FinNexus Weekly-chat Recap 09/03/2020

Veer Singh

Published in

Phoenix Finance

9 min readMar 16, 2020

Participants:

Boris Yang — FinNexus Founder & CEO
https://twitter.com/BorisYangFNX?s=20

Ryan Tian — FinNexus Financial Specialist
https://twitter.com/rainiefield?s=20

Prof K, Nicholas Krapels — FinNexus Strategy Advisor

Mark Tan- Co-founder of Rivex.

Ryan Tian: Before we start the weekly-chat, I would like to ask Professor K, do you think Bitcoin as a kind of safe haven assets?

Prof K, Nicholas Krapels: Not yet, it is still a risk on asset. When the generation that holds gold in high regard has passed on, then BTC will grab more market share in this regard but we need to talk about what a “safe haven asset” is first?

Ryan Tian: Before these virus and oil dump thing, I heard many had categorised the BTC into digital-gold-like asset.

Something like gold, to most of the people.

Prof K, Nicholas Krapels: Some would say a “safe haven” is inversely correlated to markets. Others would say it has a correlation of zero.

If u say a “safe haven” is inversely correlated, then you would pick US Treasury bonds as your preferred safe haven.

Ryan Tian: I believe the ‘inversely correlated’ is a bit inaccurate.

Prof K, Nicholas Krapels: If u say a “safe haven” must have zero correlation with stocks, then bitcoin or gold is more appropriate.

Ryan Tian: I remembered someone had done a kind of research before, that BTC had little correlation to most of the assets in real world.

Prof K, Nicholas Krapels: I think when we are in a risk-on environment, then BTC is uncorrelated.

Ryan Tian: But it is not exactly true according to the latest market.

Prof K, Nicholas Krapels: As we move to a risk-off environment, BTC could be just as correlated as any other asset to the overall market.

We have to remember that BTC was born in the Great Financial Crisis. As such, it has never seen another financial crisis.

Question 1:

Prof K, Nicholas Krapels: Can you tell us about the difference between FNX and UM1S?

Ryan Tian: The natures of the two are different.

FNX is the native FinNexus utility token, which is listed and transacted on exchanges. The holders of FNX will have a number of benefits from the business model and development of FinNexus.

UM1S is the tokenized product of FinNexus. The token will have an annualised return of about 10% paid in USDT. UM1S’s returns are based on a reliable, profitable and real-world asset.

Prof K, Nicholas Krapels: If they have UM1S, how do they claim the USDT? Will it be like Power Piggy products on Bitrue?

Ryan Tian: The holders of UM1S will be paid back by the principal and interest upon maturity, all in USDT. We will issue a detailed instruction on how to claim the USDT later. Don’t worry.

Question 2:

Victor: Hi everyone. I have a question about UM1S. Will the holders be able to sell it as the token? Or will it be locked for some time period, like a bank deposit?

Ryan Tian: UM1S tokens can be transferred through the Wanchain wallet.

Prof K, Nicholas Krapels: What is cool about UM1S is that we will soon have WRDEX, which is a project run by RiveX using Wanchain technology.

Question 3:

Anas Y: Is UM1S going to have a fixed return? How will it be calculated?

Ryan Tian: The interest of UM1S payable on the payment date = outstanding principal balance of UM1S × token rate × the actual number of days of the interest period ÷ 365 days (same for a leap year).

Also the applicable token rate is different according to the time of conversion. The earlier the conversion is made, the higher the rate will be.

UM1S’s nominal or face value is fixed to 1USDT. It doesn’t mean the market price of UM1S is fixed. Think of the bond in traditional finance.

Prof K, Nicholas Krapels: And one more thing about FNX, once you make the conversion to UM1S, you can’t convert it back. That converted FNX is forever lost to the total supply of FNX(Burned).

Question 4:

Anas Y: If I’m holding the same amount of UM1S for the whole two different years. Is it going to give back the same return or is there any different variable that I’m not considering?

Ryan Tian: The applicable rate return of UM1S is totally up to the time of conversion by the original FNX holder.

Prof K, Nicholas Krapels: Rates of return are always dependent on the principal you pay. So I suppose if you paid with a cryptocurrency that somehow earned you a discount on the purchase of FNX, you’d also have a higher APR.

Question 5:

Edi Hart: Is Um1s a stable coin?

Boris Yang: It is more like a stable asset.

Ryan Tian: A bit alike but not exactly. It is backed by real world assets and with interest. I believe normal stable coins don’t have interest.

Prof K, Nicholas Krapels: I suppose that is one way to think about it. But because the USDT flows have real value (which is not like a stable-coin), then the value of the asset can fluctuate.

Question 6:

Edi Hart: The holders of FNX can get UM1s after 3 months?

Anas Y: No. A participant will only have 3 months to convert from FNX to UM1s.

Question 7:

Anas Y: What I understand is that it’s like a small volatility same like USDT to USD. It is always has a small difference between both of them.

Did I get it right? Or you remain a real volatile asset!(UM1S)?

Ryan Tian: No, not so volatile at all. Is the treasury bond volatile?

Anas Y: Ok. That means the return is (almost) fixed to 10%, right? Small difference doesn’t count.

Ryan Tian: As I said, the applicable token rate is different according to the time of conversion. The earlier the conversion is made, the higher the rate will be. There is a table specifying the rate.

Anas Y: Is this table going to be public?

Ryan Tian: It shall be released tomorrow.

Question 8:

NVRMND: If the price drops below $0.1 after a year/few months. We will still be able to convert to UM1s?

Prof K, Nicholas Krapels: The conversion opportunity will only be available for 3 months. And remember, if you convert to UM1S, you forfeit your FNX.

Ryan Tian: within 3 months(the conversion period), you can. That’s the good part of the conversion and it will provide the price support due to that.

Question 9:

NVRMND: There are 150M token to be sold and price is about $0.1 that means approx. 15MCAP(top200 CMC) do you think it is possible?

Ryan Tian: Not this time. The 150M is the total tokens for sale, not on sale this time. The upper limit for sale is 40M for Bitrue and 10M for Wan wallet (the exact amount to be confirmed and announced).

Question 10:

Prof K, Nicholas Krapels: What is the exact relationship between Wanchain and FinNexus?

For instance, will there eventually be a FinNexus Wallet? Or will we always use Wan Wallet?

Ryan Tian: Wanchain is one of the two founding investors. It is providing the main-net for FNX tokens and the first phase of tokenized products. FinNexus’ WRC20 tokens, the native tokens and products will be intensively involved in the Wan DeFi eco.

Boris Yang: It is better to use Wan wallet at the beginning. We are thinking to develop FNX wallet based on our protocols.

Prof K, Nicholas Krapels: Besides this wallet sometime in the future, what other FinNexus products are in development?

Boris Yang: For users and investors we are designing some pure decentralized products to synthetic more assets.

Ryan Tian: Also, there will be cooperation with other public chains. FinNexus is about to launch the tokenized products in XRP ledger this year.

Question 11:

Anas Y: If there is any real world assets to be tokenized with #FinNexus what gonna be #FNX holder advantage on that tokenization?

Ryan Tian: The tokenized assets are FinNexus’ products, and the holders of FNX will have a number of benefits in the later launching of these assets.

Rights of higher rate of returns on tokenized products
Rights to invest in or transfer tokenized products with lower cost
Derivative rights, like early settlement, resale or interest swaps
Benefits on the FinNexus’ gains:Underwriting; Investment banking; Market making; Transaction commissions; Investment in the tokenized assets

Question 12:

Prof K, Nicholas Krapels: Are some of the asset products to be built on XRP Ledger?

Or will they be built on Wanchain? Or both?

Boris Yang: I am not sure now. You know XRP Ledger has some different function compared with smart contract. So issuing token works on XRP. We have not evaluated the functions for complex decentralized products.

Boris Yang: https://www.youtube.com/watch?v=EUa7_uCkl0M

Ripple always has visions beyond its core decentralized settlement business. The Ripple CTO David Schwartz recently mentioned that ‘Ripple is developing a feature that could allow users to mint asset-backed tokens directly on top of XRP Ledger’, or ‘assets pegged to some external value’. Also, these assets will be much benefited from the “guaranteed” liquidity because of the XRP ledger’s mechanics.

One of the goals of FinNexus is trying to solve the diversity problem in the crypto industry, by bridging the real-world applications to the blockchain industry. It is launching its first tokenized product in the upcoming token distribution model on Bitrue, and it plans to tokenize assets on the XRP Ledger in 2020 as in the roadmap.

The goals of FinNexus and Ripple are aligned. XRP ledgers will provide the basic transaction, settlement, and distribution technologies for the flow of value within the asset-backed tokens, while FinNexus will provide more real-world use cases, users and transactions, and be much benefited from the efficient and decentralized platform with good liquidity.

Question 13:

Btr-is-stablecoin: Can FNX directly be exchanged to UM1s on Bitrue? Will it be available to convert UM1s on both mobile and desktop WAN wallets?

Ryan Tian: Because the conversion is done by smart contracts in a decentralized way. You have to do it in the Wanchain Wallet.

Boris Yang: The plan is to provide users an option to convert UM1s directly on Bitrue. Yes, it will be available on both the versions of the wallet

Prof K, Nicholas Krapels: So to make this clear: The conversion from FNX to UM1S (if you choose) must take place in Wan Wallet. But to redeem UM1S and get USDT at expiration, token holders can do this at Bitrue? Is that right? Are there any other places that will support UM1S redemption?

Boris Yang: Yes it is clear. We are planning to provide redemption on-chain.

Ryan Tian: We will definitely make the on-chain functions work in UM1s.

Prof K, Nicholas Krapels: It’s better to do all of these features in as decentralized way as possible. If the community needs help, we can help them!

Ryan Tian: Totally, we love decentralization and this is DeFi. Particularly in a market with so much uncertainty and black swans, the crypto market needs diversification and FinNexus will provide that.

Prof K, Nicholas Krapels: What we have learned from this weekend’s market action is that everything in the crypto markets is highly correlated to bitcoin. So when BTC is having a bad day, the other crypto-assets suffered even more.

Boris Yang: Yes. I talked with a guy from a exchange. He told his opinion about the BTC price.

Prof K, Nicholas Krapels: With the new technologies like cross-chain DEX that RiveX will soon go live with and the suite of protocols and assets that FinNexus is building, holders of virtually any token can rest easy at night knowing they can instantly swap into another asset with a completely different risk profile 24/7.

Ryan Tian: Liquidity is one vital key to everything relating to finance, and we are glad that there will be a DEX so close to us and so supportive of us.

About FinNexus

FinNexus is building an open finance protocol to power hybrid marketplaces that trade both decentralized and traditional financial products. The FNX token will live on the Wanchain blockchain to take advantage of the most robust cross-chain capabilities currently available in the industry. The first products FinNexus plans on releasing will be innovative tokenized assets (available Q1 2020) with value based on real-world cash flows.