It was indeed an amazing AMA with our Partner Singular.Farm. Our Lead Dev/Ceo — Plastic Digits discussed a lot about Czodiac Development as well as our new and improved CzFarm — Stim Farm!
Check this article for more info if you have missed the recent AMA with them!
Question and Answer:
Kristopherian: Could you tell us about CZF? In other words, what does CZFarm do?
Plastic Digits: CZF is the farming and rewards token for the CZodiac’s community dapps. So people earn CZF while using the dapps. Then these dapps also burn CZF through different mechanisms.
Right now CZF is still in its inflationary phase but over time burns will outgrow mints.
Our dapps are all defi focused. We have the v1 farms, pools everyone is familiar with, we also have Defi 2.0 tech like Stim Farms. We also have Antidump Vaults for single asset staking.
And, we have a stablecoin lending system based around CZUSD. You can farm CZUSD/BUSD on Singular.farm right now! And also on app.czodiac.com. I think the APR on app.czodiac.com is a bit higher right now.
Kristopherian: Wow. you guys are doing a lot of things! Keep up the good work man. oh one thing! what does CZF stand for?
Plastic Digits: Yeah I am a bit exhausted to be honest. But we recently added another dev who is helping us out with the new UI release, so that’s been one less thing on my mind lol
“Chinese Zodiac Farming”
We are Chinese Zodiac themed because we think its bringing us good luck heehee
So far been working!
Kristopherian: hahah yes looks like it is working very well :)
moving on to the next q!
Do you consider yourself a direct competitor to beefy.finance? If so, what would you like us to know that differentiates you from them? If not, what are the key differences?
Plastic Digits: Beefy is one of our best partners actually, I wouldn’t consider them a competitor at all. Actually the incentives in defi are generally to collaborate rather than compete. Even if two projects are offering the exact same services, its better for them to integrate each other’s tech and do some cross promotion.
I’d say the big difference right now, and my suspicion is this wont be a difference for long, is Defi 2.0 vs 1.0 systems
The problem with 1.0 farms, the kind you’re familiar with, is they tend to attract toxic LP that exits at the first sign of trouble. This forces community members who are trying to support the project to also dump, creating a runaway situation
It’s a problem thats plaguing all the defi projects, even giant ones on Ethereum. Defi just is underperforming BNB and ETH because of this.
So the 2.0 farming system prevents this issue by giving the LP to the protocol.
Kristopherian: This is very true, afterall we are all in this together! oh so when can we expect ths 2.0 farming?!
Plastic Digits: Right! We need better incentives that help us work together instead of against each other.
Actually it just came out in the last 24 hours, you can check it out on our dapp https://app.czodiac.com/#/stimfarms
Kristopherian: nice nice! Singers please do check it out! seems very cool!
Great, could you give us some info on the CZF Token?
Plastic Digits: There’s also a deep explanation on Stim Farms in the whitepaper. The main things are, you get your LP’s value back as CZF and the LP is kept by the protocol.
Yes, it’s currently traded on Pancakeswap and we also had a great listing by Coinsbit. They’re not that big but they’ve been unusually supportive. They’re launching a trading competition for CZF this week.
CZF is used in all of our dapps and its the primary economic token for the protocol.
If you want to ape in, the best way is just buy CZF, then stake it in the v1 pool CZF->CZF. Its a simple long strategy with no farming risks.
CZF also backs our CZUSD stablecoin, which is a great way to earn safe APR with stable LP. The APR on app.czodiac.com is 200% right now on that pair. it’s the best stablecoin APR on BSC right now.
Kristopherian: man 200% is super high! smoking hot man
Plastic Digits: Yeah, for stable LP you can’t beat that.
Kristopherian: Are there any community initiatives or ways to get involved with the project that you’d like to highlight to our viewers today?
Plastic Digits: CZUSD is also super safe. It’s backed by two mechanisms, the “Scorch Peg” for short term volatility and “Exempt Borrow” for long term peg. More info in the whitepaper.
Kristopherian: Do go and read the whitepaper before aping in boys and girls!
Plastic Digits: Yes, there’s a lot of singular farmers on the CZUSD/BUSD pair, its been really popular so the APR has fallen a bit. So for those farmers, we want you to make sure you know about the CZUSD/BUSD farm on app.czodiac.com since the APR is quite good.
We’re gradually reducing most emissions as we transition from v1 farms to stim farms, but the CZUSD/BUSD farm is an exception to that. So the emissions on that farm are going to stay strong.
Kristopherian: ohohoh i’ve waiting to ask you this question now!
There’s a lot of hype around Defi 2.0. I heard you are launching a new v2 farming system based on Olympus Dao called Stim Farms. How do these work?”
Plastic Digits: Yes, we aren’t the first to come up with Defi 2.0 of course. And our Stim Farm system is based on Olympus Dao’s LP bonds. But we simplified the system to try to make it easier to understand.
Stim Farms work like this. You deposit LP, then 1 week later you get CZF. The CZF is set when the farm is created to be worth the LP plus interest.
Since the LP goes to the CZodiac protocol, it means that even if a dump happens the LP won’t exit. So there’s greater stability and a price floor.
On top of that, the CZodiac protocol earns the trading fees from the LP its acquired from past LP farms. So CZodiac earns profits which can then be used to either keep increasing the LP, or if the LP is too high then the fees can be used for burning CZF.
We believe this defi2.0 systems like ours are the future, it really stops the dumping problem and helps everyone work together.
Kristopherian: sounds very promising!I like the idea of making it more stable
Plastic Digits: Yes, in the first few hours we got $20k of deposits into the first CZF/BNB stim farm. And we got new farms launching every day this week.
Kristopherian: and having a solid price floor 👍
Plastic Digits: Yeah its really sad to see how many great defi farming projects have thier token price keep going down because of toxic LP, we want to end it heehee
Kristopherian: No wonder you are exhausted. You and Freddie are like beasts
Plastic Digits: Yeah singular is really an amazing project Freddie is a great dev, I was super honored when he said we can do some partnership.
Kristopherian: well it was a great session. we are happy to have you as our partner. Let’s keep working together for a better Defi world
Q1 plasticdigit are the czf tokens returned automatically after vesting on stim, and is the process irreversible upon vesting?
A1: The LP tokens are kept by the protocol. Once you deposit into a Stim Farm it’s irreversible.
So there is some risk to people following strategies that involve selling the CZF tokens.
The whitepaper details the two most popular strategies, “Pooling” and “Refarming” and discusses the risks/rewards for each.
Q2: Thanks! Will read up. @plasticdigit if you can take two more — will the stim czf rewards be sourced by reducing v1 emissions, and which farms will be affected if so?
A2: Yes, we’ll be gradually reducing rewards on the v1 emissions, but we aren’t going to retire v1 farms either. The farm that will see the steepest reduction will be CZF/BNB since it’s the one we’re paying the most emissions for.
2 of the v1 farms will be elimintaed entirely: CZF/TIGZ and CZF/TIGZHP. But only once we get enough migrated to v2.
For some of the smaller farms we might actually see some small increase in emissions, since funds will be freed up from CZF/BNB.
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