Nodari Kolmakhidze, Chief Financial Officer at Cindicator, provided important information regarding the upcoming CND+ program, Stoic Token release, and our plans.
In this AMA Recap, we will try to summarize the most interesting points.
Part 1 — Stoic Token and CND+ Program
What does Stoic do?
We provide everybody with strategies that were previously available only for the world’s richest. Right now, it’s only a portfolio strategy available. We will add a long-short strategy (we call it the meta-strategy), a so-called fixed-income strategy, etc. These are in the final stages of testing though, it will take some time to release them.
Last year in December, we had about $3 million in deposits on users’ accounts. Now it’s $115 million — we grew 40 times. Next year we’re aiming to grow ten times.
The whole year we have been thinking about how to link Stoic to CND in a proper way. We had different ideas like providing discounts for holding CND, etc. Then we figured out that there’s a better option: we should create a new token for the STOIC product (as it has a different use case and metrics).
In May, we created a private group with top token holders and community members — the CND Club. We outlined two ways to develop the ecosystem (discounts for holding or airdrops of new tokens) and the CND Club supported the STOIC token idea.
Now what the ecosystem gets:
Better metrics for the Stoic app thanks to motivation to get the reward — higher conversion rates, more organic traffic, increase in the average cheque;
Cool mechanics of in-app purchases. A fair distribution of allocations to strategies with limited capacity;
More motivation for employees and for contributors (to develop alternative strategies);
Alternative utility for CND tokens — holders can now also stake it to get STOICs that they can use in the bot. It’s more interesting than just getting discounts;
Thanks to the staking of LP tokens, there will be more liquidity on DEXes for the CND and STOIC tokens. So it will be easier to buy it for people who cannot use centralized exchanges for some reason;
Probably in the future there would be governance for STOIC so that the community can vote on some important things.
Also, it’s important to note that there is no token sale. We’re not fundraising with this (we don’t need this as we have a stable situation). It’s a fair distribution token.
As we see it, the STOIC token’s success can help our project become the next-generation trading service, competing with centralized and decentralized exchanges.
Stoic is about to re-imagine trading itself. Traders no longer need order books, manual trading, and research. Instead, each trader will become a fund of funds and manage their portfolios by investing in ready-to-use strategies with different features.
In the long-term exchanges will become obsolete. No humans would trade there. It would be just bots getting liquidity to rebalance people’s portfolios.
What is the Fixed Income strategy?
Fixed income: It’s a combination of arbitrage, carry-trade, and futures trading on Binance aiming to earn stable returns with no price risk at all. It has the practically unlimited capacity, billions of dollars. It’s a small but steady return. There is no price risk (except for extreme situations). For most users, this can be great stuff (or a safe haven at least) if they can’t handle the 90% drawdown to get 2,000%+ returns but they’re happy to get something like 10% per year.
Part 2 — Stoic’s Future Plans
In the next two months, we’re working on finalizing legal, product-related, and other aspects of a new token launch. If we decide to do so, we can stop the launch — learn why at stoic.foundation.
With a closer look at the feedback and product metrics, we will move on to implementing the critical functions associated with the token. While we’re talking about the roadmap, let’s get into other points we plan to implement.
Listing — After the project is completed and the token is finally issued, the token will likely be listed on decentralized exchanges like Uniswap and increase the liquidity of STOIC and CND tokens using the Staking program.
Retroactive airdrop and airdrop for using Stoic — the rewards counter is already live. Its users mine 50% of STOIC’s total supply.
If you’re an existing user, log in to your Stoic account to find out the estimated reward that you will be able to claim later (currently works in the web and Android apps). If you’re not in Stoic yet, sign up for Stoic to enjoy the hedge fund-grade product and get your STOIC airdrop.
3. Smart contracts for staking CND, CND LP tokens, and the STOIC token contract — planned for late Q1-Q2 2022. Everyone who holds CND and uses Stoic is eligible to participate in staking. Staking will ensure the fair distribution of STOIC to CND holders and will boost the CND liquidity on decentralized exchanges.
4. Spending STOIC tokens and new strategies, including Fixed Income strategy — will be available after the Strategy Switch feature is released in the first half of 2022. Every user will spend their STOICs directly in the app to get an allocation in the Fixed Income strategy, the long-short strategy, thematic portfolios, or unlock other unique features.
5. Onchain claiming & transferring STOIC will be available in the second half of 2022. Any Stoic user who has made at least one deposit after this announcement will be able to claim their STOIC tokens.
Part 3 — Questions from the Community
Q: When/where CND staking?
Nodari: Staking is not live yet. After the project finalization stage (approx. 2 months), we will announce all the details if the token is finally launched. Usually, staking is a separate website and a smart contract that you would need to execute.
Q: As Stoic will be an ERC-20 token, will the smart contract execution cost “fortune” as well? Why not BSC?
Nodari: There are several reasons. First, CND is also on ETH, so it’s easier to run the staking. Also, thanks to low gas, there are a lot of scam tokens on BSC, and we don’t want our users to have this risk. However, we can launch a bridge to different networks in a year.
Q: But what about the prediction platform? Its development is abandoned, and now it just exists in passive mode?
Nodari: It took 5 years to create it. In December 2017, it was released for the token holders, and they have been using it since then. So we completed that part, and instead of stopping there, we started looking broader. We realized the opportunity and market size for Stoic. Now this is our flagship product and we are focussing almost entirely on it (at least in the next year). The prediction platform is close to its “plateau,” i.e., it’s already working well, and it’s hard to make it even better. Instead, for Stoic, there’s a huge room for improvement. Also, we have a thought on linking the prediction platform to Stoic using insights from the platform for SEO (search engine optimization) by launching some separate token pages.
Q: How soon after staking CND will we receive Stoic tokens?
Nodari: All the details regarding staking will be available in several months if the STOIC token will be finally launched. The current understanding is that there will be a lock-up during the first year, and after that, you can claim the STOIC at any time.
Q: Am I mistaken by saying CND staking is not mandatory for the STOIC economy to work? Even if nobody is staking 1% means nothing for the new token, the vast majority could be obtained through the fees.
Nodari: CND/STOIC is not mandatory, and it won’t be required as it will significantly limit the number of people using the product. Instead, the tokens will unlock additional features and products.
Q: Other Cindicator’s products aren’t a priority anymore. What can be achieved with the CND token other than the staking mechanic? Are there future plans for CND?
Nodari: CND token is used in the Edge Product, by holding CND you get access to the Hybrid Intelligence Technology.
Q: Why not plan a future-proof token release? I get that it’s “easier” to launch Stoic as an ERC-20, but it’s not viable…
Nodari: We can launch a bridge between networks if we find it useful.
Q: 20% of the Stoic tokens will be going to “the company”. Can you explain a little bit more what you mean by that? It’s written on the whitelist.
Nodari: A part of token supply can be used by the company behind Stoic to be spent on further project improvement.
Q: Does the referral program still give a 0.5% discount on fees or will it be only in Stoic tokens going forward, or both?
Nodari: Currently, it gives you both 0.5% discounts and STOICs. We’re planning to rework the referral program and launch the affiliate program, but it depends on STOIC’s metrics and performance.
Q: How staking and Edge access will be aligned. That being said, if CND is staked, will the person get access to the Edge platform?
Nodari: We will announce it closer to the Staking launch.