GAINS Associates
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GAINS Associates

Nord Finance — Telegram QUIZ & AMA — February 10

On Thursday, February 10, we had the pleasure to welcome to our Telegram chat:

Amarnath Reddy, CEO & Co-Founder.

We asked him questions about the development of Nord Finance.

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

Summary

Nord Finance is a blockchain agnostic platform that integrates multi-chain interoperability, proposing a plethora of financial primitives, which constitute savings, advisory, loans against assets, investment/funds management, and swaps.

Users can either mine $NORD token via their liquidity mining program or purchase $NORD in later stages via centralized and decentralized exchanges. Its primary utilities include voting, staking, and employing yield farming strategies across different DeFi platforms.

With Nord.Loans, DeFi users can leverage their crypto assets to their greatest potential by pledging them in smart contracts to avail loans for unanticipated circumstances. The process to avail of an instant over-collateralized loan is hassle-free.

Introduction

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

A — Amarnath Reddy from Nord Finance: Before entering crypto, I was an electrical engineer by profession in the Middle East Oil and Gas Industry. I have been in crypto since the end of 2017, the exact last bull run. I was fascinated by the technology and volatility of the industry, we then co-founded Amesten Asset (crypto hedge fund) taking care of operations and Research analyst for early-stage blockchain startups.

After leaving Amesten in September 2020, I co-founded Nord Finance along with Jignesh Vasoya who is the Lead Developer at Tezos India Foundation. He also worked on financial platforms with Ethereum & Hyperledger Fabric. Jignesh and I have known each other for quite some time and we have been exploring the DeFi space for quite some time, we then came up with the idea of founding Nord Finance.

Q — Ayeley from GAINS: Interesting path from engineering to crypto. Was the transition easy?

A — Amarnath Reddy from Nord Finance: It’s never easy. It took some time and effort but now I am pleased to be in this industry!

Product

Q — Ayeley from GAINS: What is the project about in a few simple sentences? What existing problem is the project trying to solve? And what sets it apart from other existing companies that claim to do the same thing?

A — Amarnath Reddy from Nord Finance: Nord finance is an advanced decentralized financial ecosystem designed to simplify DeFi investing by bringing key features of traditional finance to the DeFi ecosystem. We want to be an investment banking firm in DeFi.

At Nord Finance, we wanted to build a user-centric one-stop solution for all financial needs. What motivates us to build our product portfolio very strong. We keep the users and interface at the highest priority.

Key Products of Nord Finance are:

  • Nord.Savings: Earn the highest risk-adjusted APYs across chains
  • Nord.Advisory: Risk profile based Robo Advisory
  • Nord.Loans: Overdraft crypto loans/loans against portfolio
  • Nord.Swap: Multi-chain asset swap facility for DeFi users

Q — Ayeley from GAINS: What is the token use case and how does it capture the value of the ecosystem you’re building?

A — Amarnath Reddy from Nord Finance: $NORD token has various utilities in the Nord Finance financial ecosystems:

  • Liquidity Mining: For the Nord Finance ecosystem to function properly, users would need to be incentivized to play the role of liquidity providers and stake their digital assets into the market-making pools. As compensation for opportunity costs as well as impermanent losses, these liquidity providers which help to promote adoption of the Nord Finance ecosystem by staking or including assets to liquidity pools would be rewarded with $NORD tokens (i.e. liquidity “mining” programs on the Nord Finance ecosystem), according to each user’s relative contribution after various adjustment and correction parameters.
  • Incentivizing programs: Users can earn $NORD token incentives by participating in the platform, for example, trading/exchanging, or the development of new strategies for the vault.
  • Distributing Fee Rewards: To stimulate participation in the platform, the $NORD token will be distributed as reward to users for various contests and community giveaways.
  • Community governance incentives: The $NORD token holders will earnestly participate in the protocol’s governance by voting on various proposals regarding product upgrades. Users will be required to stake their $NORD tokens in the staking program to participate in governance and vote on proposals, and as a reward, they will be able to earn additional $NORD tokens proportionate to their contributions.
  • Service fees: For the services rendered a small fee/profit share would be charged by the protocol in $NORD. These fees will be retained in the protocol treasury.
  • Cross Chain Settlement: Using the $NORD token as the base platform currency, $NORD will expedite digital asset swaps between compatible blockchain seamlessly.

Q — Twitter user Chapito: How possible it really is to achieve zero gas fees. Can you explain the methods or ways that Nord Finance is using to achieve zero gas fees?

A — Amarnath Reddy from Nord Finance: What we are trying to do is to optimize the fees of users by pooling the liquidity. Also for users to onboard onto our platform we are integrating a solution where users don’t need to worry about ETH balance for paying the gas fee and at the same time contract will automatically adjust gas fees in final APYs. So it’s an effective zero transaction fee on the user while onboarding. You can read more about it here.

Q — Twitter user Jerry Zizkov: Nord Advisory has a product called robo-advisory, which is designed to offer customized investment solutions for customers. How accurate are the readings of this robo-advisor, how fast is its processing of data, and when will it be available?

A — Amarnath Reddy from Nord Finance: Nord’s robo-advisory service designed to bring customized strategies for users to hold better positions based on their financial goals. The automated robo service analyzes the user profile and evaluates personalized solutions that will help accomplish the users’ financial goals by employing a diversified portfolio.

Risk profile based on their risk required, risk tolerance, and risk capacity to accomplish the user’s financial goals

By saying this, I have to agree with you that the customized strategies have to be backtested and make sure that user assets go to safe and secure investments according to their risk appetite. As this involves lots of internal testing and we have chosen our roadmap to late 2021 so that we have enough time to test these strategies and will have guarded the launch of these services to make sure we learn over time and implement changes if any accordingly.

Q — Twitter user The Raccoon: One of the main products from Nord Finance is Nord Saving, but after reading your website, Nord Saving has a similar function with local government Bank. What are the advantages that Nord Saving gives to users better than a normal bank outside there?

A — Amarnath Reddy from Nord Finance: We are representing our savings protocol similar to bank savings products as we are taking the only USD-based stable coins and investing in risk-adjusted yield strategies!

The Nord Savings Module is an automated tool designed to identify the best stable-coin-based yield-farming strategies across blockchains. The module tracks prices, pool-wise liquidity, current & historical pool APY trends, and assigns a risk score to each strategy in real-time. Post which, the module allocates capital based on pool-wise risk-scores to deliver the highest APY while following the community-identified risk strategies as guard-rails. Find out more here.

Q — Twitter user Rekt Capital: Some quite many users want to learn how Nord Finance asset loans work, what are these loans based on and what requirements must we meet to use them?

A — Amarnath Reddy from Nord Finance: DeFi users can leverage their crypto investments to their greatest potential by pledging them in smart contracts to avail loans for unanticipated circumstances. The process to avail of an instant over-collateralized loan is quite uncluttered and hassle-free. This is a smart alternative to borrowing loans without liquidating the crypto assets to meet financial obligations. It also offers a personal overdraft facility with the benefit of paying interest while withdrawing the amount.

Q — Twitter user Amina Peter: You said $NORD token holders will participate in the protocol's governance by voting on various proposals. Aren’t you giving room for whale manipulation in your platform? And what about the sensitive areas of the projects like choosing lending platforms, advisory contracts, or overdraft matters, who will be in control of these aspects? If it is the community, how do we ensure successful governance?

A — Amarnath Reddy from Nord Finance: Nord Finance's recent upgrades and launch strategies will navigate under the centralized authority of the protocol. Since the protocol is yet in its nascent stages, the centralized control will assist in driving initial decisions ideal for the protocol’s growth. These will primarily include exercising major decisions such as selecting lending platforms, deploying advisory contracts, deciding on the integration of overdraft facilities, and other initial decisions to drive the protocol’s success.

However, gradually as things fall righteously, Nord Finance’s governance will be transferred completely to the community and stakeholder control. Certainly, the future of Nord Finance lies in absolute decentralization.

Team

Q — Ayeley from GAINS: For how long have you been working on Nord Finance? And how many people are on the team?

A — Amarnath Reddy from Nord Finance: We have been working on savings protocol V1 since last October. We do have 5 developers working under our CTO Jignesh, experience with blockchain, solidity programming, and smart-contract writing and security are the main focus in choosing. We also have 1 CMO and under him a marketing and PR team. We do have few advisors onboard. We will revamp our website soon which will reflect on all details. More details about the team can be found on our website.

Partners

Q — Twitter user @Capt__Boeing: Nord Finance partnered with Orion protocol, Zokyo, and Unilend. What values would these partnerships add to all the projects involved? Are we to look forward to further Partnerships?

A — Amarnath Reddy from Nord Finance: While forging strategic collaborations, Nord Finance has been relentlessly working on the technological front to drive the integration with strategic partners to reality. The recent collaborations have helped Nord Finance gear up its journey towards simplifying DeFi with promising ecosystem partners.

As we trail back on our journey so far, these are some of our collaborations that have immensely contributed to the growth of our platform.

  • Orion Protocol: Whilst synergizing with Orion Protocol, the partnership enabled opportunities for both ecosystems to grow alongside the other synergistically. The partnership witnessed a deep integration amassing several products of Orion Protocol into the Nord ecosystem, constituting Orion Liquidity Pool, Orion Lending, Orion Oracle, Orion Wallet Swap SDK, and Orion Liquidity Boost Plugin. Read more
  • Frontier: This partnership synergized Nord Finance’s ecosystem into Frontier Wallet’s mobile aggregation feature. The partnership enabled Nord Savings to access the Frontier mobile interface, thus driving evolution in the decentralized financial space. Read more
  • Zokyo: The partnership of Nord Finance with the leading blockchain security firm, Zokyo, reinforced the security posture in the decentralized space. Under the purview of this collaboration, Zokyo will perform a comprehensive security audit for the launch of Nord Finance’s product selection. Read more
  • Unilend: The permissionless DeFi protocol, Unilend’s integration into Nord Finance’s ecosystem aims to create a seamless user experience. The integration of Unilend in Nord Advisory’s portion was instrumental in solidifying the technological stack. Whereas the partnership also witnessed an integration into Nord’s customized robo-advisory services. Read more

We are closely working to bring more valuable partnerships in the coming weeks!

Q — Twitter user @CryptoMatvey: High gas fees on the Ethereum network do not allow participation in DeFi. Is Nord Finance planning to integrate with other blockchains that have an edge over the Ethereum network to give the user more options?

A — Amarnath Reddy from Nord Finance: Nord.Finance also pools liquidity from multiple users. As more users adopt Nord.Finance, the smart contract achieves economies of scale. Thus, achieving near-zero gas fees compared to the gas fees paid by traditional yield-farmers. Find out more here.

At the same time, as gas fees on Ethereum are getting out of hand for retailers, we are looking for L2 and Low Tx fee Blockchains to be onboarded on to us which will happen with Savings V2.

Finance

Q — Ayeley from GAINS: You successfully closed a public sale on Polkastarter, one of the top IDO platforms in crypto at the moment. How have you handled the funds raised? Are you planning to do any future raises?

A — Amarnath Reddy from Nord Finance: We have raised around $1.3m from seed, PVT, and IDO which will be used for product development and other expenses for the next couple of years. We have our treasury available and may look for further fundraising if required

Q — Ayeley from GAINS: For anyone who wants to get some $NORD, where are you listed?

A — Amarnath Reddy from Nord Finance: We are listed on

⚡️Bitmax
⚡️Uniswap
⚡️Bilaxy exchange
⚡️Gate exchange
⚡️Hoo Exchange
⚡️Paraswap

You can find more here as well.

Security

Q — Twitter user @NguyenQ32225128: We all know DeFi is a brilliant addition to crypto, but security breaches in the past have raised eyebrows. How do you plan to strengthen security given that you are into DeFi?

A — Amarnath Reddy from Nord Finance: The Nord Finance team is always on a hunt to join forces that could bring out the best in the decentralized space. Today, we undertake a crucial strategic partnership with Zokyo’s Blockchain Security team, a well-respected and well-renowned team of white-hat hackers, cryptographers, security researchers, and blockchain engineers. Forging ahead, Nord Finance will have its entire product portfolio audited by Zokyo in a long-term strategic security move. Find out more here.

Business Development

Q — Ayeley from GAINS: What stage is your project at? And what should your community expect in the coming months?

A — Amarnath Reddy from Nord Finance: Nord Savings V1 on Ethereum is planned to be launched in a couple of days, followed by our Liquidity Mining Program and applying stable coin yield farming strategies. Savings V2 is planned in Q1 2021 which will be extended to other blockchains such as the Binance Chain, Matic, Tezos, and Polkadot. Then we have a road map to launch swaps, loans and advisory, etc.

NORD FINANCE ROADMAP

Q1 2021:

  • Protocol Audit (Final stage)
  • Nord savings launch V1
  • Nord savings launch V2
  • Staking program (SP1)

Q2 2021:

  • Nord swap launch V1
  • Nord loan launch V1
  • Staking program (SP2)

Q3 2021:

  • Nord advisory launch V1
  • $Nord Collateral program (CP1)

Thanks for the detailed answers Amarnath. It was a pleasure having you join our community today. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley from GAINS

I think I am done here, hope I answered most of the questions. If not, please feel free to come to our community and get it clarified. Thank you all! Join our channels on Telegram Community, Telegram Announcement channel, Twitter and Medium. — Amarnath Reddy from Nord Finance

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