have any plan for possible future exchange listing?
Sure — we are a defi project, we are not looking for listings actively but it will happen over time as our trading volume nurtures.
Q7. Do you have any plan to open more farming pools?
We will definitely be opening more pools — we will focus on being the most profitable and leading profit strategies available. As well as ensuring our pools cater to the defi environment and engage new communities. Part of this effort is seen with our YFI and UNI pools, just need to gain more traction and trust on this end. I would like to take this chance to talk about something really cool coming up with Compounder pools too.
So at the moment we have plans to relese the following pools:
wBTC token (read below)
yCRV, RENWBTC (curve.finance strats)
Uniswap LP pools (possible, depending on demand)
Currently ETH does not have a strategy, it is just earning from CP3R emissions currently. We are currently building something really neat.
We will be using Harvest.finance ETH and wBTC staking pool — as a strategy for ETH and wBTC. So our pools will earn interest by earning ‘FARM’ and selling it for either ETH and wBTC — and also providing CP3R emissions like other farms.
Q8. Now a day we could see lot of rugs in defi space. Even tokens with 1 month of good growth are being rugged. How could you bring people trust in building your tokens and platform? What ideology you put forth the people to make this a rug proof mechanism?
Absolutely. So this is the number one focus right now, as money will come where the trust is vivid and clear. As discussed earlier, what we can’t change is to stay anon due to local financial product restrictions.
What we can do is take as many steps as possible to ensure that people can TRUST our protocol. Some measures we have taken already is 24-hour time locked the token contract and every strategy pool.
Time-lock means that you cannot make any changes to the protocol without having it deployed in the time lock for 24 hours. This provides transparency and also protection from sudden movements like minting and selling liquidity.
Furthermore, we are looking for a multi-sig council. This will involve needing other candidates to be a part of every process/change made to the protocol. Examples of great candidates would be box mining or Josh Rager.
However this process is a bit of a doozy, because trust works both ways in this respect. If they cannot be active and contribute to the project, then the protocol cannot make any changes or improve/adjust.
Another question is about TVL pull. We clone our strategy pools from yearn and compounder, and offer people to use diffchecker to analyse the differences in the code. They are unruggable, as much as they are for compounder and yearn. We have just added CP3R emissions to these protocols and essentially act as an aggregator for the most popular and best yielding assets in defi.
We actually have an audit being arranged right now — but cannot confirm right now until the devs come online to discuss. And we have passed an automated audit for bad practice and vulnerabilities.
Q9. How do you create a buying pressure for your token? As you know, a main problem in farming tokens is their exploded supply which results in huge price dump. We had many farming tokens with complete failure. How CP3R creates demand so I as an investor would be sure that there will be always a buying pressure?
Of course, inflationary farms are not dead. The thing about CP3R is it creates a very sturdy ecosystem — without the CP3R emissions, you would still be earning the most competitive interest available in defi.
This is tested — we are essentially a clone of HARVEST. Though we have added the compounding-interest strategies of YEARN. Both these projects are thiriving because of their relevance in the market.
We also provide CP3R farm which dampens dumping, and CP3R-ETH LP pools has outstanding rewards which develops demand. We will also be doing our LGE for locked liquidity, to heavily reduce dumping.
The best way to combat this is through consistent marketing and ensuring allocations and strategies for cutting-emissions are tested and thorough. As a team we have a lot of experience on sustainable tokenomics.
Even further than this, abundant and competitive APY pools will ensure that we are relevant and consistently create a stronger ecosystem, more token holders, more TVL for Compounder.
Once we gain momentum, and a bit of velocity. We should be in a really good spot. The LGE is going to provide the essential liquidity for the apes and degens to hop on board.
Q10. The $CP3R token currently depends on the Ethereum platform! However, the Ethereum Blockchain currently has a lot of scalability issues! Then, what are the main reasons behind choosing Ethereum, not another blockchain?
Well, we should transition right over to ETH 2.0 network.
Q11. All platform that use a SWAP mechanism, must affront 2 issues, the low Liquidity ( that cause Big spreads between orders) and Slippages, so can you tell me how you will solve this intrinsic limitations?
We will run an LGE, liquidity generation event. That will yield an instant 2x on deposit profit.
Q12. NFTs are trending nowadays & I look at the CP3R token currently depends on the Ethereum platform! As we know Ethereum Blockchain currently has a lot of scalability issues! What is the main reason behind choosing Ethereum instead of another blockchain?
We are looking for hard profit, not trends. We may introduce NFT if the community wants, our creative team is dope.
Q13. What is your strategy for building a strong community? Do you agree that the power of the community will lead your project to develop globally? What services do you provide to the community?
We are doing this by offering governance token staking farms, like UNI and YFI. You can’t find better APY for these tokens. We hope that we reach out to these audiences, and they will dabble will the governance token pool — then ape in the rest of their staked assets into our protocol for better APY.
Q14. With the abundance of projects going for core like qualities, are there any interesting new features that the team plans to implement to make your system more attractive to investors?
We are nothing like CORE, but we will introduce the same style LGE for liquidity and also lock our LP like them for one of our pools
Q15. What’s your next development step? What do you want to achieve next year 2021?
We want to be developing our own cutting-edge, bespoke strategy contracts. Right now we are utilizing other secure and proven strategies to ensure that our early investors are looked after and funds are safu.
Keep an eye on the project, we have a lot coming up. The LGE is going to be a damn blast, would be good to see some early investors get in.
Otherwise, go ahead and play around with our pools and see check out our strategies on the website which outline the APY for the compound-interest and the CP3R. Get a hang of it, there is no risk of IL or loss in farming your assets.
And thanks for your time everyone.
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