Why can LendMi from Qicai Research Institute break out and rise from Fil lending?

How did LendMi rise to become one of the higher-yielding lending platforms on the market?

At 20:00 on September 7, 2021, Patrick, the official community leader of LendMi, visited the Qicai Research Institute and interpreted the theme of "TVL is about to exceed 100 million US dollars, why can LendMi break out and rise from Fil lending?"

The following is the essence of the AMA:

Q1. Welcome Patrick to the Qicai Research Institute. Our LendMi platform has received widespread attention recently. Please briefly introduce yourself and LendMi.

Patrick: Hello everyone, I am very happy to be able to communicate with you friends here today. I am honored to receive the invitation from Qicai Research Institute to participate in this online AMA event.

Let me introduce myself. I am the official community leader of LendMi, and I am mainly responsible for LendMi's project operations and community building.

LendMi is a lending platform for the Filecoin ecosystem. It connects the funds in the mining and cryptocurrency circles through DeFi to help investors obtain higher currency-based returns.

LendMi collects FIL through decentralized lending, lends FIL to large nodes (large mining pools) for mining, and distributes the output rewards to investors. Because the output is stable, investors can be guaranteed to enjoy fixed returns. On the other hand, in order to ensure the validity of node pledge assets, the community will elect large nodes (high value) and require nodes to pledge node private keys to ensure control of the nodes (control can be verified by miner signatures).

LendMi now supports the HECO and BSC main chain ecosystems. The current coin deposit volume exceeds 800,000, and the total asset value at its peak exceeds 150 million US dollars.

To sum it up in one sentence, we want to be the DeFi platform with the highest FIL deposit returns on the entire network!

Q2. When will the LendMi code be open source?

Patrick: In order to reduce the possibility of cyber attacks and protect the intellectual property rights of the project team, LendMi will not be open source in the early stages.

LendMi promises that every time a version is upgraded, it will ask a well-known auditing agency to cross-audit to ensure the security of user assets.

We have currently passed the audits of two auditing agencies, Lingzong Security and Knowsec.

Q3. Will you choose more well-known auditing agencies to conduct audits? Or will you only choose the current two?

Patrick: LendMi is in talks with several auditing agencies and will announce new audit reports to the community as soon as they are available. LendMi attaches great importance to the security of users' assets and hopes that users can use them with confidence and make money happily.

By the way, as of today, LendMi has been running stably for 148 days, with a total network TVL of more than US$92 million and a cumulative income of nearly US$4 million distributed to users.

Q4. How is the annualized rate of staking VFIL calculated? How do you maintain such a high return?

Patrick: The net value growth of the VFIL fund comes from the injection of physical mining income. The income obtained by users is related to the following parameters:

– VFIL’s staking dividend ratio

– FIL’s physical mining utilization rate

– Annualized revenue of FIL in physical mining machines

1 VFIL income = physical mining standard annualized * utilization rate / pledge rate

Among them, the income from physical mining = effective computing power of the node / total effective computing power of the whole network * reward curve of the whole network * (1 – operation and maintenance cost) * sharing ratio

Note: The curve of physical mining income is affected by many factors, such as the network reward curve, changes in the total network computing power, changes in the local effective computing power, gas fee loss, release speed, changes in operation and maintenance costs, etc. Some of these factors are difficult to measure accurately. The release speed is unstable only in the early stage of staking. Changes in gas fees and operation and maintenance costs require manual evaluation by the platform.

High returns come from different sources of income. Most of the lending projects on the market are mortgage lending, such as Compound, Venus, and Lendhub. The level of user income depends entirely on the lending rate in the secondary market. If the borrower is unwilling to pay a higher borrowing cost, the income of deposit users will not be too high. LendMi participates in upstream physical mining by staking FIL. The income of FIL mining itself is considerable, which is reflected in the product. The income of VFIL is very competitive.

Compared with competitors such as DeFil, our revenue is the highest. There are two main reasons: 1. Our platform’s share is very small, far lower than other competitors. 2. The mining pool we cooperate with is very professional and can maintain a high rate of return.

Q5. Will LendMi’s income decrease as the scale of funds increases?

Patrick: From a certain perspective, LendMi is actually a multi-party mining project, which will also be affected by many factors such as the scale of physical mining, the price of mining machines, and the fluctuation of coin prices. In the future, the reduction in the demand for pledged coins may affect the user's rate of return, but from the current point of view, the computing power of the entire network is still growing, and the demand for pledged coins is still very large. In addition, the size of LendMi's funds is far from reaching the upper limit of its demand for pledged coins. Taking advantage of this wave of FIL market surge, everyone can still enjoy a wave of dividends.

Q6. Will you launch more flexible short-term products (such as 30 days, 45 days, etc.)?

Patrick: In the future, it will be launched based on the community's activity and everyone's investment intentions.

However, what is certain is that if the pledge period is short, the yield will be lower.

Q7. If the same product is pledged multiple times, how should the income and pledge time be calculated?

Patrick: The newly deposited principal will dilute the expiration date of the original principal. All principals will be unlocked at a unified expiration date, but your expiration income will remain unchanged. The specific calculation formula is as follows:

Estimated expiration time = current time + lock-up time after dilution

The lock-up time after dilution = (previous principal amount * remaining lock-up time + newly deposited principal amount * planned lock-up time) / (previous principal amount + newly deposited principal amount)

Remaining lock-up time = expected expiration time – current time

For example:

Xiao A deposits 100 FIL on September 1st, and the expiration date is 30 days

Today (September 20), Xiao A deposited another 50 FIL, with an expiration date of 30 days

So

Xiao A's final expiration date is September 20 + (100*10+50*30)/ (100+50) = October 6

You can also click the question mark next to the principal to view the description of the expiration date.

Q8. How to ensure that MDEX's fund pool will not be revoked? If VFIL is revoked, how will it be redeemed?

Patrick: At the beginning, LendMi officially created a fund pool on MDEX and provided some liquidity. Later, the official will also introduce other incentive policies to encourage users to add liquidity on MDEX and ensure that users can sell VFIL at any time.

In addition to selling VFIL on MDEX, the official will also open redemption channels from time to time, allowing users to redeem HFIL and destroy VFIL at the same time. The information on the opening of the redemption channel will be announced in the community as soon as possible, and everyone can pay attention to the community news in a timely manner.

After the DAO governance function is opened, the liquidity pool will be governed by DAO, which will completely solve this problem.

Q9. The official has the private key of the node, but the node can transfer the coins away. So what kind of relationship does the official have with the node? Will the node do evil and cause the user's benefits to decrease?

Patrick: I want to correct a wrong view here. Not only does the official have the node private key, but the transfer of pledged coins is also done through a multi-signature co-managed wallet. The node cannot unilaterally transfer the coins without LendMi's consent, ensuring that the node cannot do evil.

All of these require a strong trust relationship between the project owner and the node, which is why we carefully select our partners, in order to ensure the safety of users’ assets.

Q10. If the project is attacked, what measures can the official take to avoid user losses?

Patrick: On the one hand, the contract itself has been audited by multiple parties and has no medium or high-risk issues, which has solved most system-level problems.

On the other hand, the mechanism of node pledge loan products will also make the assets in the contract not as many as traditional over-collateralized loan assets, the financial risk is relatively reduced many times, and there is no attack scenario such as flash loans.

Q11. What are the biggest advantages of the LendMi project compared to other mining projects?

Patrick: Compared with other projects, the yield is our biggest highlight. The 90-day fixed annualized APY: 30% is the highest yield in the entire network after our research, and it is based on FIL currency. I know that there are also some FIL lending platforms with higher yields, but they are all subsidized by platform tokens, and the actual FIL yield is very low.

Below is a comparison chart of earnings that we recently compiled.

Our team has extensive experience in Filecoin mining and is well aware of Filecoin physical mining.

Our team has strong technical capabilities and a practical profit model to ensure the smooth, healthy and safe development of the platform.

The above is the essence of the AMA content. Recently, LendMi will also have a new user staking reward activity. Users who participate in the staking can get FIL, Hermes, LV, iPhone and other rewards. For details, please see the poster

learn more:

LendMi official website: https://lendmi.vip

Telegram: https://t.me/lendmiTwitter

https://twitter.com/LendMi_OfficialMedium

https://medium.com/@LendMi_Official

Weibo: https://weibo.com/lendmi

WeChat public account: LendMi

Email: [email protected]