On June 28th, 2023 at 1:00 pm (UTC), Co-Founder & Product Lead of Cruize Finance — Samarth Zalte took part in a particularly exciting AMA session which included Cruize Finance Project introductions and questions from ArbiPad’s community.
Missed the Cruize Finance AMA with ArbiPad Community? Catch up on the overview and fundamentals of Cruize Finance with this recap. Delve deeper into the topic and uncover even more insights and perspectives!
PART 1 — PROJECT INTRODUCTION AND UPDATES
- What is Cruize Finance?
So with Cruize, we provide a way for users to stake their capital in vaults that use structured products to generate safe yields. Structured products are instruments from traditional finance that combine other instruments like derivatives and bonds into pre-packages products to create custom return profiles for investors. With Cruize, we bring capital protected structured products on-chain to protect user capital from market volatility while generating safer returns.
- Can you share with us about the man behind Cruize Finance and their experiences in this space?
So as a cofounder, I have over two years of experience in the realms of design and development. I’ve worked with some of the top product and service companies in India, including Wednesday Solutions and Saastitute. In addition to my professional roles, I’ve also been the founder of Sleefax, a startup that was recognized among the top 10% of YCombinator’s W21 applying cohorts.
- What made you decide to build Cruize Finance?
We started Cruize as a hackathon project for Chainlink’s Fall 22 hackathon and were one of the finalists. That is also where we met our first 2 developers and from there we were picked up by GravityX Capital who incubated us and helped us raise our seed round along with Bigbrain Holdings and Delta Blockchain Fund.
- Please share a few major milestones regarding Cruize Finance development and the partnership that Cruize Finance has achieved so far
We have successfully completed the initial phases of its roadmap, including the genesis structured products research, system design, contract architecture, and the mainnet launch of the Genesis Vault. We did our private beta in early March and got over 17k+ early adopters for it. Over time, we’ve also built a robust network of 5+ market makers. We have also forged some important partnerships listed below:
- Ramses Exchange — Co-branded vaults
- Unilend — Lending/borrowing liquidity for $CRUIZE
- Blocmates — Marketing and PR
- ANDAO — Marketing and PR
- Biconomy — Gasless user experience
- Gamma — Active concentrated liquidity management
- LayerZero — Omnichain trading experience
We will also be expanding to other ecosystems such as Optimism, Polygon, Binance and Avalanche in the future
- Let’s talk about $CRUIZE and $esCRUIZE token in more details. Please tell us about your token utility and its tokenomics?
$CRUIZE is the native token of the platform which can be staked to the escrowed token, $esCRUIZE to enjoy exclusive platform benefits. Below are the tokenomics
🔒 Seed Round (closed): 5% (5% at TGE, 6 month cliff, 18 month linear monthly unlock)
🔒 Public Sale: 4% (25% at TGE, followed by 25% for the next 3 months)
🔒 Team: 15% (0% at TGE, 12 month cliff, 24 month linear monthly unlock)
🔒 Advisors: 2% (0% at TGE, 12 month cliff, 24 month linear monthly unlock)
🔒 Future Employees: 4% (0% at TGE, 12 month cliff, 24 month linear monthly unlock)
🔒 Community: 50% (0% at TGE, 48 month linear monthly unlock)
🔒 Reserves: 10% (15% at TGE, 36 month linear monthly unlock)
🔒 Liquidity: 10% (0% at TGE, 36 month linear monthly unlock)
- Can you share us about the benefits of being holders of $CRUIZE and $esCRUIZE token?
$CRUIZE can be staked to the escrowed token, $esCRUIZE to enjoy platform benefits like the ones listed below:
1️⃣ Revenue Share: $esCRUIZE holders are entitled to a portion of the earnings generated by the protocol.
2️⃣ Boosted Yields: $esCRUIZE holders automatically get a boost on the yield generated on their deposits in the form of $esCRUIZE tokens.
3️⃣ Exclusive Vaults: $esCRUIZE holders get access to Cruize’s exclusive vaults once a certain minimum threshold of $esCRUIZE tokens is held in the wallet address accessing the vault.
4️⃣ Governance: $esCRUIZE holders are also entitled to governance privileges once the move to decentralized governance begins.
- Can you explain us Cruize Finance IDO Details?
🔹Cruize Arbipad IDO Details
-IDO Raise: $500,000
-Token Allocation: 4,500,451 $CRUIZE
-IDO Price: $0.1111
-Vesting Terms: 25% unlock at TGE and 25% monthly🔹Cruize Impossible Finance IDO Details
-IDO Raise: $500,000
-Token Allocation: 4,500,451 $CRUIZE
-IDO Price: $0.1111
-Vesting Terms: 25% unlock at TGE and 25% monthly
- Can you share about your Roadmap?
Our detailed roadmap is listed in our docs: https://docs.cruize.finance/planned-roadmap
- Is there any upcoming updates or event that will be held by Cruize Finance? If yes, please share it with us here. Our Community is excited to hear about it.
We have many exciting upcoming events. Other than our IDO on Arbipad and Impossible Finance, the main one is the launch of our v2 which adds several performance improvements in the app. We also have some more co-branded vaults planned with some big players in DeFi the details of which we’ll be announcing soon.
PART 2 — TWITTER COMMUNITY QUESTIONS
- Q1 from @ihzamoh72 : Hi @CruizeFinance, how do you generate a revenue from your protocol and how you will distribute the revenue from your protocol? Please explain me more about this. thank you
We charge 2 types of fees to users to generate revenue:
Performance Fees of 15% — Charged on the yield generated by the vault every week. The APYs shown on the interface will be net of the fees paid, and
Management Fees of 2% — Charged yearly on the staked deposit. The fees are paid only at the time of withdrawal and are charged on a pro-rata basis.
The revenue is distributed in the following manner:
The revenue generated by the protocol will be distributed as follows:
- 60% to $esCRUIZE holders
- 30% to the treasury for operational expenses
- 10% for $CRUIZE buyback and burn
- Q2 from @Satoshi_BTCHold: What measures has Cruize Finance taken to ensure the security and integrity of users’ funds within the protocol? How does Cruize Finance aim to generate stable yields even during market fluctuations, and how does it differ from other protocols?
Security and Integrity Measures for users’ funds:
1. Vault contracts have a locking mechanism that that doesn’t allow anybody to withdraw the locked funds from the multi-sig.
2. Vault mechanisms have auto computation of users’ share in each vault and APY compounded every week such that when the strategy is initiated every week, there’s no manual input need that may lead to unit bugs.
3. Vault contracts are proxied to modify strategy duration based on user reviews but proxy mechanisms are time-locked.
4. Vaults have been battle tested with every edge case scenario possible and have been audited and will be audited again by Blocksec
- Q3 from @hamidmaul98 : My question for Cruize Team is Why do we need to use your platform? And elaborate the details on how you handle our capital to be not affected by the volatile market?
Cruize is one of the few platforms that provide capital protected returns on capital. If you provide liquidity on DEXes, you might get high yield but also suffer from impermanent losses. Similarly, using yield farms involve leverage which can put capital at risk. With Cruize, we generate some base lending interest that is used to buy exotic options from market makers. Since we are taking the buy side, our losses are capped at the price we pay for the options which itself comes from the lending interest, so the capital remains completely protected irrespective of market volatility.
- Q4 from @Muksin3874 : You say: “With Cruize, none of these risks affect your capital”, sounds good, but making promises is very easy these days, given the number of fraudsters, so can you explain to us exactly how you protect user funds? What are your security elements?
We simply don’t use your funds or sell your funds to buy the exotic options.
Rather we generate a base APY by lending them out and use the interest
to buy these exotic options that generate high APY.
- Q5 from @trinhcrypto1997: #CruizeFinance vision and mission are good, according to the website. However, it requires a significant amount of user traffic to be long-term viable. What marketing plan do you have in place to boost the credibility of your project’s brand and enhance mainstream adoption?
We have already kickstarted a massive KOL campaign with over 25 KOLs from various regions. Coming soon are more co-branded vaults which will bring a lot more cross-community exposure and we will also be doing many incentivised campaigns every quarter to keep user engagement high.
PART 3 — COMMUNITY LIVE Q/A
- @Demetriamilne1991: I want to support your project, Tell us more about the Ambassador Program and in what ways can we participate ?
We are going to start an ambassador program in the coming months. Stay tuned as we’ll also be seeking a lot of good ideas from our community. Anybody can join our communities using the links here: https://link3.to/cruize
- @inellmccallum2000: Staking program is very important for every project? Can i stake your Token? Do you have any plan of starting staking programme? plz tell sir?
Staking program is something we are currently working on the development of. It will go live in a few weeks after the IDO is over and we are also working on an LM program for liquidity providers of our token
- @ABRAHAM_BREWSTER_98: Could you provide an overview of the Cruize Finance team? What expertise and experience do they bring to the project, and how does their background contribute to the development and success of the protocol?
We have a whole page that talks about the team at Cruize. You can find the details here: https://www.cruize.finance/about
- @FilomenascholI: I’m a crypto newbie so is your project suitable for a beginner like me? or is only limited to professional users?
We built Cruize for users of all kinds and as you can see from UX, our app is very easy to use and accessible even for the most beginner users. Here’s our app: https://www.app.cruize.finance/vaults
- @XIO_YEO_420: What your token contract address?
What Network name, Symbol and Decimal?
And lastly How i can buy your token?
For anybody curious, full details of our contract addresses can be found here: https://docs.cruize.finance/technical-details/contract-addresses
- @Mogu7: Can you tell us the potential long term value of owning $CRUIZE token, specifically with regards to the expected growth and development of Cruize Finance ecosystem in the future?
As you can see from the roadmap, we have huge plans for the long term and have already made huge strides towards our goals. Institutional onboarding, multichain expansion, upgraded contract architecture and huge cross-community events are just some things that will get us closer to our ambitious roadmap
- @MY_Ridu163: Do you have any plan for burning tokens in the future to reduce the supply of the token,, and increase its investment attractiveness?
We are planning to regularly use 10% of our revenues to burning the token supply
- @ShalondaSteel: Within the context of Cruize Finance’s structured products, how do exotic option strategies contribute to offering yield opportunities with volatility protection, and could you provide specific examples of these strategies?
We have full details of our exotic options strategies in our docs: https://docs.cruize.finance/vaults/twin-peaks/how-it-works
- @ChristelChambers: Do you have any plans to attract non-crypto investors to join your project? Because the success of a project attracts more investors who haven’t yet entered the crypto world. What are the plans to raise awareness about your project in the non-crypto space?
We are going to be doing a lotta educational content in the coming weeks focused on financial markets, derivatives and yield strategies. Stay tuned!
- @kopklmoo: I’m curious about the name CRUIZE? Why did you choose this name CRUIZE? Can you explain to everyone the meaning behind of the name CRUIZE ?
We wanted to choose a name that implies solving for market volatility. Then cruise through the rough seas of crypto came up and we decided to use the name Cruise. You can see this theme play out on our website too. The z instead of s is because we found that a TradFi compnay called Cruise Finance already existed at the time. Thanks!
Follow Cruize Finance on all social platforms for upcoming IDO, AMAs, Airdrops, and every single good news about Cruize Finance that none of you would want to miss.
About ArbiPad
ArbiPad — Next generation Arbitrum-zkSync based launchpad by Good Games Guild. ArbiPad is constructed as a bridge between the best crypto project and the global community, especially investors and community in the crypto sphere with transparency and a fair distribution system.
Follow us for more updates!
| Website | Medium | Twitter | Telegram | TG Channel | Discord |
