Feeder Finance Daily Update May 20, 2021

Alright Feeders, it’s been a busy day and many of you guys chipped in with a ton of great ideas and suggestions.  Let’s just go through them one-by-one.

Let's start with a serious but important topic...

1. Pancakebunny Hack: Peckshield Post-Mortem 

    • Spoke to Jimmy about this.  He doesn’t seem too concerned.  The way the hack was done is through flash loans.  Which can only be used if the entire process (“hack”) can be done in one transaction.  There exist no use for a flash loan in our structure, unless someone wants to pay entry and exit fees very quickly.
    • Jokes aside, we do appreciate the community keeping us informed and we do analyze the implications of these reports very rigorously with respects to our planned smart contract structure.  
    • I’d like to point to the same thought process that I have shared in the past:  Part of being on DeFi is to acknowledge that hacks is always possible.  It is to be expected. The reason you take this as given is because you are being rewarded for taking this risk on, and that’s through incredible growth in capital appreciation and the highest real-yield of any financial asset out there.  Once you recognize this as fact, you plan your investment portfolio accordingly.  One of those ways is to be diversified.  Does being diversified, ie.: having your capital invested in many more places, mean you’re more likely to experience and go through one of these hacks?  Yes. However, being diversified enough means you’re never going to suffer a catastrophic loss and in aggregate, over time, you always come out on top.  This is important. Because the worst thing an investor can go through is to lose it all, and putting all your eggs in one basket, then waking up to the fact that your basket was stolen is not something you can come back from.  No customer support, no FBI, nothing.  It’s gone.  That’s when you can official say the game is over.  
    • One of Feeder Finance’s strength as a DeFi  product is to automate this for you.  Can’t say this enough.  It’s not the intelligent algo black box maximizing yields better than anyone, or the sophisticated leverage strategies that enhance your returns.  It’s to PROTECT your capital first.  And do it so that you still get market-rate returns at LOWER risk; improving Risk-Adjusted Returns.

2. Rumors about BSC network doing shaky stuff:  Some chatter

    • Put simply, Jimmy believes it’s mostly just FUD.  It’s likely the nodes are running too hot and they just can’t keep up.
    • In Jimmy’s words “Basically not all nodes are synced because of the traffic.  Because of that it starts to fork itself from other nodes. They stay in this loop and can’t get out.  People say Bnance is running sub-par hardware.  I doubt Binance is running sub-par hardware/software on their billion dollar network. It’s more likely they can’t keep up with demand.”

Community Suggestions, Comments, Thoughts

1. Voice over of the daily summary and Patrick’s long-form thoughts

    • First of all let me just say it is an incredible honor that some of you find my thought pieces worthy of a voice-over.  
    • The suggestion was that it may be valuable to many new DeFi investors to learn about DeFi and investment from my answers to some of the thoughtful questions posted by our community members.
    • It would also be easier for others who simply want to stay updated on Feeder Finance’s progress to do so at their convenience during commute.
    • We have taken note of this and are discussing internally about how to best put it out so that it is not pulling away much needed resources that is currently still quite limited.
    • Next Steps: 
      • We’d ask the community tomorrow in a simple TG/Discord poll whether a weekly Youtube video of our very own DJ voicing over our weekly summaries and highlights of some of the thought pieces would be a good idea – published weekly on Saturdays
      • We can certainly expand on that into an educational platform to align with our mission as a community for all to feel included and welcomed regardless of experience or knowledge.

2. Alternative use of our reserved marketing budget

  • As a background:  Our vault partner has reached out and agreed to move forward with the vault partnership provided we remove the 5% withdrawal fees.
  • An incredibly valid point was raised in response about the impact that a vault partnership would have on our outreach efforts.  How many users and holders that would actually bring? How can we measure it before making this decision? Whether there are other ways we can more effectively deploy this community capital?
  • We as a team agree. While we do think that a vault partnership is a powerful marketing tool, it does not mean it is the only, or the best one.  We simply need to look for more alternatives that could present a better return on marketing spent.
  • Alternatives mentioned include: educational resources, contacting influencers, creation of more media contents, and so on.  Our LPs can indeed go a long way used for these purposes.  
  • It should also be noted that a vault strategy deployed on the farm would lead to more frequent selling of rewards, and greater short-term volatility of the token price as new speculators find a new target to trade on.  We may also in the end successfully keep many who will stay for the right reasons.  Many of you are here because of Coingecko listing and we are all better for it.
  • Next Steps:
    • The team will look into this and come up with a summary of other alternatives.  
    • We can first go ahead and vote on the removal of the 5% fee.  This does not mean we will go ahead with the vault.  Many community members do feel that it is unnecessary and penalizes farmers who do a great service for our project by supplying the liquidity pool.  We agree.  
    • We’ll draft a proposal in the Community Proposal Platform tomorrow and describe the timeline.  It will be an extended timeline as we do not want to jump to decisions without giving enough time for the community to discuss and consider.

Project Updates

1. Development

No change to timeline. 

  • Launch test net by 1st week of June.
  • Front-test for one week to make sure the mechanics function correctly and that the model performs as intended
  • The final two weeks before launch by end of June we may ask for a select member of the community that has some dev experience to help test and bounty hunt
  • Launch timeline remains end of June/start of July.

New Front-End Developer On-Boarded

  • His first task will be to code the new design of the front page.  His estimated timing of completion is by this weekend.
  • Once the core design structure is complete.  He will focus on making sure all community requests, if possible and justified, are implemented into the site’s UI/UX structure.

2. Possible BUSD-FEED Farm

  • Per yesterday’s thought piece (linked here again)
  • This take less priority than marketing but is no doubt also an important issue we will revisit.  
  • Ultimately what another liquidity pool in stable coin does for the FEED token price is to stabilize it with arbitrageurs.  It needs to be liquid enough though, and that requires sponsoring with a Farm.
  • Some background, much of the token price’s short-term movement is linked with the value of BNB, this is simply because the current pool is quoted in BNB, and the $usd value is converted from that quoted price.  BNB price declines, holding the FEED-BNB exchange rate constant, also means FEED price declines.
  • Over the long-term, it is less vital as it is mostly psychological but the issue has been communicated in my DM as a relatively important issue.
  • Again, we’ll revisit this as a community.  A sacrifice has to be made and it needs to be agreed on by the community.

3. Mascot Design

No update

  • It is in the designers hands now, expectations is for the first draft to come in early next week.