Hello, Satoshi clubbers and guests of this site. Glade introduces to you Mercurity.finance is an open DeFi platform powered by swap. Reuse LP tokens across different protocols to maximize yield.
The AMA session was divided into 3 parts with total crypto reward pool is 500$.
Leading the AMA our clever and fun admins:
@madamlobster and @Cool_as_Ice
The Representative of the project:
👉@ErezSimha CFO and interim president of Mercurity
👉@LDA_Michael Michael Huynh, Community Growth Manager at Mercurity.Finance.
PART 1. INTRODUCTION of Mercurity.Finance PROJECT AND COMMUNITY QUESTIONS.
Mary | Satoshi Club:
Hello again, Satoshi Club! We are happy to announce our AMA session with Mercurity! Welcome to Satoshi Club😀
D| Satoshi Club: Hello Satoshi club!
Mary | Satoshi Club:
How are you, @Cool_as_Ice?)
D| Satoshi Club: Good, good. you? 😊
Mary | Satoshi Club:
Fine😉
Serg | Satoshi Club:
Hello Mercurity team 😀 We are here.
Erez Simha:
Good morning everyone and thank you for joining us today.
Mary | Satoshi Club:
Hello, Erez, happy to see you here👍
D| Satoshi Club:
@ErezSimha hello! Welcome to Satoshi club! 😊
Erez Simha:
Excited to be here today, with the Mercurity team.
Mary | Satoshi Club:
As you are first here, could you please introduce yourself 😀 and of course Mercurity project!
Erez Simha:
With pleasure. Hi everyone! I’m Erez, CFO and interim president of Mercurity.
I have spent the last 15 years in High-tech companies, public and private, small and large, – all of them operates in a hyper-growth environment, I was both COO and CFO, preparing those companies to meet next 3-5 market demand and challenges – so putting in place the right infrastructure that will allow scalable profitable growth. Let’s talk a little bit about Mercurity and Mercurity.Finance
Mary | Satoshi Club:
Sure👍
Erez Simha:
Mercurity is a public company, traded in Nasdaq under the ticker MFH, and has business directly related to blockchain technology.
Mercurity.Finance is an open DeFi platform, part of Mercurity. It is an Open Defi platform powered by swap. The most important problems we aim to solve are:
-low capital utilization
-impermanent loss risk
-poor community governance capabilities.
We’re starting with DeFi, aiming to provide the most open, flexible, autonomous, and comprehensive DeFi trading and liquidity services to retail consumers anywhere, anytime. But that’s just the beginning of our story… Essentially, we are providing the infrastructure for users to utilize features that are currently unexplored in the DeFi arena. We want to unlock and accelerate access to new financial value for anyone, anywhere and empower new financial values through unique implementations on Swaps, Lending, Impermanent Loss Insurance, Synthetics, and much more. WE aim to build the most global, unified, and diverse DeFi ecosystem by connecting the world’s best DEXs and DeFi communities across the globe. We are building a global solution next.
Mary | Satoshi Club:
Yes, I see that you want to solve a lot of problems 👍
D| Satoshi Club: Impressive beginning 👍
Mary | Satoshi Club:
When you plan your platform to go live?)
Erez Simha:
We are launching this Friday, November 6th. Swap will be live by then.
Mary | Satoshi Club:
Wow, it’s so close👍 How long did it take to build Mercurity?)
Erez Simha:
It is. we are super excited.
we are dealing with a different aspects of the business during the last 15 months. Defi project started early 2020
Mary | Satoshi Club:
You are one of the early DeFi birds😀 Thank you for this intro)
D| Satoshi Club:
DeFi pioneer😊
Mary | Satoshi Club:
We have a lot of questions from our community, are you ready for them?
Erez Simha:
Will do my best.to provide as useful as possible answers.
D| Satoshi Club: Let’s go🚀
Q1 from Telegram user @antonerem
All the protocols that should be the basis of Mercurity.finance are currently not available (coming soon). Does this mean that your platform can’t be really used at the moment and when can we expect it to be running?
Erez Simha:
On the 6th we will be enabling LP Staking. Then about a week after we will have LP Migration. other protocols will be launched shortly after the best way to stay tuned for their launch is in our announcements channel on telegram: https://t.me/MercurityAnnouncements
Mary | Satoshi Club:
When do you expect the full launch of Mercurity?
D| Satoshi Club: We will follow your updates! thank you👍
Erez Simha:
Most of it will be launched this year, with the rest coming early next year.
Mary | Satoshi Club:
Thank you. And the next question?😀
D| Satoshi Club: Let’s jump to the second question then?
Q2 from Telegram user @parisienne_a
You will have Impermanent Loss Insurance to let users lower their impermanent loss. How much will cost the insurance and how can someone apply to return the loss
Erez Simha:
We will announce all insurance economies, close to the launch date. When you become a liquidity provider, you can put the LP token in the insurance vault to reduce impermanent losses. Again we will announce the full protocol economy, close to launch.
Mary | Satoshi Club:
Got it, anything to add about Loss Insurance?)
Erez Simha:
No.
D| Satoshi Club:
Move onto next question then!
Q3 from Telegram user @balabas4bounty
The idea behind your project is that the liquidity is staked and sometimes there is no volume. As a result, the person who provided the liquidity gets no profit. Mercurity aims to provide various opportunities for LP to get profits. Please explain some
Erez Simha:
Mercurity will provide multiple protocols in which LP Tokens can be used to generate earnings. For example, LPs can “re-use” LP Tokens, for the second time, to earn underwriting income via the insurance protocol. Other protocols will include:
LP Token-pledge lending and LP Token synthetic assets. So LP could reuse assets and get multiple rev-share opportunities and multiple farming opportunities.
D| Satoshi Club: Does anyone in DeFi use this “re-use” protocol or it’s your innovation?
Erez Simha:
Other platforms do it also in a narrower way. .Our innovation is in the unique approach that allows us to push it as much as possible into the community hands, and give them more and wider access to various different protocols.
D| Satoshi Club: This is nice! 👍thank you for your answer! if we done with this question we can proceed to the next one?
Q4 from Telegram user @mag_crypto
Mercurity will use On-Chain Smart Order Routing to connect to liquidity pools and offer the best profits for the users. Is this procedure a making of your own or it’s borrowed from other projects? Is the code ready and audited?
Erez Simha:
First what is it actually – Mercurity encourages all users to create and independently manage their own liquidity pools, making liquidity pools be customizable and community autonomies . Liquidity is merged from various pools. Liquidity pools with the same trading pairs are connected by Mercurity through an on-chain smart order routing that automatically finds the best price across all pools on Mercurity . It was audited by Besoin .
Mary | Satoshi Club:
Btw, is that audit I saw on Beosin Medium? As i know audit reports looks a bit different
D| Satoshi Club: This is awesome that you passed audit! This fact can give you more trust from investors 💪
Erez Simha:
https://beosin.medium.com/beosin-has-completed-the-security-audit-service-of-mercurity-swap-of-defi-protocol-6f82afbdc6ba Cool_as_Ice many thanks for having me here today . Michael will take over from here. We are looking forward to having this journey together with you.
Michael Huynh:
Hello everyone, I’m Michael Huynh, Community Growth Manager at Mercurity.Finance. Nice to meet everyone!
Mary | Satoshi Club:
Hello, welcome to Satoshi Club 👍
D| Satoshi Club: Hello Michael! Welcome to Satoshi club! 😊
Michael Huynh:
Thank you! I’ll take over for the rest of the AMA questions.
Mary | Satoshi Club:
Great, so, Michael, will move to the next question?)
D| Satoshi Club: Awesome! we have 2 in this part and 15 in the second 😄
Michael Huynh:
Absolutely
D| Satoshi Club:
Q5 from Telegram user @nnakorn
The role of a general partner (GP) is very important in the ecosystem of the project, but I couldn’t find any information as to become one. Who can become a general partner and what’s the procedure for this?
Michael Huynh:
Excellent question @nnakorn.
Anyone can become a General Partner and set up their own individual liquidity pools.
GPs owners can be:
– Owners create and manage liquidity pools.
– There are also non-founder Owners, such as KOL.
– Owners can be individuals or a team.
The unique approach we have compared to Uniswap’s pools is that each liquidity pool has the option to become autonomous and have individual adjustments.
Through our Pair token implementation, each liquidity pool, liquidity providers create a sub-community, increasing autonomy for future upgrades, development, and maintenance of the liquidity pool.
This creates an ETF structure through autonomous governance at the individual level.
Mary | Satoshi Club:
And procedure?)
Michael Huynh:
When users are setting up the pools, they have the option to either join the general pools or create their own pool. The user can then set up their own requirements if they’d like.
Mary | Satoshi Club:
Got it. Do you have minimal requirements for joining the pool?
Michael Huynh:
It depends on the GPs and their rules, for example, if I create my own individual pool, and only want certain people to join, I can set requirements and much more.
In comparison to Uniswap, I think this should clear up some questions.
Mary | Satoshi Club:
Do users already voted for fee structure?
Michael Huynh:
Not quite on other DeFi Protocols, For example, if you’re using Uniswap, the fees are already adjusted by the platform and in order to change it, you will have to go through the UNI governance.
With Mercurity, users can adjust it in their own individual pools (Swap fee).
Through our implementation of the Pair token, users are able to vote on their own individual adjustments of their own liquidity pools.
In each liquidity pool, liquidity providers create a sub-community, increasing autonomy for future upgrades, development, and maintenance of the liquidity pool. Pair Token is 100% distributed to LP token holders for community governance, incentives, etc of that individual pool.
But in essence, there is no minimum requirement for individuals to create their own ETFs and is adjustable depending on the way they set up their pools.
Mary | Satoshi Club:
Thank you 😀 And the last question from this part?)
Michael Huynh:
Oh anyone can become a GP 😎
Mary | Satoshi Club:
Yes, sure, when you go live we can find this one) Or many of them👍
Michael Huynh:
We will be launching tomorrow and the pools will be crafted by the users. For example, once it’s live, users can set up their own pools or join existing ones.
Mary | Satoshi Club:
With any assets I want?
Michael Huynh:
With any assets you prefer. You can create ETH/USDC pools, join existing pools from other users. There currently are no restrictions.
Mary | Satoshi Club:
Amazing) So, this will go live tomorrow?
Michael Huynh:
The swap protocol will launch on 11/6. You can view it on our website: https://www.mercurity.finance/
Mary | Satoshi Club:
Ok, how many users approximately you’re expecting tomorrow?)
Michael Huynh:
I’m not sure about the actual numbers but time will tell 😊 Wish you as much as you wish in your craziest dreams)
Michael Huynh:
😂 Thank you Mary
Mary | Satoshi Club:
So, let’s shoot the last question from this part)
D| Satoshi Club:
Q6 from Telegram user @olivvc
You say that your project’s big DEX innovation is Pair Token. Could you tell us more exactly what will this token do and how is it innovative?
Michael Huynh:
Will do, On Mercurity Swap, Pair Token is the credential for governance for individual liquidity pools. In each liquidity pool, liquidity providers create a sub-community, increasing autonomy for future upgrades, development, and maintenance of the liquidity pool. Pair Token is an ERC-20 token that can be freely transferred and traded.
Total number available: 100 million per liquidity pool.
Name: “trading pair + X” e.g. ETHUSDTX.
Distribution ratio:
Pair Token is 100% distributed to LP token holders for community governance, incentives, etc.
This innovation provides users the flexibility to even trade their Pair tokens for other pair tokens as well!
Mary | Satoshi Club:
So, you will have two tokens, right?
Michael Huynh:
So let’s say a user is in the ETHUSDTX pool and wants to jump to the WBTCUSDTx pool,
Users can just exchange between them (if there is a market for it) without actually going through multiple steps and transactions with pulling out liquidity, swapping, then reapply liquidity to the pairing.
With Mercurity.Finance’s Swap protocol, there will be technically 3.
1: MEE which is the platform token for Mercurity Swap
2: LP tokens, Liquidity provider tokens
3: Pair tokens, Individual liquidity pool governance tokens
Mary | Satoshi Club:
Oh, do you have any articles which explain this?
Michael Huynh:
The pair token is optional if the liquidity pool owners want to allow individual governance on their liquidity pool or not.Yeah, we have the Swap Protocol whitepaper here: https://medium.com/mercurityfinance/mercurity-swap-protocol-13a1e393faf6
D. | Satoshi Club: Btw it’s very convenient! that means you don’t need to pay fees every time when you are pulling and adding liquidity?
Michael Huynh:
Exactly, instead of doing multiple steps, you can interchange your LP tokens for other LP tokens (if there is a market for it).
D. | Satoshi Club:
Great feature!
Mary | Satoshi Club:
I also like it👍 And now our user’s fingers are ready to fill this chat with their questions)
Michael Huynh:
Alright guys, bring in the questions 😎👍
PART 2.QUESTIONS for a CyberFi DeFi PROJECT from TELEGRAM COMMUNITY LIVE
In this part, we open a chat for the crypto community for 120 seconds. Then the guests from the crypto project choose the top 15 questions. These 15 crypto enthusiasts have earned cryptocurrency in the sum 250$.
Q – 1 from a telegram user @anh1973
I see, Mercurity.Finance will feature Swap, Lending, Synthetics, & Insurance. Which one will be the flagship product?
Justin Wu:
The swap will be our first flagship product that we are launching this weekend. As our development roadmap progresses will be launching the other protocols such as Lending, Synthetics, and Insurance.
For now, we are just 100% focused on launching the Swap protocol through our Liquidity Launch event. This will be the kickstart of our Defi protocol as we further develop the other suite of products for our users.
Q – 2 from a telegram user @AugusS7
Many DeFi protocols do not take into account the reuse of “LP” tokens, why does Mercurity Finance really give it a great value of importance? play a large role in the effectiveness of the protocol? or does it only generate higher rewards to users?
Michael Huynh:
To accurately answer this question, we have to take a step back and look at the general industry today.
Users are able to deposit into other protocols and receive LP tokens. The LP tokens represent a “receipt” of deposit that can be redeemed at a later date if they’d like and earn incentives for providing liquidity. That brings us to the question about Fund utilization rate.
The fund utilization rate measures the percentage of liquidity pool contributions that are utilized to earn a return. If TVL for a liquidity pool is $200mm, and $150mm in pair tokens have been staked to lend, then fund utilization = 75% (= $150mm / $200mm)
For example, when a bank absorbs 10 billion USD in deposits and provides 7 billion USD in loans, the fund utilization rate is 70%. The bank needs to pay interest on deposits for 10 billion, which is the bank’s cost, and the benefit is from the interest on 7 billion loan.
In order to earn returns, funds must be utilized. On Uniswap, transaction fees are generated only when liquidity pool funds are traded. If, on a given day, trading volume is 10% of TVL, then 90% of funds were not “utilized” and therefore did not contribute to earnings.
Mercurity Finance provides multiple opportunities to utilize funds via LP Pair Tokens. LPs are issued Pair Tokens equal to the liquidity provided. These tokens represent liquidity that is locked (i.e., secured) which can therefore be utilized to earn via:
pledged for loans (earn interest income) or insurance (earn premiums).
Banks are allowed to lend more money than they hold in deposits. Therefore it is common for banks to have utilization ratios far higher than 100%.
Q – 3 from a telegram user @alice_wonderland12
🌷What are the marketing strategies currently developed or planned for the growth and engagement of the community of Mercurity?
Justin Wu:
We are actively growing in the community. We are spending both time and resources to help spread the word to the DeFi & broader blockchain communities. These efforts will continually ramp up.
– Crypto Twitter
– Youtube
– Telegram AMAs
– Reddit
– Facebook Groups
& several new community programs coming soon.
We also have a separate APAC team that is building our Asia community doing the same, mirrored. This will help us get global reach.
Q – 4 from a telegram user @nzikak
Your number 21 point in your FAQ post on Medium says something about Swap Trade mining, that traders will be able to mine while trading. Please, how will this work?
Michael Huynh:
On other DeFi protocols, users aren’t able to earn tokens. In our Trade mining model, users are able to earn by simply using the platform.
“While traders on DEXs bear higher gas fees and potentially larger price slippages than on CEXs, platforms like Uniswap do not compensate traders.
Mercurity considers traders to a community as important as liquidity providers, and incentivizes traders so that they are mining when trade.”
Q – 5 from a telegram user @Pratze
So the swap protocol of Mercurity platform will launch tomorrow? Is there any reward at the first time it launches to attract users?
Michael Huynh:
Balancer liquidity pools distribute transaction fees based on liquidity providers’ actual contributions. However, Balancer overlooked liquidity pool creators, early-stage liquidity contributors, and non-financing community contributors who are not liquidity providers, such as community managers, marketers, and other industry influencers (aka key opinion leaders, or KOLs). Balancer’s model is like a fund with no General Partner, lacking incentives for non-financing contributors, and not conducive to using community resources.
Users can utilize the platform and from there become those early-stage liquidity contributors.
“Be your own GP”
Justin Wu: We have a dedicated APAC team that mirrors our team. They are growing the Asia community such as participating in other community AMAs like Binance’s
While Michael and I lead the western community & growth efforts.
Q – 6 from a telegram user @K2ice
MER will be Mercurity’s governance token which will be used to govern the entire protocol (swap, lend, synthetics, & insurance). What will MEE be used for and how soon will MEE be available?
Michael Huynh:
MER governs the entire protocol and more information will be released later on. As for MEE, the launch event will be November 6th as stated on our website.
Q – 7 from a telegram user @CryptoZaratustra
I read that your Swap protocol will allow up to 8 tokens to be included in liquidity pools. How will this work with more tokens? What are the tools for managing individual pools?
Michael Huynh:
If a user wants to diversify even further, they could create 2 individual pools, then link them together in a 3rd poolif they’d like through LP tokens to make an even bigger expansion on the protocol. Remember, this protocol is designed to empower what is currently available in DeFi and provide governance rights to liquidity providers through the implementation of the Pair token.
Q – 8 from a telegram user @jpsarmah
How much does the Mercurity Swap Trade Mining rewards Traders on your Swap and why do you consider Traders as important as Liquidity providers to your community?
Michael Huynh:
Similar to how the traditional world has supply and demand for every aspect of business.
If you have supply (liquidity providers) but no demand, you won’t be utilizing your assets for it’s potential.
Same on the other hand as well, if you have demand (traders) but no supply, then you will have high slippage and other issues.
In order to appreciate both sides of the spectrum, we have to ensure that both sides are able to be equally inclined to utilize each other.
Q – 9 from a telegram user @Magizt
I have tried to find any team member from the Mercurity.finance project but I can’t find it. can you tell me who the Mercurity.finance project team is?
Michael Huynh:
Mercurity.Finance is part of a publicly listed company called Mercurity Fintech Holding, INC which is publicly listed on the Nasdaq (under ticker MFH).
You can view the press release about Mercurity’s plans here: https://finance.yahoo.com/news/mercurity-announces-plan-open-defi-123000040.html
Q – 10 from a telegram user @Jonahapagu
You classified liquidity pool contributors as either a GP (General Partner) or an LP (Liquidity Provider)… Can you explain briefly about who makes up these two liquidity Pool groups and how they can partake in your autonomous governance for liquidity pools?
Justin Wu:
We are allowing users to create their own pools. As the owner of the pool, you are the main GP. You can also build a team of other general partners to help manage the pool.
Each team of GPs can organize governance capabilities such as setting transaction fees, pool access requirements, trading rules, and voting rights.
Users who participate in these pools are LPs. They will gain Pair-tokens (the pool’s governance token) that will help vote how the pool should be run.
This is also designed with growth in mind. Pools may want to invite Influencers/KOLs or business partners to participate as a GP in the pool. This will help spread the word about each pool as well as grow it.
Q – 11 from a telegram user @Chinthaka93
What is about your smart contracts? Has it been audited? If yes by whom it has been reviewed? Do your smart contracts have any issues after the audit? Please explain about this@LDA_Michael
Michael Huynh:
Our MEE smart contract has been audited by Beosin. There were minor problems but have all been adjusted and verified by Beosin to ensure that the audit passed. You can view more details about the criteria and audit report here: https://t.me/MercurityAnnouncements/13
Q – 12 from a telegram user @melanintrish
Is a General Partner considered a Liquidity Provider on Mercurity?
Michael Huynh:
A general partner, GP, can be anyone.
Let’s say, for example, Let’s say you’re an industry influencer with thousands of followers. You can create a pool and set up requirements for your members who are joining and want to bring on your business partner as a GP. Owners can also be individuals or teams and create a sub-community of users who interact with their pool.
You don’t have to be a liquidity provider to become a general partner as the Pair token can be utilized to provide governance of your pool.
Q – 13 from a telegram user @Temptation_Provider
If Uniswap will endow its liquidity pools with autonomy, set fee rates. Will Mercurity’s services be in demand?
Michael Huynh:
In Uniswaps example, the entire protocol will have to vote on the governance of adding additional features. Even if they decide to implement it, we are also still competitive due to the nature of our reuse of LP’s across multiple protocols such as Lending, Insurance, & Synthetics. We’re tackling the issue of providing users more flexibility with their assets through decentralized finance.
Q – 14 from a telegram user @apocan99
What are the advantages that Mercury Swap provides over others? Which problems of existing swaps will it solve?
Michael Huynh:
Here is a comparison chart breakdown on how Mercurity will function over Uniswap as an example.
Uniswap is an ETF. Mercurity allows the creation of ETFs. We allow users to be their own GP and pool. Set your own fees, governance, and pool access requirements.
This is just for the initial launch. As we open our Defi matrix & suite of products, each product is designed to provide a unique value-add to the Mercurity ecosystem & DeFi community overall.
I.e. Insurance, Synthetics, Lending, etc.
Q – 15 from a telegram user @OlegDubinskiy
What are LP Pair tokens? Can I sell or transfer them? Am I correct in your understanding that you are creating a new market for synthetic assets backed by liquidity?
Michael Huynh:
LP tokens are “receipts of deposit” from liquidity providers, Pair tokens are governance tokens in the individual liquidity pools.
Users should be able to utilize their LP tokens in any way they deem fit.
For example, banks in the traditional system provide savings accounts. Users deposit liquidity into it to receive an incentive for providing funds in a savings account.
The bank is then able to utilize that for funds in their ecosystem of loans out to other users who are looking to buy a house, car, etc…
After a bank signs a loan with a user, they receive a contract. “User A is to pay X in order to complete the loan through a fixed amount of time”
That contract can then be sold/traded on the third-party network to reduce a bank’s risk portfolio on debt.
If user A defaults on the loan, the contract owner has the right to receive the asset (i.e, cars, houses, etc..)
So essentially, LP tokens are receipts of deposits that are coded to provide a recipient the honor of deposits in the account.
As for Synthetics, stay tuned for our official announcement and join our telegram for updates on when it’s live.
Part 3 – Quiz about DeFi project Mercurity.Finance
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about the crypto project. A link to a Quiz form was sent into the chat. Participants had 10 minutes to answer. 1000$ was distributed between the winners.
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