Venus Queen AMA

10th February, 2021

Firstly tell us about Degen.VC

Degen VC can front run VC

What does that mean?

The VC model generally involves equity. And with this outdated model they are still taking most share of the value in DeFi

But there is no real reason because of two reasons:
1. The crowd is faster

2. The crowd has more money

Degen VC has airdropped over $1m worth of tokens in the past week. And that is with a community around 400. Imagine it was a community of 5000. We could launch anything faster than legacy financing models can

That is awesome, of course I am familiar with Degen VC model, it’s giving an equal opportunity for every small or big traders to become VC (Venture Capitalist’s). So what one has to do to become VC? How does it work? If you can explain quickly for our community please.

Become a DGVC LP, and you get the #alphadrops

So can you please talk about ROCK3T now?

Rock3t started when our senior dev Justin Goro told us an idea.

He said, we could make a smart contract and send some tokens to it. And people send ETH to this. It then sends ETH + tokens to Uniswap for LP.

What does this mean?

Venus Queen, [10 Feb 2021 at 17:18:05]:
Exactly. That would be my next question: what does that mean?
It means people can get tokens for free essentially. Or getting LP tokens is 50% discounted

But this is just the start. We started asking questions

1. What about if we lock the LP before returning it to the user as a “cost” of getting cheap LP

Boom — a better model than staking

2. What if we made them send more ETH that that needed to combine with LP i.e. the discount was less?

Boom — we have a new venture financing model because this ETH can be send or used in some other way

and

3. What if we sent some of the LP being returned to the user to the O address (i.e locked in perpetuity). This still of course allows for discounted LP

Boon — a better LP lock up that Core

*Boom sorry )

So Rock3t began to take shape and here is what it is:

The Undertaker, [10 Feb 2021 at 17:21:17]:
So correct me if I am wrong but going forward there will be this one smart contract address where people can send ETH and tokens which will be contributed towards LP?

Fraser Brown, [10 Feb 2021 at 17:21:45]:
Not quite

That smart contract contains part of the token supply

When you “Send ETH” (see big button on 3t.finance) it combines your ETH with its tokens

The Undertaker, [10 Feb 2021 at 17:23:12]:
Okay

But how do they get LP tokens at 50% discount? Sorry not getting that part.

Fraser Brown, [10 Feb 2021 at 17:23:52]:
Well lets compare.

If you wanted to get DGVC LP for example

And this is a good idea because you will then get tomorrows airdrop … LOL

You would buy some DGVC from Uniswap. You would pool this with ETH on Uniswap. Lets say you bought $1000 DGVC. You need $1000 ETH to pool and get LP

Now on Liquid Vault (that Rocket uses)

You take your $1000 ETH and send it to the smart contract

This GIVES you the $1000 worth of tokens. So it cost you 50% less to get LP tokens because it gives your LP back.

Rock3t takes things one step further

The LP period is controlled by an algorith that depends on system health. Health is defined as ETH²/R3T quantities in the pool

Uniquely, as health improves everyone’s lock period drops so its not like staking where you are locked for a time defined at the start.

Fraser Brown, [10 Feb 2021 at 17:35:14]:
You see when you come to claim the smart contract checks if you are able to. i.e. is the lock period < time elapsed since you “Sent ETH”

Secondly

Rock3t changes the additional ETH that needs to be sent in depending on the amount of tokens in the Liquid Vault

i.e. the discount gets less

But it uses this ETH … wait for it

To market buy more tokens from Uniswap and replenish the liquid vault

BUY PRESSURE increases as more people pool

Now I’ve been in this a while. Just let me know if I need to retrace and explain something I think is clear but is actually as clear as mud

Venus Queen, [10 Feb 2021 at 17:38:50]:
All makes sense, so ROCK3T is ready to use?

Fraser Brown, [10 Feb 2021 at 17:38:59]:
Well heres the thing …

R3T: 474,887.92 remaining from the 549,934 we sent to its Liquid Vault
NOS: 187,433.15 remaining from the 381,138 we sent to its Liquid Vault

What does this mean for the system?

These LP tokens are locked for 88 days at the moment on Rocket. And this is in addition to other pooled tokens. So the LP is strong and healthy

Because these are locked the buy pressure cannot drop because the tokens cannot be removed from pool. So buy pressure is locked in.

Fraser Brown, [10 Feb 2021 at 17:48:05]:
The amount of LP that you claim that is sent forever to the 0 address depends on the ETH price of the token

Note that the algo ensures that you will still get your discount. Just slightly less

Paul Scott, [10 Feb 2021 at 17:48:36]:
This Medium has examples of what goes on under the hood: https://medium.com/degen-vc/navigating-the-rock3t-nos-ui-12646219872a

Fraser Brown, [10 Feb 2021 at 17:48:59]:
This is important because we want a lever that if price starts to crash people know that something way way way better than burning happens

The LP that is sent to the 0 address remains beneficial to the pool because it is not destroyed. It can just never be unpooled.

We have also used a much simpler model of the Liquid Vault in HARDCORE being airdropped tomorrow

This is the LP to 0 address algo.

NOS and Rock3t will demonstrate and are demonstrating a kind of unnerving power of economic levers coded in smart contracts and native to Ethereum. Iterations of Rock3t (which its treasury allows for) might make it a competitor to the mighty Bitcoin in time

NOS forked our code after we released and before we deployed Rock3t. And then we adopted it!

And got control of all the keys, server etc

NOS essentially has no contract owner power

Other than a one time set FOT fee transaction which will be a vote

And NOS has no additional tokens in treasury for future innovation.

HARDCORE is a slightly different idea again if I may mention that?

Venus Queen, [10 Feb 2021 at 18:04:06]:
Yes please Fraser

Fraser Brown, [10 Feb 2021 at 18:04:31]:
It is a business actually — but decentalized and onchain

BOTB.com is the real world comparison

People play a spot the ball game. You have to guess where a soccar ball is on a picture where it has been removed

There is a winner

And cost to entry

And the winner wins an exotic car

This is a billion dollar business

And we have put it on chain

The selection of ball position can be minted as an NFT

The token collects revenues from trading (FOT — fee on transfer) and also a liquid vault that sends most the “extra eth” to the fund

So owners of HCORE tokens will own all of the value in this business.

Crypto Runner 007, [10 Feb 2021 at 18:07:17]:
What is the transaction fee on Hardcore?

Fraser Brown, [10 Feb 2021 at 18:07:36 (10 Feb 2021 at 18:08:48)]:
Honestly, I have been in this space since 2016 and I cant think of a cleaner business model where tokens holders genuinely capture all of the value in the business

4% of sell 2% on buy

R3T saw about $10,000 in FOT fees acrue within a few days (by way of example)

Crypto Runner 007, [10 Feb 2021 at 18:09:32]:
got it and these FOT will be distributed to owners on specific intervals(sorry if you already answered this before)

Fraser Brown, [10 Feb 2021 at 18:10:05]:
FOT capitalises the fund with which prizes or bought. Or could just be sent to the winner as crypto

There is a public sell function of FOT fees which anyone can call to convert them to ETH

Fraser Brown, [10 Feb 2021 at 18:12:01]:
HARDCORE we inspired last November by our wanting to go “beyond yeild”. Yeild farming was/is limited. If the token has real value too and there is a kind of yeild farming opportunity as well (liquid vault) then that is a winning formula.

Fraser Brown, [10 Feb 2021 at 18:17:41]:
Yes — expect firewords. When we launched Rock3t noone knew what liquid vault was. Different now. But to answer your question

Circulating supply is about 80% of this

But remember. If/when people go for discounted LP on the Liquid Vault that supply is locked too

not circulating

but the Liquid Vault lock for HARDCORE is a truly degenerate 1 week