IoTeX and FilDA: AMA for FilDA 2.0
Song Sjun, FilDA co-founder, lays out a comprehensive strategic layout of cross-chain DeFi
- It is understood that the entire community is very excited about FilDA 2.0’s launch. Can you give you a brief introduction to FilDA 2.0?
FilDA is a WEB 3.0 asset bank. After 11 months of operation, FilDA has created nearly 20 million USD in interest income for deposit users. It has been a time of gains, a chance to discover shortcomings, how to empower tokens, and how to help users capture more value. This constitutes FilDA’s core values, and it is also a part of our focus to improve in 2.0. Specifically, in 2.0 we aim to make the following improvements.
a. In 2.0, we will first start multi-chain deployment and operation. This is to expand our business opportunities and also help FilDA become a true cross-chain network bank. When the multi-chain operation is completed, we will start FilDA 2.1, which is ready to support cross-chain lending. Users can deposit on one chain, and then borrow/withdraw money on another chain, just like you can withdraw money on any ATM in the “real world”.
b. Using the PCV token model, 25% of the agreement revenue is used to form a token LP to provide long-term liquidity support for FilDA tokens.
c. We are adding a credit lending interface to support unsecured lending. Certain users will be able to borrow without providing collateral. This opens earning strategies not previously available. For example, by using the Alpha Homora leveraged loan agreement built into FilDA 2.0, users can borrow unsecured loans from FilDA and then mine in DEX to obtain higher returns. The funds are still under the control of the FilDA contracts therefore deposits remain safe.
d. We’re adding and adjusting further borrowing parameters, such as the upper limit of borrowing, the allocation of deposit and borrowing token rewards, the security factor of borrowed assets, etc. This allows FilDA to provide lending services for more asset types.
e. Support for a variety of synthetic assets as collateral is being introduced. First, DEX LP tokens are to be supported as collateral. This releases liquidity for LP users. They can borrow more assets by collateralizing LP.
f. From the security level, in the face of endless attacks, we have added time lock and multi-signature management in 2.0. When the protocol becomes more mature, the authority will be handed over to DAO for governance. At the same time, we are also cooperating with audit companies such as Paladin to implement the security monitoring mechanism of the contracts to provide guarantees for the security of FilDA.
2. The “PCV mechanism” and the deflation model that you just mentioned are very interesting to my friends. Can you please introduce them in detail again?
At present, 25% of the platform income is used to form an LP, and the LP token is locked in the contract, and it will be released after one year. These LPs are not involved in any mining, so they will not dilute the income of existing LP users. These LPs will provide FilDA with long-term liquidity support so that the tokens can be traded at any time. It also enhances the holder’s confidence, and there is no need to worry that if the reward is gone, there will be no liquidity and cannot be sold.
3. Reviewing the development of the past 11 months, what do you think FilDA has gained and lost? Has the original intention of FilDA changed?
After launching in early 2021, FilDA made a good start, TVL peaked at 2.1 billion US dollars, and then FilDA tried to move towards a retail bank-like development model, adding more cooperative products to provide users with one-stop services, such as opening up third party “investment” access. In the section, selected high-quality partners were added to provide users with investment targets. But in the end, it was far from reaching the expected goal, because the current maturity and stability of DeFi cannot reach the level of development of traditional banks, and it is difficult for users to adjust their investment at any time to respond to changes. Regrettably we wasted a lot of time in this area.
But on the other hand, it also gives us the opportunity to analyze the data to study user behavior, and thus formulate the 2.0 development direction and plan. Multi-chain and cross-chain and unsecured lending have become our focus, while absorbing the latest DeFi 2.0 elements are also our evolution direction. Following the needs of users and helping users obtain better liquidity is our constant intention.
4. FilDA chose IoTeX for the first cross-chain. Can you share with you what considerations it is based on?
IoTex has a strong technical strength and community. The communication between FilDA and your core team is very pleasant, and I also feel their confidence in creating the IoTex ecosystem. FilDA hopes to help jointly promote the development of the IoTeX ecosystem.
In addition, we noticed that IoTeX proposed the concept of MachineFi, which runs in accord with some of our exploration directions. IoTeX has warmly welcomed FilDA and already provided strong support for FiLDA. For this reason, they will be the first stop of FilDA 2.0. We chose each other!
The Defi Lending Agreement, like traditional banks, increases the income of users and investors by absorbing more valuable assets and granting credit to them, thereby expanding the scale of borrowing. For this reason, we explore DPoS voting lock-up as credit collateral, LP and other synthetic assets as collateral, and even discuss unsecured loans like credit cards with other projects.
In this process, we have discussed the possibility of cooperation with charging station and energy-saving companies. For example, parking lots provide space, FilDA provides operators with loans to purchase charging stations, and operators rent charging stations to electric vehicles. The rent will be used to repay the interest and principal of the loan. If these charging stations can be connected to the blockchain and controlled by smart contracts, including rent payment and other processes completed on the chain, then these assets can become credible assets and can be granted credit lines and loans by FilDA.
5. FilDA deploys IoTeX, is it good for Heco or IoTeX, and why?
I personally think it is good for the following reasons
a. The total amount of FiLDA tokens remains unchanged. Tokens deployed on other chains will be destroyed accordingly on Heco, and the corresponding mining ratio will also be reduced. This is destruction of FilDA on Heco, therefore deflation for that chain.
b. Adding more “branch” operations of FilDA on the chain will help realize the network effect of 1+1>2, so that assets on Heco can have the opportunity to flow across chains and increase the added value of assets for Heco. This is conducive to business upgrades and development.
c. Although the FilDA tokens in the first phase have not been interoperable, this is mainly because we have not found a suitable economic model to enable multi-chain tokens to exchange and interoperate. However, when the multi-chain FilDA is running smoothly, we will look to provide FilDA with more scenarios and empowerment, so that the value of FilDA can be improved. Long-term the outlook is positive.
6. How are the tokens FilDA distributed after cross-chain? How to guarantee its long-term value?
FilDA is the governance token of the FilDA protocol. The development direction of the protocol/value/profit distribution is determined by FilDA voting, and the FilDA token can guide the flow of funds. And while the token creates income for users, it will also form part of the protocol income — FilDA, as mentioned, being used every week to form a DEX LP and lock it in to provide long-term liquidity.
The total number of tokens in IoTex is 10 million, and remains independent of FilDA tokens in other chains.
7. We all know that liquidity is very important to lending agreements. What measures will FilDA take to ensure liquidity after cross-chain?
The demand for capital turnover will always exist in public chain ecosystems, depending on how the loan agreement attracts users to allocate funds to FilDA. The most important thing is to let users rest assured that the FilDA protocol code is safe and open source. It carried billions of dollars at the peak, and has withstood several abnormal market fluctuations such as the Black Swan moment on 5.19.21. Therefore, FilDA is trustworthy and users can deposit and borrow money with confidence. FilDA has invested millions of dollars in security, and 5 security companies have completed 8 audit reports (7 have been released, and 1 is under review).
Furthermore, the agreement itself uses liquidity mining to incentivize funds and guide liquidity. When the utilization rate of funds is high, the returns will be high.
8. How FilDA helps MachineFi machine finance
As in the case mentioned above, we will explore off-chain scenarios with IoTeX, look for landing scenarios in supply chain finance, equipment leasing finance, etc., and provide a larger market scenario for lending based on MachineFi. We hope we can achieve success together.
9. In the future, what measures will FilDA introduce to further increase the application scenarios of FilDA and reduce its market circulation?
We now have some plans and ideas that will be launched after 2.0 settles in. This includes the addition of FilDA’s governance function to DAO governance, allowing FilDA to further decentralize. This is also considered from the perspective of policy security, utilising DAO governance to conduct decentralized operations helps avoid policy risks in a single market.
On the other hand, it will also carry out more attempts around FilDA tokens, including the NFT lending market and GameFi, discussions and negotiations are already in place with potential partners.
On the other hand, with the operation of multiple chains, we will develop cross-chain application scenarios between multiple chains, such as cross-chain lending. These functions will also provide usage scenarios for FilDA.
10. What are the further plans for the layout of FilDA 2.0?
2.0 will be divided into several steps:
a. Deposit and lending business of ordinary assets
b. Deposit and lending business of synthetic assets such as LP
c. Leveraged lending business based on unsecured lending
d. Deploy and run on multiple chains such as Iotex, BSC, Polygon, Arbitrum, etc.
e. Cross-chain lending business (FilDA 2.1)
We will also provide additional airdrop rewards for early participants in FilDA, to thank them for their contributions.