On Friday, August 20th, we had the pleasure to welcome to our Telegram chat:
0xBilly, The project lead at CHFRY Finance.
We asked him questions about the development of CHFRY Finance.
Q~ Thanks for joining us today. Please start off by introducing yourself to the Blockchain Space community and your role in the team ?
A~ Hello everyone! Thank you so much for having us. We are really excited about today’s AMA. I am 0xBilly - project lead at CHFRY Finance. I just want to note that 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~ Tell us what Chfry Finance is, how it works, and what kind of value the protocol adds to the ever expanding DeFi ecosystem ?
A~ Absolutely ! So, CHFRY is a new Defi lending protocol that powers the automated repayment of debt through diversified high yield strategies. 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 that repays itself automatically, without risk of liquidation, and earns advances on the future yield through uncorrelated high yield strategies. fUSD is a synthetic derivative that is pegged to a basket of top stablecoin assets at 1:1.
All in all, CHFRY enhances the lending model proposed by Alchemix and aims to solve the existing DeFi market challenges related to capital inefficiencies, correlated yield strategies, and underutilization of the flash loan services.
Q~ Can you tell us more about the CHFRY products and how they work ?
A~ Yes, of course. CHFRY has four main products: Fryer, Oven, Cheese Factory and Flash Fryer. I will briefly explain all of them to you guys.
- Fryer: This 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 (DAI/USDC/USDT) 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. (This weight (%) is adjustable and can be modified by CHFRY DAO’s proposal in the future). Vault depositors earn fees on flash loans, which go toward the maturing of debt positions, along with the harvested yields. 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.
- Oven: This is like a debt converter where the interest produced by YFI is thrown into periodically. Additionally, Oven allows users to stake their synthetic assets (fUSD) and have them converted. into their base assets over time at a fixed 1:1 ratio.
- 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 will have 5 different pools available: fUSD3CRV Pool, fUSD Pool, CHEESE/ETH LP Pool, CHEESE Pool and alUSD Pool.
- Flash Flyer: This is a flash loan arm of CHFRY - 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.
So that’s pretty much it about our products. I am just going to add that if you guys have not heard about it yet, we launched our Testnet two days ago. The details on how to set up and run it are outlined in our Gitbook docs . Feel free to test out CHFRY and give us some feedback in our Discord channel. We are alway looking for ways to improve and enhance our protocol, so your insights will be really valuable to us.
Xiaolin : Do you mind sharing some of the useful links on how to set up and run the Testnet with us?
0xbilly : Yeah sure, so this link has all the details
Just follow the steps there would have u set up.
Q~ Can you share with us detailed information on the $CHEESE tokenomics and it’s usecases ?
A~ For sure. So let’s start from the brief overview of the CHEESE token. CHEESE is a CHFRY governance token, circulating supply of which increases according to the preset emission schedule. The token is used for governance votes and gives the community control over the governance and protocol parameters (e.g. the % of capital set aside for the usage of flash loan).
We will have a fixed 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 decrease per week. This will go on for 156 weeks. At week 157 onwards, rewards will cease indefinitely.
Q~ Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises ?
A~ No we have not raised any funds so far. We are a community-led project and no pre-sale or private placement is planned. The CHEESE token will be a fair launch token, and the TGE will take place through the IDO. The IDO is tentatively scheduled to take place in the beginning of September. Following the IDO, CHFRY mainnet will go live. Also, it is important to mention that the IDO will take a form of the dutch auction and anyone who is interested in the project will have an opportunity to participate.
As a matter of fact, I think it is worth mentioning that we have actually discussed the CHFRY protocol with 3 reputable VC firms and have recieved extremly positive feedback. However, as our goal was to be a community driven fair launch project we have decided to move forward with the IDO instead of the CHEESE token pre-sale.
I also want to share with you guys that our team is planning to mint special edition NFTs for the CHFRY IDO and airdrop them to 20–30 contributors. We cannot disclose much about this at this point but please make sure you are part of our Discord and Telegram communities as we will be sharing the detailed information about the NFTs in those channels. Additionally, we are planning to generously award early comers and supporters, so don’t miss out, join the communities now.
Xiaolin : Wow, that’s so much information, How does a Dutch auction operate?
0xbilly : To explain it in simple terms dutch auction is the type of auction which starts at a higher Starting Price and gradually falls to a lower Reserve Price over time. Participants can commit assets at any time during the auction to secure allocation. The auction ends when all available tokens are allocated. Every single participant is eligible to receive the same Final Price (Clearance Price).
Q~ Can you give us an update on what the team at Chfry Finance has accomplished till date and your future plans for Chfry Finance ?
A~ Sure ! So 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 intend to hold an IDO, following which 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
- Flashloan powered application building
- Organizing hackathons (which will encourage 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~ Do you have Audit certificates, or are you working to Audit your project, to make it more secure and reliable? Please, share with us.
A~ Security is #1 priority for the CHFRY team. We already have a smart contract security audit, which was conducted by PeckShield. The audit analyzed the design and implementation of the Chfry protocol. According to which our current code base was clearly organized, there were a couple of issues identified, but they were promptly fixed from our end.
Q~ Every project innovators are always on the edge of giving the positive and good features of their project, but can you kindly give few killer features of your project to investors?
A~ I would say the flashloan mining program is one of our killer features in the CHFRY protocol. We believe Flash loans offer unique investment/trading opportunities - an instantaneous and unsecured DeFi lending solution where a loan is borrowed and paid back all in one transaction. Providing a flashloan mining incentive program on the CHFRY protocol will definitely super boost the usage of flashloans, which will benefit not only the CHFRY but also wider DeFi ecosystem.
Q~ What’s your ticker? #CHFRY or #CHEESE?
A~ 【C】rypto 【H】ost 【F】iducia【RY】
CHFRY Finance (aka CheeseFry) is the name of our protocol. CHEESE is the CHFRY governance token, which is used for governance votes and gives the community control over the governance and protocol parameters.
#CHEESE is the ticker ;)
Q~ NFT is getting more popular nowadays. It looks NFT has bright future. So do you have any plan to include NFT to your project?
A~ NFTs definitely have bright future. As we mentioned we will be minting special edition NFTs for the CHFRY IDO and will be airdropping them to 20–30 contributors. Additionally, we also plan to have the CHFRY NFT art that we plan to distribute among the most active members of our communities.
Q~ Please can you explain the rationale behind this affirmative statement “zero liquidation risk” as used on your website?
A~ We have a zero liquidation provision in place, as the loan value always reflects the collateral value. Hence, deposited collateral can never be liquidated.
In flash loan we trust !
The incoming flash loan mining program is going to surprise the world :)
Here are the links to our docs:
It’s really nice having the CHFRY Finance project in here!!!
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