Chill with Shield AMA Recap

Very recently, we had a fun and exciting ‘Chill with Shield’ AMA session with the Core Contributor of Shield, and here is everything we discovered.

Firstly, Shield is one of the first 2FA on the Blockchain to incorporate Binance SmartChain for 2FA secret backup, replacing various centralized servers such as Amazon Web Services, Google Cloud, Microsoft Azure, and others. But apart from that, what sets it apart?

What sets Shield apart from others

Therefore, the traders of risk-free perpetual contracts do not suffer any loss from the unfavored price movement but only need to pay for the funding fee when opening the position. They also have the option to add funds into the funding fee account to ensure the balance payable. The margin is charged in the form of a funding fee and on Shield, the funding fee varies on a daily basis. In a nutshell, risk-free mostly refers to 0 position loss, which is the most significant loss on a centralized exchange. Shield aims to satisfy this risk management demand by offering risk-free perpetual.

Why Shield perpetuals are great

Shield ITO

Benefits of the ITO

Shield wants to give back to its incredible community for their trust and support right from the beginning, and they plan to do this through the Shield Go Round (also known as a whitelist) they have launched specially for the Shield community. Those users who pass KYC can swap $SLD/0.045 $USDT. Shield will also create the liquidity pools on Uniswap after the ITO so that $SLD will not be short on liquidity.

Shield Token

SLD is the native token of Shield. There are mainly 2 use cases for SLD.

Shield is community-oriented and is therefore governed by DAO. Shield will gradually transit to community governance and reshape the infrastructure of future derivatives.

2. Swap&Burn

The mechanism is that 10% of the total SLD would always be equal to 100% of the Swap&Burn value, thus generating a repurchase price. Anyone can go Swap&Burn to earn profits.

Shield trade characteristics

  • 0 Position Loss

Risk-free Perpetual Contract is an innovative financial product with infinite upside potential and limited downside risk, which has no delivery. The perpetual contract without potential position loss helps to avoid huge downside risks and even liquidation caused by price delays. The Shield protocol protects its users from all of this by allowing users to open short or long positions with prepaid funding fees in a fully trustless way. As a result, the maximum loss will be capped by the prepaid funding fee, while the gain will have infinite potential.

  • Dual Liquidity Pools

Dual Liquidity pools by well-hedged private pools and retail-focused public pools to ensure strong liquidity for traders. In this way, the users on Shield will be able to customize their risk management when involved with liquidity mining. Traders don’t have to pay for the position loss, thus improving capital efficiency and profits opportunity. Private pools aim for institutional market makers and professional traders and take over the majority of risk on the system. Hence, the individual in a public pool can be protected and LP mining is relatively low.

  • No expiration rate

The no expiration rate risk-free perpetual contracts of Shield are quite similar to perpetual contracts on centralized exchanges like Binance, Bitmax, etc. Users can exercise these anytime so it’ll be very flexible.

Shield Marketing Strategies

  • Product-oriented

Risk-free perpetuals not only significantly decrease retail traders without potential downside risks on-chain, but they also satisfy the non-custodial, permissionless, and auditable features of decentralized derivatives in the DeFi boom. This unique selling point will attract end users in crypto and help them stay addicted to Shield once they try.

  • Decentralized brokerage system and global KOL strategy

Shield is the first DEX to implement a brokerage system in a fully trustless environment. Brokers can earn up to 40%-100% commission rate on Shield, which is way higher than what is offered by CEX and they are also allowed to claim and check the rewards anytime. Shield will also capture new users with their global KOL strategy and connections. They have already partnered with global KOLs and trader communities, including Russia, Turkey, Thailand, Indonesia, Japan, etc.

  • Sales team

Shield team has rich experience in running centralized crypto exchanges and Shield has also been working on a sales team to keep educating the new users under a mature user acquisition strategy.

Roadmap

Shield 2.0 and the future

In this new network, orders will be distributed to a public pool or a private pool, and once the margin of a trader or liquidity provider reaches the liquidation line, the third-party liquidators will step in and execute the liquidation. The decentralized brokerage system of Shield 2.0 will also encourage brokers to educate and provide consulting services for the traders they serve. The entire network also provides incentives for liquidity providers and liquidators through its governance token SLD, thus achieving an optimal Nash equilibrium of the network with a fully non-cooperative game to maintain security and stability.

Having held various community bounty activities and airdrop activities in communities around the world, Shield aims to continue this in the future also. Their code has been audited by SlowMist and Peckshield and they will also create liquidity pools on Uniswap after their ITO is closed. To learn more about Shield, check them out below.

One-of-a-kind decentralized protocol for future derivatives infrastructure, enabling global borderless access to finance. Visit us on https://shieldex.io.