GAINS Associates
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GAINS Associates

YIELD.app — Telegram QUIZ & AMA — February 05

On Thursday, February 05, we had the pleasure to welcome to our Telegram chat:

Justin Wright, CFO & COO and
Jan Strandberg, Marketing Lead.

We asked them questions about the development of YIELD.app.

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

Summary

YIELD.app is a DeFi banking platform that offers the easiest ways to invest in DeFi using crypto or traditional currencies, regardless of your financial or technological level of expertise.

Users receive up to a 10% APY boost on their investment by holding YLD tokens in the app, earned in YLD. Users without YLD tokens still receive a 2% APY boost, earned in YLD.

YIELD.app has partnered with Merkle Science to prevent illicit activities like corruption and money laundering by continuously monitoring crypto activity and identifying high-risk transactions in near real-time.

Introduction

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

A — Justin Wright from YIELD.app: I have a deep background in capital markets, traditional finance, fund management, and Fintech. Now with more than 6 months under my belt in Crypto, I probably can’t claim to be new anymore based on the speed that things move.

With Yield, the learning curve has been steep and at the same time an enlightening journey so I’m very happy to be here on the cusp of our public launch (very imminent!) with your group.

Looking forward to the rest of 2021 as we start hitting our roadmap goals!

A — Jan Strandberg from YIELD.app: Being a growth hacker, digital nomad, and creative thinker, I oversee marketing for YIELD. I’m very data-driven and have extensive experience in branding, PR, and SEO. As the head of marketing at Paxful, I helped the company scale up from 50k users to more than 4.5M, and from 100k weekly revenue to over 45M. I also have many successful ventures in the gambling industry.

Happy to be one of the founders here at YIELD.app and also work with someone like Justin who has very vast experience in the traditional fintech world. 👌

Product

Q — Ayeley from GAINS: What is the project about in a few simple sentences? For how long have you been working on it?

A — Justin Wright from YIELD.app: We are demystifying DeFi for the masses, building a bridge between crypto and traditional finance that is available to all levels of users regardless of their knowledge on investments, funds, or DeFi. As for how long it’s been in development, you could say since Tim first involved himself in crypto back in 2014. For myself, back in the 90’s when I started my journey in trading, structured products, and finance. In its most recent evolution, spring last year and is now coming to fruition.

A — Jan Strandberg from YIELD.app:

Q — Ayeley from GAINS: There are a lot of projects that share the same vision of making DeFi simpler for the masses. What makes YIELD.app unique?

A — Jan Strandberg from YIELD.app: We are building a digital bank where people can securely earn interest through DeFi and bank through stablecoins. To build a mobile bank with card programs, multiple currencies supported, and global payment rails and correspondents. YIELD.app was born from a vision to provide our customers with a high-yielding deposit account coupled with safe custody of your assets! 🔒 We deliver this through a simple platform model that mirrors traditional main street and wall street-managed investment fund products.

We are building a bridge 🌉 into the Decentralized Finance (DeFi) ecosystem because we recognize that even for crypto natives, the time, cost, effort, and risk required to navigate and understand the underlying complexities inherent to this asset class can be overwhelming. We’re making it our mission to demystify this for the benefit of everyone. 🔮 At the same time want to offer normal banking services including a credit card.

A — Jan Strandberg from YIELD.app: The team is something totally different from other projects, don’t think you have so much experience in both traditional and crypto as we have at the moment

This a long-term project but so far our community has grown super-fast, hopefully will get some of you guys into our community also.

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

A — Jan Strandberg from YIELD.app: YLD is a utility token. Thanks to YLD, users can boost their APY, earn interest on their tokens, and support our ecosystem.

A — Justin Wright from YIELD.app: It allows Yield App to reward users who use the platform through the distribution of tokens. there is an allocated reserve to fulfill this program after which, the additional tokens will be acquired through public purchase based on the success of the venture to meet new demand.

Q — Telegram user Jerry Zizkov: Regulation can be rather challenging and restricting in the Centralized Finance space. How do you plan to actually cope with regulatory issues considering that you plan to launch world-wide from day 1?

A — Justin Wright from YIELD.app: We will be releasing some updates shortly on our regulatory roadmap, you are correct that regulation and licensing differ significantly across geographies, this is why several new financial technology innovations often refer to regulatory arbitrage. what they are saying is they are sincere in their approach is to identify which parts of a business can be licensed/covered by a pre-existing legislator and in which countries can be achieved, in many cases this requires several entities in different jurisdictions to provide maximum cover as the legislation catches up with the demand and the products themselves. we aim to lead from the front to help shape this where possible and as stated earlier will have some updated on this very soon as well as we move into our public launch

Q — Telegram user Lastri Septiani: Do you offer any educational courses that I can learn from?

A — Justin Wright from YIELD.app: We are big believers in education. There is a wealth of information on our website, I would suggest you start with the FAQs and then read through our blogs each of which are written by our teams covering all things crypto and DeFi in deeper analysis.

Q — Telegram user Ari 💫💫: Yield’s website has two main languages: English and Chinese. How important is the Asian crypto market to Yield?

A — Jan Strandberg from YIELD.app: We do also have France on our websites and more to follow. We do think Asia is very important for us and we already established a very good community there. Hope to get more communities on board.

Team

Q — Ayeley from GAINS: Can you share some more details on the team? How many people have been working on the project?

A — Justin Wright from YIELD.app: We have 36 full-time staff now and more joining soon, this includes developers, fund managers, marketing gurus, cybersecurity specialists, compliance and admin managers, and more.

Everyone is working round the clock, we’re spread globally and all pointing in the same direction

Partners

Q — Twitter user @y1sus_afp: YIELD.app and Merkle Science have partnered to improve transparency in DeFi. How will Merkle Science allow YIELD to prevent illicit activities such as corruption or money laundering through your platform? How secure will these protocols be?

A — Justin Wright from YIELD.app: Merkle is one of many partners both now and going forward that shares both our own visions and a wider belief that an orderly, efficient and transparent market will serve DeFi positively in the long run. As more central banks issue their own CDCs and we see wider adoption of crypto project owners and builders will likely have to choose between fully regulated or fully decentralized. At Yield, we are aiming to build trust through a CeFi on DeFi approach whereby the benefits of the financial innovation being created right now can be passed back to users in a simple, safe, and easy to use application.

Finance

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

A — Justin Wright from YIELD.app: It’s a big project with big ambitions. We closed off $4.8m in the seed and public rounds, another $300k through a convertible note with BnkToTheFuture UK, who have also funded some great projects such as Wirex (another one of Tim’s companies)and Kracken. We have no immediate plans but are always in conversations with supportive strategic partners.

Q — Telegram user KYL To Da Moon: How are you able to guarantee us 10% APY +50% of any additional profits, and on what assets are these profits and APY guaranteed. Is it all the assets that are integrated on your platform or some and are we paid these profits in kind or the YLD token?

A — Jan Strandberg from YIELD.app: We see DeFi as a sustainable industry built on solid fundamentals. We see 10% as sustainable long term and we can securely offer above this. In the first instance and within the current macro climate, we can generate Alpha through economies of scale. By aggregating capital and employing technology solutions to complement the portfolio team, YIELD is in a position to profit from trading strategies that are not available to individual or market participants with insufficient capital reserves.

Examples of this may include priority access to protocol testnets and in turn as a primary liquidity provider to new protocols in mainnet.

YIELD’s portfolio allocations are diversified across multiple strategies and trading opportunities; these can include automated funding rate arbitrage and asset disposals through our proprietary portfolio management system that can identify the highest yielding market opportunities and process these through YIELD’s internal risk analysis algorithms to generate instantaneous execution and transaction requests for digital approval (multi-sig) by our portfolio managers.

Outside of execution methodologies and tools, YIELD believes that DeFi as a nascent asset class is only at the starting point of a multi-year growth trajectory. As with any new financial market innovation, inefficiencies will inevitably be present; this is particularly amplified in the context of cryptocurrencies and the P2P nature of decentralized finance.

To that effect, it can be considered that the ‘Risk-Adjusted Rate of Return’, the trade-off between risk and expected returns, or the risk premium that an investor demands for investment participation in decentralized financial instruments, will naturally be measured against other mature income-generating financial instruments. We are seeing this today through the outsized returns (>1,000% APY) that can be achieved using complex liquidity mining strategies and re-hypothecation techniques.

We believe that our 10% APY will be sustainable in the long run due to these reasons, notwithstanding the inherent risk premium ascribed to cryptocurrency assets against a backdrop of perpetually low-interest rates since the global financial crises, central bank fiscal loosening policies before and during the COVID-19 pandemic, and the dearth of high Income, low-risk alternative assets classes available to non-sophisticated investors.

The minimum APY offered to YIELD users is nonetheless subject to change at the discretion of management and will be reviewed in line with broader market attributes and prevailing underlying benchmarks.

Security

Q — Twitter user @MesutGunerri: Smart contracts are vulnerable to bugs, and even recently three big new DeFi projects were victims of this, costing users’ funds. How efficient and secured is your smart contract, and did you ever audit it via any external party?

A — Justin Wright from YIELD.app: When considering hacking, this can fall into two main categories. It could be at an organizational level, i.e. the technology and data infrastructure, or at a structural level in the DeFi pools and smart contracts themselves.

We have a large team of leading cybersecurity professionals and developers along with leading smart contract auditors as partners and advisors including Zokyo. We interact with many different parties, each of whom is vetted including their contracts, several audits, who performed them, their anonymity as just some of the preconditions before even considering adding a new strategy to our sandbox and in time our platform available funds.

Other frauds are often perpetrated by individuals, normally as a result of opportunities created by deficiencies in management, business processes, and organizational controls which is why we as an enterprise employ rigorous business processes, compliance audits, and oversight of all functions and people within the organization.

Business Development

Q — Ayeley from GAINS: November to now is just about 3 months, but it seems like a long time. What stage is the project at?

A — Justin Wright from YIELD.app: We’re about to go fully public/live.

A — Jan Strandberg from YIELD.app: We have our public launch this month and we already have acquired more than 13k on the waiting list for the app. We have around 2k users already in early access and almost over 35% of the whole token circulation now in the app.

Q — Twitter user @NguyenQ32225128: The Yield App is still not available on the Android or iOS platforms. When will it be released?

A — Justin Wright from YIELD.app: The mobile app is in development now, we plan to have both live by the end of Q1.

Jan and Justin, it was a pleasure having you join our community today. You’ve come a long way and we are rooting for you as you head into the product launch. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley from GAINS

Thanks to everyone here, I really enjoyed it and glad to be back as we head into public launch. Thanks for your support — Justin Wright from YIELD.app

Please do not forget to follow our social media accounts for more updates regarding our products: Reddit, Telegram, Twitter, and Facebook. — Jan Strandberg from YIELD.app

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

If you want to email us: contact@gains-associates.com.

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GAINS Associates provides you with the latest news and research in blockchain and crypto. It’s a community for everyone to learn and grow together.

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