NAOS in-house AMA Recap

NAOS Finance
NAOS Finance — Official Publications
5 min readMay 21, 2021

We want to thank those who joined our Discord AMA last week; we truly enjoyed the chat and continued engagement! For those who were unable to join, we’ve summarized the key takeaways below. Thank you all for your questions and thoughts, and we would like to extend an extra thanks to @bonswaggle for moderating for some of the community members!

As discussed in the AMA, we want to rebrand the “Discord AMA” to the “NAOS Fireside Chat”, with the English chat being hosted on the 16th of every month, and the Chinese chat being hosted on the 17th of every month on Discord. With the rebranding, it is our hope and goal to have a regular opportunity to personally engage and interact with our community, and answer your questions. We hope to see more of you, our community members, in our next NAOS Fireside Chat!


On the Coinbase Ventures Investment

One of the first questions was on our recent announcement of onboarding Coinbase Ventures as an investor, and we’re glad the community shares our excitement there. Please rest assured that the team has chosen each and every investor strategically to maximize the long-term value for all stakeholders!

In taking a deeper dive into NAOS’ investor base, just to name a few, you will find:

  • DeFi Alliance, the largest DeFi accelerator with mentors such as Robert Leshner (Compound), Kain Warwick (Synthetix), Stani Kulechov (Aave)
  • Capital, the investment arm of, one of the fastest growing crypto apps and exchanges with a unique crypto-based credit card product
  • Mechanism Capital, a top-tier DeFi investment fund lead by Andrew Kang
  • Maven 11 Capital, a leading European crypto fund with a vast portfolio network and fintech resources

Collectively, our investors are backing industry leading projects such as Compound, Aave, Synthetix, Notional, Securitize, Matic, PoolTogether, Uniswap, Yearn Finance, Zapper, dydx, the Graph, FTX, Algorand and Covalent. We are humbled to have this incredible support from all of our investors and to be part of the amazing ecosystem!

General Thoughts on DeFi

DeFi has proven to be a promising blockchain application that’s already fundamentally changing the landscape of finance. However, to continue its growth trajectory, the use case must expand beyond crypto. Traditional finance and DeFi are currently working in silos, and we’re here to change that.

We’re seeing leading protocols such as MakerDao, Aave and Chainlink beginning to venture into traditional finance. MakerDao has successfully funded a real estate backed asset last month which gives a very strong and promising signal to the industry.

The current DeFi TVL of $65 billion is just a fraction of the size of traditional finance. We could effectively double the entire DeFi market simply by tokenizing and funding 2.5% of the $2.8 trillion global credit gap. The possibility is limitless!

With that said, the ability to originate and deploy real-world asset on-chain is the most critical task on hand for DeFi. NAOS is uniquely positioned to lead the effort and to build a real-world asset based infrastructure for the entire DeFi ecosystem to innovate on.

Imagine NAOS as a layer one protocol supplying real-world assets, which is insured by Nexus Mutual or Cover, funded by MakerDao or Aave, and validated by Chainlink or Bluzelle. We’re also super excited about the prospect of a new class of derivative products that bundle real-world and crypto assets, providing investors with the growth upside in crypto and the steady income stream generated by real-world assets.

On our Product Roadmap

Our team has been working extremely hard to integrate DeFi and TradFi, and has made significant progress in our collaboration with MakerDao as announced previously. After firming up the collaboration framework across our partners, we are now announcing the product roadmap with high confidence of timely delivery.

NAOS Protocol is one that bridges TradFi and DeFi, emulating the real world lending process on-chain with a complex operational, process and technical design. We will launch the protocol in different phases:

Phase 1: Formation, the liquidity protocol, is designed for NAOS to build its own liquidity pool to fund real world assets. It is currently in audit and we expect mainnet launch in June.

Phase 2: Galaxy, the lending protocol, is designed to emulate the entire asset onboarding and funding process similar to that of the traditional banking process on chain. It will enter the audit process in June.

Phrase 3: The NAOS Protocol, the integration of Formation and Galaxy, is expected to launch on mainnet in Q3 2021.

As staking is a critical part of our real world lending process design, we will also be rolling out different pools in phases.

Note: the NAOS-WETH pool is available on Sushiswap Onsen Program now!

On CEX Listings

We have officially started pools on Uniswap and Sushiswap, in the spirit of allowing our users to maintain control over their funds with a high degree of privacy. The team has been approached by many centralized exchanges with the offers for listing and is evaluating how the timing would fit with our overall strategy.

We are mindful of the high gas fee on DEXes and are hearing the community’s demand for an alternative. The team will continue to work hard to improve liquidities in both pools while simultaneously assessing the CEX listing options.

On Real World Assets

There are several types of assets that we are working on.

We’ve announced our partnership with one of the largest US-based supply chain companies which works with OEMs in Fortune 500 companies (e.g. Apple, Dell, etc.).

For this particular one, it is backed by 3 things:

  • Accounts receivable — once inventory is sold to contract manufacturer (e.g. Foxconn, Flextronics, etc.) within authorized ecosystem
  • Inventories — electronics and components that are required to build technology systems, which are sold to the contract manufacturers
  • The contract governing the business model are guaranteed by the OEM

We are partnering with PandaCredit: A Singapore-based fintech company backed by Alibaba Group, serving as the asset evaluator and validator, helping collateralize the real-world assets.

We’ve also designed a multi-layer asset protection mechanism to ensure the safety of the funds.

Right now, all of the assets we’re working with now are 100% insured, meaning that there is an insurance policy to cover any potential default. However, we realized that as we scale, some assets will not have the same insurance arrangement.

Therefore, we’ve also designed an insurance staking pool to serve as “first loss guarantee”. In exchange for the risks, stakers will be able to earn more NAOS tokens.

About NAOS Finance

NAOS Finance is a DeFi lending protocol allowing lenders and SME borrowers to facilitate permissionless and borderless loaning/borrowing transactions on the blockchain. Built on Ethereum, our platform lets users tokenize real-world assets and subsequent lending.

We operate compliantly and legally in top markets around the globe, maintaining safety as a top priority and fostering enhanced trust in the lending/borrowing process.

To remain informed on everything about our project, be sure to visit our website and join the family by following our social media platforms:

Website | Whitepaper | Telegram Announcements Channel | Telegram Community | Discord | Twitter