WePiggy Free Talk Session #1 Recap
1. What’s happening in Shanghai Blockchain Week
1) Although the event keep a low profile under China’s current policies, but the event site is still very lively
2) What we get from participating: Communication with developers, project parties, and capital parties
3) More traditional Internet developers enter the blockchain industry
In the last bull market, everyone used Internet thinking to do blockchain projects; in this round of bull market, everyone used blockchain thinking to do Internet projects
4) Investment in high-quality projects: The threshold for individual participation in the primary market is getting higher and higher, and the advantages of influential institutions or branded projects are increasing
5) WePiggy rarely promotes cooperation with capital parties. We insist on establishing cooperative relationships with real industry builders to exchange more resources
6) Chainlink gives WePiggy great support, and there will be more cooperation in the future
2. Review of DeFi Security Incidents
1) The purpose of WePiggy: to make meaningful innovations
2) Cream was stolen, Aave took emergency measures
The reason why Cream was stolen: yUSD is the vault of yCRV and has a certain exchange rate. Hackers borrow DAI through flash loans and mint a lot of yCRV, then deposit yCRV into the contract to manipulate the exchange rate. Eventually the exchange rate doubled, the value of the pledge also doubled, and the entire pool was lent out
Reflection:
a. Risk control for such tokens: introducing the “Deposit Cap” parameter in the lending market (WePiggy is the first protocol to introduce this parameter, see xLON/dQUICK)
b. The lending market of LP Token is mixed with other markets. If it meets the conditions of flash loan and there is no control of the “Deposit Cap”, the risk will be greater and caution is required
3) Rari was attacked
Reason for being attacked: Price deviation caused by hackers manipulating Uniswap’s liquidity pool
Reflection:
a. The governance and risk assessment of lending protocols are very important
b. The lending protocols are comprehensive and has great requirements for risk control, which requires evaluation and selection from all aspects
c. In the early stage, the contract is deployed under the chain after voting on the chain for governance, and the contract is directly executed after the voting on the chain in the later stage
4) BXH and ANKH events
Reason: The private key of smart contract for funds is not kept properly (Personal control, no multi-signature)
Reflection:
a. Real-name team to eliminate moral hazard (WePiggy development team, founder, operation team trinity)
b. All WePiggy contracts use multi-signature and a risk control team has been set up
5) Risk of yield aggregator
Almost all yield aggregators have had problems (except YFII vault pool), so be careful to participate in vault pools mining. If you find that A vault pool transfers deposits to B vault pool, it is recommended not to participate
In this regard, the code of the WePiggy lending protocol restricts the project partys access to the user’s funds, only the user can sign the operation.
6) Summary
a. Need to pay attention to the risk control standards and parameter configuration of the lending protocol
b. To participate in a new project, you can request the contract address to check whether it is a multi-signature or a private address
c. Diversify risks and don’t put all your funds in one place
3. Replys to the question
Q1. What are the advantages of WePiggy Lending protocol compared to other protocols? How can it stand out?
Robust style
1. Take safety and reliability as the first priority
2. Expand the user base in the process of multi-chain deployment, stable service and output, slowly accumulate brand value, traffic value and real protocol users
Continuous improvement
1. Insist on version iteration and product updates
2. Develop useful new features
Persist in ecological construction
In the initial stage, WePiggy focused on cooperation with Chinese projects to gain real traffic and reputation;
At this stage, WePiggy focused on overseas cooperation and has achieved a lot of results
Q2. Which chains does Piggy plan to deploy next?
WePiggy has received invitations from many public chains and received grant support. At present, we have been invited to be launched on at least 5 public chains, which will be announced in the follow-up. (Disclosure: WePiggy is the only lending protocol that some chains currently invite to be deployed)
Q3. WePiggy is about to celebrate its first anniversary. The industry has been developing rapidly for so long, According to the development and updates of the industry, what are the new changes in the team’s planning and thinking about WePiggy compared with half a year or even a year ago?
First of all, WePiggy has the same original intention to do the most valuable project in the industry.
Thinking: There are not too many technical barriers in the industry, but brands and communities are difficult to replicate. Especially in China, the threshold will be higher and higher due to policy reasons. Thanks to all users for their support over the past year, let us accumulate the brand prove ourselves by time.
Q4. WePiggy is about to celebrate its first anniversary. In the development of WePiggy so far, which areas have not met the team’s expectations, and which areas have exceeded the team’s expectations?
Areas that did not meet expectations:
Due to the adaptation of different public chains and excessive overtime work is not advocated, the development progress has not reached expectations.
Areas have exceeded the team’s expectations:
1. We originally thought that the TVL data would be low due to unissued token, but the result is very good. More than 10,000 addresses are actually using our lending protocol.
2. The international expansion is progressing smoothly than expected, and our Discord community has completed the initial construction.
Q5. Finance has always been a highly regulated industry. Most of WePiggy team should be based in China. To deal with the regulatory and compliance issues of various countries, does WePiggy have enough plans?
1. In fact, the current regulation of the entire cryptocurrency industry lags behind the actual industry development. Now under Chinese policy, it is not easy to seek compliance, but I believe that if one day the country re-recognizes the value of blockchain, we may have unexpected gains.
2. After the epidemic is over, we will consider developing overseas and establishing overseas offices; we will operate in the form of DAO and will not do more promotion and marketing in China.
3. In extreme cases, multi-signing in different places can ensure the safety of everyone’s funds. Even if the front-end is inaccessible, the funds can be withdrawn through the blockchain browser. The subsequent front-end and back-end will be deployed on the chain, unless the chain itself is hung up, otherwise it will not Will affect everyone’s financial security.
4. Don’t step on the red line, don’t practice currency business.
5. Personal expectation: The follow-up Chinese policy will hardly have a big impact, but the US “94” will have a big impact. Related projects in the United States will be subject to more control and there are potential risks.
Q6. The WePiggy team is currently using its own funds to develop. According to the profit that only collects the interest difference at present, it should not be able to support the subsequent project expenditures. What are the future profit points of the project? What are the plans?
1. Sufficient fund reserves
Projects have equity financing: Investors value the long-term accumulated experience and strength of the team and do long-termism
2. Team operating cost is not high
The team development cost is not high, the staff is streamlined, the internal consumption is low, and the future can be expected
3. More value-added services will be launched based on the lending protocol
4. In the continuous accumulation, we have obtained more recognition and first-level investment opportunities, and will recommend the opportunities to long-term users in the community at the right moment
