September 29-th held an Ask Me Anything session at ICO Speaks telegram chat. From the Demeter side, there were: Darrel |Business and Marketing team |
Let’s get started!
Q: Could you please introduce yourself to our Community?
A: My name is Darrel, I am from Gold Coast Australia. I have two masters degrees in Business and Marketing and have been in the marketing field for about 6 years now.
I got to know Demeter and the team through a friend a while ago and am very lucky to become part of this. I am excited to work alongside a group of talented and passionate people and help bring this project to life. We all truly believe in this project and I am sure it will not disappoint.
So thank you ICO SPEAKS for giving me this opportunity to chat to you about Demeter and give you a little sneak peak before the great day comes.
Q: What is Demeter? and how your team can create this project?
A: Demeter is a decentralized cryptocurrency marketplace protocol based on the Heco network, dedicated to providing a more stable, secure and decentralized stablecoin solution.
We aim to become the “MakerDAO on the HECO Network “and to solve the problem of the lack of cost-effective stablecoins on HECO and the inefficient use of DeFi liquidity farming assets.
However, we are not stopping at just being “another MakerDAO”, we want to offer our users much more. DEMETER has made further innovations on top of MakerDAO and Compoud, introducing unique features such as Credit Rating Model (DCRM), Dynamic Interest Rate Supply Mechanism (DIRSM), Shared Revenue-Treasury double layer governance model, inflation tax, etc. to provide users with more convenient, efficient and well-rounded lending services
Q: What are the special features and advantages does Demeter want to offer?
A: Demeter has our very unique features and advantages that set us apart from many others in the market.
First of all, Demeter provides our users a better decentralized stablecoin solution.
Demeter, like MakerDAO, through over-collateralising, all issued stablecoins are backed by sufficient assets, the information on the chain is open and transparent, and there is no room for foul play.
Secondly, other collateralized stablecoins such as DAI or VAI are often out of anchorage from time to time, especially VAI. It is at negative premium level for a long time, we believe this kind of de-anchoring is unjustified for stablecoins, therefore we designed the Target Rate Feedback Mechanism (TRFM) and Dynamic Interest Rate Supply Mechanism (DIRSM) to make sure that the value of DUSD would not drift away from USD.
The protocol is designed to maximize efficiency of capital utilization.
From DeFi Summer 2020 to DeFi Autumn 2021, we can see that DeFi LEGO has been refined like never before, with DeFi’s total TVL exceeding $110 billion, a large amount of assets being invested in various protocols, which is mainly used by users to provide liquidity for trading needs. For example, MDEX alone has a TVL of $1.47 billion on HECO.
Although these LP assets have poor liquidity, they do make very good credit collateral. In V1, Demeter will support some high-quality LP assets as collateral, while in V2 and V3, the collateral assets will also include board vouchers, node voting vouchers, structured financial assets, etc., maximizing the potential of the assets in the DeFi ecosystem
Our users will receive genuine, secure and sustainable returns from the protocol.
In terms of liquidity mining, Demeter has a well-designed mining model that provides participants in the protocol with ample rewards, including depositing and borrowing, liquidity mining, and minting. Users can also participate through other projects within the HECO ecosystem and pick other approaches to participate such as single-token mining and leveraged mining based on their risk preferences. Demeter is expected to be one of the highest yielding DeFi projects on HECO once it is live.
It should be specifically noted that we believe a healthy DeFi project necessarily needs to rely on genuine cash inflows from actual business, rather than maintaining a phony boom by constantly issuing new tokens. Therefore, Demeter’s DAO is not within the scope of mining. Instead, the DAO rewards are purely real project revenues, with revenue sources that include
Q: Please tell us about $DMT and $DUSD token! What are the token use-case, distribution, and also where we can buy it?
A: The world would be a preposterous place if we use the stocks for shopping, while electing a president based on the amount of dollars each person holds in a US election. So we think it is necessary to separate the circulation and governance attributes of tokens.
DUSD is Demeter’s stablecoin. Valuing its security and sustainability, DUSD is generated by overcollateralization.
Minting DUSD is equivalent to lending $1USD of debt, and the credit will be shared between minting and borrowing. In order to maintain the 1:1 anchoring of DUSD to USD, Demeter has established a series of monetary policies, including the Target Rate Feedback Mechanism (TRFM) and Dynamic Interest Rate Supply Mechanism.
The value of DUSD is backed by a basket of cryptocurrency combinations, which is not only differentiated from the collateralized fiat currencies or a single cryptocurrency on other decentralized stablecoin protocols, but also makes DUSD highly decentralized, faster, safer, more cost-efficient, and easier to use through the HECO network.
DMT is Demeter protocol’s governance token, similar to the MakerDao’s Maker Token (MKR). DMT can be used by the holders to:
Participate in Governance Voting on various matters within the protocol.
Participate in DAO Treasury Allocation.
Participate in incentives allocation from DAO revenue pool
Users can earn rewards by staking DMT, which is equivalent to bank deposits in the centralized world. Similarly, reward yours vary depending on the term, except that staking DMT will have higher flexibility as with higher returns.
Q: Could you give us some information about your roadmap, your milestones, and also your future plans?
A: 2nd Quarter of 2021
Form core team members, and initiate project development.
Complete project financing.
3rd Quarter of 2021
Complete Demeter core function development testing and contract audit
IDO distribution on several reputable platforms
Deploy HECO network Version1. (V1) and start liquidity mining
Expand eco-partners, increase DUSD usage and usage scenarios
4th Quarter of 2021
Deploy Heco network Version 2. (V2) to support scalable Demeter bridge and cross-chain lending.
Collaborate with multiple eco-infrastructures to expand DUSD usage scenarios
Build richer credit tiers and optimize Demeter interest rate markets
2022
DUSD lands on more mainstream trading platforms and eco-networks, creating more convenient exchange venues for users.
Launch graded Funds & fixed revenue bonds
Launching the bonding agreement for non-standard assets, providing the financial market with high efficiency and liquidity for certified staking and refinancing, future cash flow bonds and convertible bonds
Explore smart pools, fixed interest rate and agencies, off-chain assets, on-chain lending and other businesses.
First of all, we need to become MakerDAO + Compound on HECO, this means that our lending market size will grow to be the biggest on the HECO network, and at the same time, the stablecoin DUSD will be used in a large scale. This is the end of our short-term goal and the starting point of our long-term goal. We will explore more new areas in the future, including cross-chain lending, synthetic assets and NFT assets lending, structured financial products, etc. I think this is a never-ending journey, our biggest goal is to keep exceeding ourselves!
Q: What is the future like for Demeter?
A: Demeter has already completed core functional development testing and auditing. We are in the process of deploying Demeter mainnet (V1) on the HECO network and launching liquidity mining.
And within the year, Demeter will complete the deployment of Demeter mainnet V2, supporting the scalable Datemer bridge and cross-chain lending, extending Demeter’s frontline to ETH, BSC, Polygan and other public blockchains, building a diverse ecosystem that adapts to a multi-chain environment.
By 2022, Demeter will launch graded funds and fixed income bonds. Non-standard assets bonding protocol will go live and creates a financial market that provides high liquidity for certified staking, refinancing, future cash flow bonds and convertible bonds.
Q: What is TRFM? Can you explain this mechanism in detail?
A: TRFM will be employed by Demeter in order to maintain the Target Price of $1 DUSD is $1USD: when the DUSD price falls below $1, the collateral ratio for the CDP (Collateral Debt Position) decreases and less DUSD will be available for the same collateral, which corresponds to a decrease in supply. And when the price of DUSD falls below $1, the stability fee required to hold DUSD increases, so as the cost of holding it, prompting users to buy back DUSD to repay it.
DUSD will be supplied at a dynamic interest rate, with an annual over-provision rate consistent with the stability fees, with the inflationary share going entirely to the DAO revenue pool and the DAO Treasury, without any subjective malicious increases.
In addition, Demeter has set up a mechanism for the overprovision allocation rate, where a certain percentage (0%-100%) of the overprovision revenue along with a portion of the governance tokens will go into the DAO Treasury, thus ensuring that the actual annual overprovision rate is in an adjustable state.
Q: Can you tell us about some of the partners that is currently working with DEMETER?
A: First of all, we are lucky to have Heco’s support to help us bringing this project to life. And we have PeckShield to audit our codes to ensure the security of the project.
As some of you might know already, we have completed IMO on Mdex on the 13th Sep, with IMO total amount of $140,000, over 6,500 participants and over $350 million staked. It was a huge success, and we received a lot of support from the amazing community.
Since our official launch, we have been in conversation with various projects and we are very excited to start our partnership with ButterSwap and looking forward to creating better earning experiences for both our users.
Other partners we have at the moment include: WeStarter, BoosterFarm, Nextype, Huobi, TokenPokect, and many more.
In the longer term, we will also introduce innovative protocols such as graded funds, fixed income bonds, and non-standard asset bonding agreements, and it is just a matter of time that more and more projects will jump onboard to partner up with us.
Q: Does your project support staking program? if yes. how does your staking system work? What is needed for users to stake in your platform?
A: Yes, we do support staking. Participants will get rewarded for staking DMT and earned governance voting rights. Our mechanism is more similar to Curve, with different lock-in periods allowing for different voting weights.
It should be noted that the Demeter DAO rewards are all real income from the agreement and are issued in the form of DUSD.
Q: NFTs is hot trending now, Do you have a play to have NFTs in your platform? If so, can you tell us the plans of your project in NFTs?
A: We have plans to start things about NFT. In fact, we have established a cooperation with NEXTYPE. We will start an AMA event in our community on the 29th. You can learn more.
Q: Which idea strikes to you to get this project name ? What does it mean to you .Is there any slogan of the project ?
A: I am glad you are interested in the background story of the name of our project, as I personally think it is a beautiful and meaningful one.
Demeter is the goddess of agriculture, grain, and harvest in ancient Greek mythology, and one of the twelve gods of Olympus. She teaches humans to cultivate, gives life to the earth, and allows people to have inexhaustible wealth
The process of liquidity mining is a process very similar to cultivating and harvesting and it is in our interest to help our users to have access to wealth. It represents a new beginning in the decentralized world.
Demeter leads our users to participate in decentralized farming, minting and using decentralized stablecoins and planting new seeds to harvest more rewards. It is a romantic yet great mission of ours.
Q:Do you have any Bug Bounty to check for weakness? In what way do you plan to make Your project more complete??
A: In order for us to grow quickly, we plan to have a bug bounty community program in December, and we will also let DAO as soon as possible to make our project more complete.
Q: To attract an investor to a project, it is important for a project to have tokenomic, experienced team, clear road map etc. My question is do you have all these in your project? If so, where can an investor know the details?
A: You can check all the content in our gitbook. If you don’t understand anything, please send a private message to me or anyone on my team.
Q: Where I can get the latest updates or more information about the project?
A: You can follow us on Twitter, Telegram and the medium, we have the latest news synchronized.
We have a user-made tutorial competition recently, and many mining pools are open.
ICOSpeaks hosted an AMA Session with the Demeter Team. That’s all for today.
Thanks to all users who participated.
Thanks, Demeter for being with us
Thanks, all and see you soon😉
Cheers 🥂
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