Hello, Satoshi clubbers Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from Tower Finance and our guest was . The AMA took place on the 8th of February
The AMA session was divided into 3 parts with a total crypto reward pool of $500
In this AMA Recap, we will try to summarise the most interesting points for you.
Part 1 — introduction and questions from the Telegram&WebSite
Mary | Satoshi Club
Hello Satoshi Club! We are happy to announce our AMA session with Tower Finance! Welcome to Satoshi Club
D. | Satoshi Club
our guest today – @tokyo48 !
Mary | Satoshi Club
Welcome to the Club
Tokyo
Hi everyone! thank you for having me.
Mary | Satoshi Club
How are you today?
D. | Satoshi Club
good to have you here!
Tokyo
I’m doing great! Didn’t expect this much people Satoshi CluB
Mary | Satoshi Club
Ahaha, yes, we have a big, but friendly community
Mary | Satoshi Club
So, let’s start our AMA
@tokyo48 could you please introduce yourself and tell us more about Tower Finance
Tokyo
Hi, my name is Tokyo and I’m the Director of Tower Finance. I’m in charge of designing the overall structure of Tower Finance.
Mary | Satoshi Club
What is Tower Finance and it’s main goals?
Tokyo
Tower Finance is an algorithmic stablecoin project that integrates DeFi 2.0, built on Polygon network. It aims to solve the problem of what is known as the stablecoin trilemma
Mary | Satoshi Club
Could you please explain us what is stablecoin trilemma? Our users can be not familiar with it
Tokyo
Sure, the stablecoin trilemma refers to
– decentralizion
– capital efficiency
– stability
There are many stablecoins out there but they all have pros and cons.Stablecoins such as USDT or USDC has centralization issues
Mary | Satoshi Club
True
Tokyo
Stablecoins like DAI has to be overcollateralized, therefore it’s less capital efficient, especially for those of you who are seeking better yield generating opportunities.
Others that are purely algorithmic, such as Basis Cash, Empty Set Dollar has failed to stabilize its peg (to the dollar).
Mary | Satoshi Club
100% agree
Mary | Satoshi Club
It’s a real headache
Who are helping Tower Finance to solve all problems? Can you tell us more about your team?
Tokyo
Definitely Mary. So three big problems… and solutions with pros and cons.
Tokyo
Yes! I’d love to. And thanks for asking
Our team consists of crypto native people, defi degens with many years of experience in the crypto field. I’ve personally been around since 2015 and was lucky to watch the astronomic growth of the crypto industry.
Also, a few from the largest gaming companies and traditional finance.
Mary | Satoshi Club
Me as well, magic years
Tokyo
Light years too !
Mary | Satoshi Club
Are you all public or anonymous?
Tokyo
Our team is pseudonymous because we are strong believers of privacy and digital identities as a defense of individual freedom.
Mary | Satoshi Club
I see, true crypto believers
@tokyo48 thank you for your intro! We choose 6 questions from our community for the first part of our AMA and i want to ask if you’re ready to answer them?
Tokyo
absolutely. Happy to answer those questions.
Mary | Satoshi Club
Let’s go
D. | Satoshi Club
Q1 from Telegram user @Jodasf1
I read that Tower Finance has designed a stablecoin called TWR, which is a fractional algorithm to solve the capital efficiency problem that existing stablecoins suffer from. But, could you explain to us here in a quick and simple way why you are so sure that with the design of TWR you will be able to improve the capital efficiency of existing stablecoins, share with us how the system you have designed will work and how it solves the above mentioned problem?
Mary | Satoshi Club
Partially answered
Tokyo
That’s right.
Tokyo
We’re offereing another option/solution for users who want better capital efficiency, that is backed by partial collateral, and reinforced with a sound business model that generates protocol revenue.
Mary | Satoshi Club
Is it possible to block TWR? As it can be done with USDT or USDC?
Tokyo
Seems there are many people who are interested in stablecoin project
D. | Satoshi Club
As i know there is many stablecoins on the market, except dai, usdt, usdc, busd we can say ust is the also a popular one, what your thoughts on this stable? ust is kinda different of those four
Mary | Satoshi Club
Ahaha, bull market gave us some profits
Tokyo
Great question Mary. We’re not a centralized 100% collateralized stablecoin like USDT or USDC. So we don’t have those issues.
Mary | Satoshi Club
There were a lot if rumours about it lately, but i hope it will be ok)
Tokyo
Tower will be censorship resistant so long as the Ethereum network lives on.
Mary | Satoshi Club
Awesome! Happy to hear!
Mary | Satoshi Club
A lot of people don’t see this as a problem
Tokyo
UST is similar to our model with a 0% TCR. There are risks that are difficult to evaluate at this stage.
Tokyo
But we need to be aware that if there is a case where there is a high demand for Redeem…. it can put enormous pressure on the stability of the system
D. | Satoshi Club
got it! appreciate for answer
Mary | Satoshi Club
Thank you for your answers! Ready to proceed?
Tokyo
sure! pls do
D. | Satoshi Club
Q2 from Telegram User @sunny_steel
Opposite to TWR token, the CUBE Token (CUBE) is a non-stable, utility token in the protocol. While meant to be volatile, it holds rights to governance and all utility of the system. You also say that you take a highly governance-minimized approach to designing trustless money. Please specify the usecases of Cube token. If it serves to be a governance token, please share some details about Tower Finance Governance model. What are the features making your DAO special? Thanks!
Tokyo
First of all, CUBE is required to mint TWR
Tokyo
btw, thanks so much for diving into our docs
Tokyo
As the Tower ecosystem/demand expands, CUBE is designed to capture the value of its grwoth via….
More use cases, voting rights, distribution of rewards from protocol revenue by staking (xCUBE)
More use cases will be made available via governance
Mary | Satoshi Club
When your governance will go live?
Tokyo
Prior to activating governance, CUBE should be sufficiently distributed
We estimate that to be at least 1 or 2 months
D. | Satoshi Club
so total supply of CUBE will be reduce by time? because CUBE essential for minting TWR? do you stick to some burning mechanism?
Tokyo
Yes its deflationary(likely)
when TWR is minted it requires some CUBE depending on the TCR (Target Collateralized Ratio)
Also, CUBE can be burned via Profit Manager
So there’s some good upside pressure
Mary | Satoshi Club
Nice model! How CUBE will be distributed?
Tokyo
70% will be allocated to farming, 30% team + treasury
Mary | Satoshi Club
Gotcha .Thank you for your answers! Ready to jump to the next question?
Tokyo
sure thing!
D. | Satoshi Club
Q3 from Telegram user @Ecmq10
Hello Tower Finance team. You on your website emphasized in your FAQ section that you haven’t received any official investment yet. You mentioned that you only have strategic partners who will provide small liquidity of CUBE at the early stage. Currently, is there any new update regarding this? Haven’t you received any official investor yet? Do you consider that a disadvantage for Tower Finance? How many strategic partners do you currently have? Thank you!
Tokyo
We have no official investments and we never planned on raising VC money for an algorithmic stablecoin that is governed by the community
However, there is a strategic partner who will provide small liquidity of CUBE
Mary | Satoshi Club
Very honest position
Mary | Satoshi Club
Can you name this partner?
Tokyo
We do not consider it as a disadvantage … there are some downsides but if you believe in decentralized finance, this is the way to go. We will consider however, raising at a later stage for ecosystem expansion.
Tokyo
I can’t disclose names for confidentiality reasons but they’re partners that add value to the protocol
Mary | Satoshi Club
Understand
Mary | Satoshi Club
Thank you for your answers! Ready for the next question?
Tokyo
Yup yup
Tokyo
let’s go!
D. | Satoshi Club
Q4 from Telegram user @Antoni_azx
I read that liquidity farming starts on Feb 14 this year and will last for about 6 years, so could you tell us the benefits of users from the beginning to the end of these 6 years? Is it really worth staying that long? How will you protect user assets so that they increase in value over time? Also, could you tell us if anyone can participate from day one?
Tokyo
Economics is a tough issue in crypto…
Like any project we cannot guarantee price action in the future
But we designed it so that revenue is sustainably generated by Profit Manager
Anybody can participate from day one
Mary | Satoshi Club
Where we will be able to farm?
D. | Satoshi Club
yes, which platforms (maybe DEXs) you have choose for the start of farming? can you share that info?
Tokyo
users will be able to farm from our website. Its not open yet but will be announced via DIscord, Twitter and Medium.
Mary | Satoshi Club
We will follow your updates
Mary | Satoshi Club
Btw, you can share your social media links here
Tokyo
We’ll be using Firebird
Tokyo
That’s because they are offering favorable fee rate. (means that we are gonna use the LP from Firebird)
Tokyo
Website: https://towerfinance.io
Twitter: https://twitter.com/tower_finance
Medium: https://medium.com/@tower_finance
Discord: https://discord.gg/btnkn42S4E
Github: https://github.com/towerfinance
Mary | Satoshi Club
Thank you for sharing! Satoshiclubbers, join here, so you won’t miss any news
Mary | Satoshi Club
Thank you for your answers @tokyo48 ! Ready for the next question?
Tokyo
certainly
D. | Satoshi Club
let’s gooo
D. | Satoshi Club
Q5 from Telegram User @Right_clicK1
Going through the website, I saw how it was plan on how TWR token’s price will be stabilized since it is a stablecoin pegged to another. There is arbitrage opportunity for users to effectively perform alot of tradings, also you mentioned ‘TWAP period of time’ among the mechanisms which is divided into different cases of calculations like Normal case; Abnormal case; Very abnormal case 1; and Very abnormal case 2, there are alot of calculations under each of this cases, can you briefly explain how users will make use of these cases without confusion? How exactly can this serve as supportive tool for TWR token stability?
Tokyo
this is a very technical question,but let me explain in the simplest way I can
during abnormal cases, the gap between the actual vs. twap price of cube can increase.
This gap can interrupt arbitrage and has a risk of destabilizing the system.
So we decided to use a shorter twap period to prevent this kind of accident from happening
Tokyo
Does this answer your question?
D. | Satoshi Club
okay, so all these will be more helpful for traders? or who could be benefit from these features?
Tokyo
yes it is to help arbitrageurs get a more accurate price feed and encourage arb.
Mary | Satoshi Club
What can you tell us about Tower Finance security? Are there any risks with it? Did you audit your smart contracts?
D. | Satoshi Club
nice, thanks a lot for explanation
Tokyo
No problem! thanks for asking really smart questions,with regards to our audit, we just received our audit draft
We will soon make the report public
Mary | Satoshi Club
Cool! Don’t forget to share with our community
Tokyo
will do!
Mary | Satoshi Club
As i see you care about your security!
Mary | Satoshi Club
Thank you for your answers! Ready for the 6th and last question from this part?
Tokyo
I’m ready
D. | Satoshi Club
Q6 from Telegram user @Arisabela
I could see in your docs that Tower Finance is strengthened with the inclusion of not just one, but two on-chain oracles: Firebird and Chainlink, I would like to know more about this topic, could you explain the usefulness of oracles in your ecosystem? Are they used for economic or security purposes? Why is it necessary to use two and not just one of them?
Tokyo
Yes! we use Firebird and Chainlink for both economic and security purposes
Tokyo
You nailed it
We used two different sources depending on the token type.
Firebird is used to get price feeds (especially TWAP) for CUBE and TWR in USDC
While Chainlink is used to get price feeds for USDC in USD.
D. | Satoshi Club
Do you have any plans regarding NFTs in your project? curious to know
Tokyo
We can’t share anything now but we’re considering many options and NFTs are one of our team’s strengths.
Mary | Satoshi Club
We are intrigued
Tokyo
Many of us have been game developers for the past decade
Tokyo
until crypto rabbit hole lol
D. | Satoshi Club
haha
Mary | Satoshi Club
Patiently waiting
And now we came close to the next part of our AMA
Mary | Satoshi Club
Live part
Mary | Satoshi Club
@tokyo48 do you have experience with the storm of questions?
Mary | Satoshi Club
Ready for it?
Tokyo
not really but i’m excited !
Mary | Satoshi Club
Let’s try
Mary | Satoshi Club
Let’s go
Part 2 — live questions from the Telegram community
Q1 from Telegram user @surendra040
How could I mint TWR??How many CUBE is required to mint TWR? DO you have any minimum requirements? Are there any medium article or guide available about it??
Tokyo
In order to mint 1 TWR, the system requires TCR worth of USDC and (1 – TCR) worth of CUBE.
ex) When TCR = 80%, 100 TWR can be minted with $80 worth of USDC and $20 worth of CUBE
Q2 from Telegram user @Karry1999
Read About the Two Colloateral Ratio Which are :
1.TARGET COLLATERAL RATIO
2.EFFECTIVE COLLATERAL RATIO
Will you please Talk In brief about the Two Colloateral Ratios?
Tokyo
TCR stands for Target Collateral Ratio. It is the percentage of USDC collateral that the system targets. TCR is used when minting TWR. ECR stands for Effective Collateral Ratio which is the percentage of USDC collateral held by the system. ECR is used when redeeming TWR.
Q3 from Telegram user @Manisham7
Will you Deploy TWR on other networks? Is it one your Roadmap?
Tokyo
We’re considering expanding to other networks. But I think now the top priority is maintaining this initial system on polygon.
Q4 from Telegram user @Korryl
You mention that Tower Finance is a Stablecoin project, so what are the different Tower Finance Stablecoin with other competitor? why its special?
Tokyo
We’ve designed a system that generates revenue(profit manager) from the beginning so that it can help the system stable. In addition, incorporating the defi 2.0 functions (including protocol owned liquidity and protocol rented liquidity) can definitely help our sustainability.
Q5 from Telegram user @hansoyeon
You implement Multisig wallet Timelock to create a secure system for users. Can you tell us a little about them?
Tokyo
We’ll use both multisig wallet and timelock. Multisig will be 2 of 3, timelock will be at least 12 hours.
Q6 from Telegram user @yellowchamp
Can you explain to us the pros and cons of the Penalty System of Tower Finance? Thank you
Tokyo
Pros: We can keep accumulating our own liquidity by the penalty
Cons: It could lead to sell pressure in the short term.
Q7 from Telegram user @Tahsinahmett
What are the advantages of Tower Finance working with Polygon instead of other chains? Why Polygon instead of networks like BSC, ETH?
Tokyo
Polygon has very low fees and fast speed compared to other networks. It can also benefit from the Ethereum network.
Q8 from Telegram user @Prithvi200
Have You Conducted any AUDIT Till now From any Renowned Company , If yes Please Brief me About this and Is any Major Issues Found in it ?
Tokyo
As we mentioned this during the previous session, we received the audit report from Entersoft. There were no critical or major issues. It’ll be announced via our official channel.
Q9 from Telegram user @kimzyemma
Hello, I got a question for you. What is the different between Protocol Rented Liquidity and Protocol owned liquidity?
Tokyo
In short, Protocol owned liquidity is owned by the protocol. Protocol rented liquidity is stored by the protocol temporarily. So, the team anticipates removing all the Protocol Rented Liquidity, with approval from our governance. At this point, the CUBEs disbanded from the LP will be burned immediately, whilst USDC will be converted into CUBE and burned.
Q10 from Telegram user @dark_king_call
I’m curious. May I ask, why don’t you have a telegram?
Tokyo
In order for us to respond to many questions efficiently, we decided to integrate the channel into discord only.
Part 3 – Quiz Results
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.
For more information and future AMAs, join our Social Media channels:
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Our partners:
Medium –https://medium.com/@tower_finance
WebSite – https://towerfinance.io/
Twitter-https://twitter.com/tower_finance