Baryon & Efficiency DAO Fireside Chat Recap: the story of capital efficiency solutions for Long-Tail Holders
If you had a weekend date and accidentally missed Baryon & Efficiency DAO Fireside chat, this recap is for you.
- Project: Efficiency DAO
- Date & Time: 8:00pm (UTC+7), Sep 16, 2022
- Host: Mint from Baryon Network
- Guest: Bruce Huang from Efficiency DAO
- Venue: https://t.me/baryonnetwork
Fireside Chat Agenda
⚡️Section 1 (muted chat): Warm-up | The project Introduction
⚡️Section 2: Live Questions from Community (10 BUSD for each chosen question)
⚡️Section 3: Quiz time (5 BUSD for each winner)
Section 1: Warm-up | The project Introduction
Hello everyone, my name is Bruce Huang, the product manager for Efficiency DAO (https://efficiency.finance/). It is my 5th year in the crypto world, and before that, I am working as a PE equity. I decided to build Efficiency with my team after witnessing some inefficiencies and problems after the DeFi summer. My background in Finance and Risk Management from NYU Stern, and my research skills as a semiconductor analyst also help me to get thru the entire process.
1. Can you share with us the idea behind Efficiency DAO?
Efficiency DAO focuses on two initial features: long-tail asset financing and Defi solution for Fiat off-ramping.
We will first launch a borrowing and lending platform on BNB Chain that supports long-tail tokens in partnership with their communities. In the next phase, we will integrate DeFi lending with Fiat borrowing (“EFFiat”), allowing users to borrow Philippine Pesso, Indonesian rupiah, and Malaysian ringgit with the crypto portfolio. EFFiat will create the first DeFi to real-world "bridge" on BNB Chain.
Long-tail assets (think non-blue chip tokens) are known for volatile price action, and holders tend to forget or ignore these assets in their wallets.
In fact, few DeFi lending protocols attempt to support such assets, even those with significant market value.
Efficiency DAO is maximizing the use case of those long-tail assets by providing them with a DeFi use case. The holders of the project tokens will be able to borrow stablecoins and blue-chip assets against the longtail assets portfolio in the isolated lending pools.
We empower users to borrow against their long-tail assets, tapping into the value of those tokens while the protocols behind those tokens develop.
The inefficiency also lies in the current Crypto to Fiat transaction. To access Fiat from DeFi protocols, tokens must typically be sold on a DEX before the proceeds are sent to a CEX for off-ramping.
Rather than giving up tokens, users should be able to easily post crypto collateral for Fiat. We address a growing need for users to access by seamlessly integrating on-chain lending and secure Fiat borrowing with our Fiat Offramping feature – Effiat. We bring DeFi transparency to a previously opaque, purely CeFi process.
2. Can you tell us more about the vision of Efficiency DAO?
Currently, most DeFi protocols are only supporting the mainstream assets, as they constitute the major TVL portion.
On the other hand, the rise of different blockchain projects in GameFi and social projects generated tons of different project tokens with huge popularity. What we are doing here is to introduce a DeFi solution for people to use the “long-tail” assets.
DeFi has exhibited the astonishing potential to improve the financial health of unbanked people who couldn’t dream of accessing advanced financial products due to the bureaucracy and technical difficulty surrounding them. However, we haven’t seen the progressive change in DeFi’s real-world application.
The blockchain-based, play-to-earn (P2E) game provided people with new jobs, but the complexity surrounding crypto off ramping gives both investors and gamers a hard time using the crypto assets in the real world.
The current expectation—even in developed markets—is a one-to-multiple-day delay for off-ramping from exchanges. In emerging markets, direct off-ramping is not usually an option, but is instead, enabled by P2P services (i.e. Paxful, Binance) that require multiple steps and even risk of fraudulent transactions.
Efficiency DAO would like to introduce people “EFFiat”, the DeFi solution for Fiat Offramping. Instead of giving up the crypto portfolio for the Fiat currency, EFFiat allows users to borrow the Fiat currency against the holdings, using the Fiat for real-world needs while sitting on the crypto holdings for the next value-adding opportunities.
This service is not only needed by active DeFi investors but also by every user with Fiat capital needs. Nowadays mostly everyone has to go through a tedious amount of work in order to gain a convenient and decentralized financial service.
3. Where do you and the Efficiency team see the world of blockchain being in years to come, and how will Efficiency DAO protocol change the landscape of the cryptocurrency space in years to come?
After the DeFi summer, we have witnessed several attacks targeting different DeFi protocols, convincing us that a DeFi protocol should always put security as the top protocol priority
We understand in order for a project like this to be adopted by the community, we need to think about additional Efficiency DAO token use cases.
In the foreseeable future we plan to introduce the following on the development side (not necessarily in temporal order):
1. Launching the Evestor membership program: tiering the rewards for using Efficiency DAO based on the user’s EFF holding. (we called our community members Evestor BTW0
2. Allowing additional projects to be listed on Efficiency DAO
3. Introduce Efficiency DAO risk rating matrix
4. Connecting with more GameFi partners to introduce more tokens
We plan to launch on-chain governance after the first 6 months and EFF holders will become owners of the platform.
4. Who are Efficiency DAO’s partners and what type of collaboration can we expect? Can you share it with us?
Efficiency DAO is working with Coin98 and Impossible Finance for community collaboration. We are working with aspiring projects from both ecosystems including Baryon and Openswap to establish our project exposures!
Efficiency DAO is building EFFiat, the DeFi Fiat Offramping feature, on XLD Finance’s ecosystem, trying to serve the consumers in South East Asia. We are going to announce this partnership in the near future!
Efficiency DAO is researching for the next generation oracle solution with Blockless, finding reliable price feed solutions for different tokens. Spoil Alert: this week we have already made great progress in listing some Longtail stablecoins!
Can our Baryon community expect something too Bruce? 👀
For sure! Really love the vibe here, and we should come up with more events for sure
5. How will Efficiency DAO plan to resolve the security issues around the DeFi and long tail assets?
Yes, security will always be A DeFi protocol's top priority. Efficiency DAO identifies the potential risks around long-tail assets. We launched the risk management procedure and the risk framework to prevent potential attacking scenarios. We are using two main tools to control the risks, an asset tiering system, and isolated lending pools.
The main target of Efficiency DAO’s risk management framework is to maximize the capital efficiency of all supported assets (mainstream and long-tail) through regular borrowing and lending activity and minimize risks and the probability of potential defaults, bad debts, and loopholes.
Efficiency DAO will rank the tokens and projects based on 3 big categories： Market Liquidity, Price Volatility, and Centralization Risk.
Efficiency DAO is grouping the assets into stablecoins and general assets, and we are breaking the assets into different asset tiers within each group based on those risk parameters.
Long story short, the tier 1 assets are the mainstream assets (BTC, ETH / USDC), while the tier 2 assets are the long tail assets ( Coin98, CAKE, IDIA, etc).
Efficiency DAO allows all the assets to be used as collateral, the tier 2 assets are subjected to some restrictions: for instance, people can’t use them together with other assets as collateral, and people can only borrow one type of isolated asset each time.
We will release the official doc on this later! Stay Tuned
Section 2: Live Questions from Community
What is the most ambitious goal of your project? Could share with us any Upcoming Updates? (from @Brant_Hendrix_2003)
The latest updates will be our lockdrop. We will have this in early October this year. Unlike traditional lockdrops, we are supporting way more tokens than people can imagine.
Besides, our long-term target will always be to support as many project tokens as possible. We are also starting testing our Effiat off-ramping feature (EFFiat) right now
Almost 80% of investors have just focused on the price of tokens in short term instead of understanding the real value of the project. Can you tell us on motivations and benefits for investors to hold your token in long term? (from @@kristinagrubb1992)
This is also a very good one. The mercenary money is obviously a trend here at new DeFi projects. This is why I am bringing the Evestor Membership project, cuz we want to provide more utility for our native tokens, also rewarding our loyal community members. Spoil alert, people today have different interest rates and services with Crypto.com debit cards, and we are imagining that the loyal EFF holdings will also have added conveniences. On the other hand, our Fiat Offramping services Effiat also demonstrated our longer-term vision in connecting WEB2 and WEB3 Financing
Your project name seems to be very interesting. Does it have any story behind it? Can you share us with the inspiration for approaching this name? (from @@Inezfarris)
I really love this question. First, the reason the funders want to build this DeFi project is due to the fact that we have seen lots of "inefficiency" in the current DeFi BNL world. We have security issues, we have a limited amount of tokens, and we are seeing users have a hard time doing the Fiat Offramping. As a result, efficiency is showing our Motto to have a better-functioned capital market in Web 3. Meanwhile, "dao" (道） means "way of doing things in Chinese, as we want to do the right thing!
Hello.. Do you have any plans to attract non-crypto investors to join your project? Because the success of a project attracts more investors who haven't yet entered the crypto world. What are the plans to raise awareness about your project in the non-crypto space? (from @Muoi_elliott)
This is also a good one. We are motivated to create a "capital market for everyone", and we are not only welcoming the users in WEB3 words, but also the users from tradfi. The Fiat Offramping feature will be a good start, because we are imagining more users can use Crypto to solve real-world capital needs, by allowing them to borrow out Fiat Currency. Vietnam will also be our target market. https://twitter.com/EfficiencyDAO/status/1559573619986268160
Bear cycle. In a bear run where most of the projects fail and sometimes go into oblivion, how will your project stand the test of time? What strategies do the project employ to mitigate possible losses? (from @@josphine_gibbs_1996)
I agree that the market situation is very volatile, and the crypto market is having a high correlation with the equity market right now. I will say that holding tokens at this moment from a trading perspective is risky, but definitely a great chance to invest! Our connection with the WEB2 finance world and our engagement with multiple crypto communities can help us to succeed in the long term by establishing the bondings with the users. The bear market leaves us with a great time to build. We have great advisors and partners. Coin 98 and Impossible Finance has lots of great users. Our technical partner Blockless is also helping us deliver better oracle solutions. I will say the fact that the market is bad makes us more patient!
Section 3: Quiz time
What is Efficiency DAO?
A. an NFT marketplace
B. a DEX for different assets
C. a money market solution connecting a variety of crypto assets
D. an AMM for different assets
How is Efficiency DAO different from traditional DeFi protocols?
A. Introducing the Fiat Offramping feature
B. Centralizing around the long-tail assets
C. Unique staking program featuring EFF memberships
D. All of the above
What is the ticker symbol for Efficiency DAO’s governance token?
How does EFFiat (Fiat Offramping Feature) work?
A. A user deposits 1,000 USD worth of assets and will receive 1,000 USD worth of the local currency
B. A user deposits 1,000 USD worth of stablecoins and will receive borrowing power adjusted worth of EFF
C. A user deposits 1,000 USD worth of EFF and will receive borrowing power adjusted USD
D. A user deposits 1,000 USD worth of stablecoins and will receive borrowing power adjusted worth of Local currency
What is the amount of the EFF attributed to the community?
A. 5% of the total supply
B. 10% of the total supply
C. 25% of the total supply
D. 30% of the total supply
Which General Assets can be used as collateral on Efficiency DAO?
D. All the Supported collaterals
What will be the minimum EFF staking requirements for users to become a Silver/Gold/ Platinum Evestor
A. 10,000 / 20,000 / 30,000
B. 30,000 / 75,000 / 100,000
C. 50,000 / 100,000 / 150,000
D. 50,000 / 150,000 / 200,000
What new functionality will Efficiency DAO introduce in the next month?
A. Borrowing / Lending
B. Synthetic assets
C. Support for new chains
D. Migrate to an app chain
What will EFF token holders be able to vote for in the future?
A. General direction of the project
B. New features to be built
C. Team members to hire or fire
D. All of the above
Why does Efficiency Dao decide to launch the lockdrop campaign?
A. Rewarding early-stage users for their participation.
B. Demonstrating Efficiency DAO’s dedication to supporting long tail assets.
C. Gaining initial liquidity for future features and usages.
D. All of the above
👉5 chosen best questions: @Brant_Hendrix_2003 | @kristinagrubb1992 | @Inezfarris | @Muoi_elliott | @josphine_gibbs_1996
👉10 Quiz Time winners: @nambeo95 | @doithay1617 | @Groobs03 | @Truongkhanh | @swi_whmr | @Truongkhanh | @TwandaHalsey | @Prestonoet | @Random_NPCV | @doithay1617
About Efficiency DAO
Efficiency DAO is the first money market providing capital efficiency for new and innovative projects. While the tokens with large market capitalization could be used to lend, borrow, or liquidity stakes for earning profits, other ones with small market capitalization are a different story. Thus, the Efficiency DAO protocol promises to bring capital efficiency solutions for Long-Tail Holders on BNB Smart Chain.
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About Baryon Network
Incubated by Coin98 Labs, Baryon Network is a BNB Smart Chain-based Premier Suite of DeFi Products containing three fundamental building blocks: BaryonSwap (AMM), BaryonFarm, and BaryonStake.