Converter.Finance Announces Plan of Multi-chain Expansion,Starting by Launching on BSC
As the first leveraged yield aggregator on the Huobi Eco Chain (Heco), Converter.Finance has been operating stably for five months since it went online in mid-March, and has achieved a lot in product iterations, strategy updates, community building, and so on.
Within the DeFi ecosystem, the team believes that the trading and asset management tracks (including asset issuance and asset management) will still have lots of development potential in the future. Yield aggregator (commonly known as “vault”), as the most typical product of asset management, will have huge opportunities in the future. The core is the innovation of strategy. Therefore, the team has made long-term plans for the development of Converter and will continuously operate it and update its financial management strategies.
After discussions with the DAO organization, Converter.Finance will officially start a multi-chain expansion plan, which will start by launching on BSC and then on ETH.
Multi-chain DAO organization construction
Converter’s DAO organization was established in April and gradually formed an effective communication mechanism. DAO members participated in discussions of each development plan, and provided very constructive opinions and suggestions. Under the multi-chain expansion, the team will continue to develop and improve the DAO organization, and finally form a decision-making mechanism, in which proposals will be initiated and voted by the DAO organisation.
BSC token minting method
Regarding the multi-chain expansion, the problem of the source of the first batch of token minting need to be solved. We have clarified several principles of minting and will formulate specific minting plans in accordance with these principles, which are as the following:
1. The total amount of token, of all chains, will not be increased;
2. Circulation will be reduced by minting to achieve the goal of deflation;
3. Fees from different chains will be combined to use, with focuses on different chains in different stages.
According to the first phase of the plan, the team will prioritize the deployment on BSC. The specific minting plan on BSC is as follows:
1. Heco CON will be burnt to mint BSC CON;
2. The ratio will be fixed, that is, how many Heco CON can be minted to 1 BSC CON, and Heco CON will be burnt;
3. Application conditions: The minimum application amount for each address is 1,000 CON.
If the target amount of minted BSC CON is not achieved, tokens will minted and burnt according to the actual number of applications; If the number of applications exceeds the target amount, the exceeded amount will be divided proportionally;
4. The mint and burn of tokens from Heco to BSC will be carried out from time to time in the future, depending on the actual needs. The burn-to-mint ratio won’t be lower to this first time’s;
5. The team’s token will be used in this cross-chain deployment to add the initial liquidity.
Liquidity incentive release after cross-chain deployment
The liquidity mining output on BSC still comes from Heco. The amount of output on Heco will be burnt in the same amount of output on BSC. The fee from Heco and BSC will be used in combination for repurchase and burn or liquidity additions.
Current cross-chain expansion progress
After the cross-chain deployment, the team will update the strategy according to the situation of the corresponding public chain. The current cross-chain progress of BSC is as follows:
1. The vault strategies of PancakeSwap and Mdex on BSC have been developed;
2. A new single token vault strategy will be launched, and the contract has been developed;
3. A strategy specifically for V3 will be launched, which will also be deployed on ETH later;
4. An audit agency has been reserved, and the audit will be conducted after the contract development is completed.
The team believes that the explosion of DeFi is just the beginning, and there is still huge potential and room for exploration. The deployment on BSC is only the first step in the future ecological layout of Converter. In the future, it will also support other public chains such as ETH. The integration of various public chains will not only promote the continuous innovation and development of Converter and strengthen its original ecology, but will also continue to provide users in different ecologies with more optimized product experience, more diverse strategic choices and higher returns. In this fast-developing DeFi world, Converter will also try its best to create an open and expanding ecosystem that will bring long-term return of value to users and supporters.