Meeting Notes of TiFi AMA on August 27, 2022
San Francisco, August 27, 2022. The TiFi Team
“This is the second TiFi AMA in August, we welcome everyone to join. We really appreciate everyone here, especially for everyone who supports TiFi. In the fluctuation market, we are always on your side. We delivered the staking feature this week and there are around 25 Trillion of TIFI staked within 2 days. We will continue to deliver good products and continuously marketing activities to make TIFI fly.”
TiFi Strategy: Product Focus & Keep Growing
As TiFi stated before, TiFi is a startup focused on Blockchain and Web3 technologies. Delivering innovative products is one of the goals of TiFi. The new strategy means we will move more resources to product development and promotion, grow our team and make more partnerships to support TiFi’s business. This will bring sustainable growth of TiFi and bring long term growth of the value of TiFi and TiFi Token.
In September, TiFi will deliver a lottery game of TiFi Bank. This is an important feature that brings play-to-earn to TiFi Bank, it will make TiFi Bank a complete DEX with a set of full features. TiFi will also release the TiFi Documentation Portal in September, which provides the detailed manual and information regarding TiFi products.
In 2022Q4, TiFi will release the alpha version of TiFi Allverse, which offers a shopping platform with cryptos. And TiFi will also release the lending and borrowing feature of TiFi Bank in Q4.
Monthly Buyback and Burn Updates
TiFi will burn 100 Billion of TIFI on every 1st day of each month. The burnt tokens are bought back by the TiFi Team. Actually, all tokens burnt by TiFi are bought back by the budget of TiFi. The outcome of burning less will save more budget for TiFi for Product Development and expand the liquidity pool. Meanwhile, TiFi will continue doing market and business development with the budget.
The change of buyback and burning amount also support the new strategy of Product Focus and Keep Growing. As a fast-growing startup, the fund preserved will greatly support the business, and support the long-term growth of TiFi Token.
TiFi Shows Its records of Buybacks
All the tokens that are manually burnt by TiFi are bought back from public DEXes after TiFi Token release. The TiFi Team has spent 256.48 BNB for TIFI buyback with its own budget for about 12.97 Trillion of TIFI. Where 12.5 Trillion of TIFI are manually burnt by the project team. No other crypto project has done the buyback with such an amount to deliver its trust to investors.
For the public record of Buybacks from TiFi Team, please check https://tinyurl.com/tifi-buybacks.
Samuel Zhou, the CEO of TiFi also gives a demo for the new TiFi Bank features released on Aug 25. And answered all the questions from the community. Please continue reading for the Q&As in the AMA meeting.
Q1: How does TiFi Bank calculate Staking Rewards?
The staking rewards are coming from 2 sources, the reflection reward and 20% of transaction fees on the blockchain network. There are 2 parts for the rewards: TIFI and WBNB. Here is the formula to calculate TIFI APY:
F is the total fee collected in the TIFI ecosystem per cycle (1 cycle = 1 days).
S is the total amount of Staked TIFI.
C is the Circulating amount of TIFI.
E is the amount of TIFI that is excluded from reflection rewards (e.g. DEXes).
D is the number of compound cycles (365 days).
Rb is the rate of fees that goes to TiFI Bank, here it is 0.2 (20%).
Rr is the rate of fees for reflection rewards, here is 0.6 (60%).
For example, suppose F=1, S=20, E=10, C=90 (Unit is in Trillion TIFI), then the APY is around 561%.
Generally speaking, if staked TIFI is less, the S will go smaller, and TIFI that can be traded outside the staking pool will be more, so the F is intended to be bigger. So the APY value will go up for this case. Otherwise, if staked TIFI is more and tradable TIFI is less, the APY value will go down.
The WBNB reward is calculated based on the number of stake and unstake transactions that happened on TiFi Bank. Once a stake transaction happens, half of the transaction fee will be used to pay for the staking reward, and another half will be used for the future staking reward, both TIFI rewards and WBNB rewards are accumulating.
The difference is TIFI rewards are accumulated based on the transactions happened on the whole blockchain network. While the WBNB rewards are accumulated based on the number of stake and unstake transactions. Once unstake happens in 180 days, the WBNB rewards the user earned so far will go back to the Reward pool to reward other users who stake.
Q2: What are the differences between TiFi Bank stake and stake on other platforms?
The staking platforms work differently. For most of DEX, they pay stake reward with the amount of tokens that has been preserved, or mint the token as reward is generated. So they can gain a fixed APY.
The APY for TiFi Bank staking is not fixed, it depends on the trading volume, transaction fees collected, the amount of staked tokens, also the number of stake and unstake transactions for WBNB rewards. So the rate is dynamic.
The great thing about the TiFi Bank Staking feature is it doesn’t increase the supply of the token because all the rewards are coming from the transaction fees. So you don’t need to worry about the value of TIFI being diluted and the value of the earnings is also guaranteed.
Q3: Are the tokens staked in TiFi Bank safe?
Your tokens are safe once TIFI is staked, nobody can withdraw the TIFI or WBNB from it except the user who stake the token. When staking TIFI, TiFi Bank doesn’t issue new tokens, so no other lock mechanism is required.
Q4: Where can we see the TVL of TiFi Bank?
We call TVL the liquidity in TiFi Bank, you can see in the Portfolio page, because it is easier to be understood by people who are new to crypto.
For staking pool’s value locked, you can check the BSCScan link of TiFi Bank Staking pool: https://bscscan.com/address/0x0aeff3d761f6706295f3828c87cce29c9418a93b
Q5: What are the real-life use cases of TiFi’s utility? Any examples?
There are several utilities for TiFi. TiFi Allverse is born for real-life use cases. Allverse NFT is an example. An Allverse NFT represents the real-world product value, and it does not fluctuate as traditional NFT, and you can redeem it, so it will have a great investment value.
Q6: What are your comments on the current price of TiFi Token? And when will the price trend revert?
The price up-and-down is very normal for a token. As a startup, we are fast-growing in our business. TiFi is a long-term business and there is lots of potential. We will have great products delivered and vastly accepted by many customers, it may come before or after that, so I don’t worry when the trend will revert if I am long term investor.
Q7: Do you have any plan to create TiFi’s own blockchain?
Currently we don’t have the plan, but this is a very good suggestion, we will consider that in 2023Q2.
Q8: Does TiFi have an anti-whale system?
Everyone trades on blockchain are anonymous, people don’t know how many wallets a “whale” has, or which wallet belongs to which person. As far as I know, there is no effective anti-whale system if it is for a true decentralized system. So the “anti-whale” system is not on our plan, so it can simplify the design of the smart contracts.
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