GAINS Associates
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GAINS Associates

H2O — Telegram AMA — April 29

On Friday, April 29, we had the pleasure to welcome to our Telegram chat:

Okarin, Business Lead

We asked him questions about the development of H2O.

Some sentences have been slightly edited for readability but the meaning has been conserved.


Q — Ayeley from GAINS: Please introduce yourself. What did you do before crypto and did you have any other previous venture in crypto?

A — Okarin from H2O: Hello everyone, I’m known as Okarin. In my previous life, I’ve worked on data-related projects in the public sector for several years. I have also led the implementation of data-driven initiatives such as process automation and digitalization projects for major financial institutions.

I have a strong passion for data as an asset class and for the past 5 years, I’ve been absolutely fascinated by blockchain technology and dreaming about a more important role for Data within Web3. This vision is why I decided to make H2O my full-time commitment earlier this year.

About H2O

Q — Ayeley from GAINS: What is the H2O project about in a few simple sentences?

A — Okarin from H2O: H2O aims to become the dominant medium of exchange and unit of account for data transactions, positioning itself as an integral part of the Web3 data economy.

H2O is a non-pegged and decentralized stable asset-backed by $OCEAN. Its monetary policy is mostly managed by an on-chain, autonomous control, which minimizes governance and increases security.

Poseidon (PSDN), is H2O’s governance token which allows $PSDN holders to control and change protocol parameters, shaping the structure of the project.

Our project is managed by everyone who holds the governance token $PSDN. $PSDN holders manage and ensure the stability of the protocol and will be airdropped.

Poseidon has two main functions inside the protocol:

Backstop mechanism: POSEIDON stakers are the first line of defense in case the H2O protocol goes underwater. The second line of defense is with debt auctions that mint new POSEIDON and auction it in exchange for H2O.

More details can be also found in the H2O Gitbook

Q — Ayeley from GAINS: What is the nature of the relationship you have with $OCEAN? Do $OCEAN holders for instance get some benefits for using H2O or vice versa?

A — Okarin from H2O: Basically, $H2O represents a novel use case for the Ocean Community; that of a reserve asset with the data tokens ecosystem. Creating a stable unit of account in the ecosystem will remedy volatility concerns in pricing data and also mitigate the systemic risk of pegged stablecoins at the same time. Allowing for greater market participation.

In addition, $H2O offers a new and compelling use case for OCEAN which will form the foundational bedrock providing value for the emerging Web3 Data Economy. $H2O is meant to help projects in the Ocean Ecosystem take advantage of its redemption rate as well as provide a more stable source of borrowing power.

Data is one of the biggest and fastest-growing markets on the planet, frequently drawing claims as “the new oil.” Ocean Protocol has been making huge waves recently to grow the Web3 data economy, towards a level playing field around data. Ocean is a decentralized data exchange protocol, the first of its kind built with blockchain technology. Users can freely exchange and sell valuable data tokens, all on-chain. By registering each data set as its own unique data token

Q — Twitter User @cripi_angel: H2O is ruled by Poseidon. Can you tell us if $PSDN also provides a fallback for $H2O participants in case the H2O protocol goes out of capital? What defense measures do you carry out for such cases? How do they balance ecosystem stability to ensure sustainable operations?

A — Okarin from H2O: Very good question! We’ve mentioned previously the introduction of Single side staking.

Soon after launching our staking program, we will bring about our planned goal to transform the Single Sides Vault (SSV) to serve as a backstop mechanism for black swan events.

Staked $PSDN will be auctioned off in order to fulfill redemptions and maintain protocol integrity if H2O Protocol goes underwater.

This model is identical to the $FLX and $MKR exemplified. Stakers who participate in this will be rewarded with $PSDN, as they are undertaking a crucial risk-management mechanism that helps ensure the stability of the protocol.

Q — Telegram User Coco T.: How can we participate or join the New Order DAO? Are there any requirements such as holding PSDN or H20 tokens?

A — Okarin from H2O: PSDN is the governance token for H2O and has no connection to New Order. For more info on New Order DAO

Q — Telegram User Tommy: What will be the Thawing period when we will unstake the tokens? And what Fee will be deducted for it?

A — Okarin from H2O: Only transaction fees are accounted for.

Q — Telegram User Anitax: I understand that H2O is a stable asset but it is a different concept than stablecoins. So, can you tell us about this stable asset and how it differs from a stablecoin? Can you explain the technology you use to keep this asset stable?

A — Okarin from H2O: H2O is built to become the native stable asset of the emerging data economy. As referred to in our previous roadmap description, with V2, we are looking at becoming the first data-backed stable asset on the market.


Q — Ayeley from GAINS: There’s $H2O and earlier you mentioned $PSDN. Can you tell us about the two and the roles each plays in the H2O ecosystem?

A — Okarin from H2O: The primary importance of $PSDN are the following:

- H2O is governed by everyone who holds our governance token, Poseidon ($PSDN). $PSDN holder also manages and ensures stability to the protocol. (example: The borrowing rate)

-$PSDN allows users to participate in protocol surplus auctions. Once the surplus auction has ended, the protocol burns the earned $PSDN, thereby reducing the total supply of $PSDN?.

Q — Twitter user @Lauren_vzla: The mechanics laid out in his whitepaper for Poseidon are quite interesting. Could you please share with us how the mechanisms implemented for your token work? Before the protocol is governance minimized, what will happen to the stakers or users that are part of the DAO?

A — Okarin from H2O: As we previously touched on, Poseidon has two main functions inside the protocol:

Backstop mechanism: POSEIDON stakers are the first line of defense in case the H2O protocol goes underwater. The second line of defense is with debt auctions that mint new POSEIDON and auction it in exchange for H2O.

In regards to governance minimization: The governance minimization process is rather a long-term vision. The core idea is for the protocol to be able to function in a self-sustained manner, without the need for governance or any type of intervention on a protocol level. Meanwhile, users can use $PSDN to participate in governance proposals or submit their own proposals.


Q — Ayeley from GAINS: Cool. Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?

A — Okarin from H2O: Yes, in total, we’ve raised $1,250,000 for 5% of its token supply of $PSDN governance tokens, from a number of notable angel investors, VCs, and DAOs. In harmony with the project’s sensible tokenomics, Investor tokens will be subject to a 6-month cliff (with 10% unlocked) with a linear vest over a 2-year period.

Each of the invested parties will support H2O on its path to becoming the dominant stable asset of the blossoming Web3 data economy.

The round was led by Trent McConaghy & Bruce Pon (Ocean Protocol Co-Founders), and Ocean Protocol Foundation.

The funds raised will be used primarily to cover for operational costs of the protocol, community incentives, and also for further growth of our team. In regards to having an additional raise in the future: We are not excluding additional fundraising in the future, perhaps in the form of a treasury sale. But, we can’t confirm either. ;)

Q — Telegram User Vivo X70 Pro 5G: Recently, H2O raised a 1.25M$ investment. How would H2O use it and What synergy would H2O get with those VCs and DAOs that participated in that round?.

A — Okarin from H2O: We are mainly operating in the realm of the now emerging data economy. This gives us a major advantage over other assets. Data as an asset is already an established value that carries on intrinsic value, on which we are building. In addition, the data economy is growing exponentially quickly becoming a multi-trillion industry, attracting players from all corners of the industry.

Correct, as pointed out earlier, we are mainly using the acquired funds to cover growth, protocol expenses, and team growth. When it comes to our chosen partners, we were cautious in picking the right investors and only picked those that provide us with the necessary synergies to set ourselves up for success. We want to keep that same type of mindset toward future partnerships and investors.

Business Development

Q — Ayeley from GAINS: Tell us about your product development. How far along are you with your roadmap and what should we expect in the next weeks and months?

A — Okarin from H2O: Going forward, the Ocean Protocol core team will release its much-anticipated V4 marketplace in Q2 2022. Smart contract audits are complete, and V4 is in beta with live bug bounties underway.

Then, Ocean contracts will be deployed in production to Ethereum mainnet and other EVM chains (Binance Smart Chain (BSC), Polygon, Energy Web Chain, Moonriver initially; more later). Then, Ocean Market will get H2O support added.

H2O contracts are now deployed to the Ethereum mainnet. The H2O team will bridge H2O to additional EVEM networks such as Polygon and Binance Smart Chain in Q2 ’22. cross-chain compatibility will not only expand usage of H2O and increase marketplace volumes but will help establish Ocean as the de facto standard for data marketplaces in crypto. In Q3 of 2022, the team aims to bridge H2O to additional EVM networks like EWC and Moonbeam.

H2O V2.

About H2O V2, The initial version of H2O is solely backed by OCEAN. In Q3 2022, H2O will transition to also be backed by data assets themselves. With data as perhaps “the” ultimate huge asset class, it positions H2O extremely well for long-term stability and increases its appeal beyond core data-oriented users to the broad stablecoin ecosystem. Furthermore, H2O being data-backed leads to an even tighter symbiosis and incentive alignment between the Ocean data exchange protocol and the H2O token protocol.

In Q4, the H2O team plans to add H2O pairs to Curve — the protocol with the highest-liquidity stablecoin and stable asset pools. The H2O team will add liquidity incentives via Curve and Convex through a partnership with [REDACTED] Cartel.

The Ocean Protocol core team will implement veOCEAN, employing “vote escrow” tokenomics first popularized by Curve Finance and its coveted veCRV. Vote escrow tokens help align incentives between token holders and a protocol over the long term, offering increased incentives for those most confident in the long-term success of a protocol.

As of right now; We just launched less than 2 days ago. The ability to mint $H2O and LPs is already live and today we will release our staking program for single-sided $PSDN staking and LP Staking. Also, we have an ongoing airdrop campaign for $NeWo stakers and $Ocean votes.

You may see the details for the 2nd-4th airdrops with veNEWO here

Okarin, thanks for coming into our community, and taking the time to answer our questions. Do you have any final thoughts to share with us? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS

I wanted to thank YOU (the community) for all the great support and I really hope to see you all soon at our socials! You were all lovely.

Discord | Twitter — Okarin from H2O

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

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