Review of the First AMA | BakerDAO System Upgrade Explanation and Q&A(August 15,2021)

Sunday, August 15, 2021

At 20:00 (SGT) on August 13, 2021, DH, head of BakerDAO technical team, broadcasted an AMA live show on the Development Plan and System Design of BakerDAO System Upgrade Scheme V1.0 in "BakerDAO 🥯Community", giving an in-depth explanation of the system upgrade and answering related questions.

Highlights: DH, head of BakerDAO technical team, mentioned in the AMA live show that: V2.0 will be launched in September; the 24-hour TVL target is USD 300 million after launch; BAI will stabilize at USD 1; BKR will be benchmarked against MKR (up to USD 6,300), reach USD 1,000 by the end of the year, and will be listed on Binance Exchange.

The script of this AMA is as follows:

Q1: Good evening, everyone. The long-awaited BakerDAO's first AMA has now started. Today we have DH, head of BakerDAO technical team, here with us. Anyone who is interested, especially our BakerDAO family members, is welcome to ask questions in an effort to build a strong BakerDAO community~

DH: Hello, everyone. I am DH. As I am responsible for leading BakerDAO's product and technical team, I've been deeply involved in R&D. I am also the main planner and drafter of the BakerDAO System Upgrade Scheme previously released. I'm very glad to have an AMA with our BakerDAO community to give an in-depth explanation of this system upgrade, and you are welcome to ask questions.

In the beginning, I would like to talk about two topics: one is the overall system upgrade scheme, and the other is the version to be upgraded in September.

First of all, we remade the version planning, and regarded the core BAI lending agreement that was first launched as V1.0. The subsequent systems will be upgraded on the basis of V1.0. The liquidation module will be called V1.1 after optimization, the BAI liquidation pool V1.2, the new version of liquidity mining V1.3, the DAO pool V1.6, the BAI stabilization pool V2.0, the open vault V3.0, and the aggregation platform V4.0.

After all the system upgrades are completed, BakerDAO will have seven systems: the core Borrow system, BAI liquidation pool, BAI stabilization pool, DAO pool, liquidity mining, open vault, and aggregation platform.

With the above seven systems, the three key problems encountered before, namely, liquidation, BAI instability and BKR instability, can be perfectly solved. The liquidation module optimization and BAI liquidation pool will solve the previous liquidation problem; the BAI liquidation pool, BAI stabilization pool and open vault will solve the problem of BAI stability and liquidity; the DAO pool gives BKR holders more returns and will solve the problem of BKR instability.

We put a lot of effort to make this picture Principle of the BakerDAO Upgrade Scheme.jpg. To enable the community to better understand the BakerDAO System Upgrade Scheme, I suggest everyone take a look at it carefully, and then you can also understand the difference between ours and other decentralized stablecoin protocols. We've always been innovating and creating value for BKR holders.

Our first upgrade will be launched in September, the V2.0, which will include the liquidation module optimization, the BAI liquidation pool, the DAO pool, and the BAI stabilization pool. In fact, they are also the core components in the upgrade scheme. Upon completion, it shall be able to solve the above three problems. Meanwhile, it will also solve the problem of BAI liquidity and bring proceeds to BKR holders. Now I will introduce the overall development plan.

For more details about the upgrade to V2.0, please read our article titled《<BakerDAO System Upgrade Scheme V1.0>is Officially Released》.

After the V2.0 upgrade, BAI will stabilize around USD 1 and have sufficient liquidity. We will build a BAI ecosystem and find more partners to support the application of BAI.

Someone mentioned MakerDAO just now. Our benchmark is MakerDAO on Ethereum. After this upgrade, BakerDAO will surpass MakerDAO at the product level, and then we will promote the building of community, operation and BAI ecosystem simultaneously. With the support of the community, we will complete the deployment of multiple chains. Then it will definitely surpass MakerDAO in every aspect and become the world's number one decentralized stablecoin.

This is the general situation by now. I will not expand the details of the development work. Thank you for your participation~~~ You may ask questions about the issues you are interested in.

Q2: Will it be launched soon?

DH: Yes, it will be launched soon. The team has been designing, discussing, and verifying feasibility since the release of V1.0. We've been preparing for more than a month, and development is underway.

Q3: So what about the progress of development?

DH: OK, I'll talk about the development progress first. At present, the overall completion rate is about 60%. The contract team has completed the development work and is doing the testing. The front-end page is 80% complete. Integration testing will be carried out after completion.

Q4: When can I use the BKR in our hands?

DH: BKR can be pledged to the DAO pool after V2.0 to share the system revenue. According to related reports, MakerDAO's annual system revenue is hundreds of millions of US dollars, which is a substantial lot. But they don't share it with MKR holders. So this is a big step for us to share the proceeds with BKR holders.

Q5: Can you tell us about the new mining system?

DH: The first mining system we will launch next month is for LBAI and SBAI. LBAI is the LP for the BAI liquidation pool and SABI is the LP for the BAI stabilization pool[c1] . This is to encourage more people to participate in the new system, as mining is lossless and risk-free.

Q6: How can we participate in mining?

DH: Regarding how to participate in mining, I just prepared a description of the application methods for a few roles. You may read it. We will also prepare more detailed documents to teach you how to use the system.

First of all, the mining in V2.0 is lossless and risk-free. The main purpose is to reward BKR to the lending and liquidation participants, BAI liquidity contributors, and BKR holders. There are several paths for your participation:

1. BAI borrower: borrow BAI in the "Borrow system", pledge BAI to the "BAI liquidation pool" to share the liquidation proceeds and receive LP: LBAI, and pledge LBAI to participate in "liquidity mining";

2. BKR holder: pledge & lock BKR to "DAO pool" to receive a share of the system proceeds;

3. BAI liquidity provider: provide liquidity of BAI and other stablecoins to the "BAI stabilization pool" to receive LP: SBAI, and pledge SBAI to participate in "liquidity mining";

4. BAI trader: trade BAI in the "BAI stabilization pool";

5. BKR liquidity miner: participate in "liquidity mining" to get LBKR; this is to reward users for pledging & locking BKR: LBKR in the "DAO pool".

Q7: The BKR trading pool is too shallow now. How to solve this problem?

DH: We will consider solving the BKR liquidity problem after V2.0. Users may pledge BKR in the DAO pool, share the system proceeds, and participate in the governance vote in V2.0

Q8: Can you provide a plain and simple liquidation tutorial?

DH: Regarding liquidation, the liquidation rights will be withdrawn in V2.0. Only the BAI liquidation pool is involved in liquidation. At the same time, users who pledge BAI to the BAI liquidation pool can share the liquidation proceeds, so there is no need to worry about the previous scientist liquidation and system deficit. The liquidation pool will no longer bring deficit to the lending system.

Q9: Do you have any expectation on the TVL after this upgrade? How much can it reach?

DH: Our TVL goal is USD 300 million in 24 hours after the launch. All parties are working towards this goal. By then everyone is welcome to participate in the lossless, risk-free mining.

Q10: Is there any plan to get BKR listed on any exchange?

DH: Our target exchange is Binance Exchange. After the V2.0 upgrade, we will have in-depth communication with Binance Exchange and also participate in various activities of BSC.

Q11: At present, only a small group of users are participating in the BKR project. How can you attract more people to join in later?

DH: We will organize a series of promotion and marketing activities before the launch. Our first goal is to expand the community and attract more supporters. We also hope that users can introduce BakerDAO to their friends and expand the BakerDAO community together~.

Q12: Have you considered the follow-up promotion? How to get foreigners involved in the future?

DH: We are also speeding up to build the BakerDAO English community. Meanwhile, we are looking for foreign publicity and promotion channels to find more BSC users to join in and support BakerDAO, which is also the priority in our future work.

DH: Time is up. We have to stop here today. Thank you very much for joining us ~ If you have any question in the future, you may ask in the "BakerDAO 🥯Community", or send it to BakerDAO. I will receive it promptly, and try to give my best answer. With your support, BakerDAO will grow stronger. Let’s build a mighty BakerDAO community together ~