Exclusive Interview | Taiwan's DeFi Tool FuruCombo: Profit from Arbitrage Strategies Without Coding Knowledge

Decentralized Finance (DeFi) saw significant growth in 2020, with data from DeFi Pulse showing that the total value of assets locked in DeFi platforms increased from $1 billion to $25 billion over the past year. Similar to the cryptocurrency secondary market in 2017, as DeFi rapidly expands, there are many arbitrage opportunities or low-risk profit-making possibilities among different exchanges.

However, the DeFi space differs from traditional centralized exchanges, with mechanisms and complex trading logics unique to each protocol that not all market participants can grasp. FuruCombo was created as a solution for this.

FuruCombo is a DeFi aggregator platform developed by the Taiwanese company DINNGO. Unlike trading aggregators like 1inch, FuruCombo's aggregation focuses not only on trading but also on the composability between various DeFi protocols. Zhu Xuanting, co-founder of DINNGO, stated in an interview:

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"Our phones or the internet are not very useful when they are not connected. They are just independent entities. However, if we can link them through the internet, it can lead to many possibilities. FuruCombo plays a role in DeFi by connecting the infrastructure of various independent protocols."

In essence, FuruCombo modularizes all on-chain trading tools. In practical terms, it can be roughly categorized into "official trading combinations," "customized trading combinations," and "community arbitrage strategies."

Official Trading Portfolio

FuruCombo has released many trading interaction templates related to DeFi protocols for users to choose from. These combination templates provide more convenience for DeFi players.

For example, if today I deposit ETH in Compound to earn passive lending income, but due to ETH's weak trend and low interest rates, I decide to exchange ETH for USDC and then re-deposit it in Compound to earn interest. Throughout this process, I need to execute a series of operations including withdrawal, trading, and staking.

However, with FuruCombo, I only need to input numbers and click send to complete all processes, making the process simple and convenient. In terms of operations and user experience, it is similar to platforms like Zapper, which aim to simplify complex trading processes with a one-click solution.

Custom Trading Portfolio

However, with numerous DeFi protocols and various trading logics that can be combined, official trading portfolios alone cannot meet all user needs.

Therefore, in addition to official custom trading portfolios, users can also create their own trading portfolios by piecing together the trading logics they want to execute. Building on the previous example, if today I sell ETH for USDC and decide not to continue holding it in Compound but instead want to switch to Aave, I only need to change the last module of the trade to Aave to provide liquidity.

This flexibility is what makes FuruCombo powerful. While tools like Zapper are convenient, they lack flexibility, as users are confined to the strategies provided by the platform. In contrast, with FuruCombo, users can freely define any trading steps across multiple protocols, from daily operational processes to arbitrage strategies that others have not considered, all easily achievable with FuruCombo.

Fundraising Strategy

The combination of good talent with good tools can achieve the best results, an age-old truth.

FuruCombo plans to allow community trading experts and developers to become strategy creators in the future. Strategy creators can leverage various protocols and advanced features provided by Furucombo to create high-profit strategy combinations. Once the creator completes a strategy combination, anyone interested in that strategy can invest in it. In other words, the creators of Combo strategies will act as portfolio managers, launching investment portfolio strategies and pooling funds from investors to execute the investment strategy.

According to the official statement, strategy creators will receive corresponding dividends based on the performance of the strategy, and they may also have the opportunity to receive bonuses provided by Furucombo. This design of combining "strategy creators and fundraising strategies" will allow Furucombo users to more comprehensively capture various investment opportunities in the market. Zhu Xuanting mentioned in an interview:

"Most people know about arbitrage, but many do not know how to profit from it, especially with Flashloans. Therefore, we hope that strategy creators can share their strategies on the platform and gather everyone's funds to create profits together. These creators play a role similar to fund managers."

COMBO Token

COMBO is the token issued by the Furucombo platform. Zhu Xuanting stated that the purpose of issuing this token is to create a closer relationship between participants and the Furucombo ecosystem:

"The main purpose of issuing this token is to bring everyone closer to the ecosystem. The ecosystem mainly consists of three roles: users, strategy creators, and protocol developers (including third-party protocols)."

Although the token has previously completed its initial decentralized exchange offering (IDO) on the decentralized exchange Balancer, users still have many ways to obtain COMBO tokens, including through trading mining programs (earning tokens by using platform functions) and strategy creation rewards (earning tokens by publishing strategies).

Furthermore, interfacing with third-party protocol developers (such as Sushiswap) after the product is completed can also earn COMBO tokens. Regarding token demand, it mainly relies on the platform's staking mechanism. Zhu Xuanting mentioned:

"Users can stake tokens on the platform to collectively protect the platform, and we expect to distribute staking rewards through repurchases or other methods in the future."

Additionally, Zhu Xuanting also stated that COMBO tokens are similar to MakerDAO's MKR. Token holders must collectively bear the platform's risks. If unexpected issues occur that result in losses, the platform will sell the staked COMBO tokens to compensate the victims. Therefore, token holders participating in staking have a mutually beneficial relationship with the platform, sharing in the rewards and potentially enjoying premium platform features in the future.

If DeFi continues to thrive as expected, Furucombo will be a highly practical tool in the ecosystem, simplifying many complex operational processes for a wide range of users. However, the success of a project depends not only on what it can do, but also on the core development team behind it. In the interview with Zhu Xuanting, there was not much explanation about the token itself. Instead, the focus was on Furucombo's positioning, ecosystem maintenance, and the future development of the DeFi field. The team is already considering how Furucombo will address the composability issues among various third-party protocols after implementing second-layer scaling solutions. Overall, the Furucombo team's clear and visionary approach makes it a Taiwanese project worth paying attention to.