AMA Recap: CRYPTO MINERS X TORCHES FINANCE

Torches is a leading lending protocol on the secure, faster and low-cost KuCoin Community Chain (KCC). It is a decentralized non-custodial liquidity protocol where users, wallets and dapps can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an over-collateralized manner. Torches utilizes common pool-based mechanics where all funds deposited participate in interest-bearing activities equally. Based on KCC, it utilizes extremely low fees(~only few cents per transaction) making it highly attractive for both high and low volume deposits and loans. Torches aim to help you to leverage the greater value of your assets, as a decentralized lending platform.

We hosted an AMA session with Torches Finance on 30th June.

Mr. Ramsy was the host from Crypto Miners and Mr. Joe, CEO of Torches was the guest. He shared delightful knowledge and unique features of Torches Finance.
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Segment 1️⃣: Introduction

Ramsy | Crypto Miners:
Hello everyone 👋 Welcome to the Crypto Miners AMA session With Torches Finance

To help us learn more about the featured project of this AMA session, we are lucky to be joined By Mr. Joe

Joe:
Hi chat

I am Joe, CEO of Torches Finance

It is my pleasure to meet you all today and share what Torches Finance is to you. I am really glad to join the Crypto Miners Community

Ramsy | Crypto Miners:
Hello there 👋

Welcome here
Thanks for bringing Us Torches ❤️

Joe:
Haha, my pleasure

Regarding my past experience, I have been a blockchain entrepreneur for more than 5 years. I was in multiple projects including wallet, public chain, and DEX

As an early player and crypto investor, my confidence in DeFi has been strengthened. That is why we started Torches. We call it Torches as we want to light up everyone’s confidence in blockchain and guide everyone to the promised land

Hope you guys can learn something today!

🚀

Ramsy | Crypto Miners:
Indeed 👍

I’m pretty sure that our Community is very much excited to learn more about Torches Finance ✌️

So shall we start?

Joe:
Why not, lets start

Ramsy | Crypto Miners:
First of all Please give us a brief explanation about ‘Torches Finance’ .What popped up in your mind to create such a platform in this Space?

Joe:
Torches is a decentralized non-custodial liquidity protocol based on KCC (KuCoin Community Chain) Blockchain， which has launched on June 27th

We are a new project, but with an experienced team

BTW, there are many events going on in our Discord community.The early contributors have the chance to get many benefits

Back to our topic, Torches has a very unique economic incentive model where users can receive $TOR tokens, our governance token, whenever they deposit and borrow assets

We aim to be the most convenient, the most popular, the safest, and the least cost lending protocol on KCC or even the whole crypto space with ultra-low user entry, open and transparent smart contract, DAO governance,etc

Ramsy | Crypto Miners:
Thanks Joe for this great start about Torches 👌

Now let’s see our second question from this segment

2)What is the main business of Torches?

Joe:
Lending is the core function of Torches

In the current unstable market, holders are looking to gain some short-term profits and accumulate more BTC at dips. Torches, in this case, are a very good option for investors

For example, if A intends to hold BTC for a long time but needs the other funding to do some arbitrages, you know make profit from price volatility, A can stake BTC on Torches and lend a certain percentage of USDT. Then A can use that money to do arbitrages. A just needs to return the lent assets with interest later. But for A, they can complete arbitrage without selling their BTC, while also receiving a lending incentive from Torches

Of course, in order to differentiate Torches from other lending products in the market, we have also made innovations in lendable assets, lending incentives, liquidation rules, risk control and other aspects. We are also negotiating with other projects of the KCC ecosystem, which will provide investors with more opportunities in the future

Ramsy | Crypto Miners:
Impressive 👌

Q3)How does the liquidation work?

Joe:
Thanks for asking that. It is always a concern of users about liquidation

On Torches, the liquidation is closely related to “capital utilization”. In order to avoid liquidation risks caused by excessive fluctuations in asset price, Torches set a safety line of 90% assets utilization in users’ accounts. Once the utilization rate reaches 100%, users’ positions may be liquidated. So, we recommend users to keep their utilization rate below 85% so that they can have a good sleep at night

Ramsy | Crypto Miners:
4)How about Torches’ Tokenomics?

Joe:
$TOR is the incentive and governance token of Torches Finance. The total supply is 100 million. And the token distribution is as below:
Investor:20%
Liquidity:5%
Treasure:15%
Team:10%
Community:50%（LP Rewards)

The token share of investors and the treasury will be released within 3 years. For teams it is 5 years. More details will be revealed later, so stay tuned

Ramsy | Crypto Miners:
5)What efforts do Torches make on security?

Joe:
Security is a very important topic. Users have the right to clearly understand the impossible risks of their actions.

Torches takes multiple measures of risk control to maximize the security of user assets, including
1）Torches conducts sufficient upfront audits of the smart contract
Because of frequent security incidents in the industry, Torches Finance has carried out a lot of testing and security design on the business model. Torches has established a partnership with Tier-1 security company and adopted multisig wallets and timelock to maximize the asset security

2) Torches Finance has a strict evaluation mechanism for the new asset listing on the platform to reduce users’ impermanent loss.
Torches strictly controls the lendable assets in the initial launch, aiming to reduce the volatility and liquidation risk of users’ assets

Meanwhile, Torches will conduct regular reviews of listed tokens and have a 24-hour monitoring mechanism

3) Liquidation mechanism
Torches sets different liquidation thresholds according to the liquidity and security level of different assets.

In order to avoid the liquidation risk caused by price fluctuations, Torches Finance uses 90% of the user asset utilization rate as a safety line. Users need to keep the corresponding amount of funds in the account as a margin

Ramsy | Crypto Miners:
Alright, We’re Moving on…

6)What are the innovative features of Torches, in comparison to its competitors?

Joe:
Torches differentiate itself from four aspects:
1) Torches enables Customized lending markets
The sub-markets are entirely community driven, with each community able to create a unique lending market based on its own characteristics. At the same time, the sub-markets are isolated from the main market to avoid unknown risks and security issues.

2) VeToken model
Torches applies the veToken model to lending protocol, thereby dynamically adjusting the incentives of the participants and stakeholders of the protocol.

3) Security.
We have established a comprehensive risk control system for Torches, including additional risk parameters, a strict review process, a democratic liquidation mechanism, etc.

4) DAO governance
The DAO governance system is established by granting rights and interests to TOR holders. By participating in the DAO, TOR holders can obtain the governance incentive and governance voting rights on Torches

Ramsy | Crypto Miners:
7)Do you have a roadmap or long-term plan that you would like to share with us?

Joe:
For our roadmap, you can refer to this

In order to give our team more specific targets to develop Torches, we have broken down the game plan into quarters

Ramsy | Crypto Miners:
8)Why choose KCC ? Do you have any plans to collaborate with KCC projects?

Joe:
We are very optimistic about the development of the KCC. KCC has the advantages of fast speed and low cost, which can maximize user profits and reduce on-chain losses. And I love the idea of community driven. It correlates with our core values as well. Therefore, we want to cooperate deeply with the KCC ecosystem and push the mass adoption of blockchain

We have already started reaching out to some projects on the KCC to discuss collaboration. One news for you, we will also support KuCoin Wallet as well. More cooperation with the KCS ecosystem will come soon

Ramsy | Crypto Miners:
Let’s move to our last question from this segment

9)We are really looking forward to the launch of Torches Finance. Do you have any launching activities? Can you tell us some information?

Joe:
We have prepared some exciting activities, including our genesis NFT and TOP mining

You can check our twitter and discord for the activity details. WL still available to win

Ramsy | Crypto Miners:
Thanks Joe for this well detailed introduction about Torches:)

And that’s the wrap up of our the first part of the AMA session ✅

Joe:
👏

Ramsy | Crypto Miners:
Now Moving on to our last segment — Live Q&A

i hope you’re ready for that!!

Joe:
I am ready!

Ramsy | Crypto Miners:
lets go then

Segment 2️⃣: Live QnA
(In this segment group was opened for 60 seconds and Miners sent hundreds of questions. Guest choose some best to answer)

1) Dary:
🔷Torches Finance is launching a Torches Genesis NFT launch event soon. What are these Genesis NFTs and what role will you play within the Torches Finance ecosystem?

Joe:
THe Genesis NFT is a collection that we will issued soon on July. It is totaly Free mint. As long as you get WL, you will be able to mint one for yourself.
NFT can boost your mining rate later, with maximum 900%. Imagine that your reward get boost for 900% with same amout of asset

2) imran mani:
Is your project only for English speaking countries or is there a community for other language users?🧡

Joe:
We are a global project with many local communitys. Kindly join our Discord to explore https://discord.com/invite/DH5Z7qQyNR

3) Alchemy x Hunter:
Torches, as I understand it’s a well-known lending technique. What makes your lending unique, and what options do you give customers? What kind of currency is accepted as collateral, and is it feasible to close the loan early without incurring penalties?

Joe:
Torches differentiate itself from four aspects:
- Torches enables Customized lending markets
- VeToken model
- We have established a comprehensive risk control system for Torches, including additional risk parameters, a strict review process, a democratic liquidation mechanism, etc.
- DAO governance
Token accepted now are BTC, ETH, USDT, USDC

4) Miss queen3️:
Where can I buy your tokens right now what is your current contract and how can I buy them?

Joe:
Our token is not launched yet. And it will launch at end of Q3.

5) 𝙈𝙧. 𝙏𝙖𝙢𝙗𝙤𝙪𝙧𝙞𝙣𝙚 𝙈𝙖𝙣:
𝖶𝗁𝖺𝗍 𝗂𝗌 𝖳𝗈𝗋𝖼𝗁𝖾𝗌 𝖯𝗈𝗂𝗇𝗍𝗌 𝖬𝗂𝗇𝗂𝗇𝗀? 𝖢𝖺𝗇 𝗐𝖾 𝗉𝖺𝗋𝗍𝗂𝖼𝗂𝗉𝖺𝗍𝖾 𝗂𝗇 𝗍𝗁𝗂𝗌 𝗆𝗂𝗇𝗂𝗇𝗀?

Joe:
Yes, it will start from July 18th. Before that you can supply and borrow on Torches to get WL for genesis NFT. As I have shared, those NFT can boost your mining rate at Torches Points Mining

* This segment ends here *

Ramsy | Crypto Miners:
Thankyou so much For your valuable answers and information about Torches,
It Was Pleasure Hosting An Ama With You

Is there anything else you would like to share or you want us to know ?

Joe:
Join our discord, that is it

Thank you all for joining

Ramsy | Crypto Miners:
We Wish all the very best for Project Torches And The Entire team behind the project ❤️🤝

Community, if you would like to learn more about Torches Finance , here are some useful links for you:

Website: https://www.torches.finance/en
Twitter: https://twitter.com/TorchesFinance
Telegram: https://t.me/torchesfinance
Discord: https://discord.com/invite/CbwYwpwR
Medium: Torches