We recently hosted an AMA with YIN Finance, on December 1st at 1 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 Marco, BD at YIN Finance 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.
Introduction Questions Asked By Team BlockTalks!
Q1. Can you briefly introduce about YIN Finance?
Ans — YIN Finance is a multi-strategy NFT liquidity management platform that allows users to subscribe to liquidity management strategies to achieve effective high-yield. We aim to provide proactive liquidity management services on different public chains and decentralized exchanges. Currently, we are going to deploy on the Ethereum MainNet, subsequently we have plan to launch on Optimism, BSC, Polygon, Solana and Harmony.
Q2. Can you introduce about yourself and the team behind YIN Finance?
Ans —My name is Marco and I’m responsible for external communication and collaboration in YIN Finance team. I am mainly responsible for our global marketing strategy, user growth, project collaboration and pitches to Venture Capitals.
We are an anonymous team. The team at YIN Finance consists of several ‘scientists’, each with top DeFi development and community white hat experience. Our team members possess rich experience in DeFi project development, professional liquidity strategies as well as smart contract auditing experience, thus ensuring the security and financial return of our project.
Q3. Would you mind to elaborate further on YIN Finance and what are the different features that users like us can expect?
Ans — YIN Finance consists of 4 modules: (1) YIN, which is the governance token; (2) YANG, the user’s personal vault; (3) CHI, the programmable strategies and (4) Grand Master, the leverage pool. We can offer active liquidity management, automatic reinvestment and multi-party yield farming services for users.
CHI is the most important module because it is the core competitive advantage of YIN Finance to generate return for users. The strategy deployed via CHI are sophisticatedly designed by Shadow Labs, an institution which specialized in strategizing structural financial product, even in traditional market. Later on, expectedly in Q1 2022, YIN Finance plans to be an open platform where users can create their own strategy and allow others to subscribe!
Q4. Understood that there are a few service providers in the liquidity management space already. Can you share with us who are your competitors and what is YIN Finance’s unique selling point?
Ans —Yes, liquidity management in DeFi is an undiscovered gold mine and many have been paying attention to it even before the launch of Uniswap V3. YIN Finance chose to be an active liquidity management platform and is in position to make great optimizations among existing competitors. Some players already in the market for reference are Visor, Charm, Tokemak and Popsicle Finance.
Taking Visor as an example, as we all know, Visor and YIN Finance share the principle of active liquidity management. However, major distinctions exist. Visor platform is the sole provider/creator of its strategies. Focused on high volatility strategies in the ETH-USDC trading pair, users mainly gain from fees incurred.
YIN Finance allows user-created strategies, and the platform also provides low-volatility stablecoin strategies, third-party mining protocols, and interoperability supported for optimized strategy capacity. Therefore, YIN’s position is a more comprehensive, profitable & compatible platform for users.
Q5. Can you please share about partnerships established and also investors for YIN Finance?
Ans — At present, we have 7 official announcements, about our cooperation with Polygon, Parsiq、parami、1sol、wepiggy、DODO、goPocket, Drops and there will be more official announcements about YIN Finance co-operations in the future, we will announce it according to our road map. We also have our weekly report on our Twitter, which gives updates on all developments including partnership update from YIN Finance.
Investment institutions include Fenbushi Capital, SevenX, Axia8, RBC Capital，EVG, Krypital Capital, DODO and etc. All investors also provide strategic partnerships that help with the success of YIN Finance. As we speak, we are also in contact with multiple investors and actively looking for synergy and potential value added from each parties. For grant, we have already secure one from Polygon team so rest assured we have close collaboration with polygon and look forward to deploy on it. On the other hand, we are also working closely with other teams for grants and will disclose soon in our official channels.
Questions Asked on Twitter For YIN Finance Team!
Q1. From where you get your project name? What is the main motivation behind your project? do you have any story to share?
Ans — Our name YIN is derived from the ancient Chinese philosophy of yin and yang — the concept of dualism, describing how opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world. This is almost a perfect representation of what a liquidity pool is, as it requires a balance of two assets added into a pool. If one asset starts decreasing in volume, the price gets raised to a level where equilibrium is restored between both assets — hence, a yin-yang type of balance. So I hope this story links the balancing philosophy together with the liquidity balancing in Defi (e.g., Uniswap).
Q2. All the goals of your project is absolutely great, But One of the main factors users looking for in the crypto project is the use cases of the token? So what are the Use cases of $YIN token in your platform? What are your plan to increase the adoption of $YIN token?
Ans — For our YIN token, there are 5 major use cases as below. One way to increase the adoption of $YIN token is definitely organically create value for our users and hodlers. Through continuous innovation and profitable strategy, we believe we will attract the crowd who value our project!
• $YIN can be staked into YIN Stake Pool where users will be able to earn distributed platform transaction fees;
• $YIN holders will be eligible for the governance of DAO (Decentralized Autonomous Organization) with voting rights for proposals and updates, proportional to the amount they hold;
• Users can add leverage into their leveraged liquidity pool, proportional to the amount they hold;
• Users will also receive gains from liquidation within leveraged liquidity pools
- $YIN is also required when creating personalized smart strategy CHIs in YIN Finance MainNet V2.
Q3. YIN Finance allows users to choose to subscribe to various CHI that are available through their personal Smart Vaults. What are the benefits of CHI? What is the most important thing that CHI offers to the metaverse, how can they generate so much liquidity through this tool?
Ans — Benefit of CHI strategy including automated reinvest of asset, auto adjustment of price range in Uniswap V3, created by experienced trading strategy research firm (e.g., Shadow Labs) and etc. Secondly, CHI will not generate new liquidity but will efficiently relocate the liquidity in Uniswap V3 in order to achieve higher yield for the users. All in all, you can see each CHI as a mutual fund where it might invest in different level of portfolio risk and different geographic region.
Q4. I read that once the ecosystem matures and token distribution becomes more widespread, Yin Finance will be converted to Dao mode; however, once the Dao mode is activated, how is the Governance Mode changed or modified? What exactly do you mean by “mature”?
Ans — In fact, the definition of “mature” is whenever YIN Finance is ready to be governed by the public, in this case, as soon as $YIN token is circulated and hodl by different parties and users. DAO mechanism has already taken place on YIN Finance now. We can see that the first YIN Improvement Proposal (YIP) is submitted and currently undergoing voting process in Snapshot. In future, we will see more proposal and recommendation in the form of YIP and the owners of $YIN token will be able to vote and govern the YIN Finance platform.
Q5. Until now with what kind of security do you have in YIN Finance for users about the vulnerability of vaults because for many hackers, this is remarkable because of the capital processed in vaults, users will have to pass KYC or some kind of verification to register with YIN?
Ans — From security standpoint, our contract code is being audited by two institutions, Secbit & Slowmist. Secbit audit is completed while Slowmist’s audit is undergoing a second revision and we expect it to finish very soon! Apart from stringent audit, there are also many community white hats within our team. In order to ensure the safety of users’ assets, we have a relevant risk control measure in place. Other efforts including coming bug bounty campaign and insurance coverage announcements. Security of asset on our platform is our utmost priority!
Questions Asked by our BlockTalks Community Members during live Session to YIN Finance Team!!
Q1. From a security point of view, the Yin Finance contract code is being audited by two institutions, Secbit and Slowmist. Yin Finance estimates to continue conducting multiple audits to the smart contract? What are other layers or security tools that Yin Finance has?
Ans — I would like to emphasise this again, security is important and apart from the audits that we have have conducted, we are also looking and exploring multiple ways to ensure the safety of fund of users. Thus, we will conduct a bug bounty program soon and the reward will be enough to attract high end white hats to give a pair of fresh eyes on our protocol. Lastly, we are also in talk with multiple insurance protocols to have adequate coverage in case there is any unfavourable events. Thanks
Q2. I understand that in later stages any new CHI strategy that is proposed by the community will be studied so I would like to know what would be the possible factors that would be used to determine if a good strategy? Do you have a performance strategy analysis team?
Ans — Yes, we do have a strategy performance analysis team in place. We are still expanding the team to ensure we are able to cope with the flow and creation of strategy in future to come. Some key factors to determine a good strategy are the return, the ability to have a stop loss and the reliability over a period of time a.k.a consistency.
Q3. YIN Finance partnered with Solv Protocol to release NFT vesting vouchers. How do these NFTs work? Can you explain their utilities for YIN Finance investors?
Ans — This is an interesting question. Yes we are collaborating with Solv in issuing our investor the NFT voucher. Basically investors are issued with NFT during our TGE that represent their volume of $YIN token. And because of vesting schedule, investors do not have access to these tokens yet. However, they are able to trade the NFT voucher prior to the release of $YIN token.
Q4. Which do you think is more important: A. Community B. Investors C. Token Price, If all of the above is important to you, which should come first?
Ans — Firstly, investors and community on the same level. We aim to create value for the investors and community, providing conveniences to the users with one-click solution to invest in high yield Uniswap V3 liquidity pools. Lastly, its the token price, with the long term value creation, token price fluctuation in short term is not our priority, once the hodl see the value that we bring to the table, the token price will reflect the true value in the long run.
Q5. In today’s DeFi ecosystem, what common problems does YIN Finance solve? What benefits does the project bring to crypto in general? Why does Yin Finance have value as a project?
Ans — Observed pain point / problem is really the high barrier to entry is the most serious problem regarding active liquidity management. For many, tasks such as setting numerical liquidity, the distribution of assets, price tracking in order to get the best APR, and avoidance and reduction of risks caused by the infinite amplification of volatile losses, are complex and intimidating problems faced by new liquidity providers. YIN Finance offers a stress-free liquidity management service through its flexible liquidity management strategy, called CHI, which is a one-click subscription that allows users to complete proactive liquidity management in line with their risk appetite.
By providing solution to the above to the defi users, we will let the community to judge if we have value as a project.