On April 26th, LuckTogether technology leader Start and LendHub core developer Jason conducted an AMA in the community on the recent establishment of a cooperative relationship between the two parties and the development of DeFi, in-depth interpretation of the future development trend and huge opportunities of DeFi.
After the answers of Start and Jason, the community has a deeper understanding of the future development plans of LuckTogether and LendHub, and at the same time has a preliminary judgment on the development of the market. The following is the content of Start and Jason's answers in this AMA:
- DeFi has been popular for a long time, especially the launch of the Huobi ecological chain Heco has made DeFi projects such as liquid mining and lending popular. How do you think DeFi will develop in the future, and what are the opportunities?
DeFi can be said to be the largest application scenario in the current blockchain industry. This time the bull market is not only institutional bulls, but also a wave of DeFi bulls. Since the rise of compound in June and July last year, the DeFi boom has swept the entire Industry, I think it will continue.
Emerging public chains represented by HECO, Polkadot, NEAR, and SOL will be full of various opportunities. Although ETH and BSC are currently the two dominant players, due to their high GAS fees and transfer speed Problems such as slowness are very unfriendly to users, and other emerging public chains will inevitably stand out with other related advantages such as low GAS fees, fast transfer speeds, and exchange support. And the head projects of this kind of public chain will have great opportunities.
The top lending and DEX projects will remain the safest and most stable investment opportunities in the DeFi industry. Because with the expansion of DeFi scale, projects with rigid needs such as transactions and lending and fixed profits will grow at the same time. The risk resistance and growth of this type of project must be the best.
Another point, I think there will be new opportunities for DeFI+ games. Some of the blockchain games that have appeared recently are still very basic and primitive. There has not been a particularly high-quality game, but the audience of the entire game market is very broad. If there are some blockchain games with high-quality content
The development of DeFi is obvious to all. Borrowing, oracles, DEX, derivatives, options, insurance, etc. have all contributed to the prosperity of DeFi.
Although Ethereum has harvested a large number of DeFi use cases due to its early advantages, with the update of technology and the use of innovative use cases, many non-Ethereum blockchains are also using their own advantages to attract DeFi use cases. The success of the Huobi ecological chain Heco The launch is a very good proof. I believe that the development of DeFi will enter the era of full-scale explosion in the future, and it will no longer be the only one dominant in Ethereum.
I think a new type of DeFi project will have a very big opportunity, because a new type of project is relatively less competitive, can gather users to the greatest extent, and secondly has a certain first-mover advantage, which is likely to become a later one. The head item in the subdivision field. Just like our LuckTogether project currently has almost no competitors, and the room for development is relatively large, it can be said that a new subdivision track is likely to be opened.
- There are various projects in the market nowadays. How should an ordinary investor judge whether a project is reliable and worthy of participation?
The easiest way is to look at the project's investment institution first. Through the judgment of the project's investment institution, the resources and strength of the project team can be roughly judged.
Through the data on the chain, look at the project’s telegram group activity, Twitter number, activity, on-chain activity, number of coin holding addresses, transaction volume, project TVL and other related data, and have an overview of the number of users of the project Basic judgment
Under the bull market, try to choose the layout of the project itself or projects that are in an early stage in the ecology as much as possible, avoid chasing the popularity, chasing the rise and the fall. Under the bull market, market sentiment will continue to promote the growth of bubbles, and the bubbles will get bigger and bigger, so there may be huge bubbles for mature and stable projects that are not heady.
To be honest, it is difficult to judge whether a project is reliable or not, and you can only make a rough judgment based on experience. First, you need to look at the project’s white paper, specific instructions and other materials to have a preliminary understanding of the project; second, find the project’s audit report to see if it has been audited by a reliable audit agency; and then you can join the project’s community , Take a look at the situation in the community and the evaluation of the project by people in the community; finally, you can try a small amount before deciding to invest, and then slowly increase the amount after you think the project is more reliable.
- Judging from the current development of DeFi, which track are you more optimistic about?
This question has also been mentioned in the previous answer, mainly for DEX, lending and games. DEX and lending are mainly because their business models have been tested, and these two businesses are just-needed products in DeFi, and they have a stable income model, which is a very good track.
As for the game track, although there is still no color, I think it may be one of the most potential tracks, because the current DeFi+ game market is almost zero, but the game characteristics determine that if there is a high-quality blockchain The game can enter everyone's field of vision, so it only takes a moment to go from 0 to 100. Therefore, I am also optimistic about the potential of the game track.
I am optimistic about two types. One is the ones that have developed to a certain scale and have relatively little momentum, such as various decentralized exchanges, lending platforms like LendHub, etc.; the other is the new type that has just appeared. Platforms, such as LuckTogether, have almost no competitors and huge room for development, and have a good chance to become a giant in the subdivision of the track.
- Why do you want to build a platform like LuckTogether, and what is the ultimate goal?
Our ultimate goal is to create a charity platform, which is also our original intention for this project. Therefore, in essence, LuckTogether is not a completely profitable project, but gathers everyone's strength to help more people in need, and truly uses the power of blockchain to improve current charity activities. This is completely different from many other commercialized blockchain projects.
As far as the current stage is concerned, LuckTogether is an open source, open, and decentralized non-destructive mutual mining project. Users only need to deposit the corresponding token in any prize pool to have the opportunity to win rewards and at the same time obtain mining revenue. LuckTogether is based on a safe, non-destructive, and fair design concept to ensure that every participant can gain everything.
In addition to the generous rewards in the prize pool, the winners can also get a lucky box containing various tokens. The most important thing is that as long as users who participate in LuckTogether can obtain the reward of LuckTogether platform token LUCK through mining, all users can get additional rewards on the basis of non-destructive principal.
- What plans will LuckTogether have in the future?
In the near future, we will connect with more project parties and reach a cooperative relationship with them to expand LuckTogether's network; our "lucky partner" will also be launched soon, invite friends to participate in lossless mining, and enjoy invitation rewards to further expand LuckTogether The influence of the community; the community governance DAO will also be launched soon, and users who hold LUCK can get a share of the prize pool. In addition, we are also actively preparing to launch the Binance Smart Chain, and it is estimated that it will be successfully launched soon.
At the same time, in order to achieve our ultimate goal of doing this project, we will also start to dock some charity platforms so that the charity platforms can truly use our projects to solve practical problems.
- As a lending platform, how is LendHub different from other similar lending platforms? Where is the advantage?
Compared with the top lending platforms such as AAVE and Compoud, from the perspective of user income, the return rate of assets deposited in LendHub is much higher than that of existing AAVE. Taking USDT as an example, the rate of return on AAVE is only about 5%, and the rate of return on USDT on LendHub is between 15%-25%, which is 3-5 times the difference. Another example is ETH. The deposit income on AAVE is only 0.28%, and the income on LendHub is about 10%, and the return rate is dozens of times different.
From the perspective of public chain development, the Heco public chain where LendHub is located has faster user transactions and lower fees than the ETH public chain where AAVE is located. The high gas fee on ETH and the profit spread of the lending platform will cause a large number of users to turn to Heco's head lending platform LendHub.
- What are the short-term and long-term plans for LendHub in the future?
In the short term, the main thing is to launch the DAO voting governance function, and then to open the DAO voting for repurchase destruction/dividends. It is up to the community users who participate in the DAO lockup to decide whether to repurchase dividends or repurchase and destroy. Secondly, we are also actively communicating and cooperating with more high-quality project parties to give LHB as many application scenarios as possible.
In the long run, we will consider cross-chaining LendHub. Currently, we are considering cross-chaining to BSC or okChain, building LendHub into a multi-chain mainstream asset lending platform, and realizing multi-chain lending interoperability.