WePiggy X 12N AMA Recap
On Nov 29th, 2021, an AMA session was broadcasted live on 12N community.
Firstly, we go though many questions from the host.
And then, so many interesting questions from the community about WePiggy’s development plan, vision and the future of the DeFi ecosystem. Thank you so much for supporting our AMA. Now let us enjoy the recap!
Part 1. Questions from the host
Q1: Could you please tell us a little about yourself and WePiggy?
Victor: Hello everyone, I’m Victor, Co-founder of WePiggy lending protocol.
I officially participated in Crypto in 2017, for some ICO investments.
Before WePiggy, as a member of our team, we have developed many different crypto applications, like CEX, centralized and decentralized wallets, and Dapps.
WePiggy is an open-source, non-custodial, crypto-asset lending market protocol. In WePiggy’s market, users can deposit their crypto assets to earn interest, or borrow other crypto assets by paying interest.
We have launched on Etherum mainnet since this year January 18, and now WePiggy has been deployed on Etheruem, OKExChain, BSC, Polygon, Heco Arbitrum and Optimism totally 7 networks, our TVL is around 100M recently, borrowing volume around 40 million.
Q2: What makes WePiggy special compared to all other decentralized lending protocols that are around?
Victor: First of all, safety is our first priority.
This is different from many DeFi projects. Test in Prod is more popular, which refers to the concept of testing in a production environment, and most of them are anonymous development teams. All along, there have been many security incidents in DeFi projects, causing users to lose a lot of money. Users lose a lot of money due to DeFi security incidents all the time.
We always put the security of users’ assets in the first place, and our entire set of smart contracts will be audited by a professional auditing company before going online. As long as we modify the smart contract involving the security of user funds, a third-party security audit will be conducted. So far, we have passed 4 audits in total.
The fact has proven that: We have been in operation for one year without any safety accidents. WePiggy did not cause any trouble to our users, security companies or partners.
Secondly, we have paid great attention to governance since the first day we went online.
Designed a scientific governance framework, set down the values of the community, governance processes, governance interaction nodes, and the corresponding basic principles of governance, in the earliest stage of WePiggy.
By laying a good foundation, the follow-up governance work can be justified and has a soul.
Thirdly, WePiggy is a protocol dedicated to cross-chain lending and providing users with a full range of services.
In addition to the Ethereum mainnet, WePiggy has successfully launched on OEC, BSC, Polygon, Heco, Arbitrum and Optimism mainnet. In this process, WePiggy expands its user base with stable services and output, so as to slowly accumulate brand value and users who really use lending protocol.
Q3: It’s been one year since the launch of WePiggy. What are the major milestones WePiggy has achieved in the industry so far?
Victor: In the past year, together with WePiggy community members, we have got a lot of achievements:
1. Multi-chain deployment
Firstly, as I mentioned, we have launched on Ethereum mainnet on January 18, 2021, and now WePiggy has been deployed on Etheruem, OEC, BSC, Polygon, Heco, Arbitrum and Optimism, totally 7 networks, TVL has reached a maximum of 300 million U.S. dollars.
In addition, 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, all of which are first launches. We will announce them one by one according to the schedule.
In this year, WePiggy’s TVL reached up to 300 million U.S. dollars, providing on-chain lending services for more than 12,000 users around the world, listing a total of 77 crypto assets and providing lending services to almost all mainstream assets in different public chains and layer2 networks.
These assets have passed strict risk assessment, set risk control parameters, and passed community discussions and official governance voting.
All the above were achieved under the premise that WPC is not open for claim.
2. Product updates
In addition to the results achieved by multi-chain deployment, we have always insisted on upgrading products to bring users a better UX.
We optimized many of the codes in Compound, and solved some technical problems originally proposed by leading audit companies such as Trail of Bits for Compound.
We have also improved more than 100 interactive experiences of the protocol, added many new functional modules, including asset details, history, liquidation warning functions, and NFT collection gallery function.
On average, a new version is updated every week. A total of 52 versions have been updated so far, for the best UX.
3. Ecosystem building
WePiggy initially focused on cooperation with domestic projects and gained the support of almost all domestic head projects.
At this stage, we are focusing on international cooperation. The current international expansion is progressing smoothly than expected. WePiggy-Discord has completed the initial construction and is already the most active Discord among Chinese background projects.
On the premise of ensuring the security of user assets, more than 100 famous projects in the blockchain industry have established in-depth or strategic partnerships with WePiggy or achieved product-level integration, including mainstream media, software or hardware wallets, data analysis platforms, DeFi applications and multiple public chain development teams or foundations.
From the initial questioning and cautious evaluation of the cooperation with WePiggy by international projects, to now even the emerging layer2 network is willing to open the whitelist to us as soon as possible, to the recent active invitations and grants from multiple public chain foundations. WePiggy has earned the respect of the international market with its honesty and professionalism.
4. Scientific Governance
We have also achieved unexpected gains in community governance. Data from all the proposals show that our user’s governance participation is better than many excellent DeFi projects.
Since the establishment of the WePiggy community on October 27, 2020, community members have written a total of 383 risk control frameworks and related product usage documents with a total of more than 30,000 words, completed 352 community daily reports, and proposed 28 governance proposals. A total of 667 user addresses holding more than 12.94% of the total WPC have participated in on-chain governance.
WePiggy community volunteers have been doing various tasks such as poster design, social media operations, copywriting translation, and answering questions during product use for a long time, without receiving any payment.
During the year, the WePiggy core development team borne all development and operation costs on its own, and did not spend any marketing-related costs.
In the past few days, we have posted WIP27, WIP28, WIP29, involving “Airdrop Pool Token Allocation Plan”, “Upgrade WPC Smart Contract to Realize WPC Token Split of 1000x, Support WPC One-Click Claim on Ethereum, and Reduce WPC Distribution Speed” and “Liquidity Mining Program V2”. These proposals have been actively participated in and discussed by community users. Some proposals have more than 500 user addresses participating in the voting, which is unimaginable in other DeFi projects.
（WIP27：https://gov.wepiggy.com/t/topic/836）
（WIP28：https://gov.wepiggy.com/t/topic/1025）
（WIP29：https://gov.wepiggy.com/t/topic/1076）
Q4: I also paid attention to the recent WIP 27, which really made the entire community very excited. Can you introduce the “Airdrop Pool Token Allocation Plan” for us?
Victor: No problem, WIP27 opened for discussion on November 15th, and received 134 responses from the community in just two days. Some users even made charts in the comment area and elaborated on improvements. We were really flattered.
Our airdrop will be divided into two main parts, namely the active user airdrop and the crypto community airdrop.
The first part of the “Active User Airdrop” includes:
User basic airdrop;
Gas refund airdrop;
Governance voting airdrop;
NFT holder airdrop;
The above are all determined based on the on-chain behavior data of various early users. The snapshot has now ended.
The second part of the “Crypto community airdrop” is mainly to thank the crypto communities that support the development of WePiggy.
Which includes:
The source of part of the WePiggy protocol code: active users of Compound in the past 3 months;
Actively support to WePiggy’s liquidity building: active users of some DEXs and CEXs;
Crypto communities that actively promote the WePiggy protocol: e.g. AMA event rewards, etc.
The core development team expects that, through this airdrop, on the one hand, it will reward early users of the WePiggy community and respond to their sense of belonging and honor. On the other hand, it pays tribute to well-known crypto projects and rewards their active users. At the same time, this will also bring much larger token holder addresses and broader influence to WePiggy.
Q5：Why you suggest WPC Token Split of 1000x?
Victor: This is a proposal made by the core development team after careful consideration.
Some community members with extensive investment experience have privately suggested the split of WPC for a long time.
The total amount of Bitcoin is only 21 million, and the total amount of WPC is less than that of Bitcoin, which will cause unnecessary difficulties and obstacles in the growth space. This is also why the Polkadot community initiated a split before releasing DOT transfers.
The advantages of this split are:
1 . Lower the psychological barriers for new users to hold and use WPC, and help attract a wider range of users to join the WePiggy community;
2 . Bring greater convenience to the core development team and community volunteers in the application and promotion of the WePiggy protocol;
3 . Since WPC is not yet open for claim, the technical change of splitting adopted at this moment will have minimal impact on community members and various partners, and will not cause any historical problems.
For tokens that are less than the total amount of BTC, it will be split sooner or later, so we execute it as soon as possible to avoid subsequent failures.
Tokens like YFI hope to split 10000x, but exchanges generally do not support splitting. In addition, members of the BTC community have been calling for the splitting of BTC to lower the psychological threshold of investors.
Q6: After the new liquidity mining scheme V2 is passed, what impact will it have?
Victor: The first is to unify the liquidity mining mechanism of all networks, which greatly improves the usability of WePiggy in the current high GAS environment of Ethereum, reduce the cost of user participation in the mining and release the composability of pToken.
The second is to allow WPC rewards to be more reasonably distributed to each network according to the proportion of the contribution of each network’s deposit market size. Regarding the main source of income of the protocol, WPC mining incentives will be more concentrated in the stablecoin markets with high capital utilization efficiency, which can greatly improve the overall capital utilization efficiency and mining incentive effect of the protocol.
Finally, we believe that with the 70% reduction in WPC distribution, it is more important to periodically adjust the parameters of the liquidity mining mechanism on each chain, so that the WPC allocated to each chain can more efficiently and accurately incentivize deposit and borrowing users. The core development team has therefore requested authorization from the community to regularly adjust the parameters in accordance with the rules set out in the proposal.
It is worth clarifying that our WPC production reduction actually lengthens the mining period and the total amount of WPC does not change. This gives us a more sustainable payout advantage over our competitors. Because we are doing a long-term project, we have a greater advantage as long as our WPC distribution rewards lasts longer than other lending protocols.
Q7:Asset security is very important. What are WePiggy’s security considerations?
Victor: First of all, all WePiggy smart contracts have been audited by professional security companies.
Secondly, we have a “Bug Bounty Program”, which is a reward measure that WePiggy makes for protocol security. WePiggy provides considerable rewards for discoveries that can prevent asset loss, asset freezing, or harm to users. For details, please click on the link to view: https://www.yuque.com/zgryhn/fg3t76/rt08c9
In addition, WePiggy’s core development team has launched an enhanced security solution — [Ark Operation], to deal with various extreme scenarios：
In one word, safety is always our first priority.
Q8: What will the future of WePiggy in the decentralized finance revolution look like? Can you talk to us about your roadmap?
Victor: WePiggy’s Roadmap can be roughly divided into 4 stages:
1. General Bank
2. Cross-chain branch
3. Private bank
4. Investment bank
At present, we focus on the Cross-chain branch stage. After the WPC is open for claim, the core development team will continue to focus on the expansion and iteration of the lending protocol and strengthen the business.
We plan to start building and incubating more lending protocols with technology stacks such as Rust, and enter Solana, Polkadot and Ethereum 2.0.
The anti-vulnerability of the protocol is something we have been hoping to improve. We will promote WePiggy to move towards a Serverless and Web3-based protocol and bring in the form of DAO to deal with various extreme situations. This includes a number of improvements such as decentralized domain names, storage, oracles, APIs, notifications, and fully on-chain governance.
After the cross-chain infrastructure has matured, WePiggy will evolve from a multi-chain-deployed lending protocol to a cross-chain interoperable lending network.
Part2. Questions from the Community
Q1: Marketing is a core element of every project, what is Wepiggy’s strategy for attracting new users and investors and retaining them in the long term?
Victor: Yes, although WePiggy’s primary focus is on security, marketing is also important.
As I mentioned above, we are really working with a lot of domestic and international projects and pouring marketing resources into each other, which you can get a lot of information about from our announcements.
We entered the market in the early stages by working with the YFII community, and then cooperated with many famous wallets, media, and infrastructure parties. Moving into the multi-chain deployment stage, mostly we directly communicate with the public chain teams, to get the most out of the marketing resources that they can provide.
However, it must be said that as we delay WPC token releasing plan, there are some constraints at the operational level, but I think it is worth it. After all, by doing so, we have less resistance from within the community, making it easier for us to enter more other networks, steadily but surely achieve brand promotion and expansion of our user base.
In the future, we will continue our plan of “encircling the city from the countryside” with multiple chains, but we will be better able to attract funds after the coin offering.
We will continue to implement our “encircling the city from the countryside” multi-chain deployment strategy in the future, but will be better able to attract funding once our WPC tokens are unlocked.
Q2:The design of the price prediction machine is very important for the DeFi lending protocol, what are your considerations in this regard?
Victor: We have a good relationship with Chainlink, the leading oracle network, to promote each other, meet regularly and work with each other. In general, we prefer Chainlink’s price feeds, of course, we will also use other oracle networks on some chains which are not yet been supported by Chainlink.
In addition to the price feeds provided by third parties, we also have our own oracle and have an pre-warning system where both sides compare each other to avoid single points of failure, especially, downtime, out of gas, etc.
Q3:Piggy is a good NFT image, very cute, very suitable for meme, I noticed that you have NFT Gallery as well. So, do you have any plan to develop a product combined both NFT and DeFi in the future? Or even GameFi, which is very easy to boost user activity, for example, a simple pet-raising simulation games,I think the image of piggy is very suitable.
Victor: Actually, as I’m a half product manager, well, who is not :) I really have a lot of ideas for this stuff, but, ultimately, NFT is still the icing on the cake, and our focus is on liquidity building & management, marketing, DeFi strategic layout, and product development,etc.
If the right opportunity arises in the future, we’ll do some gadgets, or I’ll buttress a team to do something like ghost, I have more interesting ideas, but am just too busy to estimate these areas again.
If there is a suitable opportunity in the future, we will make some small games, or I will support a team to make products like ghost. I have more interesting ideas, but I am too busy to take care of these places. .
By the way, speaking of NFT, we have our own crypto designer, I personally think our issued NFTs are quite interesting:)
Q4: Who are the investment institutions of WePiggy?
Victor: WePiggy is not backed by any investment institutions at the moment, we have been using our own funds to maintain our operation.
We are not very short of money, even if we don’t make a dime in 3–5 years, we can still sustain.
However, in our tokenomics, there are two parts: the community and the foundation. The foundation part has a business development share, which is used to exchange marketing resources, meaning that if there are investment institutions that can provide enough resources, we can provide some investment shares to them.
Q5: Does the investment bank in your roadmap mean something like a decentralized funding platform?
Victor: The final shape of this is not yet decided, I personally think it can be decentralized or centralized similar to CoinList, but better it should be semi-decentralized.
That all depends, it’s not something we are going to implement immediately now.
Part3. For Further Communication
Before closing, I think many people in the community want to join WePiggy and keep up to date with the latest developments.
What is the best way to keep in touch?
For more news, you guys are welcome to join our community, here are the links:
Twitter: https://twitter.com/wepiggydotcom
Medium: https://wepiggy-com.medium.com/
Discord: https://discord.gg/wepiggy
Telegram (EN): https://t.me/wepiggy
Telegram (CN): https://t.me/wepiggycn
Knowlege base: https://www.yuque.com/zgryhn
WeChat: wepiggy
