HECO AMA Series Recap — Belt Finance
Guest: Joon Kee, Belt Finance Growth Lead
Host: Gabriel of HECO
Gabriel: Welcome Joon Kee and the entire Belt Finance team. Good to have you onboard today.
Joon: Hey, thanks for having me! Glad to be speaking with the HECO Chain community.
Gabriel: Good. Let us hit the ground running so we don’t take too much time and bore our members.😄
Joon: Sounds good
Gabriel: Welcome, Joon Kee. Could you tell us about yourself? What were you doing before joining at Belt Finance and why did you choose to work for Belt Finance?
Joon: Thanks again! I’m Joon Kee the Growth Lead at Ozys, the company behind Belt Finance, Orbit Chain, and KLAYswap. Before working at Ozys, I was working on an Augmented Reality startup, and before that, I was at Stanford.
I chose to work at Ozys because I find blockchain fascinating and believe DeFi is going to revolutionize the world’ financial system. Ozys is the leading blockchain company in South Korea with a history of great products and technological prowess.
Gabriel: Good and detailed introduction. Thank you:)
Questions and Answers
Gabriel: Could you tell us more about your project? In other words, what does Belt Finance do?
Joon: Belt Finance is a leading stableswap AMM protocol that incorporates multi-strategy, optimized yield vaults that started on Binance Smart Chain (BSC). We’re really excited to have launched on HECO Chain now!
Belt Finance’s stableswap AMM offers users the most efficient way to swap their stablecoins by offering significantly lower slippage than alternative swap protocols. Belt Finance is also focused on giving users the best yield through a combination of trading fee rewards and a multi-strategy optimization vault system.
Users don’t actively need to move their assets around between protocols to find the best yield, as Belt Finance vaults do it for them. This guarantees the highest reliable yield possible as it provides an amalgamation of many parts of the DeFi ecosystem.
As Belt Finance grows to include more strategies, assets, and chains, like we did with HECO Chain, this effect will continue to grow.
As I said earlier, Belt Finance was created by Ozys, a company spearheading blockchain development in South Korea, working tirelessly to create unity in the fragmented and dissociated blockchain world. Ozys’s projects utilize cutting-edge technologies to bridge different ecosystems together.
Ozys is a member of the Klaytn Governance Council alongside multinational businesses and organizations including Binance, Huobi, MakerDAO, LG Electronics, and Kakao.
Our flagship protocols include Belt Finance, Orbit Chain, and KLAYswap.
Gabriel: A good reason to have joined us. And I so much love this part.😍
Gabriel: There are many stablecoin swap protocol projects out there, some have been quite successful. What is special about Belt compared to other projects?
Joon: That’s a really great question and one that I’m happy to answer!
Belt Finance is not just a simple stableswap.
There are three main advantages that Belt.fi has over our competitors.
Firstly, there is a big difference between how we give our users base APY. A main differentiator between us and other similar projects is that we have multi-strategy yield in place for Base APR. Our base APR is a combination of this multi-strategy yield from other protocols and trading fee rewards, so it is a better, more stable base APR than alternatives.
The second difference from some other stablecoin focused projects is that the rewards Belt Finance gives on our stablecoin pool(s) do not have any lockup or vesting period. You can enjoy the yield at any time without having to wait
Thirdly, different from our competitors who are largely anonymous, we are a completely open, transparent team with a long history of DeFi and cross-chain experience. The other blockchain projects we have created have strong followings and high value that we will soon leverage to grow Belt Finance. Our experience, history, and subsequent resources to grow Belt Finance represent a unique advantage.
Also, as we have more TVL, stableswaps happen with more stability compared to alternatives, as we have more depth in each asset!
Gabriel: Great, could you give us some info on the hBELT Token? How are you innovating with Cross-chain Mining?
Joon: Sure! This is something we’re really excited about.
The BELT token on HECO Chain is hBELT. While some people are bridging BELT over from BSC to get hBELT, we are also distributing hBELT to liquidity providers on HECO Belt Finance.
Cross-chain BELT mining is a feat made possible by Orbit Chain and its cross-chain masterchef. Essentially, what we are doing here is that a portion of the total BELT token emissions is being bridged over to HECO chain for use with liquidity mining on HECO Belt.
A big innovation is that the overall BELT token metrics (circulating supply, inflation rate, etc.) remain the same but the BELT token gains a new field of play with HECO as hBELT. This adds a new avenue of yield and related buyback & burns with higher TVL to Belt Finance.
hBELT liquidity mining is distributed in the same structure to the BSC equivalent assets (BELT, BTC, ETH, and stablecoins) on HECO. You can view this as incentivizing deposits of more liquidity of that same asset (e.g. BTC) to the Belt Finance protocol, except on a different chain.
With this same logic to mining distribution, cross-chain mining of BELT (hBELT) is essentially adding the value of HECO Chain to Belt Finance.
Gabriel: What can we do with $BELT (hBELT)?
Joon: As you can see with hBELT, it’s a completely different system than other protocols that just start emitting different tokens as they expand to different chains. By using cross-chain mining, we keep our tokenomics and increase BELT token scarcity while allowing it’s usage on different chains. The value, and eventual power of each BELT token goes up as Belt Finance goes on various chains and finds success there.
As to this question, BELT (or hBELT on HECO) is Belt Finance’s governance and incentivization token and is used in the following functions:
Governance Policies: BELT (hBELT) holders will be able to vote on governance decisions including block emission rate, mining rates, fees, and burn rates when governance is launched.
Pool Incentivization: BELT holders will be able to decide how mining is distributed to different pools and vaults. Effectively deciding the rewards ratio of the whole protocol.
Liquidity Incentivization: Users can earn BELT tokens as rewards on top of multi-strategy yield when they provide liquidity on the Belt Finance platform.
Once governance is launched, BELT (hBELT) holders will control the Belt Finance protocol across different chains. This means that holding BELT (hBELT) will allow you to vote on governance decisions on HECO Chain, but also Belt Finance on BSC and the other chains we will be expanding to. As Belt expands to other chains, the value and potential of the BELT token goes up, and as I showed earlier, Belt Finance is definitely going places. 😉
Gabriel: Great, could you give us some info on the 4Belt and beltToken (like beltHT) Tokens?
Joon: So, 4Belt on HECO consists of beltTokens (beltHUSD,beltUSDC,beltDAI,beltUSDT).
beltTokens are the multiple strategy tokens that consist of beltSingleToken with beltStrategy for each protocol. We created this architecture for the scalability of the beltToken as it makes it possible to add or upgrade the strategies for better APR to users.
We aim to make 4Belt the best option to keep your stablecoin position while getting the best reliable yield possible. Understanding the basis of 4Belt and beltTokens is straightforward.
The 4Belt token represents the average of the underlying tokens (stablecoins mentioned above) + the yield from our multi-strategy yield and trading fees thus far.
This means that 1 4Belt token > 1 USD.
As more yield gets applied with the passing of more time and with more strategy protocols giving higher yield, the value of the 4Belt token will continuously increase.
beltTokens refer to the tokens (beltBTC, beltETH, beltHT, etc.) you receive upon depositing into a Belt Finance vault. They are in essence a deposit receipt of compounding vault tokens.
For example, if you deposit HT in Belt HT Vault (Belt Depositor contract) you will receive beltHT in return.
As written above, beltTokens represent the value of the underlying token (i.e. HT for beltHT) + the yield from our multi-strategy yield thus far. (this is compounded automatically every 6 hours)
As more yield gets applied with the passing of more time and with more strategy protocols giving higher yield, the value of the beltTokens will continuously increase. You also get hBELT rewards when you stake these on Belt Finance!
We are trying to make 4Belt and beltTokens independent assets that can trade and swap in other DEXs and other DeFi protocols. We will work to make it so that holding 4Belt will be a default when users want to hold stablecoins, and beltHT will be advantageous over just holding HT.
A bit wordy but I hope that cleared things up and made it easier to understand what we’re doing!
Gabriel: What is the goal with the launch of Belt Finance on HECO?
Joon: Our overall goal for Belt Finance is to provide a completely decentralized service that continually yields the highest, most reliable APR across DeFi ecosystems to our users, no matter the chain. To achieve just that, we are working on adding new strategy protocols to our vaults but are now also expanding to support other chains on Belt.fi.
Belt Finance supporting HECO will bring Belt Finance’s strengths to the HECO Ecosystem and bring many new users and new liquidity to our protocol. As we open the new vaults and connect HECO DeFi protocols, which have comparably high base APR as strategies, users of the HECO ecosystem will, and have been utilizing Belt’s efficient AMM and multi-strategy yield vaults for HECO-based tokens for the highest yield available.
We welcome these new users from HECO in joining our BSC users in benefiting from the innovation in cross-chain DeFi that is Belt, and we will continue to provide unrivaled yield on the chains we support. We are excited for the new opportunities this union of HECO and BELT will bring, and will continue to develop new innovations in the field of cross-chain DeFi!
Gabriel: What is coming in the future after this successful launch on HECO?
Joon: By providing support to a chain as large and active as HECO Chain, we expect this update to contribute to the growth of Belt Finance in significant ways, but this is only the beginning of our cross chain schedule.
We will continue to be adding support for DeFi on different mainnet chains (Polygon, Ethereum, Klaytn, etc.) whilst maintaining the scarcity of BELT tokens.
We will also add bridged asset pools and support cross-chain swaps for different chain assets through Belt’s stableswap AMM, with Belt acting as a decentralized UX bridge.
These cross-chain swaps powered by Orbit Bridge will allow fluid movements of various Belt-supported assets and data between BSC, HECO and other connected chains — an advantage over other protocols that only Ozys, the team behind Belt Finance, can provide, largely in part thanks to our expertise in cross-chain DeFi.
More than this, we plan to provide not only the best, optimized yield on various chains we support, but will also make it possible to get yield cross-chain.
This means that HECO users of Belt Finance will be able to enjoy yield from other chains!
Gabriel: Great answers. We are moving gradually to the end of this session, just 2 questions.
Gabriel: If you were to summarize your project in 1 word, what would it be? Why?
Joon: The wold I would use to describe Belt Finance is ‘stability’.
Belt is a service with which users can generate profitable yield using stablecoins. This frees its users from the fluctuations of the market. And because Belt does not offer a loan service, it is protected from risks of flash loan attacks and other attacks that prey on artificially generated fluctuations. Because Belt Finance is a service that is offered by Ozys, a trusted company with a proven track record, the users can rest easy knowing their assets are generating the most amount of profit with the minimum amount of risk.
Gabriel: Anything else you guys would like to add before we go into the live questions session?
We look forward to having HECO users on board as we go forward in our roadmap to provide not only the best, optimized yield on HECO, but also make it possible to get yield cross-chain from the various other chains we will be supporting.
An announcement about BELT token utility, use cases, and governance will be made soon so stay tuned for that!
Live Question Session
Q1: What do you think is the biggest problem BELT will solve which is not solved by other projects and why is the problem important to solve?
Jason: #1. As I mentioned above, we’re not simply just a stableswap, we offer multi-strategy yield optimizing vaults. This gives our users more stability in terms of getting yield across the DeFi landscape.
We also solve cross-chain expansion and interoperability through cross-chain mining and eventually, cross-chain yield! This is something that no other protocol of our size has done before
Q2: As crypto users we don’t want to lose our assets to some scam projects that run away and disappear with our money so why should we invest in the BELT as a long-term investment?
Jason: #2. This is definitely a point that DeFi users should be careful with. This is why the Belt Finance team is not anonymous. We have nothing to hide. Unlike other protocols, the Belt Finance Team is completely open and transparent and we have a long history with building DeFi protocols so you can rest assured that we won’t run away!
Q3: What is your strategy for attracting new users to the Belt Finance, Security/Privacy feature should be the top priority for any organization?
Jason: #3. Security of user funds is our top priority. We understand with the recent resurgence in DeFi rugpulls and attacks, many users are concerned about Belt Finance as it is new to the HECO scene. In addition to Belt not having any loan services that attackers can manipulate, we are also audited twice, and have another audit coming soon. Belt Finance and none of our services have ever faced security issues.
We plan on attracting new users by offering a better service and more platforms for them to use our service on
Q4: 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?
Jason: #4, I just partially answered this, but it’s good to emphasize our security. Belt Finance has been successful and safe so far on BSC and is one of the biggest projects there. Belt Finance contracts have been audited twice through external parties and we have another audit coming soon!
Q5: Marketing is an essential element of every project, so everyone knows the potential that a project can generate. What is your strategy to attract new users and investors and maintain it in the long term?
Jason: #5, Our marketing efforts consist of creating and offering new avenues of profit through Belt and its partners. We have new collaborations with other projects on the way, and we are always looking for better ways to maximize the yield our users receive from using Belt. The long-term goal we have for maintaining user retention would be, of course, to continuing to offer the best yield rates along with our innovations to cross-chain DeFi.