HECO AMA Series Recap — Channels
Guest: Keran, CMO of Channels
Host: Andy of HECO
Questions and Answers
Q1:Hel Keran, Could you tell us more about your project? In other words, what do Channels do?
A1: Channels is the leading multi-chain innovative DeFi lending protocol. Users can deposit tokens (including single token and LP) and borrow tokens in Channels, and both deposit and borrow will receive platform token CAN rewards. As a new generation of DeFi lending platform, Channels quickly became the world’s fourth-largest mortgage lending platform in just 10 months, and it is also the world’s largest LP mortgage lending platform, and it has never had any security incidents.
Currently, Channels supports 18 mainstream tokens and 10 LP mortgage lending on HECO, and 18 mainstream tokens and 11 LP lending on HECO, giving users multiple choices to the greatest extent. Users can stake LPs to lend a single currency, which can greatly increase the rate of return (at least doubled) while increasing the utilization rate of funds, and optimize the rate of return of users
Channels is about to announce the deployment of the V2 contracts. Channels V2 will first support leveraged lending, followed by leveraged trading in mainstream tokens, and last but not the least, the lending yield vault.
Q2:Can you tell us more about Channels V2?
A2: Yes, I would love to. The main driver for the development of Channels V2 is to improve capital efficiency, by adopting leveraged lending, leveraged trading, and implementation of lending liquidity yield aggregation strategy (LLYA).
Leveraged lending is evolved from mortgage lending, in which users deposit funds on the platform and leverage it for liquidity mining on DEX. It should be noted that the limitation of this is that the loaned funds must and can only be used for liquidity mining.
Channels V2 innovatively integrates leveraged lending and mortgage lending into one liquidity pool, it means that users can either over-collateralize and borrow assets, or directly use the leveraged lending function to achieve leveraged mining. Such an initiative not only meets the needs of borrowers for flexible use of funds, but can also increase profits through leveraged mining. At the same time, because the shared fund pool has greatly increased the utilization rate of funds, deposit users can obtain higher rewards.
For experienced DeFi users, it is a very common investment strategy to use a lending platform to go long or short on assets.In response to this demand, Channels V2 adds the function of one-click leverage, which is essentially to allocate funds for users to trade certain assets to achieve multiple longs and shorts.
- How It Works?
For example, Bob staked $1,000 worth of BTC on Channels. He can use the leveraged trading to directly leverage his staking for $3000 worth of BTC, and at the same time add a loan of $2000. In this way, when BTC goes up, he can get 3 times the profit. At the same time, the use of leveraged trading also increases the total amount of funds for users, so the mining rewards obtained by users will also increase. As shown below：
Lending Liquidity Yield Aggregation （LLYA）
The over-collateralized lending model has a congenital shortcoming: the value of the user’s mortgage token is less than the value of the token that the user can lend, as a result, the capital utilization is unsatisfactory. The unborrowed and unused funds have not generated any rewards for the platform and users, and have resulted in capital underutilization.
Channels V2 creatively alleviated this problem to a large extent through the first original Lending liquidity yield aggregation（LLYA). The specific implementation method is to use a set of liquidity management mechanisms to allocate part of the liquidity reserve into other platforms in a form similar to a yield aggregator to obtain benefits under the premise of ensuring that user withdrawals are not affected. The farming rewards will be directly given to deposit users, boosting the return rate of funds on Channels. In addition, in order to ensure the absolute safety of funds, funds will only be put into reputable DEXs, such as MDEX on heco, that have passed the risk analysis.
This game-changing function initiated by Channels is a major innovation for lending products. It is expected that this strategy can bring higher deposit interest to users when it goes live in the future.
Q3:Keran, please tell us about the Channels community?
A3: The community of Channels is very active. The Telegram group has 30,000 followers, Twitter 43.8K Followers, and the Chinese community is also one of the most active in the heco project.
Q4:There are many similar projects out there, some have been quite successful. What is special about Channels compared to other projects?
A4: I will talk about this from five aspects: product safety, user benefits, user experience, product highlights, and team background
The first and most basic point is security. Channels is the first lending platform in the Heco ecosystem that adopts a decentralized oracle solution, and it is also the first lending platform who completes open source, verification and auditing before launch. There is no doubt that among all lending products, the safety of user assets is the most import, we have 0 incidents since our launch. In addition, Channels has been audited twice, by Fairly Security and knownsec.com, and now audited by Certik.
The second point is user benefits. At present, there are many ways to obtain passive income through channels. Take deposit and loan mining as an example. Currently, assets that can be borrowed on our platform include 18 mainstream currencies such as HT, HBTC, ETH, HUSD, USDT, UNI, and DOT. Most mainstream currencies have the highest deposit income on Channels, and most mainstream currencies have the lowest borrowing costs on Channels. Data will not deceive people. At the same time, we are the first lending platform on Heco that supports LP mortgage loans and the largest LP lending platform on Heco.
The third point is user experience. The user experience of Channels has been praised and recognized by many users. Whether it is the convenience of interactive operations or the overall UI style, our users use one word to describe Channels: smooth
We sincerely invite you to experience the channel:https://channels.finance/
The fourth point is the highlight of the project. Channels is the first project on HECO to support LP lending. The original intention of Channels is to expand the collateral, maximize the utilization of funds, and thus increase the income of users because LPs can also obtain rewards.
Last not least, Channel team members are from industry-leading institutions and internationally renowned universities and have extensive experience in the blockchain, finance, and computer industries. The background of the entire Channels team is still very strong and reliable, very young and energetic. They are a group of young people who are committed to making a difference in the DeFi world. At the same time, Channels has received investment from institutions such as Gold Krypton Capital, Water Drop Capital, Axia8 Ventures and others.
Q5:How do you guarantee users’ asset security?
A5:First of all, Channels is the only project on HECO that has zero security incidents since it went online in February 2021. The most important thing is technology. Only by being technically foolproof can the security of users’ assets be guaranteed. This is the premise. In order to ensure the safety of user assets, Channels independently designed and developed a decentralized multi-source data verification oracle solution, which has been upgraded to version V2. There has not been any incident of user assets being stolen. In addition, we also have a professional risk control consulting team.
The second point is that the team is experienced. Channels project CEO Yang Ming has rich project development experience before Channels, including DeFi project development experience. Attaches great importance to engineering safety and has extensive experience.
The third point is to be cautious. For example, the team completed the development of the project very early, and has been repeatedly testing for nearly a week. There are also currency listings, only mainstream currencies listed on Channels. Although this has been complained by many community members, it is clear that Channels puts the protection of user assets in the first place.
The platform mechanism is another important reason, and the setting of the platform mechanism should be reasonable. For example, the interest rate of some small currencies cannot be too high. The attack on VENUS is directly related to their high mortgage interest rates. In addition, there should be a certain risk reserve to ensure the safety of user assets.
Q6: What’s the recent development of Channels?
A6: Our biggest development is V2. By adopting leveraged lending, leveraged trading, and implementation of lending liquidity yield aggregation strategy (LLYA), Channels V2 is an innovative upgrade of lending protocol to improve capital efficiency.
The picture above is the development milestone of Channels. Tell you about the recent development of the project:
Channels has consistently ranked first in the TVL of loan products in Heco, and the total TVL has been consistently ranked second among all heco products.
It is the world’s fifth-ranked mortgage lending platform, and the world’s first-ranked LP mortgage lending platform has also been recognized by many overseas evaluation agencies
● There has never been any security incident since it went online
● After full discussion with the community, after a vote, it was decided that the platform token CAN is about to be split, from 5 million to 1 billion. The split voting and security audit have been passed
● Channels cross-chain to Arbitrum on September 28, achieving a MAX TVL of USD 9 million, making it the third-largest lending platform on Arbitrum within 1 day.
● Channels started Liquidity mining on @SushiSwap (Arbitrum) ! Strat: November 15th, 12PM (UTC). Just a reminder, our accelerated mining event will continue on Arbitrum, including single tokens and LP. http://arbi.channels.finance
Q7: What is the future planning of Channels?
A7: In the future, channels will continue to focus on user assets in the first place, continue to create value for users, Channels may consider multi-chain development, so that users can borrow more assets on Channels, and deposit users can get higher deposit income.
What we can expect is:
Channels recently plans to cross-chain Polygon and other main networks to open up the multi-chain DeFi ecosystem and realize the joint development of the Heco chain and the BSC chain. For users, it provides a new and secure lending platform that optimizes user income. For DAPP project parties, the lending platform is the underlying infrastructure, and more DAPP projects can be superimposed on Channels to increase the user’s capital utilization rate and annualized rate of return.
● Product upgrade
DAO upgrade, optimize DAO governance rules, thereby increasing the rate of return of user deposit DAO
The product V2 version, the team will optimize the product on the basis of loan
Security Upgrade： Channels added Time Lock on Arbitrum, and will add on all chains in the near future, to avoid flash loan attacks and exploit. This is a huge Security Upgrade, and Channels will assure your assets in Channels are SAFU.
●CEX LIsting： Considering being listed on Korean Dex
● And last but not the least, Channels V2! The deployment of the V2 contract will be in three steps. Channels V2 will first support leveraged lending, followed by leveraged trading in mainstream tokens, and last but not the least, the Lending Liquidity Yield Aggregation （LLYA）.
Mining APRs will be increased during the first week of launch! More excitement awaits in Channels! Please visit the following links!