Recap of AMA with CPO Will
- Q: Welcome! Can you introduce DMEX first?
A: DMEX is dedicated to mobilizing all assets. The first and foremost issue we would like to solve is the liquidity problem of mining power assets, the risk of mining income defaults, and the lack of transparency in mining incomes. These issues have been plaguing the traditional mining power trading market.
DMEX tokenizes mining power into NFT and combines it with DeFi. The DMEX platform is built with the community DAO governance concept. With these tools, DMEX is able to achieve smart mining income revenue distribution, market risk-sharing, as well as community-based platform governance. DMEX is committed to establishing a newbie-friendly, secure, transparent, and efficient decentralized mining power financial services platform for all users. With DMEX, everyone can easily and securely participate in cryptocurrency mining and enjoy the mining incomes.
2. Q: As we all know, there are numerous existing mining power products in the market. Moreover, their operation has been relatively stable. Compared with other mining power platforms, what are DMEX’s unique advantages?
A: First of all, DMEX is completely decentralized in its operation. That is to say, everything can be verified on the blockchain, including all on-chain assets and all transfer records.
Secondly, all mining powers are tokenized on the DMEX platform. We guarantee that all mining powers are authentic and valid mining power fully verifiable on the chain.
Thirdly, DMEX’s liquidity is solid. Because the DMEX platform is fully committed to mobilizing all assets. All products on the DMEX platform are designed to provide maximum liquidity, such as the mining power assets. When users participate in the mining contracts on DMEX, they have greater flexibility to exit the contract whenever they need to. For the mining power vendors, they can also lock-up their future incomes in advance and release their future earnings in advance.
Fourthly, DMEX provides a unique autonomous governance mechanism, i.e. the community DAO organization. In this organizational approach, most if not all of the core parameters of the platform are managed by the DAO community, including mining power vendor information and mining power product details. DAO is a great way to ensure equality and fairness for all.
Fifthly, the risk-sharing fund. In the DMEX token allocation plan, 10% of the total platform tokens are allocated as the platform’s risk-sharing fund. If a black swan event occurs, the risk-sharing fund will be distributed to the users as compensation. This design further protects the users.
Sixthly. DMEX offers a wide variety of DeFi products. For example, mining power NFT and joint mining products. We will continue to release new products to help our users to obtain more benefits and incomes.
3.Q: According to our understanding, DMEX has been deployed on the Heco chain, so what is your next step?
A: DMEX has been thoroughly audited by Chengdu Beosin Blockchain Security. In addition, we are also working with overseas security companies for more audits and promotions. The international version of the audit report will be ready around March 20th.
In terms of our product itself, we have launched our mining product on February 18. We are aiming to reach 50 million TVL in March. At present we are running several promotional campaigns simultaneously online and on-site. We are also making a community incentive program to encourage our users to participate in spontaneous promotions. Our users will be able to earn more income and bring more people to enjoy the benefits of DMEX. We are also collaborating with several well-known blockchain fan communities. We have set up community funds specifically to spark users’ interests. Especially in those cities heavily influenced by the traditional mining industry, such as Chengdu, Chongqing, our marketing plan is to deepen our connections with these areas.
In terms of product plans, first, we have established a strategic partnership with NonEntropy technology. They provided us with the initial 10P mining power. We are planning to cooperate with more high-quality mining machine vendors so as to provide different users with more choices with mining power products. Our goal is to tokenize at least 100P of effective FIL mining power. After April, we will add ETH and BTC mining power to our joint mining pool. We are already getting into contact with several large ETH and BTC mining farms. In addition, we will continue to iterate and optimize our products. We will continue to improve our current DeFi products, including our current 2.0 version joint mining products. We want to give our users a better and more convenient way to access the most suitable financial products for them. We will combine our DeFi products with mining products so that users can easily participate with peace of mind.
Regarding the DMEX branding, we plan to host a branding activity month in March. We will join hands with several high-quality project teams and communities. We aim to create continuous exposure and build up the credibility of the DMEX platform. With a good public relationship management, more users and resources will be attracted to the DMEX platform.
In general, we will promote DMEX from three perspectives, product, marketing, and branding. We believe that these activities will complement each other and bring more prosperity to the DMEX platform.
4. Q: DMEX has been upgraded from 1.0 to 2.0. You have added several new features such as liquidity mining and joint mining. What was your plan for these products? Can you give us more details about joint mining?
A: DMEX products are constantly evolving and developing. Our 1.0 product mainly focuses on mining power tokenization. NFT has great potentials for financial derivative products. Therefore we spent a lot of time to study DeFi before we released the 2.0 version of DMEX.
At present, we are running on the Heco chain. Joint mining is the featured product of the 2.0 version. It is a relatively simple product. You can think of it as an open pool of crowdfunds. Users are crowd-funding to buy mining power from miners. The effective mining power pricing is based on the market’s overall cost with the addition of a reasonable profit margin. Users can invest a principal into this pool and share the mining income. Let’s take FIL mining as an example. Assuming that 1T of mining power is priced at 25 FIL, if a user purchases mining power at this price, his Annual Percentage Yield (APY) could reach around 63%.
In another word, with such a high return, this product is very attractive for the users. Users can continuously invest their principles into this open fund pool. Thereby they will be able to easily earn a FIL mining income.
Let’s make an example with 200T of effective mining power. Suppose the price is 25FIL for 1T of mining power, then 200T is worth 5000 FIL. Users can spend 5000 FIL to buy 540 days of mining income generated by 200T mining power from the miners. The Annual Percentage Yield (APY) could reach 63%. If the users continue to deposit their FIL principals into the open fund, once the pool asset 10,000 FIL, users’ mining return will actually reduce by half. This is a very interesting mechanism. That is to say, when the mining return is high, users will rush into it the pool. However, if the pool is over-saturated, each participant will earn less income.
Actually, when we price the ABS products, we have left a generous margin space for our users. For a pool with 10,000FIL, the miner has 5,000 FIL, there is still 5,000 FIL left in the pool, these FIL will be used to provide liquidity. If a user wishes to exit, they can withdraw their principals and earnings promptly. Their account will be settled in real-time according to the duration of their participation in the pool and the percentage of their FIL compares to total pool assets.
Of course, when you want to withdraw your principals, a small service fee will be deducted from your account. This fee will be reallocated to the people who did not withdraw and stayed in the pool. By any means, users are always free to enter and exit the joint mining contract. The joint mining pool will always maintain a relatively high rate of return. Of course, the rate of return is dependent on the market condition and public recognition. For example, when APY drops to 15%, many people may want to leave the joint mining pool. However, when the number of users is reduced, the rate of return will rise as now there are fewer people sharing the same cake. Eventually, the joint mining pool will always provide a fair amount of income that corresponds with the market condition. At the same time, it also provides enough liquidity for users so that everyone is free to enter and exit the mining pool with ease. Users will be able to enjoy full flexibility.
In simple terms, joint mining is actually an open-ended crowd-funding mining fund.
5. Q: How does DMEX ensure that there is always enough liquidity in the pool to continuously power the entire ecosystem?
A: Firstly, our platform token DMC has excellent liquidity. We launched liquidity mining on February 18. Our project team injected around 2 million U into the initial liquidity pool. This initial liquidity pool is a guarantee. Secondly, we must continuously promote the DMEX products to more users, so that more people will participate in our liquidity pool. I think this is a very important and also fundamental way to guarantee liquidity. Thirdly, we need to find more promotional partners such as high-quality communities like the Gecko Institute. Together we can reach even more users Once users understand the unique advantages of DMEX, they will participate. With the power of the community, the liquidity can be maintained, the entire project will prosper.
Another aspect of the liquidity issue is the liquidity of joint mining. We just mentioned that this is an open fund with crowd-funding features, therefore the joint mining pool will have a benchmark value. This value is the pricing of ABS tokenization, because this is a considerable cost for the miners. At the moment, we hope to give users enough room for mining income by constantly encouraging miners to reduce costs. If there are enough users, the liquidity of the pool will always be sufficient, thereby all users will be able to withdraw their funds at any time.
6. Q: For all mining power trading platforms, everyone’s first concern is the security issue. At present the DMEX project offers a variety of products, the platform is relatively complex. So how does DMEX ensure the security, what kind of risk management system does DMEX have?
A: First, for contract security, we are partnering with several renowned security auditors. The auditing process will provide some support for the security of the contract and the security of our business model. We are also optimizing our contract according to auditors’ professional opinions.
Secondly, from the perspective of our platform, we strictly enforce the DAO community governance mechanism to thoroughly scrutinize all mining power vendors. Miners must have advantageous technology, considerable scale, and excellent past records before they are allowed to sell on the DMEX platform. Our community members are constantly monitoring miners’ qualifications.
Thirdly, the miners are required to pledge a portion of the platform token DMC to the smart contract as collateral for selling mining power products. If the miner is find at fault for user losses, the miner’s DMC collateral will be used to compensate the users.
Fourthly, the DMEX platform has set up a risk-sharing fund, which accounts for 10% of the entire platform token volume. If a black swan event occurs and the miner’s DMC collateral cannot sufficiently compensate users’ loss, the community can initiate a DAO proposal to compensate the users with this risk-sharing fund.
In general, DMEX has a multilevel risk management system. From the contract to community governance then to the entire product ecosystem and risk-sharing compensation funds, we have taken a lot of factors into consideration.
7. Q: DMEX’s platform token is DMC, what is DMC’s role in platform activities?
A: Firstly, DMEX is managed by DAO community governance. Therefore if you own the platform token DMC, you are automatically granted the governance right to participate in platform management. Governance rights are mainly reflected in the following areas. Firstly, DMC holders can examine and vote through DAO to determine which miner or which specific mining product is qualified to sell on DMEX. Secondly, DMC holders can vote to modify several key platform parameters, such as the transaction fees and other numeric standards. In short, if you hold the DMC, you have the right to govern the DMEX platform.
Secondly, the most important benefit of holding DMC is income distribution. DMC holders are entitled to share the total platform revenue. In the design of our platform, whether it is the 1.0 version or the 2.0 version, we had specific plans to appropriately allocate platform revenue. 80% of the platform revenue will be used to buyback and burn DMC. This ensures that the DMC will deflate in the long run. The majority of the platform’s revenue will be given back to all DMC holders.
Thirdly, if a miner wants to be listed on the DMEX platform, the miner will need to pledge a certain amount of the platform token DMC as collateral to mitigate mining risks. This fund will be used to compensate the users’ loss in the case of miner defaults. Therefore DMC also functions as a collateral asset in the DMEX risk management system.
In conclusion, DMC has three major benefits. Firstly, DMC holders are entitled to participate in platform governance. Secondly, DMC holders can benefit from the long-term prosperity of the DMEX platform and share the platform revenue. Thirdly, as a miner collateral, DMC adds an extra layer of security to the DMEX risk management system.
8. Q: Some experienced investors find that DMEX is about to start its first mine. Could you tell us when will you open the first mine and how to participate in? Will there be any surprise?
A: The DMEX initial mining was launched on February 18. We have two major types of mining, liquidity mining and Proof of Work mining.
For the DMEX liquidity mining, we will launch with three transaction pairs, USDT/DMC, HUSD/DMC, and HT/DMC. Users can pair their DMC with HT or HUSD and invest the transaction pair in the liquidity pool to obtain the LP token. The LP token can then be reinvested to earn more DMC.
For joint mining, you can invest FIL into our joint mining pool and obtain the LP token. Subsequently, you can stake the LP token to our Proof of Work mining pool to earn our platform token DMC.
Official website: dmex.finance
Telegram: DMEX Chat