AMA session with Cook Protocol 21.02.2021
On the 21st of February, Discovering Crypto Club hosted an AMA session with such a promising project as Cook Protocol, which delighted us with future collaborations, products, and rewards. Here you have a recap of what the AMA looked like.
Host: Hello everyone and welcome to our third AMA in this amazing community. Cook Protocol are our guests today. Welcome 👋👋
To introduce the AMA, please tell us about yourselves and give us a short intro about Cook Protocol.
KP: I am KP Peng, Strategy Lead of Cook Protocol. I am in charge of overseeing the product roadmap and checking the overall trends in the industry. Cook Protocol is a decentralized cross-chain asset management platform to connect investors with fund managers so that investors can choose a variety of investment strategies, like index funds, or funds dedicated to liquidity mining, lending, etc. The goal is to lower entry barriers for investors so that everyone can join the DeFi revolution!
Part 2: Twitter questions
First question from Twitter user Boda05900347
You mention that Cook Finance can “unlock a whole new universe of DeFi innovations”, could you give us more details of what are those great innovations that can be developed with Cook and can completely change to DeFi? Have you already developed any of these “innovations”?
KP: So DeFi is like legos, all the different protocols can be combined together to create much bigger value than they would individually. Cook Protocol is sitting on the top of DeFi legos since we are an asset management platform. So it’s up to fund managers’ imaginations to create innovative approaches. Our platform provides all the tools like leverage, connection to lending protocol, connection to DEX, connection to derivatives, etc to unlock their creativity. In addition, we are going to be a cross-chain platform so that we can tap into different DeFi ecosystem: the relatively mature one in Ethereum, the fast developing one in Binance Smart Chain, Huobi Eco Chain, and the totally new one in Polkadot. We already developed some of these tools like cook leverage, which is a decentralized margin trading tool.
Second question from Twitter user Cristubista
Cook finance is designed to help users manage their investments in a practical and basic way, or on the contrary, is it a product that adapts to specialized and advanced investors?
KP: Cook Protocol has two target audiences: one is people who do not necessarily have the tools and knowledge to navigate through the complex and highly technical landscape of DeFi. The second group is people who have more knowledge on DeFi but would like to have a one-stop-shop to interact with the major DeFi platforms. We will definitely have a lot of tools and investment strategies for common users but also at the same time more advanced tools for proficient DeFi experts.
Third question from Twitter user Amr77821144
DEFI is evolving too fast and the ability to break is very high. What do you think about this and can you be sure that Cook Protocol’s products will be demand in the long term? What is Cook Protocol planning to contribute to DeFi’s growth?
KP: Security is very important for DeFi projects. Here at Cook Protocol we deeply value security. We want to move fast but not break things at the same time. So that’s why we use battle proven frameworks like OpenZeppelin. We do robust testing. We have the industry leading firm Certik to audit our smart contract to minimize security vulnerability.
Actually our token smart contract just got audited by Certik. You can read about it here https://certik.io/blog/announcements/cookprotocolauditsnativetokensmartcontractwithcertik/#home
Switching a little bit the direction to answer the moving fast part, I do agree that DeFi is evolving very fast. We have our own visions and belief but no one can predict the future. That’s why we have very flexible technical designs
So that we can tap into different ecosystems as we see fit. In addition, we are sitting at the top of DeFi legos, which means that we can encompass the latest and greatest innovations in DeFi into our platform, it would just be another investment strategy
Fourth question from Twitter user am11223344y
Vast majority of Crypto projects are built just for the sole purpose of amassing wealth for themselves. So, I want to know the value you aim to add to crypto industry that will bring greater abundance to the industry?
KP: So I think the biggest value we intend to add is to lower the entry barriers so that a lot of new users can participate in DeFi. The current problems they have: they don’t necessarily understand complex and technical DeFi concepts; a lot of them don’t understand English so that they cannot follow the latest and greatest in the space; gas fees are prohibitively high that they cannot profit given their small investment amount. We intend to build a platform where investors can just follow investment strategies from professional fund managers whose past performance is transparent and traceable on the blockchain.
Host: Specially gas fees, their are mind-blowing
KP: Yeah, we are addressing the gas fees issue using two approaches. One is to have investors deposit their funds into invest strategies that they like. Then fund managers can invest on their behalf in a much larger amount than what investors would be able to do individually. As a result gas fees are shared across different investors following the same investment strategy.
Second approach we have is cross-chain solution to tap into the super cheap and highly efficient blockchain like Binance Smart Chain and Huobi Eco Chain.
Part 3: Live questions
Question 1 from Telegram user @Lucyfarr
What is the role of token in the ecosystem? Where can users currently buy it, and what would be its use?
KP: Our tokens are governance and utility tokens which can be used to participate at the protocol level governance, community treasury governance. Also, COOK tokens can be used to pay platform fees. Fund managers will need to stake COOK tokens to initialize funds.
Question 2 from Telegram user @daniyel100
What is your strongest advantage that you think will make your team leading the market?
KP: We have a strong team with good backgrounds. Most of us are at Silicon Valley, the forefront of innovations. Team members come from Stanford, UC Berkeley, Carnegie Mellon and have software engineering experience in Google, YouTube, Dropbox.
Question 3 from Telegram user @Tony253210
The NFTs are so popular during these days in Defi, so have Cook Protocol plans to implement NFTs soon?
KP: We do have plans with NFTs, will do some NFT marketing in the near future, stay tuned.
Question 4 from Telegram user @Radhrika
Many Project talks only about their Strengths, Can You talk about the weak point that You project is Currently Dealing With?
KP: This is a good question. I would not say weakness but potential risk. I think the biggest risk for DeFi projects now is the prohibitively high gas fees on Ethereum, which is its Achilles’ heel. This blocked a lot of DeFi use cases and innovations. We are trying to have cross-chain solution to mitigate this risk. But I do believe that we are close to have layer 2 solution and also next year Ethereum 2.0. Because at the end of the day, Ethereum is still the largest ecosystem and the birthplace of DeFi. Other blockchains are merely followers.
Telegram community: https://t.me/cook_english
This is all for Cook Protocol, thanks to everyone for reading us. Discovering Crypto Club rocks :) Remember to join our community and follow us on Twitter!