September 27 –th held an Ask Me Anything session at ICO Speaks telegram chat. From the Chfry side there was: Kiki | Chfry Marketin Lead | @kiki_chfry
Hey all, I am Kiki – marketing lead at CHFRY Finance, and I will be answering your questions about CHFRY protocol today. I am marketing lead at CHFRY Finance. 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.
Let’s get started
Q: Can you give us brief introduction to CHFRY and tell us more about the CHFRY products? Fryer, Oven, Cheese Factory, and Flash Fryer – can you tell us exactly how they work?
A: 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.
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. Vault depositors earn fees on flash loans, along with the harvested yields, 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.
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.
Q: Can you tell us about your governance token CHEESE and CHFRY tokenomics?
A: 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 week 157 onwards, rewards will cease indefinitely.
In terms of token distribution, as CHFRY is a community-led project it has been 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 take place on Sept. 28 at 13:00 UTC on Balancer’s Liquidity Bootstrapping pool.
Q: Can you share the detailed information about the IDO taking place tomorrow, on Sept 28? On which platform will you be conducting it and how can we 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 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.
The weights of our LBP will gradually change from CHEESE:ETH = 95:5 to CHEESE:ETH = 30:70 during the IDO, creating downward pressure on the price.
Additionally, we posted a very detailed step-by-step Participation Guide. Every step that one needs to take to participate in the IDO are listed and explained in further detail (with helpful screenshots):
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:
👉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 last but not least, we are currently holding the Pre-IDO giveaway with a 250 CHEESE prize pool, make sure you participate:
Q: What is the mission/goal of the protocol and what kind of value the protocol adds to the existing DeFi ecosystem? According to your whitepaper, CHFRY seeks to go beyond the groundwork that Alchemix has laid out. Could you elaborate on that?
A: Sure!! I would say the mission/goal of CHFRY finance is (1) democratizing flash loans by making them more accessible to general users through developing flash loan-powered applications and (2) also, generally, providing attractive, diversified yields for both less-sophisticated participants who have limited crypto knowledge and also for more experienced members who might have a higher risk appetite.
Just like you mentioned, yes, we aim to go beyond the groundwork that Alchemix has laid out in the real-world viability of yield-backed synthetic assets.
So, Alchemix Finance pioneered Yield Based Debt model – the idea of combining yield aggregators (such as Yield Finance) with collateral-based debt (such as Compound). Instead of paying interest on over-collateralized loans, you can use the interest earned somewhere else on that collateral to pay off the debt over time. This simple idea has proven to be super successful in the DeFi community and definitely provides a clear improvement over previous DeFi interest-bearing loans.
Then, on the other hand, we have Flash Loans – an instantaneous and unsecured DeFi lending solution where a loan is borrowed and paid back all in one transaction – popularized by Aave, exclusive to only DeFi, offering unique investment/trading opportunities. However, currently, only accessible to DeFi users with extensive technical knowledge.
CHFRY introduces a platform that combines flash loans with the yield-based debt model and enhances previously proposed frameworks. We aim to unlock capital efficiency by combining yield aggregators with the yield-based debt model, democratize flash loans to a wider DeFi community through developing flash loan-powered applications and diversify the yield source by tapping into the potential of flash loans.
This way, CHFRY goes beyond the groundwork laid out by Alchemix and aims to solve the existing DeFi market challenges related to capital inefficiencies, correlated yield strategies, and underutilization of flash loan services.
Q: Please share your roadmap. What have you accomplished so far? and what are your future plans. As far as we know now, the CHFRY team plans on building flash loan-powered applications. Can you share a little bit more about that?
A: So, just to give you a short overview of our roadmap. In the 1st and 2nd quarters of 2021, we 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 tomorrow, following which the mainnet will go live.
Our 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)
To answer your question and elaborate on our plans in relation to building the flash loan-powered applications: as mentioned it is our goal to democratize flash loans. We strongly believe It should not be a must to have an advanced technical knowledge to use flash loans, as such we aim to develop applications that will actually make flash loans accessible to everyone. We aim to explore different flash loans use cases and develop applications.
For example, apps for: self-liquidation, reducing debt position, leveraging (long) position by leveraging collateral to earn capital gain when collateral surges, debt swap, collateral swap, migrating positions, etc.
Q: What is the governance model of CHFRY? Can you tell us about your current and future governance models?
A: So, CHFRY’s initial governance will utilize Gnosis Snapsafe. However, before the proposal is submitted for voting on Snapshot there will be an informal governance process: So, in the community Discord, the proposals/ideas that garner enough community support can be submitted for voting. A community member may draft a soft proposal for Snapshot for an official community vote. Such proposals act as a “temperature test” or a poll but do not guarantee implementation. The idea needs to be adopted by a development team, with finalized code audited and submitted via the formal governance process.
So, CHFRY’s initial governance will utilize Gnosis Snapsafe. However, before the proposal is submitted for voting on Snapshot there will be an informal governance process: So, in the community Discord, the proposals/ideas that garner enough community support can be submitted for voting. A community member may draft a soft proposal for Snapshot for an official community vote. Such proposals act as a “temperature test” or a poll but do not guarantee implementation. The idea needs to be adopted by a development team, with finalized code audited and submitted via the formal governance process.
Gnosis Snapsafe is an off-chain to on-chain governance system that is primarily used to control the transfer of treasury assets. As CHFRY matures, we imagine that we will upgrade to a full on-chain governance system (similar to Compound Bravo). This will give more control to CHEESE holders to control governance parameters and protocol parameters, such as new vault strategy integration. 🙌
Q: What is the security measures of Your project? How will you deal with hacking and Bugs problem in the smart contract? What is the audit status
A: Security is the N1 priority for the CHFRY team.
We already have a smart contract security audit, which was conducted by PeckShield. PeckShield is quite a reputable audit firm in the smart contract security space. The audit analyzed the design and implementation of the CHFRY protocol, according to which our current code base is clearly organized.
Нou can access the Audit Report on CHFRY Github → Smart Contract Audit Report: https://github.com/chfry-finance/chfry-protocol/blob/master/docs/PeckShield-Audit-Report-Chfry-v1.0.pdf
Q: NFT is really a hot topic in the cryptocurrency market now. So how is your project planning to develop NFT then how is your project planning to integrate it with DeFi.??
A: Sure. Our team believes that NFTs have a bright future. As such, we aim to incorporate them as much as possible in the protocol in order to enhance the CHFRY ecosystem and make it more attractive for the wider DeFi community.
As mentioned, to celebrate the CHFRY IDO, we will mint special-edition, exclusive NFTs representing CHFRY products. There will be in total 20 NFTs minted — five (5) for each CHFRY product, which will be airdropped to 20 participants of the IDO:
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.
Q: STAKING is one of the STRATEGIES to ATTRACT USERS and HOLD Them and long term. Does your GREAT PROJECT have plan about to Staking?
A: Yes, definitely. As mentioned one of the CHFRY products – Cheese Factory is a place 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. After the IDO once the mainnet goes live users can start participating in the staking programs.
Q: Can you list 1-3 killer features of this project that makes it ahead of its competitors? What is the competitive advantage your project has that you feel most confident about?
A: I would say Flash Loan Mining is definitely one of the killer features of our protocol. It 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. You simply have to get a flash loan, pay the 0.06% service fee and get the reward in return.
Q: IS your platform suitable for Crypto beginners? Or does it only appeal to professional users?
A: We aim to provide attractive, diversified yields for both beginners (less-sophisticated participants with limited crypto knowledge) and more experienced members with higher risk appetite. As such, CHFRY is for Passive Investors with an appetite for great yields on their stablecoin holdings; DeFi Scientists who want to capitalize on market opportunities with cheaper Flash Loans, and general public from the DeFi community who really wants nothing more than to borrow and farm assets. So if you vibe with one of those guys, CHFRY is for you.
ICOSpeaks hosted an AMA Session with the Chfry Team. That’s all for today.
Thanks to all users who participated.
Thanks, Chfry for being with us
Thanks, all and see you soon😉
Cheers 🥂
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