Rabbit Finance AMA Transcript

Rabbit Finance address claims of embezzlement and bring clarity to the protocols revenue system.

By
BSCNews
on
July 26, 2021
Category:
AMA

Andrew (BSC.News):

Hi everyone and welcome to the highly anticipated AMA with Rabbit Finance

Thanks once again for joining us today Steven

STEVEN:

Hello everyone! good morning, good afternoon and good evening!

This is your friend Steven from Rabbit Finance

Andrew (BSC.News):

So this AMA will work a bit differently

STEVEN:

Thank you Andrew for having me here

yep

Andrew (BSC.News):

The AMA will only consist of the questions that I have curated for Steven and after that, Steven will stick around for a little to answer some questions from the community

Sound good with you Steven?

STEVEN:

perfect

Andrew (BSC.News):

Great


1. To start things off, I see that you were audited by Certik and Chains Guard. Upon completion of the audit, were there any security concerns/risk that you were made aware of? If there were, how did you address these?


STEVEN:

Since the launch of the project, all the contracts of Rabbbit Finance which are related to users' assets have been added to the Timelock contract. Only some contract permissions that were not related to user assets, such as operating strategies and new farming pools launch related, were not added. Now we have all the contracts added to Timelock, which enhanced the stability of the protocol and the security of user assets.

 For more information, please check our Timelock contract,  

 In the project planning stage, Rabbit Finance determined to cooperate with the top security partners, and the existing contract has been audited and approved by CertiK and ChainsGuard. CertiK is a respectable top audit institution in the security field and an important partner in many outstanding projects in the BSC community. ChainsGuard has participated in the audit of multiple leveraged mining agreements and has deep accumulation in related fields.

 Since the launch of the project, Rabbit Finance has been operating stably , and we are also deepening and continuously optimizing our security strategy. I would like to share some of our ongoing work on the safety of construction.

1 Opening position price verification

During the opening process, Rabbit Finance will record and verify the exchange ratio of the two assets in the LP of the DEX multiple times. If the difference between the actual price and recorded price is greater than 1%, it will fail to open the position in order to protect the safety of users' assets.

At the same time, an off-chain oracle price verification, when the 30-minute price difference is greater than 10%, it indicates that the short-term market fluctuates sharply or the oracle price is manipulated, which will also result in a fail to open position to protect the safety of users' assets.

2 The Unique "Gemini Clearing System"

A common liquidation strategy for similar products is to record the price on the oracle contract, and determine the liquidation price through the price of the oracle contract.

 We have seen too many cases where the price feed error caused by the manipulation of oracles has led to the damage of user assets.

Rabbit Finance believes that this liquidation strategy is not safe enough, so we designed a Gemini liquidation system to solve the problems of price and liquidation.

 Through multiple rounds of CEX+DEX price verification, the accuracy and safety of liquidation are ensured. Read the DEX price and CEX price every 1 minute, and list the positions to be liquidated with the price error within 5% in the "verified liquidation pool", and only the positions on the "verified liquidation pool" list will be liquidated after both verifications . In the link of price verification with CEX, a double verification strategy is also adopted. The prices of the two CEXs, Huobi and Binance, are verified separately to completely avoid the loss of user assets caused by untimely or inaccurate price verification.

 3. At present, Rabbit Finance has reached a security cooperation with PeckShield, a leading audit agency in the industry, and it is expected that the official audit report will be released as soon as this week.

Andrew (BSC.News):

Okay thank you, that addresses many of the accusations thrown forward however there are some that have been unanswered that I think the community would like to know


2. Can you tell me more about your fees, according to the Anon Dev, these fees are high and were supposed to be used for buybacks and burns. Did this occur?


STEVEN:

yes

The main components of current protocol income include: deposit reserves, reinvestment reserves, and liquidation reserves.

The main purposes include the buyback and burn of RABBIT, the provision of liquidity for CARROT, and third-party expenditures such as marketing and security audits.

Regarding this point, the team has already made a detailed explanation in the announcement provided to the community, and everyone is welcome to check and understand our announcement.

Here is the link to the announcement

With our excellent Tokenomics and better product experience, Rabbit Finance provides users with higher real income and APR, and lower borrowing costs and lower interest rate fluctuations, which make the farmer's holding risk lower and the return higher, which will greatly reduce the long-term holding risk of leveraged farmers.

1In the case of providing leveraged farmers with a lower borrowing interest rate, Rabbit Finance charges a higher yield rate. After comprehensive income and costs, leveraged farmers have actually obtained higher real income and APR, and the interests of leveraged farmers have been better protected.

Community members have also seen that Rabbit Finance has been very reliable in guarding user's assets, and it has brought more substantial farming revenue to deposit users and leveraged users than other products.

Andrew (BSC.News):

Okay thank you, for sure need to check out the medium post

And we will circle back to the burns and buybacks soon but to address a specific accusation...

STEVEN:

yep

Andrew (BSC.News):


3. With the burn that occurred over 40 days ago, why is this not a normal and scheduled occurrence compared to other projects that have a consistent burn?


STEVEN:

The cost of an excellent leveraged farming product in terms of marketing, product development, and security audits is very high.

We have already stated in Documents how to use all protocol proceeds when we went online

in addition to buyback and burn, the reinvestment reserve will provide CARROT liquidity, and will also be used for third-party expenditures.

At this stage of the project, third-party expenditures have accounted for the main part of the reinvestment reserve.

In the next stage, we will use the reinvestment reserve to promote the price of RABBIT and CARROT and increase the transparency of the use of this part of the funds. It will be announced to the community together with the buyback data at the end of each month.

For now, we have a total burnt amount of  380,097.82 RABBIT

Burn Address

In order to avoid arbitrage during the buyback, the buyback and burn cannot be scheduled  with a fixed schedule.

We set each cycle of burn to be an irregular buyback within one month, and regularly announce the burning plan at the end of the month.and the amount of buyback will be announced within the community by then

Andrew (BSC.News):

So just to be clear, burns and buybacks are not a regular occurance?

STEVEN:

will happen every month

but not in fixed time

Andrew (BSC.News):

What about the burn for the month of June? Was that the one burn that did occur?

STEVEN:

the updated plan of buyback and burn just published days ago, so it will start occur from next month.

Andrew (BSC.News):

Got it


4. What about the rest of the fees that Rabbit Finance has incurred? Where have those funds gone?


STEVEN:

ok

i would like to introduce the plan for the usage, of the protocol income from the launch till now

1, Deposit reserve: 20% of the deposit interest income will be used as deposit reserve, and half of the reserve will be used for buyback and burn of RABBIT.

2 Reinvestment reserve: This reserve will be used for buyback and burn of RABBIT, provide liquidity for CARROT, and third-party cooperation expenditures.

3 Liquidation reserve: For the liquidation of high-risk positions, 5% of the liquidation reward will be given to the robot as the liquidation reserve, and all the proceeds from the reserve will be used for buyback and burn of RABBIT.

And, based on recent community discussions and suggestions, the protocol revenue usage plan will be updated

Deposit reserve: 20% of the deposit interest income will be used as deposit reserve, and 100% of the reserve will be used for buyback and burn of RABBIT.

Reinvestment reserve: The reserve will be used for the buyback and burn of RABBIT, the Garden farming pool incentives, liquidity for CARROT and expenses for third-party cooperation.

And here is an Instructions for using reinvestment proceeds for the Garden farming pool rewards

For example, use CAKE equivalent to 100,000 BUSD as a new pool in the garden, support single token staking farming pool of veRABBIT or veCARROT, and reward the reinvestment proceeds to boardroom members to promote CARROT The use of RABBIT and the tight liquidity of RABBIT.

Liquidation reserve: For the liquidation of high-risk positions, 5% of the liquidation reward will be given to the robot as the liquidation reserve. 4% of the reserve will be used for buyback and burn of RABBIT, and the remaining 1% will be used as High Provision for underwater liquidation in the event of fluctuations in the market.

The profits are created by Rabbit's elaborate Tokenomics design. Although the rabbit's reinvestment income rate reaches 30%, the income of leveraged farming pools still far exceeds that of other leveraged products, and the income of deposit users is also higher than that of other lending products.

Andrew (BSC.News):

Okay thank you for that clarification

Is there anyway for users to be able to check these reserves themselves?

STEVEN:

my pleasure

Andrew (BSC.News):

For example, a wallet you may use to hold these reserves?

STEVEN:

the on chian datas are out there for everyone to check

that is advantage of blockchain

Andrew (BSC.News):

Okay great


5. Anon Dev has raised allegations that Rabbits that were supposed to be burned, were instead single-staked in ibRabbit. Is this true? If it is, why did this happen?


STEVEN:

As mentioned above, not all tokens bought back by RABBIT are burnt,  there are also costs of cooperation with other projects included, such as the previous cooperation with MDEX.

Anything that is conducive to the increase of the value of RABBIT and which can help to build a better ecological of Rabbit Finance, we have the right to use this part of the token, as long as the direction of use is conducive to the increase of value and the development of the project, and make sure there is no large number of tokens being dumped to the market.

If some community members believe that these RABBITs must be used for burn, we have launched the DAO governance plan solicitation plan, and the decision will be made through voting after the governance plan is officially launched.

Andrew (BSC.News):

But wouldn't staking tokens to farm more tokens, to burn, be counterintuitive?

STEVEN:

the community will decide

Andrew (BSC.News):

Through the DAO

Got it


6. Are any of the tokens in question pending for a burn?


STEVEN:

As i mentioned

In order to avoid arbitrage during the buyback, the buyback and burn cannot happen with a fixed schedule. We set each cycle of burn to be an irregular buyback within one month, and regularly announce the burning plan at the end of the month. The amount of buyback will be announced in the community at the end of each month.

According to the latest DAO governance plan, we have already begun preparations for the second round of burn. Please pay attention to the follow-up announcement.

Andrew (BSC.News):

So there are tokens pending for a burn?

STEVEN:

sure, we are planning the next burn

Andrew (BSC.News):

Okay

and last but not least


7. Is there anything you want to say to your community?


STEVEN:

1st i want to appreciate for the support from our volunteers and community, without your support we are nothing. but you guys already know that, so i would like to use this chance toto share the future plans for the next 5 months of Rabbit Finance.

in 2021 Q3

The Boardroom will be fully upgraded: Carrot swap to veCarrot and Rabbit locked swap to veRabbit.

We will upgrade the stake farming contract of the Garden, stake veCARROT to farm in the Garden pool with time weight.

we will launch the new leveraged trading function: allows users to borrow from the bank at a very low interest to long or short a token with a 3–5x leverage.

we will launch the new NFT synthesis function: Users can use Carrot blind box to open NFT to obtain NFT synthesis, stake, transaction, and game farming.

we will launch the plan of cross-chain deployment: The initially selected cross-chain deployments are ETH and Matic.

we will complete Audit by a third audit agency, PeckShield as i mentioned

We will be listed on at least 2 CEX

We will publish a SDK: Improve the composability of other protocols, funds, and institutions to integrate our products

And we will integrate with more DEX

we will add multi-signature to the upgradable proxy contract

if you feel there is too many content ,just remember these 2

Margin trading function

And NFT Feature

And here is our plan for 2021 Q4 

1. launch Rabbit LAB feature, support the teams that develop applications around Rabbit finance, and continue to increase the application scenarios of Rabbit, CARROT, veCARROT, such as options, innovative exchanges, auction platforms, etc. are the focus of our funding.

2. Enhance the borrowing capacity of the agreement; allow external parties to borrow from our deposit vault.

3. More pools from partner DEX.

4. A mysterious product will be launched, it will be a surprise.

5. Fourth security audit from a well known audit institution.

6, At least two more CEX listing

If there is too many content, remember these

Q4 Da Bombs

Launch of Rabbit Lab

The mysterious product will be unveiled

STEVEN:

Thank you Andrew and Appreciate for the opportunity

thanks to BSC.news, best media on BSC

Andrew (BSC.News):

Opening the room now

Have a great day everyone ❤️


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