AMA Recap of Dude’s Army x Smoothy Finance
On Sunday, April 18th, Dude’s Army community had the great opportunity to host an AMA with Smoothy Finance’s team, very instructive and educational. We will share with you a little bit of what this experience was like.
Let’s start the AMA
So to begin the AMA with a good mood we will start with some intro questions and then dive deep into it.
I would love to hear more about your background and how you started Smoothy😊
I got my PhD in operations research and financial engineering from Princeton University
And begin my journey in walletstreet ever since that.
Managing Director at AQR capital management
One of the biggest investment management firm with 143b asset under management
Amazing! Really nice to hear that
Wow! Should have told them to all in crypto back in time haha
Got in touch with Bitcoin and blockchain related paper during my PHD life
And I’m sure you dropped that job only because you saw brand new/interesting opportunities in crypto
I guess that’s when Smoothy Finance comes in
And just found DeFi is an amazing field, that so many things we can do to help define it
Explain our community what Smoothy Finance is doing and what problem does it target?
In short, Smoothy.finance is about stablecoin.
While most of the stablecoin products are forked from Curve
It is not a fork of any existing products.
Curve and curve-forks do not provide a perfect solution for slippage, plus there has to be a trade-off between high gas fee and interest earning in both designs.
Our unique design allows the swap ratio of the same backed asset to be fixed at 1:1 for most of the time, makes the gas fee 90% lower than existing projects, and brings maximum interest to the liquidity providers at the same time.
So what is Smoothy? Smoothy is a novel stablecoin swapping protocol that is capable of supporting 100+ stable coins in a single pool with low-cost low-slippage swapping and maximum interest earning for LPs.
Currently, Smoothy was deployed on Ethereum and Binance Smart Chain. This is just the beginning. It is planned to be deployed on other public chains in the future. For example, Fantom, Tron, Heco, and so on.
We are proud to say that Smoothy has over 120m+ TVL and over 15 million daily transactions.
I was about to ask about the gas fee but very interesting to see that. Can you explain a bit more why it drops 90%?
When we compare the gas fee with Curve and mstable, we compare apple to apple
The gas cost here in the pic are all on ETH
Mstable uses same method of ypool, which is they put all the liquidity into yearn to generate interest
so if someone need to do a swap in ypool/mstbable, they have to call external smart contracts to bring the money back to local and then do the swap
That’s why the gas is super high.
Spool in curve is local swap, no interest generation, so the swap fee is much lower
Understood so no need to call the smart contracts out and in. Just all local.
Basically interest with high gas or no interest with low gas
For Smoothy it is low gas but still can generate interest
Unlike Curve which has multiple pools used as swap-only (sPool) and swap+save (yPool) , there is only one pool to concentrate the liquidity in Smoothy
Instead of putting 100% liquidity into vault to generate interest, 10% of the cash will be reserved for swapping while the rest will be deposited into yToken to earn interest
Once you design it to work
Just like bank reserve system
Bank will never lend out all its money out for interest, will keep partial as reserve in the locsl in case withdraw anytime.
That’s how we achieve low gas but interest and same time
Plus we used a different swap algo compared with Curve, more optimization and less calculation
I will say it out loud here that I was talking to a friend and pointing out that your solution would be awesome to solve this eth gas problem but not just that we have the liquidity problem solved as well correct?
Because like for this you solve few points
- high gas fees
- easier way of adding to pool
And now to the next point you solve, liquidity
If eth gas fees indeed drop hard
Yep, one pool will consolidate liquidity
No need to put liquidity in different pools, this is very important for smaller cap stablecoin
Indeed that will be great for new stable coins
Yeah and no need to multiple swap for stablecoin staying in different pools of Curve
Talking about that, people ask a lot that why Curve has a different pool, if they want, can they become one pool?
The answer is no. Curve can support up to 4 stablecoins in one pool, that’s decide by its swap algo
We use different algo which allows 100+ stablecoin in one pool
That’s great! Very good for new stable coins and for deeper liquidity
I want to congrat you for the 120M+ TVL already!
That’s a huge milestone and I’m sure that made you even more confident on your product.
Also congrats for the triple IDO ann on only T1 launchpads:
Yeah, just announced the public sale options yesterday
My last question before we move on to community questions is about the token! What will be it’s utility?
BSCPad DAOMaker and Ignition by paid are all popular IDO platforms.
$0.5 per SMTY for them
Paddle does not have request for whitelist, no need to hold platform token and no cap, it is open for everyone.It has multiple price, starting from 0.5+
You can choose the best fit for your plan. In terms of SMTY. The governance token of Smoothy
- Collateral for adding new stablecoins （or same-assets backed coin) and for increasing soft weight of a stablecoin（or same-assets backed coin)
- Governance voting for swap fee (collected by LPs with initial value 0.04%) and withdraw fee (buyback SMTY with initial value 0.04%)
- The incentive of the bootstrapping of asset liquidity via liquidity mining
Interesting. First time I hear of paddle. Should be cool to watch it
This is a clear pic of how Smoothy is different from Curve and Curve-forks
One important question though @AlbertTsu ! What if one of those stable coins get rekt by some reason and people start buying them and swapping for others? Can you comment a bit on that as well?
Sure, after the public sale question
There are 2 types of public sale:
1) Fixed price: BSCPad, Ignition, and DAOMaker ($0.5, $50M valuation)
2) Multi-priced crowd pooling: Paddle.finance ($0.5+, $50M+ valuation)
BSCPad, Ignition, and SHO by DAOMaker will bring awareness and more traffic to Smoothy
They all have its own requests of how to get allocation with max cap
If you are not lucky to get from them, you still have chance to use Paddle.finance
No whitelisting, no requests, open to everyone, there will be instruction of how to use paddle very soon if you are intersted to get SMTY
Of back to the security question
1. The current 8 stablecoins supported by ETH and 6 supported by BSC are carefully selected based on the record of safety level and trading volume. Even so, we have restrictions of the maximum proportion of the pool (redline in the basket) for each of them, ranging from 10% to 100%. Newly added stablecoins will have even more strict hard limits. The risk will be strictly controlled.
2. The yellow line in the basket represents the soft range for 1:1 swapping. There will be a slippage (according to the price of the token at this time) out of soft weight. So even if the price of a stablecoin suddenly dropped after an attack, the allowed range of 1:1 swap is also very limited, especially for newly added assets.
3. In addition to the current stablecoins, the newly added stablecoins need SMTY as collateral even after voting. Once the token is at risk, users suffering from loss will be compensated using their collateral.
Q1 from Gerardo Soto:
Could you really tell us a bit about your recent relationship with Matcha? Was it really necessary to implement this Dex aggregator in your stablecoin liquidity protocol? do they need more similar associations?
We integrated with many aggregators, not just Match, but also 1inch and openocean. People use aggregators to do a comparison in terms of swap slippage+ gas cost, and choose between different platforms. This kind of integration will help bring lots of traffic to Smoothy. As I explained before smoothy is low gas and low slippage. Lots of people know us when they try to make a swap and 1inch/match give them Smoothy as the best option
Q2 from Ivan:
You said that in order to enable users to provide liquidity, they can deposit any of the 8 stablecoins supported by your platform. How many pools can each user join, and what tokens can we get as a liquidity provider?
Again there is only one single pool
As an LP, you will receive swap fee + slippage (while applies) + interest from vault + SMTY +
Q3 from Sofía Isla:
Can you give us more information about your public sale of Smoothy on Ethereum and Binance Smart Chain from 04/22 to 04/27? Why have you chosen these two networks for the SMTY launch and how could we participate in this IDO?
I explained a little bit about this
Since Smoothy is on both BSC and ETH, we want to conduct public sale on both chains
Q4 from ᒍᑌᗩᑎ ᔕᗩᑎᗪOᐯᗩᒪ:
Currently within your platform you work with 8 assets or cryptos, so my question is simple, do you plan to integrate more assets in the future? and what is the function of each one of them within the platform?
Of course, we are capable of supporting 100+ stablecoins in one single pool
Smoothy is a is a new single pool liquidity protocol featuring over 20+ stablecoins, extremely low gas fee and zero slippage for maximum interest earning and LP rewards. Currently supports BSC and ETH, with many more to come in the next few months.
More information about Smoothy Finance: