On December 1, Satoshi Club kindly invited members of the Genius Yield team to an AMA on their Telegram channel. Dr Lars, Dr Sothy, Laurent, Marvin and Jonathan answered questions from a passionate community for an hour. Here’s a recap of everything that was said.
Genius Yield is based on Uniswap V3 protocol and on Genius Yield, Anyone can list their Native token, Provide initial Liquidity to set token price and allows others to SWAP their Native token for other assets listed on the platform and Genius Yield offers LPs 3 separate fee tiers per pair for stable coin pools, standard non-correlated pools and exotic non-correlated pairs. What are the requirements for anyone to be able to list their native token and provide initial liquidity on Genius Yield? can you elaborate on stable coin pools, standard non-correlated pools and exotic non- correlated pools and their features? Lastly Can you share the 3 separate fee tiers pair Genius Yield offers for each of these pools? Thank You
Dr Lars: Regarding who can list — it’s a decentralized protocol, so we can’t (and wouldn’t want to) stop anybody from participating. Anybody will be able to set up liquidity pools for arbitrary token pairs.
Marvin: We don’t have the same fee structure as uniswap because our DEX is not based on a AMM architecture but it will be an Order Book based exchange. This is because Cardano’s UTXO smart contract design makes Order Book exchanges more computational and capital efficient.
In order to help and inform new users on the basics of DeFi, Genius Yield will be offering an educational platform called “Genius Yield Academy”. This platform is divided into different sections according to languages and level of expertise. There aren’t any much information stated by your website and whitepaper for this feature. While you’re here, can you please discuss more about the Genius Academy and its structure? Will it be open and accessible by anyone from your community? Most importantly, will this feature require payments or will it be free of charge?
Dr Lars: We plan to offer courses on all our technology and also give background information on DeFi, smart contracts etc. This will in particular be aimed at newcomers to the crypto space — a space that can be pretty confusing in the beginning. We will try to make it more interesting by inviting topic experts for special lectures and similar. Basic material will be free, but we consider offering some premium content for members of our Community. We also want it to be more like a community, a platform for our users and the whole crypto world to discuss DeFi and Cardano and exchange knowledge, ask questions etc. In general I firmly believe that education should be freely available to everyone. Nevertheless, some special advanced courses might be reserved for our members.
One way of The Genius Yield ecosystem to incentivize holders is that it enables users to earn a significant passive income. Based on what I have read, all GENS holders will get a reward. You mention that 20% of the transaction fees on the platform will go to GENS holders. I have some doubts regarding this distribution. Will this distribution happen after each transaction or will they accumulate until a certain point in time? That is, weekly, monthly or even quarterly? Are there any exclusion criteria in this distribution? Will each of the GENS token holders receive their reward without exception? Will the rewards be distributed based on the number of tokens each holder has or will each holder receive the same amount of reward?
Marvin: GENS holders will have to stake their GENS token into our stake pool to earn a portion of platform fees. The longer they stake the more platform fees they will accumulate. We haven’t decided on the distribution cadence just yet.
Genius Yield will be launching its ISPO (Initial Stake Pool Offering) on December 15 2021, ISPO is a revolutionary new fundraising mechanism that is more fair, inclusive, secure and it poses no danger to delegators since, unlike an IDO, they do not have to spend their ADA to obtain protocol tokens. So can you introduce to us some advantages of ISPO? Can you tell us how many delegators are you expecting to participate in your ISPO? What is the amount of ADA you expect to be staked in Genius Yield pool until the closed date? The variable margin of an ISPO is 100%, what then happens if it’s less than 100%? Can you state the difference between ISPO and ICO/IDO? Please provide more details on your ISPO. Thanks
Marvin: An ISPO allows the community to support their favourite project without investing their own assets (unlike an ICO/IDO). Instead, it leverages the network’s native reward incentive structure. ISPOs are only possible on the Cardano blockchain because of its unique stake pool delegation structure.
We don’t have an expected number of delegators but we estimated that we plan to saturate 2–3 stake pools over 6 months. Each pool can hold 64 Million ADA. We have two stake pools at the moment open. One with 100% fees and one with 50% fees. By delegating to the 100% pool, you will accumulate twice as many GENS tokens compared to the 50% pool. In the 50% pool you are only giving away 50% of your ADA staking reward and therefore accumulate only half of the possible GENS per epoch.
I read that we can participate in the governance of Genius Yield by simply holding $GENS. It caught my attention that voting power is derived from the $GENS holdings of the participant. This means that those users who have more GENS tokens will have more voting power. Some users do not agree with this method because the ‘whales’ would have more control and could manipulate the ecosystem at will. Why did you guys decide to do it this way? Do you consider the method in which each user has equal voting power to be disadvantageous?
Dr Lars: In a Proof of Stake system, that’s how it works — for better or for worse. It’s how Cardano, the platform we’re building on, also works. That being said, we will refine it over time — maybe by adding some extra voting power for loyalty, rewarding long-term holders of GENS. Other mechanisms are conceivable.
In addition to this, it is not easy to identify individual users in the decentralized world of crypto — without using some sort of identity system. We will keep it simple in the beginning and refine it over time.
Genius Yield will offer liquidity pools on the Cardano blockchain that will allow users to utilize DeFi services in a secure environment with Superior performance and scalability; the genius Yield pools will enable users to swap their Cardano native Tokens for $Gens, which can then be used to open an account on the Genius platform, for staking, and becoming a validator on the Genius protocol. How would users who do not have Cardano Native Tokens on the blockchain be able to open an account on the Genius platform, for staking, and becoming a validator on the Genius protocol?
Marvin: We will integrate our own Wallet into our platform, which will make it easy to convert FIAT into ADA, thus enabling even newcomers to participate easily. We do not have the full list yet but EUR and USD will definitely be in it.
Can only the elite investors can invest in GeniusYield, or the small investors can also invest and earn rewards?
Laurent: Anybody can invest and yield rewards. We care particularly about newcomers and small investors, but “whales” are obviously welcome as well.
Do you have AUDIT certificates, or are you working to AUDIT your project, to make it more secure and reliable?
Dr Lars: For the time being we are building our prototype. Before deploying our first version, we will be engaging an auditor to review our product
Genius Yield works under chain Cardano, may I know the reason why choose Cardano as the main chain? Do you have a plan to have another chain also like BSC, DOT, or maybe Solana?
Dr Lars: Cardano is a third-generation blockchain that offers higher security, higher throughput and lower fees. Optimizing yields is much easier and more profitable if profits are not eaten up by bloated gas fees. Cardano has been built with a Research First mindset, so the tech is rock solid and state-of-the-art and makes it easier to mathematically prove the correctness of our smart contracts, which seems particularly important for a system with billions of dollars at stake.
Your project is very unique, how can a new investor invest in your project? How can I buy $GENS?
Dr Sothy: Our seed round was successfully closed in early November. Soon, we’ll be launching our Initial Staking Pool Offering (ISPO) where ADA holders can stake their tokens and get GENS tokens as rewards. So it’s a unique opportunity for the Cardano community to support Genius Yield
In my opinion, Genius Yield is a really great project, could you share here about the token sale of $GENS where to get, also do you have the whitelist or presale event?
Laurent: Everyone can participate in our ISPO, starting December 15th until June 15th. We have a great incentive program with BONUS + limited edition NFTs ( partnership with famous artists). You can find more details here https://docs.geniusyield.co/ispo/initial-stake-pool-offering-ispo. At the end of the ISPO we will do a public pre-sales, and everyone can participate on whitelist.
I see that your platform aims to cater to a wide variety of customers, from advanced to beginners, do you consider that your platform is easy to use and understandable for beginners in the world of cryptocurrency trading or do you have to have a minimum of knowledge to work with Genius Yield? Do you have any benefits for novice users that we will not find in other yield optimizers?
Johny: Thanks for a great question. We firmly believe that mass adoption will come from: 1) a simple yet powerful user interface and 2) understanding and managing risk exposure. By helping our users get the hang of all the parameters that go into an investment strategy and giving them the tools to customize their own, we’ll empower them to make their money work harder for them by harnessing the power of yield farming. We want the platform to be accessible to all levels — from novice to advanced users.
The weakness of smart contracts is the most important issue that scares crypto investors. Do you believe that the security problem can be solved 100% by auditing smart contracts by professional institutions? How do you think a completely secure platform can be created?
Dr Lars: 100% security may be an unattainable goal, but Cardano certainly makes it much easier to mathematically prove contract correctness, seeing as the EUTxO-model makes this much easier than account-based models like the one used by for example Ethereum. In addition to the “gold standard”, mathematical proofs, Cardano smart contracts can also be tested with powerful tools like “property based testing”, made possible by the fact that they are written in Plutus, a version of Haskell.
How does Genius Yield plan to stimulate the adoption of crypto? What do you consider to be the key points to achieve global adoption?
Johny: As with traditional financial services, we understand that financial literacy and education will play a key role in moving people up the value chain. If you buy cryptocurrencies but do not stake them or make use for yield farming, you’re missing on huge opportunities. Mass adoption comes from going back to the fundamentals and explaining them in terms that everyday investors will not only understand but be excited about. This is why Genius Academy is such a key part of our project.
You mention that your sophisticated and highly innovative algorithm can find the best trading strategies to secure our capital and increase profits, could you tell us a little more about what this algorithm is based on and how it works? Is it proven and verified that it will secure our investment and that we will be able to get the best trading strategies? Is it really safe?
Marvin: Genius Yield has developed an AI-powered Smart Liquidity Management protocol. It is a DeFi yield optimization solution that algorithmically automates trading strategies to maximize users’ APYs while minimizing risk exposure. It is built onto our custom-built Concentrated Liquidity Order Book DEX. This unlocks tremendous capital efficiency gains for LPs who can manually adjust their exposure based on their trading strategies. As a result, market makers can earn more rewards with less capital investment and incur less impermanent loss.
Our users will be able to choose from multiple algorithmic strategies based on their desired risk exposure, expected return and exit strategies. All our strategies are designed and vetted by Genius Lab, our R&D branch. The algorithm will be optimized with Machine Learning and the performance evaluated by our backtesting infrastructure. Our Smart Liquidity Management protocol will not give you risk-free profits because we cannot predict the market, but it is designed to balance between risk and reward using statistical methods.
How important Community for Genius Yield project? and what event that your team prepare for your community? Do you have special event like, airdrop, or maybe ambassador event?
Dr Sothy: We are a decentralized platform, so the community is the key. We will release our DAO whitepaper next month, and we will also release our Ambassador program this month with an NFTs incentive plan. We will continue to organize events as hackathons next year in collaboration with our Genius Academy.
Genius Yield ISPO basics
Start date: December 15th, 2021
End date: June 15th, 2022
GENS Rewards: 10 Million GENS
Running for 36 Epoch (1 epoch = 5 days)
Accumulated GENS rewards will be airdropped to the delegator’s wallet after the Token Genesis Event (time of minting). ADA holders will be able to delegate their funds to a stake pool in exchange for staking rewards. To participate in the ISPO you will simply need to delegate to Genius Yield’s’ stake pools. In return, you will be rewarded with GENS tokens based on the amount of ADA staked and the length of staking.
For more details see Genius Yield’s ISPO documentation.
About Genius Yield
While DeFi provides many investment opportunities, managing capital is both complex and time-consuming. Genius Yield is your all-in-one solution to benefit from advanced algorithmic trading strategies and yield optimization opportunities. Our Smart Liquidity Management protocol is intuitive, hassle-free, and secure. Genius Yield minimizes risk and maximizes profits.