🌟AMA Recap with Tony Niu, Evangelist for DEPOF (Depo Finance Token) Asia Pacific region

Depo Finance Token (DEPOF) is intended to be a store-of-value crypto asset with a positive price reinforcement mechanism. When the token price appreciates, token holders receive staking rewards based on several factors including the percentage price increase, how long they have been holding for and how many tokens they hold. DEPOF will implement cross chain store-of-value and derivative financial functionalities based on the Cosmos Blockchain Ecosystem.

In the ever exciting AMA with BiKi Exchange, we have invited DEPOF’s Evangelist for the Asia Pacific region, Tony Niu! During the session, Tony has shared fascinating insights into cross-chains, DeFi future and of course, the DEPOF ecosystem. Almost guaranteed to have you leaving this page grinning from ear to ear with all the knowledge and wisdom you need to jump into the new DEPOF wave😉

Here’s the AMA recap on 2020/09/22, 20:00 (GMT +8):

Host
Hello, I’m 大牛哥 from BiKi, and the host for tonight’s AMA. Today, we’re very happy to invite Tony Niu, the Evangelist for Depo Finance (DEPOF) Asia Pacific region to join us on our live AMA to share the story about DEPOF with you.

Tony Niu (DEPOF)
Very glad to join this AMA and share with everyone what Depo Finance does.

Host
OK, let’s invite Tony Niu, from Depo Finance to say hello to you.
All right! Please introduce yourself.

Tony Niu, DEPOF
I am a senior blockchain developer, and also a senior Silicon Valley software engineer. Since 2017, I have been researching and developing leading blockchain technologies and applications with regular interactions with leading researchers at Stanford and Berkeley.

I am a deep believer in DeFi as well as its potential to become a blockchain application that will change everyone’s life in the near future.

Host
Thanks, DEPOF is a project with a strong technical and development skill set. Can you introduce Depo Finance and its development?

Tony Niu, DEPOF
DEPOF is a DeFi token developed by Depo Finance. Depo Finance is founded by Silicon Valley engineers. The team has a long history of collaboration and knowledge exchange with leading blockchain researchers, such as Dr. Dan Boneh, at Stanford and UC Berkeley, in areas of cryptography and consensus mechanisms, etc. Depo Finance is a project with strong theoretical underpinning and engineering implementation skills.

Host
Question 2: Can you give a brief introduction to Depo Finance and DEPOF token? If we could use 3–5 words to describe the project, what would they be?

Tony Niu, DEPOF
DEPOF is a 1) positive price reinforcement 2) deflationary 3) DeFi native 4) store of value tokens. Among these key descriptions, positive price reinforcement and deflationary are the key definitions. DeFi native indicates that DEPOF can be easily embedded in DeFi applications.

Host
Question 3: DEPOF introduces Positive Price Reinforcement, can you explain which pain points such a price action mechanism solves, and what are the advantages of such a price action system? @Tony Torito

Tony Niu, DEPOF
The objective of our project is to introduce a crypto asset that is similar to Bitcoin in nature and also fully integratable into the existing smart contract ecosystem. As we know, Bitcoin enjoys the highest acceptance among all crypto assets. Some financial experts define Bitcoin as a store of value akin to gold.

In DeFi applications, Bitcoin is used in lending and DEX applications, and occupies a high percentage of transaction value. DeFi ecosystem, however, is entirely built on top of the Ethereum infrastructure. Bitcoin is not a native token on Ethereum. Therefore, in order to use Bitcoin in DeFi applications, there is a need to Wrap bitcoin into a token that could be used on Ethereum. This wrapping process introduced extra risks and costs.

DEPOF’s ultimate goal is to have all the value and functionality of Bitcoin, and at the same time, become a native Ethereum crypto asset native to the DeFi ecosystem. We designed the token economics to be as similar to that of Bitcoin as possible, and make DEPOF totally compatible to the Ethereum smart contract ecosystem, on which DeFi applications are built.

Host
Question 4: What are the token incentive and positive price reinforcement mechanisms for DEPOF? How do holders participate in staking?

Tony Niu, DEPOF
DEPOF incentivizes holders through a staking mechanism. The staking rewards are dependent on the price action of the token, which is to say, if the price of DEPOF has a winning streak of a certain number of days and over a certain percentage, holders will be rewarded. This builds up community consensus of holding the token for the long term.

At the same time, DEPOF discourages sellers through a seller burn rate of 5%. For example, if a user wants to sell 100 DEPOF tokens, 5 DEPOF tokens are burnt in the process, the seller only receives 95 DEPOF tokens’ worth of value. This burn mechanism is intended to prevent large selling pressure. We can think of this as the circuit breaker mechanism for stock trading. This mechanism gives sellers pause for thinking if it is in their interest to sell, especially in time of large price movement. Additionally, the burn mechanism creates a deflationary pressure.

Through such mechanisms of rewarding holders and discourages sellers, a positive price reinforcement mechanism is created. The goal is to create a steady rise in value for DEPOF and avoid large ups and downs in price movement.

Host
Question 5: Any major technical features that put DEPOF in a distinctive advantage in the DeFi ecosystem?

Tony Niu, DEPOF
There are several distinguishing features of DEPOF:

1) DEPOF smart contracts are integrated with the UniSwap smart contract system. This enables the 5% burn for sellers.

2) As mentioned previously, DEPOF is native to Ethereum, and has the tokenomics that is close to that of Bitcoin. DEPOF is a price positive, deflationary store of value and payment method. Being a native Ethereum token, DEPOF is much easier to be integrated into DeFi lending, liquidity mining, and other DeFi applications.

3) Cross chain applications through Cosmos and Polkadot ecosystems: DEPOF is being launched as an Ethereum token. In the near future, DEPOF will be introduced into the Cosmos and Polkadot ecosystems. Extending cross-chain capabilities, would open up new applications and user bases for DEPOF.

Host
Question 6: Can you expand more on the cross-chain feature and its applications?

Tony Niu, DEPOF
Currently, Cosmos and Polkadot projects introduced cross-chain development roadmap and SDKs. DEPOF will take advantage of these great projects as a basis to build a cross-chain DEPOF ecosystem to introduce the price action features to Cosmos and Polkadot ecosystems. We are targeting to introduce a TestNet of Depo Finance Chain, which is based on Cosmos, by the end of 2020. This would be the initial phase of DEPOF becoming a cross chain crypto asset.

Host
Question 7: Can you talk about the DEPOF development road map and future plans?

Tony Niu, DEPOF
DEPOF will be implemented and deployed initially on Ethereum. This task has been completed.

In October, based on feedback from the community, we will make improvements in areas, such as incentive mechanisms, burn rate, etc. We will be using the industry standard DIP (Depo Improvement Proposal) mechanism to track improvements and invite community participation.

By the end of this year, we target to launch the first TestNet of Depo Finance Chain, which is based on the Cosmos ecosystem. This will introduce cross-chain functionality to DEPOF.

Host
Alrighty last question is here!! DeFi has been in demand and trending up for the past several months. What is your view of the future of DeFi, and what is your take on the impact of DeFi on the development of the blockchain industry in general?

Tony Niu, DEPOF
Bitcoin and blockchain technology have strong financial attributes since their inception. Decentralized Finance (DeFi), therefore, is a perfect match and use case for blockchain. I am very positive on the future of DeFi.

DeFi is not a simple migration of traditional finance onto blockchain. There will be new DeFi applications that had been impossible to implement in traditional finance. Blockchain technology puts DeFi in a major technical advantage. For example, DEPOF’s programmable interfaces and positive price reinforcement mechanism can only be implemented through blockchain technology.

Based on the strong financial attributes of blockchain technology. DeFi could be a major blockchain phenomenon that impacts everyone’s life.

Host
Much thanks to Tony for attending our AMA and patiently answering all the questions! I believe that everyone has learnt more about DEPOF today!!

Next, let’s move on to our Q&A session!! Ask away everyone and don’t be shy and Tony, please choose 3 questions to answer!

Community Question 1
Question is centered around would DEPOF experience the ‘Rug Pull’ effect?

Community Question 2
How was the token economy model of DEPOF project designed? How to calculate its network value? For token holders, what is the ultility of the token?

Community Question 3
What I want to ask is, what’s the use of holding this token?

Community Question 4
What is the intrinsic value of DEPOF and what is the next strategic development for it?

Tony Niu, DEPOF
DEPOF is intended to be a store of value similar to Bitcoin, and acts as a native asset in the DeFi world.

DEPOF is intended to be a store of value similar to Bitcoin, and acts as a native asset in the DeFi world. Through positive price feedback loop and burn, we try to create a crypto asset that is stable but also appreciates in value over time. So we are trying to combine the advantages of both Bitcoin and a stablecoin. At the same time, DEPOF is totally integrated into DeFi applications, such as lending, insurance offerings. etc.

Community Question 5
In addition to the secondary market users, which other channels of users can participate in the ecosystem of DEPOF?

Community Question 6
Are you worried about the recent decline of the DeFi wave? What is the expectation for the future DeFi market? Are you worried about the impact of a short-term correction on DEPOF?

Tony Niu, DEPOF
We firmly believe DeFi is a long term phenomenon. There is a migration of traditional finance to digital decentralized finance (DeFi). This is a long term trend. The central bank currency is an example of traditional finance being revolutionized by blockchain. Short term price fluctuation is unavoidable. We believe the future of DeFi is very bright. DEPOF is designed to be a base asset, like that of Bitcoin and stable coin, and with a stable appreciation pattern. Given DEPOF’s ability to be embedded into DeFi applications, we are very optimistic about DEPOF.

Community Question 7
What are the advantages of DEPOF in its own field against other competitors?

Community Question 8
What is the economic model and destruction mechanism of DEPOF token? If you buy and hold DEPOF for a long time, how to realize the long-term value-added?

Community Question 9
Do you have any plans to go to the central exchange?

Community Question 10
Why do cross chain? Why move DEPOF to Ethereum? Ethereum has a dynamic DeFi ecology. How can it help DEPOF get in?

Tony Niu, DEPOF
Why do cross chain? this is a very good questions. Currently, DeFi is primairy focused on Ethereum. There are other public blockchains that can be included into the DeFi world. Just to mention a few examples: Bitcoin blockchain, BCH blockchain, EOS, NEO, Tron, etc. As the blockchain industry develops further, there will be more application specific blockchains. These are separate from Ethereum, but still possesses large number of users and value. By doing cross chain integratin, we can unlock the users in these separate blockchain ecosystems. This gives DEPOF a long term fundamental value.

Community Question 11
The speed of cross chain rotation between blockchains is often limited by the slower chains. How do you deal with this problem? Will the increase of later users lead to the increase of transaction cost?

Tony Niu, DEPOF
Cross-chain speed: we are using InterLedger protocol as part of our cross chain technology stack, based on our internal testing, the speed issue can be successfully addressed. So we are building cross chain capability on Cosmos and InterLedger. Through Cosmos Hub, we can access Bitcoin blockchain, and virtually any other blockchain ecosystem.

Host
We have hereby come an an end of tonight AMA session!! A thousand thanks to Tony for sharing and our translator for the hard work in translations!! Thank you all too!!;D

Tony Niu, DEPOF
Thank you all! Thanks to our translator for providing translation!

Learn more about DEPOF:

https://depo.finance/

Connect with DEPOF:

Twitter: https://twitter.com/DepoFinance

Telegram: https://t.me/depofinance

Medium: https://medium.com/@depofinance

BiKi platform will be launching the premiere listing of Depo Finance Token (DEPOF) and opening trading for DEPOF/USDT and the specific details as follows:

1. Opening time for trading: 2020/09/23, 15:00 (GMT +8)
2. Opening time for deposit: 2020/09/23, 19:00 (GMT +8)
3. Opening time for withdrawal: 2020/09/25, 12:00 (GMT +8)

For more information: https://www.biki.cc/en_US/noticeInfo/3431

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