“Cross-chain DeFi for leveraging yield opportunities to achieve maximum capital efficiency”
Andrew (BSC.News):
Hello everyone and welcome to the AMA with Growth DeFi!
Today I have Joel and Safe Ratios over from Growth DeFi today to answer some questions about their project as well as help out with the giveaway
Welcome, pleasure having you guys here @Gtrain99 @SafeRatios
🌱 SafeGROWTH 🌱 :
Happy to be here
Joel Gee:
Thanks Andrew 👋
Andrew (BSC.News):
Hey so how this will work is, the AMA will consist of two rounds. The first round will be us going through the questions that I had prepared for you before hand. And then the second round will be a community round where I will open up the room to allow questions to come in. The second round is also where we will select the two winners of our giveaway 🙂
Sound good with you guys?
🌱 SafeGROWTH 🌱:
Sounds like a plan 👍
Joel Gee:
Yup
Andrew (BSC.News):
Awesome so let’s get things started then
To kick it off
1. Please give us an introduction to yourself and how you contribute to Growth DeFi
🌱 SafeGROWTH 🌱 :
Well, in my case I have been a crypto user for close to 5 years now, cofounded GrowthDeFi last year with other partners and we have been working ever since on different DeFi applications (first on Ethereum and now on BSC).
I mainly work on the research side of things and then helping out to bootstrap new products (such as MOR) in development
Joel Gee:
My story’s not quite so profound, been in crypto for about two years now, actually joined Growth as a community member and became part of the team soon after. My role is head of community & marketing. So basically co-ordinating all our community groups/channels and speaking with all our amazing community along with preparing all our content and everything with influencers, articles etc
Andrew (BSC.News):
Very neat, thanks for those intros!
So the reason we are all here today is to learn more about Growth DeFi
So my next question is
2. What is Growth DeFi? What is your overall mission of this project?
Joel Gee:
Well Safe can answer it a bit more in-depth than I can, but to put it very simply Growth DeFi is all about maximizing what you can do with your digital assets, and getting the most out of them. It’s our goal to provide a service where users can do that in the most efficient way possible
🌱 SafeGROWTH 🌱:
Growth DeFI is an ecosystem of DeFi products. The overall goal is to maximize capital efficiency for the users of our products and generate fees for our token holders.
As a quick breakdown on the one side we have WHEAT which offers yields on your tokens (a yield aggregator) and gets performance fees for doing the compounding work, and the other main product which we are about to launch is MOR, a decentralized stablecoin that allows anyone to deposit their tokens (it will be earning yield with WHEAT while they are deposited) and they can borrow against it to leverage up or do anything they want.
Unlike other projects we are trying to cover each angle were fees might have otherwise be leaked, that is why we use our own yield aggregator (WHEAT) for MOR collaterals rather than using a third party yield aggregator, it ensures a higher control on security and also more fees collected for the ecosystem
Users get better yields than anywhere else and more capital efficiency through leverage
Tokenholders (GRO, WHEAT and gROOT) acccrue value through buybacks and distributions derived from revenue generation (performance fees, stability fees, liquidation penalties and PSM fees)
Andrew (BSC.News):
Right, so as you said when conducting my research I did notice that you offer your own yield aggregator which in turn leads to the versatility of an all encompassing platform
But while you did briefly just mention it, I do want to touch more on your triple token model
So my next question to you is
3. Can you tell us about your three different tokens? What are their purposes for Growth DeFi?
🌱 SafeGROWTH 🌱 :
Some people get scared when they see that the ecosystem has three tokens instead of one but it is this way for a good reason.
GRO
GRO is the governance token of the ecosystem. MOR’s system surplus buybacks and burns GRO.
WHEAT
Wheat is the incentive token of the ecosystem. Buyback and burn mechanics are implemented through performance fees on stkTokens in combination with fee collectors.
gROOT
gROOT is the index token of the ecosystem. It uses the ecosystem’s products (as well as other BSC DeFi platforms) to generate yield. Extremely low supply.
To actually dig deeper in the tokenomics and the multiple revenue sources that each token has I highly suggest reading through the docs
Since GRO can’t be farmed it avoids concentration of governance in a few farming whales (this is why WHEAT was created)
🌱 SafeGROWTH 🌱 :
And we have more cool mechanics so that the holders of the token used for incentives (WHEAT) don’t suffer from sell pressure as much, which is through fee collectors. They essentially hold collective
ownership over a contract that stakes CAKE and BANANA and uses the staking rewards to buyback WHEAT everyday (it currently holds over 19.1k CAKE)
Andrew (BSC.News):
Okay, great explanation
So the mechanisms you guys use to incentivize token holders actually leads me into my next question which is
4. How are users incentivized to hold all three tokens?
🌱 SafeGROWTH 🌱:
In the case of GRO you basically have a fully deflationary governance token (with no emissions) that decreases its supply overtime from buybacks that MOR performs. Whenever someone takes a loan with MOR they are paying a stability fee (same as a borrow rate) which ends up going to GRO holders. There are also possibilities to stake it for more GRO (stkGRO) and BNB (GRO Yield).
For WHEAT it is currently inflationary but it has two main mechanisms to incentivize holding it:
1-You can get high APRs and APYs by simply staking it at here (currently over 140% APY)
2-The emissions are countered by the collectors I mentioned previously, overtime the balances of CAKE and BANANA that the protocol holds are only increasing (because it is where the performance fees go) so eventually that should make WHEAT deflationary whilst maintaining a nice APR/APY for staking it
And for gROOT it is a yield index token which is also extremely scarce (only about 1600 tokens in circulation), so you are betting on the overall performance of that treasury which holds yield tokens (aditionally you get a yield on your gROOT through gROOT harvest, paid in BNB)
Andrew (BSC.News):
Okay fantastic answer, thank you for that explanation
I noticed that you have mentioned you first started on ETH and now have moved over to BSC
And with so many emerging blockchains now I wanted to ask you this next question
5. As a multichain platform, what chains are you currently on and what has influenced you to expand onto different blockchains? Do you plan on implementing Growth DeFi onto any other blockchains soon?
🌱 SafeGROWTH 🌱 :
We are currently established on BSC because it has the best combination of userbase, TVL and also tx speed/cost. Our plan is to be a cross-chain DeFi project, bringing some of the products we are currently deploying on BSC to other chains, which chain will that be will depend on userbase/TVL/tx speed/cost but it will most likely be an EVM compatible blockchain.
BSC is often dismissed by many crypto people who don’t use it but rn I’d say it is the second biggest DeFi hub in TVL after Ethereum. so it shouldn’t be ignored if you are serious about DeFi
Andrew (BSC.News):
and just to be clear, EVM is the Ethereum Virtual Machine correct?
Can you give us some blockchains you may be interested in building on?
🌱 SafeGROWTH 🌱 :
Yes, the only chain atm that doesn’t use EVM and has actual activity is Solana (uses Rust), but the overall process of migrating from Solidity/Vyper to Rust makes it not worthwile
Avalanche, Polygon, Optimism, Arbitrum and anything that StarkWare deploys (tho BSC is where we will be deploying most things first)
There are others like Fantom and xDAI which are interesting but they’d need to get a larger userbase and overall DeFi TVL first
MOR and WHEAT really shine when you compose with other projects such as ApeSwap and PancakeSwap to get yield, leverage up on it and achieve crazy APYs
Hence why it is important the overall composability of a chain before actually moving there
Andrew (BSC.News):
Right
Joel Gee:
The beauty of this too is that as the DeFi space continues to innovate, so can we in terms of the products we can offer
Andrew (BSC.News):
So I wanted to actually touch back on your triple token model, well now with the stable coin, a quadrouple token model.
So while you did talk about it, I want to know a little more in depth about it so my next question would be
6. Why did you go with a triple-token model? Wouldn’t one token have been able to accomplish everything the three do?
🌱 SafeGROWTH 🌱:
It has to do with what I explained before, I’ll actually forward a few of those messages
Andrew (BSC.News):
Fantastic
🌱 SafeGROWTH 🌱:
gROOT is different from GRO and WHEAT because it has its treasury and own tokenomics which have nothing to do with neither GRO or WHEAT, it acts as an index of different products within the ecosystem
And between GRO and WHEAT the two main differences are that GRO has governance rights and is full deflationary already while WHEAT is currently inflationary and has no governance rights
We wanted to avoid having whales farm the governance token and having control over the entire project without having to actually buy in, with this setup they would have to acquire GRO in order to have governance power
And due to the multiple products of the ecosystem each token can have their own revenue stream (MOR profits for GRO and performance fees on TVL for WHEAT)
If we had a single product creating revenues it would make less sense, but given the ecosystem setup it is only logical to defend the governance mechanisms of Growth DeFi whilst maintaing solid tokenomics for all three tokens
I don’t consider MOR as another token, it is basically a product (a stablecoin), which anyone can use for a variety of purposes. Even if you just want to hold a stablecoin denominated in USD that can’t be blacklisted/baned/blocked transfers
Andrew (BSC.News):
Awesome, thank you for your answer Safe
So moving on
7. What features are available for users within the Growth DeFi ecosystem?
🌱 SafeGROWTH 🌱:
They can earn yield and borrow against their collateral.
You could for example deposit 1000$ worth of CAKE in a MOR Vault, you’d be earning a nice yield on that CAKE (of over 90% APY) and you have the ability to borrow/mint MOR using that same CAKE as collateral, you could then sell that MOR and for example get more CAKE and redeposit it (being able to earn more yield and have a larger exposure)
When you think about the possibilities this opens there are endless rabit holes to get into
For example, you can deposit some CAKE, earn that 90% yield on it, then mint some MOR at a 5% stability fee, convert the MOR into BUSD/USDC PancakeSwap LP tokens (earning a 10% APY on those) then leveraging up further with that new collateral and increase the yield from 10% to 100%+ (with 10x leverage)
There are many collaterals supported at launch and many more will be added overtime
Andrew (BSC.News):
Oh that’s really neat, I have not yet heard of a project where you can yield farm and be able to put that up as collateral while still farming a token
What are the mechanics for liquidation when doing it like this?
🌱 SafeGROWTH 🌱 :
On BSC leveraged yield farming already exists through Alpaca, Rabbit and Alpha Finance. The key difference is that on those platforms you are borrowing BUSD or USDT from another user (the lender), this means that you have to pay high borrow rates of 15-30%. In comparison the borrow rate/stability fee of MOR is fixed and predictable, and also much lower (on average 5%)
So you are paying much less in interest to leverage yield farm, and that really adds up overtime (if you pay 5% instead of 15% on a 10x leveraged yield farming position that is over 100% difference
We use very safe collateralization margins, so in the case of CAKE the user needs to maintain at least a 175% collateral ratio (175$ in collateral for every 100 MOR minted)
We use Chainlink oracles to know the worth of the collaterals
When a position falls under the minimum collateralization ratio also known as the liquidation ratio an auction starts where anyone can bid with MOR (to cover their debt) and get part of the collateral instead. It is a dutch auction.
So arbitragers would buy the MOR from the open market to bid on the liquidation then use the collateral received from the auction to recover their principal (swap the collateral to MOR for example)
Andrew (BSC.News):
Ah I see, thanks for that clarification
8. What would happen to your project in the inevitable bear market? Would all three of your tokens simultaneously dump?
🌱 SafeGROWTH 🌱:
The answer that nobody wants to hear but it is the truth is “it depends”
There is a good thing about the ecosystem which is that until used the profits from MOR are acccrued in the systems surplus, denominated in USD. So GRO always has some reserves in USD no matter how hard the price of GRO dumps
That could lead to a scenario where a bunch of that “cash” can be used to buyback the cheap GRO in a bear market
Andrew (BSC.News):
Right, so I guess a better way for me to phrase that questions is, where will you guys go? Would you build through the inevitable bear market or put a pause on development until the market picks up again?
🌱 SafeGROWTH 🌱:
Also, another source of revenue from MOR are liquidations, if we do have a bear market those users that don’t have proper risk management would pay liquidation penalties
Andrew (BSC.News):
I see and that “cheap” GRO can be used for large sums of buybacks in the future
🌱 SafeGROWTH 🌱:
As an example, DAI which is an overcollateralized stablecoin on Ethereum and what MOR is based off generated 19 Million $ in pure profit from Liquidation Penalties during the May crash
Yup
So it acts as a semi hedge basically
Oh, if you are talking about development then we have gone through a lot already, Growth DeFi is 1 year old and we have kept building from the start, even during the DeFi winter.
Joel Gee:
Bear markets are arguably the best time to build, there’s less distraction over whether or not a coin is “pumping” and you can really focus on ideas and execution
🌱 SafeGROWTH 🌱:
So we are already used to navigating through the ups and downs of crypto nature
Andrew (BSC.News):
Awesome, great answers guys
So last but not least
9. Any exciting news you want to share with us today?
🌱 SafeGROWTH 🌱 :
Well, we are very close to the actual launch of MOR so it is definitely a good time to get involved with Growth DeFi. I’d recommend reading through the documentation (docs.growthdefi.com) for a deeper guide on how the ecosystem works and also joining our telegram channel @growthdefi
Andrew (BSC.News):
Very exciting!
And could you provide us links to the social media accounts you would like the community to follow?
Joel Gee:
Yes absolutely, you can find us all over! Be sure to follow us on Twitter –
And along with our Telegram you can also find our community on Both Discord –
And reddit –
As well as subscribe to our Medium for blog posts & major updates –
Andrew (BSC.News):
Go check out those links above to stay up to date on the latest news and updates from a very exciting and promising project!This is a paid Ask Me Anything (AMA), BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement AMA for $2000 Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the AMA.
Source : bsc.news
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