The First Stop of VENA Global Roadshow — Singapore

The core members (CEO Zhu Qing, CTO Lan Jian, Overseas market operation Zhou Haiqin) came to Singapore for VENA global roadshow. The core team participated in the blockchain high-quality project roadshow organized by Satori on 23rd, July and then invited friends to participate their coffee meeting on 24th, July. This article summarizes activities of the two days so that you can get the real-time information about VENA.

Part 1 Blockchain High-quality Project Roadsho

Ms. Zhu Qing, the CEO of VENA Network, firstly introduced the application of Vena Network in the OTC transaction and collateral loan, which connects the fiat and cryptocurrency. Two institutions / Individuals with traffic can build their own financial products DApp through Vena protocol and become the nodes in Vena network. Nodes will share one high-liquidity order pool and earn transaction fees through the matching transaction to realize monetization. Then, Ms. Zhu analyzed the reasons why recently more and more traditional financial lending platform run away, including the lack of supervision of funds and the poor pure credit risk control. Under such circumstances, the use of digital assets as collateral will be more favored by investors. Holders of digital assets will obtain a lower cost of capital use from the traditional wealth management users by collateralizing their digital assets. In addition, the CEO also described the use of VENA tokens, including node guarantee requirements, user membership system (silver, gold, diamond), the application of credit diversion settlement system, the official node profit repurchase and so on. Finally, the CEO also introduced the future development plan and project investors.

Part 2 VENA Coffee Meeting

VENA held a coffee meeting with fund investors and heads of Internet finance companies, which lasted three hours. The nine major discussed questions are generalized below.

1. Why do the P2Plending platforms frequently fold up?

In my opinion, there are two main points: 1. Platform funds lack good management. There is a risk of fund misappropriation without transparent fund uses. 2. The credit group itself exists the risk of default. the risk control capability of the platform is poor, beyond the ability to withstand bad debts. At the same time, because of the continuous shutdown of the P2P platform, investors have been looking for new investment opportunities, further promoting investors choose lending with cryptocurrency. On the one hand, we provide digital asset holders with a low-cost lending platform. On the other hand, they give financial investors a safe investment target with higher interest rates than ordinary financial returns.

2. What’s the difference between Vena Network with other collateral lending products?

We can get funds with lower interest than other products in terms of the different positioning of the investors. In addition, the leverage function is greatly dependent on the risk control. Otherwise, from compulsory liquidation to the completion of liquidation, the collateral value may be lower than the principal and interest, where the blow up will occur. This requires a strong risk control capability. We will provide different compulsory liquidation probability corresponding to different lending ratio. When the blow up occurs at the time of scaling out of positions with the estimated probability of zero, we will issue additional VENA Token for compensation. Vena applies an extremely optimized risk control model to ensure the calculated mortgage rate at different amounts and lending period is optimal and mostly reduce the probability of blow up. In a word, VENA Network is a financial product. We want the borrower get low-interest money and help them to safely exchange more money with collateral of equivalent value.

3. Will VENA issue your own token? How do you manage the token?

Yes, VENA will issue VENA Token. Our future goal is to achieve a distributed financial network, but most of the blockchain projects operated in this way are not very optimistic, because of the landing difficulty. According to our analysis of the collateral lending market, the mainstream cryptocurrency market value is 150 billion dollars, the pledge rate of domestic stock secondary market is about 10%, and there are 15 billion US dollars in demand of lending with 15 million global active users. In China, there are 2 million active users, which will increase by 14 times in 2021.

For the user’s side demand, a Silver member with purchase of 1,000 VENA Token (1 million members) can enjoy a 20% discount. A Gold member with purchase of 10,000 VENA Token (0.1 million members) can enjoy 50% discount and unsecured loan. Users who hold 100,000 VENA Token will become a diamond member (10,000 members) and enjoy a 1–2% interest rate reduction and unsecured loan. In general, collateral loan is a rigid demand. The current number of VIP service objects supported by VENA Token is much smaller than the future market demand. As the business develops, we will propose DAO gradually lower the threshold, creating a lot of appreciation space for the early holders.

4. How about the junior investors, e.g. users only familiar with Alipay and bank savings, without any knowledge of cryptocurrency?

For entry-level users, we will start from two aspects, namely financial management and cryptocurrency. We are recruiting experienced financial managers who not only have financial experience, but also bring a lot of investors. For entry-level investors, our wealth managers will provide a full range of services, such as guiding users on how to invest in USDT or how to invest in cash. Secondly, our official website will also present some guidance and Q&A about cryptocurrency and financial issues for users. In addition, we will launch the official node this month to explore a simple way to instruct users.

5. Can we exchange VENA Token to other tokens?

It is difficult to monitor off-chain transactions and there are possibilities of off-line transaction disputes, so we introduce the jury mechanism. We provide an arbitration mechanism. Each transaction dispute will be solved by three jurors. The jurors can also obtain tokens through each arbitration. These tokens are maintained by 5% of the foundation tokens in the early stage and then will be issued by VENA in the later period. (no more than 3% per year), to ensure that this network can run continuously. If we replace it with USDT or other cryptocurrency, they are not willing to provide tokens to our jurors, so there is no way to replace VENA Token with other tokens.

In the future, we will extend a lot of features on VENA Tokens to have a good scalability. In addition, we believe that Tokenomics allows more individual investors to participate in the Vena Network, rather than holding the rights in the hands of the founding team and early investors. This will help us to achieve a truly inclusive financial network and we hope that everyone can endorse VENA and benefit from the inclusive finance.

6. Is there any difference between juror and the super node?

Sure, they have different functions in Vena Network. The work of jurors is to solve some disputes in the chain exchange and the threshold is relatively low.A super node is a traffic node that participates in the process of order matching and the threshold is relatively higher.

7. How does the platform ensure the fund security and keep the fund in your order pool?

The collaterals are completely locked in our smart contract. In order to ensure fund transparency, we will display where the funds go as much as possible and the user can check the fund whereabouts on their own interface.

8. Will the calculation method change when the estimated value discounts? Which asset shall the user choose to cover short positions, the same asset or another asset?

The calculation method will not change because we calculate the safe loan rate based on the time point and historical data, user mortgage period, and currency. We all know that people who do asset collateral are all aimed at retaining assets, and it is normal to experience fluctuations. In the early stage, we use the same assets to cover short positions and will introduce other kinds of assets in the future.

9. What do you think of the Southeast Asian market? How is it compared with China?

The supervision in Southeast Asia is not strict. Internet finance in Southeast Asia is China’s Internet finance in the past two years. Currently, some local licenses have been issued, but the regulation of interest rates is still very loose. However, China is relatively well-regulated, so investment opportunities and returns are relatively poor. The borrowing assets on these financial DApps built by Vena Network will be good investment targets.

Welcome to follow us:

Telegram: https://t.me/vena_network

Twitter: https://twitter.com/VenaProtocol

Written by

VenaPi is-Tron(TRX) Wallet is a decentralized wallet + dapp browser. Download link:http://pi-download.tokpick.com/#/en?channel=social

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade