deFIRE AMA Re-cap
On June 17th at 17:00 UTC, we welcomed Elliot Hill, Communications Advisor from DeFIRE, to our telegram channel to answer all questions you might have about the DEX aggregator.
Our AMA took place just after the news that deFIRE was going to issue wrapped tokens for Cardano and Ethereum tokens. However, we learned a lot more than that. Read on for a summary of the most important things discussed.
Question: What is deFIRE, and what is it trying to achieve?
Elliot: “Sure, great question, a nice way to kick-off! So, the ultimate goal of deFIRE is to build an entirely decentralized order execution engine while retaining the cross-chain nature of order settlement and to do so in a cost-efficient manner. We have chosen to build a decentralized order router and a DEX, also delivering intricate tokenomics design on top.
One of our most unique features is the tokenomics of deFIRE’s token, cWAP, which provides the perfect economic incentives for our users. Plus, at its core, deFIRE provides its battle-tested know-how of low latency order routing. The robust internal matching engine system provides unmatched execution speed and quality, while the routing engine enables access to deep cross-venue liquidity for the actors seeking execution (i.e., traders, casual and institutional alike) involved in our ecosystem!
I think deFIRE’s solution is super cool. 😎”
Question: In your opinion, what are the benefits of DEX aggregators in the current climate?
Naomi: “I think regardless of climate, especially for traders that trade more frequently or institutions with bigger orders, using an aggregator makes a lot of sense.
This gives them access to a handful of DEXs, and their order automatically will be filled at best conditions without the hassle of going through every DEX one by one.
And as DEX volumes increase, more and more DEX pop up, so it’s useful to have a tool that gives you access to all of them at your fingertips. I mean, DeFi is quite hot these days, and DeFi for Cardano is just getting started. 🔥”
Question: Why did you choose to build on Cardano?
Elliot: “Well, the Cardano ecosystem is a sleeping giant, ready to awaken in just a few weeks with the launch of smart contracts through the Alonzo hard fork.
deFIRE itself was born from a natural need to serve this rapidly growing but underserved native token ecosystem on Cardano. As some of you may know, native tokens on Cardano are like ERC20 tokens on Ethereum — they can be minted and traded and used for many projects, except due to the way the underlying token logic is handled, they are much more efficient.
However, to date, because of how new the native token ecosystem is on Cardano, there are still insufficient tools to facilitate the trading and liquidity of these tokens. That’s where deFIRE comes in — the first decentralized order router for DEXs and Cardano.
Cardano as an ecosystem will be huge… and we will serve it!”
Question: Naomi, where do you see the Cardano blockchain network evolving in the next 2 years?
Naomi: “Well, it seems that they are finally ready to make DeFi on Cardano a thing. I know academia usually takes longer to bring things from theory to practice, but it looks like we’re on track to see the first DeFi projects on Cardano soon. 🤓
In 2 years, I’d expect them to have grown their own ecosystem and potentially be competing with DeFi on Ethereum.
However, we will also have to wait and see how the Ethereum Upgrade to PoS plays out — and then there’s also Bitcoin Defi btw, I expect lots of bridges to be built.”
Elliot: “Occam.fi just finished building their Ethereum <> Cardano bi-directional bridge, and deFIRE have used that infrastructure to created wrapped ADA for use on Ethereum and vice versa. Read more here:
deFIRE to issue Wrapped tokens for ADA (ADA20) and Ethereum (CNE)
The deFIRE team is pleased to reveal the beta release of our wrapped ADA (ADA20) functionality, which will wrap and…
Question: What is the use case of your token?
Elliot: “Glad you asked! cWAP offers its users several benefits and mechanisms for deriving long-term value, these include:
- Liquidity mining: Order flow originators are entitled to liquidity mining rewards on a pro-rata volume-weighted basis. In layman’s terms, traders get cWAP-denominated rebates for routing orders through deFIRE;
- Staking: Certain order flow originators can stake cWAP tokens to receive referral rewards. Staking cWAP irrespective of order flow origination entitles those who stake to receive trading fee redistributions on a pro-rata basis.
- Participation: Order flow originators need to stake cWAP to make their pools eligible for order routing.
There will be more tokenomics as we grow and identify new ways to bring value to our community!”
Question: deFire defines itself as “Hub for Optimal Onchain Execution” What is your “optimal” word description? Does it cover all issues like speed, fees, etc?
Elliot: “Optimal, in this case, is very simple. deFIRE’s order router makes its way through every single supported trading venue in seconds to bring users the very best prices on their token swaps, making sure that no matter which pairing you choose, you always get the best rate!”
Question: Why did you chose Cardano to develop?
Elliot: “Cardano is positioned to become one of the most successful blockchain protocols in the entire industry. Its academic approach to development, and its focus on formal methods (through the Haskell functioning programming language), lend Cardano to high-liability use-cases, where mission-critical code is necessary, like finance!”
Question: Binance smart Chain blockchain is having high transaction speed and cheap gas fees, Are you planning to launch your main net or switch to other blockchains in the future?
Elliot: “We don’t currently have any plans to launch on BSC. We are definitely interested in promoting interoperability between blockchains, but our core focus is Cardano. As far as we can tell, with the release of Cardano’s smart contract infrastructure, it will blow other blockchain’s away!”
Question: Defire tokenomics is built in a way where originators are incentivized to join. My question is when staking CWAP why not all stakers are entitled to referral rewards? How many tokens do one need and how is tier computed to be eligible for rewards?
Elliot: “Someone has been reading our whitepaper! Thanks! This is a good question. We will have referral mechanisms in the future, this hasn’t been fully implemented to date. We will also be making our ecosystem more inclusive for staking participants of every level, so no matter what your stake you can”
Question: Ambassadors play a very important role in every project, Do you have an ambassador program? If yes, how can I be one?
Elliot: “We don’t currently have an ambassador program, but we are looking for committed community managers who can help our community grow, and remain inclusive. If you think that could be you, head over to our Telegram (link shared at the end of this AMA) and take part in the discussions!”
Question: Southeast Asia is a very vibrant market and many projects developed here so with your project what do you think about Southeast Asia and do you have any plans to develop here?
Elliot: “Very good question. Yes, Southeast Asia is a hugely important market. Our ecosystem partners, Occam.fi, have deep links in this region, and in China, Korea, and Japan too, so we are going to leverage their experience to grow our position here.”
Question: At this moment, which one the most Necessary for your project:1.Investors, 2. Community, 3. Market/Exchange and why?
Elliot: “Can we pick all of them?!?! Definitely all of them. Our token holders support our network, and they are also our community as well. Markets and exchanges are our partners, as we need to integrate with them to bring the best prices on swaps to our community and users. So, these all hold equal importance.”
Question: Almost 80% of investors have just focused on the price of tokens in short term instead of understanding the real value of the project. Can you tell us on motivations and benefits for investors to hold your token in long term???
Elliot: “Our long-term liquidity mining campaign and staking mechanics make CWAP an attractive reward generating and yield generating token over the long term. But beyond that, our token is instrumental in origination for order flow originators, so it will be a self-sustaining ecosystem.”
Question: Do you have a Token Burning plan to increase Token value and attract Investors to invest?
Elliot: “There are no current plans to burn or buy-back tokens. Our tokenomic model is fair by design, and can be viewed in our whitepaper by visiting www.defire.fi!”