AMA — DGVC & ERCAU: @Cryptobharatcommunity — September 21st, 2020

Paul @ Degen.vc
Sep 21, 2020 · 9 min read
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Stage 1: Intro

Before we get started, tell us a little bit more about yourselves and your experience in starting Degen.VC.

Paul

My background is largely in Financial Services. I ended my career in banking as a Group Treasurer which was awesome. For the last 8 years I have been working in disruptive technology, and now full time on Blockchain! It has been a very exciting journey for the last 5 years and hopefully for many in the future.

Fraser

I’ve been focused on the ideas that evolved into Degen VC with Paul for the past 2 years and prior to this was focused on ethereum curation markets since about 2016.

Before this for four years I was an innovative finance consultant for the biggest global environmental agencies designing financial instruments and innovations around money. Before taking the crypto “red pill”!

Before this diamonds. I had a multi-million dollar business based in New York City selling diamonds internationally.

Before this Olympics. I represented Ireland in sailing in Athens 2004

I’m an engineer with an MBA. Out of my MBA I was a strategy consultant working for many of Ireland dot com boom tech companies as well as investors

What is ERCAU and how does it potentially change gold tokenization?

ERCAU is an early stage project which now has an active Uniswap market thanks to Degen VC

Basically the proposition is that gold should have an option to be represented by one token over all others

It sees “gold tokenization” as both idiosyncratic and disaggregated currently

It will be a smart contract that allows gold tokenization as a service on Ethereum with two mind blowing features:

1. It eats all other tokens by design (burns / locks them as part of its process)

2. All physical gold redemptions are “authorised” autonomously. I.e. if everything goes bad in the world everyone everywhere can redeem their physical gold

check it out at ercau.com

You say that Degen.VC is designed to disrupt VC’s by making each individual their own VC — how?

VCs are built for an equity age.

That's just a fact

We are in the nascent stages of the token age and the status quo does not have to be that VCs take all the alpha

In fact, the only thing stopping that alpha going to the crowd is the crowd’s ability to pick winners to invest in

Enter decentalized curation

If we solve the curation part and, for example, on Degen VC only launch winners then the crowd is first

We see this as inevitable

We see the DGVC LP being participated in by millions of people globally

The ERCAU Gold Paper describes 2 tokens — RAUX and RAU. Can you explain the difference?

$RAUX was issued first in order to be a governance token in time. In effect, the owners of $RAUX will be entitled to share in the earnings from ERCAU ORG, which in time will become ERCAU DAO, a completely decentralized governance organisation.

The RAU token is the gold transaction token. When a person deposits gold with an ERCAU-approved partner (all verification of partners is done on-chain) they will receive the RAU token which will have the same value of 1-ounce of gold at the time of minting.

The person can then take this RAU token, which represents their deposited gold in tokenized form, and do whatever they like with it. They can trade it, stake it, sell it (if they think gold prices are due to fall) and generally whatever else someone can do with a token.

When they send RAU (or another gold-backed token) back to the partner, plus a designated fee for the period that they deposited their gold, they will regain ownership of their physical gold. The RAU token + fee is burned when it is returned.

Rahul:

If I’m getting this correctly, in a way, this is a way to completely avoid fiat currency and directly exchange crypto for RAU and eventually gold. Is that right?

Paul:

Yes, in a sense however the way it is currently envisaged is that the RAU you get is linked to your gold…but, if you sold your RAU in the market, and don’t pay at least the deposit fee back, then that gold passes to the ownership of the partner. This is an interesting thought, however!

Tell us more about why being in the $DGVC Liquidity Pool is so important?

We love our #degenhorde and we love that we have almost 900 holders.

Critical to becoming a VC is having some skin in the game — as we know VC’s commit their own funds to projects (even if sometimes to exclude other investors).

We don’t want our #degenhorde to commit more than they are willing to through the $DGVC liquidity pool — where you pool DGVC & ETH on Uniswap — in order to receive the #alphadrops of some of the incredible projects we are curating.

A further benefit is on our Discord channel, which can be found here: https://discord.gg/pPCuyYa.

All liquidity providers are given access to co-creation channels where there are currently 3 projects being co-created with the respective dev teams, and we have a 4th to be joining there soon — an innovative multi-factor authentication technology, onchain!

The Asian market, and in particular the Indian subcontinent, has a long-standing relationship with and love for gold. How do you see adoption taking place in these markets?

Actually we would love to connect with people on the ground there to discuss this more

We want to understand what the perception of e-gold is and so on

Indian gold loans are quite competitive compared to elsewhere. Would be fascinating to see how ERCAU could disrupt things there

We have also introduced some rewards in $DGVC tokens for Partner referrals, which will definitely come when the code is nearing completion.

Stage 2: Twitter

What is the connection of Degen VC to Ercaux? How they correlate to each other? What is the relationship of the two?https://twitter.com/mylhe/status/1307921717113757698?s=19

The entity called Degen Labs is an incubator-type arm of Degen.VC. Degen Labs was created to give projects a space in which to ideate their project requirements, and get feedback from certain people on how their project could best be designed.

ERCAU is the first project that went through this process prior to launching.

Degen Labs manages a co-creation-channel on the Degen.VC Discord channel, here: https://discord.gg/pPCuyYa. In these channels our #degenhorde assist with incubation of projects and have already made some huge contributions to the 3 projects that are currently in co-creation on our Discord, and that can be seen on our website here: www.degen.vc

One of the strongest features of Degen is the Curation Market. Can you explain to us what exactly this is? What are the advantages of using this function in the new tokens?https://twitter.com/Ale_Urich/status/1307787855452930051?s=19

Degen VC is about letting millions of small investors access deals first that until now on the VCs or “whitelist elite” get

But how do we ensure that the projects being launched are as good as the ones VCs would have funded?

Our decentralized curation market will rewards contributors who assess projects and incentivise them in such a way that the best projects pass and others fail

Only when projects pass this scrutiny will they launch with our platform

What are the ways that @degen_vc generates profits/revenue to maintain your project and what is its revenue model ? How can it make benefit win-win to both invester and your project?https://twitter.com/BlipBlopBlip21/status/1307981379817238529?s=19

Our initial revenue streams are quite simple, but will develop in time:

  1. Upfront listing fees
  2. Tokens given to Degen.VC by each project as payment for our launch services
  3. Token lending fees (in future).

By far the biggest value though is #alphadrops. Everyone in the DGVC LP earns an #alphadrop each time we #alphadrop a project’s tokens to our #degenhorde.

You receive the amount of project tokens that have been #alphadropped according to your percentage holding of the LP — for example:

If a project #alphadropped 500,000 tokens (like ERCAU did), and you hold 10% of the LP, you would get 50,000 tokens, for free, purely for being a DGVC liquidity provider.

There are many tokens which claim to backed by gold, but only a few of those projects are actually backed by physical gold. What makes RAUX different from such projects?https://twitter.com/ApurveJain6/status/1307993974842388480?s=19

This is very true — we are aware of almost 80 such gold tokenization projects!!

The difference is massive — most of these other projects claim that they have tokenized a CENTRAL store of gold…but ask yourself….how many of them actually show this proof of storage (known as a safe-keeping receipt — SKR — in the industry) on-chain?

If it’s not on-chain, how do you know the SKR is real, and that the “tokenized” gold actually exists? You don’t really.

ERCAU (and $RAUX) is completely different — you are tokenizing YOUR OWN GOLD!! Your gold is yours, it is in a partner storage facility that has been verified on-chain and the RAU tokens you get are linked ONLY to your own gold. It’s revolutionary!

Your FAQ page states that the Ercau smart contract locks all competing gold tokens over time. Can you shed some light on , how you plan to achieve this?https://twitter.com/RamanSi79533850/status/1307996495275151360?s=19

This is a really interesting angle that Goldtoshi (the ERCAU proponent) has taken.

In order to create a hyper-competitive environment, it is envisaged that when the RAU and fee is returnable (according to the deposit time), if a person returns one of the other gold-backed tokens, the fee payable will be lower, and that token will be effectively “burned” — locked in a wallet with no private key, thereby removing it from circulation and placing pressure on the other token’s business model.

This way, the other token’s storage costs remain the same but that don’t have the means to pay for this since their token supply becomes limited.

Stage 3: Telegram AMA

Bruce: What role does the community play in the #DegenVC? What have you done and will do to attract people to join #DegenVC and build a thriving community?

This is an evolving story. But increasingly we open project ideas to a discord room that DGVC LP holders have access to. Honestly, the community does more work than Degen Labs currently in working things through.

Joxes: Recently Uniswap launched a mega airdrop and now many are paying attention to this exchange with great interest. How can DEGENVC improve the experience of using UNISWAP?

Rather than looking to improve on Uniswap, where we don’t really have a say, we are taking a different approach. One of our next #alphadrops is actually a super innovative decentralized exchange (DEX) called Behodler (more on our website www.degen.vc).

This DEX has the unique feature of operating on a token bonding curve methodology, which has it’s own benefits for traders. One of the specific benefits is that it has it’s own native token — an incredibly exciting and innvoative departure from what is normal in today’s DEX environment!

zoink: What’s your plans for global expansion,on building and developing or getting customers and users, or partnerships?

I posited a definition for “degen” to our tg today “a global community of early token traders” Still thinking about it but it certainly embodies our global arms open approach

αɱɓε૨: Why did DegenVC choose Uniswap as the first decentralized exchange instead of a centralized exchange?

We had already done a lot of work in our curation market v2 (on our website) with a Uniswap integration, and had got to know that environment quite well. The next largest advantage is speed — any project that wants to launch their idea, and find out if the market will place a value on it, is to create a token, design the tokenomics and then do an #alphadrop to our #degenhorde!

Samuel: What is the Staking structure of DEGEN token and how is the reward given ?

A staking solution is in the works. One of our pipeline projects is called Liquidity Mining Protocol built around staking innovation. Really there is much happening around staking so head to www.degen.vc to read more please

Bruce: Do you have any any Token Burn plans to increase the value of Token & attract Investors to invest?Can you tell me your plan?

100% of tokens are out there. And many are locked in Unicrypt. 75% of tokens were airdropped. Why burn something with so much inherent value? When you pool your DGVC you receive airdrops from new projects we launch. We call these #alphadrops. To burn DGVC would be to burn alpha. No way

Siswa R: Many investors hit and run in the sell and sell session after listing on the first exchange, How did #Degen.Vc prevent early investors from selling their tokens and what benefits would #Degen.VC give them?

There were no early investors. We gave our tokens away. The market found a price. And now our tokens are worth something. We call this a Pure Launch. And we have many more in the pipeline

I think that’s our questions done @Rektpleb

Thank you so much to your team, and community, for having us here

Yes! that was fun

It has been really rewarding!

Pleb007

Thanks to all the community members who participated in this AMA and the, Degen and Ercau team for answering our community members questions in such a detailed manner.

Great initiative for the entire blockchain ecosystem. This brings us to the end of this fantastic AMA.

Thank you, everyone! Stay safe.

Paul @ Degen.vc

Written by

Degen.vc — disrupting existing VC models

degen.vc

degen.vc

Degens replace VCs: Curation market for Uniswap listings #defi — Web www.degen.vc. Twitter @degen_vc. Uniswap https://app.uniswap.org/#/swap?inputCurrency=0x26E43759551333e57F073bb0772F50329A957b30

Paul @ Degen.vc

Written by

Degen.vc — disrupting existing VC models

degen.vc

degen.vc

Degens replace VCs: Curation market for Uniswap listings #defi — Web www.degen.vc. Twitter @degen_vc. Uniswap https://app.uniswap.org/#/swap?inputCurrency=0x26E43759551333e57F073bb0772F50329A957b30

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