GAINS Associates
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GAINS Associates

Spice — Telegram AMA — February 25

On Thursday, February 25, we had the pleasure to welcome to our Telegram chat:

Rick Mortensen, BD Partnerships, and
Lucky Picard, Finance Product.

We asked them questions about the development of SPICE.

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

Summary

SPICE is a governance token that gives governance control over $SCIFI, the Galactic Council, and the Galactic Treasury to holders of the $SPICE token. SPICE will always be represented in $SCIFI with a fixed allocation of 2.5%.

SCIFI is an asset-backed token made of a basket of one-to-one collateralized ERC20 assets, giving investors exposure to an expert-curated, diversified basket of digital assets. SCIFI can be minted or redeemed for the set of underlying tokens. $SCIFI is the first index of this kind.

The Galactic Council is a group of experts and Key Opinion Leaders (KOLs) that have deep knowledge and experience in the Cryptosphere. The Galactic Council supports Mission Control for the $SCIFI mission.

GBI is the second index fund launched by the SPICE DAO. It gives investors exposure to the most trusted digital assets in the space and covers the most relevant sectors of the DeFi and crypto value stack.

Introduction

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

A — Rick from SPICE: My background is in venture building and finance. I got in touch with Bitcoin in 2014 for the first time. Went in full-time in early 2016/2017. Know how it looks in a bull and bear market. Full believer in decentralization and its impact on a broader scale.

A — Lucky from SPICE: I come from a land of numbers and suits, and am more than happy to be on a journey to democratize Finance and the DeFi space with SPICE.

About SPICE: SCIFI and GBI

Q — Ayeley Commodore-M from GAINS: What is the project about in a few simple sentences and how does the crypto community benefit from its existence?

A — Rick from SPICE: Sure, we built SPICE DAO and its products, $SCIFI and $GBI as we believe indices can bring the same value to DeFi they brought to traditional finance.

An index gives the investor exposure to a basket of assets based on the selection of a knowledgeable individual and/ or following a strategy/ methodology.

The difference between SPICE DAO and BlackRock and its ETFs is that:

-Product is decentralized
-Its owned and governed by the SPICED DAO holders
-Charges no fees

And a bunch of other cool things… ;-)

Q — Ayeley Commodore-M from GAINS: The last time we had you join us for an AMA you spoke only about SCIFI. Can you explain the recent addition of the GBI index token?

A — Lucky from SPICE: Sure, GBI is a more traditional blue-chip index, think of it as the S&P 500 for cryptos. In particular with the recent gas prices, we found it crucial to develop a door for the normal/retail investor to participate in the broader, diversified crypto market with one token, giving exposure to the major projects, we have BTC, UNI, LINK, ETH; YFI; COMP, MAKER, and SPICE in there.

Q — Ayeley Commodore-M from GAINS: Are there any incentives for getting involved with GBI other than price exposure to blue-chip assets?

A — Lucky from SPICE: Yes, besides the diversification angle and exposure, a well-managed non-custodial crypto basket is giving security vs. e.g. CEX indices, and SPICE as a governance token included to make an inclusive and beneficial token for the community, where they can have a say in the continuous management and the long-term reward of the index. So we think GBI should really be part of every well-balanced crypto portfolio.

Q — Ayeley Commodore-M from GAINS: SCIFI Finance has a Galactic Council. Does the council also have a say in the projects in the GBI index?

A — Rick from SPICE: The Galactic Council is a group of industry experts. We are very grateful to have the expertise of people such as Gains Associates, Scott Melker, The Crypto Dog, That Martini Guy to name just a few. They provide invaluable industry insights and shape SCIFI and SPICE DAO.

SPICE DAO is designed to issue a broad set of exiting products some of them require more active management than others and hence the incision of the Galactic Council. With GBI we expect to have a fairly stable asset selection over time.

For everybody who wants to learn more about the Galactic Council can recommend having a look at this.

Q — Twitter user @cryptoenr1que: How much power does SPICE DAO have over the SCIFI Finance platform? Through governance, will users be able to influence only economic decisions or also more aspects and areas of your project?

A — Rick from SPICE: It is a journey to arrive at a complete DAO. It is very hard to have all decisions made by the community from day one. It is a tradeoff between speed and inclusion in the early days. We are extremely excited, that we were able though only a few months into going live to have major parts of the governance decided by the DAO. This includes changes in the methodology of the indices, the composition as well as reward structures from the treasury distributed to liquidity providers.

We will broaden as fast as possible the scope of decisions being taken by the entire SPICE holder base. This requires active members. Luckily we have them and I want to expectedly invite you to participate. The best place to start is the discord where there are a dedicated DAO channel and a channel for early suggestions/ brainstorming that leads to formal DAO proposals.

Q — Twitter user @EgorCypto: What is the advantage of an index approach to investing over a portfolio approach if we take into account the bullish and bearish trend?

A — Lucky from SPICE: A broader portfolio approach still leaves you in the driver’s seat to constantly check and manage your portfolio. This can be hard and very time-consuming. If you compare this to a passive/ETF style index approach that found its success in the mass market already and killed the portfolio approach we think in this instance there is a lot to learn, but also to gain from indices, as seen by the ca. 4x performance of $SCIFI since inception.

So indices are in our view one of the key drivers for DeFi and the more money from traditional markets flows into the crypto space, the more demand for these solutions that really foster a decentralized angle will be sought, and core tech and index selection and maintenance can become a core value driver.

Q — Telegram user $ Matvey: Some projects offer to rebalance the investment portfolio. Why is an investment in an index token more attractive in terms of profitability and savings in time and gas costs?

A — Lucky from SPICE: Just think of holding and managing 15 different ERC_20 tokens, but also keeping up with the pace of the market. We think traditional ETFs have shown that a passive, low-cost approach is in the mid to long term far superior to any actively managed portfolio, so join us on our journey to make DeFi more accessible and transparent.

Q — Telegram user Keng N: Can you share your personal opinion on Yield Farming and also Briefly explain your Liquidity Mining Program?

A — Rick from SPICE: Sure, we believe liquidity mining is a great tool to ensure that buying/ selling can be done by a community providing the necessary liquidity. We have created incentives and also broadened the eligible assets and DEXs. At the same time, we ensured that inflation is limited to decrease additional supply. You can find more info here.

Partnerships

Q — Telegram user Deleted Account: Can you tell us more about the latest updates to SCIFI Finance? Also, the new partnerships that will lead you to success?

A — Lucky from SPICE: We just launched the latest $GBI blue-chip indices, check out on our website, but also in particular stay tunes on our Discord. As for partnerships we are further fostering our ecosystem, from more DEX, influencers, and potentially also CEXes to come to spread the word and reach, as well as AUMs for SPICE and our indices.

Security

Q — Telegram user Gita Darmaya: various small or big coding mistakes can destroy the entire assets of LP. How will you and your team solve this problem? Has your smart contract been audited by the blockchain system?

A — Rick from SPICE: We developed a very solid code base that is putting best industry practices at work. A code review is essential. You can find a link here.

Business Development

Q — Twitter user @rizkikori21: What strategy will you implement to bring non-crypto-natives into your ecosystem? How do you keep a balance between developing the technology and also improving the value of your token?

A — Lucky from SPICE: Crypto is experiencing a mass-market moment of awakening — and we are here, in particular, to cater to the more mass-market driven investor that holds ETFs and potential for the first time interacts with MetaMask (pain on the gas aside). So we are really trying to create a solution that makes it easy, comfortable but also safe, using all of DeFi’s power in smart contracts, to invest into the crypto space and participate from it. As for the ongoing process, I think the core value of our sophisticated and further to be developed technology is, in the end, that the normal user does not have to interact with it to get exposure (just buy one token), but the more sophisticated user can help to maintain and grow the ecosystem, and take a part in it (e.g. with SPICE and arbitrage on AMM pools).

It was a pleasure having you in our group today. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley Commodore-M from GAINS

If you want to learn more and join us on the journey check out Discord and Twitter- Rick from SPICE

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

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