On the11th, May 2021, the WeBlock Community (A full-service blockchain accelerator) hosted guest, Charles from Shield DAO (http://shieldex.io/) as Core Contributor, in a live Ask-Me-Anything (AMA).
The AMA was divided into 3 segments which started with the introduction of the guests, followed by questions from the host, and finally Community live questions.
A BRIEF INTRODUCTION OF Shield DAO
Shield expects to solve these problems with disruptive ideas to become the first functional decentralized perpetual contract on Ethereum’s layer one. Shield’s decentralized risk-free perpetual contract is a game-changing product built on Ethereum and its decentralized derivative protocol to support its operations.
Shield’s risk-free perpetual contract allows users to avoid the potential downside risk (sometimes even liquidation) caused by delayed price feeds, which is prevalent in existing decentralized perpetual. This protocol allows the users to open long or short positions with prepaid funding (limiting the maximum downside loss to the funding fee paid) in a fully trustless way.
Pls, refer to the latest released article for further more info and update about Shield DAO.
How Shield works
Let’s suppose you’re interested in opening a 1-Ether (ETH) long position at 1,800 DAI/ETH and prepay 10 Dai into the funding fee account. If the index price of ETH goes own to 1,500 DAI/ETH in a day, you do not suffer from the loss of this unfavourable price movement but rather just has to pay the funding fee for the day (taken out of the prepaid funding fee account).
HOST Q&A SESSION
Host: Question 1
Q: What are the three keywords you would use to describe Shield Protocol and can you explain the three keywords one by one?
A: Yep, I would say Shield is quite unique compared to the other potential competitors. I can talk about the following unique selling points:
-0 Position Loss
Risk-free Perpetual Contract is an innovative financial product with infinite upside potential and limited downside risk, which has no delivery. The unique point here is that the perpetual contract without potential position loss, thus avoiding huge downside risk or even liquidation caused by the price delay. The protocol allows users to open short or long positions with prepaid funding fee in a fully trustless way. The maximum loss is capped by the prepaid funding fee, while the gain has infinite potential.
the next one, unlimited Liquidity by a well hedged private pool and retail-focused public pool to ensure strong liquidity for traders. In this way, the users on Shield will be able to customize their risk management when involving with liquidity mining.
Last but not least, -high Leverage, the option like funding fee model enables up to 100x leverage.
Host: Question 2
Q: What is the long term vision of Shield Protocol?
A: To safeguard the operation of risk-free perpetual contract in a decentralized way, a decentralized derivative protocol that consists of traders, dual-liquidity pools, external liquidators and brokers are required. Shield will launch Shield 2.0-decentralized derivatives protocol.
This can be the next generation infrastructure of future derivatives. Shield protocol is open-source and we welcome anyone to build on Shied and launch more derivatives products. Look forward to the global derivatives ecosystem in the near future!
Host: Question 3
Q: Could you explain how Shield’s risk-free protocol works?
A: sure thing. unlike the traditional nonlinear pricing model, Shield applies linear approximation by cutting up the nonlinear process, allowing decentralized risk-free perpetual work well on the Ethereum blockchain with on-chain settlement. On the fundamental product perspective, risk-free perpetual is an exotic option from the traditional finance industry, the core member of Shield bring this option on-chain and allow the users to strike without an expiration date, which is a perpetual product user experience.
So for the users of Shield, the biggest benefit is that pay little to win big without position loss. Traders of risk-free perpetual contracts do not suffer any loss from the unfavored price movement but only need to pay the funding fee when opening the position. They might add funds into the funding fee account to ensure the balance payable. The margin is charged in the form of a funding fee and on Shield the funding fee varies on daily basis. In a nutshell, risk-free mostly refers to 0 position loss, which is the most significant loss on centralized exchange. Now Shield can well satisfy this risk management demand by offering risk-free perpetual.
Host: Question 4
Q: As a community-driven project, how is the current Shield community doing and what plan do you have to grow the community?
A:Shield is the community itself I would say and will be governed by Dao in the near future. The community will participate in the governance and hand with us to reshape the future derivatives protocol.
Recently we receive many supports from global communities including Russia, Turkey, Thailand, Indonesia, Vietnam, Japan, Taiwan, etc. We do think it’s the community that truly build Shield ecosystem in the long run and can’t wait to share more partner in DeFi space soon. So stay tuned!
For now anyone interested in Shield value please join our social media. Shield team all on Telegram and we’re looking forward to a new idea/proposal from the community side. Btw, we also establish Shield eco fund to expand the global community. Anyone who wants to run a Shield community can receive SLD token incentives and support from the Shield official.
Host: Question 5
Q: What is the main focus of Shield Protocol in 2021? Does Shield DAO have any exciting initiatives that are planning in the pipeline that you can share with us?
A: First of all, we already launched the Kovan Testnet and welcome everyone to participate in the testnet competition to gain early SLD incentives. And the Ethereum coding has been audited by Slowmist (https://github.com/slowmist/Knowledge-Base/blob/master/open-report/Smart%20Contract%20Security%20Audit%20Report%20-%20Shield.pdf)
Currently, we’re ready both for Ethereum and BSC version and we also partner with 1 more leading audit company to ensure security. Once it’s done, we plan to launch BSC in 1–2 month for lower gas cost and more efficient throughout to offer premium users experience.
Last but not least, Shield is community-oriented and will be governed by DAO. We plan to launch the IDO and hope the SLD token can be fully distributed to target DeFi users to build the Shield ecosystem in long term. If you’re interested, please join our community and follow our social media for the latest announcement.
COMMUNITY LIVE Q&A
Q: You have IDO or presale program?How much target price for that？
A: yep, I guess many members are interested in this part. We did research and prepare the IDO in the following weeks. I would say early adopters would mostly get the benefits for SLD. We will announce it on our Twitter soon!
Q: which exchange will be listed for shild DAO?
A: We do have a listing strategy and Okex is also one of our supporters.
Q: Is your project is fully decentralized? Also, is there any possibility of centralization in the future?#AskShield
A:Shield is completely decentralized. Firstly, Shield will open-source on GitHub and we already have audits report here. Also, all the mechanism and products are running on the blockchain itself. Once you connect with you wallet, you fund are in your control. And decentralization is one of the key genes of Shield.
Q: Ethereum is killing its users for the high has fee. Why did you decide to use Ethereum while we are now in the era of BSC? #AskShield
A: As I just mentioned, we have the Ethereum Layer 1 and BSC version ready. Due to the high gas cost and limited throughput, we will launch the BSC first.
Q: Can you please share with us an overview of tokeneconomics , how much is the circulation supply and how many tokens reserved for the team and how much liquidity will be locked for what period?
A: You can use the SLD for
- Governance -Shield is community-oriented and will be governed by DAO. Shield will gradually transit to community governance and reshape the infrastructure of future derivatives.
- Swap&Burn - The mechanism is that 10% of the total SLD would always be equal to 100% of the swap&burn value, thus generating a repurchase price. Anyone can go swap&burn to earn profits.
Additional info ：Welcome to join this link for test day on Shield: https://gleam.io/OX5tR/shield-active-supporter-program
Please click the following links for further more information about the Shield DAO:
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