DeFi × VAVA: AMA with CRYPTO MILLIONAIRES
On July 9th, 2021, Owen, the core volunteer of VAVA, shared an AMA with in theTG of the CRYPTO MILLIONAIRES Community, attracting more than 4,000 people online at the same time to participate.
Owen answered some questions of the community members in detail and communicated cordially with friends in the community.
Host: Hi, guys, welcome to the CRYPTO MILLIONAIRES community. Today we are very glad to invite Owen, the core volunteer of an innovative lending protocol, VAVA.
Welcome Owen!
Owen: Hey, guys. I am Owen, the core volunteer of VAVA. I am glad to meet you all.
Host: Let’s welcome Owen again.
Next, Owen will tell us what the VAVA protocol does?
Owen: Alright, thx. VAVA is an innovative and comprehensive lending protocol that integrates the functions of flash loans, stable interest rate loans, LP loan, credit delegation and cross-chain bridge to make the flow of assets more convenient and efficient. In addition,VAVA will start listing Polygon soon.
Host：Owen just mentioned that VAVA will launch Polygon soon. Could you tell us the reason why did VAVA choose Polygon for the first launch??
Owen: First of all, Polygon (Matic) is currently one of the most popular Ethereum expansion projects in the world. At present, technical solutions such as sidechain and Plasma have been aggregated, and well-known protocols such as Curve, 1inch, SushiSwap have been attracted to list. Its ecology has more than 100 Dapps and TVL exceeded $10 billion.
While Polygon’s data has hit record highs repeatedly, it surpassed Ethereum in the second quarter of 2021. The number of daily active address exceeded 70,000, an increase of about 13,000% year-on-year and an increase of 845% over the previous quarter.
In such an environment, VAVA, which is committed to making asset circulation more efficient, conforms to the trend and will start listing Polygon soon. It will greatly increase transaction speed, reduce gas fees, and enhance transaction experience while ensuring security.
On the other hand, VAVA with many innovative functions, will also bring greater vitality to Polygon, stimulate the development of Polygon’s ecology, enrich product forms, and further enhance its TVL and market influence.
Host: And why do you think that the lending protocol application of DeFi is worthy of everyone’s attention?
Owen: Actually，the DeFi lending protocol worth everyone to pay attention, understand, and participation. After human society created financial tools, the economy soars.
Before there are no financial tools, most of the liquidity came from the new users. With DeFi’s lending protocol, a large number of encrypted assets show up again! DeFi financial tools represented by VAVA will promote the liquidity of core assets or make holders happier and holding mainstream assets for a long time! Lending provides liquidity but farming locks liquidity.
The combination of supply and demand will give birth to more and more interesting innovative applications, and there will be unlimited imagination in the future.
Host: Owen just mentioned that VAVA integrates innovative functions such as flash loan and credit delegation. Could you give us more details about these new concepts?
Owen: Yep，Two innovations of VAVA, flash loan and credit delegation. It added on the basis of existing loans have greatly reduced the threshold for DeFi participation, improved asset liquidity and increased TVL. Flash loans can generally be used for self-liquidation, liquidation to help others, arbitrage, collateral replacement and so on.
As an innovative financial tool, in essence, the use of flash loans to achieve “ To get something from nothing” is to take advantage of the loopholes in the protocol itself. By using VAVA’s flash loan, users can easily borrow without any deposit, as long as the liquidity is returned to the liquidity pool within one transaction block.
If this does not happen, the entire transaction will be cancelled to ensure the storage security. Credit delegation of VAVA means that users with credit qualifications can sell their credit limit to earn income. Early credit loans mostly came from acquaintances.
In order to ensure the rights and interests of deposit, VAVA applied the OpenLaw legal protocol smart contract, which is suitable for the encrypted world and also applies to the real world.
While generating credit loans, legal evidence on the chain is generated. It is not achieved by previous credit loan platforms.
Host: We knew that the VAVA protocol is a new product among DeFi loan derivatives. What are its advantages compared with the classic lending products like AAVE, Compound and Cream?
Owen: Indeed, as a new force in the loan field, not only have its stronger technical strength, but also have innovative advantages in function. Let me list a few points to illustrate:
1. Risk management: VAVA builds a multi-layer nested and complex risk management framework based on Layer2. The validator cannot destroy the state and steal funds; even if the validator stops working, the user can retrieve the funds at any time with the help of data availability. It is not necessary to monitor the Layer 2 network at all times to prevent fraud.
2. Borrowing and lending shared pool: It is the place where funds are deposited. Participants are mainly divided into two categories: borrowers and lenders.
Borrowing means depositing, like the VAVA lending pool provides liquidity, and obtains an annualized rate of return of about 2%-55%. The lender needs to carry out over-collateralization (collateral mortgage rate of 60%-80%), and lend HUSD, USDT, HBTC, HT, ETH and other Cryptocurrencies from the loan pool through deposit.
3. Flash loan: Compared with other project applications, VAVA flash Loan can initiate batch flash Loan. For example, you deposited ETH in VAVA, loaned out the tokens, and now you want to change ETH into BTC, you must recycle or return the loaned tokens before you can withdraw the deposit ETH, converted into BTC, staking and borrowed.
Flash loan can solve the repayment problem and complete it directly in one block: repay the loan, take out the deposit, convert ETH to BTC, deposit BTC, lend the funds, and return to the flash loan platform.
This series of actions, and batch flash loans, will be able to lend multiple tokens at the same time in the same flash loan transaction; this means that flash loan borrowers can obtain almost all the liquidity of the protocol. There is more space for arbitrage.
In addition, there are also innovative functions such as credit delegation, ZK-Rollup, cross-chain bridge, and flexible interest rate. I will not discuss in detail here owing to the time limit. Welcome to our Telegram and Twitter to learn more.
Twitter：https://twitter.com/VavaFinanceMedium：https://vavafinance.medium.com/Telegram：https://t.me/vavafinance
Host: Alright thanks for answering here’s the next question. It is well known that flash loan is one of the original innovations of DeFi, and its application prospect in the future is very broad.
Why it has become the most frequently attacked technology by hackers in the security events in the field of DeFi? Is it the problem of the flash loan itself or something?
Owen: Guys you know caz the flash loan attack does not need a large amount of capital or funds, and the hackers do not have to bear the risk of losing large amounts of funds after the failure of the attack, it leads to many users maliciously using flash loans to borrow, exchange, deposit and re-borrow a large number of Token, to artificially manipulate the Token price in DEX.
It is the current common flash loan attack. But it should be made clear that a series of arbitrage by users using flash loan is allowed in terms of the transaction itself.
In fact, there is no right or wrong technology. Flash loan is just a blockchain technology that provides investors with an opportunity to arbitrage between different DeFi derivatives. In fact, there is no right or wrong technology.
Flash loan is just a blockchain technology that provides investors with an opportunity to arbitrage between different DeFi protocols. If it is wrong then it is because of the person using the tool wrong. Flash loan itself has no loopholes but it can help the product find loopholes.
Host: For users, they are often plagued by high GAS fees and insufficient transaction speed. Does VAVA have any plans dealing with?
Owen: VAVA is studying and applying some Layer 2 solutions. VAVA always regards smooth transaction experience and lower transaction fees as the first requirement of user experience.
If the gas fee is too high, especially for users with small amount of funds, it is very distressing. The layer2 expansion solution can achieve fast transaction speed and low cost. Therefore, VAVA has considerable advantages in terms of speed and cost.
Host: Finally, our community is more concerned about the question, how’s the progress on the VAVA protocol?
Owen: It is the problem that our community members are very concerned about. Soon, we will see a new creative lending protocol VAVA. At present, the development of the VAVA protocol has basically been completed. The contract is in the audit stage, and the audit report will be synchronized to community users as soon as the results come out.
In terms of the community, we are concentrated on communities, like Twitter and Telegram. More and more partners pay attention to VAVA. We have also reached a cooperative relationship with many KOLs.
Thank-you for answering and that’s for the Introductory segment. So, let’s move forward on to our next segment twitter questions.
Q1. Where can I buy your tokens right now what is your current contract and how can I buy them? Will you have any other DeFi feature like staking, NFT in the future? Because it is a great platform for long term holders to invest in your token.
As I mentioned right now, our contract audit results have not yet come out. And we will first launch of Polygon soon. The token has not been issued yet, keep paying attention to our latest news.
More token details shown in FIG. Farming is 85%, so don’t worry about staking.
Q2. Here’s the next question. The missing key element in Lending and Finance is lack of Good Governance System. I want to know how VAVA will introduce users into the ecosystem and implement community governance? How will the voting play a major role in the making process?
Users deposit VAVA to the DAO to participate in the governance of VAVA and to co-decide matters related to the VAVA Protocol. Part of the income from the VAVA Protocol will also be used to buy-back VAVA tokens, which dividends will be distributed to the members of the DAO weekly according to the proportion and time of the staking.
Q3. I would say one of the best feature of the project is the flash loan.But this is one of the most frequenlty attacked technology by hackers in the defi system. Should the users be worried about this?Can you share your thoughts on this?
Actually I mentioned it just now, Flash loan is just a blockchain technology that provides investors with an opportunity to arbitrage between different DeFi protocols.If it is wrong then it is because of the person who using it wrong. Flash loan itself has no loopholes but it can help the product find loopholes.
Q4. One of the big problems currently facing the DeFi industry is high GAS fees and high transaction processing congestion, how does VAVA deal with them and what impact does it have on end users?
This is the reason why we chose to launch the polygon first.
Recently, the concept of Layer2 is very hot. Many solutions such as ZK-Rollup, Optimistic Rollup, Plasma, State Channels and Sidechains go hand in hand. These Layer2 protocols continue to attract head DeFi projects, the most eye-catching of which is the Polygon of Layer2 multi-chain scalable solutions aggregator. Polygon currently combines Sidechains, Plasma and other technological solutions, which ecologic has attracted more than 100 Dapps, and TVL was once exceeded $10 billion.
Such achievements are inseparable from the many advantages of Polygon，Scalability，High throughput，A smooth experience，Security，Polygon side chain is a public unlicensed chain and can support multiple protocols. Based on Polygon, the security of VAVA can be greatly improved. VAVA is studying and applying some Layer 2 solutions.
VAVA always regards smooth transaction experience and lower transaction fees as the first requirement of user experience. If the gas fee is too high, especially for small client users, it is very distressing. The layer2 expansion solution can achieve fast transaction speed and low cost. Therefore, VAVA has considerable advantages in terms of speed and cost.
Q5. Is there any intention of BUYING BACK or BURNING? …if so, how do you intend to strike a balance between burning and providing liquidity?
Of course, yep. Part of the income from the VAVA Protocol will also be used to buy-back VAVA tokens, which dividends will be distributed to the members of the DAO weekly according to the proportion and time of the staking. Participate in VAVA DAO governance, perhaps the decision is up to you. Thanks, and that’s all for the twitter segment time to give the community members an opportunity to post their questions
