Recently, CNN reporter Robert spoke exclusively to Baccarat’s project team, CTO STEPHEN LITAN, and talked to him about DeFi’s situation.
Here is the full text of the interview:
Robert: What is the opportunity to launch the Baccarat?
STEPHEN LITAN: We’ve been looking at the DeFi market until we launch the Baccarat. Then it was found that most of the DeFi projects in the DeFi market are now built on the basis of Ethereum, without the advantage of the public chain. So we developed Baccarat based on NGK Public Chain technology as the underlying technology.
Many eco-builders joined Baccarat in the first place, and on the Baccarat platform, they pledged their money in exchange for fee income and BGV mining income. We estimate that tens of thousands of eco-builders participate in Baccarat every day.
At the same time, by introducing BGV control token to decentralized the protocol, ecological builders can directly participate in platform governance. More eco-builders are now digging BGV head mines and then participating in platform management. Now, the platform is better under everybody’s voting governance.
Robert: Last month, the Baccarat opened a liquidity mine, and just one day on line, there was an influx of ecological builders. This month’s launch of the BGV, and even the day after it was launched, has turned on a pattern that has soared tenfold, a rarity in the DeFi market. So, is the Baccarat the perfect product for you? If not where else needs improvement?
STEPHEN LITAN: Short-term success does not matter, and it does matter that the future can grow in the long run. I think Baccarat wants to grow in the long run, and it needs to constantly refine technology, innovate technology, and provide more financial services. In the future, before the Baccarat becomes the backbone of traditional finance and banking, some significant improvements are also needed. First, Baccarat needs to introduce more advanced risk management. Second, it needs to further reduce transaction costs. Third, it needs to innovate again.
Robert: We note that the main incentive for many users to participate in Baccarat at present is to obtain additional BGV tokens, which is a departure from DeFi’s original philosophy. Is liquidity mining a sustainable model?
STEPHEN LITAN: A lot of users are willing to participate in BGV mining, which is something we are happy to see. But that’s not what we’re trying to do, and we think it’s just a reward for existing users, and a means for them to participate in governance. Our main goal is to achieve decentralized governance.
Incentives are the main reason users are involved in Baccarat, which is one of the reasons why there are nearly $5 million in Baccarat assets now, and we think there should be more.
Communities need incentives to control liquidity, not to reward developers and agreements. In the long run, this will create a bigger deal.