Hello, We had an AMA with Unifi Protocol on October 13th, 2020. For those of you who are late to follow or watch, you can read the following AMA recap.
- Twitter Questions
- Live Questions
Welcome to the CryptoFun community, thanks for taking the time for today’s AMA ! We are glad to meet here: @nuljui
Before we start AMA, can you please introduce yourself to the community? @nuljui 😊
Hello Everyone, My name is Juliun Brabon, I'm the CEO of Unifi Protocol and Sesameseed. I co-founded Sesameseed in early 2018, which today is one of the largest communities on Tron, Ontology and Harmony.
We are a very much decentralized team made of community member really, and have been driving the concept of community governance since inception.
Thank you for the introduction 👏😊. Now let's move on to the first segment.
Q1. Could you please describe what is Unifi Protocol in few simple sentences to our Community? @nuljui
Sure, Unifi Protocol is a group of non-custodial, interoperable, decentralized, and multi-chain smart contracts providing the building blocks for the next generation of DeFi development, focusing on building a community-driven ecosystem of governance and innovative DeFi products.
Today Unifi has developed from the ground up a series of smart contracts similar to other Defi Exchanges, that allows for Individuals to provide liquidity and earn a share of the protocol fees in a sustainable way. These are live Tron, and Ontology MainNet today with Harmony Onboarding later this week and others in the near future.
Q2. What are the advantages of Unifi Protocol compared to other alternatives in the Blockchain field?
When building Unifi, we really thought through the existing systems (balancer, uniswap, bancor) and identified some areas we could improve to make the economy surrounding these systems more sustainable. Some of the most important changes we made were to the rewards mechanism, which unlike other protocols happens entirely on chain and is managed by the smart contracts.
This mechanism also allows the value of the rewards that individuals earn to increase over time.
In addition unifi is designed to be a cross chain defi platform allowing communities from different blockchains to easily move into and out of different ecosystems.
Q3. What are the advantages of UP tokens over other tokens? What benefits can be obtained by holding it?
UP token is pretty unique in this space, UP is a 100% reserve token, meaning it is actually backed within the smart contract by an amount of base Tokens (Tron, or ONTd for example).
UP is minted is minted according to a formula of Redeem Value -10%. This means that UP is always backed by more and more base tokens after every trade. On Tron for example, the blockchain launched with a backing of 1 trx per UP, today every up in circulation is backed by 6.25+ trx, and this amount increases after every trade.
The benefits of holding are are baked into the economics, the more the platform is utilized the more the redeemable value of up increases.
In addition to this, at a point in the near future UP will be convertible to UNFI if the holder chooses, which is the unique cross chain governance token designed around our protocol to allow for multi chain governance.
Q4. We hear Unifi is launching a new governance token, and it seems to be your core priority. Can you describe what it is and what it will do?
The Unifi Token (UNFI) is a proof of liquidity earnings token which provides unique trading and arbitrage opportunities, exclusive opportunities access, and global protocol governance. UNFI harnesses the potential of liquidity providers’ UP tokens from integrated blockchains by linking all platforms across the entire multi-chain Unifi Protocol into one global governance token.
As a liquidity provider you can earn the sustainable UP token reward, whos value is designed to increase over time, and you can choose to migrate these into UNFI if you wish to participate in governance activities, which are also rewarded for individual participation.
Q5. Now that the community has adapted to the Uniswap, Balancer. etc, what is Unifi Protocol view on this?and how can Unifi Protocol tackle this to stay ahead?
Defi has already made a significant impact on this industry, I believe it will play an essential role in our future, Its already demonstrated the need to better distribute fee’s (from lending, trading etc) to the community, or individuals holding crypto assets. I don’t think this core concept will ever go away, as its been a promise of the industry, to take control of your finances and earn directly off of it since day 1.
Unifi Protocol was developed 100% in house from scratch we didn't just take what was out there and port to new blockchains, we took the past 2.5 years of community building experience and cross chain governance and designed a new series of Defi Contracts with this in mind.
Its why you see a more sustainable rewards token (UP).
Cross chain functionality and Cross Chain Governance from the start.
Q6. Finally, what are the major milestones Unifi Protocol achieved so far & what are in future pipeline?
Unfi Protocol has Launched on Tron and Ontology, we’ve been expanding these platforms, watching UP grow, and adding new tokens on a routine basis.
Later this week we will be Launching pTokens on Ontology (pBTW, prenBTC, pUNI, etc). We are also launching Unifi Protocol on the Harmony blockchain this week.
these will be followed by another major milestone for the platform, Derivatives.
Following these near term rollouts, we're going to be launching Unifi Protocol on many other blockchains, including Ethereum, and finally launching the UNFI token, which will bring with it our governance platform, rewards model, etc.
SESSION 2 QUESTION FROM TWITTER
Q1. What is your long-term vision about the industry which Unifi Protocol is working at? Are you afraid some day there will be another project with more innovative technology can replace Unifi Protocol? From @ErmatovJohon
I expect there to be more innovative technologies and projects that take advantage of those. Its part of what drove us to build Unifi entirely in house. Some of the key things we’ve done is actually separate functionality by smart contract. Liquidity Mining, pools, trading is based around a long existing concept of Price Discovery, while Governance aspects, the DAO are separate to allow for new proposals and referendums to be added.
the UNFI token and our Cross Chain technology is also build to be modular and allow for improvements.
We are constantly looking at the industry and new technologies to improve our ecosystem, It was actually built with the ability to adapt in mind.
Q2. We often hear that some Defi platforms has been hacked, talking about the quality of the Defi platform’s security. How confident Unifiprotocol to ensure the safety of financial system platform? From @R7Clover
This is so unfortunate, but its true.
We can take a look at some of the most recent hacks, and they mostly happen because though many aspects of the underlying protocol are decentralized, they aren’t completely decentralized an on chain. This is why we’ve seen rewards mechanisms hacked and we’ve seen governance and minting mechanisms hacked.
Unifi has both of these mechanisms built into the smart contracts, there is no server running in the back ground sending our rewards or determining tokens to mint. There is no master login that can manipulate the system in such a way. Its designed in such a way that there are no keys to hack.
To reassure the community that these statements im making are true, we've had Unfi and all associated contracts audited by a very reputable 3rd party (slow mist) and are happy to announce we passed.
Q3. Why did you choose Tron Network for the initial launch? How profitable is this and why didn't you choose ETH? Also, do you plan on developing your mainnet or will you stay with Tron? From @alluzold
We’ve been building on Tron for over 2.5 years. We have a large active community there, we operate as an SR and its 100% compatible with EVM. This makes it very easy to develop, get community feedback, and migrate to other chains in the future.
Ethereum and several other blockchains are in various stages of development, With ETH in particular coming onto main net in the near future.
Q4. I find that Unifi Protocol use 2 token in it's ecosystem : $UP and $UNIFI. Can you tell us the difference between these tokens? And what is the uses case of these tokens? From @untillthemoon
Juliun Brabon :
Sure, UP is our rewards token, its backed by the native token of whatever blockchain its on (e.g. UPtrx is backed by TRX, UPont is backed by ONTd). It is designed to only increase in redeem value, and it can do so sustainably because it is 100% backed by those native tokens.
Its a long Term, sustainble reward token on each blockchain.
UNFI is our Governance token, it is designed to be crosschain, allow users to participate in Voting, Proposing governance activities, and earn more UNFI as a result of their participation. This token ensures the underlying protocol is constantly evolving along with community sentiment.
Q5. Currently #uTrade only provides services for crypto asset trading, Will #uTrade also support trading for real world assets like gold, oil, etc. in the future? From @andrasusin
Its an interesting question,
We know many companies are focused on cross chain data, and off chain data such as Band Protocol. They're doing some really neat things with their oracles actually.
I dont see us directly supporting assets that are not verifiable on chain. Ultimately, our smart contracts are designed around entirely on chain activities, and we want to stick to that core concept.
We may see improvements from some of our partners that allow for future utilities, but its not in the pipeline today.
SESSION 3 LIVE QUESTION
Q1 from @Alison_m2000:
what's so special about unifiprotocol? How are you different from your competitors? With what major partners does unifiprotocol work together? What benefits does unifiprotocol receive from partners? @nuljui
Unifi Protocol was designed from the ground up to be a more sustainable version of existing defi liquidity pool projects, which is why both UP and UNFI exist in the model.
We do have some major partners, including Blockchains, Exchanges, and Communities.
Though we are experts at development and community management where we need help from our partners is in awareness. Unifi is designed to grow, as long as we can make the community aware of it.
Q2 from @ramman4_1:
Token burn is beneficial for any project, in being able to control the number of token circulation and to provide greater incentives to investors. Does your great project unifiprotocol have a plan about token burn? @nuljui
Actually Burning is built into the platform for the user directly.
As i mentioned UP token is 100% backed by the Native tokens on each blockchain. This means when an individual Redeems an UP token, they extract the Native token (TRX, ONTd, ONE, etc) from the smart contract, and the UP token is permanently burned. The more tokens that are burned the faster the Redeem value of Up increases. This is part of what makes Unifi so Sustainable for Liquidity providers.
Q3 from @kartika84:
How does the mechanism of change of Circulation Supply according to Liquidity work? Which factorial does Circulation Supply of $UP depend on ? Could you tell me more about the decentralized ''add'' and ''remove'' Liquidity Token Sale process? @nuljui
This is a little more complicated than we can dive into here, but i'd be happy to discuss on our main channel.
Essentially we rely on Price Discovery, similar to Bancor or Uniswap. The method by which liquidity is added or removed is handled entirely by the underlying smart contract which ensures both sides of the pair are added to not result in a price impact.
Q4 from @julioceazar:
Unifi Protocol has released the Global Governance Model (GGM). $UP and $UNFI token holders will be incentivized to provide services to Unifi through the GGM. How much token is dedicated to $UP Holders?
Great question, Actually 55% of all UNFI has been reserved for participation in our Global Governance Model. Of this there will methods of earning that UNFI including Voting, Proposing or the migration of UP. We have not yet set this value and it will be guided by the Global Governance itself.
Q5 from @Ketz23:
how do you attract investors to be interested in $UNFI ? because some investors only focus on short-term prices rather than long term?
I think its our History and Team.
We've been in this space for a while now, we've proven we can build a community, and proven that we are experts in community governance and smart contract development.
With the right Team, dedicated to a truly sustainable principal (building a community) in an industry with that as a founding tenant, I think that aspect is easier. We arent around for 1 project we've been here for several years, and are built to be around far into the future.
The answer is very detailed and complete, we went through the AMA session, thank you for accompanying me with the AMA session today, and for clarifying Unifi Protocol and the technology and utilities it brings to people.
Thank you so much for the time today everyone, I really appreciate the opportunity to discuss Unifi Protocol here with this community.
Thank you for spending your time with us today 😉 the session was really fun. I wish you a good day @nuljui 😊
MORE INFO ABOUT Unifi Protocol
Website : Unifi Protocol
Twitter : Twitter Unifi Protocol
Medium : Medium Unifi Protocol
Telegram Group : Group Unifi Protocol
Announcement : Channel Unifi Protocol
Bounties : Bounty Unifi Protocol