DuckDAO AMA Recap
Last week DuckDAO held an AMA with Cage, our Cook CTO. Below you’ll be able to read through a recap of the AMA that includes a number of the questions that were received from the community.
DuckDAO Introduction — Today we welcome back the Team from Cook Finance. Most of our community is very familiar with Cook Finance but for those that are new, can you please give us a brief background of yourself?
Hi everyone, it is nice to meet you all. This is Cage from Cook Finance, I’m the CTO of Cook Finance. Most of my work focuses on product development and technical implementations.
Before starting Cook Finance, I was a software engineer at C3.AI and Dropbox. I like to play tennis and basketball, and had a great time watching Wimbledon and the UEFA Euro Championship.
As our community is well aware, Cook Finance had a fabulous IDO and the TGE went very smoothly but a lot has happened since then and we would love to hear about your updates. First thing we notice is the Rebrand of the Logo. Can you tell us what you were planning to achieve with this rebrand and have you accomplished what the rebrand was intending to do?
Right, the rebrand was an exciting change. The reason we did it was because we wanted to improve the user experience from every angle including even the most basic but also important elements.
When you’re building a platform that potentially many many people will use in the future it’s good to anchor it with a recognizable logo that appeals to a lot of people. When you first visit the site to learn more about Cook, when you use the DAPP when you see the token on exchanges it’s everywhere and we wanted to make it great so that it stands out.
We know that you launched your mainnet on Ethereum. How did your launch go? What issues are you currently encountering?
Yes we launched on Ethereum and it went very well. We did a lot of testing to make sure everything was working properly and so far everything has been going well. The one thing that we did hear from the community was the desire to have the Mainnet on other chains so we are actively working on delivering that now. There are also other suggestions on protocol features and fund strategy, we will definitely adopt great ideas from communities
That’s great that you’re listening to your community and spreading out to different chains. One thing that we also noticed during this run was that Ethereum even though its fabulous…..has some steady competition. But love that you guys are in tune with what the community wants. Let’s talk about the Funds that guys have recently launched….Really excited to know more about them as they’re quite unique. Can you explain a little bit more in detail what kind of funds they are and who are they geared to?
Yeah, a successful product always puts their customers as the highest priority. The two first funds are geared towards people who may or may not have not previously bought into a DeFi fund before.
So we decided to keep it simple. A largecap crypto index that nearly everyone can understand and then DeFi index that enables people to diversify into multiple DeFi cryptos for those who want exposure on a broader level. And there will be more index/funds coming for different sectors or even with different features in the future.
Personally I think Funds are great especially for those that don’t know details about specific assets but have a general feel about market sentiment.
Right, we want to make crypto asset allocation much easier for everyone
For the Index funds, you have the NAV Price and DEX price. If you redeem your assets back, which price is the fund calculated at?
I love this question, the person who asked this question definitely took a close look on our Cook protocol DAPP.
It’s the NAV price. The NAV price comes from the collateral components under a ckToken (fund), so when you redeem, it’s calculated based on the NAV price.
The DEX prices are the ckToken price on a decentralized exchange, which pool depth, and price of token2 are both considered. Market behaviors such as buy and sell also effects a ckToken (fund) DEX price while NAV prices simply come from the sum of all underlying cryptos.
Do you need to use the $COOK token to purchase the fund?
No need to use Cook token to purchase the fund (ckToken). You can either swap for the fund specific token on DEX or if you already have the fund components in your wallet you can issue them
We have a main DAPP video guide on our Medium which nicely introduces how to swap or issue ckTokens.
Regarding the fund, If you’re bearish on the market, is there a way to short the fund?
Good question! In the future we will be launching new funds on the platform that will enable anyone to invest in multiple different types of funds, even those that are built to short a market.
That’s why I think it’s very exciting what we are building in that there are so many strategies that can be rolled out through the Cook platform.
As we’ve all experienced in this market…..nothing goes just straight up so different options are going to be great! Is your platform geared more for existing crypto users or are you also trying to on-board a non-crypto audience? (by the way I wanted to reiterate that your UI is gorgeous!)
Thank you : ) we spent much effort from design to implementation with consideration for every user including DeFi experts and newbies : )
Our platform does require a bit of knowledge about crypto but we also try to make it easy for new crypto users to learn fast.
We created several Youtube videos that guide users through our most basic features and even walk users through the process of buying into our first two funds. We hope that will help everyone easily use our DAPP.
Could you talk a bit about how it is to design/build on HECO? Any short comings that makes your work easier? Are there any specific features you plan to build on HECO(like the Index funds), that you are excited about or think users would want?
Designing and building Cook Protocol on HECO is quite similar to the work on ETH, since HECO is also EVM compatible.
Cook protocol is a platform, which means the funds created on HECO can be quite different from ETH. One good and easy to understand example is having a HECO index which only covers the protocols’ tokens uniquely on HECO.
A new feature I’m personally excited about is yield bearing index, which deposits the underlying component of a fund to other yield generation protocols to gain extra yield, but this feature will also be released on other chains as well such as ETH, BSC or even Polygon in the future.
Yield bearing index…that sounds interesting. Would you be able to tell us anything additional about this or do we need to wait?
Sure, yield bearing means to put underlying components of a strategy(fund) into other yield generation protocols to gain extra yield. In that way, not only the index can make profit from market growth and allocation, but also gain more profit from external protocols. I’m pretty excited about it.
Is there an approximate timeframe when this will be in effect?
We’re at the stage of final development, but more tests need to be done since there is always risk when integrating with external protocols. We want to make sure investor’s crypto assets in the Cook protocol are safe, please stay tuned and watch our biweekly update on Medium closely : )
Awesome! Thanks for sharing that little tid-bit with us. I read your WP at the section about Fund Security and found out that proper permissions are assigned to fund managers to ensure the security of the funds in smart contracts. As a result, ckToken holders own the underlying assets in the respective fund, while fund managers can only allocate funds to whitelisted DeFi markets. Regarding this, my issue is — do the fund managers have trading access to smart contracts and eventually can they have any withdrawal permissions? What is the project’s structure to manage permissions?
Yes, security is very important for our platform and we take many measures to do this. Fund Managers are able to allocate funds only to whitelisted cryptos that have passed certain requirements on our platform. Fund managers won’t be able to withdraw investor’s deposited assets, fund managers only have the power to allocate them. Besides, the cryptos or and external protocols a fund manager wants to use to manage their fund has to be examined and whitelisted. Fund managers can’t arbitrarily allocate investors’ assets into a non-whitelisted crypto nor protocol to prevent any financial attack.
Ok back to the two tokens: $COOK & ckToken. What are the differences in the functions of these two tokens?
Good question, I know it’s a bit confusing, let me try to explain here.
The Cook token is used for the basic consensus mechanism and to use for transaction and incentive fees on the platform, or events for platform profit sharing and governance in the future.
The ckToken is meant to stand for the tokens of each fund on the platform. When swapping or issuing funds to buy into the fund, users will receive a specific named ckToken. For example for the crypto largecap index, users will get CLI which stands for Crypto Largecap Index.
Are there any other announcements that you would like our community to know about?
Yes, sure, I have some great news! First, batch issuing is coming soon. For batch issuing, people on the Cook platform will basically be able to pool their orders with other users to significantly save on gas fees up to 95%. This is just one of many new features we are working to build out.
Secondly, a CLI staking competition with a referral program is coming soon, there will be bonuses for top stakers and referrals, all participants will receive some rewards as well, so please stay tuned!