AMA: Sypool Protocol x GTA Ventures
On October 9th, Jackson — Co Founder from Sypool Protocol with GTA Ventures hosted an AMA live session at GTA Trading Community.
Sypool is a synthetic asset management protocol.This is another innovation that Sypool have migrated finance from off-chain to on-chain. This idea was inspired by both off-chain fund companies and packaged asset derivatives.
Part 1: Introduction
1. Could you please introduce yourself and tell us more about Sypool Protocol?
Hello everyone, I’m Jackson, co founder of Sypool.
I’m also the founder of quantum technologies, which manages more than $300 million of quantitative funds.
Sypool is an asset management protocol on Solana, where investors exchange our fund shares with their tokens (i.e. BTC, ETH, SOL…).
Like traditional funds, investors are offered professional financial services, while fund managers have a platform to raise money (tokens).
However, our fund managers not only have traditional ways (Buy low, Sell high) to earn yield for our investors, they have more “blockchain” ways to benefit fund share holders.
This is another innovation that we have migrated finance from off-chain to on-chain. This idea was inspired by both off-chain fund companies and packaged asset derivatives.
In some aspects, Sypool is more than a blockchain fund, because our fund shares are also a kind of token. Therefore, they can do almost everything other tokens can do.
You can consider it as a fund share, or you can consider it as a token pool asset, as well as other new uses that may appear in the future.
2. What is the vision and mission of Sypool Protocol?
For now, Sypool is only an asset management protocol, providing professional financial service to users as well as managing their wealth.
But we want to make it bigger, we want to build a comprehensive DeFi protocol. There will be eco projects developed around Sypool. At that time, SYP will not only be the token of Sypool, but the token of our ecosystem.
Part 2: Pre- ordered questions:
1. Each project has interesting stories before it was created. So can you tell people the story that gave you the motivation to build and develop a great project like this? And what is the significance of this project?
Before we started this project, I founded a quantitative fund company, focusing on quantitative trading crypto assets on CEX. This background might be the biggest difference that separated us from other teams.
Then we had an idea: What about setting up fund pools on chain?
Later on, our technical team joined us helping on the development of protocol. With their rich experience in the software engineering industry, we are able to bring some of our existing products on chain.
And since we have good relationships with many other professional trading teams, we would invite them to bring their best products on our platform.
The highlight of our protocol is Quant SAP, we might be the first protocol to bring quantitative trading on chain.
2. Sypool Protocol has 2 tokens, Governance Token (SYP) + Each Pool’s Share Token (SAP). Why are you using 2 tokens on the same platform? How do they support each other? Also, can use SYP to mint SAP, how does this minting process work? Does SAP’s value depend on SYP?
Our governance token, SYP is used for voting, farming, minting SAP, trading and salaries & rewards.
It’s the fundamental of our whole system and it’s necessary because all the value this protocol created would finally be united in SYP.
SAP is actually tokenized fund share. It represents a certain amount of ownership of a pool of tokens. And it reflects the market value of the pool, not SYP.
So basically it works like a mutual fund.
And it’s tradable, which means trading pairs would be created and SAP holders have other strategies to earn by providing liquidity.
About minting, in the early stage, only USDC will be accepted to mint SAP, then SYP and other tokens such as SOL. The minting process is like buying a fund in a traditional market.
3. Staking” is one of the strategies to attract users and hold them long term. Does your great project have any plans about Staking?
Yea. We are now talking to some audit companies. Once our codes get audited, our own staking function will be live.
For now, staking is available on Ascendex, Est. Apy is 100%.
You can also add liquidity on Raydium and Orca, we have a double dip pool on Orca to stake lp tokens created on Orca.
On raydium, you can earn transaction fees. https://raydium.io/pools/ search syp in permissionless pools.
On orca, you can earn both Orca and syp. https://www.orca.so/pools
Here is the step.
4. What are the ways that generate profits/revenue to maintain your project and what is its revenue model? How can it make a benefit win-win to both the investor and your project?
During the process of minting SAP, a small fee would be charged as management fee. That’s the main revenue of our peoject. And for some SAPs, we require a performance fee.
Fees will be used to buy back SYP from the market and burn SYP. That will be healthy to the token price.
5. What is your roadmap for 2022? What are notable milestones we should look forward to in 2022?
We are now talking to more projects about collaboration and more dexes & cexes about listing.
As for the project, we are talking to some audit companies to get our code audited. Then, our own staking will be live.
Before mainnet launch, we will test functions such as new manager application, community governance and dashboard with ETH or BTC standard.
At 2022 Q1, mainnet will be launched!
After that, we will focus on developing our eco systems. Derivatives and NFT with financial elements are in our plan. At that time, our pools will not be mutual funds only. It could also be vaults, lending, stable assets, NFT pools, VCs, market makers…
But we only need to make sure everything is at the right pace, step by step, and work out an ecosystem that benefits everyone who has skin in the game.
Part 3: Live Questions
1. What’s your main focus right now, are you focused on the community or market/Exchange or the products?
We are now focusing on develping our project. Marketing is the second. We want to attract investors via our high-quality. Also we are talking to many projects about collaboration. In the future, we want to build our own eco system, so partners and codes are very essential.
2. Almost 80% investors have just focused on price of token in short term instead of understanding the real value of the project. Can you tell us on motivations and benefits for investors to hold your token in long term?
It’s totally understandable that many investors want to earn quick money. But we have seen many long term investors with great profits. They believe their long term rewards are worth the wait.
As for SYP holders, we couldn’t guarantee that everyone would benefit from it, but we can say that Sypool will not remain an asset management protocol.
We want to build a comprehensive DeFi protocol. Since we haven’t planned to issue new tokens, SYP would be a governance token for the whole Sypool ecosystem
3. Where can I buy your tokens now, what are your current contracts and how can I buy them and what are the benefits?
You can buy syp on both dex and cex. For now, you can stake on ascendex, add liquidity on raydium and orca, double dip lp tokens on orca.
4. As a new project in the market, what is your competitive advantages? As an investor, why would we trust to invest? What are the ways to earn in your platform?
The highlight of our protocol is Quant SAP, we might be the first to bring quantitative trading on chain.
Trust is based on security. So in the early stage, we would only invite professional traders or institutions to be our SAP managers, considering that they have a better risk control system.
Meanwhile, each pool will be audited strictly to prevent managers from misconduct. If a manager operates improperly, he will receive a warning. Once more, he will be moved out of the whitelist and his pool will be closed.
Besides, we are planning to set up an insurance treasury to protect investors from managers’ misconduct and hacker attack.
You can earn by staking SYP, staking lp tokens. Also, SAP is like a fund, you can mint it and earn the profit of asset pools backed SAP.
5. Staking, NFT is very hottest, do you think you will apply NFT technology to your products in the achieved future?
Of course. NFT and metaverse are the hot spot now. We are planning to make a combination. On Sep, we launched an interesting NFT product, NFT PLUS on DeFine. Owners can redeem the NFT to buy SYP at $0.04. All NFTs were sold out in one second!
In the future, we plan to design NFT with some financial elements. And our pool will not only be a mutual fund but also a pool with some NFT.
Also we are planning to reward managers or community members some NFT with special utilities in the future.