Recapitulation of dFund PROJECT AMA event held at AMA LOVERS CLUB.
Date: Saturday, 17th April, 2021
Time: 18:00 UTC
The dFund PROJECT team was represented by @SavoRPC who judiciously shared with us detailed knowledge and information about dFund PROJECT.
1st Segment: INTRODUCTION
Q1: Can you please introduce yourself and your background, also introduce the team working on dFund?
ANS: My name is Savo Vukcevic, The CEO of dFund. I come from the legacy finance world mostly and I am a hedge fund manager in real life, the youngest hedge fund manager of all time actually. dFund is an all encompassing DeFi platform which I imagine as the bridge between the legacy finance world and crypto, and in order to accomplish that you need people who are experienced in both. For example, I am a hedge fund manager and advised some of the biggest investment banks in the world but I also worked for some of the biggest crypto projects ranging from privacy coins to stablecoins, including EURS, the largest euro backed stablecoin in the world, which also literally wrote the crypto laws and regulations for Malta, France, Germany and the EU basically. Our Co-Founders, Greg and Rohan, also have diverse experience, Greg has previously worked for Consensys (Ethereum’s company), Duality Blockchain solutions, bug also in fraud detection systems for e-commerce, while Rohan has experience working for Deloitte, the largest accounting and consulting firm in the world, but also masternode projects and privacy coins. So you see all of us have experience that goes beyond just crypto and legacy. I am very confident that what we are building is by far the most advanced and all-encompassing DeFi platform in the world, and I always tell everyone who inquires about the presale: if you can name 1 objectively better DeFi project that is building something better and more all-encompassing than what we are building, I will just airdrop you any allocation you want. But I will talk more about our features later.
Q2: Can you introduce dFund, what critical problems does it solve that existing solutions are not solving and what's the competitive advantage?
ANS: We are trying to build something the world of DeFi has never seen before. I think we are one of the most ambitious projects out there. We are building an all encompassing platform, where any user can start their own hedge fund or invest in one. These hedge funds will be ranked by their performance and they are organized as DAO modules where you can set all terms and conditions such as success fees without any coding knowledge. There will also be a loans feature on the platform where anyone can borrow and lend money. Unlike Aave, where the protocol lends money and you just make a deposit, what we are building is true decentralization where you as a user directly lend money and set all terms and conditions for your loan, such as the interest rate and collateral requirement, which doesn’t even need to be 100% and it can be higher or lower than that, up to your wishes. Every borrower on the platform will have a credit rating, so if you never got liquidated and you always pay the interest in time etc then you will have something like a AAA+ credit rating which comes with incentives such as lower interest rates and lower collateral requirements. When you lend money, you can set the minimum credit rating required to take a loan. There will also be a secondary marketplace for synthetic assets were users will be able to sell their loans, kind of like the crypto version of the bond market. You can sell your loan and thereby delegate the waiting time and risk to the buyer while making a safe exit. As you can see, most of these things don’t exist yet in crypto, and those that do are scattered across 10 different projects, we are putting it all into a single all encompassing DeFi platform.
Q3: Can you briefly describe the top milestones you have achieved and your target milestones with timelines, also share your roadmap?
ANS: Our presale just ended like a week ago, we reached our hardcap of 3.62 million dollars in a matter of hours, from a combination of VC’s and small retail investors. Now our next step is the IDO, which will be this month, and the exact date and platform will be announced in the coming days. We intend to bid for a Polkadot parachain slot and be a polkadot parachain, but until polkadot rolls our parachains we will be an ERC20 token. The closed beta of our platform is scheduled to go live in Q2, we can build all of this in 1 day, but we are basically waiting for polkadot to have smart contract functionality. So before that happens we will have a closed beta on Ethereum. We have exchange listings and partnerships lined up ready to be announced post IDO, some of which I think will really shake the crypto sphere, we have some really big partnerships lined up.
Q4: You are not concerned about the gas fee?
ANS: Coming from a hedge fund background, I don’t like when people focus on something because it currently has a very strong position or some sort of market dominance, like Binance does for exchanges. This is why I don’t want to do BSC from the get go. Ethereum is still the most technically advanced chain for smart contracts and I believe with the coming updates it will be scalable and gas fees won’t be that much of a problem. But since it is only temporary and we are moving to Polkadot anyways, it’s not a big problem for us right now. Although I am leaving some space open to deploying our token on other chains such as BSC in the future too.
Q5: Can you briefly describe your PARTNERSHIPS so far?
ANS: I don’t want to reveal too much right now, but we have partnerships lined up with some of the biggest names. This will be announced after listing, for now I can talk about strategic partnerships with some of the investors who are backing our project, such as VC firms A195 Capital, lead by Ben Clarke, who previously backed mega successful startups such as Polkadot and ChainLink, GD10 Ventures who previously backed big hits such as Bondly, and Eric Clark Su who previously backed FTX Exchange, BSCPad, and My Neighbor Alice.
I’d like to note that we have numbers that are unheard of for Pre-Seed startup companies, our presale was 3.62 million dollars but our company has made around 10 million in revenue so far. We plan to be one of the most transparent projects in the crypto space and publicly release a lot of company information which is usually kept secret, including detailed breakdowns of costs and expenses. We think transparency is much needed in this space, many projects’ founders buy Lambos and Rolls-Royces and write it off as company spending.
We want to set new standards of transparency.
Q6: Can you give an overview of your Tokenomics, and the UTILITY of the $DFND Token?
ANS: DFND token is the most important part of our ecosystem. Regarding the use case of tokens, they are instrumental to the platform, so in a way it is both a currency and a utility token, users will need to lock up DFND tokens if they want to start a decentralized hedge fund, borrowers will need to deposit DFND tokens as collateral for loans, lenders can require borrowers to pay interest in DFND tokens, decentralized hedge funds can choose to pay out profits in DFND tokens, and only users who have DFND tokens will be able to vote in DAO and governance models, also you will need them for trading on the secondary marketplace. This is both a use case and a bull case, as this ensures a large percentage of tokens is locked up, creating scarcity and therefore putting positive / upwards pressure on the tokens price. So don’t worry it’s not like a token that’s only issued to raise capital and then it has no use case except to dump it or trade it on exchanges for speculation, you can ofc also do that if you want, but it also has an actual use case as you need DFND tokens in order to do pretty much anything on the platform :) detailed token metrics and tokenomics can be found on our website https://d-fund.io.
2nd Segment: LIVE Questions
Q1: There are traditional hedge funds. But what distinctive features differentiate dFund from them and why would you ask users to go for decentralized hedge funds rather than traditional hedge funds?
ANS: Well for traditional hedge funds you need connections and a lot of capital to invest in one, the minimums range from 100k to 1 million dollars. What we are doing here is making it possible for everyone to start their own hedge fund or invest in one, even if your entire portfolio is 100 dollars you can start a hedge fund or invest in one on our platform.
Q2: ⭐Due to the economic situations of users interested in cryptos around the world, platforms to request loans have become very popular, dFund is not the first, but could you explain What makes them different from the rest? Why prefer dFund over other platforms? And how do they plan to expand their popularity?
ANS: First of all we are completely decentralized, on Aave you don’t lend money, the protocol lends money. You just deposit money and get your interest. Here users have total control, you set the collateral requirement (which can be under 100% or over 100%), interest rate, and minimum credit rating needed to take the loan. We are making it very user friendly by having these credit ratings so everyone can correctly gauge risk and so it feels sort of gamefied. Also we are combining this with hedge fund functionality and secondary marketplace so it’s like having 10 DeFi projects and features in 1 platform.
Q3: Regarding your Decentralized funding proposal auction which allow users to make a one-time funding proposal and promise through a smart contract to give their funders interest on the funding amount if they have an idea. How do you intend to discourage users from making bad or unsuccessful funding proposals? Will there be a kind of rating to help warn these categories of users?
ANS: I think the markets will sort this on their own. We are there to ensure funds won’t be “rugged” or abused and to make sure everything is handled trustlessly and automatically through smart contract. The proposer of funding will need to lay out their proposal and convince people to fund it, from then on we will give them a rating depending on how successful they were, so I think supply and demand will pretty quickly decide.
Q4: What are the main reasons why dFund operates under the Polkadot network? As well as loans are offered under this network, in the future may they be offered in other networks as well?
ANS: I believe Substrate, the core of Polkadot, is the future and building material of Web3. Polkadot will be by far the most scalable and technologically superior chain once they roll out parachains, and we are happy to have chosen them to build our project on.
Q5: I read that they will have a rating system, why not rate both, if a lender can also fail? What dAPP will dFUND be based on? Could you give more details about the loans? On which chains will blocks be based on the Q3 of your roadmap?
ANS: The Lender can not fail, just like in real life, because they will be receiving locked up collateral so even if the borrower gets liquidated or defaults on the loan, the lender will just take the collateral. The only way a lender could have a financial loss is if they set the collateral requirement to less than 100%, so this is usually for those who prefer high risks because obviously they will set the interest rate higher for lower collateral.
Q6: What are the factors that determine the scoring system on dfund? How are the top scoring dFunds selected and how many different criteria are taken into account in scoring DFunds?
ANS: In the beginning it will be purely based on roi (profit %). We later on plan to add risk adjustments.
Q7: Some projects hand over their tokens to the whales due to the erratic selling strategy and lose their dominance over the coin. How did you come up with a sales and supply strategy to maintain your dominance over $ dFund?
ANS: I don’t want to have dominance over dFund, I want our community to have dominance, we are a decentralization oriented project. This is why we didn’t onboard too many VC’s and most of our allocation was taken by small retail investors with small buy in amounts. The community should be in charge, our project will have a governance mechanism for token holders, so for example if the majority of token holders wanted me to quit being the CEO, I would quit immediately. We want to put the power in our community’s hands. We are there to serve and build, but I want everyone on our team to understand, our community has the right to replace us with better and more qualified people if we fail to deliver.
Q8: Would there be A
Private sale, public sale and presale?
How would you generate revenue to sustain projecT?
Do you solely depend on your team or Investors and community?
ANS: 2% of hedge fund profits and 2% of loaj interests will go to the company to sustain the project’s development.
Q9: Can you please explain me what's Secondary And Synthetic Marketplace? Never heard of this kind of thing before. How can it be beneficial for the DFUND user?
ANS: It has never been done before. We are the first project doing it! It is similar to the real life bond market. If you are the lender of a loan that has a 10% interest rate, but you are worried the borrower will default or you don’t want to wait for the loan to end to cash out, you can sell your loan in the secondary synthetic marketplace. For example maybe someone will offer to pay you loan amount +4% interest, and then they will become the “owner” / lender of that loan. So the borrower pays to them, you have made a safe exit with 4% profit and he will get a 6% profit (loan interest is 10% but he paid 4% to you). You are making a safe exit while delegating the risk and waiting time to him.
Q10: 🌸On your website it says that borrowers will be rated and classified with a credit scoring system, how can borrowers raise or lower their score? And the Lenders will also be qualified and in what way can we recognize the most reliable lenders?
ANS: Of course, everyone can improve their score over time. Or worsen it. Maybe someone in the beginning has bad luck and defaults on their first few loans and they would have an F credit rating score. But if for a year they never default again and always pay back their interest in time their score will improve and they can also get to AAA+++ eventually.
Q11: Polkadot is becoming very popular in the defi space and I see that you're working hard to become the next big thing on polkadot chain. But to do this one will need to have efficient marketing strategies as well as a solid project. So what key marketing plans do you have to do this?
ANS: We plan to have a combination of traditional marketing, including articles about us in some of the biggest publications, I can’t reveal specific names right now but we are talking about the level of CNN. Also decentralized guerilla marketing such as telegram groups, meme contests, influencers, etc.
I just want to thank you all for showing a lot of interest in our project and I hope to see you all in the IDO which will be announced soon on our Twitter and Telegram. As a special gift, I will also giveaway $100 to one person who asked a question. So please @SabriFR contact me to claim your reward.
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