JusDeFi AMA with Pentoshi

Connor from JusDeFi talks about the project

Here’s the transcript from a fun interview that Connor from the team did with Pentoshi this morning. We’re so grateful to have been invited. And Sonny — thanks for asking us some great questions!

Please join our discord!

Welcome on board Connor. It’s not every day to stumble on DeFi projects whose team are willing to put their money where their mouth is by revealing their identity, so let’s get to know you guys proper.

Connor | JusDeFi

Hey Sonny. First of all, thanks for having me. I’m Connor Pelcher, and I’m heading up marketing and strategy for the project. You’ll notice that I’m not shy about giving out my name — that’s central to our mission at JusDeFi to be transparent, honest, and put community trust front and center. I’ve been investing in crypto since before Ethereum even existed, and I’ve had the same ups and downs as most of you all have had over the years. This might my first time on this side of a crypto project, but I do have almost 10 years of experience in sales, strategy, marketing and messaging.

Our lead developer, responsible for writing our smart contracts and for coding the front end of the site, is Nick Barry. You can find both of us on LinkedIn. Alongside the two of us, we are working with a stellar graphic designer who did all of our logos and branding, as well as a project manager who keeps everything running smoothly.

Sonny | DeFi Palooza

Can we have links to this — you know how TLDR crypto can get sometimes :)

Connor | JusDeFi

Sure, let me link Nick’s info: https://github.com/ItsNickBarry, https://www.linkedin.com/in/itsnickbarry, And here’s me — hi! https://www.linkedin.com/in/connor-pelcher-a5458b39

You can see that I used to be a chef, and I’ve been in the specialty food industry for many years. But crypto has been my passion for a very, very long time.

Sonny | DeFi Palooza

Awesome! Speaking of cooking, you’ve described JusDeFi as a next-gen yield farming project. I didn’t know we’ve moved past a generation already, however, accepting that claim means JusDeFi is set to do things differently. Can you walk us through the generation(s) that led to JusDeFi and what it’s doing differently?

Connor | JusDeFi

Absolutely. I don’t have to tell you or your group here that Uniswap really changed the game for crypto in many ways. I guess you can think of liquidity providing as the “first generation” of yield farming. Pretty quickly, people realized that you could get a bunch of people together and pool their LP, collect that income, and pay the members out in a brand new token. That was the “second generation,” I guess. But we know there are major difficulties with that type of ecosystem. These protocols simply mint more and more tokens to pay their users. Users sell the tokens, and the protocol mints more — over and over. It doesn’t take a financial professional to see why that’s unsustainable.

CORE was one of the first protocols that really turned this whole yield farming experiment on its head. Instead of just farming LP, CORE introduced a fee-on-transfer system that locked LP into the protocol and charged its users a fee for moving tokens around, which were then distributed as rewards.

JusDeFi takes it even a step further. Our rewards system is fee-based, but our tokens aren’t locked. We don’t mint tokens — we burn them. And that staking fee? That’s part of a community governance system. Our community members decide each week if the fee will be higher or lower than the previous week’s fee. And all of this isn’t to mention the revolutionary “unrugging” that is a big part of this project — but I’m sure you’re going to grill me on that in detail later ;)

Sonny | DeFi Palooza

Wow. That’s a lot to unpack.

When I saw your contract was audited by Callisto.network, my initial response was a “who?”, then I saw they have also audited projects like DAI, NEXO, USDT, ENJ amongst others. In light of recent exploits, what sort of relationship are you looking to forge with auditors and how will they impact the development of the project?

Connor | JusDeFi

We respect the hell out of auditors. They’re the people who are holding the darkness at bay right now. With so many projects turning out to be scams, it’s crucial as an investor that you find a project that believes in its own code enough to have a professional, third-party team audit it for security vulnerabilities. Trust is incredibly hard to come by in crypto, and trust is central to our project. Luckily, our main developer Nick is fanatical about the security of our code.

In fact, during our brainstorming sessions, he was really a guiding light for us in terms of what would be possible to execute in a safe and secure way. Having someone who is that good at poking holes in your ideas and explaining how they can be manipulated by bad actors is such a rare thing. Nick definitely knows his stuff, too. Before getting into the crypto space, he used to work on contracts for the IRS after being granted a Public Trust Clearance by the US Government.

Sonny | DeFi Palooza

Speaking of Nick, most folks when they heard “IRS”, they bolt out the other door. How does it feel to have someone who’s worked with one of the most important regulators in the financial industry on board?

Connor | JusDeFi

Nick is honestly one of the smartest people I have ever met. I consider him to be a standard to which I hope many young or new solidity developers would hold themselves to. He is thorough, he is well-spoken with his ideas, and he is a genius when it comes to security. So it’s no surprise that we passed our audit with flying colors. The auditor did find one small issue — but it amounted to move one line of code to a slightly different spot. By the way — you can read the results here: https://callisto.network/jusdefi-token-jdfi-security-audit

Sonny | DeFi Palooza

Rising from the ashes of AmplyFi’s snafu to become its own thing, but also commiserating with victims, you decided to airdrop JDFI to the general community. However, airdropped tokens often mean sell pressure and giving folks with no skin in the game undue advantage. How are you allaying this fear?

Connor | JusDeFi

Alright, this is a lot to talk about, so bear with me. AmplyFi was a tragedy, and I’ll admit I was one of its victims. I, along with a LOT of other people, got caught up in the hype and didn’t do enough research. The project was not audited. The dev was anonymous. There was very little communication. I was definitely disappointed, but not shocked when the rug was pulled.

A few people got together in a discord to see if we could track down the scammer. We made some progress, and that was passed off to US law enforcement authorities (and I’m sorry, but regretfully I legally cannot say more than that).

Sonny | DeFi Palooza

Understandably

Connor | JusDeFi

The idea was floated to try to “unrug” the project. I’d never heard of that, but I’m always up for a fun challenging project. To make a long story short, the four of us brainstormed the idea which became JusDeFi. So how does this “unrugging” actually work?

We decided to throw out the code of AmplyFi and rewrite it from the ground up. Part of that reimagining was to create a victim fund — we call this the “Justice Fund”. This was a pool of 10,000 tokens (the original AmplyFi sale) that were going to be airdropped into the wallets of the victims. In fact, if you’re in here and you were part of that scam — check your wallets. We airdropped those tokens last week! Here’s some more reading on the airdrop for later: https://jusdefi.medium.com/jusdefi-airdrop-e1a03dc90f05

Along with the Justice Fund, we have an equal amount of tokens set aside for the current Liquidity Event that we are running as we speak. However, we needed to be fair to both the justice fundholders and the new investors at the same time. how do we stop the victims from simply dumping their tokens day 1?

We came up with a novel idea. The justice fund tokens are locked into the protocol. While the new liquidity providers that come on board this week will be able to freely stake, unstake, and sell their tokens, the justice fund tokens can only collect rewards. We take this a step further though because we want the ecosystem to be diverse and thriving: The justice fund tokens can be unlocked with a one-time fee — 0.25 each, equivalent to the liquidity event pricing that’s happening right now. This of it like…a delayed entry into the LE with no time cap.

Sonny | DeFi Palooza

You’ve also opted for a novel community-governed, fee structure with a buyback and burn feature. Can you break down how this system works?

Connor | JusDeFi

Sonny, if you’ll excuse me, I do want to finish my thought about the justice fund, because it’s important.

Sonny | DeFi Palooza

Ah. Sure thing

Connor | JusDeFi

Basically, for the victims, once our market cap doubles from the initial price, they’ll be in the “green” and they can unlock, unstake, and sell their tokens for a profit if they wish.

Sonny | DeFi Palooza

Wouldn’t that lead to quite the sell pressure on the asset, likely putting LGE participants at a disadvantage?

Connor | JusDeFi

That’s a great question, actually, and something we thought hard about. To solve this, the unlock fee will be used to buy back tokens, at market price, from Uniswap, and then permanently burn them. This essentially offsets what could be a big wave of sells and turns it instead into a deflationary event! It’s a really cool system.

…And that perfectly leads me into answering your questions about the buyback and burns. Like CORE, JusDeFi is essentially a fee on transfer system. However, we’re a bit different. The only fee that we charge is when you unstake your tokens, as I said before. This fee starts at 10%, but we’ve allowed for this fee to be variable from between 0% and 20%. And we’re letting the community decide each week if it goes up towards 20% or down towards 0%. By the way, the algorithm baked into our smart contract ensures that when the fee is close to its weekly baseline, it’s variable enough to be influenced by even the smallest community member, but at the same time resistant to a single whale pushing it to the very end of the spectrum. In other words, in the first week, it’ll be VERY easy to move the fee to, say, 15%, but VERY hard to move it to 20%.

Why a fee, though?

The fee is important. It runs the economy. Half of the fee goes straight back to stakers in the form of rewards. That part’s obvious. However, we are taking the other half of the fee and burning it permanently. These burn mechanisms will cause steady, consistent deflation. The buybacks will cause buy pressure on Uniswap, as well. The system is not designed to 10x in 3 days like some certain other projects. We know that isn’t sustainable. We’ve designed steady, consistent value gain.

Sonny | DeFi Palooza

Quite the insight and also reassuring that you’ve thought this far ahead. Speaking of reassuring, your liquidity event will end in under 24 hours and all ETH collected will be locked into the initial liquidity pool on Uniswap. This is either a bold move or declaration of confidence in the product. Which is it?

Connor | JusDeFi

Sonny, thanks for the question, and thanks for pointing out that our Liquidity Event is currently in progress! I’m just going to take a moment to send you guys a link to our LE quide, which has a link to participate as well as much more info. https://jusdefi.medium.com/liquidity-event-guide-f-a-q-79c0afad9a6

To answer your question about liquidity: of course, we believe in this project, and of course, we are going to lock the liquidity into Uniswap. The lock will be permanent. We wouldn’t expect anyone to invest in a project that wasn’t audited and that didn’t restrict access to the liquidity pool from the developers.

Sonny | DeFi Palooza

As a registered, US-based LLC, how do you feel about the increasingly favorable stance towards crypto by regulators?

Connor | JusDeFi

Yeah, interesting question. I think we could do another full hour on that, but I can say that we’re really thankful to the state of Wyoming for being so accepting of cryptocurrency projects. While there may be a lot of uncertainty throughout the world, and especially in the US, about where cryptocurrency will end up from a regulatory standpoint in 5–10 years, the trend is very clearly moving in a direction of acceptance.

Our goal with the LLC was to show that we are willing to put custody of the dev wallet into the hands of a registered legal entity. And we did this because we’re a legitimate project comprised of legitimate individuals.

Sonny | DeFi Palooza

Yes. Wyoming keeps making the headlines with just how favourable they’ve been towards the industry. Sometimes, hard to believe it’s part of the same country :)

It’s probably too early to ask this, but can you give us a brief overview of what the roadmap or what you have in the pipeline for JusDeFi down the road

Connor | JusDeFi

Haha, I think it’s probably a bit early for that, considering we’ve yet to conclude our liquidity event. However, the team we’ve assembled is incredibly passionate about the work we are doing to recover funds for people that were scammed, and by doing it in a way that creates value for a new community as well. We’d love to learn from the success of JusDeFi and possibly use this model to help others — we just don’t know! Right now, 100% of our attention is on the Liquidity Event happening right now and making sure everything goes smoothly.