Beefy finance AMA with BSC Gemz
On the 1st of December 2020, the BSC Gemz Telegram community hosted an AMA with Beefy finance team members as guests.
The interviewer, ogle, made an exceptional job, making us feel very comfortable and squeezing very good insights. The interview included lots of questions from the Community about Beefy’s progress, $BIFI tokenomics, long term vision, and much more.
If you missed the AMA, read this recap for a deeper understanding of Beefy finance .
ogle: So can one of you please just do a super quick intro to Beefy, for those who might not know what it is? And while you’re at it, maybe your individual roles?
Oh, and I’m sorry — I should say, thank you very much for joining us, by the way 🙂
superbeefyboy: Ok, I’ll start with a brief explanation, we can add to it later.
Beefy is a community based project, our focus currently is the yield optimizer. It started due to some limitations we saw with YFI (we, as in @sirbeefalot pitched the idea, and we jumped into it).
It was almost at the same time BSC launched, so we began building here a more ‘decentralized solution’
0xbeefy: I think a great thing that YFI showed us, was this idea of simplifying the process of investing. For a long time we’ve been talking about ways for common investors, regular people to have access to the same investing power and intelligence than big hedge funds. If you look at what internet did or information, how does that value gets distributed in a new era of easy value transfer. And that was one of the key ideas. BSC allows for rapid experimentation
Not only the elites having access to info — and in your case, not only the elites having access to advanced tools to make $.
And if you don’t mind, what in the world is a “yield optimizer” for those who might not know (there are some)?
Roastyb: Yield optimizer can be defined as a protocol which algorithmically automate yield opportunities so users don’t have to constantly make decisions and take manual actions.
By doing it algorithmically, users can get higher and safer returns while doing less.
superbeefyboy: adding to this ^
Yield optimizers could be compared with traditional ‘robo advisors’ in fintech.
DeFi is hard in 2 domains:
1. Hard to understand:
. It requires a lot of domain specific knowledge and experience.
. Most investors can’t read smart contracts, this leads to them getting scammed
2. Hard to execute
. Small investors don't have access to the same opportunities that whales and full-time farmers have
. Maximizing yields require to manually repeat the same set of tasks, multiple times per day
We make it easy, just 3 clicks, approve, deposit……. withdraw.
ogle: Very cool, thank you all.
I think beefy Finance is already famous now, with spectacular promotions and fantastic beefy finance events, and lots of partnership coming in. What else do you expect from this AMA event? what do you want to promote? is there the latest update from project beefy finance?
Any or all of those questions are fine to answer, I realize it’s compound.
superbeefyboy: I’ll pass that one to @xbeefy 🙂
0xbeefy: I think right now we’re setting up the infrastructure as a community, if ppl here are part of the discord group they’ll know what I’m saying, if you’re not in it I would recommend you joining.
The tools being developed, assigning community roles, creating teams working on separate strategies, having part of the group working on possible cross chain strats. It’s setting the ground for an efficient yield machine! Haha
By this I mean, that having a decentralized team working on optimizing the future of beefy, instead of a single team that has a limited output based on time is the goal.
There are new strats coming this week and the next, always trying to develop something new and interesting
ogle: What’s that Discord link, since you mention it?
superbeefyboy: Personally adding to this, when we arrived to BSC, it was very ‘wild westy’.
Members of this group are constantly trying to help others be safe, and alert about potential scams, while making money. I felt a connection, we share the same ethos in a way.
So the AMA is also like visiting some friends 🙂
On to the next question!
In the blockchain world, we see the popularity of ETH and the coming when ETH 2.0 is deployed, transaction fees and network speed issues will be solved, the majority of #NFT and #DEFI projects today are built on ETH. So why is beefy building on BinanceSmartChain (BSC) and not on ETH blockchain?
Sir Beefalot: We started the project in BSC because right now it was the best place to create affordable systems for most people to get yield, where you don’t need +$20k capital to start. That said, we envision both the future of the blockchain, and the future of beefy to be multi-chain. Ethereum 2.0 isn’t going to be perfect. Sharding for example comes with its own set of compromises, for example not being able to get to a project within a different shard in a single tx. I’ve personally built all of my past projects on Ethereum so it’s pretty close to my heart. To recap, as long as a system has demand and we can build something cool there, the beefy community will be there.
0xbeefy: I have a personal opinion regarding this, which is cool, to be part of a team that we know each other and riff about potential futures.
I think that eth2 doesn’t ‘solve’ the problem, it will for sure solve output of transaction and interactions, and has done an amazing job capturing dev talent.
But I believe that there will for some time be a mesh of blockchains, a ‘network of value’ if you will. Projects have only so much space to scale, given constraints of money and geographical location, you have Binance, ethereum, Dot, Solana, RSK and so on, working on creating ecosystems, those will all be interconnected for the medium term future
Our work on beefy, it’s to create tools making it easier for people to interact in this value transfer network in the easiest way possible. And given that complexity will continue to go up, with so many variables, it seems that the project will be very useful for navigating this evolving landscape
ogle: Well one of the next questions I was going to ask was “Is automated cross-chain optimized yield farming something that beefy is considering in the future?” and it looks like we have our answer above as a “yes,” right?
superbeefyboy: yes, BSC is cheap, and eth compatible. But we have also explorer non-solidity options.
We just had to pick a place to start and iterate from there.
0xbeefy: Yes, we’re interested in cross-chain opportunities, there’s a channel in our discord to discuss this specific type of strats. That said there’s nothing implemented just yet as we’ve been focusing on building a core community and yield-farming toolbelt here in BSC
ogle: Well, before we go further — this “we’ve been focusing” comment reminds me of my first question, which included “what are your roles”?
Are all of you developers?
0xbeefy: Btw @cryptogle you’re very good at this, didn't mention it before but thanks for the invite
ogle: Thank you for the nice comment :pray::pray:
Sir Beefalot: @superbeefyboy and myself are the two core developers
@Roastyb is a finance guy who likes to code as well, but it’s not his main thing
ogle: and @xbeefy is the good looks?
0xbeefy: And I bring the coffee
ogle: All of these are needed 🤷🏻♂️
Roastyb: Trying to get every announcement, medium post and tweet ready whenever is needed is hard af. Super and Sirbeef ship code at super human speed so what should be an easy task is actually really demanding hah.
ogle: I bet so
I bet it really is.
superbeefyboy: interpersonal relationships 🙂
Lots of our early community members joined after talking with @xbeefy 🙂
I always mention how he has ‘people power’, and manage to talk honestly with everybody.
ogle: We’re not all computers just yet, so that’s super important!
So just a quick side-pivot for a second — Beefy has its own token, BIFI, which most here probably know and many are likely invested in.
With that said, what is the utility of BIFI token? Is there anything within your ecosystem that increases the demand for BIFI token?
Roastyb: BIFI has a max supply of 80000 tokens already distributed. We chose a straight forward and transparent approach instead of relying on token inflation to provide high APYs which many times it hurts most token holders, and benefit only the ones using the most efficient mechanisms to squeeze the highest possible APY.
BIFI holders participate in all the protocol cashflows. Currently the performance fees charged from vault users and other forms of income are distributed to BIFI stakers. So Beefy is like a company with dividends distributing them to shareholders.
The protocol is also constantly buying BIFI for the treasury, for the BIFI maxi vault, and the LP vault, so 0 inflation + some demand :p
ogle: So as the yield optimizing system works, and it takes its small fees, those are then distributed pro rata to token holders, basically?
Roastyb: Yeah, every vault charge some fees for the service, those fees are distributed to BIFI holders via RewardPool
Sir Beefalot: 0x453D4Ba9a2D594314DF88564248497F7D74d6b2C
There’s the BIFI rewards pool
in case anyone wants to check it out :blush:
Roastyb: The RewardPool receives that fee in wBNB, but we’ve also created the Maxi Vault, which grabs that wBNB, and swaps it for BIFI. So users can get wBNB or more BIFI
ogle: Since there’s now a BSC address in the chat, this makes me think it’s time for a quick question about that —
What is the schedule of the buying and selling and compounding back to LP — as in, how many seconds or minutes does the process itself take?
I know for me, if I’m manually harvesting and reinvesting, it is several clicks and about 60 seconds every time.
Sir beefalot: Each round of the process happens in a single transaction
ogle: So is it an “atomic” transaction, where each part of it is sequential and all must be accomplished for it to go through?
(fyi, we are just over halfway through the questions, so don’t worry, we won’t hold you all day/night)
Sir Beefalot: Yeah exactly, the process itself is started by a function called “harvest” that does all the magic. Anyone can call that function as there’s no harm done to the vault users, and the more times it gets called the better. There’s a small fee paid out to whoever called the function to get community members to do it
ogle: I didn’t know that.
Sir Beefalot: It is done that way, so that users don’t have to depend on a single entity doing the compounding, which could stop providing the service
Probably around 1/2 of all harvesting is done by community right now, and the other half done by our own bot
ogle: They’d do this directly with the contract via bscscan for example
Sir: Some folks do it through bscscan, some have built bots to do it
ogle: Interesting, I had no idea.
Sir Beefalot: We have a bot which is called “The Cowllector”, named by @Roastyb 😂
Roastyb: My greatest achievement
ogle: lol 🙂
So to the topic of security, if we can —
Recently many hackers have been able to break into system security and also have lost a lot of data, how is the #Beefy Finance security system? and How can you ensure the security of investor data from hackers?
superbeefyboy: I can answer about the systems itself, and let @sirbeefalot answer about the Smart Contracts
We track 0 data. I’m personally very vocal about privacy, try to inform all our users to never share addresses etc.
The system itself is designed with ourselves as users in mind. So we have 0 analytics code, we track absolutely nothing.
0xbeefy: Except for @cryptogle , we track everything you do
superbeefyboy: In one of the latest discussions we had in our Discord we touched this a bit, where in order to track performance per address, we would have to add that data to the SC, and I don’t really like that idea. (We are looking at privacy preserving alternatives)
There are obvious points where privacy can’t be ensured, like when you follow us on twitter, or having a telegram account. The platform itself tracks users.
But we internally keep 0 data from users.
ogle: I am being doxed more and more every day it seems anyway 🙁
Got it, thanks @superbeefyboy — and just so we’re not hanging on too long, I’ll leave the answer open for @sirbeefalot to chat about the Smart Contracts when he’s able to, and we can move onto the next question.
What kind of pools will appear in the near future? Any more stablecoin pools?
superbeefyboy: We are working in BAKE and NAR integrations in the near future (as in the next 3 days those should be live)
Venus is also being developed by sirbeef, providing stablecoins alternatives soon.
In a mid-timeframe we are looking at delegated vaults, and ways to optimize that lifecycle (yETH for reference)
ogle: Got it — so you mentioned mid-timeframe, but what about further out? Our next question:
Where do you see BEEFY in 5–10 years?
And a softball in the meantime while someone is answering the longer question: Do you have any plans to release special/limited edition Beefy NFT’s?
0xbeefy: I’ll do the short one, yes. We have some art that we’ve already given to members of the beefy community, but there’s many more. We were just waiting for an NFT platform to be ready, so we didn’t have to use rarible or others on eth
superbeefyboy: @sirbeefalot will give a detailed answer.
but my pov currently, if YFI is Windows built as a cathedral. We are Linux, aiming to be a defi bazaar.
ogle: lol, interesting analogue
Who’d have thunk developers wanna be more like Linux?
Sir Beefalot: Yeah, we built beefy because other yield optimizers are going about strat innovation in a manner of “innovation by commitee”. Where there’s 1 or at most 2 strats for a given asset, which has to be pre-approved by a group of devs. Innovation on the other hand happens in markets. So what our long term vision for beefy is that of a marketplace or bazaar, where developers can deploy strategies, can use other people’s strategies like legos as well. And we can have various systems in place to provide signaling for users on what’s better, who has a good track record, etc.
I don’t know exactly what’s gonna happen in 10 years, but that’s probably were we’re heading in the next few years
superbeefyboy: The app store works following part of this model too 🙂
both hobbists and Adobe have access to the same potential audience. It’s the ratings, reviews etc that add value to each app
In our case, that is audits, strategitst reputation, implementation, asset used, etc.
ogle :I see — well, I don’t wanna be presumptuous, but does that actually get to the answer of our next question? —
What project/s do you consider as your biggest competitor? How will you win against them?
What I mean is — is your goal to make it more beneficial to just use your system as a strategist, than to compete?
Sir Beefalot: Yeah, building a marketplace requires a jumpstart too, right now we’re providing the strats to bring users. Once we have enough eyeballs and capital in the platform, we can cultivate some strategists and that can get the positive feedback loop going
0xbeefy: I think in the long term, like I said before about our current steps, building of a decentralized community is key. Because it allows a growth and a market efficiency that’s impossible to stop.
superbeefyboy: Implementing a strategy normally takes a few days max. If you have a large audience, taking a % of gains will be incredibly profitable.
Building the system itself, and scaling is a different beast, that you only know if you have ever worked in a project that scaled 🙂
ogle: I guess I’m thinking about it from the POV of a SWOT analysis in typical business — where you identify Strengths, Weaknesses, Opportunities, and Threats.
And the question implies that other competitors are threats. Whereas your answer above, to me, implies that your feeling is that competitors are actually opportunities, since they represent strategists who could use your system.
superbeefyboy: So for somebody that can code smart contracts, working 2 days for a % of a large TVL is a lot more profitable, than doing the orchestration and scaling infrastructure, dealing with users requests, etc.
Sir Beefalot: Yeah, something like this :blush:
It’s also better from the standpoint of the user. Because if you interact with a vault in a new project, there is risk in the infrastructure, risk with the UI, the team rugging, smart contract risk, etc.
0xbeefy: I’ve been in crypto for a few years, and one thing I can say is that the idea of competitors, or partners, it all gets blurred with a constantly evolving landscape of problems and opportunities. For people following beefy, you’ll see the adaptability of the team and community. And that’s the key thing.
There’s different ‘competitors’ which are optimizing value distribution, but is a marathon not a sprint. So I would always put my money on that.
Sir Beefalot: but if you interact with a platform that already has track record, the risk is focused in the smart contract. And if said platform provides good mechanisms to detect quality and asses that risk, it can be much better for you as a user
ogle: Thanks a lot for the clarity from different angles on that!
One last question, then you’re off the hook, though you are welcome to stick around and answer questions directly from the community in real-time if you like of course.
Currently, some project have policies for their ambassadors to create a contribution and attract recognition for the project! So the Beefy plans to implement policies and incentives for your ambassadors?
Roastyb: That’s probably for the community to decide. We have a treasury which receives a % of the vault fees, that treasury holds BIFI and wBNB. Those funds can be used to incentivize ambassadors, if community say so 😊
0xbeefy: There’s a cool idea being discussed right now. We have weekly community topics that are talked about, and it’s to use something like sourcecred. That’s a great project that allows you to distribute tokens based on contributions (which goes into the idea of decentralizing the project) and those contributors receive part of the project earnings
Sir Beefalot: Yeah, I very much like the idea of using SourceCred for our community
It’s an awesome open source tool/project to track all types of contributions in a community
ogle: Cool idea 🙂
Ok, well thank you guys so much for coming and chatting!
And thank you to the Gemz members for not interrupting! Makes my and the interviewees’ lives easier, believe me!
As I mentioned a minute ago, you guys are welcome to stick around and answer questions from the community or just chat or whatever, but I know you’re all quite busy, so no obligation to do so.
In any case, it’s been a joy having you here, and we really appreciate the candor and openness.
Sir Beefalot: Nice, tyty for having us ogle!
superbeefyboy: ty @cryptogle you are an amazing host 🙂
we’ll stay around for any question, also dms are open of course 🙂
0xbeefy:Well I’ll take a second to thank you again @cryptogle what you do for the community of bsc projects is awesome!
ogle: thank you @sirbeefalot @superbeefyboy @xbeefy for the nice comments!
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