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AMA#23 Recap || Polka Warriors x Crafting Finance

Published date: June 5 2021
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On June 04, Crafting Finance and PolkaWarriors together organized an AMA with the community to introduce Crafting Finance - a protocol for forging and trading synthetic assets on Polkadot. 

Crafting is a synthetic asset project based on the Polkadot ecosystem. Similar to Synthetix, it provides the issuance and transaction capabilities of various synthetic assets, which can support the issuance and transaction of almost all types of cryptocurrency assets and real assets. The important modules of the product include MintR, Kingsman, and various synthetic assets (Raft, RaftStable, UnivRaft, BondRaft). MintR supports a variety of collaterals to generate various synthetic assets and even user-defined assets. The debt pool model DEX used by Kingsman does not require counterparties, which solves the problem of DEX trading depth.

This AMA was held in PolkaWarriors Global Telegram Group with the participation of Potti - Chief Community Officer of Crafting Finance. Many interesting questions about the products of Crafting Finance, the roadmap of project, and their plan for the future were answered by Potti.

Below is a summary of the outstanding questions and answers from the AMA session.

1. What is your plan for global expansion? At present, which market does Crafting Finance focus on, or is it focused on building and growing to gain customers, users, and partners?

Potti:

It is a global project and you can use it from anywhere in the world. We know it is the best feature of Defi. Defi means decentralized, uncensored, permissionless financial service for everyone. It has no threshold, provides financial freedom for everyone, and at the same time guarantees safety. We believe Defi will definitely make the old ridiculous banking system obsolete in the long term.

2. What issues and products do Crafting Finance currently focus on developing? What are the technical priorities that Crafting Finance puts on top?

Potti:

I think the top priorities are launching the platform, starting the liquidity, and reaching a market cap of our RAFT. And we will focus on listing more kinds of synthetic assets and improve the TVL and market cap of the RAFTS. We will also launch our DAO system, which means Crafting finance will become a distributed project.

3. Each project created has its own mission and goals, so what are Crafting Finance 'missions and goals in the future? How important Crafting Finance will be to everyone in the future?

Potti:

Our mission is to realize a decentralized virtual asset issuance platform and decentralized contract trading exchange, which can not only replace the perpetual/futures contract functions of major centralized exchanges in the long term, but can even realize the issuance of any type of assets on the protocol, and play an important role in the traditional financial market.

We know that centralized contract exchanges have exposed more and more issues, and the entire industry needs a solution for decentralized contract exchanges. The decentralized contract trading program of this project not only has the characteristics of general DEX, such as openness and transparency, anti-censorship, and does not require KYC, but also because there is no counterparty, it perfectly solves the problems of general DEX in transaction depth and liquidity. Therefore, we believe that the prospect of CF is very broad and it is a real DEX solution.

4. Right now issuing a token is a rather simple process. However, building the system and ecosystem is the most difficult part. My question is, How will the demand for the token increase, and how will this token use within the ecosystem?

Potti:

CRF is our governance token, so every token holder can participate in community governance. And we designed various ways to promote the long-term value of CRF. All our investors believe that we are a very promising project which will change the financial world, so we believe they will hodl the tokens for the long term.

5. Why did you choose the Polkadot network? Do you plan for BSC or your project in the future? Do have plans to add your project to various blockchains in the future?

Potti:

Our project is based on Polkadot which is built for scalability and interoperability. So its performance will be much better than other Defi projects built on Ethereum. And yes, we have plans to expand our project to other chains like BSC.

6. Where does the project name come from? What does it mean for you and why did you choose that name for your project?

Potti:

We first thought of the name Crafting, which comes from the game Minecraft when one of the founder Anray’s sons was playing it. There is a Crafting Table in it, which can synthesize stronger props such as various props, ore potions, etc. Just like we can synthesize assets in this project.

Later we find that it is really a good name since Crafting named the synthetic assets "Rafts", which means that each synthetic asset is a "raft", and these rafts co-exist in the sea area of the shared debt pool, and like the sea, share The debt pool can provide Rafts with almost unlimited liquidity.

7. Can you tell us the motivation and benefits for investors to hold $CRF in long term? What plans do you have to help drive demand and scarcity for the token?

Potti:

We have three ways to encourage users to hold CRF:

  • The system will also reward the users who're using the CRF as collateral, so the investors will choose to forge to get the reward, which will also benefit the liquidity of the system.

  • The fees collected from trading in Kingsman will enter the fee pool. Those fees will be used as rewards as well as buyback and destroy CRF.

  • Users who choose not to join the SDP will pay interest on their synthetic assets, and the interest will enter the interest pool. Those interests will be used to buy back and destroy CRF.

With all these three incentives, there will be very solid support for the price of CRF and it will be beneficial to the long-term holders.

8. Safety and security are always of the utmost importance. So, what are the security mechanisms of Crafting to ensure that users' assets are not targeted by hackers? 

Potti:

Security is always our top priority. We will do a code audit and a lot of trial runs before the main net launch. And the project is fully decentralized and open-source, so everyone can check the code on Github.

In the live questions sections, Potti did answer several short questions from the Polka Warriors community.

1. Can you indicate a feature or feature that you like best about the platform so that it can compete with other competitors? What are you most confident about for your platform? Do you have plans to get users to choose your platform?

Potti:

We know Synthetix on Ethereum is the inventor of synthetic assets. So it is better to explain what is different from them and what upgrades we will provide, as follows.

  • We support multi-token collateral to issue synthetic assets, while Synthetix only supports its own token SNX.

  • We can forge all types of synthetic assets, such as Bond, stablecoins, customized assets, etc. directly, while in Synthetix you need to mint their stablecoin and convert to other assets. 

  • After allowing users to issue synthetic assets, they can choose whether to join the shared debt pool (SDP). This is our most important innovation over Synthetix. 

  • Multiple debt pools are natively supported (the synthetic assets issued by Synthetix directly enter the debt pool, and multiple debt pools are not supported). In the future, the debt pool can be split based on various methods (when the liquidity is enough, it can be completed by DAO)

2. Currently, NFT is very hot, do you think you will apply NFT technology to your products in the future?

Potti:

Yes. You know synthetic assets can stimulate any real-world asset theoretically. That's why we have four types of synthetic assets. NFT is just one kind of asset. We can support it through our UnivRaft.

3. In the whitepaper you mentioned "crafting loss", can you explain to us about it? How can users manage this risk? And is this a weak point of Crafting Finance?

Potti:

Crafting loss has existed since Sythetix invented the sharing debt pool model, but they just didn't well define it. All other projects using SDP will face this problem. It is a loss that, when a user holds a kind of asset but the relative price to other assets decreases, the user will lose money. However, it is not a weak point of Crafting. Because we provide an option that users can choose not to join the SDP to avoid this loss.

4. "STAKING" is one of the STRATEGIES to ATTRACT USERS and ACHIEVE MASS ADOPTION. Does your GREAT PROJECT have a plan about Staking?

Potti:

Sure. We will reserve 40% initial tokens for liquidity incentives. Users who stake their CRF as collateral and choose to join the SDP will earn the most rewards.

5. Does the Crafting Finance team have a training and guidance system for newcomers to cryptocurrency? How do you attract and reach them?

Potti:

Yes. We will have a Documentation System for users to learn knowledge about the entire system including the system structure, how to use it, and so on.

6. Where can I buy your tokens right now what is your current contract and how can I buy them?

Potti:

It's not public-traded right now. We had a plan to do an IDO at the end of last month, but we postponed it because the recent market volatility has been too great as you all know. Just stay tuned. CRF will be listed on major exchanges.

7. COVID 19 has slowed many economies around the world but as a crypto business has it affected you negatively or positively? Secondly, are you still on track to achieve your targets as the road map says?

Potti:

I think covid-19 will affect the crypto business positively, especially for Defi. Because you can complete all your financial needs just online. 

I'm very confident that the team has completed a lot of milestones and is ahead of our plan.

About Crafting Finance

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