PIDAO AMA Transcript

"A decentralized reserve currency protocol based on the PID token and aims at building a community-owned decentralized financial infrastructure for crypto world"

By
BSCNews
on
November 10, 2021
Category:
AMA

Andrew (BSC.News)

Hello everyone and welcome to the AMA with PIDAO ! Today we have Mando joining us to talk about their new project

Great to have you here @mandocando

Mando Cando

Hello, my name is Mando, and I'd like to thank you for giving me the opportunity to introduce our project. PIDAO!

Andrew (BSC.News)

Of course!

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 before hand. 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. Sound good?

Mando Cando

yep!

Andrew (BSC.News)

Okay great

So to start things off


1. Please introduce yourself and the team behind PIDAO.


Mando Cando

sure

The team is made up of people from all walks of life who are required for this project. We currently have a few developers and are onboarding two new ones.

We also have a designer who works to make our graphics as sleek as possible and to provide graphics for the marketing team's marketing activities.

I'm a member of the marketing team, and we coordinate collaboration, update medium and twitter. We also have a group of community managers who manage our communities on Telegram and, later, Discord.

Andrew (BSC.News)

Awesome! Thanks for that introduction


2. What is your overall mission/goal of the project?


Mando Cando

Dollar-pegged stablecoins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether.

Users are comfortable with transacting using stablecoins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is a fallacy.

The dollar is controlled by the US government and the Federal Reserve. This means a depreciation of the dollar also means a depreciation of these stablecoins.

PIDAO intends to address this by establishing a free-floating reserve currency, PID, backed by a basket of assets. PIDAO hopes that by focusing on supply growth rather than price appreciation, PID will be able to function as a currency that can maintain purchasing power in the face of market volatility.

Andrew (BSC.News)

Oh I see so PIDAO will be backed by well balanced assets that can act as a hedge against market volatility


3. What is PIDAO?


Mando Cando

PIDAO is a decentralized reserve currency protocol that uses the $PID token as its foundation. Each $PID token is backed by a basket of assets (for example, DAI) in the PIDAO treasury, giving it an intrinsic value that cannot be depreciated. PIDAO also introduces novel economic and game-theoretic dynamics into the market via staking and bonding, thereby providing the community with a truly decentralized reserve currency protocol.

Simultaneously, PIDAO is a DeFi 2.0 project based on POL (Protocol Owned Liquidity) and PVC (Protocol Controlled Value) to ensure price stability and security of holders, as well as a fairly stable system environment.

PIDAO is a decentralized reserve currency protocol that uses the $PID token as its foundation. Each $PID token is backed by a basket of assets (for example, DAI) in the PIDAO treasury, giving it an intrinsic value that cannot be depreciated. PIDAO also introduces novel economic and game-theoretic dynamics into the market via staking and bonding, thereby providing the community with a truly decentralized reserve currency protocol.

Simultaneously, PIDAO is a DeFi 2.0 project based on POL (Protocol Owned Liquidity) and PVC (Protocol Controlled Value) to ensure price stability and security of holders, as well as a fairly stable system environment.

Andrew (BSC.News)

Okay very cool

Glad that you brought up the $PID token because that is my next question!


4. What is $PID? Can you get into the tokenomics behind the token?


Mando Cando

To begin with, PID is not a stable coin. PID, on the other hand, aspires to be an algorithmic reserve currency backed by other decentralized assets. PID, like the gold standard, provides free floating value to its users that they can always rely on, owing to the fractional treasury reserves from which PID derives its intrinsic value.

ach PID is backed by one BUSD but is not tied to it. Because the treasury backs every PID with at least one BUSD, the protocol would buy back and burn PID when it trades for less than one  BUSD. This has the effect of increasing the PID price back to 1 BUSD.

Because there is no upper limit imposed by the protocol, PID could always trade above 1  BUSD. Consider pegged == 1, whereas backed >= 1.

The PID floor price or intrinsic value is 1 BUSD, according to some. We believe that the actual price will always be 1 BUSD + premium, but the market will ultimately decide.

PIDAO's protocol managed treasury, protocol owned liquidity (POL), bond mechanism, and staking rewards are all designed to control supply expansion.

Bond sales generate profit for the protocol, which is then used by the treasury to mint PID and distribute them to stakers. The protocol is able to accumulate its own liquidity through the use of liquidity bonds.

Andrew (BSC.News)

Oh I see now, I was a bit confused by the backing of digital assets keeping  the price above 1 BUSD but that makes total sense! And very neat the PID will be burned to help maintain this stability


5. How could users participate in PIDAO?


Mando Cando

For market participants, there are two main strategies: staking and bonding, which refer to staking PID and purchasing PID bonds, respectively.

A. PIDAO's primary value accrual strategy is staking, which allows stakers to stake their PID in exchange for more PID tokens.

Stakers stake their PID on the PIDAO website in order to receive rebase rewards. The rebase rewards are derived from bond sales proceeds and can vary depending on the number of PID staked in the protocol and the reward rate set by monetary policy.

Staking is a long-term, passive strategy. The increase in your PID stake translates into a constantly falling cost basis that eventually converges on zero. This means that even if the market price of PID falls below your initial purchase price, if you stake for a long enough period of time, the increase in your staked PID balance should eventually outpace the price fall.

B. Bonding is the secondary value accrual strategy of PIDAO allowing bonders to purchase discounted PID token under certain rules.

Bonders provide LP or DAI tokens in exchange for discounted PID tokens after a fixed vesting period. It allows PIDAO to acquire its own liquidity and other reserve assets by selling PID at a discount in exchange for these assets.

Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.

Andrew (BSC.News)

Okay, and while you did touch on it here


6. What are the benefits of PIDAO?


Mando Cando

A. PIDAO is deployed on the Binance Smart Chain to lower gas fee cost with smooth experience, thereby greatly reducing transaction cost and fees and enabling more ordinary participants to get in.  Moreover, the massive user base on BSC also facilitates more flows and stronger consensus.

2. PIDAO upgrades a lot based on the Olympus protocol, enhancing more stability of the protocol through PCV (Protocol Controlled Value) to upgrade the inflation algorithm.

3. PIDAO will initiate with ITO to ensure more decentralization for the distribution of PID token in a fairer way.

Andrew (BSC.News)

So you just mentioned PCV


7. What is PCV? Why is PCV important?


Mando Cando

PCV means Protocol Controlled Value, is the amount of funds the treasury owns and controls.As the protocol controls the funds in its treasury, PID can only be minted or burned by the protocol.

On the one hand, PCV ensures that participants invest funds into the protocol contract instead of the project team, which avoids potential risks. On the other hand, PCV guarantees that the protocol can always back 1 PID with 1 BUSD. You can easily define the risk of your investment because you can be confident that the protocol will indefinitely buy PID below 1 BUSD with the treasury assets until no one is left to sell.

As the protocol accumulates more PCV, more runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer term because more funds are available in the treasury.

Andrew (BSC.News)

Oh very neat


8. What is POL(Protocol owned liquidity) ? and Why is POL important?


Mando Cando

Bonding allows PIDAO to accumulate its own liquidity. We call our own liquidity POL(Protocol Owned Liquidity), is the amount of LP the treasury owns and controls.

POL is completely different from the early yield farming model. The long-term benefits of liquidity providers align with the protocol in the liquidity holding. The short-term incentive model of renting liquidity will cause over-explore, even shorten the life cycle of the project.

The POL mechanism changes the benefit-based relationship between the protocol and the liquidity providers, ultimately reconstructing the liquidity service model.

1. More sufficient funds and massive community

The bonding mechanism enables liquidity accumulation of PID with POL, which will further facilitate the market operation and the continuous expansion of the ecosystem and community to gain more support.

2. Benefit PID holders

The POL mechanism ensures long-term locked liquidity, avoiding sudden occurrence of a rugpull. Moreover, sufficient liquidity guarantees the market that the liquidity is always there to facilitate sell or buy transactions, cutting down costs such as slippage and protecting the asset security of PID holders.

3. Earn more income

PIDAO owns most of its liquidity. In addition to ensure certainty for PID holders and other participants, it earns most of the LP fees, which can provide an incentive source and help to build better finance.

Andrew (BSC.News)

So to circle back, you've spoken a lot about staking and bonding

So my next question is


9. Can you tell us more about staking and Bonding?


Mando Cando

sure

Swaps between PID and sPID are always honored 1:1 during staking and unstaking. However, the amount of sPID will vary depending on protocol variables.

Rebases will be performed on a regular basis based on key indicators, with the sPID balance increasing automatically after each rebase. When you unstake, your sPID will be burned and you will receive the same amount of PID.

For example:

Aurora bought 100 PID at 1 USD and staked to get 100 sPID. After 100 days staking along with rebases during this period, the amount of sPID accumulated to 600 sPID. If Aurora unstaked when the price of PID hiked to 100 USD, she would send the 600 sPIDs burnt and obtain 600 PID.

The yield for Aurora would be:

600 PID * 100 USD-1 USD * 100 PID = 59900 USD.

We can see in the above case that the staker can get both inflation rewards and gains from price increase.

Please note that unstaking means losing the opportunity to obtain rebase rewards. Only if stakers continue to hold sPID can they receive sPID rewards for the subsequent rebases.

About Bonding,

PIDAO's secondary value accrual strategy is bonding. It enables PIDAO to acquire its own liquidity and other reserve assets, such as LUSD, by selling PID at a loss in exchange for these assets.

The protocol quotes the bonder on terms such as the bond price, the number of PID tokens the bonder is entitled to, and the vesting term. The bonder can claim some of the rewards (PID tokens) as they vest, and the full amount will be claimable at the end of the vesting term.

Bonding is an active, short-term strategy. Bond discounts are more or less unpredictable as a result of the secondary bond market's price discovery mechanism. As a result, bonding is considered a more active investment strategy that must be constantly monitored in order to be more profitable than staking.

PIDAO can accumulate its own liquidity through bonding. We refer to our own liquidity as POL. More POL ensures that our trading pools always have locked exit liquidity to facilitate market operations and protect token holders. Since PIDAO has become its own market, in addition to providing additional certainty for PID investors, the protocol has accrued an increasing amount of revenue from LP rewards, bolstering our treasury.

Andrew (BSC.News)

Awesome! Thanks for that explanation!


10. Could you introduce us ecosystem of PIDAO


Mando Cando

sure

a, 3-3 π Staking reward pool

3-3 π is the staking reward pool in the PIDAO ecosystem, similar to the Syrup Pool of PancakeSwap. By staking your sPID with PIDAO, you will receive token rewards from the partners.

b, High composability and scalability

Stakers are able to transfer the staking credential sPID, which will be widely used in lending and borrowing and other application scenarios to continuously enrich the PIDAO ecosystem in the future.

c, PINFT

PINFT is an important part of the PIDAO ecosystem. Holders can obtain PINFT Collections by staking sPID. In the near future, PINFT will be widely used in PIDAO's protocol governance and community activities, becoming a status symbol of PINFT holders in the PIDAO ecosystem.

d,Range Exchange

Range is a stablecoin exchange function for the PIDAO Finance decentralized reserve assets protocol. Range is based on a swap pool providing the exchange of multiple stablecoin assets at 1:1 ratio. It’s designed to achieve stable exchange rates and lower trading wear to reduce gas fees and increase the efficiency of capital utilization with more accurate risk assessment.

e,PIDAO Pro

PIDAO Pro has opened the liquidity solution to third parties for reference with LaaS(Liquidity as a Service) to promote more revenue and continuous liquidity enabling.

Andrew (BSC.News)

Great!

So last but not least


11. So what would the Governance of PIDAO be like?


Mando Cando

yes

1, Values

PIDAO is building a global, community-owned and decentralized economy so we can introduce stability and transparency back into financial markets and create financial inclusion for all.

PIDAO exists to support projects that bring value to the PID economy. The DAO is driven by the following values:

1,Community-run

2,Results-oriented

3,Sustainable

4,Inclusive

B, DAO

While we believe decentralized structures are best suited for achieving this vision, we realize that some structure is needed to align on common goals, evaluate projects, create accountability and ensure successful execution.

If our values align with yours, reach out to us on our Telegram group, we look forward to your contribution.

Andrew (BSC.News)

Great! Could you provide us with links to your social media accounts?

Mando Cando

sure

Get involved right now

Follow us on Twitter

Join the community with Telegram

and Medium

Andrew (BSC.News)

Thanks! Make sure to go and check out PIDAO everyone!


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