AMA Recap Crypto Library with DEMETER


On 27th September 2021, DEMETER conducted an AMA in the Crypto Library Community. Our guest is Darrel. Lots of questions as usual from the Community about DEMETER progress. The DEMETER team took part in a very interesting AMA session which included introductions, questions from twitter, and a live AMA session with the Crypto Library community. If you missed the AMA in person, read this recap for a deeper insight into DEMETER.

Let’s take a look at the most interesting points of our conversation. 

Crypto Library Team : So, before we start the AMA could you please introduce yourself to our community?

Darrel (DEMETER) : Hi everyone, my name is Darrel, I am from Gold Coast Australia. I have two masters degrees in Business and Marketing and have been in the marketing field for about 6 years now.
My first encounter with blockchain happened 2 years ago, when a few friends of mine came and asked me to help them with some marketing work for their new crypto startups. That was when I started to learn about this mysterious industry and stayed in it ever since. I got to know Demeter and the team through a friend a while ago and am very lucky to become part of this. I am excited to work alongside a group of talented and passionate people and help bring this project to life. We all truly believe in this project and I am sure it will not disappoint. So thank you Crypto Library Discussion for giving me this opportunity to chat to you about Demeter and give you a little sneak peak before the great day comes.
Crypto Library Team : What is Demeter? and how your team can create this project?

Darrel (DEMETER) : Demeter is a decentralized cryptocurrency marketplace protocol based on the Heco network, dedicated to providing a more stable, secure and decentralized stablecoin solution. We aim to become the "MakerDAO on the HECO Network “and to solve the problem of the lack of cost-effective stablecoins on HECO and the inefficient use of DeFi liquidity farming assets. However, we are not stopping at just being "another MakerDAO", we want to offer our users much more. DEMETER has made further innovations on top of MakerDAO and Compoud, introducing unique features such as Credit Rating Model (DCRM), Dynamic Interest Rate Supply Mechanism (DIRSM), Shared Revenue-Treasury double layer governance model, inflation tax, etc. to provide users with more convenient, efficient and well-rounded lending services.

Crypto Library Team : What are the special features and advantages does Demeter want to offer?

Darrel (DEMETER) : Demeter has our very unique features and advantages that set us apart from many others in the market. First of all, Demeter provides our users a better decentralized stablecoin solution. Demeter, like MakerDAO, through over-collateralising, all issued stablecoins are backed by sufficient assets, the information on the chain is open and transparent, and there is no room for foul play. Secondly, other collateralized stablecoins such as DAI or VAI are often out of anchorage from time to time, especially VAI. It is at negative premium level for a long time, we believe this kind of de-anchoring is unjustified for stablecoins, therefore we designed the Target Rate Feedback Mechanism (TRFM) and Dynamic Interest Rate Supply Mechanism (DIRSM) to make sure that the value of DUSD would not drift away from USD. The protocol is designed to maximize efficiency of capital utilization. From DeFi Summer 2020 to DeFi Autumn 2021, we can see that DeFi LEGO has been refined like never before, with DeFi's total TVL exceeding $110 billion, a large amount of assets being invested in various protocols, which is mainly used by users to provide liquidity for trading needs. For example, MDEX alone has a TVL of $1.47 billion on HECO. Although these LP assets have poor liquidity, they do make very good credit collateral. In V1, Demeter will support some high-quality LP assets as collateral, while in V2 and V3, the collateral assets will also include board vouchers, node voting vouchers, structured financial assets, etc., maximizing the potential of the assets in the DeFi ecosystem Our users will receive genuine, secure and sustainable returns from the protocol. In terms of liquidity mining, Demeter has a well-designed mining model that provides participants in the protocol with ample rewards, including depositing and borrowing, liquidity mining, and minting. Users can also participate through other projects within the HECO ecosystem and pick other approaches to participate such as single-token mining and leveraged mining based on their risk preferences. Demeter is expected to be one of the highest yielding DeFi projects on HECO once it is live. It should be specifically noted that we believe a healthy DeFi project necessarily needs to rely on genuine cash inflows from actual business, rather than maintaining a phony boom by constantly issuing new tokens. Therefore, Demeter's DAO is not within the scope of mining. Instead, the DAO rewards are purely real project revenues, with revenue sources that include.

Crypto Library Team : Please tell us about $DMT and $DUSD token! What are the token use-case, distribution, and also where we can buy it?

Darrel (DEMETER) : The world would be a preposterous place if we use the stocks for shopping, while electing a president based on the amount of dollars each person holds in a US election. So we think it is necessary to separate the circulation and governance attributes of tokens. DUSD is Demeter’s stablecoin. Valuing its security and sustainability, DUSD is generated by overcollateralization. Minting DUSD is equivalent to lending $1USD of debt, and the credit will be shared between minting and borrowing. In order to maintain the 1:1 anchoring of DUSD to USD, Demeter has established a series of monetary policies, including the Target Rate Feedback Mechanism (TRFM) and Dynamic Interest Rate Supply Mechanism. The value of DUSD is backed by a basket of cryptocurrency combinations, which is not only differentiated from the collateralized fiat currencies or a single cryptocurrency on other decentralized stablecoin protocols, but also makes DUSD highly decentralized, faster, safer, more cost-efficient, and easier to use through the HECO network. DMT is Demeter protocol's governance token, similar to the MakerDao’s Maker Token (MKR). DMT can be used by the holders to:
  • Participate in Governance Voting on various matters within the protocol.
  • Participate in DAO Treasury Allocation.
  • Participate in incentives allocation from DAO revenue pool
Users can earn rewards by staking DMT, which is equivalent to bank deposits in the centralized world. Similarly, reward yours vary depending on the term, except that staking DMT will have higher flexibility as with higher returns.

Crypto Library Team : Could you give us some information about your roadmap, your milestones, and also your future plans?

Darrel (DEMETER) :  Here's:
2nd Quarter of 2021:
  • Form core team members, and initiate project development.
  • Complete project financing.
3rd Quarter of 2021
  • Complete Demeter core function development testing and contract audit
  • IDO distribution on several reputable platforms
  • Deploy HECO network Version1. (V1) and start liquidity mining
  • Expand eco-partners, increase DUSD usage and usage scenarios
4th Quarter of 2021
  • Deploy Heco network Version 2. (V2) to support scalable Demeter bridge and cross-chain lending.
  • Collaborate with multiple eco-infrastructures to expand DUSD usage scenarios
  • Build richer credit tiers and optimize Demeter interest rate markets 
  • DUSD lands on more mainstream trading platforms and eco-networks, creating more convenient exchange venues for users.
  • Launch graded Funds & fixed revenue bonds
  • Launching the bonding agreement for non-standard assets, providing the financial market with high efficiency and liquidity for certified staking and refinancing, future cash flow bonds and convertible bonds
  • Explore smart pools, fixed interest rate and agencies, off-chain assets, on-chain lending and other businesses.
First of all, we need to become MakerDAO + Compound on HECO, this means that our lending market size will grow to be the biggest on the HECO network, and at the same time, the stablecoin DUSD will be used in a large scale. This is the end of our short-term goal and the starting point of our long-term goal. We will explore more new areas in the future, including cross-chain lending, synthetic assets and NFT assets lending, structured financial products, etc. I think this is a never-ending journey, our biggest goal is to keep exceeding ourselves!
Crypto Library Team : What method does #Demeter use to control the volume of distribution and supply-demand to maintain and ensure the value of $DMT? What aspects of #Demeter are currently focusing on?

Darrel (DEMETER) : I think this picture can answer this question.
For more details on tokenomics, please feel free to check out:
We will always care about the safety of the product, and the scenarios of DMT&DUSD. Currently we focus on the development of the community and hope more people to understand and join us.

Crypto Library Team : How did you overcome the obstacles in the development of this project? Because many projects look great on their whitepapers & Roadmaps, but when they jump right in, many fail before their mission and vision is accomplished. What can you assure holders and investors of?

Darrel (DEMETER) : Demeter is not solely a decentralized cryptocurrency protocol, but we are also in the process of creating an interest rate market. Decentralized stablecoin & lending are our two main business segments at the moment, and these businesses complement each other. Currently DUSD has a cumulative minting volume of over $120 million and is supported by MDEX, Butterswap, Booster, Nextype, Coinwind and other platforms within the HECO ecosystem. Currently DUSD has a cumulative minting volume of over $120 million and is supported by MDEX, Butterswap, Booster, Nextype, Coinwind and other platforms within the HECO ecosystem. We have also exceeded $110 million in cumulative lending volume just a week after launch, so from what we have seen so far, our business has gained the recognition and support of market users. In the future, we will still work around promoting DUSD, looking for cross-chain partners and developing DUSD application scenarios. Just as the question itself, we have also seen some projects in the market with plans that ultimately did not come to fruition for various reasons. However, the Demter team is confident in the future of Defi World and has a clear understanding of the positioning and functions of the product itself, so the product and business route we planned was completely set based on realistic goals. And of course, we also considered the systematic risks from the market. But as you can see, even when the market and public sentiment were relatively bad yesterday, the user volume of our TVL was NOT greatly affected, which shows that Demeter has been approved by the majority of users. As for the challenges ahead, we are prepared with a number of solutions as well to ensure that our plans will fall into place as planned. We hope to give our users a better product that people can trust! thank you!
Crypto Library Team : Are there any recent activities in Demeter?

Darrel (DEMETER) : Yes! Currently we have activities on going! Announcing the #Demeter user tutorial making contest! 9 Winners to Share $3,450u worth of $DMT for creating a tutorial on #Demeter! Start Time: 23rd Sep 2021 15:00 SGT EndTime: 30th Sep 2021 15:00 SGT. Check the full details below:
Crypto Library Team : What is the future like for Demeter?

Darrel (DEMETER) : Demeter has already completed core functional development testing and auditing. We are in the process of deploying Demeter mainnet (V1) on the HECO network and launching liquidity mining. And within the year, Demeter will complete the deployment of Demeter mainnet V2, supporting the scalable Datemer bridge and cross-chain lending, extending Demeter's frontline to ETH, BSC, Polygan and other public blockchains, building a diverse ecosystem that adapts to a multi-chain environment. By 2022, Demeter will launch graded funds and fixed income bonds. Non-standard assets bonding protocol will go live and creates a financial market that provides high liquidity for certified staking, refinancing, future cash flow bonds and convertible bonds. 

Crypto Library Team : What is the token model of Demeter?

Darrel (DEMETER) : DMT is the protocol's governance token, which can be mined and has the following uses:
  • Participate in Governance Voting.
  • Participate in incentives allocation from DAO revenue pool.
  • Participate in DAO Treasury Allocation.
DUSD is a decentralized stablecoin within the Demeter system. It can be mined from lending and minting of stablecoins, etc. The main features are:
  • Minting stablecoin with low cost
  • Can be circulated in HECO's rich application scenarios.
Crypto Library Team : I noticed you've done a lot of what do you hope to gain from doing so many AMAs, and what are your community goals?

Darrel (DEMETER) : I hope to tell users from the AMA, who we are, what we are doing, and what Demeter will bring to users. For community goals, we certainly hope that more and more people will know about Demeter and use it to bring us more feedback and help us grow.

Crypto Library Team : What is TRFM? Can you explain this mechanism in detail?

Darrel (DEMETER) : TRFM (Target Rate Feedback Mechanism). TRFM will be employed by Demeter in order to maintain the Target Price of $1 DUSD is $1USD: when the DUSD price falls below $1, the collateral ratio for the CDP (Collateral Debt Position) decreases and less DUSD will be available for the same collateral, which corresponds to a decrease in supply. And when the price of DUSD falls below $1, the stability fee required to hold DUSD increases, so as the cost of holding it, prompting users to buy back DUSD to repay it. DUSD will be supplied at a dynamic interest rate, with an annual over-provision rate consistent with the stability fees, with the inflationary share going entirely to the DAO revenue pool and the DAO Treasury, without any subjective malicious increases. 
In addition, Demeter has set up a mechanism for the overprovision allocation rate, where a certain percentage (0%-100%) of the overprovision revenue along with a portion of the governance tokens will go into the DAO Treasury, thus ensuring that the actual annual overprovision rate is in an adjustable state.