On the 23rd of June, 2021, OKExChain Global hosted, YFX global ambassador, on their Telegram group for an AMA that was both exciting and intriguing.
We had over 400 questions and tried to answer as many as possible within the limited time. Only the questions answered were featured in this transcript.
Enjoy the read!
AMA Structure
Segment 1: The community answers questions on the google form, after which gives the correct answers;
Segment 2: The Telegram group is opened for questions to pour in. The ambassador randomly selects and answers questions.
AMA Conversation — Segment 1
Henry| Host：
Welcome to YFX.COM&OKExChain’s AMA, the theme of tonight is:
“The first DeFi cross-chain DEX on OKExChain that supports 100x leverage perpetual contract transactions.”
We invited YFX global ambassador. Welcome~
R.L.| YFX.COM：
I’m an author of two blockchain books and have been in the cryptocurrency space since finding Bitcoin in 2009. I’ve written for a lot of different projects and today I’m a Global Ambassador to YFX.
Henry| Host：
I am Henry from Cryptdefi. community.I am honored to be the host of this event. I will introduce the decentralized cross-chain perpetual contract trading platform YFX.COM.
This AMA will be held in 2 segment:
Segment 1:The community answers questions on the google form, after which global ambassador gives the correct answers;
Segment 2:The Telegram group is opened for questions to pour in. global ambassador randomly selects and answers questions.
Everyone can ask questions in the Segment 2.
Now, let AMA begin~
Henry| Host：
YFX.COM has been popular for most people, but there are still some new friends who are not very familiar with YFX.COM. Please take this opportunity to give us a detailed introduction to YFX.COM and what is its vision and mission?
global ambassador| YFX.COM:
YFX.COM is a cross-chain decentralized perpetual contract platform based on ETH, BSC, Heco, TRON, OKExChain, and Polkadot. YFX provides up to 100X leveraged the perpetual contract trading BTC, ETH and other assets.
Different from the common automatic market maker model (AMM), YFX.COM adopts the QIC-AMM market maker pool trading method to provide users with high liquidity and low trading slippage. YFX.COM has successfully supported layer2’s perpetual contract trading function. YFX.COM’s goal is to build a DEX that can compete with CEXs on the derivatives trading track.
YFX.com is a domain name that the team has paid a lot for. YFX is short for Your Future Exchange. Its mathematical meaning is the formula Y=F(x). It always reminds us to keep up with mathematics, products, and logic and stay in a heart of awe. The core features of YFX.COM is no over loss, 100X leverage, cross-chain.
YFX’s product features:
1. YFX is the world’s first cross-chain perpetual contract DEX that supports 100x leverage.
2. YFX’s trading fee is the lowest among all DEX, the fee is only 0.05%, and the funding rate is 0.
3. YFX only focuses on decentralized derivatives trading, and the products are more professional and convenient for users.
4. YFX is the world’s first cross-chain perpetual contract DEX that supports 6 major blockchains.
5. YFX’s contract code is fully open source and has passed Certik’s security audit, allowing users to maintain complete control over funds.
6. YFX is the world’s first perpetual contract DEX that supports USDⓈ-Margined, Coin-Margined, and MIX-Margined contracts.
7. YFX perfectly achieves no over loss and no societal clawback.
8. YFX adopts the leading QIC-AMM mechanism to provide extremely high liquidity and extremely low trading slippage.
9. YFX users don’t need to register and log in, don’t need KYC, can withdraw money freely, and have a 24/7 free deposit.
10. YFX has supported all wallets to open transactions, just open the wallet and enter “yfx.com”.
Among them, the characteristics of QIC-AMM, multiple public chains, and 100x leverage make YFX more competitive.
The first essence of YFX.COM is to truly realize decentralization. YFX.COM’s derivatives transactions are all on-chain transactions, open, transparent, and truly without background management. Every user can view information to ensure safety and efficiency.
All users manage their wallets entirely through private keys. The transaction, transfer, and clearing of user assets are all chained through contracts, so the security is higher. At present, there is no real DeFi project on the derivative DEX track. Therefore, in a situation where there are no strong competitors in the market, decentralization is the starting point for YFX to quickly open the market. In addition, user experience is very important. The barriers to use and the difficulty of understanding are common problems with decentralized exchanges and various DeFi products. Based on this, YFX.COM strives to be minimal in product design and operation threshold.
Firstly, YFX has no interest in your personal data ：no email, no phone number or photo ID needs to provide.no KYC.Freely trading 24/7 from anywhere in the world.
Secondly, YFX.COM supports the access of various decentralized wallets. For example, after opening the imToken wallet, you can find that there are links to it which supports 8 languages on our platform when you open the imToken wallet, enter www.yfx.com in the search box and select the online mainnet.
In addition, to meet the trading experience and visual habits of most users and restore the CEX trading experience, the trading interface of YFX.COM perpetual contracts are similar to the K-line volume price interface of centralized exchange order book trading products. At the same time, to meet the individual needs of different users, the team conducted a comparative study on the interface design of CEX and DEX, learned from the design features of BitMex, and launched a customizable and modular trading interface. Users can adjust the size of the interface by themselves.
Henry| Host：
Where can we see YFX.COM’s perpetual contract trading friendly to traders?
global ambassador| YFX.COM:
The main bottleneck of DeFi derivatives is gas cost, liquidity and transaction delay. In response to these problems, YFX.COM V1 version has solutions which are based on user needs and operations. Every link and every line of code will be reviewed by the security audit agency CertiK. The innovation in the derivatives trading mechanism has achieved fairness, with open and transparent data.
1. We have other projects run on ETH, which has high fees for most users. However, YFX.COM is the first trading platform for a cross-chain decentralized perpetual contract that supports 6 public chains，including ETH(layer2),BSC, Heco, TRON, OKExChain and Polkadot”. YFX.COM chose the public chains that are directly launched are low-fee and fast-speed public chains such as Heco and Tron. To reduce transaction friction costs and increase transaction speed, YFX.COM already supports layer2 for providing a better experience. In the true sense, it brings a trading experience that can rival or even surpass centralized exchanges.
2. In the decentralized perpetual contract, YFX.COM is the first to provide 100x leveraged trading. 100x leveraged trading is the trademark of BitMex, the creator of the centralized perpetual contract exchange. I believe that in the decentralized industry, whoever will make it first with 100 times leverage, whoever has the design capabilities of BitMex, may also become the next BitMex in decentralization. Obviously, YFX.COM can!
3. The maintenance margin rate of YFX.COM is only 0.5%, which is the same level as that of CEX. On the other hand, other perpetual contract exchanges generally have at least 5%. The high maintenance margin rate will only allow users to liquidate their positions in advance, which is extremely unfair to users.
4.The fee is only 0.05%, which is the lowest trading fee in the YFX.COM industry. In addition, YFX.COM also has an invitation mechanism. Players use your invitation address for transactions, and 30% of the trading fee will be directly returned to the invitation address, and each transaction can be queried on the chain.
Henry| Host：
YFX.COM perfectly supports layer2. What does this breakthrough mean in the field of DeFi derivatives?
global ambassador| YFX.COM:
Layer2 is an expansion protocol that increases TPS and reduces gas costs. Current layer2 solutions: Rollups, State channels, Sidechains, Plasma, Validium, Hybrid solutions, etc. From a technical point of view, the current layer2 solutions of Ethereum are mainly divided into three categories: state channels, sidechains, and Rollups. The state channel reduces the burden of Ethereum by facilitating off-chain transactions. It has the characteristics of instant access and high throughput. The sidechain, an independent blockchain with independent consensus rules, is not synchronized with the consensus of Layer1. You can see Roll up as an advanced non-custodial side chain technology that puts calculations off the chain, transaction data and the latest world state on the chain, ensuring the availability of data on the chain. YFX.COM chooses the mature technology side chain xDai as the layer-2 solution to provide users with decentralized perpetual contract products, which solves the problem of unpredictable Ethereum gas prices, blockages that may slow down the transaction speed, and needs 2 tokens used to complete any transaction using stable tokens.
Through xDai, YFX.COM trading users can simply, easily and stably conduct decentralized contract transactions:
1. Significantly reduce transaction costs. The xDai side chain provides 5 seconds of block confirmation and an ultra-low handling fee of $0.0002 per transaction. Compared with the Ethereum mainnet, the transaction fee is measurable, and the fee is lower. In addition, it is reported that YFX.COM’s transaction fee rate is also the lowest among DEX.
2. Faster transaction speed, real-time transaction settlement. The Ethereum mainnet currently has about 15 tps, while YFX.COM uses xDai, the tps will be increased to about 70, the efficiency is increased by about 4.7 times, transactions can be completed in real time, and even reach the level of CEX.
3. Lower the transaction threshold. Because the transaction fees are now reduced a lot, YFX.COM will also lower the minimum transaction threshold, allowing users to conduct perpetual contract transactions on YFX.COM with less funds.
4. General margin. Users can use one margin account to trade on multiple perpetual contract markets, which will greatly improve capital efficiency and make trading more convenient. Users can deposit ERC-20 assets, convert them into xDai collateral via Dai, and then trade all trading pairs (Ethereum Network) provided by YFX.COM in the same account.
5. Higher leverage and lower liquidation fines. Users can use higher leverage (up to 100 times) to trade on YFX.COM. The performance of the oracle is improved, and liquidation can be performed faster and more safely.
Henry| Host：
The security of DeFi is also a link that everyone is very concerned about. What measures does YFX.COM take to ensure or maximize the platform’s financial security? What are the safety guarantee mechanisms? Compared with centralized exchanges, can users feel more at ease?
global ambassador| YFX.COM:
According to the statistics of The Block Research, a total of 15 DeFi platforms were hacked in 2020, and the stolen funds amounted to 120 million U.S. dollars. Safety has always been the top priority of YFX.COM. Since its launch, it has maintained a stable operation and has never had a major safety issue.
YFX.COM guarantees platform security from the following aspects:
Code risk control: Every line of YFX.COM’s code can be deployed online only after it has been audited by CertiK which is a well-known American auditor.
YFX Audit Report: https://www.certik.org/projects/yfx
Financial risk control: Drawing on the accumulated experience and models of the existing financial risk control industry for many years, according to the characteristics of blockchain financial applications, formulate risk control models and rules suitable for YFX.COM’s own business characteristics: no wearing mechanism, off-chain and on-chain risk control.
Smart contract security: YFX.COM contract developers have rich experience and hire at least one well-known security agency in the industry to conduct a comprehensive audit. In addition, YFX.COM’s unique DEFI security component can greatly improve system security.
Data monitoring: YFX.COM transaction data is completely run on the blockchain, and user funds are also completely managed by smart contracts. The solution to abnormal data is very sound.
Henry| Host：
How is the economic model of YFX.COM’s platform token YFX designed? Does YFX have a repurchase/ hedging plan? For token holders, where are the main functions of tokens? What are the main ways to obtain YFX tokens?
global ambassador| YFX.COM:
YFX.COM meticulously designed its economic model and launched the governance token YFX communally in the next four years. YFX is the platform token of the YFX.COM cross-chain decentralized perpetual contract trading platform. The platform token will be released on each of the major public chains such as ETH, BSC, Heco, Tron, OKExChain, Polkadot, and the total amount of YFX is 100,000,000. YFX is used for the governance of the entire decentralized platform. YFX adopts installment rewards, in which the community is obtained through mining or market-making liquidity contribution rewards. The development team and early investors only own a small part of the token, and it will be linearly unlocked in the next few years. At present, YFX tokens are used for the ecological governance of the entire decentralized trading platform. The specific functions are as follows: · 50% of the trading fee received by the platform is directly used for repurchasing and destruction in major decentralized token exchanges from time to time, open and transparent.
No more than 50% of the risk fund can be used for the repurchase and destruction of platform tokens · Platform token can be used as margin for contract transactions to expand the liquidity of tokens · Encourage market makers to liquidity market makers, pledge LP token will be rewarded by YFX · The platform token can balance the net position of the liquidity pool and reduce the risk exposure of the liquidity pool · When the time is mature, YFX.com will be handed over to the community for common governance. Holding YFX will have the right to propose and vote on the platform and pledge a certain amount of YFX to open and configure the trading market and enjoy the benefits.
The most important part of the YFX token economic model is that 50% of the transaction fee received by the platform and no more than 50% of the risk fund will be taken out to repurchase YFX tokens in the secondary market and burn them. The specific repurchase plan has been officially announced. Part of the YFX token lockup plan has been launched, such as pledge YFX will be rewarded by YFX tokens, pledge LP token will be rewarded by YFX tokens. YFX.COM will also launch functions such as pledge YFX will be rewarded by part of the trading fee. The specific time is subject to the official announcement. Judging from the recent YFX.COM non-destructive pledge lock-up data, over 2100% APY is very good. The latest activities of the YFX platform can be found at https://help.yfx.com/portal/en/kb/news-annou
Henry| Host：
At present, YFX.COM has launched the three major modules of pledge, liquidity mining, and trading. What is the current overall situation?
global ambassador| YFX.COM:
YFX.COM has achieved impressive results in decentralized derivatives trading. Only the V1 version of YFX.COM, which was launched in January 2021, has helped more than 80,000 users complete a cumulative transaction volume of 10 billion US dollars.
At present, YFX.COM has launched pledges, liquidity mining, trading competitions and other activities, and the response has been good. Regardless of external cooperation activities or the platform’s own activities, user participation has been very high. YFX.COM has carried out precise calculations on various values based on years of trading operation experience. I believe that YFX’s incentives can effectively promote the positive cycle of trading/staking ecology. In this way, both liquidity providers and consumers can enjoy token rewards, and use this positive cycle to continuously optimize the ecology.
Henry| Host：
How does YFX.COM plan for community governance?
global ambassador| YFX.COM:
Along the way, YFX.COM has achieved impressive results in decentralized derivatives trading. YFX.COM V1 version launched in January 2021 has helped more than 80,000 users complete a transaction volume of $10 billion, the number of users contributing to the DeFi ecosystem is second only to Uniswap and Compound.
The original intention has not changed, YFX.COM will continue to promote the development of YFX.COM around the goal of becoming the infrastructure of DeFi. Especially in the three functions of YFX platform token repurchase, pledge and transaction mining, promotes YFX.COM to build and improve its economic model, and promotes all participants to contribute to create an open network protocol and community ecology.
The community is the cornerstone of YFX.COM. YFX.COM community members can participate in YFX.COM ecological governance in various forms and ways. For example, YFX tokens empower the ecological governance of the trading platform, and future holders will have DAO voting governance and other rights. Once the community governance matures, YFX.COM will gradually transition to community governance, so that the community can determine the future development of YFX.COM. YFX token holders can put their YFX into voting or propose new ideas to improve the ecological layout of YFX.COM.
Henry| Host：
YFX is a multi-chain token. How will users’ needs for YFX cross-chain be solved in the future?
global ambassador| YFX.COM:
At present, because there is no mature cross-chain bridge that can solve multiple public chains like ETH, BSC, Heco, TRON. YFX.COM adopts USDT cross-chain solution to solve YFX Token switch chain, that is, after receiving a certain YFX Token cross-chain demand, YFX.COM will burn that tokens on the source chain, mint on the target public chain, and then transfer to the corresponding address on the target chain. All operations will be announced on the official website, and all operations will be performed using a multi-signature scheme. The management of YFX Token’s mint and burn uses a 3/5 multi-signature scheme. All burn and mint operations require three private keys to be signed at the same time. This is currently YFX.com’s solution to multi-chain tokens. At the same time, YFX.COM is actively developing multi-chain cross-chain bridge solutions and is also investigating more mature cross-chain solutions in the market.
Henry| Host：
Currently the platform supports two tokens, BTC/ETH. Will it support other tokens in the future?
YFX.COM supports up to 100x leverage, covering USDT, token margin, and hybrid swaps. Currently, users are allowed to use USDT, USDC, TRX, BTC, ETH, HT, HPT, BNB, FilDA, YFX, 10 tokens as margin for perpetual trading.
YFX.COM will consider more tokens such as Polkadot, Solana and other tokens on public chains in the future.
Henry| Host：
What is the future product plan of YFX.COM?
global ambassador| YFX.COM:
YFX.COM aims to create a completely decentralized, open and transparent, safe and stable, simple and efficient, and highly innovative derivatives trading platform, which can be completely comparable to centralized exchanges in terms of trading experience. At present, the V1 version of YFX.COM has been launched on the 5 public chain mainnets of ETH (layer2), BSC, Heco, and Tron. Recently, YFX.COM has launched on the mainnet of OKExChain. YFX.COM has become the first derivative DEX on OKExChain that supports 100x leverage. You can start decentralized derivatives trading on OKExChain.
YFX.COM, as the first cross-chain decentralized perpetual contract trading platform launched on OKExChain, with excellent technology, let users enjoy the convenient transactions, smooth experience and low gas fee of perpetual contracts in OKExChain.
YFX.COM’s fee is only 0.05% and there is no funding rate.
YFX.COM launch the BTC/USDT (USDT -settled）perpetual contract trading market. Users can link YFX.COM on OKExChain for decentralized derivatives trading. And based on the actual operation of OKExChain， YFX.COM will gradually launch perpetual contract trading pairs of other tokens.
trade :https://www.ok.yfx.com
Tutorial about YFX COM on OKExChain mainnet
https://help.yfx.com/portal/en/kb/articles/tutorial-about-yfx-com-on-okexchain-mainnet
At the same time, with the listing of YFX tokens, the application scenarios of YFX tokens will be gradually realized. The YFX.COM V2 version is expected to be launched in the third quarter to the fourth quarter. It will complete the upgrade and iteration of the quotation mechanism, funding rate, position management and platform token application scenarios, which will bring users a smoother trading experience by then. This version will be a revolutionary product of DeFi derivatives.
YFX official contact information:
Website: https://www.yfx.com/
Twitter: https://twitter.com/YFX_Defi
Medium: https://yfxdefi.medium.com/
Telegram: https://t.me/YFX_EN
Discord: https://discord.gg/xwAtjpabC5
Media Contact: Contact@yfx.com
Henry| Host：
I guess everyone’s ready! Could you please share with us the questions to Segment 2?
AMA Conversation — Segment 2
Sadiya Akter:
How Easy Your project to use for anyone? Including those who do not understand crypto will also use your platform?
global ambassador| YFX.COM:
Very good question — YFX is very simple to use. I wouldn’t call it super basic like signing up for a CEX but there’s only a few additional steps. If you have a Metamask wallet and a little bit of gas to fuel your transactions on the protocol you can use YFX.
It’s not difficult to use and very intuitive to use.
That’s something the team and devs focused on, making it usable for the average person to enable inclusivity.
Ovodro:
Do you have experienced members or consultants in your team who will ensure the effective use of tools such as marketing, media, promotion and social networks to fully achieve your goals?
global ambassador| YFX.COM:
The YFX community is spread across the entire world. There are communities that represent YFX in many countries around the world and hopefully all countries soon. YFX is completely decentralized so there’s always someone working on different aspects of the project.
That’s why YFX has been so successful . There’s someone working on YFX and pursuing success for YFX 24 hours a day and 365 days a year.
That’s how any project, product, or service becomes number one in their industry.
Hon Sue:
Who are your targeted audience and customers? What regions do you target specifically or are there any restrictions to users?
global ambassador| YFX.COM:
The target audience is any trader that loves cryptocurrency. CEXs are still very popular but the rise of the DEX is currently underway.
DEXs like YFX will replace CEXs for more experienced users as time goes on.
Less traffic will be on CEXs and move to DEXs, it’s just common sense. Users will flock to the protocol that enables the most efficient process.
Truong Tran:
What are the key milestones on your roadmap — both things you have already achieved and things that we can look forward to? Any partnerships and short/long term technical milestones that you want to talk about or bring some attention to?
global ambassador| YFX.COM:
There are a number of key milestones just over the course of the last few months for YFX.
Of course the launch of YFX was a huge milestone in itself. YFX was concieved of a few years ago and the process to launch takes time.
YFX hired the best developers to ensure that the protocol was the best on the market and first on the market for 100x perpetual trading contracts.
YFX has a first mover advantage over every other platform, that’s a huge advantage over the competition.
Taxi:
Can you list 1–2 killer features of this project that makes it ahead of its competitors? What is the competitive advantage your project has that you feel most confident about?
global ambassador| YFX.COM:
The killer features are low cost trades and cross-chain trades. This is revolutionary! It almost seems like science fiction that something so cool and forward thinking exists already.
Blockchain is only 12 years old, YFX is going to help take the blockchain space and crypto trading space into the 2030s hopefully.
YFX wants to be number one.
So, there’s a lot of work ahead but the team is confident and working very hard to accomplish this goal.
Henry| Host：
Thanks a lot for being here and sharing with us the insights on YFX.COM — It’s great to get to know YFX.COM in detail!
