Quick Guide to Novac: Entering the Era of Private Defi with POFID

Quickly Understand POFID DAO

POFID is a DeFi project based on SERO, the world’s first privacy-protection public blockchain that supports Turing-complete smart contracts. Its full name is: Privacy-Oriented Financial Instrument Distribution Framework & DAO, and it provides a trusted, decentralized financial asset-management platform with privacy protection. POFID-DAO refers to the platform’s decentralized governance framework organization.

The POFID project was initiated by an anonymous team of programmers from Europe (based on the naming of their first dapp, the team is most likely from an Eastern European region such as the former Yugoslavia). From the disclosed white paper, the project goal is broader and far more ambitious than MakerDAO. If MakerDAO is concerned with the native digital currency ecosystem, then POFID has gone far beyond this category, focusing instead on the use of blockchain and digital currency technology to provide a parallel to the existing financial system of global financial trade. Currency reform attempts can’t help but be reminiscent of the Yugoslav economic reforms of the 1990s. Your humble author has struggled to find the origin of the product name “Novac”, but a search into its etymology hints that it may be derived from ancient Bosnian word for “money”.

This article mainly focuses on the experience of the first dapp product of POFID: Novac.

In general, Novac allows users to achieve the following:

1. You can manage POFID-based issuance and related derivative assets, including transfers, withdrawals, and viewing transaction records.

2. You can lock POFID platform digital assets of autonomous access types from the POFID-DAO community and issue/loan additional anonymous stable currencies that are pegged to different fiat currencies;

3. You can return the borrowed stable digital currency and unlock the previously locked digital currency;

4. You can use the POFID platform governance and equity token PFID, and participate in staking to obtain a PFID mining income;

5. You can participate in platform governance decisions through PFID’s staking behavior;

6. You can also receive dividend income through the staking behavior of PFID, for example, the fee income generated when a loan is issued;

This article will make you familiar with the use of POFID’s native dapp products, Novac:

There is a download link for Novac on the POFID official website, and it can also be accessed directly through the Chrome browser.

Open the website http://pofid.com/ and click on the button to access Novac.

The Wallet Account Interface

Open Novac and enter the Wallet Interface:

• Click on the globe icon in the upper right corner and choose the language that suits you. Currently, English, Korean and Chinese languages are supported.
• If you do not currently have a SERO wallet account, you can create a new one. If you already have a SERO wallet account, click Import and use the mnemonic phrase to import the account according to the prompts.
• You can import or create multiple accounts.
• Please select a wallet account for the next operation.

The Platform Currency PFID Interface

Click on the PFID menu on the left navigation bar to come to the platform management interface:

• Balance displays your current PFID balance.
• Staking Pool displays the number of PFID pledged in the current mining pool;
• Staking Record: the staking record of the current account.
• Go Staking: this is for participating in the staking and deposit of PFID to generate interest.

• Go to the Go Staking operations page and enter the amount of PFID to be pledged in the Amount text box. Here, I entered 10,000 PFID.
• In the Cycle (Days) drop-down box, select the number of days to be pledged. Here, I chose 30 days of pledge time.
• After entering the password, the page will display the expected income of the pledge for the current period. Here we have 10,000 PFID pledged for 30 days, and a 40 PFID income that will be obtained after expiration (depending on the number of pledged days, the interest rate is different, the 30-day pledge interest rate is 0.4%, the 60-day pledge rate is 1%, and the 90-day pledge rate is 2.6%. With the deflation of PFID, the pledge rate will decrease by 10% every year.)
• Click Commit to submit the order.

• After the block synchronization is completed, you can see the pledge records of Staking Records on the MY PFID page, each with a corresponding pledge number, the number of pledge days, pledge principal and interest, and countdown expiration time.
• After Staking expires, you can choose to reinvest or withdraw with the principal and interest.

When you come to the EQUITY interface, you can see the current seigniorage dividends generated by pledge. The prerequisite for obtaining dividends is that someone borrows stablecoins after you pledge. It should be noted here that when a certain pledge has received dividends, the Withdraw can be withdrawn only after the pledge is completed.

The PV Smart Contract Interface

PV is the pledge vault of the POFID DAO platform and the central smart contract of POFID. SERO coins can be pledged through PV smart contracts (BTC, ETH and other digital currencies can also be pledged), and corresponding anonymous stablecoins can be issued.

• PV LIST displays the current smart contract pledge list, which is described in the POFID DAO white paper: the platform governor votes to incorporate the pledgeable digital assets into the PV smart contract, and PV LIST shows the current platform A list of all pledged smart contracts. Here, we can see the anonymous stablecoin SUSD issued by pledged SERO coins.
• Through the SERO-based PV smart contract, we can see that the pledge rate of SUSD is 200%, the liquidation rate is 150%, and the real-time price platform accessed through the oracle is Gate.io.

• The mortgage rate and liquidation rate for borrowing SUSD are the same as those in the PV contract, 200% and 150%. The current approximate exchange ratio is 1SERO= 0.08565 SUSD;
• Click the Borrow button to try to borrow the anonymous stablecoin SUSD from the platform.

• Let’s see how much SUSD we can borrow if we stake 10000 SERO. Entering 10000 SERO in the amount column, the system quickly calculates for us that 10000 SERO can allow for a 393.99 SUSD loan, and we need only pay 34.26 SUSD as a handling fee (this handling fee will be divided into two parts, 80% will be distributed to staking users, and 20% will be used to recycle PFID coins circulating in the market and burn them. Therefore, the PFID coin market deflation mechanism, as more and more recycling and destruction, the higher the price of PFID.)

• After the loan application is submitted, click the status icon in the upper right corner to see the synchronization status of the block.

• Now we return to the EQUITY page. Here, I received a seigniorage dividend of 9.1972SUSD because I met both conditions at the same time. I am currently staking PFID coins, and SUSD loans were created after my staking. After my PFID token staking ends, this dividend can be withdrawn.

• MY OCA page: shows all loan records.
• Here, I choose to return a loan and click the Repay button.

• The system automatically displays the repayment amount. Enter the payment passwor, and click the OK button to confirm the return.

• On the OCA LIST page, we also see the Create Auction status button. What is this?
• When the Create Auction button appears, it indicates that there is a loan asset, which triggers the clearing price of the PV smart contract, and the system initiates an auction to compensate for the loaned SUSD in the PV smart contract.

• Click the Create Auction button, enter the password, and create an auction. After the block synchronization is completed, the status button will change to Go Bid.