Lithium Finance Telegram AMA With CryptoKudasaiJP Recap 31 Aug 2021
This AMA was held by CryptoKudasaiJP, our Co-founder David Lighton directly greeted the community and provided detailed information on Lithium Finance as well as some key products and future plans.
Time: 12:00 PM (UTC) on Tuesday, August 31th , 2021
Airdrop 500 USDT for the best questions in the AMA.
Below are some main points of this AMA:
Question for Part 1- Pre-collected questions from CryptoKudasaiJP:
Question 1: Would you mind introducing yourself, telling us about your background and the team working on Lithium?
David: Hi everyone, I’m David, I’d like to use this opportunity to talk about my fellow co-founder, Steve Derezinski. Steve is a Senior Executive and MIT Blockchain Engineer & MBA, who has launched 80+ startups that have cumulatively raised over $250M to date. Steve and I share the same ethos, that bringing real-world assets into the world of decentralized finance — offering financial services with no intermediaries or guarantors — is the final frontier of crypto.
However, this vision of decentralized trust can’t be realized without the right pricing oracle. Why would I buy private stock, if I don’t have a good idea of what it is worth? The market still hasn’t seen a pricing mechanism that’s able to price illiquid real-world assets effectively. This is the problem that brought us together.
On my own background, I am also the Founder and CEO of SendFriend, a FinTech startup using the blockchain to create faster, less expensive, and more inclusive international money transfers for immigrants in the US. Prior to founding SendFriend, I served as Special Assistant on the Haiti Desk in the World Bank following the devastating earthquake of 2010, and co-authored the Haiti National Financial Inclusion Strategy, a Central Bank-sponsored initiative to increase consumer account penetration from 25% to 50% of adults. I hold an MBA from MIT — Sloan School of Management and an M.A. and B.A. with honors from Johns Hopkins University.
Question 2: Did your team build technologies or protocols that are specific to this project? Or are there any notable technologies the team is applying?
David: Lithium Finance is an on-chain pricing oracle that fills one of the most important missing links between real-world asset investment and DeFi. The protocol leverages collective intelligence to price real-world assets, especially assets that are hard to value, such as pre-IPO stocks, private equity, and other illiquid assets.
There are two major stakeholders in the Lithium system: Wisdom Nodes (Hashed became a Wisdom Nodes under our eco-system; and Wisdom Seekers (Currently we have InJective Protocal, Beyond Finance, and Credifi Finance to become a Wisdom Seekers). Those seeking answers to questions about the price of an asset will use LITH tokens — Lithium’s native token — to provide a bounty, and those with expertise in delivering answers will stake LITH to signal confidence in their answers. This method of finding the dominant truth by asking subject questions is known as the Determinant-based Mutual Information mechanism or DMI-Mechanism.
Question 3: Can you tell us more about your competitive advantage?
David: Lithium is the first collective-intelligence pricing oracle to give precise and timely pricing on private, illiquid assets. We strongly believe that the traditional financial sector can be improved enormously through the tools of DeFi and cryptocurrency. As the DeFi space and the traditional finance world converge, the needs and expectations of having real-world assets in the DeFi space are also growing simultaneously. Pricing these assets in a decentralized manner is an inevitable process of bridging the two worlds together. Although existing oracles can bring pricing information to DeFi, most of these protocols cannot provide the information promptly. None of them are specialized in private and hard-to-value assets. With all that in mind, Lithium Finance — a new type of pricing oracle that uses collective intelligence to price the unpriced — could be the key to open the door and bring real-world assets into the DeFi space.
Lithium is to create a bridge between defi and traditional financial services and functions that opens doors for millions of users. We want to have top investors and institutional advisors as clients as well as the kinds of retail investors who made waves on social media. Lithium is a community of coexistence.
Question 4: Is it possible to use lithium to set a fair price for NFTs, which are booming right now?
David: We will be testing our technology in a beta (roadmap forthcoming) soon. Among the top sector uses cases for our tests are crypto projects and NFTs. We are very excited to bring some more “liquidity of data” to the exciting NFT market. How amazing it is to see this new market taking shape; there is so much excitement around NFTs; however, it’s unfortunate that there is no good pricing data 🙂
Many more people would enter the market if we had decent pricing data !!!
Question 5: Can you briefly share Lithium’s top milestones, upcoming target milestones and roadmap?
David: We successfully completed our dual IEO and IDO on Kucoin and Polkstarter respectively early this month. Thank you so much for all of your support. Currently we have a lot of updates on partnership. In terms of Wisdom Node, Hashed is the first one to join our ecosystem. For wisdom seekers, Credifi Finance, Beyond Finance, Finminty Finance and, InJective Protocol also joined us recently. And I can definitely tell you that more and more partnerships will be announced. Stay tuned.
David: We also announced Pantera today! As a wisdom node!
Question 6: What obstacles has your project encountered so far? How did the team resolve them?
David: Well….Currently data oracles do not provide regular updated pricing for private companies. In fact, the only way to price an illiquid asset is through an expensive and slow valuation process. This limits the pricing to only very highly valued assets.
For example, even an existing investor in SpaceX won’t know the latest valuation and transaction price. Current price discovery is impossible — brokers and investors have no incentive to disclose the latest price of private companies. Decentralization can remove the “trusted” intermediaries of the financial world, creating more efficiency, transparency, and better pricing for everyone.
Lithium harnesses the wisdom of the crowd to quickly create a dominant truth. Experts (Wisdom Nodes) answer a series of questions about pricing of upcoming private stock sales and stake tokens to signal confidence levels in their answers. The more they stake, the more they stand to win.
Question 7: Can you give an overview of your Tokenomics and the utility of $LITH?
Blockchain Network: ETH
Token Supply: 10,000,000,000
Project Valuation: Lithium Finance is uniquely positioned to capitalize on a distinctive point of convergence between blockchain, distributed wisdom and the economic & technical engine needed to pull the worlds of traditional finance and DeFi together, enabling tremendous growth and innovation at the interface.
Platform Raise: $7.6M
Listing Price: 0.006
You can find the tokenomics and other informations in this article. https://medium.com/lithiumfinance/lithium-finance-ido-launching-on-polkastarter-on-august-5th-dcf11a51023f
Question 8: Will the smart contracts be open-sourced?
David: LITH smart contracts will be open sourced, but answers will be kept private. You can read more about our approach to privacy in the litepaper: https://lith.finance/Lithium_Finance_Litepaper.pdf . While we will ensure privacy of answers to minimize malicious manipulation of the protocol, rewards will be made transparent and can be viewed on etherscan.
Question 9: What is your marketing strategy? How do you intend to attract your first users?
David: The team is focused on a business development-driven approach whereby we partner with leading venture investors, institutional investors, asset managers, and other professional, whether as individuals (personally), or through a corporate partnership. These key wisdom nodes and seekers represent the foundation of our network and we will nurture these relationships over time. Nodes in particular have a strong opportunity to earn tokens for giving good answers, and their reputations will be built over time. Key wisdom nodes already include #Hashed. We will be announcing others in the coming days and weeks. Other organic contributors will come from the tight relationships we have with our community. In the longer term we want a nice balance of professional individuals, institutions, and retail investors all contributing to the wisdom seeking and wisdom nodes functions on the platform.
Question 10: There have been many incidents of hacks recently. How are you handling security?
David: As an Ethereum-based project, we leverage many of the same security features as other ethereum-based projects. The specifics of our IT security program are less interesting, however, than the ways in which we keep the actual quality of the data on Lithium secure. We are constantly asked questions about how we will protect against individuals trying to manipulate our algorithms, who will either ask fraudulent questions or provide fraudulent answers. We want to make it very clear from the outset that we recognize the risks associated with creating incentives for our users, and that they may try to free-ride off the system. Luckily, part of the value of the DMI mechanism’s peer prediction capabilities, is that it is not difficult for us to weed out bad answers, or even bad questions, which are outside of the standard deviation of good answers. Based on the learning capabilities of our protocol and the sophistication of the game theory that will be embedded in the protocol’s logic, we believe we can overcome fraudulent and malicious actors on the platform, just through the protocol’s learning alone. Another tool we have in our backpockets is that of disincentives. For example, if we deem certain actors to be malicious or fraudulent, we can dock their tokens. We can actually take away value that they have invested in the platform as punishment for bad behavior. We believe that, so long as we address the risks of the protocol itself behaving out of line with Lithium’s values, we can manage risks to the integrity of our dataset.
Question 11: Who are your current investors?
David: The past few months have been an exciting journey for the team at Lithium Finance. From protocol design to fundraising, pre-IDO, IDO, IEO, and marketing, we won’t be able to be where we are today without the enormous support of all our investors. They have been backing Lithium not just financially but also in many other aspects. Our team has boarded several additional investors and raised an extra $2.6 million from them to ramp up our product rollout. That’s on top of the $5 million that we raised during the seed round co-led by Pantera and Hashed. Also We have onboarded FBG Capital, Coin98 Ventures, Shima Capital, PetRock Capital, Vessel Capital, Soul Capital, Gate.io, DuckDAO, AU21 Capital, ZBS Capital, Divergence Ventures, Autonomy Capital, Astronaut Capital, Ellipti, GAINS Associates, and more. You can find more information in our article here: https://medium.com/lithiumfinance/lithium-finance-takes-on-additional-investors-total-raise-reached-7-6m-878ef4f73bb7
Question 12: Do you have any news/updates about Lithium that you would like to share with us?
David: the big update is that Pantera will join us as a wisdom node 🙂
David: we can only have so many updates per day 😉
David: have to save some for the future !!!
Question 1: Virtually all of the listed chain protocols use publicly available pricing information. Lithium is generating prices that are not available in the chain and most are not available anywhere, pricing the ones that are priceless. This is what sets lithium apart from other chain protocols. But what is the source from which lithium drives prices? How do you guarantee to encourage the best responses from all sources?
ほとんどすべての上場チェーンプロトコルは、公開的に利用可能な価格情報を使用します。 リチウムはチェーンでは手に入らない価格を生み出し、ほとんどはどこでも手に入らない価格を設定しています。 これがリチウムを他のチェーンプロトコルと区別するものです。 しかし、リチウムが価格を上昇させる源泉は何だろうか。 あなたはどのようにしてすべての情報源から最高の反応を引き出すことを保証しますか？
David: we are a first party data provider. We have proprietary methodology to crowdsource pricing, based on the “wisdom of crowds”. Please have a look at our litepaper for details @ lith.finance 🙂
Question 2: 最もオンチェーンにしたい非流動性資産は何ですか？
What illiquid assets would you most like to have on-chain?
Why is that?
This can be a personal opinion or one that is often discussed in teams.
David: Great question. We’d like to see much more of the world of mainstream commerce and financial services come on chain and believe that this will happen. Please take a second to ponder this. Whether banks adopt blockchain technology for asset registry purposes or whether DeFi goes mainstream (more likely some combination of the two), we will see more assets registered on chain, and it will promote not only the liquidity and tradeability of those assets but also liquidity of their data.
If i had to pick a particular asset, i’d like to see more real estate traded on chain, but that is much less important than the global idea that a lot more commerce will take place on the blockchain in the future.
Remember, blockchain is the global asset rail of the future. Everything will be on chain . . .
Question 3: Do you take account for community feedback and requirements when building your project?
How important is the community to a lithium financial project?
David: Roman, i spend a lot of my time with the community! Please join our official telegram chat and you can join in the fun. We LOVE our community and we spend a lot of time getting to know them, talking about their concerns, talking about their excitement for announcements. No FUDders though. We have thrown out a few people for being trolls 😉
Question 4: I think the name comes from a lithium battery. Why did you choose this name?
David: Lithium is a rare precious element that is a major input to doing things a new way, like electric vehicles are a “new way”. We want Lithium to be the same rare element that is an input in changing the way we do business 🙂
Question 5: When you started the project, did you ever think you would achieve this success?
David: haha nice question.
Listen, most of our success so far is thanks to our great community. So please join our official telegram! We want to stay in touch with everyone here!
Host: Lastly, is there anything you would like to tell the Japanese community?
David: Just that we really appreciate your support!
David: We hope to stay in touch with you on our telegram chat!
David: We really are passionate about building community.
David: Part of my role at Lithium is to oversee the environment we’re creating so i just want to close by reiterating that if you join our community, we will be in touch, we will have fun, we will make announcements, and we have a lot to look forward to! THANK YOU EVERYBODY!!!
About Lithium Finance
Lithium Finance is the first collective-intelligence pricing oracle to give precise and timely pricing on private, illiquid assets. It rewards analysts who provide truthful information and punish those who offer false pricing data. As a result, Lithium’s users will get the pricing for all hard-to-value assets such as pre-IPO stocks, private equity, and other illiquid assets effectively.