Decentralised Platforms (DeFi) platforms have exploded in 2020, however, their complicated user interface and user experience have hindered adoption from investors that outside into the crypto industry. And even those who are already accustomed to the mechanics of these networks still fear one thing: impermanent loss.
Most DeFi platforms use automated market making to determine asset prices in liquidity pools. Therefore, the value of an asset inside the pool may differ from the value of the same asset outside the pool. Since the prices shift radically, it’s hard for liquidity providers to withdraw assets on time to prevent a loss.
The solution is to use automated trading and liquidity provision on these platforms. CyberFi is among the few projects exploring this path and aiming to bring the functionality of centralized exchanges to decentralised exchanges and automatic market makers.
Check out our podcast interview with Geralt, CEO of CyberFi.
Background
Geralt, Igor Sokolov, and Darius Greicius head the project as the CEO, CTO, and CMO, respectively. The CEO has over five years experience in senior management positions, four years being in the crypto sector, with three years spent in creating DeFi, centralized exchanges (CEX), and other blockchain and crypto activities.
On the other hand, Sokolov has four years of experience in cryptocurrency, including participating in Hackathons and creating decentralized applications. Greicius is well-versed in the financial markets, crypto, and marketing.
What is CyberFi?
CyberFi is a blockchain-based platform allowing users to automate critical tasks when interacting with DeFi protocols. The platform uses intelligent automation to know when to exit or enter a position. The network handles the automation of tasks related to lending, trading, liquidity provision, and inter-blockchain interaction.
Notably, CyberFi is not a know-it-all platform. Instead, it gives users the chance to define parameters on how they need things to be done.
For example, liquidity providers (LPs) can automate processes to remove or add liquidity in a pool using set price points. Consequently, LPs don’t get rekt (wrecked) when sleeping since DeFi is a 24-hour industry.
Geralt and his team have the vision to help DeFi enthusiasts to mitigate risks while lowering entry barriers and enhancing user experience.
Most importantly, Cyberfi takes a non-custodial approach, minimizing the security risk to users’ funds. In addition, the protocol contains features to cater to both novice and experienced DeFi users.
Three Areas Cyberfi Seeks to Automate
CyberFi seeks to automate 3 major areas: Trading, Automation and MultiChian.
Trading
Limit orders have dominated crypto trading on centralized exchanges. CyberFi moves beyond the simplicity to tap into price divergent indicators (PDI) to enable smart order handling in DeFi. With no centralized order books, as in CEXs, the protocol uses PDIs that tap into reputable oracles to initiate controlled orders on decentralized exchanges using liquidity pools.
To ensure its users get the best price in the market, the protocol uses the best trade value (BTV). Apart from the price, the concept also caters to the lowest fees.
That’s not all. CyberFi uses additional tools to hedge against volatility. For example, the Change Speed (CS) tool coupled with PDIs, is baked inside the smart order feature.
Consequently, a trader can use the price or its percentage to mark specific points during a trading session that key decisions need to be made. Some of the decisions may be to sell a token when its price falls at a given percentage within a given timeframe.
Automation System
CyberFi’s Automation System will feature multiple complex actions in farming, staking, Liquidity Pools and LP tokens.
The platform uses high-end price triggers and BTV to guard users against inflation, price reduction, and other unforeseen risks.
In addition, it makes it smoother for a user to enter or exit a strategy without the need to sign an array of transactions. As such, users can engage in high-risk yield farming, which is associated with high returns. Note that interaction with this type of DeFi strategy requires pre-defined parameters from the user.
Multichain Activities
The idea of moving crypto assets across different blockchains is finally catching up. Unfortunately, in the DeFi scene, the activity is still mostly manually handled. But not anymore.
Cyberfi automates inter-blockchain activities to allow users to automate activities on popular decentralized networks such as Polkadot and COSMOS. Notably, with this functionally, DeFi users can automatically participate or move their assets on another blockchain.
Cyberfi’s CFi token
CFi is the protocol’s base asset and can be used in the CyberFi ecosystem. The main uses of the CFi token are:
- Paying for gas prices;
- access to unique products;
- reduced commission fees; and
- payment for multi-chain operations.
CFi tokenomics
CFi has a total supply of 2,400,000 CFi tokens. Key beneficiaries during distribution include strategic partners who account for 500K tokens, development (300,000 CFis), and initial liquidity team (250K).
Around 300,000 CFi tokens were set aside for marketing and community growth, while staking rewards and liquidity providers (LPs) took 200,000 tokens. Additionally, the transaction mining program was allocated 50,000 CFi coins while the two sale rounds removed 800,000 tokens from the total supply.
Note that allocated coins have different lock-up periods. For instance, tokens allocated to strategic partners have a six-month vesting period, while those on the transaction mining program have 24-weeks unlock period.
The token’s major use cases include giving holders a voice on the governance table, paying for fees, paying for automation strategies, and giving holders the right to private products.
However, automation-based activities also use ETH to cover fees. In this case, ETH coins are automatically converted to the native currency.
Apart from exclusive access and having a voice in the decision-making table, the token gives its holders a right to earn part of the platform’s revenue. And it’s a lot! CyberFi distributes 80% of all fees collected in the native currency to CFi holders. These include those converted from ETH.
Staking on CyberFi
CyberFi’s staking product is called CyberEra. The offering is open for CFi and Ethereum (ETH) investors. One pool supports the native asset while the other interacts with CFi/ETH.
However, staking rewards differ depending on the pool. On the CFi pool, 10,000 CFi tokens (roughly $30K) are up for grabs, while 25,000 (approximately $76K) CFi tokens are available for rewards on the CFi/ETH pool.
Each pool has room for any amount of tokens, and each staking session lasts for 40 days upon which the staked funds are locked. Apart from the staked funds, rewards accrued during this period are also locked for the first half of the 40 days.
On the CFi pool, the daily reward is estimated at around $750 (250 CFi tokens), while those staking on the CFi/ETH LP expect to receive about $1,898 after every 24 hours.
Interestingly, locking the assets during the staking period attracts only serious users who share in the project’s vision. So far, over 1.5mil worth of CFi has been staked.
However, the duration of CyberEra isn’t fixed. Depending on its success, the team will decide on how long the next staking era will last.
A few months into its launch, the platform already boasts over $1 million total value staked. The CFi pool accounts for the largest share, with roughly $670,000, with the CFi/ETH LP having slightly above $390,000.
CyberFi mega month January- February 2021
CyberFi are doing huge things in January-February 2021 with product rollouts, integrations, partnerships, new development plans etc.
The mega month will begin on 20th January 2021 with 3 major accouncements and product rollouts on-board, together with a full update of Q1 and recap.
23rd January 2021 will be another wave of announcement including “v2” of CyberFi.
Conclusion
CyberFi’s entrance into the space has the right timing. Although the DeFi industry has recorded massive gains so far, the protocol could potentially boost the amount of funds locked in DeFi networks. How? By lowering the entry barriers, guarding against impermanent losses, and allowing users to comfortably initiate high-risk yield farming strategies.
In addition, CyberFi’s implementation of CFi has more benefits to its holders. For instance, sharing 80% of all fees collected with CFi investors and keeping 20% is among the few occurrences in the cryptocurrency industry.
