BlockTalks x Yearn Secure AMA Transcript!
Hello! BlockTalkers & Blockchain Enthusiastic!
We recently hosted an AMA with Yearn Secure, on October 23rd, at 04.00 PM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Yearn Secure Team so here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.
Yearn Secure Team — We are $YSEC, a 5 man team from the Netherlands. Develem is an experienced back end developer and has been working in the field for seven years. just like Zhichoth who has four years work experience and has worked on some projects using react. Simple and Smythe take care of the front end part for now but will join the backend team when we start working on our platform as well, they have two years experience each. Sniekers is managing the project, making sure stuff gets done on time and keep everyone up to date. We have been active within the environment for a while now, using our laptops to mine BTC, in the days where you could by a pizza paying 10K of them. Back in 2016 we build our first Ethereum mining rig which held 5 GPU’s. A year later we worked with a financer and build a bigger one in Norway. The farm we build there holds around 450GPU’s and is divided into 90 separate systems, but farming as one. Around the time ICO’s became very popular in 2017 and were an easy way to X2 — X5 your initial investment we joined the hype train again before getting rekt in Januari the next year. Now DeFi is generating a lot of hype and is a space that is undergoing increasing popularity. Absolutely desirable, but at the same time it is becoming increasingly difficult to safely invest into new projects because of increasing chances of the team not being sincere and the possibility of them leaving the project behind, be it a rug pull or a (slow) exit scam. After having to experience a dev running of with our money a few times, we decided a change is needed. We assembled our strengths once again and YSEC is going to be the outcome.
Introduction Questions Asked By Team BlockTalks
Q1. Could you please introduce Yearn Secure to our community in layman’s term?
Ans — YSEC is going to be an all-round platform and will offer solutions for token / ether and liquidity locking as well as adding liquidity on Uniswap. Besides those tokenomic solutions we will also launch presales added to the platform by the developers creating them. It will be a fully automated process and YSEC will never own any of the assets locked within our smart contract. It will be a fully transparent system as well, where investors will be able to see when and which projects are having their presale as well as how their tokenomics are organized.
In addition, right after our presale, or short after (we have partnered up with the Ferrum Network recently) we will have a YSEC — YSEC staking pool up. Token holders will be able to stake their YSEC for some time, with the option to withdraw early and get a nice APY in return.
At the time our platform launches we will launch a YSEC — ETH dividend staking pool as well. We believe this is our most bullish tokenomic where tokenholders can grab a piece of the fees generated through developers using our platform.
Q2. What are the advantages of Yearn Secure to the other alternatives in the Blockchain field?
Ans — At this moment there are no working platforms or solutions that do what we want to create. There are however parts of our services that are currently existing as standalone working projects. Such as bounce.finance which is a presale platform, and team.finance / unicrypt.network which are liquidity/asset locking solutions. Developers have to connect with Unicrypt and TEAM to lock their assets and have to add the promised liquidity on Uniswap (you hope!) themselves. They can decide to launch their presale through bounce, but since that platform is flooded with quick copies of your presale contract, people end up depositing to the wrong one and got scammed right off the bat.
YSEC will offer all of the functionalities mentioned above and by doing so we’ll become a one stop place to host your own presale, determine which funds/tokens will be locked for how long + liquidity locking.. all is done and decided by the person instigating the presale. There will be no intervention from us, so no deciding if a project is allowed to start a presale. This will help a lot of other projects that want to launch a presale as well. By having it all under one roof, YSEC can ensure transparency and safety for investors using our platform. In the beginning the developer decides on the tokenomics, in the end the investors decide whether or not it is to their liking.
Q3. What are the major milestones Yearn Secure achieved so far & what are in the future pipeline?
Ans — At the moment we have achieved this amazing team. We had our pre-sale contract done, locking all the assets as mentioned in our tokenomics before we got in touch with $LID. We are happy to have met a platform that shares our values and mindset into wanting to make the DeFi space a safer and cleaner space. It also helped us gaining a lot of trust within the existing community which is amazing. In the future we would like to launch our platform for real and contribute to keeping this a safe place as well. We got rugged a few times ourselves and figured that enough is enough. After launching our platform we are introducing the option to our community to stake their YSEC and earn ETH in return, hoping that we can keep it clean and safe from rugpulls in the future as well.
Teaming up with LID means we had some work done, that was cast useless in the end. However we learned a lot that will help us into creating our platform in the end as well :D
Questions Asked on Twitter For Yearn Secure Team!
Q1. What your long-term vision of the industry Yearn secure team works in? Are you afraid that so meday another project with better and more innovative technology will replace Yearn secure project?
Ans — This is a very interesting question but also a difficult question to answer imo. At the moment we are at the beginning of the rise of DeFi, a market that we are convinced will play an important role in the crypto world. However, it is also a market in which a lot is already being scammed and rugpulled. We strive to realize partnerships with projects that have like minded visions to keep the market clean and safe for both the developer and the investor. There will certainly be projects that will deliver similar products. However, we do not see this as a competition, provided that they start working voluntarily, but competition will never be our first goal. A partnership would be much more obvious to us in that situation, so instead asking ourselves how do we compete, we can ask, how can we work together to ensure broader and safer support in the market.
Q2. Regarding the $YSEC token distribution, 5% is allocated to marketing 1 and 14.3% to marketing 2. What is the difference between both marketing?
Ans — The difference between the two is that marketing 2 is locked in a smart contract of $ LID protocol, prior to the presale there have been quite a few parties involved into putting $YSEC on the radar. These people have done this based on the vision that our project is of quality, and that DeFi needs more ‘gatekeepers’. However, they will have to be paid. That is why Marketing 1 is not locked. They will be financed from the marketing 1 part of our tokenomics. We are currently in touch with a number of influencers, who will continue to put us out there after our presale is done. They will also have to be paid. This will happen from the marketing 2 part of our tokenomics. The marketing 2 part which contains 14.3% in total is time-locked and will be released in installments of 10% each subsequent month after the presale. In conclusion, this part will be responsible to pay for the marketing of our platform and will be used to bring our platform to the attention of those who don’t know us yet.
Q3. I got excited about this idea of “Self service Presale Platform”. so what makes YSEC unique? What security measures will be taken? What are the basic qualifications and requirements to participate in the YSEC Presale?
Ans — What makes us Unique is not the features we provide. If you want what we offer, one can just go to Unicrypt for liquidity locking, bounce for presale launch, TEAM Finance for token locking and Uniswap to add liquidity — tokens. What DOES make us unique, is the possibility to do all that within one platform. Accessible to everyone. Developers can design their presale and their tokenomics here, link their socials, etc. Where the developer had to add liquidity himself and lock tokens / assets himself too, this is now all done automatically with YSEC. What the developer indicates in the presale design will be flawlessly executed by our platform without YSEC ever having control over the finances that we process. Everything is fixed in our smart contracts and only the initiator of the presale can access it, at the times indicated by themselves, never before! The investor then determines whether the contract is satisfactory. Because everything is transparent and visible to everyone at all times, we ensure that investing in a project is safer. Which makes us even more unique in addition to these functionalities. is our YSEC dividend pool. You can find more about that in our litepaper, or we can discuss it in our telegram channel.
Everyone can participate in the YSEC presale, we do not have a whitelist. Our presale is also organized by $ LID Protocol. For our own project, we will therefore be exposed to strict requirements regarding our assets / liquidity. 65% of the ether that is raised is permanently locked as liquidity on Uniswap against almost 20% of the tokens. Also, all allocations of 10% or greater will be timelocked. 10% of these numbers are only released in the 10 months following the presale.
Q4. It is becoming increasingly difficult to safely invest in new DeFI projects because of the growing possibility of disincernment and the possibility of project abandonment. What does YSEC offer to motivate participation? How does it address this problem?
Ans — We are very happy about the dividend pool we are going to launch with our platform. By adding this dividend pool our community will work as a marketing catalyst, making sure people will want to participate! To explain it more clearly, it might be useful that I first explain what the dividend pool will entail in a nutshell. Our tokenholders will have the opportunity to participate in our dividend pool. A standard tokenomic within the presales we are launching will be a 5% base fee for the use of the platform. At first this may seem like a lot and this will probably put off a number of developers. The upside to that tokenomic however, is that 50% of that fee is added to the dividend pool. We have taken Bounce as an example for calculating the refund to the community. When we compare their figures to the dividend pool, there would have been a return of 15,708 ether in just 2 months and a little. So what is happening now is that the community would like developers to use our platform, because they receive ether as a reward for it. The community will therefore provide a lot of exposure, which makes it attractive not only for YSEC token holders to stake their tokens into this pool, but also for developers because the community will grow and their project will automatically receive a lot of exposure as well.
Q5. Can you tell us about the motivation and benefits for investors to keep the YSEC token in the long run? What plans do you have to help drive the demand and scarcity of the YSEC token?
Ans — This might become a long answer as well haha.
Right after our presale, or short after we will have a YSEC — YSEC staking pool up.
Token holders will be able to stake their YSEC for some time, with the option to withdraw early and get a nice APY in return.
When our hardcap is reached, 300.000 tokens will have been sold. 200.000 tokens will then be added to the staking pool. This will happen in monthly releases of 20.000 tokens.
Since we are launching through LID, our farming allocation is time-locked releasing 10% of the initial locked amount each subsequent month.
We are partnered with Ferrum Network for their farming / staking technology and are still discussing on how to optimize APY within these staking pools and in what ways we can make it most interesting for our tokenholders to participate.
We will be announcing all the specific details as soon as all is worked out.
Immediately with the launch of our platform we will also be launching a dividend staking pool.
Token holders will be able to earn a part of the fees generated in ether by vesting their tokens here.
We are very excited about our dividend pool and urge our token holders to hodl to get very attractive returns!!!
Our dividend pool is a bullish tokenomic and is integrated to use our community as a marketing catalyst. The more projects decide to launch through YSEC, the more ETH will be added to our dividend pool. The happier our community will be and the more attractive it is for developers to use our platform to organise their presale!
Questions Asked by our BlockTalks Community Members during live Session to Yearn Secure Team!!
Q1. What is the release schedule of tokens? What jurisdictions are eligible to participate in the sale? Lately gas-prices on the ETH-network have skyrocketed to some pretty ridiculous points. Could a similar situation lead to problems with the Yearn Secure or do you have mechanisms in place, to prevent this problem?
Ans — The release schedule of our tokens are as follows.
20% of the marketcap is allocated to the YSEC — YSEC farming pool. 10% of these tokens will be released monthly.
30% of the marketcap is going to be sold in our presale through the $LID Protocol. There is no jurisdiction / anyone can join, we dont have a whitelist either.
19.7% of the marketcap is going to be added as liquidity on Uniswap and will be locked PERMANENTLY.
5% is marketing that is released right after our presale and will be used to pay for marketing done before our presale started.
14.3% is marketing 2 and will be used to keep us on the radar for the time to come! This is also locked and will be unlocked by 10% each subsequent month.
10% is for the team.. again. locked! haha
Unfortunately we do not have any influence over the gas price on the Ethereum network. However, the gas price will not lead to any problems in using the YSEC platform.
Q2. 1-Increasing Token price
2- make Token Valuable
3-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??
Ans — All of them are important for us. First of all the token will become more valuable through the community, First up is the YSEC-YSEC staking pool we create ensuring people can use their YSEC, after the staking pool we will launch the dividend pool we’re trying to launch will give 2.5% back to the community. This creates a big incentive for users to make projects launch through YSEC. This in turn will increase the Token Price making it more valuable for everyone.
Building community trust will happen through the transparency we give to every project. Every project that launches through our platform will have their tokenomics transparent.
Q3. Blockchain doesn’t mean decentralization yet. What is the level of decentralization in Yearn Secure and where is user funds stored?
Ans — This is correct, at the moment decentralization has not been achieved fully yet. However with our platform we will be as decentralized as we can be, by letting smart contracts do all the work, we will have no authority over any of the assets used via presales on our platform! Only the creators of the presales on our platform will be able to access these funds
Q4. Any small coding error can permanently damage the entire assets of the LPs. This is the biggest risk of Yield Farming . How will you deal with this problem? Has your smart contract been audited by any blockchain system?
Ans — You are correct with this, in a way. Since smart contracts are immutable on the chain a single error could be disastrous, so auditing is a needed thing. Our smart contracts will be audited by a respectable company(to be determined) before the platform will go live! Another solution to this immutable state is the use of proxies, by using proxies we will be able to update our code if needed, this will ensure bugs are fixable in the future.
Q5. STAKING is very popular topic recently- Please tell us in detail about the $YSEC Staking plan and the benefits of adding staking?
Ans — We are currently talking with Ferrum network to set-up our YSEC-YSEC staking farm. The main reason for this farm is to make sure we don’t fall into a dumping market after our presale. The way we aim to do this, is to establish a staking pool where people will stake their tokens for an x-period of time and give a satisfying APY in return. When we know exactly how this pool will take shape, we will update our community!
The most interesting part of our platform for tokenholders, is the dividend pool our platform will provide.
A standard tokenomic within the pre-sales launching on our platform, will be a 5% base fee in ether raised. Half of this will be used to continue developing the platform. The other half however will be added to the dividend pool where YSEC stakers will be rewarded in ETH. To give an insight into what this
might mean for YSEC tokenholders, we used the data from a platform we are aiming to be a direct competitor of: Bounce. Using the total amount of ETH that came through Bounce in the past few months, we can calculate the earnings the pool would divide if the YSEC platform is going to be used in the same frequency.
A total of 628.318 ETH has been transferred to developers using Bounce as their pre-sale platform. When translated to the YSEC platform that would mean 15.708 ETH would have been added to our YSEC — ETH dividend pool, representing a total value of 5.8million USD in a time period of just little over 2 months. Our dividend pool is a bullish tokenomic and is integrated to use our community as a marketing catalyst. The more projects decide to launch through YSEC, the more ETH will be added to our dividend pool. Because our community is rewarded for presales launched through YSEC, it will, in turn, make sure there will be a lot of exposure. Why? The more exposure, the more projects launch trough YSEC, the more our tokenholders will earn.
Q6. It is unfortunate that some projects remain half way because their developers abandon the concept because they cannot achieve the desired capitalization in the long term; how do you plan to make this project sustainable for its development?
Ans — To make sure we can sustain the development of this project we have a hardcap of 2500 ETH. If we hit the hardcap we will be working full time on this project, resulting in the YSEC team developing faster than the expected roadmap on the website. If we hit softcap we will continue working on the project and follow the roadmap on our website (https://ysec.finance/)