Tezsure Developers: the Goal of Plenty DeFi is to Bring More Liquidity to Tezos
On May 27, Bernd Oostrum and Om Malviya, two Tezsure developers, have launched Plenty DeFi. Over a month, users have staked $15 million on Plenty DeFi, and the app itself has become the third most popular Dapp on Tezos.
Plenty DeFi is a decentralized platform for profit farming where users stake XTZ, KALAM, ETHtz, hDAO, USDtz, wLINK or wMATIC to get profits in PLENTY tokens. The developers intend to add automatic profit reinvestment, AMM, DAO governance, and an IFO (farming pool token sale) to the platform.
We have talked with Bernd and Om about attracting liquidity to Tezos, the essence of Initial Farm Offering, and the problems faced by Tezos ecosystem developers.
Hello Bernd, Om! Please, tell us about yourself. How did you get into cryptocurrencies and blockchain development?
Om: I got into blockchain and crypto around 5-6 years ago when I got introduced to bitcoin by my brother. I saw an opportunity and started simply by writing blogs, sharing what I had learned. This became one of the first and top read blockchain media websites around 2017 and is still maintained well by the team behind itsblockchain.com
Around 3 years ago, I pushed myself into the more technical side of blockchain technology and started learning how to write smart contracts. When Bernd and I started discussing Tezos in 2018, I ended up falling into the Tezos rabbit hole for obvious reasons.
Bernd: I started blockchain development when Ethereum launched. The troubles around the DAO in 2016 scared me though. Not only the hack (or usage) of the smart contract but also the nonchalance in throwing immutability out of the window. Thanks to all that drama I found out about Tezos. I was impressed with the innovations Tezos proposed, to avoid Ethereum classic/Bitcoin cash-like problems in the future.
In 2017 everybody was raising millions in ICOs, but I couldn’t come up with an epic idea, so I wanted to get some work experience first. During my corporate time, I did pretty cool projects with big companies and the Dutch government. Unfortunately, it never led to anything beyond proof of concepts. When trying to push projects ahead I was told “If you want to innovate, you should go to Silicon Valley ”. So I left and went to California. There I met this amazing Rajestani dude called Om during the Hero Program of Draper University in 2018, and we have been building on Tezos ever since.
What projects are you working on now?
Last year Tezsure pivoted to DeFi. Since then we have been developing multiple exciting projects that are still in stealth mode.
About two months ago, Tezsure and DGH started discussing the Tezos ecosystem. We talked about what was needed to bridge liquidity from other chains and how we could kickstart DeFi on Tezos in a fast and agile way. We were honoured to participate in a collaboration with DGH, so we grabbed the opportunity and launched Plenty DeFi.
What is the goal of Plenty DeFi? Can you explain it in a few words?
The primary goal of the project is to bring more liquidity to Tezos. We are trying to incentivize liquidity providers from other blockchains to bridge their assets to Tezos.
Why did you choose to name it “Plenty DeFi”?
We bounced around many different names. This name was an instant “yes” for everyone involved. Plenty not only refers to abundance but also to the mythological ‘Horn of Plenty,’ a horn filled with inexhaustible gifts of celebratory fruits.
What was the hardest thing while developing Plenty?
Lack of tools, documentation, and best practices for writing smart contracts, makes developing on Tezos challenging.
Specifically, a challenge we faced was getting the meta-data of the PLENTY token correct, as the template on SmartPy didn’t have Michelson annotations for FA 1.2, which were introduced around 3 months ago, so we had to sync with them to update it. Many developers shared the TZIP-12 standard with us, but in all docs, it states this is for FA 2, while Plenty uses FA 1.2.
SmartPy was very helpful and the Edonet upgrade introduced BLOCK_HEIGHT. That made it easier to develop contracts based on the block level instead of timestamp.
What is the purpose of the PLENTY token?
The Plenty DeFi ecosystem has one token: PLENTY. Currently, we use PLENTY as an incentive for staking in pools and farms. When PlentySwap launches, the trading fee will be charged in PLENTY. To participate in governance, which is currently under development, a user has to hold a certain amount of PLENTY as well.
Splitting up functionalities between different tokens will reduce the value of PLENTY. Therefore, we want to give one token all the utility, and all the value.
So, at the moment the users can only stake and earn PLENTY? What features are you planning to add next?
We will add one pool that enables users to stake PLENTY and earn a different token. But first, we’ll be releasing an Automated Market Maker (AMM) called PlentySwap!
Can you explain why Initial Farm Offering is better than ICO, IDO, IPO and other kinds of initial offerings?
ICOs and token sales became popular in 2017, and many projects were attempting to solve problems using blockchain. While many succeeded, it’s hard to avoid the fact that there are several issues with ICOs: vulnerability to theft, human error, and a lack of privacy.
An ‘Initial DEX Offering’ (IDO) can be launched on a DEX with liquidity pools. Many DEXs do not control or check IDOs being arranged on them. As a result, these events can be accompanied by fraudulent practices such as rug pulls.
Initial Farm Offerings (IFO) undergo a review process by the team of the platform. Definitely, this does not guarantee that an IFO project will be successful. However, it can help to stave off obvious frauds that flourish on anonymous IDO platforms.
Supporting early-stage projects has always been important to us. That’s also one of the reasons why we started Tezos India a few years ago.
We want to help smaller projects raise funds for their project in PLENTY-XTZ LP tokens. Users that provide these LP tokens receive the token of the project in exchange. After redeeming the LP tokens, the LP tokens are swapped back to XTZ and PLENTY. The XTZ is distributed to the project as a developers fund and the PLENTY is burned.
The Plenty DeFi website says that there were over 9000 PLENTY burned already. What is the reason to burn them?
75% of the withdrawal fees are used to buy back and burn PLENTY. First of all to add a bit of buying pressure for PLENTY, and in the second place to reduce the total supply. All of these features are open for governance votes when the Plenty DAO is introduced.
What kind of DApps or DeFi services does Tezos lack the most? How can developers improve the protocol and ecosystem?
A Truffle-like framework (well maintained and updated), a documented approach for building production-grade apps in SmartPy (and in Ligo as well).
Tezos needs more tutorials for DeFi in SmartPy (like baseDAO, Vesting contracts, Airdrop scripts etc). Shoutout to the Kolibri team for open sourcing their DAO work.
Something that would really help is sharing experiences between developers. Which challenges were faced, what was learned from audits, what are the best practices, what are basic mistakes, all in one place? A platform like this could be used to get all the tooling (be in any language or any tool) in sync with the latest standards, whenever released (eg. tzip-12, tzip-16, etc.).
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