On June 7, 2021, LaunchZone welcome Dr. Marvin as our guest speaker, to share insights about Mars Ecosystems – a new decentralized stable coin paradigm, which integrates the creation and use of stable coin into the same system. In this AMA session, Dr. Marvin, ambassador of Mars Ecosystem shared information about the projects as well as answering some of the questions that users had for Mars Ecosystem.
This post is a recap of the Mars Ecosystem x LaunchZone AMA session, which includes questions from the host and users, as well as Dr. Marvin’s answers.
PART I. INTRODUCTION
Patrick LaunchZone (Host): First. Can you briefly introduce yourself to the community? 😊
Dr. Marvin (Speaker): Of course! Hello, guys! I am Dr. Marvin. I’m the first aboriginal on Mars and one of the ambassadors of Mars Ecosystem. And I will be your guide and friend along the journey to Mars.
Patrick LaunchZone: In this Session 1, you will answer 5 questions from us. Q1: What is Mars Ecosystem?
Dr. Marvin: Mars Ecosystem is a new decentralized stablecoin paradigm. Its goal is to propose a stablecoin system that can solve the positive externality problem and the integration problem, and has the characteristics of high price stability, high degree of decentralization, and high scalability. Mars Ecosystem consists of three parts: Mars Treasury, Mars Stablecoin and Mars DeFi protocols. It integrates the creation and use of stablecoin into the same system.
Patrick LaunchZone: That’s great! Next question: Why did you start this project?
Dr. Marvin: John, the CEO and funder of Mars Ecosystem, is an avid fan and researcher of DeFi, who has not only studied a PhD in Finance at Stanford University, but also has many years of experience in the financial industry. John is very familiar with the theory and practice of economics and finance. After getting in touch with blockchain and DeFi years ago, John really appreciates the opportunities they bring to the financial industry and even to the whole world from a technical perspective
In DeFi, he focuses on the field of Stablecoin, and has paid attention to and participated in many iconic Stablecoin projects since early stage. He discovered that various stablecoin protocols face trade-offs in terms of price stability, degree of decentralization, and scalability. And there are also two fundamental problems in common: one is the positive externality problem, and the other is the integration problem. So after a lot of research and observation, John decided to bring a brand new decentralized stablecoin paradigm to the DeFi world.
Patrick LaunchZone: Question 3: How was the idea to create this project born? It is very interesting. What do you want to achieve? What are your expectations?
Dr. Marvin: Mars Ecosystem is a new decentralized Stablecoin paradigm proposed by our team after long-term research on DeFi, especially after studying many Stablecoin protocols. Why do we propose a new Stablecoin paradigm? That’s because we see that all decentralized Stablecoin protocols in the market have some fundamental problems. If these problems are not solved, it will be very difficult for the decentralized Stablecoin protocol to replace the centralized Stablecoin protocol, and to occupy the trillions of market space.
The goal of Mars Ecosystem is to build the central bank and reserve currency of the DeFi world. The MarsDAO and Mars Community work together to bring Financial Stability and Transparency to the world economy, and even further…🚀
Patrick LaunchZone: Next one: How many products does Mars have until now?
Dr. Marvin: Mars Ecosystem consists of three parts: Mars Treasury, Mars Stablecoin and Mars DeFi protocols. We uses a two-token system. The USD stablecoin of the Mars Ecosystem is USD-Mars (USDM), and the governance token is Mars Ecosystem Token (XMS).
Patrick LaunchZone: Glad to know that! Question 5: Can you clearly state the functions and tasks of each product?
Dr. Marvin: Yes, of course. The USD stablecoin of Mars Ecosystem is USD-Mars (USDM). Mars Treasury: USDM is generated and destroyed through minting and redemption mechanisms. Users need to place their assets into Mars Treasury when minting USDM, and they will receive Mars Treasury assets when redeeming USDM.
The Treasury mechanism is not an invention of Mars Ecosystem: the treasury reserve of the Terra protocol is its governance token LUNA, the treasury reserve of the Frax protocol is USDC and its governance token FXS, and the treasury reserve of the Fei protocol is ETH. But Mars Ecosystem uses the Treasury assets classification mechanism for the first time. The main purpose of Mars Treasury assets is to provide liquidity for USDM: Mars Treasury will use its assets to provide liquidity for USDM on Mars Swap, and users can directly exchange USDM on Mars Swap without redemption mechanism for the assets initially deposited in the Treasury.
Mars DeFi protocols: Mars DeFi protocols include Mars Swap, Mars StableSwap and other DeFi components necessary for USDM to realize basic functions of Stablecoin such as trading medium and value storage. Take Mars Swap as an example, it is a Uniswap type AMM DEX. Its main functions are: 1) Promote the demand for USDM through incentives such as liquidity mining and transaction mining. 2) Charging transaction fees as a means of capturing XMS value.
PART II. TWITTER Q&A
Patrick LaunchZone: Alright Dr.Marvin!!! Let move to Segment 2: Questions from Twitter. Are you ready?
Dr. Marvin: Yeah, I’m ready as always!!!
Patrick LaunchZone: Question 1: What was the motivation to start Mars Ecosystem? What do you want to achieve? What are your expectations?
Dr. Marvin: Good question, as I said before, John, the CEO and funder of Mars Ecosystem, is an avid fan and researcher of DeFi. He discovered that various stablecoin protocols face trade-offs in terms of price stability, degree of decentralization, and scalability. And most of those stablecoin protocols on the market have two common fundamental problems: one is the positive externality problem, and the other is the integration problem.
The positive externality problem of stablecoin protocols means that the costs of producing and maintaining stablecoins are incurred by the protocol and its users (minters, share holders, bond holders), but the majority of the value comes from the transaction of stablecoins in other DeFi protocols and is captured by these DeFi protocols. The stablecoin protocol cannot capture the value created by it like other DeFi protocols, so the supply of stablecoins from the stablecoin protocol is always less than the real demand for it in the crypto economy.
The integration problem of stablecoin protocols: The demand for stablecoins created by the stablecoin protocol is highly dependent on the degree of integration of stablecoins with other DeFi protocols other than the stablecoin protocol. If the integration of stablecoins with other DeFi protocols is ignored, then the supply growth and stability of stablecoins will be affected. So after a lot of research and observation, John decided to bring a brand new decentralized stablecoin paradigm to the DeFi world. ✨
The goal of Mars Ecosystem is to build the central bank and reserve currency of the DeFi world!!!
Patrick LaunchZone: Next question: What is the role of token in the ecosystem? Where can users currently buy it, and what would be its use?
Dr. Marvin: Mars Ecosystem uses a two token system: The stablecoin of the Mars Ecosystem is USD-Mars (USDM), and the governance token is Mars Ecosystem Token (XMS). The stablecoin USDM could serve as the reserve currency of the DeFi world, as any token aimed to be the reserve currency has to be stable. The governance token XMS captures the value generated from the creation and circulation of USDM, and has a huge appreciation upside.
The stability of USDM is guaranteed by the market value of XMS. The value capture model of XMS enables the value generated by USDM transactions in the Mars DeFi protocol to be captured by XMS. This constitutes a positive feedback loop.
USDM is generated through minting mechanism. Users can get 1 USDM by placing $1 worth of Mars Treasury whitelist assets into the Mars Treasury at any time. And people who hold our XMS token can earn through staking!😁
We will start IDO on the 14th of June on LaunchZone, BakerySwap and our own DEX. And we will announce a detailed user’s guide within this week. So stay tuned!!!
Patrick LaunchZone: We are very honored to cooperate IDO with your project! Question 3: What are Mars’ short terms plans? What about long term plans? Do you have a road map for 2021?
Dr. Marvin: Yeah!!! The honor is ours!!!! Yeah, we do have a road map for 2021.
Our priorities in 2021 are:
-Build a strong and motivated Mars community
-Expand Mars Ecosystem by doing more cooperation with other DeFi protocols and Launch Mars Stableswap, which is an DEX for stablecoins exchanges.
-Launch Mars FixedIncome, which is a fixed-rate lending protocol and expand our protocol to more public chain such as Ethereum, Solana, Avalanche, ICP, etc.
✨In June, we will launch Mars Swap and do IDO on several major launchpads on BSC to distribute our token to early supporters. Users can trade on Mars Swap and XMS holders can start to earn fees at Mars Swap.
✨In mid-June, we will launch Mars Stablecoin with a Genesis Launch event. Users can mint USDM and earn XMS rewards. Immediately after Genesis Launch, Liquidity Mining and Trade Mining programs will be launched on Mars Swap. We expect the USDM minting volume to reach 300 Million at this stage.
✨Starting from late June, we will cooperate with BSC’s major DeFi protocols such as DEX, lending protocols, leveraged mining protocols, etc., to extend the use cases of USDM to further boost its volume.
✨In Q3 2021, we will launch Mars Stableswap, which is an DEX for stablecoins exchanges. We will expand our protocol to Ethereum and Solana.
✨In Q4 2021, we will launch Mars FixedIncome, which is a fixed-rate lending protocol. We will expand our protocol to other major blockchains, like Avalanche, ICP, etc.
Patrick LaunchZone: Last question: NFT is currently a very interesting trend in the DeFi and blockchain world. Is Mars Ecosystem planning to integrate this type of asset into your platform in the near future? What do you think about these NFTs?
Dr. Marvin: That’s an interesting question! Mars Ecosystem will participate in this trend of NFT without hesitation!
We already have a plan on it: Mars Ecosystem will select a certain number of users from those who have contributed to the community to airdrop our limited Boarding Pass NFT or Captain NFT of our first Spacecraft. Those who get it will join the Mars Ecosystem on the Genesis Spacecraft 1 and jointly create our MarsDao community!🧑🏼🚀🧑🏼🚀🧑🏼🚀
Besides, as the first aboriginal on Mars and one of the ambassadors of Mars Ecosystem, I also have one special mission:
🎁Airdrop & sell more NFTs to users who follow Mars Ecosystem, including Mars equipment, spacecraft, oxygen cylinders, towels, speakers, skateboards, etc…. and directly reward XMS.
We held a Meme contest last week. The 20 winners will receive our first NFTs. We will start airdrops of NFTS in these two days to those winners of the Meme Contest. In the future, Mars Ecosystem will also empower different levels of NFT, and we’re gonna have more events, so stay tuned!
PART III. LIVE Q&A
Patrick LaunchZone: So we have ended segment 2 of the questions from Twitter. In Segment 3, the Speaker will choose 6 randomly questions to answer and each selected user’s question will receive a prize value of 20 USDT for each question.
@hungbui9: I am an EXPERIENCED DEVELOPER AND ETHICAL HACKER, does you have plans for HACKATHON so as to check the security of your ecosytem periodically and also invite developers to build?
Dr. Marvin: You are welcome here in Mars Ecosystem! Our smart contracts are audited now by the best security auditors in the world: Certik and SlowMist. Our smart contracts won’t be launched until they pass all the audits with green light. Once our smart contract is launched, we will cooperate with the best bug bounty agencies in the world and we will not begrudge the bounty. At the same time, we also welcome experienced volunteers in other fields to join us and maintain community safety together! Anyone interested can contact us through our website.
@starshades007: Bear and bull markets are always fighting each other, so what will happen to XMS when the market fluctuates strongly?
Dr. Marvin: Many Stablecoin projects will have a death spiral when facing this extreme situation, and we have some special mechanisms to avoid it:
1. Mintage control mechanism. The casting control mechanism ensures that the market value of XMS is 2.5 times the amount of USDM minted, which means that even if the price of XMS drops by 50%, the market value of XMS can guarantee the full payment of USDM. When any death spiral just begins to appear and XMS begins to fall, since the market value of XMS is 2.5 times the amount of USDM minted, users can gain the confidence that USDM price has sufficient XMS support.
2. The anti-“bank run” mechanism guaranteed by the asymmetry of minting and redeeming assets. The asymmetry of minting and redeeming assets means that users place the Mars Treasury whitelisted assets into the Mars Treasury when minting USDM, and get XMS when redeeming USDM, so the assets submitted to the Mars Treasury during minting and the assets obtained when redeeming are different.
@Logus767: Is the Mars Ecosystem contract completely secure? Can you provide us with information about your audit?
Dr. Marvin: Currently, many BSC projects are hacked. Apparently, these projects are hacked because their developers are too careless and inexperienced.
As Mars Ecosystem aims to build the central bank of DeFi world, we take the security of user assets above all else. Specifically, the user’s assets are protected by the following:
1. Most of the DeFi hacks are just repetitions of the old tricks and could have been avoided if the developers have fixed the bugs once the exploits happened in other DeFi protocols. Our developers are well aware of all the past DeFi hacks and are keeping track of all the new ones so that we know all the potential attack vectors and avoid them when developing our smart contracts.
2. Our smart contracts are audited by the best security auditors in the world: Certik and SlowMist. Our smart contracts won’t be launched until they pass all the audits with green light.
3. Bug bounty is very effective in finding bugs: Fei protocol’s bug bounty program recently discovered a bug that could have drained 600 million worth of ETH from Fei protocol’s treasury. Like i said before, we will not begrudge the bounty.
@Krish43212: What plans do you have to increase and maintain the value of tokens in the long term? What are the benefits of holding?
Dr. Marvin: People who hold our XMS token can earn through staking. The value capture model of XMS includes the following ways
1. Mintage control mechanism.
2. Mars Treasury control rights value..
I’m gonna explain the third part more clearly.
3. The transaction fees generated at the Mars DeFi protocols. When users trade on Mars DeFi protocols such as Mars Swap and Mars StableSwap, they will be charged transaction fees, which are partly assigned to the liquidity provider and partly assigned to the protocol. The protocol assigns these fees to XMS stakers through repurchase and redistribution of XMS and other methods.
Besides, the Treasury assets classification mechanism of Mars Ecosystem reduces the volatility of the market value of treasury assets, which will make USDM more stable, while reducing the redemption and selling pressure of XMS, which will benefit USDM and XMS holders.
The Treasury assets classification mechanism enables the Mars Treasury to have external DeFi protocols tokens, so that proposals that are beneficial to Mars Ecosystem can be passed in other DeFi protocols, such as allowing USDM and XMS to be used as collateral at a Lending protocol, which will benefit USDM and XMS holders.
@BernadetteSteffen: What are Your Project plans for global expansion, what are your currently focusing on, expanding or listing more exchanges, or building your ecosystem or marketing and partnerships?
Dr. Marvin: First of all, we chose to launch on BSC first because BSC radiates the global market, which is very important to the development of our project. So we definitely focus on the global market. We have no geographical restrictions and our goal is to bring Financial Stability and Transparency to the world economy! Together we can live a better world! And we have channels in various languages in Discord, everyone is welcome to join us and talk in your own language. Our Discord: https://discord.gg/gEWC4VVnNt
Our team has studied the stablecoin field for many years, and we also know that many people in the world don’t have access to bank services for various reasons. We hope to be involved in the real-life payment field in the future to provide solutions for these people.
Mars Ecosystem has already reached a strategic partnership with MugglePay. MugglePay is the world’s leading cryptocurrency C2B payment service provider. MugglePay’s partners include OKEx, Celo and Algorand. MugglePay currently provides services to more than 7,000 merchants around the world, and its number of daily transactions has already reached twice that of Bitpay.
@vizhfer: Liquidity is the challenge of defi, how does Your Project solve this problem?
Dr. Marvin: This is a very good question. Liquidity is actually an important part of stability. In Mars Ecosystem, the liquidity of XMS is guaranteed by the following mechanisms:
1. Mintage control mechanism. The mintage control mechanism ensures that the market cap of XMS is at least 2.5 times the amount of USDM minted, which means that even if all USDM is redeemed as XMS at the same time, the exchanged XMS market value will only account for 40% (1/2.5) of the total market value of XMS. In the future, the XMS Support Ratio will gradually increase, and the above-mentioned 40% ratio will be further reduced. 2) Mars Treasury uses its assets to provide liquidity.2.
2. The main purpose of Mars Treasury assets is to provide liquidity for USDM. Since Mars Treasury will also provide liquidity for XMS, XMS will receive corresponding liquidity support.
PART IV. CONCLUSION
Patrick LaunchZone: So today’s AMA ended well, before I open chat, do you want to say anything to our community?
Dr. Marvin: Yes, Thank you very much for your enthusiastic participation and organization!
Patrick LaunchZone: Wish your project will be successful and reap great achievements in this crypto world!
Dr. Marvin: Don’t forget to participate our IDO on LaunchZone 14th June!!!! Thank you, guys. Let’s go Treasure Hunting on Mars with LaunchZone 💥