AMA Jun 6th 2021 | Satoshi Club x Rikkei Finance
On Jun 6th 2021, Rikkei Finance held an AMA on the Satoshi Club community in order to bring more information about the project to the audiences. Today, we are pleased to recap the main content of the AMA.
I. Introduction and preselected questions:
[Golden rocket | Satoshi Club]: Hello, dear Satoshi club community! We are pleased to announce ama with Rkkei. Today our guest is @tung_vu!
[Tung vu]: Hey hey, guys. Finally, I can say hello to the Satoshi family 🙂Thank you so much for having me here today
[Golden rocket | Satoshi Club]: Hello and welcome to Satoshi club, @tung_vu! Sorry for delay. 😊🙏
[Tung vu]: All good 🙂
[Gold rocket | Satoshi club]: We are very glad to conduct ama with Rkkei!
[Tung vu]: I’m glad to be here too.
[Gold rocket | Satoshi club]:Let’s start!
Introduce yourself, please. How did you get to be involved in crypto & Rkkei? Tell us also please about your position in Rkkei?
[Tung vu]: My name is Tung, co-founder & CTO of Rkkei finance. I completed Ph.D. From Nanyang technology university, Singapore in 2017. I had previously served as a scientist, researcher at various reputed institutions.
Before Rkkei finance, I was CTO of Rkkeisoft, one of the biggest companies in Vietnam with more than 1300 developers working in multiple countries, including Vietnam, Japan, Singapore, etc.
With Rkkei finance, I aim to provide better solutions for the users, enhancing their experience and encourage greater participation.
[Gold rocket | Satoshi club]: Wow! Great background 👍
[Tung vu]: Thank you 🙂
[Andrés m. | Satoshi club]: Wow, important experience👏
[Gold rocket | Satoshi club]: What is the essence of Rkkei?
[Andrés m. | Satoshi club]: How this idea come to your mind and how many times ago Rkkei born?
[Tung vu]: In simple words, Rkkei finance (rifi) is a lending protocol.
The core features cross-chain support, NFTs collateralization, and p2p insurance. It utilizes blockchain tech that enables cross-chain integration, meaning it can accept digital assets that operate on any blockchain network and render it at an equivalent rate, making them a real-time currency exchange network as well.
Well, Hoa (CEO) and I were working together on blockchain for a while already. Rkkeisoft has invested in some blockchain companies since 2019, some of them become really successful.
We (Rkkeisoft) provided them not only the financial faCTOr but also helping with the smart contract development as well.
[Gold rocket | Satoshi club]: Also, we would like to know about your team. Who is on the project team core?
[Tung vu]: So along the way working with those companies, we come across a lot of brilliant minds. Hoa and I both agreed that this field is so interesting and full of potential. That’s why we started Rkkei finance
[Gold rocket | Satoshi club]: This means that you already know how to make business successful! 👍
[Tung vu]: We got a team of 25 people right now. Most of them are developers: solidity, frontend, api. We got a marketing team and management team as well. Our main advisors including loi luu (CEO of Kyber) and john ng (managing partner of signum). They are really helping us a lot.
Yeah, 9 years with Rkkeisoft really help us a lot. We built the company from 12 developers to 1300+ devs now. What a journey!
[Gold rocket | Satoshi club]: Thanks for the introduction, we will have a question selected for part 1. Ready to start?🚀
[Tung vu]: Sure, I’m ready
Preselected questions about the TradeStars DeFi project.
[Andrés m. | Satoshi club]: Q1 from telegram user @michelth
Rkkei.finance is a revolutionary defi platform, the core of which is a unique open lending system: cross-chain support, NFT collateralization, and p2p insurance. Cross-chain technologies open a new horizon for collateral and asset lending. Can you explain the loan interest rate model to us? How is it calculated? How much profit does it bring to the market and investors?
[Tung vu]: Okay, that’s one of the core features of our system, explanation would take a little time hehe.
[Gold rocket | Satoshi club]: Take your time, please😉
[Tung vu]: Basically, in the lending protocol, the borrow interest rate is calculated based on the utilization (ratio between supply and demand). For example, the compound is using a linear borrow interest rate model.
[Andrés m. | Satoshi club]: Why did you choose this model?
[Tung vu]: Basically, in lending protocol, the borrow interest rate is calculated based on the utilisation (ration between supply and demand). For example, Compound is using linear borrow interest rate model
[Tung vu]: So, when the demand increases (more people borrow from the pool), the borrow interest rate will go up linearly.
[Gold rocket | Satoshi club]: Yes. Tell us about the benefits of this model. How is it different from others?
[Tung vu]: There’s nothing wrong with the linear interest rate model, however, there are a couple of points along the line you need to pay attention to, to make sure that your system is safe.
(1) at the stress point, when everyone is borrowing at max capacity. If there’s a big price correction (flash dip) in the market, everyone got liquidated and you can just simply go bankrupt. That why’s at this point (ut) we exponentially increase the borrowing rate.
(2) at the low point, when no one wants to borrow anything. We find a way to lower the borrowing rate without trading off the supply rate.
[Gold rocket | Satoshi club]: Does this mean that a unique open lending system is safer for users?
Generally, yes. At low point users get more benefit, at highpoint the protocol is so much safer. So, win-win for both parties.
[Andrés m. | Satoshi club]: So, what is your strategy to increase liquidity?
[Tung vu]: Yeah, thanks for asking.
[Gold rocket | Satoshi club]: Position win win👍
[Tung vu]: 1. About initial liquidity providing
(1) rifi has raised $5.6 million, definitely not a small amount. This initial fundraising can provide (partly) the initial liquidity for the system, which is as per our plan.
(2) investors and partners of rifi all have committed to provide a certain amount of liquidity into the system. The total number is quite impressive, and it will be shared with the community shortly.
(3) we are announcing the stable vault soon. People can start depositing token in to get high APY as well.
2. About long-term profit
Lending is all about the difference between borrowing interest rate and supplying interest rate. This difference will be used as:
(1) interest payment for the lender
(2) risk reserve for the protocol and
(3) system profit.
In the short term, we will not prioritize the profit of the project, but we will focus mainly on risk reserve purpose, ensuring the safety of the protocol as well as users. We will gradually increase the profit margin in the long run. In general, this will be a profitable and sustainable business model, not relying on selling tokens for profit like some other defi protocols.
[Andrés m. | Satoshi club]: Fantastic strategy, all the scenes covered, great job👏
[Tung vu]: Thank you. Team effort haha
[Gold rocket | Satoshi club]: Thanks a lot for this explanation! The benefit is obvious! I suggest moving on to the next question😊
[Tung vu]: Let’s go
[Andrés m. | Satoshi club]: Q2 from telegram user @user5k
Rkkei investors and partners have agreed to provide a certain amount of liquidity to the system. The total number is quite impressive and will be shared with the community shortly. Could you detail us how much rifi has definitely raised? Do you think that with this injection of capital they can start the development of the project or as time passes a new reinvention of capital will be carried out? How will the liquidity provision be distributed? Can you tell us what benefits will be shared with the community?
[Tung vu]: Let me share with you guys some information about the fund-raising processes.
[Gold rocket | Satoshi club]: Looks good👍
[Tung vu]: We didn’t raise any money for the seeding round. We developed our product first, and then when it’s running on testnet we introduced it to individual strategic partners and investors. The evaluation at that time is $30m and $40m respectively.
We raised $1.2m for the strategic round and $4.4m for private sales. The usage of the fund will be used as below
[Gold rocket | Satoshi club]: Well, your approach inspires trust and respect.
[Andrés m. | Satoshi club]: Thanks for share it. Btw, is KYC needed to use your platform?
[Tung vu]: KYC is not required to deposit and borrow. We are not supported unsecured loan right now, so KYC is not really needed
We believe that the fund is enough for 2nd phase of development. For longer-term, as I shared before, the business model will provide profit by itself! No.
[Andrés m. | Satoshi club]: That’s great. Would you like to add something before the next question?
[Tung vu]: Let’s go to the next question
[Andrés m. | Satoshi club]: Q3 from telegram user @manugotsuka
I just realized that Rkkei finance applies an innovative implementation where NFTs can be used as collateral and borrowing, so how do you guarantee that this implementation will have the same performance with NFTs as stablecoins?
[Gold rocket | Satoshi club]: Thank you very much for your answers! 😊
[Tung vu]: We all have to agree that evaluating the value of NFTs is tricky, especially NFTs price can be easily manipulated by a group of users. So, to keep lending protocol safe, for NFTs we will do a p2p lending system with 2 NFTs lending cases supported as follows:
(1) use NFTs as collateral.
You are an NFT holder, and you want to borrow money: you lock your NFT in our system with a price tag. If anyone believes that your NFT is worth that much, they will deposit money to lend to you. Before the deadline, if you return the money, you get your NFT back, if not the NFT is now owned by the moneylender.
[Gold rocket | Satoshi club]: Yes, this is an absolute trend today🚀
[Tung vu]: (2) earn money by lending your NFTs
You have the money and want to borrow NFT: happens when you play some game, facing a quest that requires a specific item. You don’t want to purchase that item because it is unaffordable. You can lock your money in the system and borrow NFT from other people. Return the NFT on time will get your money back, if not, you now are the new owner of that NFT.
[Andrés m. | Satoshi club]: How do you calculate the price of the NFTs?
[Tung vu]: We don’t. In this case, we have to put the safety of the lending protocol and current users first.
The way we do it as I explain is that we let the market decide the true value of your NFTs. Anyone believe that your NFT worth as much as the money you’re asking, they will provide the fund for you to borrow
[Andrés m. | Satoshi club]: Offer and demand.
[Andrés m. | Satoshi club]: Amazing tools that your platform offers, thanks for your answers😃
[Tung vu]: Correct!
[Gold rocket | Satoshi club]: Thank you for your great answers! Are you ready for the next question?
[Tung vu]: I’m ready.
[Andrés m. | Satoshi club]: Q4 from telegram user @yellowchamp
Rkkei finance multi-kinked interest rate model makes the lending platform robust and sustainable. The lending protocol also ensures system sustainability through its 5-phase asset selection process, which employs a self-developed liquidity ranking system. So, can you tell us more about the multi-kinked interest rate model being implemented by Rkkei finance? How does this interest rate become affordable to the market? What are the 5 phase asset selection process implemented for the lending protocol of your platform lastly,how does a self-deployed liquidity ranking system works? If these ways be implemented and applied in the lending protocol of Rkkei finance,what do you think is the outcome and does your platform is open for feedbacks and suggestions from your lenders or clients? Thank you
[Tung vu]: Wow you guys really have done the research on the project. This is the first time I have someone asking me about the liquidity ranking system!
Okay, the question about the multiple-kinked model I already answered. Let’s me share more about the liquidity ranking system
[Andrés m. | Satoshi club]: We have high-quality users; however we received a big quantity of questions about your project, our members are so interested🥳👏
[Tung vu]: First of all, why are we building the liquidity ranking system? The reason is that, recently we witnessed a lot of attacks into defi protocol. They exploit different weaknesses of the protocols, normally including (1) bugs in source code (2) manipulating token price and (3) bad risk management control model.
[Gold rocket | Satoshi club]: It’s good that you are talking about security.👍
[Tung vu]: We can avoid it by applying multiple methods to ensure the security of the system. Transparent 5-phase asset selection process is one of them, and the liquidity ranking system is the core value of it.
Through this process, assets will be evaluated using a self-developed liquidity ranking system, ensuring that only the most liquid assets are allocated to the pool, minimizing the risk of market manipulation and thereby ensuring system sustainability.
So, in short, we only support top coins, which are really really hard to manipulate. Hopefully, it will help strengthen the security of the system.
[Andrés m. | Satoshi club]: Which coins do you support at the moment?
[Tung vu]: Starting with stable coins like USDT, USDC, BUSD.
For nonstable coin we will support BNB, ETH, BTC.
[Gold rocket | Satoshi club]: You thought out all the details very well👍 I hope this will give excellent results
[Tung vu]: More markets will be introduced shortly 🙂
[Andrés m. | Satoshi club]: Thank you, we will be waiting for the coming announcements about it. 😃
[Tung vu]: Sure.
[Andrés m. | Satoshi club]: Time to proceed with the 5th question.
[Gold rocket | Satoshi club]: Thanks for your answers ☺️
[Andrés m. | Satoshi club]: Q5 from telegram user @ruttiee
Rekkei.finance support NFTs as collateral which allows NFT holders earn by lending their NFTs and there are 2 NFTs lending cases that we support on the rifi platform which are:an NFT holder seeking a loan and a user who wants to borrow NFT. Can you please explain in detail how this two cases work? How will rifi platform match an NFT owner with a user who wants to borrow NFT?
[Gold rocket | Satoshi club]: Partially disclosed. But maybe you have something to add😊
[Tung vu]: Yeah, 2 case studies for NFT lender and borrower i’ve already mentioned.
I just want to add that we are not going to build a new NFT marketplace.
[Gold rocket | Satoshi club]: Thank you very much for the clarification.
[Tung vu]: Yeah, NFTs is trending and nice, but we really want to focus our team and all of enegy on the lending protocol. Building such a complex system like that requires 100% focus and a lot of work. We will collaborate with top-tier existing NFTs marketplace to provide more service for their users and also our lending users.
[Andrés m. | Satoshi club]: Talking about financial products is talk about a safe environment, have you done events to increase transparency and security like audits or hackathons?
[Tung vu]: Quick peak for you guys about the liquidity ranking system. We’ve finished building the product, just waiting for the exact date to announce it.
Yes, we are auditing our coding with multiple vendors like Hacken and Perkshield.
Any line of code that we introduce to the community is carefully scanned and audited.
[Gold rocket | Satoshi club]: Congratulations! Great milestone! Don’t forget to share with Satoshi clubbers😊
[Tung vu]: Sure, I’m more than happy to share it with you guys.
[Andrés m. | Satoshi club]: We are happy to know that everything is safu😁
[Gold rocket | Satoshi club]: Thanks for your answers! Ready to proceed to the last question of this part?☺️
[Andrés m. | Satoshi club]: Thanks for the detailed info and for make it easy to understand for all our members.😃
[Tung vu]: Yes, let’s go
[Andrés m. | Satoshi club]: Q6 from telegram user @cryptofollower
Rkkei finance raised $5.6 million to build the first open lending platform with cross-chain support and NFTs collateralization. And big investors in the blockchain industry, including signum capital, hyperchain capital, kyber network, x21 digital, ld capital and more invested to the project. Could you explain what mutual benefits will you get from these partnerships in the long term. Also what are the lockup periods and what is the token release schedule about this funding?
[Tung vu]: Great question.
First of all, we are really picky in terms of choosing investors. The people who onboard with us, all bring a lot of value to the project.
[Gold rocket | Satoshi club]: This is a good рroperty for a crypto project 😉
[Tung vu]: Signum, ld: they are the first ones to approach us, helping a lot in terms of connection and advice.
Fomocraft for marketing
Blockart, x21, ybb, kyros, coin98 for the international community
Kernel capital for the Chinese community
Hyperchain also connected us with the fantom team. We are planning to build a new version on fantom too.
About the token release schedule
You can see that all early investors get 0% release at tge. That’s because we (investors and the team) agreed that the investment into Rkkeifinance should be considered as long-term investment, not pump-dump short-term kind of thing. The investors and strategic partners will stay with project for a long time and contribute value a long the way.
Also, it’s good for the community, if you are a retail investor, you don’t even have to worry about the ido/listing dump because it’s not gonna happen 🙂
[Andrés m. | Satoshi club]: The great brand have you partnered with, is there any other partnership in plans?
[Tung vu]: There are a lot in the queue. I’m dying to tell you guys right now, but the policy is policy. Stay tuned, we will announce it shortly
[Andrés m. | Satoshi club]: @tung_vu thank you so much for your answers, it’s an honor to have a great and experienced personality with us, which makes Rkkei different from its direct competitors. Congratulations you have a strong project with great fundamentals. 👏😃
[Gold rocket | Satoshi club]: Thank you very much for your answers and clarifications.
[Tung vu]: Thank you so much for all the nice words.
Happy to be here sharing it with the Satoshi family. You guys are great!
[Andrés m. | Satoshi club]: Then is time to proceed with the live segment of the ama😁, a ton of questions are coming to the chat.
[Tung vu]: Let’s go
[Gold rocket | Satoshi club]: Now get ready for the most impressive part of our ama! Live questions! 🚀
II. Questions about the Rikkei.Finance project from the live chat of the telegram community.
In this part, we open a chat for the crypto community for 120 seconds. Then the guests from the Rikkei.Finance crypto project chooses the top 10 questions. The 10 crypto enthusiasts have earned cryptocurrency in the sum of 100$.
Q — 1 from a telegram user @sweetdoge
You mentioned about that you got a team of 25 people right now so do you plan to add more people into the team, any job offerings?
We will take it slow, quality over quantity. Of course you guys can DM me if you think can contribute to the project. Right now we are still looking for an CMO.
Q — 2 from a telegram user @Boylut
When do you plan to release your staking Vault? Is it after the product lunch?
The staking vault will be release before the product launch.
There are 3 vaults:
(1) Stable coin vault: You stake your stable coin and earn some interest rate money plus RiFi token. It will be USDT vault.
(2) Rifi vault: You stake our RiFi token in and earn HUGE reward with GREAT APY. You can earn RiFi token even BEFORE the listing. We will announce the airdrop/bounty campaign very soon.
(3)RiFi/BNB Pair vault: You provide liquidity for RiFi/BNB pair and earn a reward from that.
Q — 3 from a telegram user @doithay1617
Rifi.Lending Dapp launching on Binance Smart Chain (BSC), why did Rikkei choose to launch on BSC instead of Ethereum?
Well, the anwser go back to the time we started developing the product. At that time, we have several choices: BSC, ETH, Polkadot, Solana, Fantom, …. They are all decent choice, and we have the strong technical team to go with any direction that we want. We chose BSC because:
– ETH is already crowded, the fee is too high and transaction is slow. Not really idea for the starting product.
– Polkadot is really trending and hot at that time. But Kusama and Dot are not yet released. We are not selling the idea, we have the product right there when we list. I don’t want to wait for the main-chain to be release so our product can run. I want it running smoothly from day 1.
– Solana/Fantom are both cool, but at that time the ecosystem is not really there. So we will have the plan to expand our system to those chains later
Q — 4 from a telegram user @nitrogenpower
On your interest rate feature are there only two different points for creating multiple kinked interest rates or is it possible to create more points?
Of course you can have different equation for different point on the utilisation line. However, there are only 2 critical points that you need to address: low point and stress point. As long as the utilization rate is somewhere between U_low and U_stress, your lending protocol is completely fine.
Q — 5 from a telegram user @NataliyaKil
One of the sections on your site is not yet available — Developer Hub. How soon do you plan to open this section, what function will this section have, will it be intended only for the development team, or will the information be available to regular users too?
We will open the section as soon as all the source code be audited. The most important function will this section have is the instruction for integrating our protocol into an existing systems like Financial hub ( coinbase wallet, Gnosys Safe app, …) or NFTs marketplace (rarable, …)
Q — 6 from a telegram user @Amila19932
Do you have any special plans to survive in a bear market? Because if we have already enetered to the bear market it is not easy to survive for a new project, Are you strong enough to survive in a bear market?
Actually, the mindset of investors have changed after many bull and bear periods. Right now, as long as the project has a strong core team, brilliant breakthrough ideas and solid products, it will attract a lot of investors. One prime example is that even in the present bear market, we have successfully raised nearly $6M to build our lending protocol — Rikkei Finance.
As you can see, we didn’t raise any money for seeding round, we’ve developed the product first. So that when we approach investors, they can immediately try out the project by themselves. By doing so, they can verify our technical capability as well as our business model.
With the secured investment from notable investors and a profitable business model (a lending protocol), we believe that we can survive this bear period.
Q — 7 from a telegram user @Xusuo
Well from what i read from today ama, Rikkei is greal lending project, may i know how are the way if i want to purchase Rikkei token? Any info regarding presale or public sale your token?
For now the token sale is closed as we’ve finished strategic and private round. You can participate in the Airdrop and Bounty campaign (To be announced soon) to earn RiFi token, even before we’re listed on BSC.
Q — 8 from a telegram user @Akalkhan
How do you plan to spread your understanding of the project in different countries where spoken English is not good like mine?
We have a translator team working hard to bring more information about the project to other countries. But for now, most of the information will be in English, Chinese, and Vietnamese. More languages will be supported after the Listing and Product Launch.
Q — 9 from a telegram user @yellowchamp
How do you accept client’s suggestions and opinions with regards to Rikkei Finance lending protocol? How are you open for this situation?
Our token does have governing feature. Just by holding RiFi, your voice will be heard. We are open to discuss everything transparently with the community. From what token to be supported, what risk management level to be managed, collateral factor equations and so on.
Q -10 from a telegram user @cindy_crypto
Are there any features you implemented if a big price correction happens in the market to prevent everyone to be liquidated?
Crypto market is highly volatile, we all know that. When even like big price correction or flash dip, we all need protection, from lender, borrower and the lending system itself.
For Lender and borrower, we will bring the liquidation coverage feature from insurance partner to you as soon as possible.
For the lending system, to prevent panic withdrawal, we will implement limitation for one-time withdrawal amount.
III. Quiz about project
In the final part, we tested the knowledge in terms of the Rikkei.Finance project. They’ve prepared 4 questions for this part, so everyone could be a part and answer. Participants had 10 minutes to answer. 300$ was distributed between the winners.
Our contacts for more details:
Our Crypto Partner by this AMA: Satoshi Club