- The First CYCAN AMA RECAP in the Cycan Network Community
Just now·11 min read
On 21st April 2021, 9:00 PM (UTC+8), the first bilingual(English&Chinese) AMA event started in the Cycan community.
The event lasted for 3 hours, during the event, Mr. Gao answered 20 questions selected from the Cycan community. The topics include backgrounds, application scenarios, essential value, and competitive advantages of Cycan Network.
The whole speech was filled with crucial information and innovative ideas.
Mr. Gao expounded his views on the current DeFi market and also he made his own prediction on the prospect of DeFi. He stated that Cycan and its canary network ELP focus on building a decentralized cross-chain asset management platform aiming to provide financial tools for everyone who wants to get into the DeFi world.
Cycan Network focuses on building investment portfolios of DeFi digital assets, while ELP pays attention to the investment of NFT-type digital assets.
These two combined networks are a combination of macro-finance and artistic individuality.
In comparison with other decentralized asset management platforms, Cycan Network not only is totally free of charging protocol fees but provides 5–7 different liquidity mining mechanisms for different characters in different application scenarios, which easily certifies Cycan network as the king of liquidity mining.
Mr. Gao also unveiled the secret weapon of Cycan network, ELC. ELC is the fifth generation of stablecoin. Other than its merit of anti-inflation feature, ELC would be the first stablecoin in human history that has three functions together: payment, measurement, and value storage. This could very much be the stablecoin that defines this generation.
The following is the recap of this AMA activity.
Q1: Why here comes Cycan&ELP?
After more than a year of development, the DeFi market has developed into an industry with tens of billions in market cap. The hundreds of DeFi tools let the market bloom. However, for ordinary investors, it is difficult to get started and even more difficult to use these tools effectively.
Therefore, decentralized asset management platforms with user-friendly interfaces are about to emerge.
Cycan and ELP are decentralized asset management platforms on which anyone can start their decentralized funds.
In the future, DeFi, Stablecoin, and NFT will be the three major directions in the blockchain field. The effective asset allocation determines each person’s role in the trend of wealth redistribution in the next ten years, whether to take the opportunity to soar, or be slowly abandoned by the times?
Q2: What is the difference between Cycan and ELP?
Cycan Network is the asset management platform focusing on the DeFi market.
ELP Network is the asset management platform focusing on the NFTs market.
Cycan’s style is more formal, focusing on Macro&Large-scale of finance management, While the ELP has its unique style, focusing on artistic individuality.
Q3: What competitors does Cycan have?
Currently, there are not many platforms that really focus on decentralized cross-chain digital asset management, I think Dhedge and Cook are two of them.
Dhedge is on the SNX network and Cook Protocol who recently has completed its IDO.
Dhedge is mainly serving quantitative fund managers, who mainly invest in assets on SNX, and his openness is slightly poor.
Cook, as a fund management protocol, the design is obviously too simple. It mainly relies on charging protocol fees. And its highest valuation has surpassed 1.8 billion US dollars in market cap.
Compared with the Dhedge, Cycan has no platform restrictions, and it takes the most efficient allocation of digital assets for the users.
Compared with the Cook Protocol, Cycan not only exempts from protocol fees but also uses the decentralized fund liquidity mining mechanism to give rewards to participants, more innovative and diversified.
Q4: Please tell us where’s the core value of Cycan Network from, without charging protocol fees?
The Cycan ecosystem will revolve around a core goal, which is to expand the application scenarios of decentralized stablecoin — ELC. The ELC is minted by Cycan and ELP as reserves. About US$100 million of ELC stock will bring about US$300 million in network fundamental value. Considering the irrational market, it may be worth more than 1 billion.
In the Cycan ecosystem, all liquid mining involving ELC participation will be given higher returns.
Q5: What is the decentralized stablecoin ELC?
ELC is the fifth-generation stablecoin. Its goal is to have the 10% in the market cap of the stablecoin market we have predicted in the future. The current stablecoin market size is 50 billion USD and will surely exceed 1 trillion USD in the future. If ELC gets 10% of the market, The value of the Cycan network ecosystem will reach about 500 billion.
ELC is the stablecoin in human history for the first time that has three functions together: payment, measurement, and value storage. Bitcoin and gold only have the functions of payment and storage, while fiat currency(USD, GBD…) only has the functions of payment and measurement.
ELC is an anti-inflation algorithmic stablecoin, which will continue to appreciate to hedge against the inflation of the U.S. dollar (2–3% per year, or the adjusted factor according to community governance). It is very attractive to investors in negative interest rate regions such as Europe. It will have greater appeal when the market in its bear run.
The design of ELC is quite a perfect and attractive design.
Let’s compare the ELC with the famous decentralized stablecoin DAI.
First, investors can pledge ETH to mint DAI, it’s without any rewards while using CYN/ELP to put in ELC reserves, which can obtain mining rewards continuously and ELC additional issuance rewards on an irregular basis.
Second, investors can use ETH as the collateral to mint DAI where the interests need to be charged by the ETH network while minting ELC, there is no need to pay any interests.
Third, ETH that generates DAI has liquidation risks (when ETH falls sharply due to extreme market situations), and using CYN and ELP to generate ELC has no risk of liquidation.
Let’s compared with other famous stablecoins
The 1st generation of stablecoin, USDT, etc., centralized
The 2nd generation stablecoin, DAI, etc., is decentralized but difficult to truly compete with USDT.
The 3rd generation stablecoin, AMPL, etc., cannot even be called “stablecoin” you know…
The 4th generation stablecoin, BASIS FEI, etc., tend to quickly fall into a cycle of death.
The 5th generation of stablecoin, ELC, combined with both the merits and demerits of the 2nd and 4th generation stablecoins and originally introduced an anti-inflation algorithmic stablecoin. It may be an epoch-making product. It can be said to be Yu’e Bao built on the blockchain. (Yu’e Bao 余额宝, it’s a wealth management fund in China on Alipay, famous for its low risk&return)
Q6: Could you provide more information about the Cycan team?
Cycan is a highly international project.
Legally, Cycan’s foundation is located in Singapore
Speaking of team members, the highest proportion is British,
It can be said that Cycan is a European project，
Specific team member information will be gradually disclosed, pls just stay tuned!
Q7: The core competitiveness of Cycan/ELP in the market?
1. The king of liquidity mining, there will be five or six different liquidity mining mechanisms. CYN/ELP itself is a mining machine, especially ELP, and you can get CYN airdrops for 20 consecutive months starting in June.
2. There is no protocol usage fee.
3. The greatest decentralized stablecoin.
4. We will achieve inter-calling of smart contracts on EVM and WASM, to greatly reduce the migration cost of DeFi contracts from BSC/ETH network to Polkadot&Cycan ecosystems.
5. In the future, the cycan ecosystem will realize cross-chain asset management and link major public chains. Cycan will be a cross-chain decentralized asset management protocol.
Q8: What is liquidity mining?
Liquidity mining is the process of airdropping tokens based on investors’ contributions to the DeFi contract. It is a token distribution method and a token-incentive mechanism. It is necessary to achieve asset aggregation and cultivate user asset management habits using all kinds of DeFi tools.
In general, projects will have one or two liquidity mining mechanisms, while there are 6 or 7 types of Liquidity Mining on Cycan Network. So It is the king of liquidity mining.
Q9: How many liquidity mining mechanisms does the Cycan/ELP ecosystem have?
1. DEX LP token liquidity mining
For example, DOT-ELP liquidity mining officially started on April 17th. we encourage investors to add liquidity to the DOT-ELP liquidity pool. The current size of the liquidity pool is 11 million U.S. dollars, making it one of the top 100 in the world, which is a miracle for a project that is rarely publicized.
2. Decentralized stablecoin (ELC) reserve liquidity mining
We are going to encourage investors to participate in ELC minting, and get CYN airdrop rewards, and additionally issued ELC airdrops(In ELC additional issuance cycle) by providing LP tokens of the ELC reserve liquidity pool.
3. Decentralized fund liquidity mining
Decentralized fund investors, managers, and strategy providers share CYN/ELP airdrops.
4. ELP holders will also receive an additional 20 months of CYN airdrop. Holding ELP is the best way to get CYN early.
5. other liquidity mining initiated by the community.
Q10: What are the benefits of liquidity mining?
1. Encouraging LPs to add liquidity to the liquidity pool,
So far, the APY of DOT-ELP LP token liquidity mining exceeds 300%, which is still very attractive to LPs.
2. Locking up a lot of tokens. It can be said that after July, It will be pretty hard to get one single ELP. Please HODL your ELP, LOL.
3. Distributing the tokens in the community fairly.
Q11：How to stake LP token to start DEX liquidity mining?
Let’s take ELP-DOT DEX Liquidity Mining as an example,
2.Exchange half of DOT for ELP on DEX (Pancake).
3.Add Dot and ELP to the liquidity pool to provide liquidity and obtain LP tokens
4.Stake LP Token into the contract and start the liquidity mining.
Q12: What trading pairs will be available for liquidity mining on Cycan Network in the future?
Among them, USDT/ELC has the lowest risk, and the future liquidity pool may reach hundreds of millions of dollars.
Q13: Will we fear “mining and selling” through liquidity mining?
Our answer is WE DON’T.
1.Liquidity mining itself locks in a lot of liquidity, and a small amount of output is tolerable and completely normal in the market.
2. Cycan/ELP has multiple liquidity mining mechanisms that can hedge risks. The tokens mined from mechanism A may be immediately put into mechanism B, we are pretty sure on this point.
Q14: How to start the ELC reserve liquidity mining?
Let’s take ELP as an example
1, Provide ELP to ELC reserve pool to obtain ELC and rELP
2. rELP is used as a mining LP token to get CYN airdrop
3, When the price of ELC rises, additional ELC will be issued and airdropped to rELP holders
Put in one coin and mine two coins, this is how it works.
Q15: How to conduct liquidity mining for decentralized funds?
1.Start a decentralized fund
2.Airdrop CYN to all decentralized funds based on multiple mechanisms.
3.The investors get 50% airdrops, managers 25%, strategy providers 25%(let’s suppose they agree 5–5), managers and strategy providers can be the same person.
Starting your funds is liquidity mining as well.
Q16: The details about holding ELP to get CYN airdrop.
1.As long as you hold ELP, you can get CYN airdrops, regardless of the number of holdings.
2.Using ELP to participate in all kinds of liquidity mining, does not affect the CYN airdrop
3.Starting from June 2021, airdrops will be airdropped for 20 consecutive months, 500,000CYN each month, totaling 10 million. If you continue to hold the ELP, you can actually get more than 1.3 Cycans for each.
4.The exact airdrop time is not a fixed date every month to avoid that some people just rush in, get airdrop and sell it.
Q17: ELP at $10 is really considered high?
Let’s say if a person buys 100 ELPs at a price of $10 and invests $1,000. Besides, he invested 1,000 US dollars in DOT to add liquidity and start mining, and obtained about 300 ELP a year (assuming that the price of 10 US dollars remains unchanged, it is actually impossible).
Putting the obtained ELP into a decentralized stablecoin reserve then, get 1,000 USD worth of ELC and 2,000 USD worth of rELP, and get 1,000 CYN and 300 ELP for one year of dex liquidity mining.
At the same time, get 0.2 CYN per ELP through airdrop, totaling 80 CYN
By the end of the year, he will have
400 ELPs with a market value of 4000 USD
DOT worth 1,000 USD (assuming constant price)
1300 ELC, value not less than 1300U
1080 CYN. Assuming the price of CYN is $5, it is worth $5400
The total value is US$10,700, which means that if the price remains unchanged, a high return will be obtained.
So it can be said that an ELP token under $20 is nearly a free gift for everyone.
Q18: The Roadmap
On April 17th, the DEX liquidity mining was launched;
On May 20th, ELC’s Substrate version public beta will go live;
On June 20th, the public beta version of ELC’s Solidity will go online;
On July 1st, the decentralized stablecoin contract deployment will be finished;
In August, the decentralized asset management platform will go live.
Q19: How to manage the shares of the team and the early investors?
The shares of early investors, teams, and advisors will be put into a special decentralized fund for unified management,
1.The special fund only can be used for the minting of stablecoins and provides the initial large amount of reserves for ELC.
2. The special fund has a lock-up period of five years, the tokens cannot be redeemed during the time. Previously, it was only possible to obtain dividends by the fund shares or sell shares through DEX.
3. On the one hand, the team and advisors can obtain fund shares instead of locking them for a long time, and obtain dividends by the fund shares, so the team will be stable and the team members will be motivated. On the other hand, within five years, the number of circulating tokens will be strictly controlled. Five years later, early investors, teams, and advisors have become accustomed to the operation of decentralized funds, and the release of tokens will still be slow and orderly.
Q20: The token economy of Cycan and ELP.
The above is the entire content of the Recaps.
The Cycan(CYN) is a decentralized cross-chain asset management platform to provide users with convenient asset management tools and diverse investment strategies to achieve the value growth of their digital asset portfolios. Cycan will be focusing on the DeFi market.
The Everlasting Parachain(ELP), as the canary network of the Cycan Network, is a decentralized cross-chain asset management platform with the same features as Cycan but focusing on the NFT market.
The Everlasting Cash(ELC) is an anti-inflation algorithmic stablecoin on the Cycan network.
ELP BSC Contract Address: 0xe3894cb9e92ca78524fb6a30ff072fa5e533c162
W3F Grant of ELC: https://github.com/w3f/Open-Grants-Program/blob/9015e4c7fab9dc32a9a8f9c1f63eb0ffcb961380/applications/EverlastingCash.md
- Date of publication:
- Fri, 04/23/2021 - 06:00
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