DefiDollar x Satoshi Club AMA Recap from 23rd March
Hello, Satoshi clubbers Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from DefiDollar and our guest was @sid_31 one of the Co-Founders of DefiDollar. The AMA took place on 23rd March.
The AMA session was divided into 3 parts with a total crypto reward pool of 500$
In this AMA Recap we will try to summarise the most interesting points for you.
Part 1 — introduction and questions from the Telegram community
Mary | Satoshi Club: Hello Satoshi Club! We are happy to announce our AMA session with DefiDollar! Welcome to Satoshi Club
D. | Satoshi Club: our today’s guest — @sid_31 ! hello and welcome to Satoshi Club!
Mary | Satoshi Club: @sid_31 welcome here!
Siddharth Jain: Thank you! happy to be here
eagerly looking forward to interacting with the community
Mary | Satoshi Club: Thanks for visiting us today
We are also excited about today’s AMA
Could you please introduce yourself and tell us more about DefiDollar
Siddharth Jain: Hey Folks! This is Sid, am one of the Co-Founders of DefiDollar
Prior to starting DefiDollar was working on L2 scaling for Ethereum.
Eager to dig into cryptoeconomics and love to unearth insights from on-chain data
I take care of the business end of things at DefiDollar
My Co-founder, Arpit is the tech brains behind the product and is an ex-google, ex-YC Dude
Both of us are DeFi- buffs and love to tinker with new products
Interestingly DefiDollar was born at an ETH hackathon — Hackmoney in 2020
Mary | Satoshi Club: Really?
Siddharth Jain: yup!! We were looking to build something that we could use for ourselves and being big hackathon buffs it was a great way to get feedback and test product-market fit
D. | Satoshi Club: nice! i know lots of cool projects were born on ETH hackathons
Siddharth Jain: DefiDollar ($DUSD) aims to be a risk-insured stablecoin layer for DeFi. We want to provide a safe and stable way for users to hold their assets.
We have dual token design:
– The stablecoin index, pegged to $1 — DUSD
– A governance token — DefiDollar DAO ($DFD)
That being said we are making forways into a lot of exciting spaces — a BTC index with a leading DeFi team
and an option Coin
you can think of us as a satbility labs outfit at the edge of innovation for indices and stablecoin adoption
$DUSD is optimized for peg safety, yield and diversification. The basket approach diversifies the risk, allows more types of collateral to be onboarded and allows us to integrate with yield generating DeFi primitives. The inbuilt protocol mechanisms along with arbitrage helps keep the peg close to $1
Mary | Satoshi Club: You want to bring stability to this wild crypto world
Siddharth Jain: we are definitely trying!
Mary | Satoshi Club: What about DefiDollar team?
D. | Satoshi Club: how many people in your team? or only two for now — you and your co-founder?
Siddharth Jain: We are a group of 6 right now, with 2 people working in part-time capacity
looking forward to adding to our team, so please feel free to DM me if you are good with crypto amrketing or even solidity Development
Mary | Satoshi Club: But your project looks complex! Great job
Siddharth Jain: We are a lean but highly talented bunch of folks working really hard! people ask me if we have 20 people already in the team we just have 6!!
so if you know anyone or wanna apply, you are welcome to DM
D. | Satoshi Club: these 6 working for 20! congrats on awesome team
Siddharth Jain: iI you wanna know more about the core team — head to https://docs.dusd.finance/about-us
hahha i think 10 is a more realistic target
Mary | Satoshi Club: Sure! Also, i am happy that we can see real names
i missed real people
Siddharth Jain: hahhaha yeah we are a totally public team, with open source code and public investors as well!
Mary | Satoshi Club: Oh, it’s very seldom
Siddharth Jain: nothing against anon teams, but just a lil bit easier to work with real names and build in public
taxing for sure, but helps in shipping fast
Mary | Satoshi Club: The same thing
Thank you, @sid_31 for your intro! We collected 6 questions from our community about DefiDollar! Are you ready to proceed or want to add something?
Siddharth Jain: let’s get started
D. | Satoshi Club: thank you for the intro!
let’s do this!
Q1 from Telegram user @JesusFre1tes
DUSD is built with modularity in mind. It is very easy to integrate with DUSD smart contracts. How does this help drive wider adoption of the DefiDollar protocol? I read that DefiDollar handles the concept of meta-assets backed by other stablecoins. What networks and stable currencies back the DUSD? What are the smart contracts that are possible to merge into your protocols?
Siddharth Jain: Great question!
Defidollar is an index of stablecoins.We can add a new liquidity pool to provide access to a particular stablecoin and add it to the index. This is possible due to our modular approach, which enables a quick turnaround to add more pools and diversify the index. We started with the Curve suSD pool, made a fork deployment on Swerve, Replaced sUSD with yUSD.
We are stronger than any single coin and can average out the volatility. Also with our backstop module we can try and deal with the scenario where a particular stablecoin deviates from its peg.
With a modualr design it is easier to add more peaks — liquidity pools to the protocol thus helping make the protocol more resilient. Currently we support the yUSD pool in Curve and leverage the yVaults in Yearn finance to earn yields for our LP’s
we are cuurently built on top of Curve Finance and Leverage yearn finance, that goes on to show the flexibility provided by the modularity and smart system design
we support USDT,DAI, TUSD and USDC for now, with support being added for the saave curve pool to add sUSD as well
Mary | Satoshi Club: Did you partner with Curve and Yearn Finance?
D. | Satoshi Club: so in the future you can support some other stablecoins as well?
Siddharth Jain: this is correct
we worked closely to get the product out with them
D. | Satoshi Club: who decides which stables will be add to your index and which will be exclude?
Siddharth Jain: this is not a vanity partnership, we have actual working integrations with both these protocols
this is currently beign decided by the pools supported, which are controlled by governance
DFD is the Governance token of the DefiDollar protocol It will serve two primary functions:
Mary | Satoshi Club: I noticed
good projects to work closely!
Siddharth Jain: Governance :
The DFD token will be used to make critical protocol decision like the following:
-Whitelist & remove peaks
-Assign peak ceilings similar to the ones in Maker Vaults to balance the index
-Fine tune parameters like redemption fee within a peak
-Decide on the distribution of the protocol income
and the Protocol Backstop:
DFD will be called in to act as the ultimate backstop against volatility. Similar to the fashion in which MKR acts as the last line of defence for DAI.
D. | Satoshi Club: thank you for answers!
Mary | Satoshi Club: Thanks! Ready to go to the next question?
Siddharth Jain: they have endorsed us publically as well
Yearn Finance: https://twitter.com/iearnfinance/status/1365341895212343297
this transition will happen gradually as we keep on adding more pools
let’s go go go
Q2 from Telegram user @Rosane1a8
Would you explain what is the function of a stablecoin aggregator in the ecosystem of DefiDollar, focusing on how it works and what potential risks of the user are being diminished by the use of it?
Siddharth Jain: We are stronger than any single coin and can average out the volatility. Also with our backstop module we can try and deal with the scenario where a particular stablecoin deviates from its peg.
Mary | Satoshi Club: How volatile is your coin now?
Siddharth Jain: with the number of stablecoins ever increasing It is overwhelming for a novice to decide what stablecoin to hold and what are the pros and cons of these different approaches.There are inherent risks with holding a custodial fiat backed stablecoin — See USDT FUD and more.
Also these stablecoins, especially Crypto backed and Algorithmic ones range widely in their volatility profiles, this can be a major deterrent for holders who would want a stable price akin to what they are used to in real life(ignoring inflation).
Metastablecoins like DefiDollar solve both of these above mentioned issues.
DefiDollar is composed of a basket of these existing stablecoins and thus diversifies the holding risk ensuring that your stablecoin portfolio is protected against volatility and avoids systemic risks.
Given the pace at which stablecoins are coming to market, we might see increased fragmentation hindering adoption. DefiDollar isn’t competing with these but can partner and add them to the index — to ensure peg safety and diversification
Mary | Satoshi Club: It really has sense. So, with DUSD i will always have the same amount of money?
Siddharth Jain: DefiDollar has a lot of products
– The stablecoin Index — DUSD — protects your capital
– The Savings Account — ibDUSD — earns interest on your capital
– The DFD Staking Vault — ibDFD — Coumpunds DFD yield
– IbBTC — BTC index which allows earning interest (Not released yet)
Mary | Satoshi Club: If some of the coins that you added to index will crush (hope no), but if… What will happened?
Siddharth Jain: depends how you allocate it, you can put it to work in the savings account
Mary | Satoshi Club: If i will simple hold it on my wallet?
check out the savings account, the APY is juicy
here is a simple step by step guide, you can come into the savings account with DUSD ,USDT,DAI, TUSD or USDC
D. | Satoshi Club: yes, very juicy especially for stablecoin
Mary | Satoshi Club: I like this also
Siddharth Jain: we have a multitiered protection system in place
– Safety Module
– Backstop Module
the system will ensure protection against usual volatility by actively rebalancing, but in case of a black swan scenario — big deviation they backstop module will need to be activated
here are some of the system parameters that you can see live:
Mary | Satoshi Club:That’s really nice! So, protection should work and DUSD holders won’t be affected
Siddharth Jain: that is the intented design
that being said i would never want USDT to fail
Mary | Satoshi Club: I think no one wants
D. | Satoshi Club: this is some impressive grow a would say
Mary | Satoshi Club: Thank you for your answers! Ready to go to the next question?
Siddharth Jain: shoot!
Q3 from Telegram User @konditer_rolex
I found information that your future products will include Interest bearing Bitcoin (ibBTC) on Ethereum, which you are developing in conjunction with the Badger DAO.Tell us more about the new Bitcoin storage standard for earning interest.And maybe share some more interesting developments
Siddharth Jain: steady growth with no mercenary capital but long term users and holders of both DUSD and DFD
hahahha this is something that is coming soon!
can’t release much but this is going to be big big big!!
@konditer_rolex has given some serious aplha leak to the Satoshi Club community
it is intended to do what satoshi club wants to do, help people stack more sats
Mary | Satoshi Club: Yes, we want! Can you tell us approximate dates?
Siddharth Jain: Badger is the leader for BTC on Ethereum and it made sense for us to build this, expected to bring in huge TVL for DefiDollar
give or take a week! but please know that shipping products is dependent on a lot of moving parts
please respect both the teams which are hustling to ship this out asap
Mary | Satoshi Club: Ok, we will wait then
But don’t forget to share this news with us
Thank you for your answers! Ready to proceed?
Siddharth Jain: i will definitely!
DFD is going to get discovered, we have been building for long and leading teams are recognizing the work we are doing to create important infra
we are one of the very few teams from India with a live product — so it is just a matter of time
Mary | Satoshi Club: That’s true! We believe in you
Siddharth Jain: thank you
let’s cover the next question
Q4 from Telegram user @Wormz28
Many questions they’re asking is about the Projects Strength, but I think it’s important also to know their weakness, so may I know if you have weaknesses? If so, how are you trying to solve and improve it? Also are there any risks in using DefiDollar?
Siddharth Jain: i think the thing we need to improve is the coverage, which we are doing now with exposure to communities like the Satoshi Club
DefiDollar is built using the composability of Ethereum, as i shared we leverage Curve and yearn finance directly
D. | Satoshi Club: so more marketing?
Mary | Satoshi Club: One community is covered
but it would be better if you will cover us again in the future! It really works!
Siddharth Jain: We are a heavilly audited protocol, and have always placed safety and security of out users first. We launched with two audits and a capped launch to ensure that.
We believe that although audits reduce the risk by virtue of having dedicated professionals review the code but they do not eliminate the risks altogether.
hence we keep on trying to secure the protocol and think of it as an ongoing exercise
yes indeed, hiring for good operations and marketing folks, as usual DM me
Mary | Satoshi Club: Satoshiclubbers! Let’s do this! I know we have marketing talents here
Siddharth Jain: would love to make an appearance again if you folsk would have us, can invite the badger team for a joint AMA, that would be really cool. let us know
D. | Satoshi Club: nice! and i think designers who can create a good sticker pack, for example, for TG are also welcome? it can help with promo
Siddharth Jain: https://docs.dusd.finance/audits here is a list of our audits and the reports as well for the community to see
can’t have enough stickers and we have a competition coming up as well
D. | Satoshi Club: [
Siddharth Jain: Btw all those yield farmers out there, do check out our yield farms
DefiDollar - App
DUSD is a metastable asset that provides a hedge against volatility.
damn i was hoping we would cross 50k satoshi club members during the ama
Mary | Satoshi Club: Almost
Mary | Satoshi Club: This would be very cool
Siddharth Jain: dming
Mary | Satoshi Club: Thank you for your answers! Ready to jump to the next question?
Siddharth Jain: yes!
Q5 from Telegram user @AmirJosh
I wonder why DefiDollar had no NFT related services. Do you consider adding the NFTs to your possible products because of its continuesly growing popularity?
Siddharth Jain: lol we are not there yet! but we will have a NFT giveaway
we could also issue DefiDollar OG NFT’s for the protocol’s users
D. | Satoshi Club: another leak?
Mary | Satoshi Club: It’s my dream
i am your user
Siddharth Jain: hahahha the satoshi club community deserves it, you know where to join us — @defidollar_community
oh wow! that is great , always happy to meet a user of the protocol
Mary | Satoshi Club: Our members iniw what to do
D. | Satoshi Club: we should break 4k today! Satoshi clubbers let’s do this!
Siddharth Jain: i was thinking like 5k :D
let’s make it happen
D. | Satoshi Club: everything is possible
Mary | Satoshi Club:We believe in magic, but more than in magic we believe in our community
let’s do this!
Siddharth Jain: community is magic
Mary | Satoshi Club: True! And just 6th and last question left from this part
ready for it?
Siddharth Jain: fire away!
Q6 from Telegram user @victorogb
There are numerous projects with stable coins pegged to a host of internationally traded currencies around the world with most stable coins pegged against the USD. Most of these stable coins have proved to be immensely successful with adoption, use and other intricate features. On adoption and acceptance amongst the DeFi space, how does DefiDollar tend to weather this storm and compete favourable over the next couple of months/years?
Siddharth Jain: we have a lot of interesting products coming out!
first one is the BTC index with badger, the second is the options liquidity aggregator — Option coin
We kinda consider ourselves as a maverick team that likes to experiment and kind of think of DefiDollar as “Stablecoin Labs”
The option coin is the result of some brainstorming where we wanted to improve the capital efficiency of on chain lending by incorporating Put options in an elegant way
The key thing we strive for is to ensure that we build products that will be in demand , can be both right now or in the future
to classify ibBTC with badger will take off right away but option coin will need the on chain options space to mature before going mainstream
D. | Satoshi Club: “Stablecoin Labs” that’s a cool name for another project btw
Siddharth Jain: even since launching the stablecoin index we have launched a flurry of ancillary products
there is around 4.5 Million DUSD in the savings account and around 40% of the circulating supply of DFD is locked in the ibDFD staking
super numbers :D, but i might be biased
hahah am sure it is already taken
To read more about optioncoin https://medium.com/defidollar/optioncoin-a0bb65997cb
also it is a great idea to follow us on Twitter : https://twitter.com/defidollar
for alpha leaks all the time
today’s tweet from yearn finance
DUSD is the top APY provider in yearn finance vaults
Mary | Satoshi Club: Already
And that’s one if the million reasons to join DefiDollar
Siddharth Jain: Also i did not reaveal all our partners but key Partnerships inlcude Curve Finance, Yearn Finance, SushiSwap — Onsen,Badger DAO — BTC index, Cream Finance — Iron Bank, Opyn — Option Coin
We are working and building on top of the best in the industry!
check out who we follow on twitter and you’ll know our partners
just 11 right now
Mary | Satoshi Club: Names are really famous! Best of the best!
D. | Satoshi Club: you are definitely working with a big guys
Siddharth Jain: yes and even coingecko
i was on a podcast there recently
Mary | Satoshi Club: Yes, i saw this
it’s fantastic how fast you’re moving!
Siddharth Jain: Thanks for the kind words
Mary | Satoshi Club: And now… I feel the smell of storm
Storm of live questions
Siddharth Jain: it is coming with ibBTC
Mary | Satoshi Club: And this also
our community made this in anticipation, no flying, but if you wanna stack sats, get ready!
Mary | Satoshi Club: Cool gif! We also need stickers
Siddharth Jain :[
Mary | Satoshi Club : [
Wow! I have them now!
Siddharth Jain: you got swag!
D. | Satoshi Club: [
Siddharth Jain: credits to @ceennnk
Mary | Satoshi Club: Guys, i really enjoyed this part!
Are we ready to continue with the second?
Siddharth Jain: go go go
Mary | Satoshi Club:Let’s go
Part 2 — live questions from the Telegram community
Q1 from Telegram user @JoanaZ
I read your Whitepaper and in one part says that DefiDollar is “Curvy”, I really don’t understand this so can you tell us what do you mean with that?
Siddharth Jain: it means that we are building on top of curve finance
Q2 from Telegram user @Indomiekuy
I see that Defidollar also have joint liquidity mining, how many pool do you have ? can you explain how is the calculation reward that user will get from your pool ?
you can find the pools here: https://app.dusd.finance/lp-rewards
Q3 from Telegram user @victorogb
Is DUSD currently tradable, and if not when do we expect it to go live?
Siddharth Jain: it is already live, you can check out this article to learn more https://medium.com/defidollar/farming-sushi-with-dusd-dfd-on-sushiswap-4c675b47b993
Q4 from Telegram user @KhaleesiTheCryptoLady
In which exchanges I can see DUSD now as being paired with other tokens? Can you share to us where can we acquire $DUSD as well as with $DFD?
Siddharth Jain: you can get DFD on sushiswap, uniswap, balancer
DUSD on the same and also on Curve finance
we have some exchnages coming soon
can’t share more details
Q5 from Telegram user @Brainchest
In addition to Playcent, are you planning to enter other gaming platforms? And what are your plans for BSC (Binance Smart Chain)?
Siddharth Jain: watch out our announcement channel for updates, something is coming really soon ;)@defidollarofficial
Q6 from Telegram user @esrarengizbtc
Could you give information about the protocol layer fee mechanism in the DefiDollar system? Also, what kind of rewards are accumulated in the DefiDollar protocol?
Siddharth Jain: great question!
find our fee structure which is deatiled here: https://docs.dusd.finance/faqs#does-defidollar-charge-any-fees-at-the-protocol-layer
The protocol rewards that accumulate on the DUSD LP capital are:
-Trading fees generated on the Curve pools
-The yield from the yUSD Peak
-DUSD redeem fee — 0.1%
-The ibDUSD redemption fee — 0.5%
Q7 from Telegram user @Ambarkhan1
Which areas are your team focusing on at the moment? (DeFi, Stake,Dapps..) and what is your goals in this year?
Siddharth Jain: the major ones are:
– The ibBTC index
– adding the saave peak
– Option Coin
– Stability module for DUSD
more will come but will slowly sahre that after our diligence and research
Q8 from Telegram user @Awkwerrd
is there tokenomics available?
Siddharth Jain: Token release schedule: https://bit.ly/3mzvQSC
everything is public
Q9 from Telegram user @MCBTrade
When calculating the stakeholders’ share of the trading and redemption fees, do you base the total number of DUSD staked or fees from the entire DUSD supply?
Siddharth Jain: the protocol earns from all DUSD , the fee distribution is carried out as detailed here
you get rewards only when you stake DUSD in the savings account or in the many incentivized Liquidity Mining pools
Q10 from Telegram user @Brainchest
You have started a Cover Protocol for DUSD insurance. Is this because you recognize that DefiDolar is vulnerable? In any case, thank you, you have done everything possible to minimize the risks (Cover Protocol, Bug bounty).
Tell me, will you develop other types of insurance? For example, insurance against losses in SushiSwap DFD / ETH pool, if Ether price will fall dramatically. Or a loss of profit, if the pool made less than the planned percentage of profit in a month/week/year. Naturally, depending on the variables (profit %/invested amount/day/month/year…), the cost of insurance will depend.
Siddharth Jain: we won’t have cover ofr impermanent loss, depening on uniswap or sushiswap to do the same
but we will supoort more insurance pools and are already working with teams to enable the same
the one live is with cover protocol
Part 3 — Quiz Results
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about the crypto project. A link to a Quiz form was sent into the chat.
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