AMA Recap 404 Daily Crypto with Lendefi

8 min readApr 17, 2021

Hello 404 Daily Crypto Community

On the 17th of April, at 12:00 PM UTC (19:00 WIB). we just successfully hosted our 17th AMA with Lendefi, with our guest from Lendefi team:

Many of you might have participated or many of not, So here we are up with the AMA transcript for those who missed the AMA session.

Introduction Questions Asked By 404 Daily Crypto Team

Before proceeding to segment 1, please introduce yourself to our chat!

I’m Scott Schulz the CEO of the Lendefi Protocol
My role is to oversee all areas of the project. My professional background is in finance and financial technology. I have been in the blockchain space for several years and I am very passionate about the technology. From a young age I have always adopted new technologies.
Technology and financial markets combined is what gets me excited, since 2003 I have been trading Forex via Metatrader 4, trading Forex algorithms is a combination of my passions.

Q1. Can you briefly introduce Lendefi to our community? And how is the story behind the Lendefi creation?

Lendefi is a decentralized lending protocol that acts as an escrow, thus securing the funds. The protocol enables people to earn interest by lending their stable coins to the lending pool and borrowing popular (top 10) digital assets.
Lendefi aims to fill the gap of undercollateralized lending, whereby a person can borrow more than the collateral they have put up. The Lendefi protocol was conceptualized by the management team in December 2020, the governance token LDFI was minted on the 20th of January 2021.

Q2. What is so exciting about Lendefi, which might make Lendefi different from all other projects out there?

Undercollateralized secured loans, a product not yet on the market. Leveraged Longs with a real asset.
Here’s an example to help you understand how undercollateralized lending works…
Borrower deposits $50,000 BUSD as collateral into the protocol. ‌
Borrower loans $50,000 BUSD from the lending pool.
Borrower invests into $100,000 worth of BTCB. In this step the protocol will initiate a trade on PancakeSwap to change $100,000 (minus loan fee of x%) BUSD into BTCB. The BTCB is then escrowed by the protocol.

Case A
The price of BTC has now decreased by 40% ($60,000 total collateral) and a liquidation is triggered.
The BTCB is Pancake swapped into $60,000 BUSD. $50,000 is sent to the lending pool and $10,000 (minus liquidation fee of x%) is sent to the borrower.

Case B
The price of BTC has now increased by 50% ($150,000 total collateral) and the Borrower closes out the loan.
The BTCB is PancakeSwap swapped into $150,000 BUSD. $50,000 is sent to the lending pool and $100,000 (minus loan fee of x%) is sent to the borrower.

Q3. Please provide some information about your Roadmap, How Lendefi is progressing so far? And what Lendefi is currently focused on?

We are on track per our roadmap, after making the decision not to alpha on Ethereum, and instead built it out first on Binance Smart Chain to allow for minimum transaction sizes.
While under development, we are focusing on building our communities (currently 6 languages), while pursuing tier 1/2 listing opportunities for our token holders. A We have plans to list on 4 exchanges over the next 3 months.

Q4. Please tell us more about Lendefi ($LDFI) token! What utilities does the token have, and what benefits will tokens holders get?

LDFI is a cross chain token, available as ERC-20 and BEP-20 via 2-way bridge.

LDFI ERC-20 is available on Uniswap
https://info.uniswap.org/token/0x5479d565e549f3ecdbde4ab836d02d86e0d6a8c7
LDFI BEP-20 is available on PancakeSwap https://exchange.pancakeswap.finance/#/swap?inputCurrency=0xae1119b918f971f232fed504d48604d5fef7277f

LDFI is the native governance token of the Lendefi protocol. It controls the interest rate model, addition/removal of supported assets, reward distribution, changes to the protocol and any other applicable terms and conditions.
The protocol generates fees from the difference between the interest paid by the borrower and interest paid to the lender, otherwise known as the spread. The protocol uses these fees to purchase LDFI tokens from the market, which are then either burnt or used as rewards. Rewards are given for staking, liquidity, liquidation and yield farming.
We currently have an LP program running on Uniswap, where holders receive a share of the $10k LDFI prize pool. Next month we will be bringing this LP program across to PancakeSwap, where we also have an LP.
Our staking program with high APY will be released in the coming weeks for the BEP-20 holders.

Q5. What are some achievement that Lendefi has achieved so far? And what are Lendefi upcoming plans, Especially in 2021?

Lendefi had a very successful private and presale sales, having a number of highly reputable investors backing the project. The details can be found in this article.
https://coinmarketcap.com/headlines/news/undercollateralized-crypto-loans-as-the-future-of-decentralized-finance/
Lendefi was the first project to IDO on Falconswap, where two presales of 50k each oversubscribed by 400%.
We are now focusing on the delivery of the product with development underway. Expect to see multiple tier 1/2 listings in the coming months and a product live end Q2.

Questions asked on Twitter for Lendefi.Finance Team

Q1 From Twitter username @ZamoraJoana
The lending has its own limits, so can you tell us what is the minimum amount that an user can lend? Also how much are the return benefits?

In order to deliver a Protocol that would allow for small transactions, the project has decided to go live on Binance Smart Chain first, and then circle back to ETH, as we plan to be a multi chain Protocol.
BSC will allow for the smallest of borrowing and lending sizes, as the transaction costs are low.
The exact amounts we are yet to confirm. The lending pool will have a floating return of 6–12% pa, which will be based on a number of moving factors.

Q2 From Twitter username @Lopyou54804819
Lendefi is a crypto loan project that is secured by undercollateralized. as a beginner i don’t understand what is undercollateralized. can you please tell how it works?

The best way to understand what Undercollateralized means, is by going through the example again;

Borrower deposits $50,000 BUSD as collateral into the protocol. ‌
Borrower loans $50,000 BUSD from the lending pool.
Borrower invests into $100,000 worth of BTCB. In this step the protocol will initiate a trade on PancakeSwap to change $100,000 (minus loan fee of x%) BUSD into BTCB. The BTCB is then escrowed by the protocol.

Q3. From Twitter username @BagusIra86
How do you plan to onboard the initial liquidity needed for your pools and what benefits if user want to be liquidator or provide liquidity?

We have already had discussions with a number of highly reputable Liquidity providers who have expressed interest in funding the pool as soon as the audit has been passed. The Protocol itself will be funding the lending pool and growing it through some of the fee’s occurred.
Lenders will receive a moving interest of 6–12% pa. As the Protocol holds the asset, the risk level to the lender is extremely low, making lending to the pool an attractive offer.
Liquidators will receive part of the spread (fees gained by transactions).

Q4 From Twitter username @THORGodofthnder
How secure is Lendefi? How has Lendefi developed technology and security to build Lendefi into a truly secure and reliable platform?

The Protocol before going live will go through a number of audits by independent 3rd party auditors who are security experts.
The audits (which will be made public) will give lenders and borrower confidence to use the Protocol.

Q5. From Twitter username @TimSukses13
Now that technology is changing every second, are you afraid that in the future #Lendefi.Finance will lag behind new projects with newer technologies?

Lendefi is already a multi chain governance token. We moved fast to provide our token holders access to a more affordable market place (BSC). Lendefi will continue to adapt, with plans not only for further governance token chain access, but to be true multi chain Protocol solution.

Questions Asked on Public Community for Lendefi.Finance Team

Q1. From Telegram user @zaferce
There are high gas fees and congestion issues in the Ethereum network.
So is your choice of BSC the best choice for Lendefi? What advantages does the BSC network offer for Lendefi compared to Ethereum in scalability, staking, and farming?

The great thing about the LDFI governance token is it is multiple chain.
Our token holders can choose which network they perform, its up to them.
BSC offers as much as ETH in much areas. However many may op for BSC due to the much lower operating costs. Swap fees, transaction fees, gas

Q2. From Telegram user @Knepperr
Defi & NFT is very popular now.
Can you share Your opinion about Defi & NFT ? What makes Seascape NFTs rate and special?

Lendefi is exploring opportunities for its token holders in the NFT space. We have already had a member of the community create a NFT based on a muscat concept from the past.

https://t.me/lendefi_io/31301
https://www.bakeryswap.org/#/exchange/new-artworks/artworkInfo/10274/1/0

We will be looking at airdropping limited edition NFT’s as part of a future staking program.

Q3. From Telegram User @YvoneRicci
Can you explain how is your Tokenomics Distribution? How many tokens Will be minted ? And How many tokens Will be locked by the team?

Please view of Gitbook for a detailed answer to that question.
https://lendefi.gitbook.io/lendefi-finance/tokenomics

Q4. From Telegram User @mooonsade
Which countries/regions are the main markets that Lendefi is focusing now? How do you think about Vietnam in Lendefi market development plan?

We currently have 6 Lendefi Telegram communities and Vietnam is one of them.
https://telegram.lendefi.finance
https://t.me/lendefi_vietnam
https://t.me/lendefi_tr
https://t.me/lendefi_arabic
https://t.me/lendefi_persian
https://t.me/lendefi_philippines
https://t.me/lendefi_nigeria

Q5. From Telegram User @fmlkfi9e
As Education for crypto currency is necessary nowadays , what’s your plan to to attract those people who don’t know about cryptocurrency?What makes you feel confident about the survival & sustainable success of Your project in the near future?While you build your project, do you take into account community feedbacks and demands?

Help Educating our communities and the wider communities is something we will continue to do through educational articles published in our Medium.

Let’s learn and grow together 📗
Medium article 🗣
The DeFi Ecosystem: Building The Future of Finance 🔧 💸https://lendefi.medium.com/the-defi-ecosystem-building-the-future-of-finance-82b63479ddf6

Keep Supporting ❤️
🌲 Linktree: https://linktr.ee/lendefi
🌏 Global TG: https://t.me/lendefi_io
📣 Announcements: https://t.me/lendefi_announcements
🗣 Twitter: https://twitter.com/lendefi_io
📋 Medium: https://lendefi.medium.com

Is there a closing word from you before we end this AMA?

Thanks for having me there. I hope you all now have a better understanding of the Lendefi Protocol

For more information and future AMA, join our Social Media channels:

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More Information Lendefi.Finance

►Linktree: https://linktr.ee/lendefi
►Global TG: https://t.me/lendefi_io
► Announcements: https://t.me/lendefi_announcements
► Twitter: https://twitter.com/lendefi_io
► Medium: https://lendefi.medium.com