On the 11th of February, 2021, Zain Rana, Founder of Dafi Protocol, was live at the Razor Network Community Telegram AMA Session, to provide the community with insights about Dafi Protocol, upcoming events and developments, and plans for the future.
In order to ensure clarity to my readers, this article has been divided into two segments; the first segment, gives full account of the questions asked by the moderator of this AMA session (Himanshu Bisht), while the second segment, gives account of the questions asked by Matic community members.
SEGMENT 1
Himanshu — We are about to dive into an amazing AMA session with our partner Dafi Protocol with awesome Zain Rana.
Welcome Zain Rana from Dafi to the Razor community. It is a pleasure to invite you here for this AMA session. You guys are doing a great job at Dafi. Please feel free to leave any links and resources that we can find useful to know more about the project.
Zain —
Hey guys.
Himanshu — Could you please tell our community briefly about yourself and Dafi?
Zain —
I’m thrilled to be here, I’m the founder of DAFI Protocol. My background is in technical market analysis, as well as being a major keynote speaker at some of the biggest Blockchain events in the world, I personally introduced Blockchain and DAFI to institutions and universities across England.
DAFI creates network-pegged synthetics for every decentralized economy, to incentivize a network later, when demand in the network rises. This will change the foundation of all staking, nodes, liquidity, and even bounties etc.
Himanshu — Awesome. Thank you for the introduction. Let’s start with our first question. What are the major milestones that Dafi has achieved so far and what are the immediate next steps in your roadmap?
Zain —
DAFI was originally a self-funded research project from 2018, in that time we’ve onboarded some world-class team members, and we’re now working with some of the biggest names/projects in the space to explore creating network-pegged synthetics for their inflation models (e.g. staking).
Soon, we will announce our oversubscribed fundraising round, as well as our platform release in 2 weeks — which is pretty cool, you’ll connect your ERC20 wallet to our interface and you can create synthetics from 4 existing (compatible) tokens.
We’re now aggressively releasing our development and finally coming out of stealth mode, we want to see the whole decentralized world adopting DAFI to create network-pegged synthetics rather than just simply issuing large amounts of tokens for liquidity, nodes, bounties etc. DAFI TGE will be in 4 weeks too (how could I forget about that!).
Himanshu — That’s amazing to know this. I read University of York hosted the DaFi Protocol recently. Pretty cool.
Zain —
Yeah Ethereum & Polkadot founder (Gavin) was an alumni there, so we were honoured that they also hosted DAFI Protocol last week.
Himanshu — Amazing. Following up on the same, What are the advantages of Dafi’s approach when we compare it to other competitors in the space?
Zain —
Everything since Satoshi is designed the same for it’s inflation — releasing large volumes of tokens to incentivize the network. The killer issue here, is that the low demand paired with the high & excess supply, creates hyperinflation — it basically favours sellers & short term users, not hodlers.
Actually this is where most token economies die, so the big question is how can we create decentralized economies that can reward the network, without issuing out large volumes of tokens?
DAFI is exciting, because it will allow every decentralized economy to create network-pegged synthetics, issued for their staking, nodes, liquidity etc, and favour their long-term users by rewarding later — when network demand is greater. dTokens (or DFY) are network-pegged flavours of existing tokens. Any project can lock their tokens to mint a DFY and issue them out in a reduced quantity.
So to put it short — DAFI does 3 things.
- Rewards a network, without unsustainable token quantities.
- Incentivizes during low demand (eg. less adoption, bearish markets) while promoting token scarcity.
- Creates stable chains and stable finance.
Himanshu — There is something big cooking indeed. Thank you for sharing this. let’s talk about the recent partnership with Razor. Can you tell our community about the synergies between Dafi and Razor Network? Especially how both projects will be working together in the future.
Zain —
Razor is cool because it uses the value of the network to maintain the network. In other words, you have an economic incentive, which is a pretty awesome approach to decentralized oracles.
With DAFI, the network-pegged synthetics that are created on our protocol, they rely on calculating network value using oracles. DAFI basically wants to create synthetic flavours of every token, for every decentralized economy, this to a huge extent relies on oracles. So we’re pretty happy to explore how Razor can have a role in supplying price & volume feeds into our synthetic units.
Himanshu — Can’t wait to get the things off the ground. Razor has seen a rapid grown in recent months and we have a lot of exciting stuff coming up in 2021. It is exciting for us to help Dafi as our partner in fulfilling this vision.
Here is the last question of this round. v1.0 DAFI protocol MVP is now functional and ready to use by the public. Would you like to share more about it? Feel free to share any resource that our community can explore later on.
Zain —
Yes. So we created an MVP in 2020 but it is pretty basic. What is more exciting is the platform release we have coming in 2 weeks, we recommend you check DAFI Announcement and become one of the first to test this, and actually mint your own network-pegged synthetics of other tokens/networks. We’ve been pretty quiet until this month, so you’ll be hearing a lot more about DAFI in the coming weeks.
Himanshu — This is some phenomenal stuff here. I am excited to see further development of the project and how both the projects will be working together. Kudos to the Dafi team for achieving so much in such a short time. It can not be possible without the dedication and hard work of the team. To conclude this phase, Anything additional you would like to share with our community? Feel free to share details regarding any upcoming events that our community can be a part of.
Zain —
I appreciate this, we created DAFI to be something pretty unique, there’s nothing really out there like it. It’s kind of Staking 2.0. Or Network Inflation 2.0. It’s been a long journey for sure, but it is a really exciting innovation to come out of this industry
I think you guys should all follow our Medium page. We are going to post some pretty awesome stuff there too
Himanshu — Anything you would like to share about the TGE at this moment.
Zain —
I keep forgetting about the DAFI TGE lol. Absolutely, DAFI will have a TGE in 4 weeks, we anticipate a high demand, so joining the socials including Twitter and waiting for the announcement is pretty important.
Time will fly by, especially when you see some of the awesome stuff we have coming out from DAFI in terms of development & partners/projects onboarding and creating synthetics on our protocol. DAFI Protocol Twitter
Himanshu — Wonderful. We will be opening now for the community questions in a minute. Please make sure to read the rule once again.
SEGMENT 2
Community Question 1 —Hi Zain. Okay so my question is that, Why is inflation bad & How does Dafi protects from inflation?
Zain —
Inflation is actually good, but today these 200% reward rates are just pump and dumps usually. We actually need inflation, I recommend taking a look at this article, where we broke the topic down. Staking, Consensus, Nodes, Liquidity mining — all are examples of network inflation
All DAFI does, is allow projects to issue a network-pegged synthetic in a reduced quantity, and reward the users later — when network demand is greater.
Community Question 2—Can you please talk a bit about why you feel Dafi Protocol needs blockchain, the importance of the token in Dafi Protocol platform, and what is coming that might increase the use and need to stake or use the token?
Zain —
DAFI is implemented as a TX Fee for protocols creating network-pegged synthetics on our protocol — this requires a chain-compatible, decentralized network.
Community Question 3—
As you said, with DAFI we’ll connect our ERC20 wallet to DAFI’s interface and we can create synthetics from 4 existing (compatible) tokens. Can you elaborate more about it? what the meaning with “synthetics from 4 existing (compatible) tokens”?
Zain — Yes, initially we chose 4 compatible tokens that users can hold and create a network-pegged synthetic from.
For example, one of them is of course ETH. If you hold ETH, you can create dETH on DAFI’s platform — which is a network-pegged synthetic, algorithmically pegged to Ethereum’s network demand.
Community Question 4— What was the rationale for not doing an ICO in Dafi Protocol , and how has this impacted community building?
Zain —
We were self-funded actually, as DAFI was researching different models and theories in Blockchain, testing and trialing in mostly-stealth mode. Even the token sale, will be a low cap, but check DAFI Announcement for this.
Community Question 5— What kinds of industries are you trying to penetrate, what kinds of companies and partnerships are you aiming for?
Zain —
Every decentralized economy. We want DAFI’s synthetics to be adopted by Layer-1 protocols, DApps, Cryptocurrencies, Platforms etc.
If a project has a token, and wants to create a smarter inflation model which rewards early-users later — only when network demand rises, it protects their token economy and allows them to incentivize even during low-demand phases. Switch to DAFI.
Himanshu — Great questions, everyone. thank you so much. Before we conclude, I think there are many in the community who would love to become a part of the Dafi community. What’s the best way to stay in touch with the latest updates?
Zain —
Thanks. Sure, well we have a pretty close community right now, it’s kind of a family at DAFI Protocol. Positivity and enlightening discussions are welcome — we’re in truly pivotal times. Also our Twitter should explode after this AMA.
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