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Arbitrum <> YFX
Recorded: Oct. 20, 2023 Duration: 0:33:58Space Recording
Full Transcription
I'll pass it over to him.
Yeah, thanks for the intro, Eli.
Yeah, happy Friday, everybody.
We have an exciting AMA with YFX.
And yeah, welcome to the stage.
How are you doing on this fun day?
How are you doing on this fun day?
Good.
This is Daniel.
I'm the CMO of YFX.
I'm happy to be here.
And thanks for the invitation of Arbitron.
And welcome to every audience here.
And we are sharing information of YFX today with everyone.
Okay, I think we're going to give us a short intro of what you do at YFX and I guess, yeah, we can start with that and then afterwards we can dive into the history of YFX, the story of how it all began.
Yes, sure.
The first is the last bull market, as everyone knows.
So back then, the main Ethereum would have pretty high gas fee.
Actually, our first goal is to launch on Ethereum, but since the high gas fee, we chose to launch on some side chains, which were pretty popular at that time.
But after one year, because we are a perpetual trading platform, so the trade frequency would be pretty high, which is not pretty good on midnight with high gas.
So after one year of operation, the high gas fee, and the trading chain, they didn't turn out or work very well.
So we kind of like suspended this project for about a year.
As everyone could see, we didn't have much things to post in that year, but our development team didn't stop of developing.
We tried different versions of like mechanism and modes of the perpetual trading, and we started to like investigate every project, every product on this market.
And two, like earlier this year, we found that Arbitrum has attracted a lot of traders with the growing of some good projects like GMX, like GNS.
So we decided to relaunch our project, or V3 version Arbitrum, and this time we kind of finalized some functions we didn't have in the earlier version.
And we made some major differences with other projects, which is also our innovative features of this product, which I will like bring up later.
So what I can say is that for during the three years of development, we didn't encounter any incidents and any like bad effects to traders.
And we kept developing in this market and in this perpetual trading industrial industry.
So we are very confident about the product because everyone has like, has very experienced, they were all very experienced and they are, they have put much effort in this latest version of product.
So we can say it's flawless, but this is what we can do for the best in this market because if you look into our codes, it's, it's very complicated.
And we can say it's perfect, but it's as good as we can right now.
If you compare it with other projects, I think you will know why I would say that.
Yeah.
Thanks.
Yeah, it's, uh, I think like at the moment right now, it's very hard, especially because, uh, it's a bear market.
Um, but, you know, uh, something that I've been noticing, uh, within the Arbitrum ecosystem, um, especially in the DeFi, uh, area is that, um, there are projects that are building, uh, really sustainable models, uh, to create like sustainable yields, like real yields for users to enjoy.
Um, so I think it's been quite an exciting time, um, within the Arbitrum ecosystem only because, yeah, you have that, you have projects coming in and building, uh, really innovative stuff.
That is like solving challenges that we currently face in the DeFi ecosystem.
So it's great to see all these projects here, um, building and, you know, being at the forefront of solving all these challenges that we currently face in the DeFi ecosystem.
Um, so that's, that's something I wanted to point out and like, what, what's your experience been like so far, um, integrating into Arbitrum?
Like, how has the community been, uh, how, how has that support been like?
Uh, yes, that's so true.
I totally agree with that because it's been like three months that we launched our product and, uh, we can see that, uh, the community growth is not as, as fast as, uh, earlier time.
Uh, but we are still trying to do a lot of things in this ecosystem, like, uh, uh, uh, to, uh, uh, to cooperate with, with every project in this, uh, ecosystem as possible as we can.
And we try to integrate, uh, lots of other products, like, like, like wallace, like some DeFi yielding product, like lending product, uh, like DAX.
Cause, uh, since, uh, since we have the single asset pool, we can, uh, like, uh, to adopt, uh, spot trading for, uh, platform just like JMX.
Uh, so, uh, uh, but, uh, what we, what, what's the most, what, the most important thing we think for building in this, uh, in any ecosystem is the consistency.
So, uh, no matter, uh, it works or not at this time, but as long as we do these things consistently and to, uh, like keep doing, uh, what we should do and we, what we have to do, like, like, uh, keep to,
uh, uh, to, uh, to new in ways into, into, into the community and to, like, share the benefits with, uh, or over traders and liquidity providers and to share the community traffic, to share the, the benefits with all the other projects, or even to share, uh, everything with the arbitral, uh, ecosystem.
Uh, like, uh, like, uh, we, uh, we, we are willing to share everything of, uh, to, like, keep this entire ecosystem to grow, system to grow together, especially at this moment, uh, only by doing this, we can, like, build together to, uh, to integrate into a, uh, like, very, uh, complete, uh, ecosystem, uh, and to, like, uh, to, uh, to, uh, to share all the traffic, to share all the benefits.
Uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh, uh
community, to the entire ecosystem, I think that's pretty enough.
Yeah, no, I 100% agree.
And I think something that you'll notice, you know, within, you know, being within the
Arbitrum ecosystem is that there's definitely a lot of projects out there that are very
open to collaborating and opening to build with each other.
Um, and yeah, that's something you see a lot here.
So, um, it's great that you guys also have like the same idea and mission of building
together, um, solving challenges together, collaborating and, and, you know, helping
each other as well.
So, um, honestly, that's great to hear from you.
Um, and I want to, uh, point out something really interesting as well.
Um, so you guys offer a variety of different features, um, compared to other Arbitrum Perpetual
protocols.
Um, so I'm wondering, do you want to like, uh, dive deep into that?
Oh, yeah, sure.
Uh, actually, uh, or innovative feature, uh, is not like, uh, that innovative, like Uniswap
or like the, uh, that, that creative.
But what we want to do is to offer more options for, for traders.
But the thing is that, uh, or, or asset pool is called single asset pool.
Like if you, uh, to deposit your asset into our pools, you only have to, to, uh, deposit
like stable coin, uh, into stable coin pool, but, uh, or the ETH to the ETH pool.
Uh, so by doing that, uh, the, the, the liquidity providers, they wouldn't experience any, uh,
improvement loss, uh, not like the, uh, not like the GMX pool, uh, in the V1 version, uh,
it's also like a multi, multiple, uh, asset pool.
You can put any, uh, asset into it, but, uh, but, uh, the, the price, uh, but, but the
real value of the, uh, of your liquidity is, is calculated as like USD, uh, like, like a
USD price.
So, uh, you might not able to like withdraw the same amount of, uh, of the money you, you
put in, into it, uh, and in their V2 version, uh, is like a dual asset pool.
You have to, uh, deposit other like ETH or USD into that pool.
Uh, but in, or as, uh, in, or as a pool, you only have to like deposit one, uh, one type
of, uh, the, the asset and in, in also not like in GNS, you can only deposit dye into, into
into their pools.
So we kind of offer a, uh, uh, like a middle options, uh, between the multiple asset pool
and, uh, the only, only one asset pool that died.
Uh, so, uh, by doing this, we, we, we not only offer the improvement loss for LPs, uh, we
uh, we also achieve, uh, the real inverse and, uh, uh, uh, the, uh, direct and inverse, uh,
contract, which means you can, uh, make, uh, you can take, uh, uh, USD based, uh, margin
contract and also the coin based margin contract, uh, which is pretty, like pretty popular in
some CEX sect.
Uh, and so, so by, by this tool feature, we, uh, offered all the traders and LPs another
options to, uh, deposit values and to, to trade because in any other, uh, protocols, they
can, uh, doing that in, uh, in, in the real way.
Uh, so that's what we like, uh, the, the most important feature of our protocol.
And, uh, for some other functions, we offer the hatch mode, uh, instead of the one direction
mode, uh, that means you can hold the long position and the short position at the same
time, which makes your, uh, position like, uh, uh, you know, hatch mode.
So, uh, like if you think that, uh, the market is unstable, you can, uh, make a, uh, hatch
trade and to keep your total value at a certain amount and you wouldn't be affected by the
market, uh, price change.
Uh, and also, uh, another, uh, feature of our, uh, protocol is that we can merge all the
all the, all the one direction position into, uh, one position.
Uh, and that means if you like, make, uh, uh, make a lot of, uh, position in different
times, we will merge it into one, uh, one position, which is more convenient for.
Yeah.
Most important measures, uh, major functions.
Yeah.
Yeah.
Go ahead.
Yeah.
I wanted to ask, um, I know you guys dropped a tweet about, uh, differing yourself from other
decentralized perpetual exchanges.
Um, and I'm really curious, like what, what's the difference between, uh, like, so let's talk
about the contract type.
Uh, what is like linear and inverse?
Well, what does that mean?
Yeah.
Uh, the linear is like I said, uh, uh, direct contract margin, which is the, uh, USD based,
uh, margin contract.
Uh, like when you, uh, open a trade, uh, open a position, it will be, uh, you will be using
USD to like borrow some, uh, to borrow more USD to, uh, to, to like make a leverage trading.
But for the inverse, uh, inverse contract, uh, you need, you, you only need to like provide
ETH, the, the coin based.
So when you, uh, when, when you close the position, you, you will also get the, the ETH as the,
as the profit or loss.
Uh, if you have ever used, uh, like the, uh, like Binance or, or, uh, or other CX, uh, uh,
exchanges, you will know that the difference between the USD based margin and the coin based
margin, that's the major difference.
Yeah.
I was just like curious on that.
Um, and like, what, what are the differences in risk of like the single asset pool, uh, YFX
uses compared to its competitors, uh, like GMX and GNS, which offer similar functions, but
with separate pools.
Uh, the most, uh, risk is about the, the improvement loss.
Like, like, uh, like I said before, uh, if you like deposit some, uh, some ETH in, in GMX
V1, V1 pool, uh, the value you actually put into it is not like 10.
If you put one ETH into it, it will be calculated as $1,000 into that pool.
But if the ETH, uh, like the ETH price goes down, uh, and then you can only maybe withdraw,
uh, 900 USDC, but not one ETH.
But, but in, uh, or for a single asset, uh, a single asset pool, like, even though the,
the ETH price dropped, you can still like withdraw what ETH, although, although it's dropped,
but you still get, get the, that much coin.
But, uh, it, it did, it does have some improvement loss, but it's not reflected on the amount of
tokens, uh, you put into it.
You put into it, but also if you like, uh, uh, if you, if you like, uh, deposit the, uh,
the, the USDC into our USDC pool, even though the, the ETA, even though that's a ETH USDC pool,
uh, and, uh, even though the ETH price dropped, you can still, uh, withdraw 1,000 USDC out.
Uh, so, uh, that's the major, uh, major difference between these two pools.
Like, uh, in order to article, how much you deposit, whatever is, uh, think stable coin,
or, uh, major coin, that's how much you can withdraw the exact amount of, uh, of that coin.
But in other particles, it's not like that.
Uh, it could be affected by the market price change.
Yeah.
Right.
Yeah.
And I, I want to learn more about the insurance, insurance funds that you guys have.
Um, so what does that mean for users on, uh, YFX?
Cause I know, I think you mentioned that, uh, YFX is the only one that offers it compared
to, uh, GMX.
So I'm wondering like, well, what does that mean?
Yeah.
Yes.
Uh, the insurance is also called the risk fund, risk management, management fund.
Cause, uh, it sometime, uh, there is this situation that for liquidation, uh, when the
price dropped, uh, too quick and there might, there might be a situation that, uh, like, like,
uh, your position couldn't be closed, uh, automatically cause the price changed, uh, uh, too fast.
So when that happened, the user would like lost more money than his margin.
He actually, uh, deposit.
Uh, like, uh, uh, I used a, uh, I used $100 to, uh, uh, to long an asset for like 10 times
leverage.
But if the, the price drops more than 10%, uh, for, for the no more normal, uh, situation,
my, uh, position would be liquidated.
Uh, so I lost all my $100.
But once if the, the price drops too much, uh, that they couldn't like close that position
at the price of two, 2% drop, uh, that I lost maybe 10 more percent.
So then I have a 100, uh, uh, USD debt.
So when that happened, uh, we could use a, uh, uh, risk management funds to like, uh, to give
the money back to the users to pay back that, the debt.
Uh, but this, this part of money is, uh, uh, like collected by every time once a position
is liquidated, we took like very small percentage of that money, uh, from the liquidation fee,
uh, uh, liquidation fee and put them all into a, uh, risk managed fund.
So as that situation happened to any user, we could like, uh, uh, pay, pay back the money.
So, uh, uh, that prevent, uh, uh, uh, uh, that, uh, the, the, the situation that like, like
I said, uh, and also we, we would like to put some more money from our own pools and from
the, from the team into that risk fund, uh, in case there's not enough money that we took
from every liquidation.
Yeah.
Yeah.
And I think, uh, an important benefit that users, uh, like is fees, right?
Um, so in terms of fees, um, how do you guys compare to other perpetual protocols?
Uh, not only the, uh, position fee, like, like the transaction fee, we are currently having
the point, uh, 0.04, uh, percent, which is the lowest in the entire market.
All the others are either 0.06, 0.08, or, uh, 0.1, uh, like in GMX.
Uh, and all the other, other fees that we collect is interest fee and funding fees.
The funding fees is to balance the, the long position and the, the short position, like,
like, uh, for, uh, long positions are more than the short position.
The short position will like collect the fees from the long position, uh, uh, in other
ways is worse.
Uh, and for interest fee, uh, is pretty, like every, every product's pretty much the same.
So users wouldn't feel the, the differences and that's also a major part, uh, major, uh,
major parts of the LPs, uh, benefits, uh, when, when they like deposit the money into our pools.
Uh, so, uh, the major, uh, major fees that these deducted, uh, for, for users is currently
only the position fee, which is the lowest in the market.
That is pretty much, uh, already.
And users can also, uh, like attend or events for some trading contacts,
for some LP providing contacts.
They can get more rewards, uh, uh, and to like company, uh, company, company managed, uh,
uh, their, their, all their fees, uh, which, uh, which is also pretty decent, uh, whenever
or we have or like event.
Like.
Yeah.
Yeah.
Yeah.
It's very good to hear.
Um, and what are some on the community side, what are, what are some things you guys
have going on that the community can get excited for?
Yeah.
Yeah.
Currently, uh, actually we, we wanna like one, one more users in this ecosystem to, uh,
at least try out or products.
So, uh, right now we are having a campaign to airdrop all the traders in this, uh, ecosystem,
system in Arbitrum system.
Um, like, uh, uh, if you have, you ever used GMX, GNS or any other perpetrating protocol,
uh, before you can now to claim a, uh, $30 reward includes our, uh, a combination of ARP
token and VFX token, uh, pretty, uh, you know, free way.
Uh, you just need to go to Galaxy to like, uh, uh, finish some tasks, including, uh, open
a position of any size, you know, or protocol and to like, learn something about or, or product
that you can claim that, uh, claim that rewards.
Uh, this time we are giving out, uh, $20,000, uh, dollars rewards in total, which are divided
into 600 winners.
So that's pretty decent, uh, rewards for, I think in this market.
I hope everyone who have ever traded, uh, on Arbitrum could try it out.
Cool. Yeah.
And you guys recently, oh, well, actually wait back in November.
I mean, not November, sorry.
September, September 20th.
Uh, you guys recently achieved, uh, total trading volume of 10 million.
Uh, big congrats on that.
Um, I'm really curious, like, well, you know, to keep up with that momentum.
Um, what are some things you guys have, uh, planned for the future?
Uh, yes, for the future, we are soon, uh, opening or earn earning system, uh, which is
the yielding system like all the others have.
But in your system, uh, uh, it's pretty much the same like all the others, but we offer the
all the users very convenient, uh, functions, uh, is one-click, uh, for, uh, one-click harvest.
Uh, you can just, uh, you can just, uh, click one button and then you can harvest all the
benefits and rewards from all the pools and the green, uh, restake into the corresponding
pool.
You don't need to know which pool is for what rewards and, uh, which pool needs what tokens.
You just, uh, need to do one-click and we will, like, finish all the tags for, for you.
And you don't need to know, know anything.
You just, uh, click and waiting for the rewards and, and click again and to harvest the rewards
and restake it into the, into the pools.
That, that's pretty, pretty convenient because, uh, some, some users, they don't want to like
learn that the complicated, uh, earning system from, from, from the start.
So, uh, we don't want users to do that.
That's kind of meaningless.
So, cause in the end, they, they're gonna find out how to do that and, and do, uh, all
these things we offer.
So, we, we just integrated them into one-click, uh, function.
Yeah.
Nice.
Yeah.
I'm sure the Arbitrum community is really excited about that.
Um, and where can people go learn more about YFX?
Do you guys have a Discord or a Telegram?
Yes, we have a Telegram group.
You can ask any question to it.
And we also have, have our, uh, documentation, uh, on our website and, uh, every feature and
function, and every equation, uh, is in that, uh, document.
Uh, just feel free if you can understand anything to ask us in our Telegram group.
Awesome.
Yeah.
Well, um, I think we've covered everything, but if there's anything else you want to mention to the Arbitrum community, um, feel free.
Uh, yes, I think I've introduced, uh, almost everything.
Uh, I just, uh, want to let everyone know, uh, we're going to have more events and campaigns, uh, in the next few months.
Uh, and also we are also very open to any kinds of collaborations from any community and projects.
Uh, we, we want to do this consistently, uh, at least, uh, until the next bull market.
We're confident, like, that we would survive in this period because we have to survive.
Uh, we have spent the last three years, uh, we can still wait for a couple of years.
Yeah.
That's or, uh, like confidence and or mission.
Yeah, of course.
And yeah, if you guys have any questions, feel free to jump, uh, into their community to ask questions.
Uh, but yeah, we can end it here now.
So yeah, thank you so much for joining us today.
Um, it was fun talking about what you guys have been building and the community is really excited about, um, what's coming.
Yes.
Thanks for hosting today.
Thanks for, uh, Arbitrum, uh, and every audience here today.
Hope you have a good day.
Likewise.
Yeah.
Have a great weekend, everybody.
Have a great weekend.
Have a great weekend, everybody.
anovni Goods.
Bye.
Bye.
Bye.
Bye.
