Hakka Finance AMA Recap: April 2022
Last Friday, we just had our 4th AMA (Ask Me Anything) this year and it was attended by over 80+ people on Discord!
Here is the summary of the questions that were tackled during the discussion:
1. Why do you need to hedge interest?
Compared to the traditional finance standards, the interest rate in DeFi is not fixed; it’s fluctuating depending on market conditions, and you can take advantage of that on iGain IRS by buying Long or Short tokens.
If you believe the interest rate will go up, you buy long. Otherwise, buy short.
For instance, let’s say you deposit your money with 5% APY. That APY % in the DeFi world is fluctuating, so it could be 1% today, and 6% tomorrow. To maximize your profit and get a more predictable return, you can buy a Short token so every time the interest rate goes down lower than 5%, you will still earn much because it is hedged.
Same concept with the borrowing. There are 2 borrow interest ratesin Aave: variable and stable. Variable, from the name itself, is not fixed, so your 3% interest could be 10% the next, and again, it depends on the market condition. You do not want that to happen because when you are repaying a loan, you want a predictable rate so you can budget your payment. The stable interest of Aave on the other hand, is much, much higher (x3) than the variable. It is fixed, but it is so high, and it is not free from market fluctuations as well given an extreme situation (prone to rebalance).
2. Are you going to have more new products? And also new plans for farming?
Yes we do! In the short term we are making iGain IRS available on more platforms. For now it is connected to Aave, soon it will be available on Yearn too.
Regarding new products, we have mentioned in our Roadmap CryptoStructuredFund, as well as another one whose name is Dyson Finance (the name is not final) which should come in Q3. And of course, we’ve got big plans to massively expand the scope of iGain beyond interest rates and impermanent loss.
So the Hakka Family is growing slowly but surely!
And concerning farming pools, we always have active ones on our website, they are available here. You can farm $HAKKA with your voting power (sHAKKA), or from iGain IRS LP tokens.
3. Now that security issues are becoming more and more prominent, do you have any ways to improve your security performance?
As Hakka Finance is focusing on decentralized finance, security is of utmost importance for us for the credibility of our protocol. So our smart contracts are publicly audited and we have a bug bounty program in partnership with immunefi where you can earn up to US$1,000,000by finding code bugs or vulnerabilities!
4. I heard that the maximum bug bounty is $1,000,000. How much was the largest bounty you have ever had?
No bounty yet! So feel free to try!
5. Hakka Finance has a strong image in China, but do you have any plans to attract new users from around the world?
We are expanding our marketing team to reach out to new markets in new languages to write the future of DeFi.
6. What is your latest fundraising news?
We can’t disclose that at the moment!
7. Are you still planning to expand your marketing efforts despite deteriorating crypto market conditions?
Our marketing efforts do not depend on market conditions. We keep building products enabling people to reach financial sovereignty regardless of external events.
8. What are the project’s greatest strengths? Conversely, if there is an area in which you do not excel, please tell us about it along with its solution.
Our greatest strength is that unlike other protocols, we do not rely on a single DeFi product. Areas of improvements would definitely encompass topics like marketing, mostly due to a lack of resources, and we are working on that. By the way, we are hiring social media managers so feel free to apply!
9.1 I see on Aave that there is also lending and borrowing with fixed interest rates. What is the advantage of iGain IRS?
Rates on Aave are not “fixed”, they are stable. When you want to manage a portfolio in finance, you need to allocate a portion in assets with truly fixed income to hedge risk. And iGain IRS allows that for lenders and borrowers. Also, if you are a trader, another advantage is that when interest rates fluctuates, you can turn this danger in an opportunity by longing or shorting it, like any other derivative.
9.2 Do you have plans to ask advisors to promote the product to users?
9.3 What is your marketing plan when launching products on Yearn?
Can’t disclose it yet.
10.1. Any updates on polygon staking and will vesting be different (to potentially limit claiming/taxable events)? Do you think it could be beneficial to restake for a shorter term (say 3 months) and then restake on Polygon (with less fees and hopefully much less claiming) or should I just suck it up and restake for 12 months and continue with the current governance/vesting structure?
Our team is working on the new staking system right now! However the vesting terms will remain the same. What we can suggest is to stake for one month if you are fine with gas fees on ethereum mainnet. By then, we should be able to have our new staking system with Polygon!
10.2. Any thoughts about incorporating Hakka NFTs into the governance model? Could help to try and spur more active community participation as opposed to the mostly passive community we and most other DAOs are struggling with these days. Could increase sHAKKA governance tokens for NFT holders?
We have a plan for that, it’s a surprise that we will share to you in the coming months! So keep collecting those OATs!
11. Does the team have a plan to develop a DeFi product that aims to secure users’ transaction information like Zcash and Tornado Cash?
We definitely have eyes on ZK technology, but our priorities and resources are currently directed on other projects.
12. I saw in an AMA before that you guys talked about the name of the project (Hakka) and its real mission. So what’s your next step to make that mission a reality?
We keep building, building and building, and getting more engagement in the Polygon ecosystem, with an AMA at the end of the month, and probably a lecture to their developer community!
13. Can you explain more about staking/farming?
14. What are your thoughts on the Japanese market?
We have a couple of users from Japan, but no specific focus on that market.
15. How will the OAT NFT be utilized in the Hakka ecosystem?
This is something we can’t disclose yet, but it will carry some utility in the next few months!