Financial logic and market value analysis of ECOC DeFi ecosystem | Online Classroom

Produced by | Lieyun Finance

On December 18, 2020, ECOChain CEO Dominic visited the live broadcast room of Lieyun Finance Online Classroom and brought everyone wonderful and informative sharing.

The following is the sharing record (edited):

Moderator: Now let's get into the topic and start today's AMA. Let's first ask the guest to introduce himself.

We officially entered the topic and started today's AMA. Let's invite the guests to introduce themselves first.

Guest: Hello everyone! I am honored to have this opportunity to communicate with you in the ECOChain ecological community. Let me introduce myself first. I am Dominic, the CEO of ECOChain, and the co-founder of ECOC, EFG, and GPT projects. At the same time, I also hope that our ecology can have a long-term cooperation and development with everyone.

Hello! It's an honor to have this opportunity to talk to you here, I'm Dominic, CEO of ECOChain, and co-founder of ECOC, EFG, GPT projects. At the same time, we hope that our ecology can have a long-term cooperation and development with everyone.

01

ECOChain has completed seamless integration with ETH

Host: After listening to the guest’s self-introduction, I feel very honored to be able to talk to such an outstanding person. Then I will continue to ask questions. Can you introduce ECOChain to us?

After listening to the guest's self-introduction, it is a great honor to talk to such a good person. Then I'll continue to ask, can I introduce our ECOChain?

Guest: OK. ECOChain is a public chain based on the POS consensus algorithm. We finalized the technology in 2017 and launched the main network in October 2019. The underlying part took 2 years to develop.

Ok. ECOChain is a public blockchain based on POS consensus algorithms. We started R&D since 2017, go live on Mainnet in late 2019, and the overall underlying part took 2 years to develop.

At the same time, we have also made great improvements in TPS transaction speed for block expansion. In order to better improve blockchain applications, the UTXO system has been integrated into the underlying system of ECOChain. While facilitating transactions for users, ECOChain pays more attention to system security and scalability, and then uses the POS algorithm to run the equity proof consensus mechanism, and uses a virtual machine (VM) as support and execution of smart contract cross-chain, completing the complete seamless connection of ETH.

At the same time, we have also done a better job of expanding the trading speed of TPS for block expansion, and in order to better improve blockchain applications, the UNDERlying system of ECOChain incorporates UTXO systems. While facilitating user transactions, ECOChain pays more attention to system security and scalability, then uses the POS algorithm to run the benefit proof consensus mechanism, and uses virtual machines (VMs) as support and execution of smart contract cross-chaining, complete seamless docking of ETH.

Additionally, our high transaction speed (560 TPS) and short block creation (32 seconds) provide faster confirmations for all transactions.

In addition, our high transaction speed (560 TPS) and short block creation (32 seconds) provide faster confirmation of all trades.

Last month, we also completed the development of the Oracle system and opened it to the public, which can ensure the accurate and timely transmission of on-chain and cross-chain information. We have successfully integrated the use of the Oracle system into EFG's Definitely product.

Last month, we also completed the research and development of the Oracle system and open source to the public, to ensure that the cross-chain and other information accuracy and timely transmission, this EFG's definitely products we have successfully integrated into the use of the oracle system.

If you want to learn more, please visit the official website: https://ecoc.io/ or follow the official account (ECOChain The company)

For more information, go to the website: https://ecoc.io/ or follow (ECOChain The company)

02

ECOChain has great potential in the financial sector

Moderator: We know that ECOChain is an independent public chain, and the main network has been online since 2019, so it can be said to be very mature. We also hope that the ECOChain ecosystem can become more and more robust, with more and more DApps.

You can see that ECOChain is a separate public chain, and 19 years after the main network has been online can be said to be very mature. Here also hope that ECOChain ecology can do more and more robust, DApp more and more.

Now let’s move on to the next question: what problems does ECOChain hope to solve?

So move on to the next question, what does ECOChain want to address?

Guest: OK! ECOChain uses POS as the system consensus mechanism, the system supports VM virtual machines, and the ECOChain system supports the deployment of smart contracts. Based on the above two points, first of all, POS proof of equity does not need to consume a lot of resources to do calculations. POS reduces the cost of validators and improves the operating efficiency of the system, making the transaction efficiency and transaction cost on the ECOChain chain better than Ethereum (currently TPS is 560, and it only takes 32 seconds to create a short block). With the support of smart contracts, ECOChain is fully capable of building a large number of DeFi protocols.

Ok! ECOChain is a system consensus mechanism based on POS, which supports VM virtual machines internally and can only be contracted for deployment within ECOChain systems. So on the basis of these two points, first, POS benefits prove that there is no need to consume a lot of resources to do computing, POS reduces the cost of the validator while improving the operational efficiency of the system, making the ECOChain chain trading efficiency and transaction costs better than Ethereum (currently TPS at 560, short block creation only 32 seconds), under the smart contract holding ECOChain fully equipped to build a large number of DeFi protocol conditions.

On the other hand, the reason why many public chain systems are difficult to deploy DeFi is that the asset richness is insufficient and the cross-chain technology is weak, making the chain a "highway" without cars. Therefore, the current deployment of DeFi still needs to be linked with systems such as Ethereum, and the imperfect financial model has definitely caused the life cycle of some products to be short.

On the other hand, many public chain systems, it is difficult to deploy DeFi because of the lack of asset richness, weak cross-chain technology, making the chain become a car-free "highway". So the current deployment of DeFi still requires a linkage with systems such as Ethereum, and the insanity of the financial model has resulted in a short life cycle for some of the definitely products.

As for ECOChain, it can "cross-chain" assets on other chains to its own system in the form of atomic exchange to achieve system asset richness. The "wrapped tokens" of the ECOC standard can be added to the DApp of ECOChain without any problems. With the oracle system, ECOChain has great potential for application in the financial field. The EFG loan definitely product issued by the ECOC ecosystem is a cross-chain loan product. We will complete executable cross-chain loans such as ETH and BTC in early 2021.

For ECOChain, it can be other chain assets in the form of atomic swap, "cross-chain" to their own systems to achieve system asset richness, cross-chain ECOC standard "packaging tokens" can be added to ECOChain's Dapp without problems, with the oracle system, so that ECOChain applications in the financial field has great potential. The EFG Lending Definitely product, launched by ECOC ecosystem, is a cross-chain lending product. We will complete executable cross-chain lending such as ETH,BTC, etc. by early 2021.

03

ECOChain is a newly completed public chain system

Host : You mentioned above that the ECOC ecosystem has launched the EFG lending Definitely cross-chain lending product. So, what products does the ECOChain ecosystem have now?

As you mentioned above, ECOC Eco has released EFG Lending Definitely Cross-Chain Lending Products, so what products does ECOChain Eco have now?

Guest: Here we must first clarify a point of view. ECOChain is a newly completed public chain system. It does not have the era of ETH, nor does it have a better background. Our technology adheres to the research and development spirit of constantly exploring and pursuing a better foundation for field development. First of all, ECOChain official technicians will not use technology application as the main behavioral goal of Token issuance.

Here we begin by clarifying the point that ECOChain is a new public chain system that didn't have the luxury to go through the ETH era. Our technology is based on the research and development spirit of constantly exploring and pursuing better areas, starting with the fact that ECOChain's official developers do not target technology applications as the primary behavior of Token's release.

As of now, the DApps on ECOChain that are known to be under development include AI systems, legal document traceability systems, real estate document storage systems, non-fungible token simple game systems, and DeFi financial systems.

Until now, DApp on ECOChain is known to be developing AI systems, legal document traceability systems, real estate file storage systems, non-homogenized Token gaming systems, and DeFi financial systems.

In the future, there will be more technicians or technology enthusiasts working together in the ECOChain ecosystem to improve it!

In the future, more technicians or technology enthusiasts will come together to perfect ECOChain ecosystem!

Host: Which other institutions have invested in the ECOChain ecosystem?

Which other institutions have invested in ECOChain Ecology?

Guest: ECOC has received capital injection and investment from seven capital parties this year, such as Genesis Capital, CoinWorld, Tai Fund, Block Capital, etc.

ECOC received capital injections from seven capital parties this year, such as Genesis Capital, Bi Shi Jie, Thai funds, Block Capital, and more.

04

Lending is the basic scenario for building the DeFi ecosystem

Moderator: Let's move on to the next question. It is understood that the ECOChain ecosystem has three tokens, and all of them are listed on MXC. Can you tell us about the relationship between ECOC, EFG and GPT?

Let's move on to our next question. EcoChain Ecology is known to have three Tokens, all of which are on the MXC. Can you tell us about the relationship between ECOC, EFG, and GPT?

Guest: Lending is a common scenario in DeFi and a basic scenario for building a DeFi ecosystem. ECOChain's lending protocol involves three tokens: ECOChain's native token ECOC, the lending token EFG in the EFG protocol, and the grace period token GPT.

Borrowing is a more common scenario in DeFi today, and it is also a basic scenario for building a DeFi ecosystem. ECOChain's lending agreement involves three certificates, ECOChain's native coin ECOC, the lending token, EFG, and the grace period token, GPT.

In this lending agreement, users can pledge ECOC tokens to the smart contract within the agreement. At this time, EFG tokens will be issued to users as lending assets based on a 60% pledge rate. The pledged assets can not only be ECOC, but also mainstream assets such as Ethereum and Bitcoin will be supported as collateral in the future.

In this lending agreement, the user can mortgage ECOC tokens to the smart contract within the agreement, at which point EFG tokens are issued to the user on a 60% pledge rate as a lending asset, and the mortgaged asset can be other then ECOC, but will also support mainstream assets such as Ethereum, Bitcoin and other collateral in the future.

When users return EFG tokens, they need to return the interest together. The interest rate is calculated at 0.03% per day, and the total interest calculation depends on the timestamp of the block. When the user's asset pledge rate is below 60%, the smart contract will start liquidation, that is, the collateral such as ECOC tokens will be deducted by the liquidation mechanism.

User will have to return EFG together with the interest. The interest rate is calculated at 0.03% per day, and the total interest charge depends on the time stamp of the block. When the user's asset pledge rate is below 60%, the smart contract commence liquidation, ie collateral such as ECOC tokens is deducted from the clearing mechanism.

Due to the price fluctuations in the ECOC and EFG dual-currency markets, there will be certain non-ideal profit gains, which will lead to the inability of some users to repay their assets in time after misappropriation. Therefore, the EFG and DeFi systems have set up a contract extension function. Paying 5% of the loan amount in GTP can extend the loan for 7 hours. What is more reasonable is that within a certain period of time when you expect that you will not be able to repay, we will have an extension period of 280 blocks to provide you with the payment of the contract extension deposit. The GPT token is the main factor in protecting the interests of investors in the risk extension of EFG lending behavior.

Since the fluctuations in the market price of ECOC and EFG, there will be some non-idealized profit acquisition, resulting in some users' assets being misappropriated and unable to repay in time, so the EFG DeFi system set the contract extension function by paying the loan amount equivalent to 5% of GPT, it can be extended for 7 hours to prevent liquidation of asset, and also a reasonable period of time if your unable to repay, we will have 280 blocks of extended period to provide you with the contract extension margin payment, GPT Tokens are the main factor in the protection of investors' risk deferred benefits in EFG lending behavior.

As for GPT, it has a strong application environment and its capital value is even richer. Whether it is EFG loan or EFG pledge to obtain GPT tokens, it will bring higher value space to the holders from the perspective of token value increase. Whether it is mining to obtain GPT or obtaining EFG through lending, it will bring certain benefits to the participants.

For GPT, its own ultra-strong application environment, more affluent its capital value, whether it is EFG loans or EFG staking to obtain GPT tokens, in fact, from the perspective of the value of tokens will bring a higher value for holders. Whether it's mining for GPT or borrowing for EFG, participants get something.

Of course, some community partners may ask, why do you issue GPT and why do you directly use EFG as a contract extension? If such a token has two applications, wouldn’t it be able to further empower its capital value? In fact, we considered this at the beginning.

Of course, some community partners may ask why we are issuing GPT and not directly using EFG as a contract extension, so that a Token has two applications, would not it be more able to give him capital value, in fact, we thought about it at the earliest.

Therefore, we have issued a small amount of GPT and used it in the form of mining to provide some benefits to more community partners. At the same time, it also led to a reduction in the circulation of EFG! Having said that, I believe everyone can understand the financial model of the ECOChain ecosystem!

So we did a small number of GPT releases and they appeared in the form of mining to provide some benefits to more community partners. It also drives the reduced liquidity of EFG! Speaking of which, you can understand the financial model of ECOChain Ecology!

But we have another concern about repayment equivalence. What should we do when the circulation of EFG and repayment are equal or overflow? If there is no repayment, it is an inhumane move.

But we have another concern is the equivalent of repayment, EFG circulation and repayment formed the equivalent or overflow? this is a dehumanizing move.

05

90% of EFG is generated by borrowing

Moderator: This multi-currency method perfectly circulates the three tokens in the ECOChain ecosystem, increasing the prosperity and application of the ecosystem. This part is also the most important part of the ECOChain ecosystem. If you have any questions, you can ask in the question section below, and our guests will answer them.

This multi-currency approach perfectly circulates three Tokens in ECOChain, increasing the prosperity and use of the ecology. This part is also the most important part of ECOChain ecology, if you have any questions can be asked in the following question session, our guests will answer.

We continue to ask questions. The above guest introduced to us the relationship between the three tokens of the ECOChain ecosystem. Among them, EFG and GPT are the most recently launched tokens, and they perform very well. How much is the issuance of EFG and GPT, and how is it distributed?

As we continue to ask questions, the guests above introduce us to the relationship between ECOChain Eco-Token. Where EFG and GPT are the most recent online matcha, and perform well. What is the EFG and GPT circulation and how is it allocated?

Guest: The total amount of EFG is fixed at 1 million, 10% will be withheld by the issuer, and 90% will be transferred and owned by the loan smart contract. That is to say, 90% of EFG is generated by lending, and EFG will not be destroyed or issued.

The total amount of EFG is fixed at 1 million, 10% will be withheld by the us, 90% will be transferred and owned by the loan smart contract, ie 90% of the EFG will be generated by borrowing, and EFG will not be destroyed and will not be increased.

The total amount of GPT is 10,000, which is only used to delay the liquidation of collateral. Similar to EFG tokens, 90% of GPT tokens are initially deposited into loan smart cards, and 10% will be withheld by the issuer.

The total number of GPT is 10,000 and is used only to delay the liquidation of collateral. Similar to EFG tokens, 90% of GPT tokens are initially deposited into a loan smart card and 10% will be hold by us.

Currently, there are only about 100,000 EFG in circulation, and there are about 80,000 EFG tokens used to mine GPT, and this number has been increasing. If 1 million EFGs are used to mine GPT at the same time, it is estimated that 9,000 GPTs will be fully released in three months according to the current system algorithm. According to the current actual situation, EFG mining will take at least two years to mine all GPTs.

Currently, there are only about 100,000 EFGs in circulation, and there are over 80k EFG tokens mining GPT, which is increasing. If 1 million EFG mined at the same time, 9000 GPTs are expected to be fully mint in three months using the current system's algorithms, while in the current reality EFG mining will take at least two years to completely mine all GPT.

Host: In this case, it can be understood that both EFG and GPT are in their early stages, and judging from the growth since their launch, their performance is still good. You can pay attention to it.

In this way, it can be understood that both EFG and GPT are early, and from the ups and downs since the start of the line, the performance is still good, you can pay attention to.

Then I would like to ask, what is the current market value of EFG? Can you disclose it?

Then the homeopath asked,EFG now market value of what, this is convenient to disclose?

Guest: We can use a simple calculation method to calculate the real circulating market value of EFG. We just mentioned a data, that is, 80,000 EFGs are mined, proving that there are about 20,000 in circulation. We can use 20,000 × the current price. According to the current price, 20,000 × 140 = 2.8 million. Among all projects, the market value of EFG is just the beginning of the project!

The calculation of the market value is very, as we just mentioned that the EFG for mining is over 80k, which prove that there are 20k in circulation. We used 20k X the current price, and the current price of 20000 × 140 = 2.8m. The market value of EFG is just the beginning of the project!

Host: What is the market value of GPT? Can you tell us?

What is the market value of GPT, can you also reveal?

Guest: The spirit of blockchain itself is decentralization, openness and transparency. It can be fully disclosed. According to our existing data, completely public data, the circulation of GPT is 1,000 pieces multiplied by the current market value, 1,000×5,000=5.4 million US dollars in market value.

The purpose of blockchain to be transparent, and it is perfectly possible to disclose that, according to our available data, the GPT circulation of 1000 pieces multiplied by the existing market value, 1000×5000 - $5million market value.

However, you can see through the ECOC block browser that 600 GPT have not been transferred out, so we have to subtract 600, leaving 400.

However, you can see through the ECOC block explorer that 600 GPTs are not withdraw out, so we're subtracting 600, leaving 400.

According to the total amount of the current market value account, the current circulation of GTP is 256 pieces, and the market value is 256×5000=1.23 million US dollars.

Based on the total amount of existing market cap accounts, GTP's current market capitalization of 256 is 256×5000 = $1.28 million.

06

Bitcoin is the best example of behavioral finance

Moderator: This also proves once again that EFG and GPT are in the early stage and there is still unlimited potential. Let's continue to ask questions. The EFG white paper mentions the integration of behavioral finance theory. How does it promote the trading motivation of behavioral traders?

This proves once again that EFG and GPT are early days, and that wireless possibilities are possible. Let's continue to ask,how does the integration of behavioral finance theory, mentioned in the EFG white paper, promote the trading motivation of behavioral traders?

Guest: This is a very good question. Our finance is divided into two sectors. The first sector is traditional finance, which is super-regulated finance, such as banks, pawnshops, etc. Then there is another financial model in the world, which is behavioral finance, and we are all in it.

That's a good question, our finance is divided into two sectors, the first sector is traditional finance, belongs to super-normative finance, such as banks, pawn banks and so on and they also exist a type of financial model in it, it is behavioral finance.

Bitcoin is the best example of behavioral finance. EFG and GTP are also, they have a small amount of necessary basic elements, a small amount of issuance, and the characteristics of must-repay, which promotes the transaction behavior, and the borrowing part has the borrower's profit of 20%, which forms the borrower's trading motivation, so the above theory is completed. Of course, the speculation theory part of behavioral finance is also included in EFG and GTP!

Bitcoin is the best example of behavioral finance. EFG and GTP as well, he has a small number and necessary basic elements, a small number of issues, must repay the characteristics, which promotes the trading behavior, and the lending part of the borrower has been 20 percent profitable, thus forming the borrower's trading motivation, so the above theory is completed, of course, behavioral finance speculative theory part is also included in the EFG and GTP!

Moderator: Can you introduce the ECOC ecosystem’s lending system to us? How should users participate?

Can you introduce us to the ECOC ecological lending system? How should users participate?

Guest: We have integrated a dual-token volatility settlement method into the EFG lending system. The lending settlement is also based on the volatility prices of the dual tokens. You can use ECOC to borrow EFG and you can also use EFG to mortgage GPT for mining. This creates a harmonious resonance between the original ecology and the miner ecology, while promoting ecological development and circulation.

EFG lending system we have integrated the double token settlement volatility method, the loan settlement is also based on the double token volatility price settlement, you can use ECOC to borrow EFG and we could also use EFG to stake mining for GPT, so as to form the ecosystem and miners ecological resonance, while promoting ecological development and circulation.

In the process of lending, mortgage mining and bilateral fluctuations have become the best opportunity for the community ecology to play! At the same time, it also provides a complete display of fundamental data! It ensures that the operation can be profitable through basic analysis, circulation and market value results!

In the process of borrowing, mortgage mining and bilateral fluctuations have become a good opportunity for community ecology to play! At the same time also fully provides fundamental data! Guaranteed operation this can be achieved through basic analysis, liquidity and market value results, thus achieving profitability!

Moderator: If there are no questions, this AMA will end here. It is almost time. I am sorry for taking up your evening rest time. Thank you again for your support and for your attention to the ECOChain ecological project. I believe it will bring you more surprises!