On Monday, September 27th, we had the pleasure to welcome to our Telegram chat:
Kiki, The Marketing Lead at CHFRY Finance.
We asked her questions about the development of CHFRY Finance.
Hello everyone! Thank you so much for having me.
Really excited about today’s AMA. I am Kiki - marketing lead at CHFRY Finance, and I will be answering your questions about CHFRY protocol today.
Q~ Thanks for joining us today. Please start off by introducing yourself to the Blockchain Space community and your role in the team ?
A~ I am kiki – marketing lead at CHFRY Finance. So, the team behind CHFRY is anonymous. Nevertheless, I will shortly tell you about our experiences: with a background in finance, economics, marketing, product development, and programming, the CHFRY team has been active in crypto since 2017. Our team members have extensive knowledge of the crypto ecosystem and have previously worked on a couple of successful projects in the blockchain sector. 😊
Q~ Could you please reintroduce CHFRY Finance? What’s the mission/goal of this project ?
A~ Absolutely! So, CHFRY is a new DeFi lending protocol that powers the automated repayment of debt through diversified high yield strategies. To give you a short overview, the protocol allows users to deposit stablecoins (DAI, USDC, or USDT) as collateral to borrow against and deploys this collateral into DeFi yield aggregators and utilizes it for flash loans to generate yield that will automatically pay off the loan.
As such, a user takes a loan in the form of fUSD - a synthetic derivative, that repays itself automatically, without risk of liquidation, and earns advances on the future yield through uncorrelated high yield strategies.
To answer your questions, our motivation/goal for launching CHFRY was to solve the existing DeFi market challenges related to capital inefficiencies, correlated yield strategies, and underutilization of the flash loan services. Also, to provide attractive, diversified yields for both less-sophisticated participants with limited crypto knowledge and more experienced members with higher risk appetite.
Q~ Please tell our community about the products that CHFRY Finance provides? Fryer, Oven, Cheese Factory, and Flash Fryer - can you tell us exactly how they work ?
A~ Sure. CHFRY has four main products: Fryer, Oven, Cheese Factory, and Flash Fryer. I will briefly explain all of them to you guys:
1️⃣ The fryer is like a vault that collects the user’s base assets. When users make a deposit, in the fryer they can mint up to 50% of their deposited amount in the form of fUSD, while their deposited assets are put to work to earn yield and pay off the loan. In order to diversify the sources of yield (a) 20% of the base asset is set aside as collateral for flash loans, and (b) the remaining 80% is deposited to YFI or Curve yield pools to gain reward.
2️⃣ The oven is like a debt converter where the interest produced is thrown into periodically. The Oven also allows users to stake fUSD and have it converted into their base assets over time at a fixed 1:1 ratio.
3️⃣ Cheese Factory: This is a center of all incentive programs, where staking pools like farming and staking take place. In Cheese Factory, specific token holders can deposit their tokens to the farm pools and earn CHEESE governance tokens. We have 5 different pools available: fUSD3CRV Pool, fUSD Pool, CHEESE/ETH LP Pool, CHEESE Pool, and alUSD Pool.
4️⃣ Flash Fryer: This is a special rewards pool for flash loan users and a gateway to flash loan-powered applications. Flash fryer users have their yields enhanced by CHEESE rewards - this incentive program is designed to boost the flash loan volume and in return increase the flash loan service fee income, which, as mentioned above, is directed toward maturing of the debt positions.
Additionally, what is really great about CHFRY flash loans is that users are liable to only a 0.06% flash loan service fee, which is 30% lower compared to most other flash loan providing platforms.
Xiaolin : Great number of products, should we be expecting more products in the future ?
Kiki : I can’t disclose much. However what I can tell you is that you should definitely expect more flash loan powered applications being added to the Flash Fryer page😝
It is our goal to democratize flash loans and make them more accessible to the general public.
Q~ Can you share more about CHFYR tokenomics? What utility does the $CHEESE token has in your ecosystem ?
A~ Sure thing!
CHFRY’s governance token is $CHEESE, which gives the community control over the governance and protocol parameters (e.g. CHEESE holders can vote to change the % of capital set aside for the usage of the flash loans).
There will be a fixed max supply of 9,313,200 tokens and the total $CHEESE token issuance will be under the following parameters: 75,000 in week 1, followed by 390 token decreases per week. This will go on for 156 weeks. From the week 157 onwards, rewards will cease indefinitely.
In terms of token distribution, as CHFRY is a community-led project it is our intention for the CHEESE token to be a fair launch token. As such no pre-sale or private placement has taken place. The IDO will launch tomorrow, on Sept. 28 at 13:00 UTC on Balancer’s Liquidity Bootstrapping pool.
Q~ What is the CHFRY Finance team’s $CHEESE token sale plan? I know the IDO is happening on tomorrow, on Sept 28 at 1PM UTC - could you please share how to participate ?
A~ CHFRY Finance will kickstart the CHEESE IDO on Balancer LBP tomorrow on Sept. 28, 2021, at 1PM UTC. A total of 93,132 CHEESE tokens (1% of total supply) will be available. The LBP will last for three (3) days and end on Oct. 01, 2021, at 12:59PM UTC.
The weights of the LBP will gradually change from CHEESE:ETH = 95:5 to CHEESE:ETH = 30:70 during that period, creating downward pressure on the price.
The Balancer LBP is public for all, no whitelisting is needed – anyone can participate in the token sale. The participating token in the IDO will be WETH. We decided to hold the $CHEESE IDO on Balancer’s LBP because LBPs are a special type of weight-changing pools that allow for better price discovery, meaningful liquidity, and fair distribution at launch. LPB shifts its weight over time and creates constant downward pressure on the price, preventing front-running and price speculation.
If I am allowed to share, here is the step-by-step IDO participation guide that I recommend reviewing before participating in the IDO
Also, it’s important to mention that in order to celebrate the CHFRY IDO, we will mint special-edition, exclusive NFTs representing CHFRY products. There will be in total 20 NFTs minted, which will be airdropped to 20 participants of the IDO in seven (7) days after the IDO ends:
👉 The 15 participants that will contribute the largest amount during the IDO will automatically become the CHFRY NFT recipients.
👉 The remaining five (5) NFTs will be airdropped to five (5) participants, who will be chosen at random.
And lastly, we are currently holding the Pre-IDO giveaway with a 250 CHEESE prize pool, make sure you participate for the chance of being among 25 winners:
Q~ Can you briefly describe the most important milestone that CHFRY Finance has achieved to date and also share CHFRY roadmap and future plans ?
A~ Yes absolutely. Here is everything you need to know about our roadmap. In the 1st and 2nd quarters of 2021 the CHFRY team successfully completed market research, idea and concept development, project planning, and team formation. Additionally, we completed the beta stage development and the security audit of the protocol.
In the 3rd quarter of 2021, we’ve started community building, released the CHFRY whitepaper, and launched the testnet. Furthermore, in the same quarter, we added NFTs to the CHFRY ecosystem, and most importantly we are holding the IDO on Sept 28, 2021. Following the IDO the mainnet (V1) will be launched.
In addition to this, the plans for the 4th quarter of 2021 and the 1st quarter of 2022 include:
○ DAO Building
○ Flash loan-powered application building
○ Organizing hackathons (which will encourage the crypto community to build flash-loan powered applications or other products on top of CHFRY)
○ Developing a cross-layer fUSD
○ Introducing a full on-chain governance system
○ Supporting multi-chain Interoperability
○ Adding more collateral types
○ Introducing CHFRY Vault (for yield diversification)
QUESTIONS FROM TELEGRAM
Q~ Is it too late for to get whitelisted for the IDO happening tommorrow, also can you explain how the Balancer’s LBP model works?
A~ The CHEESE IDO on the Balancer LBP is public for all – no whitelisting is required, anyone can participate in the token sale ✔️
👉Balancer’s LBP is a special type of weight-changing pool that allows for better price discovery, meaningful liquidity, and fair distribution at launch. LPB shifts its weight over time and creates constant downward pressure on the price, preventing front-running and price speculation.
Balancer’s LBP is a variant of a dutch auction or reverse auction. The main difference is:
- While in a Dutch auction, every successful bidder pays the same amount for the token, in the Balancer’s LBP the cost of each LBP participant changes. When exchanging WETH for CHEESE tokens, every single participant will pay their own price.
- During the LBP, the price of $CHEESE will trend lower over time. However, after someone participates and adds WETH to the pool, the price will increase.
I hope this answers your question.
You can learn more about the IDO and Balancer LBP in our blog:
Q~ Could you describe Chfry’s uncorrelated high yield strategies and how they work to ensure that debt repayments are not disrupted by market fluctuations? What determines if the payback is greater or lesser than the deposit?
A~ Sure. When users make a deposit, in the Fryer they can mint up to 50% of their deposited amount in the form of fUSD, while their deposited assets are put to work to earn yield and pay off the loan.
In order to diversify the sources of yield (a) 20% of the base asset is set aside as collateral for flash loans, and (b) the remaining 80% is deposited to YFI or Curve yield pools to gain reward.
Vault depositors earn fees on flash loans, along with the harvested yields, both of which go toward the maturing of debt positions. Flash Fryer fees provide a natural hedge against scenarios whereby DeFi aggregator yields come down – while maintaining the integrity of vault deposits. Consequently, CHFRY creates uncorrelated high yield strategies for its users, which means that the debt repayments can’t be interrupted by market fluctuations.
Q~ The Flashloans mining program is one of the most essential aspects of Chfry; this is the first time I’ve heard of something like this; could you please clarify what it is?
A~ So, flash loan mining is a very unique feature of CHFRY Finance.
During flash loan mining users receive CHEESE rewards for getting flash loans on CHFRY. Normally, mining in DeFi requires you to lock up some funds. Here on CHFRY you don’t need to lock up any funds in order to participate in the flash loan mining. You simply get a flash loan, pay the 0.06% service fee and get the reward in return. We will have the blog published about Flash Loans and Flash Loan Mining on CHFRY very soon.
Q~ Chfry Finance has 4 badges of honor which I understand we can earn by referring friends to your discord group, what will be the rewards behind these medals? Do you plan to implement other alternatives to earn these medals?
A~ Yes, we are currently running the referral campaign. Invite your friends to join our 🧀 Discord & receive your first 🧀 limited edition NFTs:
👉 Refer 5 friends – Bronze CHEESE Badge
👉 Refer 15 friends – Silver CHEESE Badge
👉 Refer 30 friends – Gold CHEESE Badge
👉 Refer 50 friends – Platinum CHEESE Badge
You can learn more about the rules and the supply of our badges in our Medium article:
Bigger Cheese to Fry — Introducing NFTs
Remember when a digital, collectible artwork sold for an astronomical $69 million back in March 2021? So do we — the massive piece of art…
Q~ How is it possible that Chfry Finance has no liquidation risks, which equals “0,” according to your documentation?
A~ Sure, zero liquidation risk means that your collateral on CHFRY can never be liquidated. We have a zero liquidation provision in place because the loan (fUSD) value always reflects the collateral value (USDC/USDT/DAI). Hence, the deposited collateral can never be liquidated.
Participate in the $CHEESE #IDO on Balancer’s Liquidity Bootstrapping Pool:
👉 Tomorrow, on Sept. 28.
👉 at 1 PM UTC
One last thing. Check out our landing page:
Here you can access a live price chart that shows the current price trend.
Additionally, on the same page, you can find the latest $CHEESE price as well as the countdown clock that shows the time left before the IDO ends.
➡️ Through the Pool Entrance button (on the lower right side of the page), you can directly navigate to the Balancer LBP page.
It’s really nice having the CHFRY Finance project in here!!!
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