Fort&UTU.ONE AMA：DeFi 3.0 with Infinite Liquidity
Video link: https://www.binance.com/en/live/video?roomId=2101099
Q1:
Diana: So, let’s start today’s show! As far as I know, the Fort protocol is a decentralized financial protocol. Could you briefly introduce us to any products available in the FORT protocol?
FORT is a DeFi development and application system based on Infinite Liquidity Model (ILM). Any financial product can be developed by FORT without risk of settlement caused by liquidity insufficiency. FORT protocol creatively sets the smart contracts to be the counterparty of every participant, not a deal maker. The settlement of a trading is not transferring tokens but burning and mint tokens. This model dramatically reduces the cost of financial services and completely solves the problems of settling derivatives with nonlinear pay off. This problem is very hard for the automatic market maker model and asset pools to deal with. That is why we say FORT is a new form of finance and DeFi, we call this form DeFi 3.0. The present products on FORT are perpetual future contracts and European options. FORT is highly abstractive and it can summarize all kinds of economic relations as a linear combination of basic return functions. The one-to-one correspondence between basic return function and discounted cost function is similar to the one-to-one correspondence between EVM code instructions and GAS fees, thus it has the possibility of beyond financial applications and providing the economic foundation for GameFi, NFT, and so on. Locking economic relationships on blockchains creates consistent functional relationships between different game worlds, providing the infrastructure for building metaverse.
Q2:
Diana: Thank you for the information, could you tell us how these products work?
Both perpetual future and option contracts call the price information on the NEST oracle at entry and settlement, and then calculate the amount of payments based on the price information. A participant only needs to decide what derivatives to buy, which future position to take and the key parameters such as maturity date, strike price, then the contract can be customized and purchased. The price of the contract is calculated by time discounting the expectation of the future pay off. All the payments are paid with the only endogenetic currency token of FORT: Decentralized Currency Unit (DCU). The tokens paid by participants will be burned by the contract and the pat off of the contract will be paid by the taken minted by the system. For example, if a trader purchases a call option with strike price 3000 matures one month later when ETH/ USDT is 3000, the system calculates the cost of this contract, let’s say 500 DCUs. The participant pays 500 DCUs to the system, and the system burns the tokens immediately. At maturity data, if the price of ETH/ USDT 4000, then the system will mint 1000DCUs and transfer to the participant.
Q3:
Diana: Sounds excellent! They look like fun and straightforward derivative products! So, for the FORT protocol, could you share with us some projects highlights or key innovations? (comparative advantages)
We have four points of innovations:
1. A completely new financial model and form. The infinite liquidity model.
2. FORT is an open financial product development platform which can develop any derivatives and GameFi.
3. There is an intrinsic price increase mechanism for DCU since the system creates a deflationary environment in the long term.
4. Created discount computer model, it is an infrastructure for the future meta-universe.
Q4:
Diana: It’s awesome! As I know, the Fort is based on the NEST Protocol oracle; how can the Fort contribute to the NEST Protocol?
FORT chose the NEST oracle machine because FORT is a decentralized protocol based on non-cooperative games. FORT and NEST share the same idea of decentralized non-cooperative games. We observed all the oracle machines, most of them still have the credit risk of centralizing, and we do not want to call centralized price since the risk and return of holding DCU may be affected. Increasing the number of FORT users brings NEST vast invoking and commission fees. We consider this is reasonable because the core risk of decentralizing financial trading comes from oracle machines.
Q5:
Diana: Thanks for sharing! We see the importance of the FORT protocol to NEST. Next, we are going to talk about the NEST. Based on our current perception, NEST is a price oracle as a DeFi infrastructure; what makes NEST different?
The design of NEST is exquisite, which is completely based on a game theory mechanism.
Simply speaking, it contains three modules of innovations:
1.Two-way options: Each price offering requires the offeror to deposit three kinds of tokens: NEST, the base cryptos and the price cryptos where the values of the amount of base and price cryptos are equivalent. The system allows anyone to make a trade according to the offering price, which is providing the market a free two-way option (buy or sell). For example, if a verifier believes the offered price of the base crypto is too low, then he can buy the base crypto with the amount of price crypto and sell them to the market. On the contrary, if he believes the price is too high, he can buy the base cryptos from the market and exchange them with the price cryptos deposited by the offeror. Once a price offering is traded, the offered price will not be accepted by the system. The system only accepts a price offering if it can last 5 minutes.
2.Price chain: a verifier or an attacker has to offer a new price to the system when he trades away one of the deposited cryptos. The new price also demands depositing tokens, same as the previous price offering. This assures the system always obtains price information at that time.
3.Beta coefficient: The price chain requires the attackers to deposit more NEST tokens. The amount of NEST he needs to deposit is Beta times that of the previous offering, which can prevent malicious attackers through exhausting his resources.
From the above details we can see the following properties of NEST:
1.The price offering is open to any one, the process doesn’t require an audit.
2.Preventing attacks through an arbitrage mechanism, make sure the system is safe.
3.Every price is verified on the chain, the system doesn’t need to trust any nodes.
NESE has faced challenges from bearish and bullish markets for two years, no risk related events happened. The projects quoting price form NEST includes Cofix, Parasset, FORT. We expect more projects will quote price information from NEST.
Q6:
Diana: It sounds like the FORT and NEST protocols have unique innovations! So, could you please share any plans for the future based on the protocols’ roadmap?
Ricky:We have a three steps plan for FORT. The first step is to complete the DeFi 3.0 infrastructure, including FORT 2.0 code development, adding perpetual options, barrier options, index coin and other innovative derivative smart contracts. Expanding the community of token holders and contract users. We expect to expand the potential token holder community to one million and the user community to the top three in BSC and ETH within half a year, that is about one hundred thousand.
The second step is promoting the development of GameFi and puttable NFT projects which are based on FORT. Recently we are cooperating with the community development team, a brand new GameFi is in development, and the puttable NFT project already has a preliminary model, and it is expected to be fully operational within six months.
The third step is promoting the status of the FORT developer community. We plan to expand the DeFi 3.0 and GameFi 2.0 developer community to 30 to 50 people.
Q7:
Diana: With the launch of NEST DAO Governance, holders of NEST tokens can participate in governance voting. And we’ve seen a lot of people talk about DAO in the field. Could you tell us what you think about DAO?
DAO is the current on-chain management tool, including code upgrade, permission voting, parameter revision, DAO asset management and other functions, and DAO is also the core module that can not be bypassed by on-chain applications. On-chain applications must build strong DAO governance to remain adaptive and scalable. But in terms of our philosophy, we adhere to following principles:
1. Code revisions and upgrades should as few as possible
2. Voting should be as prudent as possible. The voting tokens should have higher value to vote, not to invest.
3. In terms of the use of assets in the DAO, it is required to take into account the needs of the community as much as possible, accommodate the community audit as much as possible, be transparent, open, effective, and avoid corruption.
Q8:
Diana: It is interesting to hear! If there is a DAO tool with a low threshold that allows everyone to create their own DAO, would you like to use it?
We are very happy to use this tool if it can take our principles into account. We believe that decentralized organizations, unlike traditional centralized organizations, should not be treated lightly, or just distort the original intention of decentralization for the sake of the immediate flow dividend. We are happy to see a tool like UTU provided, it’s a wonderful toolset for DAO management.
Q1: When it will be available to trade?
Ricky: FORT is available for trading perpetual futures and European options of ETH. Except we will work on FORT 2.0 code development, adding perpetual options, barrier options, index coin and other innovative derivative smart contracts. We are currently developing NFT and GameFi projects. In the next 1–6 months, we will launch puttable NFT and composable GameFi on Fort, they can be traded by #DCU.
Q2: is there any manual or module to learn about the your project for beginners? And where we can find them?
Ricky: Yes, we have put manuals for new users on medium, you can find the link on our twitter. Please follow us on twitter and medium. Thank you so much! If you have further questions, you can always leave your questions on our twitter, and we will be happy to answer them for you.
Q3: What special advantages does FORT have to be able to beat other competitors when FORT’s goal has too many previous projects in progress and under development?
Ricky: The most important advantages of FORT is the ability to settle any financial derivatives, which the payoff is nonlinear to the underlying asset price. As I mentioned before, any financial product can be developed by FORT without risk of settlement caused by liquidity insufficiency.
Q4: Currently FORT PROTOCOL built in Ethereum, BSC and polygon. Do you have plans to expand to other similar networks?
Ricky: Yes, we do have plans to expand to other similar networks such as AVAX and Solana. We value the safety of the public chain the most, and that is why we started from the mainstream chains. The security of these chains have been tested by longer time and more users.We’d love to expand to the newer networks which can provide a safe environment for smart contracts.
Q5:Can you briefly describe your partnerships so far and upcoming partnerships?
Ricky: Our current focus on three aspects of partnerships: community, media and projects. We’re currently working with over 100 communities in Indonesia and Vietnam, as well as in India and Turkey. At the same time, we also have related cooperation with local media. In terms of projects, we are mainly cooperating with cross-chain projects. Our partners include CertiK, DefiLive, Oasis Foundation, Blockster community, and PolyNetwork. We will expand our cooperation in all three areas in the future and let the Fort protocol be known and spread all around the world.
Q6:Due to some scam projects, it is difficult for investors to trust new projects. How do you solve this problem for investors to believe in FORT?
Ricky: One of our followers on twitter mentioned that there were an overwhelming number of failed projects, or projects that are fraudulent, and have several key characteristics: there is no active communication with the community and anonymous developers. Firstly we are keeping a close touch with our user community, my colleagues talking and chatting with them every day. Collecting their ideas and suggestions. Organizing community activities and events. And we are absolutely not anonymous developers. The information about our products and our codes are open sourced on our github page, just search FORT on github you will see. Any programmer is welcome to check our codes and find bugs. We have a plan to reward people who found bugs. However, I suppose that might be quit hard since our codes have been though the audit of CertiK recently.
