AMA Recap With Cryptoverse Community
Hello everyone!! It has been a wonderful AMA session with Cryptoverse India Community over telegram. From the OpenDeFi team, Tarusha Mittal and Mohit Madan had joined the discussion and loved the amazing 200 + questions asked by the amazing community. It is not possible to answer all of them due to limited time.
Cryptoverse India: https://t.me/cryptoverse_india
Here are a few amazing questions asked by community members.
Here it goes:
What does the Opfi team think about long-term competitors such as traditional financial institutions, and what long-term strategies do they have to embrace traditional financial consumers?
We really don’t think of traditional financial institutions as competitors, but rather they’re our target market. Right now these institutional investors and hedge funds are not able to participate in the DeFi space due to several reasons, such as a limited number of asset classes, lack of financial instruments, lack of compliance, price slippage, etc. OpenDeFi solves these problems and on top of it, allows them to earn a rental/yield on the assets that they’re holding on the network. Since all the underlying assets are insured, and the tokens represent the rights to the asset, it becomes extremely easy for them to simply move their holdings to OpenDeFi.
With this, big money should start moving to the crypto space, thereby expanding the ecosystem itself. :)With the Open nature of OpenDeFi and partnerships like DFinance, Frontier, etc, developers would be able to create their own financial products and offer them to network participants.
What do you think OpenDeFi can make the difference compared to other DeFi Protocols? the presence of XAU and XAG?
We’re simply a bridge between traditional finance and DeFi. We ran a pilot with Gold and Silver and got great results. We are now working on adding more assets and building more financial services on top of it. The open nature of OpenDeFi allows different chains, assets, and dapps to join the network. Right now we’re on Ethereum, Matic, and Tezos. We’d be adding support for other chains soon as well. So $XAU is not a competitor per se, but one of the assets that could be added to OpenDeFi 🙂
Oropocket is a tokenizing real-world asset that is backed by an actual physical asset and held by a custodian. Who is that custodian, as a third party does it compromise decentralization by involving trust?
In order for us to get real-world assets to blockchain and effectively map their value, we need three parties:
Insurer: To make sure the underlying asset is 100% protected against theft, natural calamity, war, etc.
Custodian: To make sure the control of the asset goes away from the foundation, and tokens can represent the right to the asset.
Auditor: To make sure everything runs smoothly and all data is transparently available.
Here’s a pictorial representation of the same.
What is the current regulatory framework to operate within OpenDeFi? Is it globally open or are there restrictions by country?
OpenDeFi is an inclusive network. It is globally accessible and open. For some asset classes, the holding asset countries can put up KYC restrictions which can be easily solved with the On-chain KYC solutions.
The Gold and Silver market is low-volatility, while the cryptocurrency market, on the contrary, is very volatile. Why did you decide to unite these markets? How can a cryptocurrency market participant benefit from OroPocket?
We started with Gold and Silver, for several reasons.
- They have highly liquid international markets
- People in India regularly invest in them
- hey have been beating inflation constantly
Soon we’d be adding wrapped and bundled crypto as asset classes to OpenDeFi as well 🙂
How does Yield Staking differ from other staking types? Is there a limitation for staking our assets and can we use the interest rewards earned as we wish?
OpenDeFi allows you to earn a yield on your assets. This allows you to earn a rental or create a passive income source. The formula used for calculating yield is described in detail here: https://openfinance.oropocket.com/yield-farming
Why did you choose ERC-20 to support $ORO actually this Network has so high gas fee for transactions ?
Charlie Munger once said, “Fish where there are Fish”.
While we’re building on the Ethereum network, the Open nature of OpenDeFi allows other chains to join the network. So far we’ve integrated with 3 chains:
- Matic: For high throughput and low fees.
- Tezos: For great on-chain governance.
The cross-chain support allows assets to move freely between chains, thereby enabling users to leverage lower costs and better speed for their transactions.
Do you plan to include a broader range of assets in the future? Can you disclose more about the direction that you are thinking?
We plan on growing in two ways:
- Horizontal: By adding more assets and asset classes like stocks, bonds, exchange-traded funds, etc
- Vertically: By building more financial instruments like CDS, asset-backed cards, etc.
My personal question for you Mohit, DeFI market is so competitive these days many people don’t believe in Indian projects. how we tackle these hurdles?
I think that India is rising, and we can see several great projects coming out like Matic, EasyFi, Unilend. I believe the future is ours, all we need to do is stick together, build an ecosystem that encourages innovation, and celebrated both wins and losses.
We’re giving away 1 mg of 24 carat Gold to all community members who have participated in the AMA.