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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 Entropyfi and our guests were @DDDDD_Chen, @DANIELTONGAWESOME, and @janicechok?—?representative of Entropyfi. The AMA took place on the 21st of September.
The total reward pool was 500$ and has been split into 3 parts.
In this AMA Recap, we will try to summarise the most interesting points for you.
Part 1?—?introduction and questions from the Website
Mary | Satoshi Club:
Hello Satoshi Club! We are happy to announce our AMA session with Entropyfi! Welcome to Satoshi Club
D Chen:
Hi folks! This is D Chen from Entropyfi!
Daniel Tong:
Hi guys ~ Welcome !! This is Daniel from Entropyfi!
Jonah
| Satoshi Club:
Our guests today are; @DDDDD_Chen @DANIELTONGAWESOME @janicechok welcome to the Satoshi club!
Mary | Satoshi Club:
Welcome to Satoshi Club, guys!
Jonah
| Satoshi Club:
We are glad to have you here
Mary | Satoshi Club:
How are you today?
D Chen:
We are doing great. Thank you for having us here!
Mary | Satoshi Club:
So, let’s start our AMA
Mary | Satoshi Club:
Could you please introduce yourself and tell us more about Entropyfi?
Daniel Tong:
This is Daniel Tong: tech lead of the Entropyfi.
D Chen:
Sure thing! I’m D Chen: and I’m the product lead at Entropyfi. Entropyfi aims at building the wisdom of the crowd machine through a lossless prediction market.
The concept of accessing the wisdom of the crowd is nothing new. But we want to scale the traditional prediction market by offering users a lossless experience. As we scale the platform with more users, the output from this “machine” will be better calibrated.
Daniel Tong:
Our website is: https://www.entropyfi.com/
Mary | Satoshi Club:
What is your main goals? Why crypto needs your project?
D Chen:
Our main goal is to build an “oracle” machine for black swan events, such as stablecoins losing pegs. The data from this oracle machine is generated from every individual’s prediction on the market. By offering the lossless format, we want to attract more individuals to use the product. Our data could be very valuable for downstream tasks such as automated insurance pricing for the black swan events.
Jonah
| Satoshi Club:
This is interesting I must say..
Mary | Satoshi Club:
Which other event will you be able to predict? Can you give more examples? I am really interested
Daniel Tong:
If you check out our dapp, we currently support BTC-stable lossless prediction on ETH kovan & Matic Mumbai testnets.
D Chen:
For example, users can predict whether an event from a bundle of events will happen (i.e. anyone USDC, USDT, DAI losing its peg). The bundle will be named as a “3crv” bundle, as the three stablecoins consist of the 3CRV liquidity pool.
Mary | Satoshi Club:
I am excited to try your dapp!
Jonah
| Satoshi Club:
Are you focusing only on stable coins?
D Chen:
Nope. We will also support events such as Defi TVL rankings. For example, users will be able to predict whether TVL of Yearn will drop by 20% in the next week (the 20% figure here is just an example).
Thus we can create derivatives for Defi performance indexes. Giving users greater flexibility to invest in Defi rather than just investing in the governance token of Defi protocols.
Mary | Satoshi Club:
You create new possibilities for users! That’s awesome!
Who are on your team? Is it big?
Daniel Tong:
We are growing pretty fast! Most of our team’s developers were doing blockchain research for years and our chief scientist and cofounder is a professor at a leading university in Canada.
Mary | Satoshi Club:
Is your team public?
Daniel Tong:
We are currently not public ~
Jonah
| Satoshi Club:
Do you plan on remaining that way?
Daniel Tong:
We might decide to come to the public later ~
Mary | Satoshi Club:
Thank you for your intro, guys!
We choose 6 questions for the first part of our AMA
Are you ready to start with them?
D Chen:
Yep! Happy to answer questions from the community.
Q1 from Telegram User @Emnking
Entropyfi is a lossless decentralized gamified prediction market on crypto-assets, NFTs, DeFi indexes, and other on/off-chain assets. This entails that, you can engage in market speculation without putting principal at risk. I will like you to explain further how this will be possible? Does Entropyfi work in the same way as the futures trading market? What exactly differentiates Entropyfi from other prediction markets??
D Chen:
Actually, Entropyfi is more similar to Pool together. All participants’ deposits are deposited to a Defi yield generating platform (currently integrated with AAVE). The deposits will generate interest while waiting for the settlement date. On the settlement date, participants who are correct are paid with interest plus the original deposit, while the participants who are not correct can still withdraw their original deposit. We wrote the smart contract in a way such participants can choose not to withdraw, and their position will be automatically rolled over to the next round, thus saving the users gas cost. Our biggest differentiator is the lossless format. In a loss-realized market, participants without a very strong conviction might not participate because of the possibility of losing. In a lossless market, we try to capture as many users as possible, because the user cannot lose the principal even if the user is incorrect about the prediction.
Mary | Satoshi Club:
So, participants don’t lose on anything?
Jonah
| Satoshi Club:
Your lossless format is quite intriguing
Daniel Tong:
Participants are not losing their principles instead they are risking their opportunity cost (interest generated during the period of time).
Mary | Satoshi Club:
Gotcha! Do you take any additional fees from them?
Daniel Tong:
That’s why our slogan is ‘supercharge your yield with your prediction skills’ ~
Jonah
| Satoshi Club:
How do you ensure these interests are always available?
D Chen:
We designed a fee switch, but it is initially turned off at launch. The DAO can make the decision to turn on the fee switch later
Currently, we are integrated with AAVE. However, the smart contract is written with a modular design, such that later we can swap AAVE with other Defi yield generators if they can provide a better risk-adjusted return.
Mary | Satoshi Club:
Oh, nice! DAO decides
Daniel Tong:
Also, fees are not coming from users’ principals, it’s from the total interest generated from AAVE during the game period ~
Mary | Satoshi Club:
Awesome system!
Thank you for your answers, guys! Ready to proceed?
Daniel Tong:
Lossless prediction market is our 1st product, 2nd product we will launch a new insurance protocol. Evently, we will use 1st and 2nd product to make the 1st onchain defi rating oraacle ~
Daniel Tong:
Yep ~ lets do it ~
Q2 from Telegram User @Billz120
Entropyfi?—?Looking at your Game Logic, there is a provision for a weekly lottery in which the lottery draw is funded by the protocol revenue. Users who won the lottery will have to burn their pledged governance token to claim the reward. Could you please explain to us why users who won the lottery will have to burn their pledge governance token to claim the reward? Why would users who did not win the lottery retrieve their governance token for the next weekly lottery draw could you please explain?
D Chen:
We designed this burn mechanism to have a deflationary outlook for the governance token. Also, this design is fair to all users since the number of governance token hold by a user is proportional to the probability of winning. If the winning user is asked to burn the governance token, we can avoid the scenario where a group of whales always win the lottery
Mary | Satoshi Club:
Is this your only one mechanism to prevent whales manipulations?
What is your opinion is whales good or bad for projects?
D Chen:
Nope. We also have designs that direct whales away from the lottery to the staking pool. We do welcome whales in our projects. However, we designed the mechanism to also give non-whale users a chance to benefit from the platform’s value creation.
Mary | Satoshi Club:
It’s honest actions
when do you plan your dapp to go live?
D Chen:
We will have our mainnet launch shortly after the public sales event. Both will happen in late October. But we are currently launched on ETH Kovan and Polygon Mumbai testnet.
There is a tutorial on our Gitbook explaining how to get Eth Kovan testnet tokens and try our testnet dapp.
Jonah
| Satoshi Club:
By the way, What amount classifies a user as a whale in your platform
D Chen:
Based on our past experience, an account holding more than 0.05% to 0.1% of total supply will be considered as whale in the lottery pool. But to participate in the prediction market, there isn’t a difference in experience if the user enters with a large amount of deposit or not, since users will enter the market with stablecoins or mainstream assets (i.e. WETH or WBTC).
Mary | Satoshi Club:
Thank you for your answers! Ready to jump to the next question?
D Chen:
Yep!
Q3 from Telegram User @victorogb
Going through your roadmap, Entropify has slated it’s Mainnet launch, a proposed IDO, Liquidity Mining launch and Sponsor Mining Launch all within the periods of Q3 2021. For a relatively new prediction market as yours, these events are essential. Been that Q3 2021 ends this month, I couldn’t find an update on some of this scheduled events, especially your Mainnet launch. Therefore, can you offer us some insight into the current phases of development of these products, when should we expect the launch of your Mainnet and IDO event, and how will these products improve the quality of services offered?
D Chen:
Currently, our development is ahead of schedule. The smart contracts are launched on the testnets. As you said, the mainnet launch is a huge event, hence we wish to use it as a catalyst for our upcoming IDO event. We will plan to have our Mainnet launch and IDO in late October, meanwhile building a strong community between now and then. Currently, we are also expanding the development team such that we can make UI/UX adjustments based on the feedback we received from our testnet users. Please do join our discord and offer some feedback for the testnet product.
Mary | Satoshi Club:
We can find testnet dapp here?
D Chen:
Yes, on the right corner.
Mary | Satoshi Club:
Do you plan to launch both on Polygon and Ethereum?
D Chen:
Our Discord link is https://discord.gg/TWErgkKSwy and our Telegram link is https://t.me/entropyfi
Yes, we plan to launch on both. There are also some other scaling solutions that we are considering.
Mary | Satoshi Club:
Can you name them?
D Chen:
We are currently looking at Arbitrum, BINANCE Smart Chain, Aurora, and Oasis
Mary | Satoshi Club:
Nice choice
we will follow your updates!
Thank you for your answers! Ready to jump to the next question?
D Chen:
Yep!
Q4 from Telegram User @meml97
It caught my attention that it is possible for users to have the role of “Pool Sponsors” on Entropify, can you tell us more about this? How can someone become a Sponsor on your platform and what are the requirements for it? By becoming Pool Sponsors, what advantages will users receive? What kind of benefits will this provide to them to motivate them to become Sponsors? How much do users need to invest to be able to become Pool Sponsors?
D Chen:
Anyone can become a sponsor with any amount of deposit. Becoming a sponsor means the user is contributing to the specific pool (i.e. BTC prediction market)’s yield without participating in the prediction market. The sponsor will contribute the yield while earning the governance token. The sponsor mechanism is designed to create a fly-wheel effect. More sponsor deposits meaning a higher potential yield for the prediction market winners, which will attract more prediction market users. Since the governance token will also share the fees from the prediction market interest earnings, the value of the governance token will appreciate, which will then attract more sponsors to participate
Jonah
| Satoshi Club:
What tokens do the pool sponsors deposit?
Daniel Tong:
Also, all roles (sponsors or users) can leave the game to withdraw funds from the protocol anytime they want.
Mary | Satoshi Club:
What percentage of tokens do you plan to distribute through this pool? Can you share your tokenomics with our community?
Daniel Tong:
Same as users who speculate, usually same as the pool principal (collateral) token.
Daniel Tong:
For example, BTC-DAI pool -> both users and sponsors deposit DAI.
D Chen:
It depends on which prediction market pool that the sponsor wants to sponsor. For example, if I want to sponsor the BTC-DAI pool, then I will deposit DAI as the sponsor (the first symbol is the asset that we are predicting, the second symbol is the deposit that we are putting down)
Mary | Satoshi Club:
D Chen:
Yep. We allocated 40% of our tokens as sponsor rewards and liquidity mining rewards. The current team and advisors are allocated 8%, with 17% allocated to both public and private investors. The remainder is allocated to the protocol treasury
Mary | Satoshi Club:
Nice allocation for the pool
Thank you for your answers! Ready to go to the next question?
D Chen:
Yep!
Q5 from Telegram user @Ajpaa
Entropify recently announced the success of the huge upgrade of its App. for mobile players, the upgrade brings a NEW responsive view in addition to relaunched games for phones. What major advantage do the features of the upgraded App have over the previous one? What new features did you add? Can you give us a sneak peek of the features coming soon to be integrated you highlighted?
D Chen:
In the new dapp, the biggest change is that we added a users’ dashboard, giving the users an overview of the deposits and NAV on the platform. We also designed the dapp to better fit mobile devices, since we know that many users prefer to use phones and tablets for interacting with dapps. We are also integrated with Mask Network, which is a Twitter plug-in that allows users to interact with Web3 applications from a tweet. This will enable us to offer social trading feature
Mary | Satoshi Club:
Even Mask Network, that’s nice! Btw, do you have any official partnerships? Or maybe planning some?
D Chen:
Yep. We are currently integrated with Mask Network, Chainlink, Polygon, and AAVE. In the future, we will be integrated with Defi dashboards such as Zapper and DeBank. We will also partner with the Graph Protocol to bring the Defi KPI prediction market
Jonah
| Satoshi Club:
how will the social trading feature you mentioned work
Mary | Satoshi Club:
You’re doing great! When Zerion?
D Chen:
Soon ™
For example, if a trading guru made a tweet about where the market is going, then users can choose to follow the guru directly from the tweet.
In the future, we can also add a leader board feature, so people can keep track of their performance.
Mary | Satoshi Club:
How you will identify trading gurus?
Daniel Tong:
Also, since the game is lossless, it’s less stressful for KOLs to share and invite everyone to join ~
Mary | Satoshi Club:
Definitely
D Chen:
One of our current investors is Wootrade Network. Wootrade Network has a good relationship with trading guru Twitter profiles. We can start from there. In addition, we can grow our list from there through referral.
Mary | Satoshi Club:
We have enough stress here
Daniel Tong:
Lol.
Mary | Satoshi Club:
Oh, we love Wootrade Network
Thank you for your answers, guys! Are you ready for the 6th and last question from this part?
Daniel Tong:
Lets ~ go ~~
Q6 From Telegram User @Highpee
You said your protocol will reserve a percentage of income generated and deposited by players and sponsors as part of platform revenue that can be claimable by users based on their Revenue Claim Power. What percentage of users’ or sponsors’ deposits do you cut away and keep in this reserve? Who controls the inflow and outflow of the fund in this wallet? What is your Revenue Claim Power and how will it be used to offer proportionate rewards to users? How frequently should a user claim his revenue share?
D Chen:
The percentage of the cut will be decided by the DAO as a protocol parameter. We will also design a maximum cadence for each adjustment, such that the fee won’t be increased or decreased by a large amount in a single proposal. The inflows and outflows of the fund will be fully controlled by the smart contract logic, as the team is dedicated to building a decentralized platform. Revenue claim power is proportional to the length of time that the governance token locked and the amount of token locked. The user can claim anytime the user wants, but we think it would make sense if the gas cost is only a small fraction of the claimable value
Part 2?—?live questions from the Telegram community
Q1 from Telegram user @ronaldo_super
Are there any features for saving gas costs for Entropyfi project?
D Chen:
Yes. We optimized our smart contract and used an efficient algorithm when possible. We also tokenized users’ deposit positions, such that if you are long-term bullish (or bearish) about a prediction market, you can pick a side and leave your deposit there. It will automatically roll over to the next round. Thus you don’t have to interact with the smart contract if your choice remains the same.
Q2 from Telegram user @ethcypherpunk
Ethereum and Polygon are great, in any case, is it of your interest to deploy this protocol in some other blockchain? or maybe a Layer 2?
Daniel Tong:
Yeah, ETH and polygon for sure now, we also talked with arbitrum and Oasis.
Q3 from Telegram user @Xusuo
Hello sir can you mention and explain here about BURN and Buyback system from $ERP TOKEN project? how the burn token work and what event is possible to trigger the burning token?
D Chen:
There is no buyback function of the platform, as we believe that buybacks will cause short-term price fluctuations and might not be fair to all token holders. Rather, the value of the platform is distributed to token holders via the lottery pool and revenue claim mechanism. The lottery pool has a burn mechanism for lottery winners. However, if you didn’t win the lottery, you get to keep your tokens.
Q4 from Telegram user @Ajpaa
Entropify is said to support multiple prediction products such as Prediction of the price of favorite coins or NFTs, Speculation of stocks or commodity market, and Forecasting the key performance metrics (KPI) of DeFi protocols. How does the prediction/ Speculation/Forecasting for coins or NFTs, off-chain assets, and KPI of DeFi protocols work and how are they implemented?
Daniel Tong:
For on-chain asset -> chainlink price feed, off-chain assets such as TESLA stock price -> chainlink price feed also works, for NFT?—?similarly ~ Defi KPI?—?the graph protocol will help for sure.
Q5 from Telegram user @centoscu
What is black swan events could you please explain about black swan events?
D Chen:
Black swan events are events with a very low probability to happen. For example, USDT losing its peg could be a black swan event. Because the event happens with such a low probability, it is hard to host such a product in the traditional prediction market, as one side of the market will lose 99% of the time (i.e. 99% of the time, USDT won’t lose the peg).
Q6 from Telegram user @Astonroe
While researching about this project I noticed that there is no information about the native token of Entropify.. Can you tell us what is the ticker of Entropify token? When this token will be publicly available?
D Chen:
Our ticker is ERP. We are currently listed on Coinmarketcap: https://coinmarketcap.com/currencies/entropyfi/ The token will be available after the public sale, which will be late October.
Q7 from Telegram user @SHELBYWINAMA
I am a beginner and I want to buy $ERP tokens but I don’t know how to buy and where to buy them, so can you tell me how I can buy $ERP tokens and is there a minimum purchase amount for $ERP tokens? Can you tell me, if I buy $ERP tokens will I get a lot of profit? And what benefits will I get?
Daniel Tong:
This is our website: entropyfi.com, join our social media channels, such as telegram or discord. We will have ITO or IDO pretty soon ~
Q8 from Telegram user @captainprice111
For now, does Entropyfi only allow bets on crypto prices? Do you plan to expand the areas where people can bet? For example, determining how much an NFT work by a famous artist will be sold for? Or predicting who will win a Formula race?
Daniel Tong:
Yeah ~ for sure ~
We will also support interesting ETH-GAS movement prediction ~
A lot of interesting design and lossless prediction games are approaching ~ join our channels and stay tuned ~
Q9 from Telegram user @K2ice
How can I supercharge my yield with my prediction skills? Any guidelines available on how?
Daniel Tong:
Check out docs.entropyfi.com, also if u wanna try it now, go to our website: entropyfi.com and click game -> or use this link https://app.entropyfi.com/#/Prediction
Part 3?—?Quiz Results
In the final part, we tested your knowledge in terms of Entropyfi. They’ve prepared 4 questions for this part. The total reward pool for the quiz was 300$.
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