Coil + NanoNews — AMA Recap
We would like to say thank you to the team at NanoNews for having our founder, Ghost as a guest on their recent “Ask Me Anything”. The community had some excellent questions and the NanoNews team did a nice job on the recap below.
Thank you to the NanoNews Community for participating in Ask Me Anything (AMA) with Coil on September 2, 2020. This guest star Ghost, Team Coil. If you were unable to join the live AMA, no worries, here comes our 51st AMA recap!
We are glad to meet here:
Ghost, Team Coil
For taking your time out from busy schedule for the AMA!
Q1: Can you introduce yourself to the community? What is your background and how did you join Coil Project?
I originally learned of Bitcoin back in 2013. Late 2016, was when I really began being much more involved in crypto and researching it deeply. From 2017 on I have been involved with a handful of projects and part of some teams and still help those projects to this day. I believe in privacy, decentralization, and this crypto will change the world. Once I learned of elastic supply and began deeply researching it, I realized how revolutionary it was. I believe it is the biggest development in crypto since BTC and ETH. There are other elastic supply projects, but I wanted to create one that is not controlled by VC firms or large investors. I wanted to make one make a more fair and decentralized version for the people, so I got a team together and we developed Coil.
Q2: Can you briefly describe what is Coil?
Yes. Coil is an elastic supply cryptocurrency that adjusts itself to supply and demand of the market automatically every 23 hours. It is designed to be relatively stable in price, but “coil and recoil” around $1. While it is young is can go higher and lower in price, but as it matures and grows in the long term it will be very very stable. When demand is high and price goes up over $1.05, Coil automatically adds more Coil to all wallets to expand the supply to meet the demand and help push the price back to its target of $1. When supply is too high and price falls under $.95c, Coil removes supply from all wallets to stimulate more demand to drive the price back up, making less supply on the market and Coil more scarce.
Q3: What companies/projects do you see as competitors, and how does Coil stand out compared to them?
People will compare us to Ampleforth as they pioneered elastic supply, but they only gave 10% to the public and most was sold to Venture Capital firms and large investors. There is plenty of room in this space for many and especially a more fair version built for the people. We wanted to build one not controlled and manipulated by these whales. We adjusted the rebase to 23hrs, so it changes 1 hour earlier each day, so all parts of the world can experience rebase during their peak hours at some point. We thought this is more fair to all parts of the world. We also added our Spring which is a liquidity geyser. It has a Certificate of Deposit system on top. Will make our liquidity more predictable and harder to manipulate. We do not see any project that pegs to itself or inside of cryptocurrency for their target price as it is a flawed idea. To be less correlated you have to target stability outside of the crypto market. Also we believe random is flawed. Any projects using a random rebase will also likely fail. It sounds good on paper, but random can be manipulated by bots trading balance changes. In DeFi and to be stable, you need predictability. People borrowing or yield farming with assets that are random are prone to huge risk. Predictability helps this, and Coil will be the most predictable rebase project to exist due to how we are designing our Spring.
Q4. What is the use-case of the The Coil?
Coil is much less correlated to BTC and other cryptocurrencies. Because of this it has an ideal use case as a hedge asset to minimize risk in all portfolios. This also makes it an excellent DeFi collateral asset, and we think it will be a future backbone in all of DeFi. In DeFi you need to minimize risk because if BTC and other cryptos fall, then all of DeFi can be in trouble. Coil since it is less correlated can help hedge this risk and protect from some of cryptocurrencies volatility. We also plan on being one of the pioneers into Private Defi. Many are not even talking about this yet, but Coil is built to play a key role in private DeFi ecosystems as well.
Q5. What are the major milestones Coil achieved so far & what are in future pipeline?
We launched less that 2 weeks ago. We have already been added on Coingecko, CMC, Stex, and most everywhere. We have grown our community in discord and telegram, written articles, and completed development of our Spring. We are now working on the web app development which is what users will use to interact with our Spring and earn liquidity rewards. We will have more AMAs, Youtube videos, a social ambassador program and other contests on the community front. As far as development once Ver 1 of Spring is out, we will begin work on Ver 2. This will have a loan system built into it. More details in the next few weeks. Once The Spring is released we plan to open up other liquidity pools and Springs as well. Coil will also be expanded into other ecosystems besides ETH, and we plan to be one of the first to explore and move into privacy ecosystems.
Q1: I’m a fan of the Rebase system and so many projects offer rebase. How unique is COIL rebase and is the process automated? AMPL launched geyser faucet to provide incentivised liquidity, what does COIL have?
First, many rebase projects that peg their target to themselves or other cryptocurrencies are flawed and just marketing gimmick. To be DeFi collateral and a hedge asset, you need to peg OUTSIDE of the cyrptocurrency space. This is how you become less correlated and help hedge the risk, and this is very very important. Our system is very unique and it is automated. We made the rebase every 23 hours in order to let the rebase move 1 hr every day. We believe this way everyone around the world has a fair chance to trade or experience a rebase in their peak hours. What have gone a step further than Ampl and their geyser. We have made the Coil Spring. Think of it like a geyser on steroids. It will be very similar to an Ampl geyser where you are paid rewards to add liquidity, but we added a unique twist. We added a Certificate of Deposit type of system on top. The user will choose 1–90 days to provide liquidity. The longer you provide liquidity the larger your rewards will be. Users can do any amount of time they want or as many different transactions as they want. Then they add the liquidity and stake their V2 Token in the Spring. The catch is if they choose 90 days, then decide on day 10 to pull their liquidity. They will pay a large penalty. This penalty buys Coil on the market and deposits the Coil back into the Spring rewarding all of those people that served their time! This will allow Coil to be much less volatile and much less manipulated from Ampleforth or other rebase coins. In fact once we release this soon, we see many projects replicating our idea.
Q2: How does COILCRYPTO offer strong incentives for users to join the network?I mean,why isit a good option to choose COIL among the hundred of stablecoin that currently exist?Also,what are the specific problems that COIL aim to solve in the ecosystem?
Coil is not really a stable coin like most think. It can fluctuate to 50c or $10. What Coil does it once this happens, Coil reacts and every 23 hrs rebases itself to help meet these supply and demand shocks. If Coil held $10 for a 24 hr period every single address would then get 90% more coins. Many people would then sell pushing its price back lower and closer to its target. If price only fell to $3, then the next day Coil would add another 20% more to every address. Eventually it would add enough supply that people would sell and push it back near its target of $1. Coils goal is to adjust to supply and demand shocks. This solves many problems and reduces risk in the system and especially in DeFi, as Coil is a hedge asset, and also makes a stable medium of exchange. As far as incentives we have our Spring, which is paid from our Ecosystem Fund rewards to everyone in the community that provides liquidity in the pools. Think of it like a faucet. 20% of our total supply goes to fund this to reward all people in our community that support the Coil Network. This is a safe and fair way for the Coil network to redistribute back network share to all supporters!
Q3: Several DeFi projects at Uniswap have faced hacks due to flaws in their smart contracts. How safe is a Smart COIL contract such as a project with an elastic supply model? How often do you conduct safety audits?
Yes many projects rush and put users funds at risk. Coil is very safe, as we have forked from Ampleforth who had multiple security audits done and was heavily scrutinized. We always keep an eye on our network, and we are also Etherscan audit verified. We also have plans for our Spring Version that will have a loan type of system. However since this is more complex, instead of rushing this to market like most projects, we are developing this and will get it specifically audited since it is more complex. We take time to make sure things are right instead of rushing development.
Q4: Most investors are only interested in the immediate benefits rather than the real long-term value of the project. How can you convince investors to invest in your platform over the long term?
Right now elastic supply is a new ground breaking idea. I think once everyone sees and learns how elastic supply and Coil work, they will be hooked for the long term. Our system will appeal to everyone. Coil is an ideal hedge asset for ALL portfolios, which helps to minimize risk that everyone wants. On top of that, it is a stable medium of exchange, stable to borrow against, and appeals to all. Even just traders or arbitragers who want to trade around rebase. Coil appeals to risk adverse investors, long term investors, short term investors, traders, yield farmers, arbitragers, and commerce. It is fantastic asset that appeals to many different people for many different reasons. Coil fills a need in every single portfolio!
Q5: Security, Liquidation and Slashing risks are associated with Defi protocols.What are COIL countermeasures to deals with such risks? What are COIL Risk to Reward ratio, compared to other DeFi protocol platform?
Coil is designed to help prevent and fix these risks. Coil is made to fix and protect against these major risks in DeFi. Back in March when BTC crashed, DAI almost broke its peg because all the assets were too correlated and fell with BTC. If Coil was used as one of these collateral assets, it would have automatically adjusted its supply and contracted it making Coil more scarce, driving its price back up. Helping to minimize these risks for DeFi users. Coil is designed to be able to adjust to supply and demand shocks in the market helping to fix liquidation and other risks. Coil has very low risk and high reward. We are very low in marketcap and supply, and we have $400–500k in Eth locked as liquidity in our pool on uniswap. With the amount of Coil circulating currently, everyone could not even sell it down very far from here. We locked all this liquidity in to protect the project while we built our Spring. It stopped us from pumping early like most projects, but it was done to protect the long term. The upside on Coil is very very high. This in our opinion is an idea that is worth billions of dollars. Remember with Coil, it is non dilutive. If you own 10,000 of our current 2,000,000 coil, then you own .005 share of the Coil network. Remember we are very low supply and low marketcap right now, so you can own a share of our network before we grow and are big. At 10 mil mcap you still have .005 share = $50k. When coil is 25 mil mcap, you still own .005 share = $125k. When coil is 100 mil mcap you share is still .005 = $500k. So you always hold your same share even if you have more or less Coil. A even if price is $1 at all of those marketcaps, you will just have many more Coil.
Q1. How important is the community to the Coil? and how can we collaborate or help Coil for the development of the project?
We believe that community is very important and Coil was built for the community. You all are welcome to join us. Spreading the word, to more and more people about Coil is the best way. We will have social ambassador programs, contests, and bounties. Writing articles as well. If you are a developer you can develop tools for the community as well!
Q2. Does Coil crypto support compounding method? and how reliable is Coil Platform in bringing investors to financial freedom?
Yes, when Coil is in positive rebase over $1.05, we positive rebase. Lets say price is $2 for 24 hours and you have 100 Coil. After 24 hrs Coil would add 10% and you would have 110 Coil. If it holds 24 hrs again at $2, you get another 10% on the TOTAL balance so you have 121. If it holds for another 24hrs at $2, you get another 10% and have 133.1. So yes you compound and since you are all very very early, there is potential for huge growth and a chance to earn financial freedom.
Q3. Coil Spring will encourage liquidity to REMAIN in the pool, but how does it achieve that? How will you encourage people not to withdraw their money from the pool?
This is why we designed our Spring. Currently in liquidity pools and geysers like Ampl, large whales can remove liquidity and pull it without notice. This leads to a lot of manipulation and volatility. This can scare the market and make things very unstable. On top of that large whales can manipulate Ampl to bleed out the smaller investors so they have nothing left. We saw a huge problem and set out to fix it. We designed our Spring to have a Certificate of Deposit system ontop much like you find in the real world. This makes it so everyone can see how much liquidity is locked in, how long it is locked in for, which allows everyone to make better decisions. If someone elects to enter our Spring, they can choose to add liquidity for 1–90 days and/or they can do many different contracts. The longer you provide liquidity, the more rewards you earn. But if you say you will enter for 90 days, but then want to pull out after 10 days, you will pay a large penalty which is very similar to what would happen in the real world. This penalty buys Coil on the market and deposits it back into the Spring rewards pool going back to everyone else in the Spring that did what they said. This will make our liquidity more predictable, and much harder to manipulate. It will help all investors be able to better see and adjust to the market, it will decrease volatility, and stop some of the manipulation. It incentivizes and rewards all of the good network supporters that do what they say they are going to do, and penalizes the bad actors and manipulators and keeps liquidity in the pool from being removed.
Q4: For all coil is offering, it is built on ETH blockchain which is annoyingly slow and cannot scale, why have you chosen the ETH blockchain over other Comparatively faster and Scalable chains and do you have plans for mainnet
Yes, we see ETH gas and speed as an issue as well. Coil will be bridged into many ecosystems including polkadot and others like NIX who are working on building a fully private ecosystem. Coil an bridge and work in many ecosystems and will in the future. But for now everyone is building on ETH, and we start where the most companies and users are.
Q5. Do you have any Coin Burn / BuyBack systems or any Token Burn plans to increase the value of Token & attract Investors to invest?
Yes, when users enter our Spring and choose a time. If they do not fulfill their time and remove their liquidity early. They pay a penalty. This penalty ETH goes to buy Coil on the market. Then it is deposited back into the Spring rewards to all of the good supporters in the Spring that are doing what they said.
Q6. Where can buy coil? Is there a staking program?? I want to stock Coil
Currently you can buy Coil here. https://app.uniswap.org/#/swap?inputCurrency=0x3936ad01cf109a36489d93cabda11cf062fd3d48&outputCurrency=ETH and we are also just listed on STEX https://t.co/hFNd2NXMdd?amp=1 Our staking program will be our Spring which should be released in the next 1–2 weeks. We are in the processing of just finishing up the User interface.
Q7. How does token $COIL “roll and roll back” occur, to match market supply and demand, with a special algorithm or otherwise?
Coil — “coils and recoils” around its $1 target. This is all done automatically through smart contracts. The chainlink oracle pulls a 24hr volume weighted average price. Then talks to the rebase smart contract and rebases based on that. Then it syncs itself and updates all balance. Think of Coil like an automated Central Bank that adjusts it self every 23hrs automatically to the supply and demand within the market!
Q8. What is “COIL”? Where does “COIL” name come from? What does it stand for? How will you able to solve market manipulation? Why would beginners adopt your platform? How is it better?
Great Question. The Coil name as two meanings. First — Coil targets $1, so the price COILS and RECOILS around it. It can go to $.50 or $4, but eventually it will Coil and Recoil itself back to $1. Think of it like a rubber band that can stretch, but always comes back.
The second meaning of COIL is C(rypto) OIL. Oil is the backbone of our current world economy and the USD, and most everything in the world currently is in some way tied to oil. We see COIL as CRYPTO OIL. We think Coil will be the backbone of DeFi and the crypto economy much like oil is the backbone of today. COIL is a perfect hedge asset that every portfolio will desire because it is less correlated to Bitcoin and other cryptocurrencies. This makes it a wonderful DeFi collateral asset, a token everyone will want to hold to hedge their risk, and an excellent stable medium of exchange that can replace the need of stable coins. So just as OIL is important in the current economy COIL aka CRYPTO OIL will be an important backbone in the new age crypto economy.
Our Spring is better than anything out there, and beginners have a chance to get into something early before many copycats. Our Spring makes our liquidity PREDICTABLE. Meaning it is harder to manipulate due to our penalty and reward system we put in place. This will make us more stable, harder to manipulate, and allow everyone to adjust better within the market. This is very very important and why Coil and our system is so special!
So many questions, wish I could get to them all, but that is enough for now. People can join our discord and telegram to learn more!
My pleasure. Thank you for setting it up. I had a wonderful time and loved meeting the community. I hope many of you become Coil holders while we are young, and grow with us!
Telegram announcements: https://t.me/coilcrypto_ann
Thank you for trusting NanoNews as the organizer of the event today, hopefully everyone can understand about Coil
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*(minor edits were made to the original article for understanding and clarity)