Crunchy Developer Joshua Dechant: I Live and Breathe Tezos
In our previous entries, we talked about DeFi products on Tezos like the WRAP protocol for synthetic assets, stablecoins Kolibri and Stably, and Homebase for launching a DAO. Today it’s time to talk about Crunchy.network, a platform set to provide DeFi services to other Tezos-based projects.
To get a better grasp of the platform, we had a nice chat with Joshua Dechant, Crunchy’s developer. He told us about the CRUNCH token sale, the DeFi-as-a-Service concept, and Crunchy services.
Hello, Joshua! Please, tell us about your background. How did you get into the DeFi space?
I’ve been a software engineer for nearly 20 years. For a while, I’ve had an interest in crypto and blockchain, but I actually got into it until a few years ago. I got involved in a crypto puzzle game, joined a team, and started to do some hackathons with a few of the team members. One of the hackathons was Future of Blockchain 2. The organizers approached us as they were having some trouble getting enough people to fill the Tezos category and asked us if we would be interested to give it a shot. So we did a zero-knowledge puzzle oracle on Tezos which turned into the foundation work for Project Uanon, which is another Tezos project I am involved with.
At some point along the way, I met the people from TQ. They mentioned that there were developer openings and said I should apply. So I did, and I got the job. So now I live and breathe Tezos. I work full time for TQ as a senior engineer. I’m a partner in Chain of Insight, the org that is doing Project Uanon (the crypto puzzle adventure on Tezos). And now I’m also working on Crunchy.
Tezos DeFi is very new and I just sort of stumbled upon that community. Immediately I saw the need and desire for strong products and services, and immediately I was welcomed by the community being a known dev.
Why have you chosen to develop on Tezos?
When I first got to develop on Tezos, the tooling was very immature. There was no Temple, no Beacon. Taquito was pretty new but at least we had that. And Ligo was around too. I believe the mainnet was running Babylon, so it was pretty early on. I guess I was just taken in by the ideas that Tezos had offered.
What is Crunchy then?
Crunchy is a DeFi-as-a-Service platform. Developers and projects can come to the platform and use our products and services to help jumpstart their projects. We also have a big focus on services that provide security to the ecosystem and can help projects build trust with users.
The Crunchy had an ICO on May 10. Are you satisfied with the results?
I was blown away. The sale was slated to run for 2 weeks, and it sold out in under 2.5 hours.
Can you explain the CRUNCH tokenomics? Can it be applicable beyond speculation and crDAO farming?
On Crunchy, the main purpose of CRUNCH is to help pay for Crunchy service fees. The fees are a flat rate of CRUNCH plus percentage. Users will be able to opt to pay more CRUNCH upfront for a lower percentage rate. Plus, as you mentioned, it will be one of the three farms that yield crDAO. Some other projects have also expressed some interest in using CRUNCH within their apps as a payment method.
What is the purpose of the crDAO token?
crDAO is the Crunchy DAO token. Holders of the token will be able to file governance proposals and vote on them. The DAO will also have the power to vote on and change the service fees, determine what happens to the collected service fees, have the power to mint more crDAO, etc.
What Tezos Ecosystem problems Crunchy will solve?
Tezos DeFi is very new and there are a lot of eager people in the community waiting for it to take off. Perhaps they might be a little too eager and will go in on any project. Sadly, this is how people get the rug pulled, scammed, and burned. This is not unique to Tezos, it happens in every DeFi ecosystem.
So one of the primary goals of Crunchy is to provide services that other projects can use in order to help build a layer of trust with users. For example, our Meat Lockers will enable projects to lock up their liquidity tokens (LP) for a specified period of time. Users will be able to come to Crunchy and see how much liquidity is locked, for what tokens, by whom, and when it unlocks. This provides a fundamental level of trust to the project. If they lock their LP tokens for 6 months, you will have certainty that for at least those 6 months the project developers won’t be able to pull their liquidity out, crash the price, and skedaddle. I would personally go so far as to say that one should question any project that doesn’t lock their liquidity via Crunchy once we get going.
Another problem that we’re solving is the general lack of development resources. There are a lot of projects out there that are seeking certain things in DeFi like farms, token sale contracts and so forth, yet they lack the means to develop it themselves. They can come to Crunchy, have some of those things managed for them, and focus on what really matters to them.
Could you explain the DeFi-as-a-Service concept?
This is going to be a bit techy but anyway. Say, you have a regular web application and it needs to have a database. You can choose to launch a server, install the database engine on it, and be responsible for the care, maintenance, server administration, and all the other fun stuff that comes with running your own database. Or, alternatively, you could choose to use a managed database service, something nearly all cloud providers offer.
DeFi-as-a-Service is similar. Crunchy will offer an expanding set of DeFi-related products and services that product owners and developers can use in their projects without worrying about all the implementation details. Crunchy will be providing the contracts, the UI, and the ongoing maintenance and upgrades to them.
What DeFi services the Crunchy will have?
Our initial roadmap has the following services on it:
- Farms — Create your own yield farm. Bring your own reward token. Configurable start and end times. Configurable “bonus” periods.
- Meat Lockers — Lock LP tokens for a specified period in order to build confidence and help secure the LP pools.
- Slow Cookers — Vesting for XTZ or tokens.
- Pie Slicer — Slice an NFT into a supply of fungible tokens.
- Blender — Combine 2 or more tokens together according to a recipe to yield a new token.
About the “Egg Timer” solution: how the expiring limit orders will work with DEX AMM? If I remember correctly, even Uniswap doesn’t have native limit orders.
We’ll see if it works or not. But the idea is to have a normal order book where users can make and take orders, but also have automated bots running in the background and seeking to fill orders when the desired price’s entry point or exit point are reached.
What projects would you like to develop once Crunchy is ready?
Honestly, I’m not sure yet. I’ve got a lot to focus on having TQ, Project Uanon, and Crunchy on my hands. I definitely will be busy for a while. I’ll be sure to let you guys know what I’m up to, though.
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