Why FIXED? Brief answers of FIXED on HECO’s DeFi Roadshow
Fixed-Rate Protocol is an investment tool that can provide users with a stable interest rate, rebalances risks and returns, and can also provide more stable deposit funds for third-party lending platforms.
Q1：How does FIXED sustain fixed-rate interest while the fluctuations among entire markets？
Recently, the total deposit amount is about 13 million U.S. dollars. The current APY of USDT deposits is about 40%, the APY simple interest of liquidity mining is 450%, and the APY compound interest is 9000%. In addition, Staking $FIX has an APY return of 550% compounded. At present, it is considered to have a healthy start, and further optimization of products is needed to increase profits.
The Fixed-Rate Protocol itself is a member of the DEFI ecosystem. Its interest rates are currently mainly based on other lending platforms in the DEFI ecosystem, so in essence, deposit interest rates will be less affected by short-term market conditions. The lending market itself has a large amount of funds, and at the same time, the lending market has the ability to self-regulate through changes in deposit and borrowing interest rates.
At the same time, Fixed-Rate Protocol makes the changes of interest rates smoother and slower through the design of mathematical models and the guarantee of some other mechanisms. Generally, it will follow the general trend of the market, but it can remain relatively stable locally. Fixed interest rates also require funds to be deposited in a fixed period. Currently, the shortest support is 1 hour and the longest is 30 days. Fixed interest rate For each deposit, the current interest rate can be used as a fixed interest rate within a period of time to protect the user’s income.
Our vision is to use fixed interest rate derivatives as an entry point to provide a buffer pool of floating interest rates in Defi’s lending ecology and provide a more stable financial environment for upstream and downstream.
Our upstream is deposit users. We are able to provide users with a fixed interest rate financial management method, which increases the certainty of returns and reduces risks
Our downstream is the lending platform. We can introduce more real and fixed-period deposits to the lending platform, so that the lending business will be more firmly supported
For the entire DEFI financial ecosystem, Fixed-Rate Protocol is not only a buffer pool, but also a necessary module for structured asset allocation and a bridge to traditional finance. In traditional finance, products that can achieve a fixed annual rate of 10% and a floating annual rate of 20% are rare. The high volatility of DEFI is an obstacle to the entry of traditional funds, so FIX hopes to use smart contracts and platform currency governance mechanisms to provide a simpler and friendly investment method for the entry of traditional gold funds.
Safety is always the first principle of us. The security audit of Fixed-Rate Protocol is completed by Certik. You can download about 30 pages of the audit report at the bottom of the official website. At the same time, the team has also conducted cross-security audits, and repeated deliberation on the code and business logic.
we regard the value of a product depends on what commercial efficiency it uses to solve many commercial problems. DEFI is a more open and future-oriented form of the digital world. But DEFI also has its own shortcomings. How to let more users apply at a lower threshold and how to have a better user experience is the direction of the practitioners’ efforts and Fixed-Rate Protocol will continue to work in this direction
In addition, let’s make an announcement. Today, we are also cooperating with the Filda lending platform. We will launch a higher APY USDT wealth management product. Let’s see what can we achieve in future days.
Q2:In the past few years, DeFi has rapidly grown into a huge economy with a total market value of 92.4 billion U.S. dollars, covering fields such as exchanges, lending, synthetic assets, tool structures, derivatives and many other categories. So what are the reasons and opportunities for you to choose your own track? How do you look at the future development of your subdivision track?
Choosing the track of fixed yielding,which I also participated in similar projects on ETH. I believe it is the value to help Defi to breakthrough its limitations, with a more stable and reliable image.
At the same time, after the ecology is more complete and enriched, a fixed interest rate can also provide more stable funds and stable returns for the upstream and downstream of the ecology. This is a project with long-term value, and I believe that the lending sector in the ecology will become stronger and stronger. Dex first, lending second.
Q3：What is the core significance of DeFi project? Is it the transcendence of technology itself or a new way for investors to profit? Or is it a new tool for digital asset holders to “decentralize” their wealth holding? In your opinion, can DeFi enter the mainstream financial industry’s vision, and what are the changes to the traditional financial industry?
Compared with Cefi, Defi has the same business essence, but Defi is a more transparent and efficient business form. Just like the postman and the Internet, they are transmitting information, but the efficiency is very different.
However, Defi is still in its early stage of development. Many experimental products and infrastructure need to be improved and perfected.
With the mainstream financial industry’s interest in blockchain, Defi will affect the thinking style of practitioners and will gradually play a role that suits them in Cefi. Changes in the way of thinking, like fire, require time to spread and change. Defi’s thinking must be a shining point in history, from primitive tribes, to talented kingship, to feudal autonomy, to democracy and science, all of which are constantly strengthening centralization. And Defi’s thinking is a return to the individual.
Q4: Which kind of measure does FIXED taked to guarantee the saftey of savings and protocol？
Defi’s operational difficulty has been greatly reduced compared to Cefi, but the fault tolerance space when errors occur is relatively small. You can see that once you make a mistake, the loss will be big and fast
To avoid risks, Ibelieve there are three mainly aspects:
· One is to have contract security audits and read them carefully to ensure that the principal is safe
· The second is to see whether the business of the product is reasonable and whether there is economic support
· The third is to see whether the team is professional and whether it has a dark history. However, many teams are anonymous, and this is also difficult. Therefore, it is relatively safe to look at the source of the project in many cases, such as those officially included.
FIX itself also invited Certik to conduct an audit. At the same time, the business model is healthy, with interest sharing and platform currency income as the platform’s operational support. In general, we still need to carefully identify, and don’t be too confused by short-term gains. Hope that the ecology will become more and more healthy