At 4 pm on December 15, 2020, Su Ye, the founder of BlockArk, had a conversation with Rick Mortensen, the co-founder of SCIFI, and held an AMA themed event on "The Exponential World under the Punk Design of SCIFI, which is about to be public offering" in the Uniswap Chinese community. This live broadcast event is supported by BlockArk and BitMax, and supported by ChainNews, Odaily, and BlockBeats media. The content of the live broadcast sharing is organized as follows:
SCIFI's AMA officially started this afternoon, welcome to Rick, the co-founder of Scifi!
Su Ye: The SCIFI project may be the most avant-garde project I have ever seen. The blue one above is their official website.
Su Ye: What SCIFI does is a basket of currency indices. After completing the private placement, SCIFI will be launched on Uniswap at 9-12 o'clock tonight.
Su Ye: Hello Rick, welcome to the Chinese community of Uniswap. Let's start with a one-sentence introduction to the SCIFI Finance. It is believed that most of my friends will find it difficult to know what this project is for the first time after they enter the official website. You can also introduce your team members to us, and also about the design of your website.
Hello Rick, welcome to the Uniswap Chinese community, first give us a brief introduction to the SCIFI Finance project in one sentence. I believe that most of my friends will find it difficult to know what this project does when they enter the official website. If it is convenient, you can also introduce your team members to us. Of course, you can also tell us about the design ideas of your official website.
Rick：Hi everyone! First of all, thank you so much for having us here, we appreciate the opportunity to tell you and your community more about the project. I am leading the business development and partnership topics at SCIFI and SPICE. I’ve been working in the broader crypto ecosystem full time since 2017. With my background in finance, I’m a big believer in index products as a gateway for investors. This is what excites me about SCIFI and is the main reason why I came aboard.
Hi guys! First of all, I would like to thank BlockArk for the invitation, and also thank you for this opportunity to introduce information about the SCIFI project. I am mainly responsible for business development and partnership in SCIFI and SPICE. I have been working full-time in the crypto ecosystem since 2017. With my knowledge and background in the financial field, I firmly believe that index products can be the gateway for investors. This is why I am excited about SCIFI and the main reason why I joined SCIFI.
Rick：There are a good two handfuls of individuals who dedicate a meaningful amount of time to this project. Most notably: Lucky Picard is the ship’s finance lead, Prince Valium the Comms person, HAL2020 is the tech lead, Ender Wiggin the product wizard and Dark Helmet is the community lead.
There were a handful of people who devoted a lot of time to the project. Mainly: Lucky Picard is the treasurer of the project, Prince Valium is the communications guy, HAL2020 is the technical lead, Ender Wiggin is the product guide, and Dark Helmet is the community lead.
Rick：Yes, the website is quite special. We chose to create a brand on the backdrop of a space narrative. We thought it is a fun way to build a foundation on which to expand the narrative of the project.
Yes, our website is a little special. We chose to create this brand in the context of a spatial narrative. We thought it was a fun way to build a narrative for an expanded project.
Su Ye: Can you tell us the operating mechanism of Scifi? What makes up this basket of cryptocurrency? Your introduction has given us so much mystery that users are at a loss, so give us some ideas and directions :)
Can you tell us a little bit about how Scifi works? What does this package of digital currencies consist of? Your previous introduction gave too much sense of mystery, so that users are at a loss, give us some ideas and directions.
Rick：SCIFI is essentially a hand-curated, DAO-governed crypto index. As with traditional finance and ETFs, we see a similar movement in the digital asset space. Even for us who are working in the industry full time, selecting the right assets to invest in can be a daunting task. This is why we believe that curating an index for the community adds a lot of value. Investors can do a diversified investment by buying just one token.
SCIFI is essentially a cryptographic index managed by the DAO. As with traditional finance and ETFs, we are seeing similar changes in the digital asset space. Even for those of us who work in the crypto industry full-time, choosing the right assets to invest in can be a daunting task. That's why we think having an index for the community can add a lot of value. Investors only need to purchase one token to diversify their investments.
Rick：SCIFI is governed by a governance token called $SPICE. The SPICE DAO will have governance powers with regards to the steering of the SCIFI index, creating new indices and controlling the usage of the project treasury.
SCIFI is controlled by a governance token known as $SPICE. SPICE DAO will have management rights to manage the SCIFI index, create new indexes and control the use of project funds.
Su Ye: Is SCIFI entirely self-built? Why not build the index from an existing platform? PowerPool or Balancer.
Is SCIFI a completely self-contained contract? Why not build an index through existing platforms? Such as PowerPool or Balancer.
Rick：SCIFI is not entirely built from scratch. We leverage existing and battle tested libraries and added existing code where required. The smart contracts were tested by an audit firm that has in the past done work for names like MakerDAO, 1Inch or DIA. Read up on the details here:
https://scifinance.medium.com/smart-contract-audit-db97b8981b8b
SCIFI wasn't built entirely from scratch. We leverage existing and tested libraries and add to existing code where required. These smart contracts have been tested by an auditing company that has done audits for well-known projects such as MakerDAO, 1Inch or DIA in the past. More details:
https://scifinance.medium.com/smart-contract-audit-db97b8981b8b
Su Ye: Due to the popularity of DeFi, there have been many related indexes and related projects in the market, such as DPI index made by DeFi Pulse, sDEFI synthetic asset built based on Synthetix, and even YETI, Year Ecological index, appeared on PowerPool due to the powerful influence of AC. What are the advantages of Scifi over these indexes?
Due to the popularity of DeFi, many related indexes and related projects have appeared in the market, such as the DPI index made by DeFi Pulse, the sDEFI synthetic asset based on Synthetix, and even the Year ecology appeared on PowerPool because of the strong influence of AC Index YETI. What advantages does Scifi have over these basket digital currency indices?
Rick：First off, we believe that crypto will see a similar development as the traditional financial space did with ETFs. Creating gateways to follow diversified and/or specialised investment strategies is a great way to create access for investors that may not have the resources and capacity to do all that research for themselves. So we will see many many indices coming up in the next years with different strategies. SCIFI is the first index that gives a combination of expert curation, DAO governance, full ocollateralisation and zero fees. We believe that especially in the fast moving and highly technologies world of crypto, leveraging the power of experts has vast advantages.
First, we believe we will see similar developments in the cryptocurrency space as in traditional finance and ETFs. Creating a portal that follows a diversified and/or specialized investment strategy is a great way to provide access to investors who may not have the resources and capacity to do their own research. Therefore, we will see many indices with different strategies in the next few years. SCIFI is the first index that combines expert management, DAO governance, full collateralization and zero fees. We believe that, especially in the fast-moving high-tech world, harnessing the power of experts has enormous advantages.
Su Ye: We saw that SCIFI Finance actually has two kinds of tokens. Could you tell us about its dual token mechanism? What are the functions of SCIFI and SPICE? How do you give value to each other?
We have seen that SCIFI Finance actually has two types of tokens. Can you tell us about its dual token mechanism? What are the functions of SCIFI and SPICE? How to give value to each other?
Rick：SCIFI itself is the actual index token. The smart contract holds the constituents of the assets, they are actually locked into the contract, so it is fully collateralised and one SCIFI can always be redeemed for its constituents through a smart contract interaction.
SCIFI itself is an index token. The smart contract holds the component of the asset, and the asset is actually locked in the contract, so it is already in a fully pledged state, and a SCIFI asset component can always be redeemed through smart contract interaction.
Rick：SCIFI is governed by a governance token called $SPICE. The SPICE DAO will have governance powers with regards to the steering of the SCIFI index, creating new indices and controlling the usage of the project treasury.
SCIFI is controlled by a governance token called $SPICE. SPICE DAO will have management rights to manage the SCIFI index, create new indexes and control the use of project funds.
Su Ye: I think we may spend more time on the token mechanism. What is the pricing mechanism of SCIFI? Will it exist in both the primary and secondary markets, as ETFs do? Users can redeem the SCIFI either by subscribing to the SCIFI with a digital currency basket or by exchanging the SCIFI with a digital currency basket. Does that mean there is arbitrage room?
I think we may have more time to discuss the token mechanism. What is the pricing mechanism of SCIFI? Does it, like ETF, exist in both the primary market and the secondary market? Can users perform two-way exchange, that is, use a package of digital currencies to subscribe to SCIFI or exchange SCIFI for a package of digital currencies. We see that SCIFI can be traded on Uniswap, does that mean there is room for arbitrage?
Rick：SCIFI will be initially priced according to the Net Asset Value of its constituents. However once it starts trading on DEXs it can happen that the token price is higher or lower than the Net Asset Value. When it is, there will be an incentive to either buy the token, redeem it for the constituents and sell them on the open market, or vice versa, mint SCIFI by posting the constituents to the smart contract and then selling SCIFI on the open market. This arbitrage mechanism essentially decentralises the role of the market maker.
SCIFI will conduct initial pricing based on the component net value of its assets. However, once it starts trading on the DEX, it may happen that the price of the token is higher or lower than the NAV. In this case, there would be an incentive to buy tokens, redeem them for other tokens of their constituents, and then sell them on the open market, and vice versa, by issuing their constituent tokens to the smart The contract comes up to mint SCIFI, and then sells SCIFI in the open market for arbitrage. This arbitrage mechanism essentially decentralizes the role of market makers.
Su Ye: You have named the SCIFI's governance body"Galactic Council". Could you tell us what the governance mechanism of the DAO is like? How will this energize SPICE?
You named the governance body of SCIFI the Galactic Council (Galactic Council). Can you tell us about the governance mechanism of this DAO? How will this empower SPICE?
Rick：The Galactic Council is made up of a group of experts and community leaders that we call Senators. They are leading actors in the industry that have a deep understanding of the space and a significant thought leadership and reach. Their role is to support mission control with their knowledge, educate their communities and amplify the message of SPICE and SCIFI.
The Galactic Council is made up of a group of experts and community leaders we call Senators. They are the best in the industry, they have a deep understanding of the industry, and have leadership and certain influence in the industry. Their role is to use their knowledge to support mission control, educate and lead their communities to expand the impact of SPICE and SCIFI information.
Rick：The Senators don’t strictly have a governance role, this falls upon the SPICE DAO, so all the holders of SPICE. The Galactic Council will be part of the SPICE DAO. We are excited to have such a talented group of Senators assembled, They include names like The Crypto Dog, The Wolf of all Streets, GAINS Associates, Young and Investing and more.
Senators do not strictly assume a management role, which is the responsibility of SPICE DAO, so all holders of SPICE should assume the responsibility of management. The Galactic Council will be part of the SPICE DAO. We are excited to bring together such a talented panel of Senators, including The Crypto Dog, Walls of All Streets, GAINS Associates, Young and Investing, and more.
Su Ye: Everyone is very interested in your public offering mechanism, which is named BIG BANG. Could you please introduce this mechanism to us and how users should participate?
Everyone must be very interested in your public offering mechanism. You named it BIG BANG. Can you introduce this mechanism to us and how users can participate?
Rick：For the public sale we leverage Uniswap liquidity pools to create a price discovery mechanism and have a know and simple-to-use gateway to the offering. The Liquidity pool initially provides 500K SPICE and 700K USDC, setting the price at an initial 1,40 USDC / SPICE. As SPICE is bought, the ratio changes and thus the price increases, reflecting the demand for the token. At certain levels, we provide limit sell orders that will give access to SPICE at a stable price. Once absorbed, these levels will provide something like price floors, where the sell-off of the token is strongly disincentivised. All the SPICE that won’t be sold in the limit orders will be burned and thus contract supply and positively impact price for all holders. This is a maximum of 2,86M SPICE. Here are the details about the offering: https://scifinance.medium.com/archived-the-big-bang-831ed0b54922 The Big Bang will take place soon, keep your eyes peeled for an announcement on our channels.
For the public sale, we leverage Uniswap liquidity pools to create a price discovery mechanism and have an easy-to-use portal of known products. The liquidity pool initially offers 500K of SPICE and 700K of USDC, setting the initial price at 1.40 USDC/SPICE. When buying SPICE, the ratio changes, so the price increases, reflecting demand for the token. At certain times, we will provide limit sell orders so that everyone can buy SPICE at a stable price. Once bought out, these time periods will provide something like a price floor, in which case token dumping is strongly discouraged. All unsold SPICE in the limit order will be burned, so the contract supply in this case will have a positive impact on all holders. Up to 2.86M SPICE. Here are the details about the product:https://scifinance.medium.com/archived-the-big-bang-831ed0b54922【Free question and answer session】
【Free question and answer session】
Su Ye: This AMA is also the closest to our public offering~ I hope everyone can involve in. ok that concludes all our Q&A sessions. You must have a lot of questions, so you can ask Rick freely below.
@Jimmy: Is it possible to choose the components of the index, or to give users some freedom in the choice of the components of the index?
Is it possible to choose the components of the index by yourself, or to give users some freedom in the selection of index components?
Rick：SPICE is designed to be DAO governed. SCIFI is the first index issued by the SPICE DAO. Currently the selection of constitutes in SCIFI are decided by the mission control, but we are already involving the community by crowd sourcing project recomendations. In the coming year we will decentralised the sourcing and dcecision process on SCIFI. New indices from the SPICE DAO could be from the start community sourced and selected. Feel free to suggest strategies you want to see issued.
SPICE is controlled by DAO. SCIFI is the first index released by SPICEDAO. Currently, the composition of SCIFI is determined entirely by committee, but we have engaged the community through project recommendations. In the coming year, we will conduct SCIFI's procurement and decision-making process in a centralized manner. New indices from SPICE DAO can be selected from the initial community. You can always come up with the strategy you want to see.
@Risler：It's still confusing. Could you explain in details how we investors should participate in crowdsale?
Still don't get it. Is there a tutorial on how to subscribe privately?
Rick：Yes, with pleasure. We will announce today between 21.00-23.00 that the sale is going live. The sale will last for 24 hrs. You will be able to buy SPICE tokens through Uniswap. The link to the Uniswap will be share in our announcement channel. Please be aware that there arfe fake tokens out there. Please only use the link from the announcement channel: https://****/sci_finance
OK, happy to oblige. We will be announcing that the auction will be live-streamed today between 21.00-23.00. The auction will last 24 hours. You can buy SPICE tokens through Uniswap. The contract address will be shared on our announcement channel. Be aware that there are a lot of fake tokens out there now. Please only use links from announcement channels:https://****/sci_finance
@李伟：If you buy SCIFI, can you redeem a basket of currencies represented by SCIFI? Will it start from 9pm to 11pm tonight or will it begin sometime between 9pm and 11pm for 24 hours?
If I buy SCIFI, can I redeem the basket of currencies represented by SCIFI? Does it start at 9pm to 11pm today, or sometime between 9pm and 11pm for 24 hours?
Rick：Today is the sale of SPICE, the governance token of SCIFI will start. With the proceeds from the sale we will buy the project tokens and mint SCIFI - approximately 96hrs after the closing of the SPICE sale. Then you can buy SCIFI through uniswap after that. You can also mint SCIFI yourself (only makes sense if you have a lot of the tokens from the underlying projects) and you can also reedem SCIFI against the tokens.
Today is the sales day of SPICE, and the governance token of SCIFI will be launched soon. Funds raised will be used to purchase project tokens and mint SCIFI - end of SPICE sale approximately 96 hours later. Then you can also buy SCIFI through uniswap. You can also mint SCIFI yourself (when you have a large amount of SPICE tokens), and you can also re-mint SCIFI pair tokens.
@李伟：If you buy SCIFI, can you redeem a basket of currencies represented by SCIFI? Will it start from 9pm to 11pm tonight or will it begin sometime between 9pm and 11pm for 24 hours?
Other teams use photos, why did you use this avatar? What means?
Rick：We are a team of contributors that have been in the crypto space, building successful projects. We all though beliueve, that we are critical in the set-up of SPICE and SCIFI, but along the way we want the community to be in charge. Hence we created a DAO. This is also the reason we do not want to put to much emphasis on us as individuals but the product itself. I guess it speaks for itself that the most known influencer in the space are becoming senators - showing their trust.
We are a team that has already had successful construction projects. Although we believe that the team is critical in building the relationship between SPICE and SCIFI, we still want the community to be the main project owner in this process. So we create a DAO. This is why we don't want to emphasize too much on the product itself. I think that in itself speaks for itself as the most influential person in the field becoming a senator.
@小仙女: Why did you use this avatar as profile photo? What does that mean?
Does this mean that a minted basket of currencies cannot be redeemed in reverse?
Rick：Yes, you can redeem. But it cost gas. So if you just want to liquidate for 100USD than its better to sell through uniswap you position. But you can redeem SCIFI for its constitutes. Its an important safety mechanism.
Yes, you can redeem it. But it needs to consume gas. So, if you just want to close the position of 100USD, you can sell your position through uniswap, but you can also choose to redeem a basket of currencies. It is an important security mechanism.
Su Ye: Thank you for your active questions. Our free question-and-answer session is here first. If you still have unanswered questions, you can go to SCIFI’s telegram group to communicate~
SCIFI Announcement channel: https://****/sci_finance
SCIFI Community channel: https://****/sci_finance_trading
