Slope x Solfire AMA Recap

On Jan 11th, Slope Finance was delighted to have an AMA with Solfire CEO Kyle in Slope Official Telegram community.

Section 1- Introduction

Q: Can you introduce you and Solfire to Slope Community?

Hello, I am Kyle, founder and CEO of Solfire Protocol. As a CFA graduate, I spent the past 10 years developing financial derivatives products at top investment banks in Singapore and London. My team and I started developing dapps on Solana in October 2020. An alumnus of HEC, our CTO Saeed has Ph.D. in Financial engineering and extensive background developing Fintech and DeFi protocols. We formed a team in 2020 and decided to do something great so here we are with Solfire Finance.

Solfire Finance is a decentralized application focusing on asset management by creating a DeFi portfolio for users based on certain metrics of the crypto market.

Solfire Finance offers a suite of investment products across the risk spectrum, enabling users to passively access the best yield-generating opportunities on Solana. Solfire’s goal is to offer sophisticated, sustainable, and composable yield products which users can mix and match to produce their desired exposure.

Although the Solana ecosystem is filled with quality projects, DeFi users are still looking for projects with higher yields. One of the main problems is that there’s a lack of asset management tools that optimize the user’s portfolio with a steady yield. In traditional finance, the trading volume of synthetic assets could exceed that of the spot market by 100x. So we found this opportunity in DeFi. Solfire Protocol takes care of helping users manage their portfolios so that they can simply earn while they’re sleeping.

Section 2 - AMA Content

Q: Why did the team choose to deploy Solfire Protocol on Solana?

Solana offers exceptional TPS compared to other chains. With over 60,000 TPS ideally, protocols will be able to use untapped potential to achieve greater yield even in times of high volatility. Solfire leverages just that, to be able to complete a series of complicated transactions such as options trading and leverage lending in seconds so that we can bring higher yields over time to our users.

Q: How does the BETA version of Solfire Protocol work?

The BETA version of Solfire will include 9 vaults in total with separate strategies, including covered calls, put selling, lending optimizer and simple staking. For options-related vaults, we will select strike prices algorithmically, and then sell those options to the corresponding Serum market for a premium. Then if the actual price is appropriate the vault will earn the full value, otherwise, the options will expire worthlessly.

Read more about the strategies here: https://docs.solfire.finance/protocol/vault-strategies

Q: What is the competitive advantage of Solfire over other protocols of a similar type?

For me, the basic principles for getting an edge in DeFi are:

1. Efficient utilization of funds (leverages, low cost for lending/borrowing, liquid assets)
2. Low transaction costs
3. High performance (High TPS) so that user experience is not affected even under frequent transactions.
4. A variety of synthetic assets (derivatives, securities, ETF funds, etc.)

Solana network provides us the natural advantage of 2 and 3. Solfire provides users with 1 and 4 that other protocols don’t have yet. Additionally, users will be able to create even their own assets for the portfolio in the future (with governance).

Q: What is the utility of $FIRE token?

First of all, governance. FIRE will be used towards a variety of governance matters including the Fire Improvement Proposal, adding/deleting certain objects of trading, adjusting certain metrics of the protocol, and how Solfire Protocol should award long-term holders.

You may also use FIRE to buy NFTs in the future. We just announced our NFT giveaway campaign and our plan into the Metaverse with a sort of Farming game. Users can use FIRE to purchase game items and harvest yield in the game.

Q: What’s the tokenomics of FIRE?

With a total supply fixed at 100M, $FIRE token has a deflationary model. 60M will be distributed to users for mining incentives.

The team will perform a weekly buy-back and burn schedule where 2% of the weekly trading volume of all investment portfolios and 50% from the vault fee will be used towards the buy-back and burn of FIRE. Additionally, ALL FIRE consumed in the mini-game will be burned.

By doing so, we wanna ensure that the value of FIRE directly reflects how Solfire performs as a protocol, rather than having a token that’s highly volatile by taking advantage of the market. We advocate for everyone to become friends with time instead of money. We want to reward long-term holders that believe in how Solfire works as a revolutionary protocol.

Q: What’s the roadmap and vision of Solfire Protocol?

You can read about our preliminary roadmap here: https://docs.solfire.finance/roadmap

Up to now, we have finished 50% of our 2022 Q1 checklists already, and there’s more to come!

This is just the beginning and we will definitely add more to our roadmap in the future.

Solfire Finance strives to be the most community-oriented DeFi protocol. What knowledge we do not possess, we seek and reward those within the community that does. We are built by the community for the community.

Section 3- Twitter Questions

Q: Security is always the most important part of crypto, how do you ensure product security for users?

Security is a priority in DeFi and we take security seriously.

With that said, first of all, Solfire Protocol is having its first audit with Kudelski Security on the way, expecting to finish in March. (The duration takes so long because there’s limited availability and choices for auditing firms for Solana Contracts on the market. Thus a long waitlist)

Secondly, we will establish a bug bounty program within our community such that our community with the expertise could help Solfire Protocol improve in the future!

Q: Can you share with us what are the highlights of Solfire?

Like I said before, the first highlight is that Solfire Protocol gives users more freedom on creating structured products that other similar protocols don’t have.

For example, a user will be able to create his own ETF or index funds in the future, adjust his options strategies, etc.

The second highlight is Solfire Protocol does not rely on simply doing structured products for yield but on other aspects of yield optimization. One vault that we will innovate on is the AcceleRaytor Vault. This vault will be the first IDO optimizer that integrates radium's Accelerator. Know how this vault works here: https://docs.solfire.finance/protocol/vault-strategies/ray-vault

Q: I haven’t found that Solfire launched any events before, what are the strategies of marketing? How do you attract users to use Slofire? Should we expect activities?

Solfire Protocol just had multiple partnerships along the way. And Slope is one of the better ones among them!

In the future, Solfire Marketing Team will continue to reach out to different institutions, protocols, NFT projects for partnerships. And we will try to get FIRE listed on a couple of CEXes. These are all included in our strategies for gaining traction on our platform

Q: In the next three months, will there be any certain big projects integrated with Solfire?

Right now I cannot guarantee what the next three months will look like. The team’s job is to first ensure we make everything perfect every day. Seize the now, and plan the future.

So with that said, Sypool and Jupiter integration are on the look. But I can’t be 100% sure about how the final deal turns out. So wish us good luck!

Q: Could you please introduce the investors of Solfire? Are you still accepting investments?

Solfire Protocol had one investor Alex who runs several private equity funds. The seed round was $50K and we were able to build just from scratch and be self-sufficient from there.

However, we are still open to VCs that could provide us resources on advisors, consulting, and strategic planning.

About Solfire

Solfire Finance is a decentralized application focusing on asset management by creating a DeFi portfolio for users based on certain metrics of the crypto market.

Solfire Finance offers a suite of investment products across the risk spectrum, enabling users to passively access the best yield-generating opportunities on Solana. Solfire’s goal is to offer sophisticated, sustainable, and composable yield products which users can mix and match to produce their desired exposure.

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