Conflux + TriAngle DAO AMA Recap
A recap of our AMA with TriAngle DAO.
Welcome to our AMA series where we introduce new grant winners to our community. Today I am joined by George, Project Lead of TriAngle DAO.
TriAngle DAO was just awarded a global grant to deploy a borrowing and lending protocol that supports CFX backed collateralized stablecoin on Conflux.
We’re super excited to be working with them, and wanted to introduce them to our community. You can read more about the grant here:
Host (Yildirim): Can you introduce yourself to our community?
TriAngle DAO: Hello Conflux, hello everyone! I am the project lead of TriAngle DAO. I’m glad to be here and introduce TriAngle to the Conflux community.
Sure. I’ve been working in the blockchain industry since 2017. I was a product manager, a developer, and a designer.
Before joining TriAngle, I was deeply involved in several great DApps on Ethereum and BSC, as well as some on-chain tools such as a mobile crypto wallet.
Host (Yildirim): Can you introduce TriAngle DAO to us? What lead you to start it, and what is your long-term vision for TriAngle DAO?
TriAngle DAO: No problem. I’m happy to share some thoughts.
TriAngle DAO is a decentralized autonomous organization that provides trustless financial services to all DeFi users and unbanked individuals around the globe, by leveraging the power of blockchain technology and smart contracts.
TriAngle protocol is a globally accessible stablecoin protocol that provides stablecoins at 0% interest to anyone, anywhere, anytime, aiming to bank the unbanked people.
Specifically on Conflux Network, it is a decentralized borrowing protocol offering interest-free liquidity via stablecoin AUSD against collateral in CFX. By utilizing a novel liquidation mechanism and leveraging an algorithmic monetary policy, it can offer unprecedented benefits for borrowers.
The start point of TriAngle DAO is the huge potential of stablecoins, for both DeFi and the real world. There are significantly large portions of the global population remaining unbanked or underbanked. TriAngle believes every human being deserves equality and has the right to enjoy the benefits of financial services fairly.
With the blockchain, smart contracts, and tokens, TriAngle DAO is eager to provide financial services of stablecoins to everyone, and eventually to construct a better financial world in a decentralized and sustainable way.
In the long term, TriAngle will offer multi-currency stablecoins on multi-chains with seamless cross-chain solutions, in order to benefit existing blockchain users and to avoid the pitfall of full dollarization.
Host (Yildirim): Conflux is very excited to be supporting you! Can you tell us how you heard about Conflux and what made you decide to build with us?
TriAngle DAO: It’s my pleasure to work with Conflux! Conflux Network is a high-performance blockchain with a lower gas fee. Its goal “Conflux enables creators, communities, and markets to connect across borders and protocols” inspires us a lot.
We believe the high loyalty and the activeness of the Conflux community is an excellent environment for the first launch of a new project.
In terms of choosing Conflux Network, to be specific, there are three main reasons:
a. USD stablecoins are the fundamental assets of the Conflux Ecosystem, especially for DeFi legos. There is a huge demand of USD stablecoins from the Conflux community and Conflux Dapp projects. However, there aren’t many USD stablecoins circulating throughout the whole ecosystem. We believe a protocol-issued native stablecoin with crypto assets backed and an algorithmic mechanism would greatly benefit the Conflux Ecosystem.
b. The most circulated crypto asset and the most widely used cryptocurrency on Conflux Network is CFX. Due to the lack of usage scenarios, CFX holders are constrained in DeFi activities and are in demand of a practical solution to increase liquidity while holding CFX on hand. TriAngle believes CFX-backed stablecoins are able to address the situation.
c. In addition to the issuance of stablecoins, the reliability and stability of the protocol should also be taken into consideration. Among all borrowing and lending protocols in the market, “Liquity Protocol on Ethereum” is one of the most secured and well-designed protocols that support stablecoins. Thus, TriAngle takes “Liquity “ model as the prototype and further tailors features and mechanisms to better satisfy CFX holders’ needs.
Host (Yildirim): It sounds like stablecoins play an important role on TriAngle. Could you explain more on the pegging mechanism of stablecoins and liquidation mechanism of TriAngle?
TriAngle DAO: Sure. I will explain the pegging mechanism of stablecoins first.
The pegging mechanism contains two parts, hard peg, and soft peg. The hard peg mechanism leads to direct arbitrage opportunities when the price of AUSD is below $1 or above $1.1. The AUSD holders can call the redemption function to redeem 1 AUSD to $1-valued CFX if the price of AUSD is below $1. Users can also deposit CFX and borrow AUSD with a 110% collateral ratio and get more CFX than deposited if AUSD is $1.1 above. The soft peg mechanism leads price expectation of AUSD equal to $1 within TriAngle’s system.
You can check out more info on the pegging mechanism here:
Then I will go through how the liquidation mechanism works.
TriAngle utilizes a two-step liquidation mechanism in the following order of priority: 1. Offset under-collateralized Banks against the Stability Pool containing AUSD tokens. 2. Redistribute under-collateralized banks to other borrowers if the Stability Pool is emptied.
TriAngle primarily uses the AUSD tokens in its Stability Pool to absorb the under-collateralized debt, i.e. to repay the liquidated borrower’s liability. Once the Stability Pool is not sufficient to offset under-collateralized Banks, the redistribution of the collateral and debt will be triggered in maintaining system solvency.
Under extreme circumstances, Recovery Mode kicks in once the total collateral ratio (TCR) of the system falls below 150%.
Host (Yildirim): Awesome Explanation! What can our community look forward to in the next few months?
TriAngle Dao: Thank you. We have a lot of things going on in the next few months!
I’d like to share this architectural diagram first to help me elaborate on TriAngle‘s roadmap.
TriAngle Protocol V1 will be launched on Conflux Network in late November. The CFX holders are able to obtain instant liquidity by borrowing AUSD against the collateral in CFX without paying any interest. Within TriAngle Protocol, AUSD holders are able to deposit AUSD on hand as Stability Providers into the Stability Pool, rewarded with the acquisition of collateral from the banks being liquidated, plus the allocation of TAD tokens, the system’s secondary token. TAD tokens can be staked in order to receive extra TAD tokens rewards and proportional rewards from the protocol’s revenue stemming from borrowing fees and Redemption fees.
Despite mining pools within the protocol, AUSD will also be used to interact with DeFi projects over Conflux Network, such as Koichi Swap, and FLUX in the near future.
Once TriAngle Protocol V1 successfully lands on the Conflux Network, the development of V2 will be put on the agenda with the integration of multi-chain deployment, new stablecoins release, and more collateral types onboard.
TriAngle will continue exploring AUSD use cases within the Conflux ecosystem and discovering the partnerships in the real-world market.
This is just the beginning of the journey for the TriAngle Protocol. If any projects or investors are interested in TriAngle, please don’t hesitate to reach us at TriAngleDAO@gmail.com. The more projects that integrate AUSD, the sooner TriAngle will be able to deliver on the promise of enabling easy access to trustless financial services for all.
Host (Yildirim): Awesome! Thanks for joining us for the AMA, can’t wait to see what we can do together. If our community would like to get in touch, and stay up to date on your project, where should they go?
TriAngle_Dao: Superb! Please check out our official website, Medium, and Twitter for more updates.
Official Website: https://www.triangledao.finance/
Community Member: Maxim — Do you have AUDIT certificate or are you working to AUDIT your project, so that the security of the project becomes more secure and reliable?
TriAngle_Dao: I will take this one. Thank you for your question. As a DeFi project, asset security is TriAngle’s top priority. We are working on AUDIT. Due to a huge demand of AUDIT, we are in the line. Please expect 1- 2 month for our AUDIT report.
Community Member: A. R. V. Crypto — What is the way to generate profit / revenue to continue the project? And what is that revenue model? How can you benefit both the investor and the TriAngle project?
TriAngle_Dao: This is a great question. I also saw some questions related to TAD token models. TriAngle DAO’s token TAD plays a key role on revenue for all and project sustainability.
DAO will have an official announcement of TAD token distribution very soon. I can give a quick spoiler here.
More than 60% of TAD tokens will be rewarded to the TriAngle Community, through mining activities, including stability pool mining, staking pool mining, LP mining, and etc. The remaining TAD tokens are reserved for early contributors, investors, and DAO management, with vesting.
Community Member: Angel — Can You list 1–3 Killer Features Of This Project That Makes it Ahead Of its Competitors? What Is The Competitive Advantage YOUR Project Has That You Feel Most Confident About???
TriAngle_Dao: Thanks for the question. I guess many defi end-users have the same question. My answer is: 0% interest with low collateral ratio, multi-stablecoins with multi-collateral assets on multichains, stablecoins cross-chain solution, and usage cases.
We are pushing usage scenarios aggressively, we take use-cases of stablecoins as very important thing on TriAngle, both on-chain and on real-world.
🎉Triangle DAO AMA Winners🎉
Thank you to all who participated in our Triangle DAO Telegram AMA last week.
To claim your prizes, please DM @TriAngle_DAO directly with your ConfluxPortal wallet address. If you don’t have a ConfluxPortal wallet, you can download our browser extension wallet here: https://bit.ly/3xyilbq
Please note: Triangle DAO will be dispersing the prizes. Please speak with them directly.
🏆Congratulations everyone! 🥳