FLUX Protocol AMA Recap With Poly Network
On 14th September, 2021, FLUX Protocol (@zero1_FLUX) officially announced its strategic partnership with Poly Network (@PolyNetwork2) on Twitter. Subsequently, the AMA was held on 17th September in the Poly Network Telegram community. The AMA granted rewards worth $500 in total in $FLUX tokens for the top questions selected and answered by the guest speaker during the second “Community Live Questions”session.
From the Live AMA with FLUX co-founder Chris, this recap has been carefully drafted to ensure the full grasp of the information.
Moderator: Poly Network is a groundbreaking heterogeneous interoperability protocol alliance, which has already integrated Bitcoin, Ethereum, Neo, Ontology, Heco, BSC, OKExChain, Arbitrum, Polygon, Elrond, and Cosmos-SDK, and aims to build the foundation for Next-gen Internet (NGI) by enabling greater integration, cooperation, and innovation. Since the launch, the protocol has reached total trade volume of more than $12 billion USD involving more than 270K cross-chain addresses on different blockchains.
Chris: FLUX Protocol is a multi-chain lending and borrowing platform which is already deployed on ConFLUX, BSC, Heco, OEC. More networks will be incorporated in the upcoming month. We’re the first one with the cross-chain rebalance function. Thanks to the collaboration with Poly Network, which enables cross-chain users collateral between BSC, Heco, OEC with just one-click.
QUESTIONS AND ANSWERS IN LIVE AMA
Q1：As the co-founder of FLUX Protocol, what inspired you to establish FLUX Protocol?
Chris: That’s a long story, but here is what triggered it: Looking back at the Black Swan incident on 12th March, almost all cryptocurrencies experienced plunges in a short period, which led to a significant number of liquidated assets on DeFi lending platforms, such a MakerDao or Compound.
One triggers the other, and the Ethereum network was congested with pending transactions. Borrowers could not repay the outstanding borrowing in time, resulting in collateral loss; liquidators could not obtain assets in time for auctions through transfers.
As a result, liquidators and liquidation robots took away vast numbers of unwanted assets at extremely low prices, as low as 0 DAI (~ $0). Instead of repaying the borrowers’collateral value and rebalancing the protocol, borrowers and lending platforms had to endure the massive loss.
Therefore, after witnessing the loss of the borrowers and the platform, we are determined to develop a new lending platform with more generalized asset templates and better collateralization models that could withstand future market meltdowns.
We wanted to shape new standards, redefine DeFi lending as it was and provide Web3 users with a product that is user-friendly, fast, decentralized, and abled to adapt to the fast-paced crypto world.
Q2: What’s unique about the current FLUX Protocol V3 ?
Chris: FLUX V3 is unlike any other lending and borrowing platform out there! No other DeFi platform has cross-chain functionality built in for now! With Poly Network, the cross-chain design is directly implemented into FLUX V3. Users can easily cross-chain their collateral from one chain to another. With FLUX V3, multi-chain DeFi operations are: easier to operate, faster, cheaper, and still decentralized!
Currently, FLUX V3 is enabled on BSC, Heco, and OkexChain with assets available on all networks, such as USDT, DAI, BTC, USDC, and ETH. The costs of cross-chain service fee are low with Poly Network, our partner for the bridging itself. The speed depends on the networks, but since the networks on which V3 is fully enabled are fast, the cross-chaining can be as fast as 3 minutes.
Users can cross-chain their collaterals or supplied assets (e.g., USDT) from BSC to Heco and borrow any other assets that are only available on HECO. But other than this, users can also simply withdraw the cross-chained collateral and do whatever they want with it. Besides, always be aware of your collateral ratio when cross-chaining assets!
Q3: As you shared with us about the history and status quo of FLUX Protocol, let’s also roll into the future! What’s next for the roadmap ? For example, is there an estimated time frame for launching V4?
Chris: Since the beginning of FLUX, we’ve set our target on innovation within the lending and borrowing vertical, specifically, to innovate within. The roadmap has been clear:
•FLUX V1 — lending and borrowing;
•FLUX V2 — leveraged lending;
•FLUX V3 — multi-chain supply and withdrawals;
•FLUX V4 — new generation lending architecture design for everyone
Before launching FLUX V4, FLUX V3 will continue on mainstream networks, such as Arbitrum and Polygon within the upcoming month, and to continue our vision of multi-chain connectivity!
FLUX V4 will provide liquidity to more platforms, both 2C and 2B. It’s under development, but we still want to keep it a secret! It’s always good to under-promise and over-deliver.
Q4: As officially announced this week, Poly Network now partners with FLUX to power new products for lossless cross-chain lending. So why did FLUX choose Poly Network for partnership?
Chris: It’s simple.
1) Poly Network is one of the best cross-chain solutions that has an arbitrary message bridge!
2) Poly Network’s user experience is smooth and straightforward.
3) Poly Network’s team is very collaborative for any project requiring a more tailored approach for bridging.
4) Poly Network supports various assets, like ERC20 or BEP20, and includes an arbitrary messaging bridge for inter-chain communication.
Q5: Last but not least, what security measures does FLUX Protocol have?
Chris: Let me start with a couple of things that we’re doing for the platform’s safety, and more importantly, the safety and security of all users assets.
1) We are currently developing a liquidation robot that includes a suite of technologies for risk assessment, network congestions, chain attacks, contract exploits and more. It has been challenging to develop, and after one year of development, it’s finally in its beta phase. Hopefully, we can share it with the industry in the upcoming month!
2) Our liquidation smart contracts make liquidations easier accessible, so they’re not prone to bottlenecks causing un-balanced money markets.
3) CertiK is our trusted and long-term partner for the audit of all our products. It’s important to us that a reputable 3rd party expert will screen everything we deploy.
4) We use industry-leading oracle price feeds from Chainlink.
If you have studied historical attacks on lending and borrowing platforms, you must have noticed that most of them started with a flash-loan that manipulates the in-house oracle price fee.
The max borrow of a user is close to 20% of the liquidation ratio rate; this means that the user has a 20% buffer of price fluctuation before the user’s assets will get liquidated. Since FLUX Protocol is only deployed on high-performance networks, users will have time to repay any outstanding borrowings in time without the need to worry about network congestions!
All assets listed on FLUX Protocol are reputable crypto-assets that are hard for a small group of people to manipulate, and the collateral rates for tokens are different. If the community thinks collateral rates are too low, their voices can be raised in upcoming DAO votes!
COMMUNITY LIVE QUESTIONS
Note: 5 top questions were selected and answered by the AMA guest in this session.
Q1: A partnership is essential for adoption. Can you tell us what partners you have now and in the future?
Chris: As we are expanding to new networks, we will always have new “chain-specific” partners to work with. The community and team will lead the efforts to decide on the future partners.
Q2: Where can I buy your tokens now and how can I buy them? and what are your current contracts?
Chris: FLUX is deployed on 4 networks, and since the original is an ERC20, there are 5 inter-connected FLUX our there. You can purchase all of them on MXC, or decentralized on Moonswap (conFLUX); Kswap (OEC); MDX (BSC, Heco).
But your can also earn interest + FLUX, but providing liquidity pool into our money markets here: https://FLUX.01.finance
Q3: Can you list 1–3 killer features of your project that make it ahead of its competitors? What is the competitive advantage your project has that you feel most confident about?
1) One-click, low-fee, super collateral bridging via PolyNetwork between BSC, HEco, OEC for now. More to come!
2) Innovative and safe collateral & liquidation rate design
3) Multi-chain deployment of the same lending and borrowing platform
4) All of our code is developed from scratch, meaning, that we never forked anything, know the architecture inside out, and can further buildl on top of FLUX. This is why our product is now in V3!
Yes, we are confident, that once you try us out, you will not want to use other platforms anymore. The product just works as it should.
Q4: Is your platform suitable for crypto beginners? Or does it only appeal to professional users?
Chris: Yes, it’s designed for all crypto experience levels! We have comprehensive instructions for all chains here in our documentation: https://FLUXdoc.01.finance. In addition, you can always reach out to our admins in Discord or Telegram: https://t.me/FLUX01
Q5: While you build your project, do you take into account community feedbacks and demands?
Chris: Yes! FLUX Protocol is built for the community by the community! Always give us your feedback and thoughts! Only this way we can build a truly decentralized product for you guys!
The AMA was concluded satisfactorily. It brought roughly 400 new members to the Telegram community of Poly Network. More AMAs are on their way. Please stay tuned.