Recapitulation of OpenDeFi Finance-OroPocket AMA event held at AMA LOVERS CLUB
Date: Thursday, 22nd October, 2020
Time: 13:00 UTC
The OpenDeFi-OroPocket team was represented by Mohit Madan, CEO & Co-Founder of OpenDeFi and Tarusha, cofounder and COO of OpenDeFi. They both judiciously shared with us detailed knowledge and information about the project.
1st Segment: INTRODUCTION
Q1 : Can you please introduce yourselves and your backgrounds? Also, if you have any more team members, you may introduce them.
Ans : Hi everyone,
I am Tarusha, the cofounder and COO of OpenDeFi.
I have been an entrepreneur for more than a decade and been in the crypto space since 2013. Have dabbled with mining and whatnot. My first crypto startup was an ethereum exchange and now I am working on OpenDeFi — a protocol bridging the gap between real world assets and DeFi.
Hi again, everyone. I’m Mohit Madan, CEO & Co-Founder of OpenDeFi. I have been in the crypto space since late 2013 — have gone through the journey of mining, and then starting one of the first ethereum exchanges in India, and now finally creating OpenDeFi to bridge the gap between traditional finance and DeFi.
I’m blessed to have an amazing co-founder @TMittal
We have been working together for almost last 10 years and this is our third startup together.
Q2 : Can you introduce the open DeFi and oropocket to us, what’s the difference and relationship between open DeFi and Oropocket and what critical problems does it solve that existing solutions are not solving?
Ans : Oropocket is the user interface for OpenDeFi. OpenDeFi is bridging the gap between real world assets and the DeFi space. We are tokenising real world assets on blockchains and then providing financial services on top of these assets, making these investments highly liquid and high performing.
OpenDeFi is creating a bridge between the traditional and defi space, we are merging them by tokenising tangible assets, and providing services like flash loans, staking, earning a rental or a yield on otherwise dead assets etc.
Right now the entire crypto space is < 400 billion dollars — A giant like blackstone or Fidelity can just gobble us up.
This ecosystem needs to grow and we’re doing that by bringing real world assets like Gold, Silver, Stocks, ETFs, Bonds, Premium real estate, art etc to blockchain.
OpenDeFi is bridging the gap between traditional finance and DeFi by tokenising these assets and building financial instruments on top of it.
OroPocket is the frontend layer to OpenDeFi. It works as an easy-to-use interface, and global fiat ramp. It’s available on both iOS and Android and users can download it here: https://onelink.to/oropocket
Q3 : Can you briefly describe the Top milestones you have achieved and your target milestones with timelines? Also share your roadmap.
Ans : Here’s our current roadmap
We’re already done with the fundraising, where we raised $1 million from some of the best investors, operators and funds out there including AU21, TRG Capital, Alphabit, O1EX Capital, Lotus Cap etc.
We have done our Proof-of-Concept by tokenising Gold and Silver, and providing an easy way for users to participate in the network using the mobile apps (https://onelink.to/oropocket)
We have recently closed our funding round of $1million, we have some of the best people from the ecosystem onboard and are looking forward to focusing heavily on the product, now.
We have recently closed some amazing partnerships with Frontier for giving users an easy way to access and stake assets on OpenDeFi.
Another partnership with DFinance will allow users to build complex financial instruments within minutes using the High-Level-Language offered by the DFinance platform.
We’re on our way to closing 7–8 partnerships more
These are some of the milestones that we have closed, recently
2nd Segment: TWITTER QUESTIONS
Q1 : How will the transaction fee be determined for the gold and silver that users can buy with USDC? Could there be additional fees, costs? Also, can we sell gold and go back to USDC?
Ans : Amazing question. The transaction fee varies between 0.1 -1% based on the volume of trade and available liquidity.
Right now we have capped it at 0.25%.
There is no hidden fee for insurance, transfers or anything else.
Users can instantly buy and sell, anytime. Yes, you can sell back your GOLD and SILVER for USD, anytime and anywhere, All you need is our app and an internet connection. :)
Q2 : Just a few hours ago OroPocket announced its partnership with Dfinance. What do you expect from this new partnership? What features of this company will contribute to the development of your project and what benefits will it bring to the users?
Ans : This is one of the best partnerships that we have done till date. DFinance has an amazing High-Level-Language platform that enables users to design complex financial instruments within seconds.
By collaborating with DFinance, users would be able to get access to all the assets available on OpenDeFi, along with inbuild financial instruments like hedging, instant low cost loans, earning a yield on assets, cross chain transfer etc.
This is like a match made in heaven. :
The idea behind this partnership is to ensure that there are multiple financial services available to the users.
Mohit covered it, very well.
More details about the partnership can be found here: https://blog.oropocket.com/announcement/opendefi-announces-new-partnership-with-dfinance/
Q3 : Open Finance said it bridges the gap between traditional finance & Decentralized Finance. How exactly do you aim to encourage participation on your network for sustainability? How do you help longer-term and institutional investors create value for their assets?
Ans : Brilliant question, hitting the nail on the head!
As I mentioned earlier the entire crypto space is <400 billion. Big money from hedge funds, institutional investors are not able to enter this space due to several reasons such as:
- Limited asset classes
- Lack of Compliance
- Lack of financial instruments
- Low liquidity
- Complex and scattered UI
The Open nature of OpenDeFi allows on-chain KYC solutions to be plugged in to take care of compliance issue.
We’re adding several new asset classes with stocks, bonds, ETFs etc enabling the hedge funds to effectively deploy their capital on the DeFi world.
The cherry on the top is that they can earn a yield/rental on top of their holdings without any market exposure.
Q4 : Open DeFi says it offers instant Loans/rental on assets. So how do you aim to mitigate risks such as counterparty risk, collateral risk, liquidity risk, conflicts of interest and other risks tied to default which often pose as threats to DeFi platforms offering loan services?
Ans : On OpenDeFi there are no counterparty risks as you’re not dealing with a person/buyer/seller/lender.
You’re dealing with a smart contract.
If you’re holding Gold worth $1000 you can instantly get 700 USDC of loan at a VERY LOW interest rate of 2–5% per year. This allows users to take this 700 USDC and deploy it on Abra/BankofHodlers or any such platforms that give an upward yield of 10–12%
So users get to make good money, while making sure the bets are completely hedged(remember, you are still holding the Gold).
Q5 : Does oropocket offer loans to stake an asset to earn a rental and much more?
Ans : These are two independent offerings:
Loans: Users can post their assets as collateral and instantly get low cost loans.
Earning Yield: Users can instantly stake their assets to farm $ORO tokens. This allows them to generate a yield/rental on their assets. Since there is no market exposure while the assets are staked, essentially this becomes a zero risk proposition.
3rd Segment: LIVE QUESTIONS
Q1 : When i hear “Oropocket” i think in GOLD (ORO means GOLD in spanish) and in bets too. Does the platform include game bets? or thinking in adding in the future?
Ans : Yes, it does :) We were going with the gold connotation. Not for now, that is not on the roadmap.
Q2 : Why should We investment on your OROPOCKET Project?
Please give some great information about it..🤔🤔🤔
Ans : Oropocket enables you to earn a rental-or yield on otherwise dead assets, enjoy a slew of financial services on tope of the assets/investments which make them highly liquid. One can beat inflation, sneaky bank fees, high cost associated with remittance with Oropocket.
Q3 : OpenDefi raised $1Million in Pvt funding & will not conduct a public sales round, Instead, you plan to offer an exclusive Community Round, can you give us details of this exclusive round and how to participate?
Ans : We have done a small strategic round with tier 1 investors, funds and operators.
In order to make sure that community is able to participate on the same terms as these investors we have opened up a community round. We’re giving 30 community members an allocation of $500 each.
You can apply for the same here: https://bit.ly/OROsale
Q4 : Are OroPocket just designed to save Gold and Silver assets? If yes, What innovations does OroPocket offer in DeFi? How do OroPocket changing the new DeFi ecosystem and what are the plans for the next few years?
Ans : Yes, we are doing a pilot with gold and silver but the intention is to add many real world assets on to the platform, in the coming months like stocks, art etc.
Q5 : You guys are doing Ama’s in all group & almost answering same types of questions again n again? How do You feel about it?
Ans : It’s always fun to interact with new communities and share our vision with them. Honestly, the questions asked here were amazing! :D
Q6 : Can I get gold and silver coins for USDC through the OpenDefi project?
Ans : Yes. The assets are fungible.
Q7 : Is this AMA a part of your marketing strategy / project introduction? besides AMA, in what ways is the project marketing strategy to the public?
Ans : We are bringing in every good operator and project on board and ensuring an association with them to make sure that we grow with the ecosystem :)
Q8 : How will the physical assets be brought to the blockchain? Will it be through NFTs? How will the price of these be determined in order to be able to lend these assets?
Right now we’re working with fungible assets like Gold, Silver, Stocks, Bonds etc. In future we will add non-fungible assets as well such as real estate, art etc.
In order for us to add any new asset, we need to make sure that it is insured, and held by a custodian so tokens can represent the rights to the asset. Here’s a graphical representation for the same.
Q9 : What role will OpenDeFi play in making blockchain very adaptable globally?
Ans : We’re expanding the market itself by adding new asset classes and enabling hedge funds to easily deploy capital on blockchain/DeFi.
Q10 : What is OpenDefi’s governance mechanism like? Who has the right to participate in the voting process? What are the requirements to participate?
Ans : Every $ORO holder has a right to participate in the votes. All network level changes are governed by the community itself. You can read more about it here: https://openfinance.oropocket.com/governance
Q11 : OpenDefi is considered a betting project? Benefits that this brings to users?
Ans : It is not a betting project at all, we are bridging the gap between real world assets and defi.
Q12 : A few days ago we both heard a news headline entitled ‘hacking’, how do Oropocket think about it ?? well, the most important thing is how Oropocket prevents and protects assets from similar incidents.
Ans : All the underlying assets are 100% insured and protected. With the launch of our testnet users would be able to interact with OpenDeFi using non-custodial wallets like Metamask.
Q13 : DeFi project is very popular and there are many DeFi projects right now, what are your plans for now? what makes $ORO unique?
Ans : We’re not just a DeFi project. We’re bridging the gap between traditional finance and DeFi.
We are not a paper napkin project :)
We have already done our PoC and the MVP is live. You can access it here: https://onelink.to/oropocket
Q14 : How does your financial technology protocol work by allowing the custody of real world assets in blockchains and what benefits do developers obtain when creating applications on your platform?
Ans : The Open nature of OpenDeFi allows developers to deploy their own solutions on the network. A good example of this is the DFinance partnership that we recently closed.
Q15 : By bridging real world asset to defi space you may face regulation and licence. How OpenDefi deal with regulation so far?
Ans : OpenDeFi supports on-chain KYC solutions to ensure compliance is followed and money laundering does not take place.
Q16 : Recently OpenDefi has many partnerships with very interesting projects, Why choose a partnership with MeticNetwork? Is this part of the OpenDefi team Strategy to attract users? and What do you want to build together?
Ans : Matic is our “love”
Their layer 2 solution has helped us bring down the transaction cost down to 1/1000th.
Their high throughput allows us to scale effectively.
Their stong community, great ecosystem and amazing team are just added benefits :)
Q17 : What kind of physical assets can be included in Oro Pocket? Will it be only assets from the stock market? Will there be any limitations?
Ans : We intend to add asset classes like art, stocks, real estate etc.
Right now we have Gold, Silver, soon we will see stocks, ETFs, Bonds, premium real estate etc. :)
Q18 : Burning of tokens inflates the cost of transactions. Why did OpenDeFi Finance decided to burn tokens every quarter and what positive impact will the token burn have on the project & users?
Ans : We have tried to create OpenDeFi into a breathable economy. We contract the economy by automatically buying back the $ORO from the fee collected in the fee pool.
On the other hand we expand the economy with terminal inflation.
By contracting-expanding the economy we make it breathable and less prone to pumps and dumps.
Q19 : I was always interested in the question of the name of the project. Where does the project name come from?
Ans : ORO is Latin for Gold :)
Q20 : I like that the platforms offer integration options to funds and investors, could Open Finance or OroPocket allow funds and institutional investors to participate in the economy of blockchain, crypto and DeFi?
Ans : Absolutely! In fact some of our investors are hedge funds themselves, just waiting for the testnet to go live to be able to deploy capital on it!
Q21 : OpenDeFi is tokenising real world assets, which are backed in the platform by an actual physical asset and held by a custodian. Who is the custodian, as a third party does it compromise decentralization, or involves trusting peer?
Ans : Not at all, a custodian in fact makes sure that we(OroPocket/OpenDeFi) no longer have access to it and tokens can represent the rights to the assets.
Fungibility exists between tokens and physical assets so you can actually exchange your Gold tokens for physical Goid
Q22 : Besides gold and silver, are there plans for OroPocket to support other types of precious metals such as platinum, or diamonds?
Ans : This is already in the pipeline, Platinum would be added very soon ;)
Q23 : Do we need #OroPocket to do the staking program and what are the returns against?
Ans : Nope, you would be able to do it by directly interacting with blockchain itself.
OroPocket app would allow non-techies to stake with ease :)
Q24 : If you were to meet a person who was attached to the traditional economic system, who was convinced that money should go to the bank, how would you refute it? How would you convince him to use OpFi to manage his money? I guess it’s a kind of person (or idea) that they have to fight with every day.
Ans : The money that you have in your bank loses its value every year due to inflation.
Just to give you a context on how bad it is:
If you were living in Argentina in 1960 and you had a billion dollars that you deposited in Argentinian peso in bank, by 1994, you would only be left with 1/13th of a cent. The entire wealth wiped away by inflation!
Q25 : Under what mechanism does Open Finance allow the support of crossed chains? And are “plug and play” solutions for asset strings available for all or just for gamblers?
This is one of our best features. OpenDeFi allows free movement of assets across chains without the need of a central body. Here’s a pictorial representation of USDC being transferred from ethereum to tezos chain
Q26 : International transfers has never been easier. Can we send digital assest throughout the globe within seconds without the hefty fees in oropocket?
Ans : Yes, absolutely!
Q27 : Can you explain more about your tokenomics?
Ans : You can read about it here: https://openfinance.oropocket.com/oro-tokens/tokenomics
Q28 : What is the most interesting and deadliest feature in Open Defi? and what makes you sure that your project will not be easily dropped by your competitors?
Ans : Earning a rental or a yield on real world assets, which would otherwise have been dead, hedging etc.
Please before leaving, do you have any Final Words, also do Good to share every useful links to project and any trading links where we can buy
Ans : Thank you once again for the wonderful opportunity. Before we end the session, we’d like to offer a special gift to the AMA Lovers community.
Thank you for this amazing opportunity, it was a lot of fun!
All the community members get 1 mg of 24 Carat Gold for Free, instantly. To claim, signup here: https://oropocket.com/u/?invite=AMALovers
Follow OpenDefi Finance — OroPocket on the following platforms:
… Website: https://opendefi.finance
… Telegram Chat: https://t.me/oropocket
… Twitter: https://twitter.com/oropocket
… Blog: https://blog.oropocket.com
… Instagram: https://www.instagram.com/oropocket
… Facebook: https://www.facebook.com/oropocket
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