Thanks all for participating in our Lien Finance AMA. We really appreciate all your support. There were really good and thoughtful questions that were asked. For those who missed our AMA, this blog post is for you.
CryptoNationIN Admin – Hey guys! We are now live with Lien.finance. We are glad to Invite @LienFinance 🙏 Before we start, I request you to please introduce yourself and the project. @LienFinance.
Lien – Hi! We are the Lien Protocol. Lien is a protocol for creating Options and Stablecoins from Crypto Asset. Lien enables one to create any kind of options. We provide following options such as call options, put options and butterfly spread, any kinds. We currently provide call options and put options, but we are going to provide more options for users. Also, we have a feature to create stablecoin out of derivative products. Though we currently stop providing this feature as we faced the bug about several months ago. However, we are planning to relaunch it soon. Stay tuned!
CryptoNationIN Admin – Cool! Hope users will get full access to your services. ✌️
Q1. Lien Protocol WP claimed that when a Stable Coin (SBT) is issued, a Leverage Token (LBT) is also granted, but is it possible for users to decide the ratio of SBT / LBT in 10 ETH, for example? Percentages are SBT 50% / LBT 50% or SBT 70% / LBT 30%?
Lien – The percentage of SBT and LBT is fixed as these share strike price and maturity date. SBT is a deep in the money call position thus it is very stable. The value of SBT is pegged to the value in degree of USD. On the other hand LBT is a leveraged call option. Since SBT is very stable, LBT is volatile. After you split ETH into SBT and LBT, you can convert SBT to stablecoin and hold LBT. If you only would like stablecoin, you can just sell LBT. That is the mechanism we have. Therefore, there is no way for users to change the percentage of LBT and SBT.
Q2. What advantage does LBT have over options on traditional trading platforms? What’s the difference between LBT Lite and original LBT?
Lien – Good question!
LBT LIte we currently provide to clients is at the money call option, thus, the more users have payout if the ETH price on maturity is higher than the strike price. LBT which we used to have is produced with SBT. The strike price of SBT is much lower than the current one and it is leveraged.
Q3. It says in you web that you carefully deliberated about the choosing of the oracle for Lien.Finance. Why did you decided to use ChainLink?
Lien – It is simple, at that time, Chainlink was the oracle which has a prevention for market manipulation. We might user other oracle if there are better one.
Q4. Please tell what drew you into #DeFi and where do you see the space headed in the next few years? And of course, how do you see demand growing for products such as yours along the way?
Lien – What we provide is already very innovative. Users can crate any kinds of options by spliting ETH or stablecoin. We created call options by tranching ETH and we create put options by tranching USDC. In addition, it is very user friendly as our options are European type. Not like Hegic or Opyn, users have to exercise your position by your own on maturity. For Lien, you can do it later.
Q5. Many tokens dump after launch or turn out to be a promied folly. How do you intend to prevent that?
Lien – True. We could not prevent that as well. But we believe it will rise again as long as we continue providing good products.
Q6. FairSwap claims to be the better DEX thanks to its Front-Running prevention and Dynamic fees Pricing, but how you manage the huge SPREADS between orderbook’s prices and Slippages?
Lien – https://lien.finance/fairswap
You can look at here. In medium, it is also explained.
Q7. Why Lien Needs 4 different tokens? I understand the use of the Lien and Idol, but why do you need the LBT and SBT?
Lien – SBT is needed to produce stablecoin. It is deep in the money call position thus it is very stable. That is why you can create stablecoin out of SBT. LBT is another potion when we create SBT. It is a leveraged token thus there must be demands from ETH believers.
Q8. In how many ways or what are the ways your project generate revenue? What is the revenue model? How it can be beneficial for both investors and for project itself?
Lien – Lien token holders can receive dividends which are incurred from fee taken when ETH is split for creating derivative products as well as trading fees for FairSwap. The more people use the protocol, the more Lien holders are benefited.
Q9. How can we trust your project? We don’t know anything about your team members? Even you don’t have any roadmap or white paper! So, it confusing that where you wanted to take this project?
Lien – Though you cannot know team members. You can read the codes. It is very innovative and we are very confident about it.
Q10. Usually the project only tells about their strengths. Can you tell us honestly about the weaknesses of your project? And what are your plans to solve it?
Lien – Maybe the fact that we are not good at marketing. We need people who can understand about our protocol and spread to people.
Q11. I have seen that you have done many AMAs, my question is, what do you expect to get from so many AMAs and what are your goals with the community? Do you consider the community to be a fundamental role in the project?
Lien – We don’t do many AMAs as we mostly do not receive good questions.If there are questions about our protocol, please feel free to join our telegram and ask them. We are always open https://lien.finance/
Q12. Is your project is fully decentralized and is there some risk of centralization in the future?
Lien – Yes, our protocol is fully decentralized, without any governance tokens, administrator and admins keys.
Q13. Are you partnering with any big exchange?
Lien – Yes, we are planning. Stay tuned!
Q14. Some DeFi projects were recently “hacked” as per their explanations. How do you think these recent events on other DeFi products affects the trust by users? What can Your Project do in order to ensure crypto enthusiasts that #DeFi is safe and reliable?
Lien – It is very difficult to protect users from bugs. As you may know, we also had a serious bug and a white hacker suggested. By using this bug, we protected user’s asset and we fixed it. This happed although we had code audits from two different auditors. It is very difficult even if we ask auditors for audits.
Q15. Without proper marketing and capital infusion, project dies, how do you convince us you have adequate marketing power and capital to push this project to the top project?
Lien – No. Marketing is very difficult. If there are good ways of marketing, please tell us. We feel AMA is not a good way for marketing. We are very confident about our idea, but it may be too complex for people. We hope there would be more influencers who can understand about our project and spread this to people.
Thank you to Lien Finance and Community for participating in the AMA. Have a nice day.