Welcome to the YFX EXCLUSIVE AMA wih The Gem Hunters! We would like to thank the team for coming today and sharing information with the community!
1. Let's start off with a introduction of what YFX is actually all about. Please give us a bite sized run down.
Let me put this in a simple sentence, YFX is the first DEX that offer up to 100x trading leverage on crypto derivatives trading. First, YFX is a DEX, which all trades being done on-chain. Second, YFX is the DEX capable offer 100x trading leverage. This haven’t been done by any DEX or any DEX. Third, YFX is focus on crypto derivatives trading. Nowadays there are many swaps, most of them are copy from Uniswap. We have developed our own DEX which can fit derivatives trading.
2. Can you give us some information on the team and their backgrounds please?
Well… We choice to be an anonymous team for the reason that derivatives trading is a highly regulated industry, to be a defi project, the first thing is anti-censorship. We do not want SEC or CFTC find us, that’s why we hide our team member’s name. We have been a team developing crypto trading system since 2017, we have been selling crypto exchange code and serve as tech support team for years. Last year, we had this idea to build a DEX for derivatives trading, because on the world of defi, you do not need to issue a token and pump it to sky-high to get attention, your product will speak for you. We have work on it for 8 months since then, and now we have YFX.
3. To give a better understanding of the huge potential could you try and define the size of the market in which you're trying to tap in?
Let me put in this way. Before Uniswap, crypto futures trading volume has been 10x as spot trading. Under this circumstance, I believe defi crypto futures daily trading volume could reach 10x as Uniswap’s daily trading volume. We are come to this market early, basically there’s no major competitors.
4. Derivates and synthetic assets trading are a very hot topic right now. Where do you see the differences of decentralized platforms compared to their centralized counterparts when it comes to derivates trading? What advantages do users have on a decentralized platform?
The most obvious different between derivatives trading in CEX and DEX is that DEX do not require any type of KYC. This is very crucial since not many exchanges in the U.S. could offer margin trade to retail investor. Even Coinbase had disable margin trading from last November. So, in my opinion, DEX create an opportunity to let people trade what they want from wherever in the world. To trade on a DEX also give you full control of your assets. There’s no third party can massed up your assets. There always be some problem when you try to withdraw from CEX, just in last weekend, Binance suspend withdraw for couple hours. What I can say is our smart contract (audited by Cetik) is much more secure than to deposit in CEX.
5. Are there any limitations when you use a decentralized derivates Platform compared to a centralized one due to the technical difficulties of its on-chain nature?
I cannot think of any limitation when you are trading on-chain. After all you can control your money by smart contract and all these trades are transparent on-chain data. On the leverage, we are offer the same leverage as CEX which is from 1x to 100x. If I have to say a limitation is you must have gas fee in your wallet, since DEX not like CEX, if you trade USDT contract on TRON net, you need to have TRX pay gas fee. It is a little inconvenient.
6. Uniswap took the exchange market by storm and is gaining more and more popularity. Are there any similarities between YFX and Uniswap or is it something totally different?
For people who used our trading platform at the first time, he/she would find YFX is quite like Uniswap, since we both use an AMM for trade. Unlike Uniswap’s Constant Market Maker, we use a Quoted Index Price and Constant Integral Based Automated Market Maker, which short for QICAMM. It works similar to AMM but it can get price in high frequency and do the margin trading, instead of spot trading.
7. Can you give us your personal outlook on the market please? Do you think decentralized platforms are going to slowly take the market share of centralized juggernauts like Binances, Huobi and FTX?
For now, DeFi is still not been in the mainstream market in the crypto world. It’s like, high school students talk about sex: everyone heard of it, everyone love to talk about it, everyone seemed already have tried. But most people were just trading defi tokens on Uniswap. I think it will take some time for defi to take over the market since defi has been too complicated for ordinary people to understand. But from what I saw, CEX like Binance, Huobi or OKEX start to build defi project on their own blockchain after Uniswap too a lot of trading from them. I think these CEX notice that it’s hard for them to attract people or project when compare with Uniswap, especially many defi project doesn’t have a team, CEXs can’t play their old tricks. Also, these CEXs are open to developers like us to build defi app on their block. We are about to launch a version on Huobi Heco Chain in about 24 hours and Huobi is glad to share their user with us. I think everyone in the industry knows that defi is the future.