Thanks a lot for actively participating in the CrossFi AMA held on 23rd April 2021 at the Game of Bitcoins Channel. We really appreciate all your support. This post is a recap of the entire session held with CrossFi
We have with us David Hong
I am David Hong, the CEO of CrossFi. I'm Chinese-American and got my juris doctorate degree from Georgetown university.
I got into crypto in 2017 and I started the blockchain/crypto practice group at the Shanghai office of King & Wood Mallesons, the top law firm in China where I represented such clients as Crypto.com, etoro, Block.one, Bybit, Hedera Hashgraph, and many others.
Q1. Please provide an overview of the project and it's vision
CrossFi is what I consider the next wave of decentralized finance because it is an interoperability solution that will enable different blockchain assets to interact with one another.
Currently, the majority of DefI is concentrated on the Ethereum blockchain, with many projects recently going to BSC cause of the high gas fees. What we want to do at CrossFi is connect all of these blockchains to provide interoperability across all blockchain infrastructure
We have what we call our multi-asset adaptor (MAP) which allows for the creation of synthetic assts, which mirror the assets of the native chain, and these can be traded on any other blockchain, such as Ethereum for DeFi
We are essentially a liquidity solution
Our vision is to create liquidity for assets across all blokchain infrastructure and enabling anyone to participate in creating and trading derivatives. We are working on our own decentraliazed derivates exchange where our synthetic assets can be traded
If you've seen FTX and Binance have COIN tokens which are derivatives of Coinbase stock. We will enable similar creation of synthetic assets
Q2. How does CrossFi help enhance the Filecoin ecosystem
Filecoin is our initial project and we are working closely with Filecoin ecosystem participants to develop a liquidity solution. As you may know, FIL has an interesting problem where you need more FIL to provide more storage space as equivalent FIL must be staked to the amount of storage to be provided. So there are FIL holders who may not have adequate storage and also those with extra storage but don't have adequate FIL to stake
So our initial solution is to provide a platform to deal with this imbalance of storage capacity and available FIL to stake. The other problem with FIL is the staking period. It's extremely long, 540 days
Anyone in crypto knows that 540 days is FOREVER in crypto
So our technology will enable those who stake their FIL with us to collateralize this FIL and utilize it in the existing DeFi ecosystem
Q3. What will be the primary use cases for CRFI and also please explain the tokenomics of CRFI
Ok so CRFI is our native token for the CrossFi platform. It is the engine that drives our ecosystem. When onchain operations are executed, it is used as gas. It will be used for service fees, transaction fees. It will be used for minting synthetic assets or redeeming them for native assets and it is the key governance tool of the platform
CRFI holders will decide the future of the platform, decide the next liquidity solution we develop.
So we created our tokenomics with a flexible approach so it can be adapted for long term changing market conditions
We have both an inflationary mechanism that rewards CRFI holders/stakers as well as a burn mechanism that controls the supply. CRFI is burned every time a synthetic asset is redeemed back to its native token. We have an algorithmically determined inflation percentage each year and 80% of this inflation amount is distributed pro rata to CRFI stakers and 20% is put into the stabilzation fund which backs our cUSD stable coin
Anyone who stakes CRFI will be helping us provide liquidity as well as secure the network
as such, all CRFI stakers will earn ecosystem incentive awards for supporting the network
Q4. We've had serious issues with rug pulls from tokens lately and honestly, it's nothing to laugh home about. My first question is, how secure are our funds with you? Are our investments safe?
This is a serious question. I think you can firstly look at the name. We aren't called ToTheMoonRocketShipMakeYouRIch token. just kidding
I think the best way to reassure you is to talk about our key investors and partners who have backed us since the beginning. Two of our leading seed investors are some of the largest Filecoin Mining Machine manufacturers in the world
Dataline and DcTech in China and Korea.
Between these two entities we have over 150PiB of effective storage which also means A LOT of FIL is required to be staked and between these two investors we have over 150,000 FIL miners. Who are ready to stake and participate in our ecosystem
So i guess i tell you all of this because I want to show that we aren't some dream
We are solving a real problem and working directly with the stakeholders that are affected
I think you can tell with rug pulls they are too good to be rich they promise you grand visions make you millions over night but dont tell you what they actually they drop buzz words and nothing is ever specific
Our project is straight forward, the initial product is simple and makes sense its solving a real problem. We were able to bring on these Filecoin ecosystem stakeholders because we addressed their problem
Thats the best I can assure you of why this isn't a rug pull
Q5. Would you say your team is made up of experienced and trusted people? I've seen a lot of promising crypto projects crash because of inexperienced team members. What would you say about teamwork on this project?
To be honest, I've been quite lucky to have such a ,solid team on this, with covid, launching a project has been difficult
we've got team members all over the world. getting peoples timing is hard. If its morning for UK and afternoon for Asia, its middle of the night for US
So I was a big ICO advisor back in 2017 in that boom and i saw hundreds of projects and what worked and didn't work. A lot of the issue back then was inexperienced team founders
These were 23 year olds who just raised 10 million dollars, They could code
but could they run a business?
could they figure out how to protect that money?
Many of the projects raised money, kept it in ETH
and then couldn't pay bills, they didn't have treasury management
So I'm grateful for my team
Andy, my COO, manages everything and makes sure that everyone is on schedule and delivering their part. He's constantly in touch with our partners in China and the Filecoin miners. He's been beta testing and troubleshooting our product with them recently
Our Korea lead, Henry is a crypto wiz. He's been in the space longer than me! I've never actually met Henry in person because he was introduced by our Korean partners, but he has just been tremendous and Korea is one of our hottest markets
So yeah, this team has been great and experienced
Q6. What are the security measures you have taken to secure your platform & privacy of users?
So apologies, Im not a programmer, but from what I understand from our technical team is that we keep it simple to limit possibilities for error. We use standardized contract writing, avoid any extra external calling interfaces, and restrict permissions. We also work with third parties to audit our code
And privacy is extremely important to us. I'm a big believer in the ethos of crypto of privacy
One of our key technical advisors is Jason Pope, the CTO of renown privacy blockchain SERO. Pope guides our team through all the critical security and privacy issues that come up with such large decentralized platforms
We have been able to gain a lot from his experience
Gary - This sound so cool "Pope guides our team.." 😛
Q7. A good project always has competition and duplication of ideas. What does CrossFI think about this issue? What is the long-term vision of CrossFi in the blockchain market to keep up with the trends with technology, community and related issues?
You know what they say. Imitation is the sincerest form of flattery. We welcome competition
Andy and I actually played football together, American football..haha. That competition drives us
I think competition makes the industry and ecosystem stronger and more resilient
Look at Uniswap
It came out and then all these copycats came out. now Uni is coming out with its next edition. Uni had to improve cause of competition
Everyone is going to have ideas, but its about execution
So our edge is going to be in execution. We work directly with the primary stakeholders in this ecosystem. The people who are dealing with the problems
We know exactly what their needs and requirements are and we are building a solution to address those issues.
We aren't creating a solution without a problem. We have a clear problem we're solving
I believe in decentralized storage. Why should the big corporations monopolize this space
We can all provide storage. So that has always been our ethos. We work closely with stakeholders to solve their problems
Q8. How can we take part in the private sale or public sale?
I'm sorry to say that the private sale is closed. However we do have two more sales coming up
We are doing the first ILO ever on SakeSwap on April 26
and then the next day on April 27, we will be launching an IDO on DoDoEx
Please check our twitter
https://twitter.com/crossfidao/status/1384874924330917889?s=20
https://twitter.com/crossfidao/status/1384800086912212992?s=20
Q9. The fate of "ADOPTION" of DeFi is tied to the scalability and usability of Ethereum. How CrossFi address this statement about the Adoption of Defi?
I disagree with this statement. Right now, we're seeing more transactions on PancakeSwap and BSC than Ethereum
Solana is new and hot and much faster
you have these old school guys who love Cardano and even EOS is coming back from the dead
different blockchains can serve different purposes
and they can all have some sort of DeFi ecosystem
the problem right now is that each one is its own liquidity pool. So interoperability is needed
We need to be able to connect these blockchains
So with CrossFi, we chose using synthetic assets. We thought that was the most direct solution to the problem
Derivatives are an easily understandable concept from traditional finance. So using our technology, we can achieve zero slippage atomic swaps for our synthetic assets that also allows us to resolve a major problem with DeFi Slippage. Slippage is often caused by thin liquidity
That is another reason why we focus ourselves as a liquidity solution
Q10. Currently What are your major goals to achieve in the next 3-4 years? And What are your plans to expand & gain more adoption?"Staking" is a very popular topic. Can you please explain the details about $CRFI staking plan and the benefits of adding "staking"?
So let's talk long term. I am a HUGE fan of NFTs and because our MAP technology allows us to collateralize staked tokens, it also works for NFTs
A staked token is by definition an NFT because the maturation date will be different depending on when you stake
So our technology can enable fractional ownership of NFTs, which I think is cool and which will also enable people to take out loans on their NFTs
Q11. Nowdays the main problem of crypto market is high gas fees and scalability. How do you plan to overcome this issues? Will you focus on L2 solution like Matic?
Yes we are a Layer 2 solution. Only certain onchain transactions are executed directly on ethereum Layer 1
Q12. What are you doing to gain developer adoption on your project ? Are there incentives or grants for people wanting to build applications on top of it?
Currently we are looking to work primarily with Filecoin ecosystem members. We have a very specific goal when we started and we want to make sure we execute this one right. We will eventually expand, but we have to walk before we can run
I don't want us getting too broad and working on too many things. I want us to one thing extraordinarily well dominate this sector and then move to the next. So right now our focus is on how to build the best liquidity product of the Filecoin ecosystem
Q13. Marketing is a central element for every project. So that everyone knows the potential that a project can bring is vital to achieve the goals set. What is your strategy to attract new users and Investor to CrossFi and keep them long term?
I think success is the best marketing tool you can have and I think that adoption and usage of our product will demonstrate that success and if you are a Filecoin miner or holder and you are seeing others staking with us and being able to use their FIL immediately participate in the DeFi earn even more. I think they will all naturally come over to us
and as more FIL miners and holders utilize our platform for DeFi more CRFI is burned increasing the scarcity of CRFI and more is distributed to our CRFI stakers and liquidity providers
so it will be a natural cycle of news where our token value goes up and there is news bringing in new users which in turn burn more tokens
thats the way we developed our tokenomics to work
Please check our twitter for more info
https://twitter.com/crossfidao/status/1384800086912212992?s=20
