Centaur’s & CryptoDiffer’s AMA questions answered.
On the 28th of September; 10:00 AM (UTC) — CryptoDiffer held a successful partnership with Centaur for an informative live AMA (Ask Me Anything).
With our Co-Founders James Hong and Mark Harris leading the way — our inquisitive users together with the CryptoDiffer community took up this opportunity to get answers for their burning questions; covering all aspects of project Centaur.
Below, you will find all the successful questions, together with their respective answers listed. We thank CryptoDiffer for this expansive opportunity as well as our users alike for being such active participants in the AMA!
Q1: Can you introduce yourself to our community?
A1: Hi, I’m Mark, I’m the Co-founder of Centaur and I lead the business development team in UK. I have over a decade of experience in the FinTech space mainly managing payments, forex and bridging loans. I’m James, co-founder of Centaur. I am a serial entrepreneur that started in the Maritime industry a good number of years ago but have since transitioned into deep tech and fintech. By leveraging on the networks I’ve established over the years across Southeast-Asia, I spearhead the integration of blockchain technologies into emerging industries to drive digital transformation and digital banking solutions. At Centaur, I manage most of the business development efforts for the Asian region together with our Singapore team.
Q2: Can you briefly tell us what is Centaur in 3–5 sentences?
A2: Centaur is working towards being the bridge between decentralized and traditional finance by tapping on the strengths of both aspects. We are hoping to create unique solutions that expand the current use cases of DeFi, while remaining transparent and accountable in our approach and protecting the interests of our community and our investors. One of our first steps will be to resolve the over-collaterised loans situation that is currently prevalent in the market as this restricts liquidity and prevents the market from being fully efficient.
Q3: Let’s now talk about the milestones you have achieved
A3: On the technical side, we have successfully deployed our liquidity pools on Ethereum testnet and Binance Smart Chain testnet. This liquidity pools use zero knowledge proofs (ZKP) technologies to ensure there is transactional privacy. We have also launched our own Centaur Chain testnet based on the Cosmos SDK and we’re looking to do a main net launch by Q1 2021. One of the collaborations we are working on is the Elrond eGLD liquidity mining program, where eGLD holders can stake their eGLD for 2 weeks on the Elrond mainnet and earn CNTR (ERC20) tokens on Ethereum. This program will be a pilot test for our future solutions, which utilize our liquidity pool and cross-chain capabilities. Beyond that, we will be launching our staking program in mid-October, which will allow CNTR holders to stake their tokens for rewards.
Q4: Centaur was formerly known as ProDefi. Why the change of name? And why have you decided to use an hybrid approach for your lending platform?
A4: We have decided to rebrand to Centaur as the Greek mythological creature accurately reflects the core ethos of the project. We are a hybrid project that seeks to combine the best part of Cefi and Defi, and Centaur is a creature that has both the power of a horse and the intelligence of a human. For the second part of the question, we have chosen to do a hybrid approach because we feel that accountability is something that is preventing a the mass adoption of the crypto and we believe that this is something that needs to be addressed for real-world adoption.
Q5: I see many prominent partners who have collaborated with Centaur like Cosmos SDK, eGLD, so what goals will you achieve with them?
A5: We’re working with strong protocol partners such as Elrond to bring DeFi solutions over to their blockchain and integrate them with our larger DeFi ecosystem. By deploying our liquidity pools and oracle networks on as many platforms as possible, we will be able to interconnect multiple DeFi ecosystems and networks and work towards increased adoption of DeFi and digital banking solutions.
Q6: How is the CNTR token used? How to keep motivated to hold CNTR tokens for a long term?
A6: CNTR will be used as gas on our Centaur Chain main net and also to support our community and ecosystem contributors via staking rewards, oracle rewards and as collateral for our lending and other DeFi solutions.
Q7: Regarding CNTR Public sale, why limit to only 500 tickets? Are you indirectly chasing people away from participating in your public sale?
A7: The team had certainly had this consideration, but ultimately we want our public sale participants to have a sense of involvement in the project’s growth and we believe lowering the ticket size would dilute participant’s interest. It is always a tough call between these two. Hope this gives you a good insight on our public sale format.
Q8: One of the major challenges militating against DeFi mass adoption is barrier to entry. Most DeFi solutions are only accessible to those with high level of understanding of blockchain technology. Could you tell us Centaur approach to addressing this issue?
A8: We aim to encourage user adoption through ease of use. This can be accomplished by good UI/UX. The ideal aim is to have front-end users interact with the platform without any blockchain knowledge because the blockchain magic happens at the back without them knowing.
Q9: Why do liquidity pools use zero knowledge proofs (ZKP)? How is this privacy protocol different from other privacy infrastructures?
A9: We use ZKP in our liquidity pools to add a layer of privacy for transactions to and from the liquidity pools. (Do you want everyone to know your wallet balance?) Our privacy protocol implementation uses RingCT to achieve zero-knowledge. There are other privacy infrastructures out there using various different methodologies to achieve zero-knowledge, but we have experimented and came to the conclusion that this implementation has the best balance between security, speed and gas fees. (On-chain ZKP proofs/verification uses a lot of gas!)
Q10: As Staking is Becoming Popular, How can Anyone stake CNTR Coin? & What benefits will they get?
A10: We’ll be launching a staking program for CNTR (ERC20) on Ethereum after our public sale. This will allow our community members to stake their CNTR for rewards of up to 60% APR. Over time, we will upgrade the liquidity pool to accept other tokens such as USDT and enable those options in our DeFi solutions.
Q11: At the moment, What’s the ‘’biggest’’ challenge you face currently in terms of becoming a successful project or company?
A11: The biggest challenge currently is ensuring that the solutions we are pushing out remain compliant with jurisdictions around the world especially with the uncertainty surrounding how many countries are choosing to regulate cryptocurrencies and the underlying blockchain. The regulatory challenge is one that is faced by all DeFi projects. Fortunately, our semi-centralised approach as well as our financial institution partners around the world guarantees that we have a leg up over our competitors in the space.
Q12: What is the release schedule of tokens? Am I able to participate in the network during the one-year holding period? What jurisdictions are eligible to participate in the sale?
A12: Details of the release schedule and token sale can be found at https://medium.com/centaur/centaurs-transparency-report-7014ffdf048b
Q13: What is your solution to solve the problem of overcollateralized loan? Keen to share more details about it?
A13: We intend to resolve the over-collateralization by accessing the lenders through traditional credit reports that are available to us via our wide network of traditional financial players, we will however keep the interest decision and the liquidity pool decentralised. This is definitely not an easy initiative, hence we will roll this out in countries like the UK/Singapore where credit records are highly reliable and default rates are low. As user on our platform gains credibility on our platform, we can then slowly steer towards their on-chain reputation for future borrowing.
Q14: Why would loan approval and issuance go through a centralized KYC and credit review process? Isn’t this against what DeFi actually stands for?
A14: Centaur firmly believes in the ethos of decentralization. However, a purely decentralized approach to lending ultimately restricts lending to very niche use cases such as over-collateralised lending, which in turns allows borrowers to either short crypto-assets or trade them on margin.
Q15: How do you aim to mitigate the risks of loan default which is constantly increasing among borrowers?
A15: As the current industry is still in the nascent stage, other use cases such as unsecured lending remain impossible. By approaching the problem from a semi-decentralised angle, settlement of transactions can be performed in a decentralized manner on the blockchain whereas the credit review and KYC can be conducted on a centralized manner. This allows us to tap on the strengths of DeFi — transparency and security — while allowing us to build upon the existing financial infrastructure. Eventually, as the industry matures and more transactions are performed on-chain, we expect identity checks and credit reviews to be conducted on-chain, fulfilling the ultimate aim of decentralization.
Q16: In the DEFI space, there are many sectors where the revolution has taken place. Compound in the crypto loan sector, Uniswap in the decentralized exchange sector, Synthetix in the tokenized asset sector. In which sector will DEFI revolutionize Centaur?
A16: The Centaur Platform aims to establish itself as a full ecosystem for all DeFi use-case, we are able to facilitate cross-chain transactions without oracles having to pay high gas fees for providing cross-chain data. This will allow the consolidation of the major chains without barriers.
Q17: Centaur Network supports the Cross-chain transactions through the Centaur Liquidity Pool, can you explain how this Liquidity Pool works? Do we need any fees to do some token transactions on Centaur Liquidity Pool? And what are the additional requirement to use other features on the Centaur platform?
A17: On a high level, we are able to support cross-chain transactions by deploying the Centaur Liquidity Pools onto other chains and using the ZKP along with our Centaur Chain as the settlement layer. Utilizing the Centaur liquidity pool will only incur platform fees (otherwise known as gas).
Q18: Why did you decide to hold your Public sale in form of lottery? Don’t you think this would discourage a lot of people about the project right from onset since the chance of winning in a lottery is very slim?
A18: The lottery format was selected as it is the most fair for all participants. The other options we considered were the possibility of using a FCFS structure but that would lead to a gas war and bot spamming, which would remove a significant portion of our community. The other common alternatives are auctions and their respective gimmicks but that would result in a very large raise from the public sale and potentially overvalue the project. We have worked out our finances very clearly and carefully and we know exactly how much funds we will need, with no intention to just raise as much as we can from the current hype.
Q19: What oracles will Centaur use to get accurate data? How will Centaur prevent oracles from providing false information?
A19: There are two common types of oracles, off-chain data feeds (market data) and cross-chain data feeds. For the former, there are a large number of established oracle solutions right now and we have already initiated discussions with a few of them. More information will be published in the coming weeks regarding the partners. Beyond that, the cross-chain data feeds will be deployed by our team initially after significant research and development but we also have plans to work with partners to set up nodes to manage them. In all situations, the data feeds will definitely have to come from a network of oracles as opposed to just one or two trusted sources to ensure data integrity.
Q20: Does Centaur have any Coin Burn / BuyBack systems or any Token Burn plans to increase the value of tokens and attract investors to participate in investments?
A20: There is a fixed limit on the total supply of CNTR (6,000,000,000) and the burning of tokens is included in the initial ERC20 contract we deployed for CNTR. Although we do not have plans for such programs at present, the possibility for it definitely exists in future. More importantly, we believe in distributing these tokens to strong community members or ecosystem partners to drive more value to the network and our solutions, as opposed to just burning the tokens or buying them back to drive the price up.
Join the revolutionary shift in the global paradigm! For more information, please take at a look at our:
- Official Website [https://cntr.finance/]
- Telegram Discussion Group [https://t.me/OfficialCentaur]
- Telegram Announcement Channel [https://t.me/CNTR_ANN]
- Twitter [https://twitter.com/OfficialCentaur]
- Whitepaper [https://cntr.finance/docs/whitepaper.pdf]
- Testnet Block Explorer [https://explorer.cntr.finance/]
- Liquidity Pool (Ethereum Ropsten) [https://liquidity.cntr.finance/]
- Medium Page [https://medium.com/centaur/stories/published]