Recapitulation of RikkeiFinance PROJECT AMA event held at AMA LOVERS CLUB.
Date: Monday, 16th August, 2021
Time: 16:00 UTC
The RikkeiFinance PROJECT team was represented by @Tung_vt who judiciously shared with us detailed knowledge and information about RikkeiFinance PROJECT.
1st Segment: INTRODUCTION
Q1: Can you introduce yourself to our community?
ANS: My name is Tung, Co-founder & CTO of Rikkei Finance.
I completed Ph.D. from Nanyang Technology University, Singapore in 2017. I had previously served as AI scientist, researcher at various reputed institutions. Before Rikkei Finance, I was CTO of Rikkeisoft, one of the biggest IT company in Vietnam with more than 1300 developers working in multiple countries, including Vietnam, Japan, Singapore, etc.
With Rikkei Finance, I aim to provide better solutions for the users, enhancing their experience and encourage greater participation.
Q2: How big is the Rikkei Finance team?🤔
ANS: We got a team of 25 people right now. Most of them are developers: solidity, frontend, API. We also got a marketing team and management team. Our Advisory Board includes Loi Luu (CEO of Kyber Network) and John Ng Pangilinan (Managing Partner of Signum).
Q3: Can you briefly introduce Rikkei Finance to us?
ANS: Rikkei.Finance is a revolutionary DeFi protocol that aims remove existing stumbling blocks of the DeFi space with 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.
Q4: What are the core features of Rikkei Finance? How are you different and unique from all other projects out there?
ANS: Well, it's true that there'are big players in the lending field like Compound and AAVE. But we believe that there're plenty of room for improvement and we can still contribute a lot for not only the protocol but also the community.
About the question, the main competitive advantages of Rikkei Finance are:
1. Rikkei Finance is a diverse place for many collateral types. Users are free to decide which assets can be used as collateral based on out asset ranking system. Especially, apart from stablecoins and blockchain-based tokens, users can put their NFT assets up as collateral for a loan, or offer loans to other users on thei non-fungible tokens.
2. Rikkei Finance offfers no-limit cross-chain transaction. Users can lend and borrow any digital assets regardless of its blockchain.
3. Rikkei Finance implements improved interest rate model. Our interest rate model takes into account the cost of borrowing in periods of low utilization rate as well as the cost of capital in periods of high utilization rate, which brings a wealth of benefits to the market and investors.
4. Rikkei Finance promotes worry-free user experiences by liquidation coverage. For the first time, users can ensure their own safety by purchasing coverage for liquidation in their vaults.
2nd Segment: LIVE Questions
Q1:🔸I was reading your website, and I read that your mission is to take "NFT to new heights", but is it in your plans that users can benefit financially from NFT, through your ecosystem?
ANS: We will support NFTs as collateral. Right now, beside selling/buying/holding you can’t do much with your NFTs. We will provide you another way to deal with that. You can earn money by lending it!
Sounds good right? But we all have to agree that evaluting the value of NFTs is tricky part, especially NFTs price can be easily manipulated by a group of users. So, to keep lending protocol safe, for NFTs we will do Peer-to-Peer lending system.
There are 2 NFTs lending cases that we support on the RiFi platform:
(1) You are NFT holder and want to borrow money: You lock your NFT in our system with a price tag. If anyone believe that your NFT worths that much, they will deposite money in, we use that 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 money lender
(2) You have the money and want to borrow NFT: Happen when you play some game, facing a quest that requires a specific item. You don’t want to purchase that item because it’s expensive (!!). You can lock your money in the system and borrow NFT from other person. Return the NFT on time will get you money back, if not, you now are the new owner of that NFT.
Q2: How sustainable is Rikkei Finance? What are the methods you apply to ensure the sustainability of the system? And how do you manage the risk of market manipulation?
ANS: It's true that lately there's many attacks in various sizes targeting different DeFi protocols on BSC. 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. For RiFi, we apply multiple methods to ensure the security of the system:
- Multi-kinked Interest rate model: Instead of applying the traditional simple linear interest rate model, RiFi uses the Multi-kinked model. The strength of the multi-kinked model is that it can handle the stress point of high utilization rate (Ut). At that point, borrowing demand is significantly high and all users borrow at the maximum. As a result, if the market witnesses a significant price correction, it will create a mass liquidation effect, directly reducing the liquidity of the protocol and making the system unsustainable. RiFi's approach is to increase the borrow interest rate considerably to reduce risk and limit borrowing at this time.
- Transparent 5-phase asset selection process. 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.
- Risk management model. Our system sustainability is ensured by controlling the collateral factor closely, setting limit for one-time withdrawal; freezing the supply/borrow when there is an attack; and employing complex price oracle. This allows our system to sustainably respond to any market situations.
- RiFi's source code is audited by experienced parties. There will be a bug bounty program early on with extremely high value as well.
Q3: What is your high standard risk management model? How would your system act in any market situation? How to be sure that the RiFi system will be user-centric, in what ways?
ANS: About our risk management model, I have mentioned in the previous question.
Regarding RiFi's user-centric feature, we enable users to reap the maximum returns when participating in our protocol.
RiFi’s multi-kinked interest rate model makes borrowing less cost-prohibitive in periods of low utilization rate by lowering the interest rate to increase borrowing demand while maintaining liquidity providing incentives with token rewards.
Additionally, Rikkei Finance will collaborate closely with the insurance protocol to give our users the first-ever liquidation coverage, protecting them against smart contract hacks and asset liquidation.
Q4: -They recently announced their partnership with Redkite Launchpad, a cutting-edge launchpad powered by PolkaFoundry. What impact will Redkite Launchpad have on your native token trading and how will this help drive Rikkei adoption in the long run?
ANS: Before making our decision on choosing Redkite as our token launchpad, we had thoroughly researched about it. Although this is a new launchpad, it offers remarkable quality:
1- Transparency: Token whitelist phase is carefully and properly evaluated, this was already done with reference!
2- Holders are truly interested in the project, and are long-term holders, especially the Phoenix ones.
3- Redkite projects are carefully chosen through vetting, which takes everything from the origins of the project teams to legitimacy and implementation capacities into account. Thi, who is Redkite founder, has wealth experience in the operation process, including cancellation, refund private sale program to protect their community. They also launched a loyalty scoring system so as to ensure that users would not cause a big damage to the project. So win-win for both parties!
From the reasons listed above, we believe that listing on Redkite will benefit for both RiFi and Redkite community.
Q5: Most of the projects out there partake in an IDO where early buyers dumps heavily which affects the price of a token. Will Rikkei Finance do the same?
ANS: That's their choices. We're not concerned about it at all!
Though this is not financial advice, CZ once said: "If you can't hold, you won't be rich".
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