Hakka Year-End Exam: Answer Sheet
Before the year 2022 ended, we launched a 30-question exam that revolves around DeFi and the Hakka ecosystem, to test our community’s knowledge.
Out of the 300+ participants of the test, 2 users got a perfect score of 30/30, earning them 50,000 HAKKA token rewards each.
For this time only, we will be revealing the key answers to the quiz, even explaining some of the questions that our community got confused bout.
The answers are in bold letters.
1. What does “DeFi” mean in crypto terminology?
DeFi or Decentralized Finance is a more open, transparent, and inclusive financial system that is achieved through the deployment of decentralized, blockchain-based technologies.
It includes a variety of financial services and products, such as lending and borrowing, trading, insurance, and more, all of which are based on decentralized networks and permit peer-to-peer exchanges without the use of middlemen.
Regardless of location, credit history, or financial situation, anyone with an internet connection can access financial services thanks to DeFi.
2. What is one of the main use cases of DeFi?
Lending, borrowing, and staking are some of the most common features of a DeFi.
3. What does “DAO” mean in crypto?
Decentralized Autonomous Organization is the abbreviation for DAO.
This particular sort of organization is governed by smart contracts, which are computer programs that are coded as rules and run on a blockchain network.
A DAO runs on a decentralized network and is autonomous, meaning it is run by its members in accordance with its rules and code rather than being managed by a central organization or person.
Owners of the DAO’s tokens hold the right to vote on proposals and control the DAO’s course of action.
DAOs can offer a new degree of accountability and efficiency compared to traditional organizations since they are transparent because all transactions and operations are recorded on a public ledger.
4. How many products does Hakka Finance have?
Currently, there are 7 Hakka products that are active: iGain IG, iGain IRS, Hakka Intelligence, 3F Mutual, BlackHoleSwap, Hakka Harvester, and Hakka Play-to-Earn.
5. What is the main token of the Hakka ecosystem that also grants you ownership of the Hakka Guild Bank assets?
The HAKKA token is the main token that administers the Hakka Finance ecosystem. This token also has an intrinsic value in a form of ETH, MKR, BHSc, and USDC, which can be realized when burned in the Hakka Guild Bank.
6. What is 3F Mutual?
3F Mutual is an insurance platform that hedges your positions against MakerDAO’s shutdown and DAI de-pegging.
7. Which of the following blockchains are Hakka Finance products not available?
Right now, Hakka Finance products are available on Ethereum Mainnet, BNB Chain, and Fantom.
Unfortunately, we have not yet incorporated nor considered extending our product into the Cardano blockchain.
8. Which Hakka Finance product fixes DeFi lending/borrowing interest rates?
iGain IRS is a Hakka Finance product that hedges fluctuating interest rates in DeFi.
The iGain IRS platform uses LONG and SHORT derivative tokens to keep your rates stable, despite the market volatility.
9. What kind of derivative token do you need to buy if you don’t want your stablecoins lending rates to decrease on iGain IRS?
When wanting to fix your lending interest rates on iGain IRS, you would need to buy SHORT tokens, so that whenever the lending APR (annual percentage rate) goes down, you will still earn from your SHORT tokens, thereby covering the losses you would have incurred.
On the other hand, buying LONG tokens is necessary to keep your borrowing interest rates stable, because you wouldn’t want your rates to go higher.
10. What is the token granting you voting power in the Hakka Finance DAO?
The sHAKKA is the governance token of Hakka Finance, and this token gives you the power to vote on the Hakka DAO and decide the future of Hakka through its Snapshot website.
11. Currently, which stablecoin collapse can 3F Mutual automatically protect you from?
3F Mutual is an insurance and a hedge against the Emergency Shutdown of MakerDAO, which is a probable scenario in times of instability, or when the DAI, MakerDAO’s stablecoin, depegs.
12. If you stake the official token of Hakka Finance, which token will you get in exchange?
The official and main token of Hakka Finance is the HAKKA token. When staked in the Hakka Finance server, HAKKA produces sHAKKA, which is the governance token of the Hakka ecosystem.
13. Which on-chain event will trigger 3F Mutual to release all the ETH in its pool to all its active stakeholders?
If MakerDAO officially declares an Emergency Shutdown, the 3F Mutual smart contract will be automatically triggered to release ETH to those with active 3F Mutual insurance.
14. What is impermanent loss?
Impermanent loss happens when the value of the tokens you put in a liquidity pool is lower compared to when you just held them.
15. Which mechanism is usually the pillar of DeFi liquidity pools?
Most of the DeFi liquidity pools today are powered by Automated Market Maker, which is simply a mechanism that follows the formula, x * y = k.
16. Which one is not an example of a derivative?
Futures, Options, and Swaps are some of the most common types of derivatives in the financial market.
Spot, on the other hand, is the opposite of a derivative since the asset you are buying is not derived from other assets.
17. True or False: HAKKA Token holders can burn their tokens in exchange for ETH in the Guild Bank.
This one is true. The HAKKA token has an intrinsic value supported by ETH, MKR, BHSc, and USDC, that can be realized when burned in the Guild Bank.
18. What NFT can you unlock on Hakka Play-to-Earn Level 1 if you join the Hakka Snapshot DAO?
Joining the Hakka Snapshot DAO can make you eligible to claim Mission 1 NFT on Hakka Play-to-Earn Level 1.
19. Which Hakka Finance product allows you to bet on cryptocurrency prices and real-world events?
Hakka Intelligence is a prediction market platform by Hakka Finance, that utilizes Chainlink for real-time, accurate results.
Hakka Intelligence allows you to bet on future crypto prices, and recently, we have incorporated real-world events into the system, debuting with the World Cup 20222.
It is currently deployed on the Polygon Network and BNB Chain, and you need HAKKA tokens in order to participate.
20. Below are the ways to participate in 3F Mutual, except for one:
There are 3 ways to participate in 3F Mutual: Become an insurance buyer, an underwriter, and an insurance agent.
Becoming an insurance consultant, however, is not.
21. How often can HAKKA rewards be claimed on the Vesting section of the Hakka Finance website?
When you put and lock your HAKKA tokens under vesting to earn maximum rewards, you will only be allowed to claim your HAKKA every 19 days.
22. Up to how much can you earn if you submit a vulnerability issue to our Bug Bounty program with ImmuneFi?
You can be rewarded up to $1,000,000 if you submit a vulnerability issue on any Hakka Finance products through ImmuneFi.
Of course, there are certain rules, due processes, terms, and conditions that are applied.
23. What is the maximum supply of HAKKA tokens (before token burning)?
The maximum supply of HAKKA is 2,147,483,647. It means that there will only be 2,147,483,647 HAKKA that will ever be minted in its entirety.
This is usually confused with 635,982,513, which is the current total supply.
24. You can complete the Hakka Play-to-Earn Level 2 Mission 1 by:
Following Hakka Finance on Twitter.
25. What is the maximum number of days you can be insured by 3F Mutual?
At the moment, you can be insured with 3F Mutual for up to 100 days per unit.
26. One of the lending aggregators that iGain IRS is partnered with is:
Yearn Finance
You can make your deposit interest rates fixed on iGain IRS through Yearn Finance (Fantom chain). This is also possible through Aave, however, the latter is more of a lending protocol than an aggregator.
27. What is the web3 app used by the Hakka community to vote on major governance decisions?
You can vote with your sHAKKA through Hakka Finance’s official Snapshot webpage.
28. An Agent of 3F Mutual will earn 1% of insurance fees.
This one is False. A 3F Mutual insurance agent earns a 15% commission on every premium of future insurance buyers.
29. How much of the HAKKA rewards can be withdrawn in each withdrawal in the Vesting section of the Hakka Finance website?
You can withdraw up to 17.8% of your rewards on your vested HAKKA tokens on the website.
30. Which Hakka Finance product can be regarded as the “antimatter” of impermanent loss?
If iGain IRS hedges you against DeFi interest rates fluctuation, iGain IG protects your assets against impermanent loss.
Impermanent loss is a common occurrence in liquidity pools, but with iGain IG, the most common culprit can now be avoided.
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