【AEX AMA with 88mph】 Why the fixed interest rate lending Agreement Chooses NFT Elements
👩 Host: Lochaiching, Head of AEX Overseas Marketing
👨 Guest：Joshua, Community Lead of 88mph
👩Guest：Finale, Chinese Community Lead of 88mph
⌚️AMA Time: 2/4 17:00(UTC+8)
Q1: I tried to search 88mph on Google, and there will be different search results, some are bars, some are web companies. Why did you choose this name as the DeFi project name?
Joshua：The original idea in the v0 was to offer upfront interest: https://88mph.app/v0/, kinda future-forward money, explaining the time travel meme and the reference to 88mph. If you’ve seen the film ‘Back To The Future’ it should all make a little more sense.
This feature was discontinued in v2 however.
Q2: In fact, in our community, in addition to the functions of the project itself, we are also interested in the team members behind the project. In Chinese media News, apart from mentioning the brilliant development background of the developer Zefram Lou, our understanding of the background of other members is rather vague. Could you tell us more about it? And does the 88mph project actually promote each other with Betoken?
Joshua：McFly and Zefram have been building stuff together since late 2017, Betoken.fund is one of their projects. If you’d like to check out the other ones you can look here at http://baconlabs.dev/ . The promotion on Betoken is just them taking advantage of a DeFi community that they built! Some more details on McFly can be found here: https://www.linkedin.com/in/guillaumepalayer/
Q3: We can actually see that the entire Defi market is very hot now, and there will be more and more competing products at 88mph. On this track, what are the characteristics of 88mph that can be used as a competitive advantage? Can you explain the function of this protocol?
Joshua：88mph is a fixed-rate yield-generation protocol. There are currently two main ways to interact with the protocol:
The first is fixed-rate APY deposits, which allow users to deposit a variety of crypto assets to earn fixed-rate interest and MPH rewards, the native 88mph’s token. These pools are linked to underlying protocols such as Harvest Finance and AAVE. Currently, the encrypted assets supported by 88mph include DAI, USDC, USDT, yCRV, 3CRV, , UNI, oBTC and other stable coins.
The options for deposit period range from the shortest 7 days to the longest 1 year. In other words, if you deposit 100 DAI in 88mph with a fixed annualized APY of 10%, and the deposit period is 1 year, after 1 year expires, you get 110 DAI. When the user withdraws at maturity, the platform will take 10% of the interest, note that the fee is already deducted from the fixed-rate APY displayed at time of deposit, convert it into DAI and distribute it to the MPH Staking Rewards pool, which can be earned back by staking your MPH tokens.
The second is floating rate bonds, which are equivalent to a layer of insurance representing the debt in the 88mph system, that can be purchased by a floating rate bond buyer. Each fixed-rate deposit is made into a bond. The bond price is the principal of the deposit plus interest. The interest rate of the fixed-rate deposit is 75% of the 30 days EMA of the initial interest of the associated pool (e.g. Harvest’s CRV:oBTC pool) at the time of deposit.
But the underlying protocol’s APY is always fluctuating. If the average interest rate of the Harvest associated pool is more than 75% of the initial interest rate, the bond buyers will earn this additional income. In the extreme case, if the interest rate of the related pool continues to fall, the owner of the bond will accept the debt and lose interest. This kind of gameplay has higher risks and higher returns. If you are more optimistic about the interest rate trend of the associated pool, the profit margin will be greater.
In addition to regular play, the 88mph mechanism is still very flexible. Here is one. For example, 88mph’s fixed interest deposit supports users withdrawing at any time. Except for miner fees and transaction fees, the principal can be withdrawn to the same amount, and the interest remains in the pool. Withdrawing in advance requires return of the MPH issued as rewards. This can be used as a hedge against risk.
If you want to collect MPH, choose a pool with the highest MPH annual return rate. Currently CRV: HUSD (Harvest) pool, 68% MPH APY, put 1000DAI in for a year, and after seven days you will be able to unlock $688 of MPH You can take this MPH to the Staking Rewards pool, trading arbitrage, whatever you want. After earning MPH, if you want to use the money for other investments, you can withdraw it at any time, as long as you make sure that you have the required MPH in your account when you withdraw in advance The amount of MPH that must be returned is 100% for an early withdrawal and between 30% and 90% for a withdrawal at maturity, according to the asset deposited.
There is also a zapper function that will convert your vanilla assets into the required assets for deposit into the pool, making your life much more simple (e.g oBTC to CRV:oBTC)
Q4: I saw that the Chinese community was mentioned in the 88mph update. We also know that your team has a Chinese community Manager. Why does the team value the Chinese market so much? Where are the team members mainly distributed?
Joshua：The Chinese market is slowly becoming the largest and most active market in all aspects of global trade. This is no different in cryptocurrency. Previously, many projects have felt the desire to bridge into the Chinese cryptocurrency market but have found the process somewhat tricky. Aside from language barriers, Chinese investors seldom operate on the common social platforms that overseas projects do such as Twitter, Discord and Telegram. It was essential for us to build a dedicated team in China that can help us to further the project all across the world.
The Chinese market brings not only new investors, but new ideas and a new stimulus to create 88mph in such a way that can benefit all users. For example we have decided to translate all of our documentation into Chinese in order to bring users attention, we are currently working on the internationalisation of the front-page software too.
Team members? We have some people on the team from all over China, but the two community leads in China, myself and Finale, we are currently located in Chongqing.
Q5: Note that on your product page, almost half of the pools are related to CRV. Why did 88mph team choose this?
Joshua：CRV is currently a real leader in the space of yield providing meta-pooling protocols, and as such, is providing many users with the highest rates of returns on their crypto assets out of most of the biggest and most trusted projects. CRV has a wide range of options to pool assets on their platform, and thus have attracted a large amount of TVL. This TVL is then contained in CRV:xxx tokens, which can be put to further use, such as on the 88mph platform.
Other protocols are also utilising CRV in this same manner. Where the deposits go, 88mph will follow and build a strategy that can utilise these newly found pools. Today it is CRV, tomorrow it could be a different protocol. The beauty of 88mph is that we can build wherever the money is flowing to, providing long-lasting and flexible yield earning opportunities.
Q6: The latest news shows that 88mph has ended its fifth round of liquidity mining plan. Will there be a sixth and seventh round of the plan? Will subsequent mining add any different functions?
Joshua：Currently, the sixth round is ongoing for another two weeks. The liquidity mining event for round six has the same details as the fifth, the same amount of MPH released over the same length of time. However, these MPH tokens are not freshly minted tokens, they are released from the governance treasury, which is built from the portion of MPH rewards that must be returned upon redemption of the fixed-rate bonds (currently 30% of the MPH rewards received). This means that the total supply is not increasing alongside the liquidity mining event, yet people are still being rewarded.
Q7: The contract vulnerabilities before 88mph and the subsequent handling have brought the team a good reputation. At the beginning of the project, did you ever think about the possibility of being attacked? We also know that it is impossible to be so lucky every time to avoid losses. In terms of technology, in addition to security considerations, what kind of tests are you currently facing and what goals do you have?
Joshua：Of course protocol security is of the utmost importance for a DeFi platform. With the expectation of holding such large sums of deposits, it is essential that the protocol can be considered foolproof. Alongside the audits carried out by renown companies such as Decenter and Quantstamp, independent audits were carried out by community darlings at DefiYield.info and also the recent announcement of an incentivised critical bug bounty, to the tune of $42,000, helped by the platform Immune.fi.
Q8: NFT elements are added to the project. Why do you have so much confidence in NFT? Will related businesses be launched in the future?
Joshua：Initially, we decided to build with NFTs for technical reasons, though a hybrid approach where we have the NFT and a ERC20 wrapped around it. It makes more sense in terms of liquidity and composability
eg. our upcoming ERC20 zero-coupon bond.
We still see NFTs as a important block of 88mph to allow cool use cases like interest bearing NFT, cf series done with ManWithNoName in December “Cyber88 series”
We will continue exploring the different ways of merging art, nft, and fixed income for sure.
Q9: In the coming year, what goals does 88mph want to achieve in terms of team building, project development, community governance, algorithm research, market size, etc.?
Joshua：We currently have two main focuses: the development of a new product ERC20 zero coupon bond, and make sure we continue our efforts to derisk the protocol with new insurance and structured products. We will also start a new round of security audits. There are currently two audit reports from Peckshield and Quantstamp for the current release.
Now we are actively negotiating with several teams to help them use 88mph as the underlying protocol to better benefit their own users. While improving the security of the entire framework, we will cooperate with other projects as much as possible to build structured products and gain more outreach. This is our best strategy to expand our market share in 2021.
In the current DeFi market, lending is still one of the main driving forces of innovation. The development direction of 88mph products is “risk-free” DeFi products. We believe that this area has considerable potential worth exploring.
In terms of adaptation, we will not adapt to the market, we have to reshape the market. The core of the project is to stabilize the rate of return on capital and provide reliable channels for users with stable income needs. As far as the current market is concerned, there is considerable potential :). Using our fixed-rate products as the underlying structure, other projects can route their funds through our pool, generating stable and safe income.
Finale: In the current DeFi market, lending is still one of the main driving forces of innovation. The development direction of 88mph products is “risk-free” DeFi products. We believe that this area has considerable potential worth exploring.
As for adaptation, we will not adapt to the market, we have to reshape the market. The core of our project is a stable return on capital, providing a reliable channel for users with stable income needs :). At the same time, using our fixed interest rate products as the underlying structure, other agreements can put their funds into our pool and generate stable and safe income. As far as the current market is concerned, there is considerable potential.
More information about 88mph:
website — https://88mph.app/
88mph Chinese wiki — https://88mph.app/docs-chinese/
weibo — https://weibo.com/u/7550683535
Telegram(EN) — https://t.me/join_88mphapp
Telegram(CN) — https://t.me/join88mphchinese
Free Questions from AMA:
Q1: How will the NFT of the 88mph project develop?
Finale: NFT is our current deposit and bond certificate, NFT is still used for many purposes
For example, if you have already deposited a large sum of money into 88mph, but suddenly use cash, but you don’t want to withdraw early to terminate the income, you can use your deposited NFT as collateral to make a loan on a third-party lending platform (such as RocketNFT). You can repay the loan when the deposit is full
Joshua: As we mentioned above, the NFTs are going to be used for the ERC-20 Zero coupon bonds as a deposit signifier.
These can be traded as usual, as they are now wrapped in an ERC-20 token. Also there will be the creation of some interest-bearing NFTs from our resident artist ManWithNoName. This can be utilised on the MPH platform to earn interest on crypto assets!
Q2: Will there be more in-depth cooperation with aex after 88mph?
FInale: Of course, we attach great importance to the Chinese market. The project is still in its early stages, and we can conduct in-depth cooperation in the future.
Q3: As far as I know, the current token of 88mph is MPH. Can you tell us how to obtain and use the token?
Finale: MPH is a token of 88mph, and the contract address is 0x8888801aF4d980682e47f1A9036e589479e835C5.
To provide you with some current data, the data is as of 2/4/2021:
Total TVL of the agreement: $24, 905, 683
MPH price: $161 /MPH
MPH total supply: 314,421 MPH
MPH circulating supply: 195,040 MPH
There are three main ways to obtain.
First, MPH will be issued as a reward for fixed interest deposits. Fixed-interest deposits will issue a certain percentage of MPH according to your deposit options, which will be issued daily after seven days of deposit. Users can freely control this part of MPH after the issuance to the end of the deposit period, lock-up mining, trading arbitrage, or LP. For example, in this pool, deposit 1000 crv:HUSD into it. MPH’s income is very impressive. But at present, we have a rule that users must return a certain percentage of MPH when they redeem the principal at the end of the term. Different pool return ratios different. The returned MPH is put into the community governance warehouse for future maintenance and development. MPH holders will vote to determine the purpose, and different positions have different voices. Many pools return 30%. This part is also supplied cyclically. Our current liquidity mining uses MPH in the community governance vault. The current supply is unlimited.
The second is liquidity mining. It has reached the sixth round (1/28–2/13), with a total amount of 2203MPH (157/day), and the current total amount is $7,822,951.
The third is to buy in the trading market.
In other words, MPH is both a production token and a governance equity token. The former supports users to use MPH to produce revenue as much as possible during its lifetime. If the production revenue continues to grow organically for a period of time, it will also help encourage users to extend the business period, which is a symbiotic model. In other words, if a user deposits for 1 year, for example, if he gets 20 mph, he can use these 20 mph to make repeated arbitrage. As long as the funds are withdrawn at the end of the period, it is sufficient to ensure that there is a 20* return ratio of Mph in the account. The latter uses MPH holdings as a measurement standard to give users governance rights, and jointly determine the use of community governance funds for various community proposals vote.
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