Podcast - Mihai Daniel and CEO Sphynx Network, Madalin Muraretiu
Sphynx Network — Romanian project merges the potential of NFTs with the field of DeFi
DM — Hello! My name is Mihai Daniel. Welcome to my cryptocurrency consultancy channel. Madalin is with me today.
MM — Hello! I’m glad to be here! I’m Madalin, one of the members of the Sphynx Network. I come from the online trading environment, in the last 12 years, since 2011 I have worked with different trading companies, where I have developed partner offices in several countries.
DM — Yes, I understand! Tell me about your project and what it accomplishes.
MM — Coming from this trading area, I was bound to proceed in the same direction, and Sphynx Network is a decentralized financial system, imagine the banking system but 50% more creativity and flexibility in alternatives to earn a possible profit.
DM — What will people be able to accomplish with the product you create?
MM — First of all, the token is decentralized, runs on the Binance network, is secured and audited by EtherAuthority. Users have a variety of ways in which they can produce potential capital. There are all the options in the banking system x10 for creativity and variety in options. It is a marriage between the DeFi and the NFT. People will definitely find it, both on you on your YouTube channel as well as in our whitepaper. The project aims to somehow improve the fundamental nature of the DeFi space using alchemy. Blockchain alchemy, to comply with this new generation of Yield Farming and liquidity mining, by implementing NFT staking. We focus on delivering an NFT Marketplace, with different DeFi functions and entering the gaming area, with a NFT play-to-earn game. There are basically 4 products, at the moment, that Sphynx Network is developing.
DM — Let’s define them, as simple as possible the 4. What are they and what do they do?
MM — We should know that, in addition to these four products, the smart contract design is intended to be accessible, not only to people with some experience but also to the average user, who may not have a full crypto knowledge bag but still wants to use the token because he is active in the community and so on. These individuals need to be rewarded in some way, therefore by just holding, users increase their account balance without actually doing anything.
DM — Let’s see how the four items perform.
MM — Sphynx Network’s initial offering is the Yield Farming section, which is similar to a traditional bank deposit in that individuals come, stake, and earn returns of 5000 SPH every 3 seconds.
The second product is the NFT staking program When it comes to alchemy, Sphynx Network uses a technology that allows users to unlock multiple rewards from different platforms simultaneously staking the same NFT.
DM — Platforms like as OpenSea/ SuperRare?
MM — No, platforms such as Uniswap, Sushiswap, and Ampleforth, since the technology we use on the NFT staking was created by Ampleforth, and users on the NFT staking can make this type of timelock deposit as well.
DM — So basically you are a staking aggregator?
MM — An NFT staking aggregator. This is the first non-custodial platform of its kind. Ampleforth created the first of its type, and we incorporated the technology into our project.
DM — Yes, I understand! And it was Binance Smart Chain that you used to build these bridges. I mean, that’s what sets you apart from Ampleforth?
MM — They created the technology, which we then adopted, we are not different but we comply with.
DM — Have you thought about going to this area Solana, EGLD, Fantom?
MM — Yes, Fantom was one of the options we considered. When things are operational, Cardano is on sight as well and no doubt ETH, when 2.0.
DM — i know that they are fantastic and helpful items, but timing is important and you would be one of the firsts to do it, if you would have these bridges now.
MM — Things should happen by the end of the year, at least the NFT staking product, with the bridges, with absolutely everything. We try to deliver even earlier if everything goes smooth.
DM — That’s great! You should be aware that I am considering proposing a partnership for my project, Bitmart. This staking aggregator, cause there will be a pretty big community coming from this direction and i want to develop this marketplace, i think a lot of your products might fit in.
MM — This aspect of NFT, in my opinion, comes in and fits nicely in any niche. The flexibility of NFTs is quite great, at least in the DeFi space, this merge of NFTs with DeFi is exceptional. Because, once again, you have the freedom to accomplish things that you would not be able to do without the DeFi component. Sphynx Network improves the nature of NFTs, providing them with a new type of usecase.
DM — Ok, what other product do you have?
MM — As we were talking about the Marketplace, we deliver an NFT Marketplace, where there will be different sections, obviously with functions specific to this decentralized space, there are some collectibles, users can flip NFTs. And here, the NFTs value, in the collectibles area will increase due to an algorithm we designed so that percentage of every transaction done in this Marketplace is distributed to the collectibles section, so that the NFTs value increases over time. Aside from collectibles, as i mentioned earlier, theres also the NFT fractionalized ownership. I mean, you have an NFT, it’s worth $10,000 or $1,000, you put it a vault that you mint and the vault gives you 100% of the NFT value, but in fractions.
DM — The fractionalization is something really significant. To understand individuals, you will be able to own 1% of an apartment/hotel, 1% of a Pagani, and 1% of a special edition Rolex.
MM — Yes, you can own a percentage of a very high value asset, such as Beeple’s NFT, which sold for $ 69 million. You could have owned a percentage of that NFT.
DM — These are very important steps you are taking, but people / society need time to process them, to hear about them, to understand what the potential is.
MM — In the 90’s, the internet was here, even if there were a few to use and understand it, we are living the 90’s of the cryptospace, now.
DM — That’s right, let’s talk a little bit about your tokenomics. can you describe the vision?
MM — In the design of the contract, there are two functions, they are called reflection and LP. Of absolutely any transaction made within the network, 5% is distributed to all existing holders, depending on their number, and in proportional to the equity they have in SPH. it is a form of staking in fact, without sending tokens anywhere. you simply keep them in your wallet and receive tokens every time someone makes a transaction, buy, sell or transfer from one wallet to another.
Next, we have the auto LP function, where another 5% arrive and really go back to the liquidity pool to sustain the price. This is a sort of security against a large dump, since if someone comes and sells $ 50k of SPH, for example, 5% return in liquidity to support the token price.
DM — Yes, it’s a good thing. I would like to ask you, I know what people think and what questions they will ask, what are the risks? For an investor in SPH? what risks do you really see?
MM — Yes, there is no major risk, security wise! There might be the delay risk, that we deliver later than the roadmap due to human interaction and processing of things, or maybe because unforeseen things happen and we have to solve them.
There is the risk of loosing, absolutely, just like in any other traditional business, but i think that a person who is not prepare for failure is not ready for the investment world, doesn’t t matter which side of the game you are.
In staking there is the risk of impermanent-loss, it is the difference between having the assets separated or together depending on the price evolution.
There is also the risk that people will not have the necessary patience to hold and sell too soon, which is a problem that we all face, and I have suffered as a result, as have you and many other people. Selling the token before reaching a certain maturity.
DM — One more question, do you so AMA?
MM — We did, we will do more, we have scheduled AMAs with some people locally, we will make some official announcements on our telegram group, that’s where the whole party happens.
DM — Yes, I believe that these AMAs are really beneficial since individuals can speak, ask questions, get news, and be informed all at the same time. I believe that doing AMA as frequently as feasible would benefit the community. Are you all right on the support front?
MM — yes, the support service is extraordinary.
DM — I recommend that we do another episode to discuss updates, if you have something in mind, to discuss how it attracted the public’s attention, what people think, and to keep the community updated. I wish you luck; I appreciate what you do and some of the things you plan to accomplish, which is why I want us to partner up. .
MM — Of course, things are under construction, we can certainly hear each other, in a future meeting I would like to show you how products work and what users are doing with Sphynx Network.
DM — Yes, let’s make an episode more focused on the demo, let’s miss how the platform is, how it works, what it does, make people understand it much easier. I liked it, Madalin and I greet everyone who will look at us!
MM — I greet them as well, and I appreciate the invitation!
Youtube video- https://youtu.be/Vezravc-zfU
