Freeway Internal AMA Transcript — Tuesday, 8th February 2022
All information included below is subject to the legal disclaimer at the bottom of this page.
Freeway Telegram Channel
Tuesday, 8th February 2022
7:00 PM UTC
Join Freeway’s Official Telegram Community Channel at: https://t.me/AuBit_Official_Community
Once a week, Freeway holds an internal AMA in the Freeway Telegram channel that gives the community a chance to ask direct questions with core team members.
This week, Founder and Co-CEO Graham Doggart hosted the AMA.
“Freeway is a project designed to bring traditional and new financial worlds together by using digital finance tech to generate greater total returns on the world’s top investment products and bring new access routes to financial markets for everyone while we do it.” ~ Graham Doggart
*** AMA Begins ***
Q1. “Hi, Graham.
Will there be an option to use dollar-cost averaging in the future?
I.e., $100 a week to coins or stables, or even currency or gold.
This would work like a savings account, so it would not be a burden on the pocket.
For example, transfer $100 a week from the nominated bank to AuBit, and use them as 50% BTC, 25% Eth, and 25% Dot.
A lot of members of this community think that it should be all in, but dollar-cost averaging is also a good way in.”
Yes, this is something we will look to bring as a second part of our fiat on-ramps. Similarly, we will look to cater for those looking for regular off-ramping.
Q2. “How far off are we from the audit report?”
We are waiting on a few things, the full raw trading data dump, a high-level annotation (which we have done based on the deposits and final balances), getting signed off by a regular firm, and then a deep dive trading audit by a specialist firm. We are also waiting on legal as to what/how we can disclose.
I am hopeful we will have legal ok to share at least something in the next week.
The high-level sign-off will be quicker than the deep dive
A day’s trading can take up to 5,000 pages, so it is not a small job.
Obviously, the specialist firms have a process that cuts through the impossible task of auditing every trade, but the specialist firm has suggested the deep dive could take 8–12 weeks for a full job, and perhaps 4–6 for a fast-tracked one.
Q3. “Hi, Graham, when will the 20–50% reward model kick in? Can’t wait to earn more than 20% APY on my ETH!”
This is a full coordination point across legal, tech and marketing to ensure, as it goes live, that everything is congruent. I should have an accurate timeline next week.
Q4. “Will you ever share with us monthly or quarterly balance sheets? So how much profit was made from trading.
Do the bulk of your profits come from trading or also from other products?”
I don’t think it is wise to bring that level of transparency to the project, to be honest. We will of course be presenting our profits but offering monthly data is a double-edged sword, it is great as we expand fast, but if it slows down or has a bad week as a result of an anomaly we don’t want it to cause unnecessary volatility.
At the moment, the majority of our revenues are from trading, yes.
Q5. “May I ask for the current GRAM?
Also, may I ask how it’s distributed among the Superchargers?”
So, we have 11,605 total users, 9,636 Freeway Lite, 1,969 Freeway Lite US. And 2,142 active users are supercharging a little over $66m.
USD 61.8%, BTC 22.0%, ETH 9.1%, BNB 0.3%, Euro 4.9%, ADA, 1.00%, Gold 0.3%, DOT 0.6%
Q6. “If you had to pie chart the company resource allocation, could you provide a general % breakdown of where the company is allocating resources currently and for the remainder of 2022? I would like to get an idea of progress based on input (resources) and output (UI, automation, etc.)”
Regulatory and tech developments are front and centre. There are some really cool things we are working on which have not been announced properly yet too, but again it generally comes under these two.
There is a big push on HR to get more and more key resources on the team too.
Next week I expect we will provide a bit more of a mini roadmap to give everyone an idea of what we are working on priority-wise.
Q7. “Congrats to the team on the phenomenal growth. My biggest hurdle personally in depositing more funds on the platform and recommending to friends and family is the lack of a polished UI, full automation, and concrete and finalised rewards structure and tokenomics. I know there are a lot of puzzle pieces to put together, but could you give us a clear vision of the remainder of 2022 and 2023, and what the final product is expected to look like?
- Daily rewards earned notification (there is something satisfying about knowing how much you earned yesterday)
- Small bonus deposit rewards occasionally to incentivise deposits (similar to Celsius or Nexo)
- Clear NFT tokenomics/benefits
The final product will be a slick minimalist experience with as seamless a transition between services as possible.
We have various options planned, deposit rewards from AuBit Prime, Superchargers from Freeway Lite and a couple of others, all built into a single app UI.
I would like to see all this available this year, but it will probably move into early 2023.
Good recommendations, have tagged @spangard @kyrcon @hk47user so they are aware.
Q8. “Hi, Graham. Phenomenal work from all of you as always.
Just a question regarding the long term future of Freeway. Is there, or will there be, a Freeway Constitution clearly establishing the goals and vision of you and Sadie and the team?
Unforeseen circumstances happen, so is #accessforall and mutualism hardcoded into Freeway’s structure in case, for some reason, you were unable to lead the charge?
Also, when Freeway IPO’s in the future what safeguards will there be that a bigger company couldn’t engage in a hostile takeover and absorb Freeway and the dream?”
Most certainly, the ethos of the project will be set. We will have some entrenched bylaws in there to prevent some huge issue with someone trying to take it over and change the mutualisation and social finance aspects.
I firmly believe that the users will be the owners of the project, the more you use it the more sense it makes for you to own a proportionate amount.
Q9. “What happens if you and Sadie pass away tomorrow. Is that the end of Freeway and its vision?
If I wanted to try and convince you of joining Freeway and you knew nothing about it, what are the things you would ask and check for to know if it’s not a Ponzi or scam? Especially if you were gonna add a large sum. Would you want to see the regulation, audits and so forth?”
We have an amazing team of over 50 people now and an amazing community I believe would take the baton if it was really needed. Would Freeway get to where we envision it without us? Hopefully. But if not I can still see it getting a long way there and I believe that, eventually, the pure alignment of social finance and mutualisation will find the right leadership to keep it going.
I would say that Freeway in its current state is certainly not for everyone, and one of our big jobs is to keep making it easier and easier for everyone to come and use Freeway.
Conservative people will want to have every possible protection, especially as we unapologetically continue to provide the rewards at the levels stated.
Others are willing to get in there and see for themselves.
One thing for sure is that no one should do anything that they are wary of.
Q10. “Evening, GBP Supercharger update?”
Not yet, sorry. The tech team is maxed on this current phase and will get to new products after.
Q11. “I currently have 3 referrals that have purchased Supercharger products. Two-part question:
1. Am I accruing referral rewards now for them?
2. If so, when and where would we be able to track how many rewards we are earning from them?”
Yes everyone is banking their rewards, we have given out over $2.5m in rewards so there are $250k of referral rewards plus some compounding on top.
I do not know exactly when the referral system will go live, it is being very actively worked on right now.
When I have a timeline I will share.
Q12. “Good questions. Also, do they receive 2.5% on something when they sign up?”
We are finalising the exact benefits but yes, if you are referred you get slightly more than if you have not been referred, or if you chose not to use your friend’s referral link.
Q13. “Hi, Graham.
1 — Little suggestion regarding CEX listing. It might be good to ask Jeff Kirdeikis if he can put AuBit on the express line for listing at Gate.io. They have a partnership with them where they list all new launchpads projects for a while. Not a tier 1 but would help gain a bit of exposure?
2 — Any plan to integrate Polygon for deposit withdrawal?
Thanks very much for the suggestion! Yes, as above on the GBP Supercharger, the tech team are flat out so polygon integration will be taken up after this running phase.
Q14. “Hello, Graham.
Whenever Freeway onboards an institution or a treasury, how do these entities get hold of their FWT tokens? Is Freeway providing them through an OTC mechanism or do they buy them themselves on the market?”
As you all know, the utility for FWT in the Supercharger staking with Freeway Lite or the upcoming Deposit Rewards from AuBit Prime is changing.
20% will be the base reward rate.
Up to 10% more will be available based on the withdrawal notice period (2.5% for 3 days, 5% for 7 days, 7.5% for 15 days and 10% for 30 days) and, instead of FWT activating the rewards up to full activation at 20% of the value of Superchargers in Freeway Lite and deposits in AuBit Prime, if you have over 5% FWT staked in your account as compared to your Supercharger staking or deposits you will see an extra 10% in rewards, essentially doubling the value in rewards from your Superchargers/deposits every year as compared to selling FWT on the market.
There is also an activity score piece coming which can take those rewards all the way to 50%
So for a number of new depositors, we have lent FWT from our reserves in a short grace period until the new utility goes live across Freeway Lite and AuBit Prime.
This gives them a chance to see the platform in action and most of them have already picked up sufficient FWT for the 5% anyway.
Of course, more funds coming is good for the project, and after all the team are here to make the project a success, not pump the price of FWT.
When I have the timeline, which I hope is within 4–6 weeks, this grace period will end and users will move to the base rates if they do not have the right things in place.
We have put this grace period in for all users by the way. Everyone is seeing max rewards in their Superchargers right now.
We are working to time the transition with FWT staking rewards.
This is a good win for all users, those with FWT and nothing else get staking rewards when they didn’t before.
Users with FWT and Superchargers get more.
And those that do not want to take a large holding in FWT but want to deposit a lot and contribute to the ecosystem get to do so, and if they do not tap into the highest reward rates it is assisting in increasing the FWT staker rewards pools anyway.
Q15. “Hi, Graham, what can you tell us about some of the recent institutions Freeway has onboarded? Size, industry, years of operation?”
Nothing yet. A very well regarded hedge fund manager with strong connections to some of the biggest institutions in the world just became a 7-figure fam member today though, I mainly met with institutions on my recent trip too. They take a lot longer but come in a lot harder.
Mostly we are of interest to hedge funds that have seen prop trading returns of a similar nature but appreciate the profile of deposits being protected. I think we will see more conservative institutions come in a bit later on in the cycle once they have seen more of a track record from us.
Q16. “Dilemma: I have found myself constantly having to add FWT to keep my deposits fully supercharged. At the same time, I know that in the near future we will only need 5% of holdings in FWT as opposed to the current 20%. If the transition is expected to take a while, is there an interim solution AuBit can provide? Seems like this negatively affects holders like myself, since if we either have to add more FWT in the interim knowing we won’t need it in the near future, or we have to accept reduced Supercharger activations for an unknown interim transition period. Thanks.”
Yes see above, there is a grace period while we get the new utility in place.
Q17. “Hi, Graham, when can we expect to see the brokerage side live with the 20–50% reward model?”
There will be a similar roadmap to Freeway Lite and Freeway Lite US, private-only beta, invite-only, then fully open.
I do not have an exact timeline on it, but I know larger clients are expected to be able to onboard in an institutional manner very soon indeed. After all, this is how AuBit International has done it, directly onboarding to Ardu Prime (now with the AuBit Prime trading name) as soon as it had the crypto custody and trade execution regulation.
Q18. “Hi, Graham!
Sadie mentioned last Friday that 10 million was added in 1 week. Freeway also has had a steady increase in AUM for weeks now. My question is why didn’t the price move at all? Did people only buy Superchargers and stake for 20% without buying FWT? Thank you.”
See above. There is a grace period while we get the new FWT utility in place.
Q19. “Hi, Graham, Can we get an update on how many FWT are now staked on the Freeway platform?”
There is a lot of movement on this ahead of the FWT staking rewards.
We expect to be over 4bn staked in the coming weeks.
We are a little under 3bn now.
Q20. “Adding to @michaeldronkers question, can you please provide insight into Freeway’s strategy for market-buying FWT?”
We can’t overly comment on it for obvious reasons, but we have no intention of leaving it in the market for speculators.
Freeway is envisioned as a fully mutualised system in the end. It will do that through FWT and Freeway Equity being available to its users. The users should proportionately hold FWT and FWE to their level of use of the ecosystem for the best possible results.
Q21. “Hey Graham, I’m curious about the day-to-day life you go through working on Freeway. Could you give a brief overview of the types of things you do on a daily basis? I’m sure you delegate quite a bit to others, but I’m curious about the tasks you work on.”
A lot of my day is taken up with the larger Supercharger staking and deposit reward prospects at the moment as well as working to solve the various innovative pieces combining tech, legal, regulatory and social finance philosophy. So there are several meetings with the team, prospective partners, and the longer-term roadmap items while the rest of the team focus on getting the near phase stuff out the door.
I also deal directly with the traders on a daily basis, and the compliance team helps us put this all together.
Q22. “Is the trading audit ready?”
See above on the latest. I hope to have something to share this week, just depends on actually receiving it and having legal ok to share it.
Q23. “What’s the average age of the trading team? No need to answer this question in case it’s too personal.”
Q24. “I have asked this in the last 2 AMA’s and still waiting for a reply. So I thought I will ask this in the live chat.
1> Could you tell us how many $ worth FWT tokens have been sold from website/OTC directly to US and non-US users from Jan 2022?
2> How many $ worth tokens have you guys bought back from market/exchanges from Jan 2022?”
I still don’t have the specifics, but we are a net buyer of FWT this year by at least 20m FWT.
Q25. “When BINANCE sir? How much more time do we need?
Q26. “I understand the focus to bring on larger accounts, but can the team please share the weekly platform FWT purchases?”
I am still waiting on it myself, but I worked out yesterday that we have been a net buyer of FWT this year by more than 20m.
Q27. “Will there be an official tokenomics paper with technical details released? I would love to be able to run some numbers to figure out potentials for myself.”
Yes, we are trying our best to get it done this week, but probably next, and we will get Daryn on one of these AMAs to talk where only he understands it.
Q28. “To the untrained eye, at the moment it appears that the use for FWT is reducing, which is concerning. Could you please put my mind at ease?”
The utility is increasing. It goes further than before. Please do not speculate on FWT, use it. In 4–6 weeks, hopefully, with the change in utility, you just need to stake FWT for benefits, you don’t even need to take advantage of Superchargers.
And there is a layer one chain coming for FWT that will blow your mind.
Q29. “Guys, my rewards were 2% this morning, now they are 1.64%. Is anybody able to tell me why this may have dropped?”
There were some bugs in the reward reindexes the last couple of days, most of which have been sorted. So it should all be good tonight or tomorrow morning.
Q30. “What can we expect in the new UI which is expected to be completed by March? Can you share some features which are getting added?”
It’s more of an overhaul and reskin for now. We are working hard to streamline each activity a user does, and to make the onboarding and withdrawal processes much sleeker.
Q31. “For resource allocation, you mentioned tech regulatory development. Could you be more specific and maybe provide some examples?
You mentioned early 2023 as the likely launch of the Full Fat Freeway. Will there be interim iterations released with some of the anticipated improvements?
“So for a number of new depositors, we have lent FWT from our reserves in a short grace period until the new utility goes live across Freeway Lite and AuBit Prime.” I find this frustrating to hear. I have been consistently purchasing more FWT to supercharge my deposits, knowing that I will soon not need them, but not knowing how long this transition period will last. While I appreciate the concession, which makes sense, it would have been helpful to advise everyone so they can plan accordingly. Just my two cents.
To recap/confirm, if I’ve understood correctly, all users are have been getting full Supercharger rewards using the existing 20–43% APYs, and the new system is expected to go live in 4–6 weeks, at which point FWT loans will no longer apply and users will need the 5%+ FWT for full activation?”
It is important to see “Freeway” as the Freeway Ecosystem. There are numerous entities, partners and agents in the ecosystem. Some of the entities are not regulated, some are regulated, or will be, or are or will be registered or licensed.
For a clear-cut example: Freeway Lite provides Supercharger Staking Simulants, they are not regulated. While AuBit Prime is about to start offering Deposit Rewards, AuBit Prime is a regulated crypto custodian and trade execution service provider, as well as regulated for FX and Prime Brokerage lending.
We have similar stuff going on for Freeway Bank, additional brokerages, crypto exchange, etc. There is a lot of work going on behind the scenes to perfectly marry everything together while maintaining full compliance in the regulated entities. One of those compliance points is ensuring there is no confusion for users as to which entities are providing which services, which are regulated, which are not, and so on.
On top of that, we have the integrations of the different service providers and platforms into a seamless user experience, and eventually, a single App UI. There is a lot going on to get that right.
Yes, there will be lots of iterations until Full Fat is achieved.
I understand the general sentiment on the grace period. It is a tricky thing transitioning to improved tokenomics. The tokenomics we had before were mathematically perfect, but in practice only catered for outliers: those that had FWT and large major holdings. We have really gone to town on the tokenomics in time with Freeway Chain tokenomics so that every single user type is cared for. Those holding a lot of FWT and not much else, those holding a lot of majors but without risk appetite for a volatile new microcap, and those in the middle. Everyone is better off with the new system. We have only offered it in the last 4 weeks or so as we have exploded in interest and it was better to get everyone on board and ready to spread the word than let cycles stagnate. After all, the project doesn’t run on thin air, and we don’t pump our token price to dump more on the market. We have been net buyers of FWT for months and months.
Yes, all users will require the 5% FWT to get the max rewards as soon as that utility goes live.
*** End of AMA ***
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