Duet Protocol AMA Summary Recap with Shin Chan Community
We held a live AMA with Marketing Lead, Rossie from Duet Protocol on 16th February 9:00 PM (UTC+8). Here’s the recap for those who missed it.
Serene | Shin Chan: Before we start, can you introduce yourself to the community? What is your background? How did the team build your project?
Rossie: Yes, sure. I am Rossie, and I am the Marketing Head of Duet Protocol. I have been engaged in the Crypto industry for more than 4 years now. I have the opportunity to have project experience with DeFi, NFT, GameFi and layer 2 solutions in the last couple of years. Now, I’m submerged in DeFi and DAO.
Duet’s team consists of veterans from OmniLayer, Binance, and well-known DAO communities, The core members are experts and KOLs in areas including lightning network, security token offering, mining, macroeconomics, and finance.
According to the team members’ background, you can tell that Duet’s built in a vision full of high-standard financial level as well as the crypto native sense. I will break down the product for you guys here later.
Serene | Shin Chan: Can you briefly describe what your project is?
Rossie: Duet protocol is a synthetic asset minter built on a Yield Aggregator that automates the process of yield farming, maximizes its returns, and releases additional liquidity to the users.
In the short run, the receipt token holders can enhance their returns by utilizing stablecoins minted with Duet protocol. In the long run, our vision for the Duet protocol is to be the entry point of liquidity providing, the reserve capital system that supplies liquidity to almost all DeFi protocols whilst generating a world of synthetic assets whose values are 100% backed by its reserves.
Duet Protocol’s got $5M investment from global backers including Omni, GSR, DHVC, etc. So far, Duet has accumulated roughly 150K+ followers among social channels, as well as 1,000+ active users through the test product.
You can check more detailed information about Duet Protocol through the following links:
Social profiles: https://linktr.ee/duetprotocol
Audit reports: https://linktr.ee/duetaudit
Dive more into Duet Protocol series:
1/Introducing the Duet Protocol 3.0 Series — Part I
2/Introducing the Duet Protocol 3.0 Series — Part II
3/Introducing the Duet Protocol 3.0 Series — Part III
2021 Year-End Investor Letter
Mika | Shin Chan: Can you explain what makes your project different from other competitors?
Rossie: Compared with current methods, Duet delivers a unique design to optimize minting and trading.
- Openness and user-friendly：Compared to Binance or FTX CM equity methods, on-chain synthetic assets minting is easier and friendly for investors, having no entry barriers, procedures cost, or single spot risk.
- -Multiple collateral positions: Synthetix and Linear adopt the single asset deposit with sharing debt method. Compared to them, Duet chooses multiple collaterals with separated CDPs, which reduces minters’ risk and raises scalability.
- Assets diversity and compatibility: Compared with MakerDAO’s DAI and Mirror’s UST, Duet accepts various types of synthetic assets and embraces wider ecosystems, and supports Ethereum, BNB Chain, and other EVM compatible blockchains.
- Compatibility: Duet provides transferable dAssets which could be leveraged in other DeFi protocols, compared with perpetual-ish protocol which only supports long or short positions.
Moreover, I may describe the benefits we bring to users in these aspects:
- Duet’s stablecoin and other synthetic assets in the future are built upon yield aggregators, which mean the dAssets are yield-bearing naturally. At the same time you can still enjoy the general yields based on strategies the Duet team prepared for you.
- Unique bond market design. Have you ever noticed that the majority of Bonds among the crypto market are designed in the form of “NFT”, or they can’t be traded before being redeemed into the native tokens. Both make the bond a highly illiquid asset.
For the Duet bond, you would enjoy the high liquidity due to the Fungible tokens’ design as well as the unique AMM pools there. 12 bonds(once a month) and 4 bonds (once a quarter) would be onboarded on cheaper EVM compatible chains (BNB Chain, Polygon, Ava, etc.), and Ethereum respectively.
Not only can users enjoy the juicy interest from the bond market, but also have access to a highly tradable and liquid asset class.
- Inside one platform, generating multiple LP tokens: Get any kind of LP tokens with only one click, in one place, rather than a couple of ones where you would need to hop on to many different platforms. Duet Protocol designs a function “ZAP”, which would let users get their single token, let’s say USDC, which can be transited into any target farm LP tokens instantly.
Mika | Shin Chan: What are the major milestones your project has achieved so far?
Rossie: Recently, Duet Protocol V1 Beta’s public test just wrapped up, and we have been highly welcomed by the community, with 160K+ Tx and 6,000+ active users there.
Here you can find more information about our public beta test:
Duet Protocol has got two rounds of auditing for V1’s launch, both from top-notch agencies, Packshield and BlockSec, and the formal deployment on Main net is expected to happen very soon.
For now, if you wanna interact with the Duet V1 Dapp, we highly recommend you start from BNB Chain test net environment: https://testapp.duet.finance/#/deposit-list
Mika | Shin Chan: What are your further plans for your project?
Rossie: Let’s share a general view of our road map first
In the 1st Quarter 2022, our target is to get four core modules placed there: Farm & Zap, Stablecoin Miner, over-collateralization, and bond market.
By far, the former 3 ones have been fully prepared, formal deployment is just around the corner, and the latter would be under auditing soon.
In the meaning of growth and partnerships, we’ve accumulated over dozens of great partners and backers so far for bootstrapping the ecosystem’s development, some disclosed partners: Desyn, Project Galaxy, izumi finance, immunefi, etc.
We would announce more partnerships news in the next weeks, and disclose the concrete collab details we’re gonna onboard, especially in the meaning of how to reward the community.
Besides, in the meaning of product matrix, inside the Duet V1, we’re exploring expanding the Duet’s farm module to a wider span of strategies, including on-chain options design; bond market to be used as the infra for our strategic partners’ liquidity mining incentive. Also, we may step into leveraged liquidity mining to satisfy the needs of those users who’re in higher risk preference.
For V2, it’s actually been on the table. We could disclose here that we are trying to introduce the market maker design that helps on-chain liquidity could be bridged to the real-world ones, so ideally, any synthetic assets generated though Duet Protocol would be able to touch ultimate liquidity.
Twitter Section Begins:
Q1: How users can create Synthetic products in Duet? What do we need to do as users to start trading on Duet, do we need to register and pass some KYC, or can we just start using it with MetaMask and other popular wallets?
Rossie: As a DeFi protocol devoted to permissionless future, you can for sure interact with Duet Protocol through Metamask or any other Web3.0 wallet, no any KYC. To create synthetic assets here, there’re two way for now:
1/over-collateralization module, which means you can generate synthetic assets by staking your LP tokens and single tokens to the system, for now, the system supports: USDC, USDT, BUSD, and corresponding LPs as collateral; 2/Stablecoin minter. Which is a high-efficiency stablecoin built upon vAMM, which allows you to use your USDC, BUSD to generate dUSD.
In the future, we would open another channel to generate synthetic assets or let’s say dAssets: algo-burning/lite minter, which allows you to raise your capital efficiency even higher to mint dAssets.
Q2: I perceive that duet protocol is a multi-chain synthetic asset protocol, but do you have any other passively revenue sources, such as farm, stakes, and liquidity mining that can use to generate income? Alternatively, do you have a holder recognition and rewards scheme in place?
Rossie: Sure, if you go to testapp.duet.finance page, you would find that we’ve prepared a tab called “earn” for you, which allows you to stake single tokens and LP tokens to earn yields. The farm mainly happens in PancakeSwap for now, which means you would enjoy the yield PCS brought to you, that’s the first-layer’s yield.
Moreover, we would give away some bonded DUET as incentive to designated strategies when the V1 formally launches later, also, the co-incentive by our partners would apply as well.
Q3: You explain that Duet Prootocol will allow traders to replicate real-world tradable assets in a DeFi ecosystem, correct? How could I then, for example, trade Amazon (AMZN) stock in a DeFi scenario? What would be the advantages? What would I need to buy 100 tokens of this stock?
Rossie: More precisely, we’re devoted to building an on-chain DeFi matrix, allowing anyone to have access to any kind of assets generated by Duet Protocol’s mechanism.
At the same time, I would like to stress that Duet Protocol only builds the mechanism for the community to access, the platform itself is risk-neutral and assets preference neutral, which means we don’t take liability for what users choose to mint.
For the example you just raised, I would quote what earlier talk: we have two channels to generate synthetic assets, over-collateral and stablecoin minter, in which you can have $dAMZN by over-collateral $DUET or other single tokens like USDC, BUSC, or stablecoins pairs like USDC/BUSD.
In the future, you can also get $dAMZN by burning $DUET or other tokens, which would be a purely algo-driven channel for generating dAssets.
Q4: Why did DUET decide to go with a peer-to-peer approach instead of trading derivatives? There are a number of protocols that use the peer-to-peer approach at the moment, such as Synthetix, Hegic, and FinNexus, but what is DUET’s benefit over these protocols?
Rossie: As we mentioned earlier in the first part, Duet delivers a unique design to optimize minting and trading, we have the following advantages: openness and user-friendly, multiple collateral positions, assets diversity and compatibility and compatibility.
Moreover, Duet’s stablecoin and other synthetic assets in the future are built upon yield aggregators, which mean the dAssets are yield-bearing naturally. We also have a unique bond market design. For the Duet bond, you would enjoy the high liquidity due to the Fungible tokens’ design as well as the unique AMM pools there. Not only can users enjoy the juicy interest from the bond market, but also have access to a highly tradable and liquid asset class. Inside one platform, duet is able to generate multiple LP tokens.
Q5: I don’t really understand “Duets allow traditional assets to migrate to high yielding crypto assets”, I understand that they can migrate to blockchain easily, but how do they actually guarantee that they will be “high yielding” without sacrificing liquidity?
Rossie: That would be guaranteed by our market maker channel, which allows third-party MM or users to hedge against the liquidity risks or price volatility between on-chain and traditional markets. The concrete mechanism would be disclosed in the Q2 2022.
Telegram Live AMA Begins:
Q6: How do you introduce your project to non-English speaking users? Do you have an ambassador program for any non-English speaking areas such as Asia , Southeast Asia (Indonesia, Vietnam, Philippines, Malaysia, etc) ?
Rossie: Yes, we have. we launched the Duet Global Ambassador Program back in January to get more community members deeply involved in our projects. So far we have received more than 1300+ applications from the community. Right now the application for the Duet Ambassador Program is still undergoing. You can check here for more details: https://twitter.com/duetprotocol/status/1483065015880015875?s=21
Q7: Hack attacks are so often happening and this scares many investors to invest in new project.
That’s why please tell us about the Security of Duet Protocol. How strong security do Duet Protocol have and did you already have an Audit to be more sure about your security?
Rossie: for this we have audited by not 1 but 2 audit security firms including peckshield and BlockSec, to know the detailed report you can check out the report at the given link :
Q8: 📌According to your website, Duet you utilize a hybrid mechanism (overcollateralization + burning algorithms) to promote a bullish and secure financial scheme. My question is how your scheme will increase the project’s liquidity?
📌Supporting liquidity to the system or contributing to DUET rewards are two ways to earn duet tokens. How do you contribute to DUET tokens to get these tokens?
Rossie: Farm module with competitive and reliable yields would be the main points that attract users to deposit funds into the system initially.
Q9: 🐓What part in the project structure does synthetic assets play? According to what I’ve read, Assets and stablecoins are the two key components of the protocol design, so how do they fit into the ecosystem?
🐓How can you keep the DUET ecosystem going while competing in this evolutionary process? Are DUET able to deliver constant innovation, given the many developments in Crypto such as DeFi, NTFs, and Farming?
Rossie: Synthetic assets can be used in the Earn module and farm module in the Duet Protocol. Apart from that, it’s able to be used as collateral, margin asset, base token etc in the eco of Duet or Duet’s partners in the future. We would disclose more details later
Q10: Over-Collateralization Minter and Lite Minter are two of the Duet Protocol’s five components that are used to mint synthetic assets. Could you perhaps clarify the differences and advantages of both techniques to us? What is the best time to use one or the other?
Rossie: The former is classic DeFi protocols adopted way to secure the system’s funds volume as well as reliability, and the latter would be in a form of mixed UST+LUNA model which’s driven by an algorithm. Honestly, it’s hard to say which one is better or in larger advantage. But generally, they apply to different-level risks preference users