ChargeDeFi AMA Transcript

"Algorithmic Stablecoin ecosystem with rebase mechanics"

By
BSCNews
on
December 8, 2021
Category:
AMA

Stephanie (BSC.News)

Hello everyone and welcome to the AMA with ChargeDefi! Today we have @DenanCharge joining us to talk about their exciting new project. Great to have you here :)

Denan Charge DeFi

Thanks Stephanie!

Just to get this out of the way: I'm not a financial expert, this is not financial advice, do your own research and only invest what you can afford!

(the usual disclaimer)

Stephanie (BSC.News)

So how this will work is, the AMA will consist of two rounds. The first round will be us going through the questions that I had prepared for you beforehand. And then the second round will be a community round where I will open up the room to allow questions to come in. The second round is also where we will select the two winners of our giveaway

Are you ready? 😃

Denan Charge DeFi

Yes, thank you :)

(almost feels like a sparring match)

Stephanie (BSC.News)

Haha. Great, so to kick things off


1. Please introduce yourself and the team behind ChargeDefi.


Denan Charge DeFi

Of course.. Thank you :)

I've been in crypto for quite some time now but only entered DeFi projects with the launch of BSC. Algorithmic Stablecoin projects soon caught my eye, allowing a way to generate daily passive income. A bit like what Tomb Finance is doing atm on Fantom.  After investing in several projects I ended up joining the team of one of the earlier Algorithmic Stablecoin projects, Bolt Dollar.

That project was transitioning from a failed gaming coin (Bat Dollar) to a serious Algorithmic Stablecoin alternative for Bdollar or Midas.

Initially, I was mostly focused on helping them mod their socials. But as my day time job is being a technical product manager I soon got involved in the professionalization of the team and development process.

There I met the current team members who are now attached to Charge DeFi.

After several months we decided that we would like to take our involvement to the next level and be more in control of our own project. So that's when we decided to start ChargeDeFi. Enabling us to create our own success and be in total control of both the strategy and the release velocity.

Incorporating the lessons we learned during those past months.

(and now I'll copy/paste some team info that will be featured on our team page)

Our team consists off: 

- 2 highly skilled solidity developers with a ton of BSC experience. Both complete projects and audits/consultancy for others.

- 2 front-end developers who have deployed projects that are used by fortune 500 companies

- 1 business developer / CTO who is active in the tech/ai space

- 1 UX designer who has worked for several big brands

- 1 technical product manager (me) with over 20 years of experience in IT/Telecom

- 3 marketeers who are responsible for socials, graphics and contacts.

- A group of mods that manage our discord and telegram.

Stephanie (BSC.News)

Awesome! Thank you for that amazing introduction, sounds like you have an amazing team behind you

Denan Charge DeFi

Yes.. we've really grown as a team since our initial outing into DeFi.

Stephanie (BSC.News)

Great!


2. What is ChargeDefi and what is the goal and vision of your project?


Denan Charge DeFi

Good question!

In essence, ChargeDeFi is an Algorithmic Stablecoin project that consists of 3 tokens:

1) $Static, our 'dollar' token

2) $Charge, our 'share' token

3) $Pulse, our "charge specific" implementation of traditional bond systems

$Static is pegged to $1.0. As long as $Static is > $1.01 the ecosystem expands, minting new tokens. Investors who stake in our boardroom receive part of that expansion.

Our experience in previous algorithmic stablecoin projects has shown us the value of systems like these, creating a form of passive income for investors who stake. And with the resurgance of Algorithmic Stablecoins (For instance tomb) we wanted to incorporate all the lesson's we've learned.

Stephanie (BSC.News)

Okay neat, so to dive even deeper into that


3. What is $CHARGE, $STATIC and $PULSE? What are their utilities?


Denan Charge DeFi

As I mentioned previously $Static is our dollar token and pegged to $1.0 BUSD.

Due to the expansions when it's above peg it will slowly drop towards a price of $1.0 (Something to be aware of when staking into our pools!).

Charge is the share, or "seigniorage" token. Allowing you a share of the expansion rewards. And $Pulse is our  "bond".

We've seen in previous projects, both stablecoins and others, that many DeFi projects suffer from the "prisoner dilemma". As long as all parties who invest take actions that are 'for the good of the project' everyone benefits.

But when investors start prioritizing their own gains, to the detriment of other investors, projects slowly grind to a halt.

There's no way to influence investor behaviour in a secure manner. So a project needs to have guardrails in place. Some Stablecoins opted for taxation of transactions when under peg. Others chose a bond structure... or both.

In the end, many projects failed as the incentive to invest would drop and the price of the algorithmic stablecoin dropped below a certain level.

(there are some excellent papers on this btw) :)

To prevent this we've implemented two measures that will always ensure a return to peg for $Static as well as giving investors a 'bond like' mechanic to create profit opportunities for pushing $Static back to peg.

1) Rebase mechanics below peg

and

2) A bond pool with extra features

Stephanie (BSC.News)

Nice! Thanks for that clarification


4. Can you briefly tell us some features about your platform?


Denan Charge DeFi

Algo stablecoins are a different beast .. compared to yield farms. So it's important that people know what they invest in.

Yes. I'll just give a list. if you want me to expand on a feature just let me know.

(note: for the people dm'ing me now that I should select their question.. lets just pick the best ones)

;)

- Multiple token farming options 

- Rebase mechanisms to protect the peg

- Automated bond pools that yield other assets when static is below peg

- Boardroom allowing users to profit from protocol expansions

- LP zapper, allows LP breakup/creation from our site

- Smart Static Swap, allows swapping $Static for $Charge to prevent price impact.

And a ton of features underway.

We're also working on extra usecases for $Static that will focus on DeFi security and Usability. But it's too early to share at this stage.

It's always tricky sharing stuff that's being worked out by our team. As some things won't see the light of day. And other things suddenly get released because someone has had enough coffee.

One of our Dev's is skilled in app development and has worked on several wallet implementations. So I guess people can guess what some of the proposals look like ;)

Stephanie (BSC.News)

Sounds good!  tons of features to explore :)

Denan Charge DeFi

It helps that we have a solid fundament and a flexible approach in our development cycle.

Stephanie (BSC.News)

And yes, please pick the best questions in the 2nd round of AMA :)


5. Tell us about your rebase mechanism and how can users benefit from this? Can you give us an example?


Denan Charge DeFi

Yes.

But as this is a lot to type out I'll just do a shameless copy/paste from our whitepaper.

Denan Charge DeFi, [12/8/2021 11:21 PM]

That explains a lot in detail and saves me from typing it all out.

Rebase

If $Static drops below $0.8, or if $Static is below its $1.0 peg for more than 6 Epochs (8 hours per epoch) $Static rebases. Lowering the number of tokens in circulation until the value of $Static is at $1.0 again. This impacts all tokens in circulation, also those in liquidity pools.

Example:

· There is 100,000 $Static in circulation worth $1.0 (value =$100,000)

· The price of $Static drops to $0.5 per $Static (value =$50,000)

· The ecosystem rebases back to peg

· There is now 50,000 $Static in circulation worth $1.0 (value = $50,000)

The rebase system in itself prevents the 'death spiral' that plagued many algorithmic stablecoins. As soon as those tokens dove below $0.6 they couldn't be recovered and the system ground to a halt. Something that happened with almost every AlgoStable out there. The rebase functions a bit like a global reset. Incentivizing investment and restaking.

But we've added a second mechanism:

Whenever the price of $Static drops below $1.0 investors can buy $Pulse tokens for $Static. So for instance when $Static is at $0.9 an investor can swap these for $Pulse tokens, hold them until $Static rebases and swap them back. Essentially making a $0.10 profit per token. This is similar to traditional bond tokens. But we've added more to this system.

ChargeDeFi introduces pools that allow a user to stake their $Pulse tokens when $Static is below peg and yield BUSD. As soon as $Static is above peg again and the expansions start these pools autoredeem the staked tokens for $Static. We came up with this solution as we noticed other projects having serious issues with bots playing that redemption process. By automating it we're giving every investor a fair chance.

As every expansion can only redeem a limited amount of bonds (the expansion pays for the redemption) we needed a solution for the botting issues at other projects.

75% of the expansion is reserved for this redemption. 25% is reserved for people with the "fastest finger".

Stephanie (BSC.News)

Very cool! So my next question is


6. What is Charge Boardroom and how can you earn rewards there?


Denan Charge DeFi

The charge boardroom is the place where investors stake their tokens to receive part of the expansion, creating a flow of passive income.

(one of the main things that attracted me to AlgoStable's in the first place)

Normally a "seigniorage" system would only feature one boardroom option to benefit 'shareholders' but we've decided to implement two staking options:

- Stake $Charge - receives 85% of the static expansion each epoch

- Stake $Static-$BUSD - receives 15% of the static expansion each epoch AND a share of the 85.5k $Charge tokens that we reserved.

So the static-busd rewards may seem lower (15 vs 85%) but the Charge minted there balances the APR's.

Also important (and a question we see every minute on our telegram and twitter):

Staked tokens are locked for 6 epochs after every stake, unstake or claim action in the boardroom.

Claiming boardroom rewards cause a lock on the claim option for 3 epochs.

The website shows this in a big red font.. but it never hurts if more people are aware of this.

Our user interface shows the expected number of rewards that users gain. To give an example: at the moment each staked Charge generates 11.31 $Static per charge. And that amount increases with the growth of the number of $Static in circulation.

This number is a bit high now because of the high price of static.

But increasing expansion is an important factor as well.

Stephanie (BSC.News)

Thanks for the explanation. Moving on...


7. Why should users stake $STATIC and $CHARGE?


Denan Charge DeFi

Good question :)

The boardroom staking options allow users to gain a daily income from their stakes and that will continue as long as the majority of the investors uphold a 60/40 rule. (again.. NfA)

For the project to keep growing in size the main bulk of the rewards need to be reinvested into the platform. So as long as people abide by that rule and only sell/swap 25-40% of their $Static tokens the price of $Static will stay above peg and the system expands. Ofcourse they need to reinvest the other half into the liquidity of the ecosystem.

Looking at other seigniorage style projects like tomb finance you can imagine the possibilities of such setups.

Stephanie (BSC.News)

Very cool. For sure need to go check that out!


8. Is your platform audited? How can you ensure users that your platform is safe to use?


Denan Charge DeFi

Yes, we've contracted Certik to do an audit for us.  The initial pre-sale for the project in september was only to pay for the audit and initial marketing. We sold 500 Charge back then for $100 BUSD.

When they first audited our project the contracts hadn't been deployed yet so they need to do a final pass to confirm we deployed timelocks and handed control over to them.

That is underway as we speak.

The preliminary report was also shared with beefy.finance and they checked our contracts  and the timelock as well. As we've opted to deploy 2 vaults on beefy.finance to increase awareness we are obliged to share that information with them.

For beefy security is prior #1 and they also have strong ties with a DeFi security firm that does audits.

They found no issue in our contracts nor in our tokenomics and deployed 2 vaults on beefy. Quickly reaching an APR that some have said is one of the highest across multiple chains atm.

As our own developers work in security/DeFi, as well as in high availability environments, we've built ChargeDeFi from the ground up with automated testing, static code analysis and CI/CD.

So we weren't really worried about the Certik audit.

But it's a trust badge.. and good marketing ;)

Ow.. addon: the final pass at Certik is now underway. We hope they publish it this week !

Stephanie (BSC.News)

Great!  Thanks for the reminder and update!!

Moving onto the very last question....


9. Any exciting news you would like to announce here today?


Denan Charge DeFi

There are a lot of things happening with ChargeDeFi at the moment. After our initial launch, we've increased our focus on marketing and the velocity of our development. It was bad timing that we launched just before the markets crashed (thank you Evergrande) but instead of pausing, we've opted to increase our efforts.

So for beefy we agreed to launch 2 autocompounding pools for static-busd and charge-busd staking as well as featuring a boosted ChargeDeFi pool on their site. That ensures a lot of people see who we are and what we do.

Parallel to this, we're in talks with several marketing agencies and we've quadrupled our userbase and following in the past few days.

On the dev side we're focusing on several extra features that will be deployed in the next couple of weeks:

- Charge reinvestment pools that own part of the liquidity and compound it, increasing APR over time.

- Charge 60/40 vaults, allowing users to stake $Static-$BUSD.  Autocompounding, maximizing reinvestment.

--->  60% of the LP farms the static-BUSD farm 

--->  40% is swapped into charge and farms the charge boardroom.

- Multiple compounding options for existing pools

- UX improvements for the site and UI

and several more items that we will share in the next few weeks.

The focus now is on marketing / expansion. After the rocky weekend in crypto our launch was bootstrapped and is now taking off. But continuous marketing is always important.

(also looking at the time.. I tend to type long answers.. occupational hazard)

Stephanie (BSC.News)

haha no worries! We are pacing well

And it's definitely some exciting stuff! Would you be able to provide us with social media links so that our community could follow?

Denan Charge DeFi

Yes:

Website:

Telegram:

Twitter:

Medium:

Whitepaper:

Stephanie (BSC.News)

Awesome! If you haven't already make sure to go and check out ChargeDefi everyone! Super exciting project that you don't want to miss out on :)


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