Pinecone x Satoshi Club AMA Recap from 16th of September
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 Pinecone and our guest was @jinhowong. The AMA took place on 16 September.
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 Pinecone! Welcome to Satoshi Club
Our guest today is @jinhowong
| Satoshi Club: Hello @jinhowong Welcome to Satoshi Club we’re glad and Excited to have you here
Jin: Hello everyone, pleasure to be here
Hi hows going
Mary | Satoshi Club: Welcome here, Jin
Jin: Thanks for the organization
| Satoshi Club: Fine you are welcome
Mary | Satoshi Club: We are happy to see you here today and are excited to hear more about Pinecone
Jin: I am pleased to provide as much info as i can
Mary | Satoshi Club: So, let’s start
Mary | Satoshi Club: Could you please introduce yourself and tell us more about Pinecone
Jin: About myself: this is Jin, founder of Pinecone Finance. I Graduated from Tongji University with a bachelor’s degree and Oxford University MBA, and currently served as the Secretary General of Oxford and Cambridge Alumni Society.
I have been in crypto world since 2017, and was involved in the founding and development of two crypto projects, including Wabi Project which was listed on Binance in 2017. Before that, I was a business consultant worked in McKinsey.
About Pinecone Finance: Simply speaking, Pinecone Finance is a Yield Optimizer on Binance Smart Chain. We focus on single asset farming. By providing users with multiple farming strategies, including a unique dual layer reinvestment strategy with a hedging mechanism and an anti-flash loan mechanism, we aim to provide users with high returns while minimizing risks.
Other than PCT rewards, PCT holders can also enjoy sustainable income in BNB coming from the performance fee charged for vault users.
| Satoshi Club: good to know that you’ve been in this space for a while and have great experience
Mary | Satoshi Club: 2017 presented industry a lot of clever people
Jin: Not too long, only 4 years, still learning everyday since crypto world is changing rapidly
Mary | Satoshi Club: Yes, i am always impressed with speed of changes in crypto
Jin: And defi only starts to boom for a year
| Satoshi Club: Yes and with Bright minds like you.. we are sure to see more Important changes come up
Mary | Satoshi Club: Tell our community about Pinecone team
who are there?
Jin: I dont think i am that smart myself, my team’s brains are much brighter
Currently there are circa 14 people full time
| Satoshi Club: Team work makes this industry move
Jin: We are a mature team consisting of people with various professional background.
The core members of the team come from Hong Kong, Taiwan, Singapore, US, UK, China and other parts of the world. Each has more than 15 years of rich experience in traditional finance and the crypto industry, and served in senior executive positions in Fortune 500 companies, including CEO, CTO and other C-level positions, industry experience varies from blockchain, Internet, gaming, finance, marketing and public relations, etc.
Other than their experience and expertise, what is more important to me is the integrity and ethical standard of the team members. All the team members are either my childhood friend or long term business partners or colleagues and the team was built based on the shared value of trust, transparency and high ethical standard.
What makes us a strong team is also the synergy and team work. With people from different gender, background and culture contributing to the project, we often see the great creativity and ingeneous solution coming out of conficting thoughts and constant debate. That is also part of the pleasure I get from working on this project.
Mary | Satoshi Club: Is your team public?
Jin: No, only myself is 100% public. As you know, some of the members are based in
China, where the policy to crypto is not friendly.
Mary | Satoshi Club: Yes, that’s true, it’s sad that not all countries are friendly to crypto
Jin: To protect them, I choose to fully publisize my ID so that in case anything happens, I will take the full responsibility
| Satoshi Club: But are there plans of making them public anytime, or adding to the team members who will be public
Jin: As you know in China, actually there is no other defi project has a public founder…
Plan to make some public gradually
If we are all foreign, i will ask all members to be public
in the Wabi project, the core team was public
Mary | Satoshi Club: I see
hope one day this will happen!
Jin: only reason is to protect them from unforeseen gov policies in mainland china
I actually think all defi project should be fully transparent
including team members
Mary | Satoshi Club:
We all think and hope
Thank you for your intro, Jin! We choose 6 questions from our community for the first part of our AMA
Are you ready for them?
Jin: Shoot me please lol
| Satoshi Club: Lets go
Q1 from Telegram user @Asela1112
Currently Users Can purchase $PCT tokens on BabySwap Which is introduced to the market recently. Why did you make a compromise with BabySwap while there are top exchanges in BSC ecosystem such as Pancakeswap? And also by staking PCT-USDT pair, Users are able to earn $BABY tokens. Conversely by Staking $BABY tokens, $PCTs can be earned. In here, how much is the minimum & maximum amounts, Users should have in order to participate in Staking Protocal on BabySwap? What will be the Given APR for PCT-USDT & $BABY tokens Stakings? What will be the claiming periods, Will users be able to redeem the rewrds daily? Most staking protocals maintain a locking period like 15 days, 30 days,45 days, 60 days etc.. What about the locking periods of this Staking event? Can I withdraw my tokens at anytime with extra fee?
Jin: Actually we have good access to BSc from previous Binance resouces. We did talk to Pancakeswap but as you know we currently are still small so there is not much negociation leverage, and we will definitely expect formal partnership with Pancakeswap as we grows. Also Biswap and Apeswap are also in the pipeline
In fact Babyswap is the new partnership we have just formed recently and only launched yesterday. Before that, our token has been listed in Pancakeswp for more than a month already.
For staking Baby to earn earn PCT, there is no minimum & maximum amount in terms of how much you can stake. Currently the APR for staking PCT-USDT to earn Baby is over 400% and staking Baby to earn PCT is over 70% and there is no locking period. You can withdraw your assets or claim profit any time you want. The initial liquidty on Babyswap provided by us will be locked for 90 days.
Better still, if you stake Baby to earn PCT at Babyswap, you can come to pinecone.finance to stake your PCT to earn more PCT with APR as high 115%, and this reward include both BNB and PCT as well.
Mary | Satoshi Club: When Pinecone launched?
Nice APR, btw
Jin: Pct Presale was launched on Aug-9th
Mary | Satoshi Club: Oh, only one month
you’re very young!
| Satoshi Club: will be glad to see PCT on Pancakeswap soon
Jin: actually many things have happend in a month, including the exploit
Mary | Satoshi Club: May be you are going to partner with another smaller than Pancakeswap dexs?
Jin: Pct-Bnb pair is already on Pancake, we will definitely seek more partnership with Pancakeswap
in the short term, yes
Mary | Satoshi Club: We have next question about this
Ready for it?
Q2 from Telegram user @nhairym
Please tell us a little about the security incidents that occurred on August 18, despite the complexity of your security protocol, it could have been violated, protocol changes have been made or have limited themselves to solving the perch and staying alert to any signs of behavior. ill-intentioned, there is the possibility that a similar situation could be repeated, as they can demonstrate to their investors and new participants that they have managed to overcome this bad experience and that they are trained and financially, technologically and humanly prepared to go out to the cryptographic market and demonstrate its solidity and strength?
Jin: I think many users would want to know more about it
Mary | Satoshi Club: Yes, such things can happen with any project but the main thing is to learn the lesson and don’t be afraid to talk about this
Jin : This is a pretty long story and I hope I won’t bore everyone here.
I will answer in 2 parts, 1. what happened and what we did/learned
Mary | Satoshi Club: Of course no, take your time
| Satoshi Club: They are interested in knowing
Jin: 2. how we enhance safety measures in the future to ensure such things won’t happen
The incident happened on 18th Aug shortly after we launched our PCT staking vault. There were some conflicts between our yield opmizer protocol and token deflationary mechanism, and loophole was discovered and abused by one of our early users who managed to profit around 500 BNB (circa 3.5Mn Pct). The PCT price was instantly plunged from 0.095 to 0.037.
We immediately suspended the smart contract and cooperated with the audit firm PerkShield to fix the loophole. After internal discussion overnight, all team members, advisors and early investors reached an agreement to use all minted tokens (total of 4.9 million, 20% of the total supply during that time) to compensate our users, while stabilizing the price of PCT to the level before the incident.
Meanwhile we also took swift action to trace the perpetrator and mananged to locate his hot wallet addresses on Binance, Huobi, Okex. He contacted us on Aug-19 after seeing our publicities urging him to return the fund. After a long conversation with me, he returned all the lost fund. Seeing the way the project team dealing with this incident, he was even more optimistic with our project and continues to support Pinecone in whatever way he can including buying more PCT and marketing for us. Now he is the biggest fan of Pinecone.
This is the first part
I now answer the second part
Mary | Satoshi Club: Wow, this sounds like detective story with happy end
| Satoshi Club: The Team did a Good Job I must say
Jin: His wallets on BSc was also marked as Pinecone Finance exploiter
He did not expect we react so fast
Mary | Satoshi Club: Yes, i see that the end of such story often depends on team actions, fast actions
So, currently how many audits do you have?
Jin: This incident really made us realize once again that safety should be our top priority. Although we set the maximum transaction limit each block, and restrict the access of external smart contracts as a defensive mechanism for flash loan attacks, there are other security risks cannot be ignored. We will adopt more stringent security measures to maximize the security of the protocol, including but not limiting to the following:
• Conduct more smart contract audit by leading audit firms. currently we have finished main contract audit by PeckShield and Beosin, and Certik audit is in the progress.
• Strictly abide by the security work process of code release including adding a role of security auditor internally, and insist on completing internal and external security audits every time a new smart contract is released
• Add PCT token price alert and emergency response mechanisms. For example, if the token price drops by 30% within 10 seconds, the deposit function of the smart contract will be immediately suspended, while reducing the maximum number of PCT transfer limit and turning off all PCT minting mechanism until completing the troubleshooting.
• Launch bug bounty program sometime soon and leverage the power of community to help us continuously improve the security of our protocol
In the process of dealing with this crisis, I had an even greater understanding about the importance of communication. If there is no communication, the blockchain world is just like a dark forest described in the book of Three Bodies. Each of us is trapped in the chain of suspicion, and everyone is likely to become a hunter. Only communication can break this chain of suspicion. This user was actually our early supporter and had invested quite a bit of money in the pre-sale. After seeing our efforts and sincerity in handling the incident, he decided to do the right thing.
Although the origin of the incident was not pleasant, the follow-up development proved that even if we are all strangers, even if there is a misunderstanding, as long as there is kindness in heart and candid communication, it is certainly possible to build trust.
Compared with the traditional financial world, DeFi is still at an early stage of development. In a decentralized world without supervision, trust is so rare and fragile, it needs everyone including project teams, institutions, and users, etc. to continuously strengthen and protect the foundation of trust to ensure the long-term and healthy development of the ecosystem. I believe this is also in the long-term interests of everyone in the Defi world.
Jin: 3 companies so far, PeckShield and Beosin, and Certik
Mary | Satoshi Club: Wow, i apploud to you!
Mary | Satoshi Club: I see, excellent choice!
Jin: Will be more, as you know Auditing can take time
Mary | Satoshi Club: Hope that was first and last incident which happened to Pinecone
| Satoshi Club: Was any Serious Loophole detected in any of these audits?
Jin: There was not much I could do when it happened,
compensate 140%, using own money to bring price back, and trace the attacker asap. Also promised the community that we will not run away. Shit happens, but we need to face it and solve it. Long termly, we need to adopt more stringent safety measures
Mary | Satoshi Club: Thank you for your answers! Ready to go to the next question?
Jin: To be honest, our protocol is pretty complicated. It is a combination of yield optimizer and reflective token. There is a certain conflict between these two mechanism, which is reflected in our newly launched PCT staking pool. If there is no PCT staking pool, it wont be found. So Audit company did not
Sure, let’s go
Q3 from Telegram user @Jamesxmen
You have planned to add a Cross chain interoperability to Polygon network. There were not sufficient details on this headline. So please give a sneak peek about this Cross Chain interoperability to Polygon network? Will you make $PCT tokens as compatible with ERC 20 since $MATIC is an ERC20 token? When will you migrate to other alternative Blockchain networks like Ethereum, Polkadot, Solana? Will there be a cross chain Bridge also that support more currencies including with ERC20, TRC20, BEP20 in 2022 year along with the event of Cross Chain to Polygon?
Jin: When we made our roadmap two months ago, Polygon was a rising star and it was natural to select them as the network we want to add cross chain functionality, especially because Ethereum, BSC and Polygon are all based on ERC 20 standard, which make it easier technically as well.
However things change really fast and we have seen even faster growth in Solana and some interesting development in Ethereum Layer 2 recently. Cross chain is still one of the key development in Q4 in our road map, but which one to go to and how we are going to do it depend on the market environment and the business needs of Pinecone. There is no point doing this just for the sake of ticking the box, as a business, we will have to go to where the ecosystem is sound with more active users, in order to drive the business growth and financial success.
Mary | Satoshi Club: Hm… If tomorrow, let’s say, Cosmos will develop faster than Solana?
Will you think about this opportunity?
Jin: Possibly, it will be based on several measures: 1. the foundations (tps, cost etc), 2. Infrastructure like main dex and lending, 3. users and tvl, 4. technical compability 5. financial measures includingh tokenomics
Mary | Satoshi Club: Gotcha! We will definitely follow updates from you
Q4 from telegram user @Ajpaa
PCT Holders can earn performance fees (30% of the farming profit) produced by Pinecone vaults in BNB, the BNB rewards are distributed once in every 5 days. PCT Holders Simply can go to the website and click “Harvest” button to bag their earnings. Can you briefly explain the concept of the performance Fee and how it works in your ecosystem? How is the performance fees (30% of the farming profit) distributed to PCT Holders? What happens if a PCT Holders did not “Harvest” the BNB reward after 5 days? Will the reward be automatically lost?
Jin: Firstly, this is not an updated version lol. Users can claim BNB reward anytime they want now, even if they wait their bnb reward will never be lost
Mary | Satoshi Club: Will you update it? Or users need to do something to see updated version?
Jin: This was indeed the rewarding mechanics we designed initially. However after testing it for a while, we realized there were a few issues associating with it. Firstly the APR is hard to calculate and estimate which makes it difficult for uses to make a judgement on how much money they can make. Secondly people would love the choice of being to able to claim their rewards anytime to reward.
Considering of such, we change the reward system to the traditional staking model. But the good part is when you stake your PCT in the vault, other than the PCT rewards, you also receive BNB rewards which comes from the performance fee and you can claim any part you want and any time you want.
Mary | Satoshi Club: How much BNB and PCT rewards were claimed since launch?
Jin: We use 30% of the performance fee to reinvest in PCT, when people claim bnb, half of the performace fee will be distributed to users in bnb
hmm, I need to ask the team for details. In terms of BNB, I think around 600bnb has been distributed to users
PCT part is difficult to cal, the Apr for pct on ave is around 100%
Mary | Satoshi Club: Great numbers
Thank you for your answers! Ready to jump to the next question?
Q5 from Telegram user @Cheriemike
NFTs are becoming popular in the Cryptospace and Pinecone plans to improve it’s yield optimizing product by including Gamefi Financial NFT in it’s platform.My question is,What plans have you put in place in achieving this?What kind of NFTs games will you integrate on your platform?Have you made plans of When your NFTs be available?Will you also build your own Marketplace or you will make use with other marketplace like Open Sea etc?
Jin: sorry the dev told me more than 1000 bnb profit has been distributed to users already
Mary | Satoshi Club: Ohhh, that’s really cool
| Satoshi Club: Thats an impressive number for a young project
Jin: when TVL grows, this number will also increase hugely
different from the norma coin pool, the PCT apy can decrease if more people stake pct
but the BNB reward will increase as TVL grows since it is from the performace fe
I answer this question now
Just a nft preview lol
Mary | Satoshi Club: I love this
| Satoshi Club: looks good
Mary | Satoshi Club: When we will be able to get some of this cute NFTs?
Jin: As a yield aggregator, Pinecone finance will always focus on our core business, which is to help users to earn passive income in a safe, easy and sustainable way.
We will use Financial NFT and Gamfi as a way to make yield farming even more rewarding & more fun. We are not going to become the next Axie under the brand of Pinecone. Our NFT will be highly integrated with our single assets staking vaults and PCT reward system. E.g we will have NFT designed with different squirrel images with different levels of skills, which is corresponding to their different level of “earning boosting score”. The NFT can be bought with PCT but with certain luck factors. Different Squirrel NFT will be entitled with different APY, and there will be more gamfied feature coming up to make the farming experience more rewarding and more fun.
Mary | Satoshi Club: Can’t wait to see this all to go live
Jin: We plan to launch it next month, currently our team are busy developing them, so please be patient
| Satoshi Club: This is Exciting
Mary | Satoshi Club: Super! Don’t forget to share this news with us
Thank you for your answers! Ready to go to the 6th and last question from this part?
Jin: Sure, will certainly do at first chance
Q6 from Telegram user @ItsMelissa3
You mentioned that to fully unleash the potential of the community, you’ve decided to kick off your Squirrel Ambassador Program in Pinecone! That is wonderful news for the entire community! I read that users who apply for this plan will also enjoy extra reward in return. What will those rewards be? Will the rewards of each ambassador depend on their contribution to the ecosystem? If an ambassador contributes more, will that ambassador receive more rewards? What kind of skills do you look for in Pinecone ambassadors? Are there positions available for users of any country and of any language?
Jin: After this last question, I will choose 10 questions to answer right?
| Satoshi Club: yes
Jin: Yes we launched our squirrel ambassador program just a few days ago and everyone is welcomed to join the program!
As an ambassador, you are entitled to 3% of the total profit made by your referred friends and this is on top of their earnings so don’t worry you are not taking their profit. So it is totally related to the contribution from the ambassadors.
For ambassador, of course we hope you love pinecones as much as squirrels do! And naturally you should be an influential and trustworthy person people love to seek your opinion! And we definitely want people from different countries speaking different languages to become our ambassadors and hope to spread pinecones to the world!
Mary | Satoshi Club: We will open the chat for 2 minutes and you will choose 10 questions after it will be closed.
Where users can apply?)
Jin: I will send you a link now
also it is on our telegram and twitter
Mary | Satoshi Club: Satoshiclubbers, join
Mary | Satoshi Club: Thank you for this incredible first part! And it’s time for the live part now
Part 2 — live questions from the Telegram community
Q1 from telegram username @tomo_fan
I see that APR for staking PCT is 1.62k %, Will it be like this always?
What changes the performance of APR?
Jin: The APR for the PCT/BNB vault will always be the highest among all but naturally it will go down with the TVL. However it is our intential to keep this high to incentive liquidity providers. Feel free to try as there is no restriciton as when you can withdraw the fund!
Q2 from telegram username @Phunsuk9999
As flash loan attack is the most common and damaging one. Can you tell us What unique mechanics you have adopted to prevent flash loan attacks ?
Jin: No matter how complicated the flash loan attack is, it consists of two fundamental factors:
– Hackers must use smart contract to interact with our smart contract
– It must execute huge volume of transactions in one single block to return the borrowed fund
Hence Pinecone designed a unique mechanics to prevent flash loan attacks from two perspectives:
– We restrict the direct access from 3rd party smart contract unless they go through our due diligence and passed our security check
– There is a max transaction limit per block to ensure no flash loan attacks can profit from dumping large amount of PCT to profit within one block
As we also mentioned before, we are adding more monitoring and responding system to react to any of the dramatic price change within short time frame as sharp price drop of token price is often the result of flash loan attack or security breach.
Q3 from telegram username @Silica432
Can you brief me From where Can I buy the $PCT Tokens and what all benifits I will get as a $PCT holder ?
Jin: On our website: https://pinecone.finance/en. Click “Buy PCT” it will direct you to the pancakeswap to buy. Holding Pct will not just earn PCT, also earn BNB rewards from performance fee
Q4 from telegram username @munishgmr
Were you able to recover the Amount that was lost in PCT staking vault?
Jin: Well, users who were affected lost circa 35million pct, we compensated with 49million pct, we also bring the pct price back. So from users’ perspective they even earn money, but we as a team, advisors and investors uses all the pct we had to compensate.
Q5 from telegram username @Akira236
On many Platform users have very limited farming Strategy to follow,
Do you plan to add more vaults ?
Jin: Yes definitely there will be more vaults. also there will be more strategies for the same coin.
Q6 from telegram username @Mercury654
There are many Yield Optimizers in the market Can you tell What Unique featured does Pinecone Possess which make it superior from these platforms ?
Jin: Other than the anti flash loan mechanism as we just mentioned, our key differentiating factors lie in two perspective
We focuses on single asset farming to avoid the impermanent losses caused by LP mining, also LP farming smart contract is easier to be attacked than single asset farming.
We provide users with various farming strategies with different risk/return profile to help users to diversify risk while achieving higher returns. As high return always comes with high risk, especially in yield farming. There is hardly any one strategy which could meet the needs of every investor. So it is important to offer investors choices to help them diversify the risk, just like squirrels never put all pinecones in one place
Take our cake vaults for example, one of the cake vault adopts a two-layer compounding strategy, which means, the principal is deposited into Cake’s pool, and then convert the Cake profit into BSW and reinvest in Biswap’s pool to earn higher returns. Such a strategy comes with a certain hedging mechanism. When Cake price appreciates, you can enjoy an increase in principal, and if Cake price falls, profit will increase to hedge against some of the losses caused by the decline in token prices.
Naturally some investors might prefer more stable earnings without the impact of price fluctuation. Hence we also provide a traditional single layer compounding strategy, which is just take Cake profit and reinvest in Cake pool on Pancakeswap to meet the needs of users with low risk appetite.
Q7 from telegram username @mangulal1122
Do you have AUDIT credentials or are you working to AUDIT your project,” to make it more secure and reliable??
Jin: Yes as mentioned before we are engaging with 3 audit companies already
Q8 from telegram username @Kabirkapoor9
Will Pinecone consider to conduct events like Blind-Mining to attract more users? What are your plans for upcoming festival seasons in different-different countries?
Jin: Actually before presale, we have 2 weeks blind mining and people liked it since the APY is highest among bsc for single coin thanks to our multi-strategy, and the reward is instant and real
Q9 from telegram username @Abdullahmia
Good Day Guys,
As You Know, Tokenomics is very important for every Users and Investors.Now my question Is: What is the Current Tokenomics status of Pinecone Project? And How is your $PCT Tokenomics Structure? Can you Share the Sale Structure & Tokenomics of your Project to investors?
Jin: The total supply of PCT is 1 billion, including 1.2–1.3 million for presale (worth of 3,000 BNB), the remaining part will be released in a linear way gradually.
There is a 30% performance fee charged when users claim their profit. For every BNB profit generated, 4000 PCTs will be minted to reward vaults users, accounting for 80% of the total PCT supply, and the team, advisors and early investors account for 20%.
Other than the PCT rewards, Holders of PCT tokens can also enjoy sustainable income in BNB coming from the performance fee.
The design of such tokenomics means that the interest of the team, PCT holders and PCT protocol users (farmers) are highly bonded together. The higher the TVL, the higher the profit, which generates more income for holders and leads to higher token price, forming a virtuous cycle to drive the long term growth of the ecosystem of Pinecone Finance.
Q10 from telegram username @Xusuo
i see you choose PINECONE name and i think its unique, what are the reason choosing Pinecone as project name, can you tell us special meaning from Pinecone ?
Jin: As squirrels love saving pinecones and never put their pinecones in one place. We just hope everyone have the habit of saving and diversity their investment, especially in the time of economic uncertainty!
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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