SENSI UPDATE: SMARTSTAKE & BEYOND
Good morning / afternoon / evening SENSI holders (and even those who sold, we don’t hold a grudge, you can come back)
You guys like announcements, so… here are some announcements!
Advanced warning; this one is a bit of a TL;DR. But it’s worth it!
As you know, SmartStake has been the flagship development program for SENSI since launch, and good progress has been made — more on this below. It was always the case, of course, that this was only one piece of the puzzle in terms of the long-term SENSI roadmap, and with that said, we’re pleased to announce the next major project to come under the SENSI umbrella:
Our very own decentralized crypto exchange (DeX)
The aim here has always been to build a comprehensive platform of De-Fi services that was easier and more accessible to a wider audience, and for this, a DeX of our own was really the only logical move. Having our own exchange platform opens up the possibility of offering a much broader range of features that would otherwise be unavailable to us, along with providing significant additional utility to the SENSI token itself. We will take the best features from existing and upcoming DeX platforms, and combine them with new functionality not yet offered elsewhere in the space to provide a market-leading swapping and investing platform. In particular, we are aiming to make our exchange a very attractive place for new projects to launch (and existing ones to move across) by offering their dev teams significant new features and flexibility about how their coin is deployed and traded. These features will be announced closer to launch — to avoid existing projects stealing these ideas for themselves — but will include a launchpad platform where new BSC tokens can offer presales and fundraise before launching directly onto the SENSI DeX.
This development is particularly bullish for SENSI holders, because it provides a huge amount of additional utility for their tokens beyond SmartStake and the natural buy-and-hodl incentive due to the deflation built into the token. Some of these possibilities are detailed below:
- The intention is that these new developer features will come with a requirement to buy SENSI and lock it into the locking platform for a specific period. Additional features/flexibility can be unlocked by locking larger amounts. Thus creating demand for the token, and reducing the circulating supply.
- There will also be a % of the exchange fees that is used to buy and burn SENSI tokens, to speed up the rate of deflation
- Preferential fees/rewards on various services offered by the SENSI DeX for those who lock SENSI tokens
- Airdrops from new projects launching on our DeX as prizes for a lottery for locking SENSI
A detailed whitepaper for this project is currently being written up and will be released in due course. Timescales, as ever, are difficult to provide, however we feel this project is something we can get a version 1.0 out to the community pretty quickly — a few weeks or even less. More functionality can and will be added over time. The SENSI buyback and burn requires access to a DeX and it became apparent that it would be advantageous if this buying was done from our own DeX rather than an external one such as pancake.
We are also looking for community input on this project — the ideas above are not exhaustive, nor are they set in stone at this point. Tell us what kind of features/functionality you’d like to see from the exchange, whether that is something you’ve seen offered elsewhere, or a new idea that you think would be useful for users/developers. We’ll also be running a community vote to decide on the name of the exchange — more on this soon!
As discussed at the top, we’ve made good progress on SmartStake, and are about to enter the testing phase. Since it has been a while since we launched and we have a lot of new holders who have come in on the back of recent marketing, here’s a quick recap of SmartStake:
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SmartStake is an innovative, world-first platform which aims to simplify the process of de-fi field farming, drastically reducing the amount of manual work on the part of the investor whilst reducing the various risks of loss that come with investing in these high-volatility assets/pools.
For those who may be unfamiliar, yield farming is the process of continually moving crypto between farms on multiple de-fi platforms, to take advantage of the best rates while they are available across the entire de-fi space. DeX platforms will frequently offer great APY rates to encourage people to provide trading liquidity to certain currency pairs, however these rates don’t tend to last long and are often only available for smaller, less liquid tokens which come with a significant risk of impermanent loss (if you buy a token to add liquidity, and the token drops in price, you may lose more than you make back in yield). There is the additional risk of providing liquidity to a token which subsequently proves to be a rug-pull or other type of scam.
SmartStake mitigates against all of this, by automatically spreading deposited user funds around a selection of different farms, limiting exposure to any one poll to only a small percentage of the total invested pool of tokens. This removes the manual process of buying tokens, adding liquidity, staking LP tokens, selling the returned rewards, withdrawing LP and moving to a new farm, whilst also allowing this process to happen across many different pools simultaneously. Additionally, these farms will be chosen from a list of tokens/exchanges which have already had their contracts audited, minimising the risk of investing into a pool that turns out to be a rug.
The funds will be spread across a mixture of low and medium-risk pools, along with one or two high-risk/high-reward pools to bring the average API up overall without increasing the risk profile of our portfolio to an unacceptably high level. The list of farms will be changed automatically as yields increase/decrease, to ensure we are always invested into the best paying farms in the low/medium/high risk categories. Over time, the number of farms in our pool will increase, allowing us to scalp the best rates available and boost the overall returns to investors.
Yield farming will never be a zero-risk investment and there will always be the possibility of lower-than-expected yields or loss, but with SmartStake we can reduce these risks and create a steadier, lower-volatility return than is possible anywhere else.
Great… so how does this make my SENSI go up in value?
Good question. And the answer is two-pronged. Firstly, SmartStake has a function which takes a percentage of the BNB yield and uses it to market buy SENSI tokens. This in itself creates significant upwards price pressure, but there will additionally be a portion of these tokens which are burned, creating an additional deflationary effect. The remainder of these tokens will be used to top up the SENSI locking reward pool, increasing the returns for those who lock up their tokens and reducing the number of SENSI tokens in circulation (SENSI that are locked up can’t be sold). The net result is a strong deflationary effect on the token along with incentives for people to hold and not sell. SmartStake yields will also be paid in SENSI (again, market bought at the point of withdrawal) which will encourage people to hold at least a portion of their returns in SENSI.
There will also be additional rewards on the BNB staking side of the platform for those who lock specific ratios of SENSI to BNB staked. This feature is unlikely to be part of the first iteration of SmartStake, but will follow in subsequent updates.
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… Anyway, back to the update:
The smart contracts for SmartStake are now complete, more or less. The next step is to integrate them into the prototype front end, so we can begin Alpha testing. This is a bit of a painstaking process, since it’s only as we start connecting the contracts and the interface together that we spot alterations etc that need to be made. The nuts and bolts that make SmartStake function however, are essentially there or thereabouts.
The ‘secret sauce’ of how SmartStake decides where to put user funds will sit outside the contracts, to prevent competitor projects from copying our code. If these shitcoins want to steal our idea, they’ll actually have to know a little bit of programming to do it. Which safely rules out just about any coin with safe/elon/moon/shiba/mars/dog/cum in its name.
The high level testing timeline therefore looks like this:
Alpha testing: Should begin this week. This will be done privately by the team, as we will have to test live on mainnet which means we’ll have to use real BNB. And it’s better that we discover any bugs with our own BNB at risk and not yours :)
Closed beta: Once we’re confident there are no major bugs, we will be moving on to beta testing. Here, we will be offering the community the chance to partake in the testing process, allowing us to get a look at the platform being used for real. The process for selecting participants is yet to be decided, but will likely be a mixture of people who are very active in the community, along with some type of competition/raffle for spots. Those who partake will be rewarded with a beta-tester insignia for the SENSI leaderboards when they launch, along with other possible incentives to be decided. A separate discussion group will be set up between the team and beta participants to discuss feedback ets, and we would ask that those involved are active in communicating their experiences with the wider community.
Open beta: In order to speed up the release timeframes, we will deploy a scaled back version of SmartStake to the public in the form of an open beta. This platform will be available for use by anyone, with a reduced feature set that enables us to get a working version out for the community to use more quickly. We can then release phased updates to improve the functionality/yield of the application, while still giving the community an opportunity to start investing, as well as kicking off the SENSI buyback/burn process a little earlier.
The open beta will stick to a list of lower-risk, lower-yield farms, while the risk-reduction functionality is optimised in the background. This of course means the returns on the beta will be lower than the full version, however we feel that the community would prefer to have a reduced-return beta available than no version at all. We may also restrict the amount of BNB that can be deposited by any single wallet during this period.
Full release: Once the core functionality is tested and proven, the platform will be pushed live in its entirety, with any restrictions released and a full selection of yield pools for SmartStake to invest in. Over time, we will continue to push updates, adding new functions (such as improved rates for wallets holding locked SENSI) and new farms to the pool. This will see the APY rates we can offer improve steadily over time.
To bring all of the Sensi platforms into line, the main website is currently being redesigned and will be visually similar in style to the current locking platform. This newly deployed site will also enable us to incorporate some more advanced analytics, so that we can better track the effectiveness of various marketing channels. Some of you have pointed out that some other projects created websites visually similar to ours, so if we see this again with the new site, you have my permission to go to their telegram chat and mock them mercilessly for their lack of creativity. /principal_skinner_pathetic_meme
It’s been a while since we hosted our last AMA and a lot has changed since then, so it’s about time we had another. The format and date have yet to be decided here, however we have had offers from various groups looking to host this, so we’ll be looking at these options and decide based on what we think will give the most exposure to the project. That may involve more than one AMA session across different platforms.
Many of you have asked about this, and yes — the team will be going public in the near future. As well as building trust in the community, this is also a required step for listing on most of the bigger exchanges (wen binance). We’ll start by including official roles on the updated website, and sometime down the line (likely around the Dex or SS launch) you’ll get to see the team’s beautiful faces in obligatory greyscale LinkedIn profile picture format. Stonks.
I just realised that this is probably longer than any essay I ever wrote at university. So if you made it through, well done. And if not, TL;DR — SmartStaking is on the horizon, but it is now only one piece of the SENSI jigsaw. So, go buy more (or go to sleep/make a strong drink if you actually read the entire post, whatever).
Written by Tony, on behalf of The Sensible Finance Team