Jon Ray discusses game theory behind SmartCoin's DeFi platform

0:00i'm ashton addison from blockwest capital for investmentpitch media in the Crypto Coin Show and today on blockchain interviews we have john ray the community manager of smartcoin john welcome to the show and thanks for taking the time to come on yeah thanks for having me ashton you're very welcome i'm excited to dive into smartcoin it's an interesting

0:19project based on what i've heard so far i would love to kick our conversation off by hearing how did you get involved with smart coin a little bit about yourself in blockchain and what is the smartcoin platform yeah sure so smartcoin is essentially a social experiment in game that is in the wrapper container of a high apr yield farm so for those

0:46those who are familiar with deep io or the djinn world and you know i think a lot of people initially myself included got into smart coin which was the layer one iteration of this project because it was offering insane aprs so we're project where projects like time and ohm are kind of pricing the their dividends in apy because it's a rebased compounding platform we're talking

1:16about aprs in phase one that were as high as 25 000 percent and in this latest iteration we're already seeing 4 000 aprs which is basically about 11 a day on your money assuming stable price actions so a lot of people got into this project because of that the total value locked rose very quickly because it was such an incentivized platform and the memetic marketing of the project

1:45Created kind of an interesting twist on that on because while it was positioned as a also a social game aspect to it so the way that the marketing was framed was that this was a 10-phase project and each phase is cloaked in mystery until we get into it and so unlike some yield farms where you are afraid

2:12is this project legit are they going to pull the rug on us you know is my money safe in this long term because of that most actors in the d5 dj in space are selfish in nature and taking selfish game theory actions and the game component of smart coin has created a paradigm where more and more as the community kind of binds together we are taking collective

2:42cooperative measures which are selfless actions which are zero-sum so the reason that i that i'm on your show right now is because as the official twitter account for smartcoin was rolling out all of these clues in this game kind of kind of teasing what might come next in the project who the founders were you know supposedly there's a harvard professor that's

3:10a part of this and you know high-level developers and advisors from trader joe and the avalanche network so the from the beginning the marketing created a really tight-knit community of people that are trying to kind of solve these clues in this puzzle and to me that's the most interesting part of the smart coin ecosystem is that with such a

3:34powerful community of diamond-handed whole totalers basically in the project not only are are we making insane aprs you know in the current iteration of the project but all of these rewards of like an official meme coin drop additional projects a prize pool in phase 10 these are all kind of carrots that have been floated out there by the by the team and as a community we've

4:02kind of binded together to figure out how best to synchronize our actions in order to make this as collectively profitable as possible wow incredible john thanks to thank you for the backstory brings a lot of light and i liked how you brought in the game theory there as well and talking about you know selfish moves in game theory you know in d5 as

4:28you're right that in previous projects if you didn't know the certain long-term certainty of a project then you're going to be acting more selfishly just in case everything goes sideways so but to hear about this twist where there's like 10 levels and adding in other game gamification into d5 i think is really going to make it more interesting than just

4:51you know having platforms that seem really fun and cute but really you're just putting your coins there and you're getting a reward there's not really anything else to it so i think that's an important aspect maybe you can talk a little bit more about you know because i was looking on the twitter it says it's the squid game of crypto and a lot of people who are deep

5:10into crypto aren't following popular culture don't necessarily understand what squid game is they probably understand game theory a little bit but maybe you can talk about that in the gamification of the platform a little bit more yeah well i think one of the things that we're going to see more and more of in the crypto space and d5 basically decentralized project projects

5:33in general is that now that anybody can fork anything and you see this already olympus dow has been for a million times and just in the last week there's been you know i think five or six of those projects rugged their investors and so people lost all of their money and so one of the aspects that we have to start pricing in to projects that we invest in is

6:00how legitimate and competent is the development team and how much risk is there that development team could take our money and run and one of the interesting things about the mimetic marketing of smart coin is that they phrased the entire project as the squid game of crypto so if you're familiar with the popular netflix series it's basically a

6:26show about game theory in and of itself and without giving a spoiler alert it is teasing out clues on how to win these games and at the end of the show there's a giant piggy bank of money billions of dollars that can be won so the premise was that this is a project that is cloaked in the same kind of game theory and mystery and if you can follow the rules and you

6:56kind of kind of follow the breadcrumb path that the official twitter account is giving you can most successfully position yourself in the game to win long term and one of the interesting things that did is it galvanized the community under an umbrella of gamification and so part of that gamification is something that has been promised to roll out in

7:23future phases of the game right now we're in phase three of ten phases and that is a concept that they're calling wallet reputation so in a lot of d5 projects what happens is whales come into the project they vibe at the early stages because of the high aprs and then as they collect the reward yields that the apr is paid out in they're selling that and growing their

7:51position in the project but they're basically doing what's called suicide compounding and dumping dumping their coins into the ecosystem which is not healthy for the ecosystem as a whole and ultimately it benefits whales over the little guy and in a lot of d5 and crypto projects that launch they the early investors or early whales get access to the contracts

8:19before the everyday investor and so they have the benefit of being an insider and getting set up in the in the project in a way where they then benefit off of the money that smaller investors are putting into the project one of the things that smartcoin has pointed itself as and that the community has kind of grasped around this project is they've

8:45called it the fairest launching crypto history and what you saw the investors and the early investors got to put a huge chunk of money in into the pie first you can see in the smart coin official wallet and in their early investor wallet they received the distribution of the emissions of the project at the same rate as everyone

9:14else and so it really set a level playing ground in the project where everybody is just as capable of becoming a whale in this project especially when you factor in that there are all of these kind of gamified carrots so if you follow the rules as they've been outlined and don't take selfish market actor plays the way that you normally would you know as a degenerate in the defy

9:42space they then there are potential rewards down the line and you can profit by being cooperative rather than selfish and i think that's the most interesting layer on top of this project is that the team has proven that they have an incredible ability to one create mimic marketing which is where you're taking something from popular culture you're you're linking your

10:08project to it so that it marries and makes it easy for people to remember so that's why they use the squid game reference because anybody who already had that in their mind is now easily able to make a link to the to the project and it potentially deepens the curiosity and then the continued mimic marketing is essentially the development team

10:33watching the community talk about the project and then surfacing the best ideas through their official channels in order to spotlight it you know it's kind of like the game you played with your parents as a kid where they're like hot cold hot cold and as you like walked to where something was hidden they would tell you hot or cold that's kind of what the development team is

10:56doing with the community as we surface theories about what this project could ultimately become in their own cryptic way they're telling us when we're hot and cold and the more that we listen to them the more that we can align our actions to be more profitable in the project very cool i love that and it really seems like the game theory that they've built into

11:21you know like ethereum for example where you're mining it and having the consensus protocol and having positive actions in the game theory to work towards a common goal to not hurt yourself if it's like applying that into defy and staking at an individual level and making it so you can create more synergies if you if you work together and get more rewards so i really

11:41like that john yeah that's right and i think one of the things that we haven't spoken about that has kind of been teased in the clues of this project and i'm gonna break something on your show right now that actually hasn't been announced to anyone in the project be because i just got a cryptic message about it myself but essentially what smartcoin is

12:06setting itself up to be is a kind of memetic marketing engine and crypto defy incubator where they have a community that is so tight-knit and so banded together that they can essentially layer any project on top of the community and that project will immediately have the liquidity required to bootstrap itself and to get an early jump in the marketplace and this is a

12:34really interesting concept that i think the team will be rolling more details out about and i have very limited information about it but essentially by investing into smarter the smart smarter eco system now you are vader that down the line gives you a safe environment to invest in new projects so instead of you know putting all your money into something

13:02like rain dow which pulled the rug on all of their investors earlier this week you know okay i've seen enough from the smart coin project to know that any project that they launch is going to be a fair launch project and the rug isn't going to be pulled and so i can have a i can lower the risk of getting into one of those projects and if that is the case and smart

13:30coin essentially becomes a type of defy incubator i think that there will be a very profitable experience that is birthed out of that because it will allow investors a certain peace of mind that any project subsequently that smart coin rolls out one has a competent team behind it and the potential for tokenomics success but two already has a liquidity pool and

13:59a fervent community underneath it and so one of the things in the next phase of the project that has been teased to us is that the marketing engine of smart coin is going to be releasing a meme coin and if you are investing into the smarter coin ecosystem so if you're buying smarter coin right now pairing it with avax creating a liquidity pool contract and then

14:23staking that pool within the smarter ecosystem at smartcoin.farm that basically gives you access to an airdrop of a meme coin and one thing that the community i think is all in agreement with in the telegram group which is where most of these conversations have been happening the telegram group is growing by about a thousand members a day right now

14:47i think we're at 17 000 members all figuring out these clues is that the smartcoin team if nothing else has really shown that they understand memetic marketing they understand how to build engagement through memetic marketing and if that marketing engine is then directed towards some kind of a mean

15:15coin launch and has a liquidity pool bootstrapping it already that could potentially be a really interesting scenario where where we're able to very quickly build a product that has kind of the exponential growth rate of something like a doge or sheba very cool john and yeah i was going to ask you about the smarter ecosystem with a smarter token but you

15:40just laid it out all right there including the memecoin launch which is super cool for the viewers that are like looking to get involved in this right right now and learn more about you know the farm and the launches and the rest of the clues that are going to come out you know how do they get involved right away yeah i think the best thing to do would

16:02be to go to smartcoin.farm and you can click on the community link there i believe and find the twitter and the telegram twitter and telegram right now is where most of the official communication from the team is coming from also on smartsmartcoin.farm you'll find an official stamp from rugdock and paladin the contract the smart coin contract was audited by paladin and the

16:30founders even though they are not fully doxxed yet and we don't quite know who who they are they have kyc'd with rugdock so they showed a driver's license and proved that they had access to the developer wallets and there's also been liquidity locked there so you can read all of that by clicking on the rugdock and paladin icons at smart form and there's smart

16:55coin farm and then i would definitely encourage everyone to just read the white page if you click on the documents link and the full tokenomics are laid out there and you know we there's still a lot about this project that we don't fully understand and that's kind of part of the gamification of it and the fun but my sense is that if you are looking to learn about defy

17:20and learn about how liquidity pools work and learn about all of the tokenomics behind decentralized finance this is a really interesting project to get into whether you invest or not because just by following the telegram and the clues that come out you're forced to research what a liquidity pool is what impermanent losses you know what kenzian economics is and

17:47so it's a cool gamified way of learning about decentralized finance and becoming a more savvy investor definitely two for one thank you so much john for explaining all of this it really is exciting i'm gonna be looking for the next clues as well all the best with smartcoin and i'll send my audience over there if they're interested in playing some games in d5 because i think

18:15it's really interesting and everyone should take a look so thank you so much for taking the time and let's follow up in the near future all right thanks ashton you