Thanks a lot for actively participating in the Unifi Protocol AMA held on 19th October 2020 at the Game of Bitcoins Channel. We really appreciate all your support. This post is a recap of the entire session held with Unifi
We have with us STEVE GREEN
I’m Steve Green, Project Manager with Sesameseed and Unifi. For some background, Sesameseed is a community organization that believes in fair and democratic governance as well as promoting blockchain development. So like everyone else on the team, I started off as a regular community member and my passion for solving problems with innovative blockchain technology just got me more and more involved. Which leads us to the Unifi Protocol we just developed, with the goal in mind to make DeFi more accessible to different blockchain communities.
Unifi Protocol is a group of smart contracts designed for Defi, and for everyone to use. It's multi chain and cross chain
Q1. Reading about you I could see that your platform uses four tokens (UNFI, UP, UL and SEED). Why use a system with multiple tokens instead of creating a currency that integrates all the features you would need?
So these tokens all play very important roles within the platform:
UP is the blockchain-specific liquidity mining token of the Unifi Protocol.it's backed by the native token of whatever blockchain its on (e.g. UPtrx is backed by TRX, UPont is backed by ONTd). It is designed to only increase in redeem value, and it can do so sustainably because it is 100% backed by those native tokens. It's a long Term, sustainable reward token on each blockchain.
UNFI is the global governance token on all Protocol blockchains. By using UNFI’s global position in the Protocol token economy, liquidity providers can mine UP on one blockchain while still benefiting from the liquidity mining on all the other Protocol blockchains. It is designed to be cross-chain, allow users to participate in Voting, Proposing governance activities, and earn more UNFI as a result of their participation. This token ensures the underlying protocol is constantly evolving along with community sentiment. We think a lot of users will want to mine UP just so they can migrate with it into UNFI. It will be very exciting!
uL tokens are simply the tokens that represent the share of liquidity you provided, these are burned when you withdraw your liquidity and minted when you add. They can also be traded on a derivative market, which is scheduled to open as early as this week!
Finally, SEED is a rewards token for sesameseed. Since Sesameseed exists already on all of the blockchains that Unifi Protocol is on, its acts as a token we can integrate with the ecosystem and reward to traders as a bonus. This is a token that automatically stakes and compounds rewards daily. Completely different use case.
Im sorry for the long answer everyone!
If you want to read about that later, there is a great article on on Medium blog that talks about all the tokens and how they work together
Q2. What is the difference between the Up and UNFI tokens, and what is the use case of these two tokens in the UNIFI ecosystem?
Haha. I think I just answered this question already. But to reiterate,
UP is the liquidity mining token that is 100% backed by onchain funds governed by smart contract. Each time more UP is minted when fees are made by the Protocol, its redeem value goes up. UPone on Harmony was launched the other day and went from being redeemed for 1 ONE to over 8 ONE in just the first day. All this is governed by smart contract.
UNFI is the global governance token. It’s designed to be cross-chain, so users of the platform on any blockchain can still have access to participate in the governance of the entire multi chain Protocol. There will of course be rewards for doing so. We just released the UNFI Litepaper, it’s available now on our website. You can see a diagram that explains how users will be able to take action with their UNFI tokens and earn the right to vote or make proposals, and that will get them more UNFI in rewards. This ensures the Protocol is evolving along with community sentiment.
Q3. Most of the DeFi are built on Ethereum, what advantages does Tron, HARMONY, Ontology offer in terms of the protocol, adoption and costs?
Oh well I think this is an easy question to answer. Everyone knows about the scalability issues facing dapps on Ethereum. So blockchains like the ones you mentioned have low transactions costs and have fast transaction speeds. During volatile times in the the market, when price of tokens are swinging rapidly, that time saved could potentially translate into a lot of returns during arbitrage opportunities. We are already seeing that happen now on uTrade, where smart traders are taking advantage of market conditions to increase their earnings.
Of course, Unifi recognizes that most of the action is still happening on Ethereum. As fast as crypto changes, old habits die hard. So we plan on also launching on Ethereum and then connecting all those token economies together. Interoperability is the future.
Q4. You have the title as "The True Power of Defi" so, In what ways does UNIFI PROTOCOL be the model of the True DeFi? What should be the right format of a true DeFi according to you?
Well, I actually think that phrase was created by someone in our community haha. We love when our community gets involved!
When building Unifi, we really thought through the existing systems (balancer, uniswap, bancor) and identified some areas we could improve to make the economy surrounding these systems more sustainable. Some of the most important changes we made were to our rewards mechanism, which unlike other protocols, happens entirely on chain and is managed by the smart contracts.
This mechanism also allows the value of the rewards that individuals earn to increase over time.
In addition, Unifi is designed to be a cross-chain Defi platform allowing communities from different blockchains to easily move into and out of different ecosystems.
And that would be the true power of decentralized finance - no barriers or limitations to access. Kinda like we mentioned just moments ago about the high fees.
Q5. Regarding "uTrade", when a project no longer wants to be part of the UNIFI network, would the holders of $UP tokens still benefit from the fees generated by those projects?
Great question. So I think that questions is referring to the fact that Unifi is an entire Protocol, not just one trading platform on one blockchain. This means any developers can use the Unifi smart contracts and build their own service or product and UP/UNFI token holders still benefit!
(there is currently Developer bounties available on gitcoin, check it out!)
If they are using our smart contracts to collect fees, that UP minting process is built into the code, so yes, token holders will still benefit. Now, there are many creative ways developers can implement the Protocol smart contracts, but ultimately Unifi is committed to ensuring revenue generated by any products on the Protocol on any blockchain benefits UP holders, which impacts UNFI token holders.
Q6. I am a huge Harmony enthusiast and I know that SEED is the first HRC-20 token. Right now we need DeFi protocols on this blockchain, will UniFi be fully connected to Harmony blockchain? What are your plans?
good thing we launched on Harmony this weekend then, right? ??
Go mine UP on Harmony!!
Q7. Given the DeFi wave, why did Sesameseed decide to launch UniFi? What problems does this aim to solve that is not available on the market?
Touched on that a little bit. We built custom smart contacts, so we aren't a clone of whats out there - and we focused on sustainability and true value.
That's important to us
Q8. How will the problem of manipulation and fraud in Unifi Protocol be solved? Is it possible to completely eliminate human influence and fully use a smart contract?
Great question. We (the crypto and defi space in general) are certainly trying with all these attempts at DAO and governance models. It wont happen overnight, but we are making right steps. It's why we have UNFI global governance token and rewards to incentivise participation
Q9. I’ve seen that SlowMist has done your audit and made some recommendations for you to improve. What have they found and are you working on it? Also, do you plan to have any other audit from other Companies?
The report is available on our website. If you arent tech savvy, just ready our blog post on it.
We passed with flying colors
Q10. What features/improvements are you planning to add to your products in the near future?
we just released the UNFI LItepaper. It has a roadmap. Its available on our website ??
Q11. HOW DO I STAKE IN TOKEN UNIFI? WHAT IS THE REWARDS OF STAKING WITH TOKEN UNIFI?
more info coming soon. Read that litepaper haha
Q11. Truly, you've done AMA in many telegram groups, so what next, what other way will you make your project more popular?
We have a whole marketing strategy that we are ramping up to ??
That includes all these AMA's youve been seeing. I try to make each one different though, and tease new information in each other.
Like that bit about derivatives market....
Q12. I would like to have a long term investment with your project but at the moment I have doubts, how can you convince and convince me that this project is very promising?
Our team and our history. Just ask Gary about the core values of Sesameseed ??
We've been around for 2 years, and become trusted community advocates. Check us out!
Q13. What is the most ambitious goal of your project? I would appreciate it if you could share with us any Upcoming Updates?
Interoperability! Cross chain, in a decentralized and trustless manner. We're working on something amazing, stay tuned
Q14.
? Increasing Token price
? make Token Valuable
? Building Community Trust
From 3 aspects above,. I want to ask,. Which one the most important for you?? If all above are important for you,. Which one that Will you do first??
Community!!!
Everything else follows
Q15. What is the Relationship of Unifi protocol with Ontology network?
Awesome. lol
Q16. Do the token holders have right to participate in the governance of the project? On what kind of decisions can they vote on about the project?
check out the article on our Medium blog about UNFI. Gives you some idea
Q17. Could you please tell me just a little more about the team and some of their backgrounds? I have personally seen many projects launch with inexperienced team members, and some of those didn’t go so well due to easily avoidable mistakes.
Check out the UNFI litepaper. And read up on who Sesameseed is
Q18. Where do the SEED Tokens in Unifi come from and what are their usefulness and advantages?
I Love SEED! Its a reward for traders on uTrade. We are the only platform that rewards traders with a token that auto staked on multiple blockchains at once and compounds those rewards daily
Q19. What are the basic use cases of $UNIFI token ?
We will be releasing more info about UNFI over the coming weeks.
It's the governance token of a Protocol that spans multiple blockchains and connects them all together. So...that's pretty cool
Q20. Who are UNIFI PROTOCOL main partners?
We have great partners. Check them out in UNFI litepaper
Q21. Really "Redeem UP tokens is an irreversible transaction"? why do it like this? So, I can not exchange and then generate liquidity again with that capital depleted in uL or UP?
This is part of the token burn process for UP. It's great for all UP holders. Since the burn caused the redeem value of all remaining UP to go..UP!! haha
Q22. At this point, do you think you need exchanges as a BINANCE to keep growing? Or is it better to forget those things and focus on other activities?
If we get the community, Binance will come to us ?? lol
Q23. I understand that Unifi has two major platforms working with it such as uLend (Loans) and uTrade (Trade), are they just these two, or do you have other DeFi platforms developed by UNIFI?
Anyone can develop using the Protocol. If you think you can make a better trading platform, we encourage that and give you the tools necessary to build it
Q24. How does Unifi organize grants for various utilities to be built on the Protocol and how will the pool volume created by users on liquidity mining be used in grant programs?
A few community members have already received grants for the tools they build. We have a dev bounty list on Gitcoin. Join the channel to ask about it
