Jul 1, 2021
Here’s our 95th AMA recap!
Thank you to the Infinity Chain for participating in Ask Me Anything (AMA) with YFX June 30, 2021. This guest star,
- R.L — YFX Global Ambassador
QUESTIONS MODERATOR
R.L., :
Sure, I’m R.L. an author of two blockchain books. I’ve written for and worked for a number of blockchain projects, today I’m an Ambassador to YFX. It’s great to be here!
Please take this opportunity to give us a detailed introduction to YFX.COM and what is its vision and mission?R.L., :
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 that’s not restricted.
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.
Compared with the centralized derivatives market, the overall market size of decentralized derivatives and the number of users are relatively small. In your opinion, what is the reason why the DeFi derivatives market has not made a large-scale breakthrough? Why did YFX choose to join the DeFi derivatives track?R.L., :
The main bottleneck of DeFi derivatives is gas cost, liquidity and transaction delay. For these problems, YFX.COM V1 version has solutions to the ground, and these solutions are based on user needs and operational perspectives to design, optimize, and perfect the design logic of the entire product. 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, fairness, and open data transparency.
On this basis, the rapid deployment and successful launch of ETH layer2 greatly reduced the cost of user miners and greatly improved transaction efficiency, bringing a true trading experience comparable to or even surpassing centralized exchanges.
On a large level, choosing to enter the DeFi derivatives track, , DeFi no longer relies on the old and inefficient infrastructure, but uses cryptography, decentralization and blockchain to build a new financial system. The system can access well-known financial services in a more effective, fair and open way to complete payments, loans and transactions. DeFi is also likely to become the new cornerstone of the financial system. According to the development path of traditional exchanges, the scale of the derivatives market is several times that of the spot market. Therefore, the decentralized derivatives exchange is about to usher in an explosive period, and its market potential is several times that of the current DEX. Based on the DeFi derivatives track, YFX.COM will make products with a professional and focused mentality, and create a capable derivatives trading platform of completely decentralized, open and transparent data, safe and stable, simple and efficient, and highly innovative through continuous technological iterations.
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.
A： 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.
B： 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!
C：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.
D：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.
YFX.COM perfectly supports layer2. What does this breakthrough mean in the field of DeFi derivatives?R.L., :
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:
A：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.
B： 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.
C： 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.
D：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.
E：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.
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?R.L., :
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:
A：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
B：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.
C：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.
D：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.
How is the economic model of YFX Token designed? Does YFX have a repurchase/ hedging plan? For token holders, where are the main functions of tokens?R.L., :
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.
Many derivatives exchanges on the chain basically choose to be compatible with one or two public chains. Why did YFX choose to support the 6 public chains such as ETH, BSC, HECO, TRON, OKchain, and Polkadot? Are there differences between different public chains in terms of transaction pairs, amount of funds, handling fees, etc.?R.L., :
In the early stage of YFX.com product design, the team has considered the problems of Ethereum mainnet network congestion and high gas. The team relies on the Ethereum mainnet. Through the cross-chain and multi-chain layout, users can trade on the Ethereum Layer 2 xdai, BSC, Heco and TRON these four public chains, basically solving the problem of high gas on the Ethereum main network. The ecology of different mainnets is different, because YFX supports coin margin swap, YSDT swap and hybrid swap, YFX can set up a trading market according to different ecology or use a certain token as a margin to trade perpetual contracts.
The chain fees are network fees independent of YFX, so those are naturally different, that’s the beauty of decentralization — the users choose their chain.
With the continuous development of DeFi, the track of decentralized derivatives has also emerged with different projects represented by dydx, Perpetual Protocol, Injective Protocol, etc. What are the unique advantages and differentiating features of YFX compared to these projects?R.L., :
I can’t speak about what other projects are doing but watching YFX’s developers create the protocols of the future is what I will speak on. These dApps are what people couldn’t even dream about a few years ago. Having the ability to build on these chains and provide users with a very efficient experience is an unreal thing only 12 years into blockchain technology.
If YFX takes care of YFX they will be fine and the competition will follow YFX and not the other way around.
How does YFX.COM plan for community governance?R.L., :
The YFX token is a governance token that users hold to have stake in the outcome of the protocol and the project. This is the future of DeFi. The ability for users to participate in decision making is a revolutionary aspect only available with blockchain tech.
The main trading methods of YFX include trading users, market maker users, etc. How do different types of users participate in YFX?R.L., :
That’s all depended on users and how they want to participate. YFX can’t make that decision for them but all traders are welcome with an open product as long as they comply with their jurisdictions rules.
What is the future product plan of YFX.COM?R.L., :
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.
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.
QUESTIONS TWITTER
I read that YFX aims to build a DEX that can compete with CEX on the derivatives trading floor. What do you think are the main challenges and obstacles that you will have to overcome in order to create a DEX that can beat CEX? What obstacles do you need to overcome?R.L., :
That’s a great question.
YFX has an advantage over CEX naturally. By interoperabilty alone the entire space becomes connected and YFX is the forefront of this innovation.
Trading fees for example, CEXs only utilize the one chain typically or they will be late to adjust to things like adding xDAI.
YFX doesn’t wait around, the market moves fast and by being a DEX these implementations can occur quicker to serve customers.
Partnerships help in boosting success for projects. What are your current partnerships and what purpose do they hold for YFX? How do you plan to attract investors who dont know much about crypto?R.L., :
YFX has a number of partnerships and investors that are all available on the website at yfx.com and on the medium blog.
There’s been a lot of people getting excited about YFX and with the future of crypto looking so bright YFX is happy to be building for tomorrow.
As a first trading platform support coin margin swap, USDT swap and hybrid swap. So ,can you talk about Hybrid Swap? How does Hybrid Swap works ? What hybrid swap are available in your platform? What are the benefits in using your services as a trading platform?R.L., :
The different type of swaps can be quite confusing so I would recommend any user that trades to research the medium literature and the website before doing any trading anywhere for that matter.
It’s all very technical but the advantage of having different types of swaps is the bonus to YFX that doesn’t exist other places.
The Futures market is packed with several competitors like Binance Bitmex, OKEx, FTX, Bybit, HuobiDM. So How does YFX plan to stay competitive with so many new products and players in the market? And How do you prevent market manipulations by whales?R.L., :
There are so many great exchanges right now and the rise of DeFi is seeing new products every single day. So the way to success is through innovation. You can not rest as a company in this century, things move too quickly. So, YFX has a team of developers and community working 24 hours a day somewhere in the world.
That way, the competition doesn’t have any edge, if you’re always working and working smart they can’t compete.
As I know a strong community is very important for every project. Do you plan to be a local or global project? What strategy will be used to expand the community?R.L., :
YFX is a global project — no doubt about that. You can see that from the competitions and the different communications on social media.
It’s a beautiful thing to connect the world through decentralized protocols that are inclusive.
If you provide a great service people will use it, that’s what YFX is building from what I can see.
Having a community spread around the world will only exponentially create more growth.
That’s what is happening now.
QUESTIONS TWITTER
@Bajil20211-Can you please tell the story behind naming of your project?
-How did you decide for this name?
-Where did you get the inspiration???
-How will this name effect the people in your opinion???
R.L., :
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.
@Three_Stars_0022Can you list 1–3 killer features of Your Project that makes it ahead of its competitors ? What is the competitive advantage your platform has that you feel most confident about???
R.L., :
Cross-chain trading. Easy inclusive access, all you need is a metamask wallet with some gas for TX. Lastly, a team that works non stop to provide users the best trading experience on the web.
@messsi2021Do you have AUDIT certificates, or are you working to AUDIT your project, to make it more secure and reliable???,!
R.L., :
The Audits are availabe to look at on CertiKs website. You just search the project and can read about the audit. It’s all there to research.
@Bossking100What is the future trend of DeFi, in your opinion? What is the biggest flaw DeFi is facing today? And is Your Project looking to solve the problem?
R.L., :
The future trend of DeFi is projects like YFX that will continue to innovate and create the future world.
That’s the most important thing right now, building a future inclusive society.
- Telegram Chat : https://t.me/YFX_EN
- Telegram Channel : https://t.me/YFXCOM
- Twitter : https://twitter.com/YFX_Defi
- Website : https://www.yfx.com/
- Medium : https://yfxdefi.medium.com/
- Discord : https://discord.gg/xwAtjpabC5
Thank you for trusting Infinity Chain as the organizer of the event today, hopefully everyone can understand about YFX.
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