FTM Alerts Q&A — RECAP
Check out the best from our amazing Questions & Answers session on one of the biggest Fantom communities
@AndyR
- Can you tell us why you chose the name 5Table? I have my idea about this because the number 5 looks a lot like the letter S and you allow five types of stablecoins to be deposited… am I on the right track in my thoughts
- Is there a predefined white list of protocols and underlying pools for the deposit of assets? The platform 5Table shows the information on how these assets are distributed: in which pools and in what proportion? I always like to know where are my assets.
- 5Table uses underlying protocols to obtain returns on deposited stablecoins. Do you use a single pool on a single underlying protocol or do you use multiple pools on several underlying protocols? If it is the second option (which seems more reasonable and safe to me), can you tell us what criteria you take into account for the distribution of assets in the different pools?
Hey @AndyR Great questions! 1. You are right! Good that you noticed it. 5table comes from the word stable, making reference to the stablecoins in which our protocol is based. We replaced the S with a 5, because it looks pretty much the same, and the protocol is built around the 5 most used stablecoins of the chain. — In Fantom there are USDC, fUSDT, DAI, TUSD & MIM — In our BSC platform will be USDC, BUSD, USDT, DAI & UST
2. Very important and smart question. Seems that you are an experienced user. The information of which pools and protocols are we using will always be available. This is not static, since we’ll move it accordingly to offer the best alternatives to the users, taking into consideration the profits rates and level of security
3. I’m now seeing that I already answered partially this question in my last answer haha. It uses multiple pools across several underlying protocols indeed. There are multiple aspects we take into consideration, but the main two are the attractiveness of the profits that are offered, and the level of security of the platform. We have a financial engineer in charge of research that’s always searching for the best alternatives across the whole network, and a security expert in charge of reviewing the contracts of each pool we use
@SheilaF88
- Can you tell us what use cases the Token 5TABLE has? Is it necessary to hold it to participate in 5Table platform?
- In 5Table stable coins farming will be carried out. But will users who wish to hold the 5Table token also have any possibility of stake or farming?
- When a user deposits their assets, 5Table is responsible for depositing them in the “best” option of farming. What parameters are considered by the protocol to decide which is the best option? Do you only consider the APRs of the underlying platforms or do you also consider other elements such as risk?
What is the utility of $5TABLE:
• Stake it in the 5TABLE governance pool to participate in the protocol earnings and earn more $5TABLE.
• Stake in partners pools and earn other tokens by staking $5TABLE
• In the short term holders will be able to vote and decide the path of the project through governance. You don’t need to hold $5TABLE to stake your stablecoins at our protocol
For the second question. It’s answered above. There will be multiple staking and farming alternatives for the $5TABLE token. Already confirmed farms at Dark KnightSwap and DefySwap, a vault on Yield Parrot. And a farm pending to be confirmed at SpookySwap
Third question: We consider security (risk) as one of the main factors to take into account when we decide the underlying protocols we use
@AndyR
You argue that 5Table is conducive to safe investments and low-risk users. What security parameters do you check in the underlying protocols to include them in the platform?
Actually, 5table Finance is built for every user, no matter the risk profile. We know that it will be really attractive for low-risk users, but it will be very useful for medium and high-risk profiles too. No matter if you hold a few or a lot of stablecoins, if you are a low or high risk profile investor, or whether you’ll hold your stables for a short or long term, the best place to have them will always be 5table Finance
@SheilaF88
Can you give us the details about the launch of 5Table? Is there any guide that allows us to know how we can participate in this launch?
The $5TABLE presale will be hosted at ftm.defilaunch.finance and will take place on Jan 27th, 23.00 UTC.
The presale will last 24 hs, where everyone will be able to buy with 2–10% discount depending on with Tier they belong to.
— For Tier 1 you need to hold 0–500 $fDLAUNCH, and you will get 2% discount. — For Tier 2 you need to hold 500–1000 $fDLAUNCH, and you will get 5% discount.
— For Tier 3 you need to hold +1000 $fDLAUNCH, and you will get 10% discount.
You will need USDC (from Fantom) to buy at presale. https://defilaunch.medium.com/step-by-step-presale-guide-56091237c42
@SheilaF88
To start using 5Table services, is it necessary to create an LP token or can simple tokens be deposited directly on the platform?
There is no need to create an LP. You only need to choose what of the 5 stablecoins available you want to stake and 5table Finance will automatically take care of all the following steps
@SheilaF88
5Table promises to find the best solution for stable coin farming. In how many blockchains is the search for the ideal farming pool carried out? If sometime after the assets are deposited in the underlying protocol pool, a better farming pool emerges, will 5Table transfer the assets to it or will it keep them in the initial one?
5table Finance will be a multichain protocol, but the underlying pools that will use will be different on every chain. For the Fantom version of 5table Finance, we’ll use only protocols based on Fantom Opera chain. For the second part of your question. The strategies we use will not be static. We’ll move around searching for the best alternatives. We won’t move it too often, but we have a team working on that and looking for the best alternatives
@AndyR
Where can I buy 5TABLE after the presale event? Can I farm or stake it? Where?
The main liquidity will be added at SpookySwap, so you’ll be able to trade at their DEX. We’ll also have liquidity and farm at Dark KnightSwap and DefySwap, so users will be able to buy there too. You’ll be able to farm $5TABLE at a pool on Dark KnightSwap, and stake it on Dark KnightSwap as well, DefySwap, Yield Parrot, and highly probable that on SpookySwap too shortly after launch
@Tezzz
What are your short and long-term goals?
In the short term we plan to attract as many users as possible and be positioned as the #1 stablecoins protocol on all Fantom. And in the long-term we aim to be the most used stablecoins protocol in the world, across all chains. We aim to create an association between stablecoins and 5table Finance in the mind of most DeFi users. Looking at that in numbers, we aim to have a massive TVL, the biggest for stablecoins protocol across all the DeFi landscape
@SheilaF88
Why did you choose BSC and Fantom as the first networks? Can you give us a spoiler about which one is next?
Fantom is the network where the best possibilities are right now. The highest APYs can be achieved in this chain, and there is a high level of security on the underlying protocols we selected. BSC is the most used network of all DeFi, where we can attract the biggest number of users and be positioned as one of the biggest players out there. And there are also really valuable alternatives in the network
@Igor Lymar
1stQ: How do you create a strategy for farming with stables, who is creating a strategy, who is checking the strategy and how much time does this process take?
2ndQ: Do you have a minimum required % APR for the strategy to be approved and implemented?
3rdQ: How many strategies do you use for farming with stables and what is the maximum allocation of funds per single strategy?
4thQ: If you have a minimum % APR for the strategy what happens if the strategy performs less than expected?
5thQ: Do you have any insurance for the funds deposited to your platform or what would be your actions in case of funds lost?
6thQ: Do you have already any whitelisted protocols where you will be depositing funds? Is there any whitelisting feature at all? if yes how it works?
7thQ: Do you use farms with stable coins only or you may swap deposited stables to your platform and farm different tokens
8thQ: Will you farm on different chains beside ftm and bsc?
1. The strategy is created by our lead financial engineer that’s in charge of DeFi research, working along with our security expert (one of our devs) to ensure high levels of security. The same engineer is checking the strategy, and he works every day on these. So the process to change the strategy takes around 1 hour on code, but it has several hours and days (sometimes weeks) of work behind it
2. On Fantom we are looking for around 30% APY, including 1–2% of $5TABLE rewards that come from automatic buyback. There is no minimum though, we just work to develop the most efficient strategy possible and aim to offer the highest APY
3. There is no maximum allocation per strategy. However, as TVL increases, the APRs of the original farms may decrease. In that case, we would probably modify the strategy to add the next farm in the list
4. There is no minimum % APR. So that won’t happen. We will ensure that the strategy deployed always gets the best APY for stablecoins in the whole network. We don’t look to a %APR floor, but instead to be always #1 on each chain we are in
5. We are currently building a refund program that will take a portion of the protocol profits to use in case of a funds lost event. We worked a lot and allocated a lot of resources to the security of our protocol in order to mitigate that kind of risk. But we know that a refund program is still necessary and will make the users feel safer
6.There is not a whitelist of protocols function in the strategy contracts. There is a list of protocols that have been reviewed by our dev team, especially by our security expert. How it works is basically our team doing an internal audit of the smart contracts, the same way that audit companies does
7. We only use stablecoins LP farms. The token it pays is usually the native token of that protocol, but it’s turned into the stablecoin LP each time we compound. When the user unstakes, it automatically turns it into the stablecoin (single token) that the user staked initially
8. Yes. We plan to have a presence on multiple chains. The farms we use will be only from the same chain that the protocol is. For example, for our first version on Fantom, we will only use farms of Fantom platforms. Later, when we launch on BSC, for our BSC protocol, we will only use farms from platforms based on BSC
@AndyR
I can see that you will be a multi-chain protocol. The 5TABLE token will be present in all these networks? if so, will they be independent tokens or will it be the same token in all of them?
The 5TABLE token will be present in all the networks. To be honest, there is not an official decision about if there is going to be the same token across all chains or a different one in each chain. It will be announced when the time comes. Hopefully, we can let that decision to the holders when our governance features are more developed
@Spade
What will be the initial market cap , and who have backed 5table Finance, Because Market is Bearish now
Initial Market Cap: $718.591
5table Finance partners are DeFi Launch, Dark KnightSwap, Yield Parrot, DefySwap, and we are working on collaborations with SpookySwap. There are two more projects that are top 10 on Fantom which we are in advanced conversations but we can’t mention yet out of respect. These last two will be announced shortly after launch.Regarding the bear market, I’ll copy and paste an answer I gave a few hours ago in an AMA if you don’t mind:
We are confident and have made a deep research on how the stablecoin market moves both on bull & bear markets. The results throw that the stablecoins market continues to grow on both markets. In the bull market, the total amount of funds moving is bigger and therefore, the stablecoins market is bigger. In a bear market, there are also big opportunities, since a big part of the users move from volatile tokens to stablecoins until the market goes on a bull run again So, no matter if there is a bear or a bull market, or if a particular user has small or big amounts, 5table Finance will attract massive TVL for the real added value it offers There are no other protocols such as the one we have built We are not another DeFi project. We are here for really big things. That’s why we are working with projects such as SpookySwap (#1 in Fantom), and we haven’t even launched yet
@Igor Lymar
I am sorry that I didn't read through all the topics but is there a staking option for $stable? if yes what is the revenue share for stakers?
Yes. Let me get you that answer. I’ll copy and paste it here. Maybe add some extra comments for your particular question.
What is the utility of $5TABLE:
• Stake it in the 5TABLE governance pool to participate in the protocol earnings and earn more $5TABLE.
• Stake in partners pools and earn other tokens by staking $5TABLE
• In the short term holders will be able to vote and decide the path of the project through governance.
The fee structure for the 5TABLE VAULT is:
Performance Fee: 4.5% of the gains harvested. It will be used to give it back to holders through the Governance pool.
Network fee: 0.5% for network transactions
@AndyR
I see that you always speak in terms of APY. Will all strategies be autocompounded? that would be great
Yes. It auto compounds with a very efficient rate. There are actually two benefits from the auto compound for this case. First of all, it takes APR into a much higher APY. And second, it turns the native token that the farms pay into the stablecoin LP, so there is no risk of that token dropping its price and diluting the profits of our users. Remember that for a better and easier experience, our users won’t need to create an LP, but they will stake the stablecoin they choose and 5table Finance will automatically make all the moves for them
@Igor Lymar
And do you consider implementing strategies from other users? smth like 1 bsc project is doing
Any ideas that will help us create a better strategy will definitely be taken into consideration. That’s the core value of our protocol and we will work non-stop to be always at #1 position on the network for staking stablecoins. If there is room to improve, we will surely look at it (taking security into account)
I think that I answered all the questions posted until now. I will wait for the 24hs of this Q&A session for any other questions that the audience here may have.
@rug_buggler
I was curious — in recent years stable currencies such as USDT have had devaluations of more than 20% due to high costs of goods. What processes do you employ to ensure stable parity is maintained? How do you choose which stables you work with?
As much as we would want to, we can control the parity of any stablecoin. We select the 5 most used stablecoins of each chain, that combined get +90% of the stablecoin volume of the network
Our protocol aims to, but it is not multichain yet. We are launching on Fantom on Jan 27th. The yield optimization is within each chain, there are no cross-chain strategies
@mnuge11
Given that your protocol is multichain already, is your yield optimization multichain too? If I deposit USDC on Fantom, is it generating yield on Fantom or is there a chance it will be bridged?
Do you do any swaps in the backend if there is greater yield potential for one stable vs. another? or if I deposit one token does your project find the best opportunity for that specific token?
It’s real the same which of the 5 stablecoins available you choose to stake. Our strategy contracts will automatically execute multiple operations and turn it into stablecoins LPs and stake it across different farms of the network to obtain high APYs while maintaining high levels of security
@sharsbard
A lot of people look at stablecoin farming as a ‘safe’ alternative in the defi space, but obviously, nothing in defi is 100% safe and any optimization contracts add some complexity to the process (and probably a little additional risk). How do you plan to reassure potential investors of the security of 5table (audits, protocols you choose to work with, pools you utilize, etc)?
Nice question. Of course, nothing reaches 100% levels of security at DeFi. But we can surely get closer to that. On the audit side of it, we are working with Certik that’s one of the most renowned audit companies on all DeFi. Also, DeFi Launch security team will provide us a full audit with all the details of what they’ve found on our contracts. Regarding the protocols and pools we use, we are taking a full transparency philosophy about it, so users can know where the funds are staked in. To select them we use a risk balancer, make market research, diversify in between several farms, and more
@cam33ss
I see that you’re using DeFi launch for your presale. Can you talk about your experience working with that incubator? what benefits have you gotten while joining the fantom ecosystem and how does it allow you to hit the ground running with your launch?
DeFi Launch has been very valuable for us. We’ve been almost two months in their incubation program. They have helped us greatly regarding security and tokenomics architecture. And we have built a very strong marketing plan with all their media partners, not only for the presale but also post-launch as well. DeFi Launch has also provided us with many tools to have better processes to achieve partnerships. And they are actually working great! We have already partnered with Yield Parrot, Dark KnightSwap and DefySwap, and we are about to get SpookySwap on board. (We are having a Discord hangout at SpookySwap Discord tomorrow)
@AndyR
For 5Table strategies, only the underlying protocols that farm or stake stable coins are considered, or are you also considered protocols that include the lending of this type of coin, such as AAVE and Alpaca?
We are not using lending protocols as underlying platforms yet. It’s not sure if we’ll ever do that. But it’s certain that they are not included at least in v.1 of our protocol
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