It has been an engaging and interactive AMA session with tehmoonwalkers community, From OpenDefi Tarusha Mittal & Mohit Madan answered questions from tehmoonwalkers community about OpenDeFi.
QUESTIONS FROM MODERATOR
Let’s start with an intro!, please be so kind and introduce yourselves and talk about your roles in the project?
Mohit: Thanks @tehMoonwalkeR for this wonderful opportunity. I’m Mohit Madan, CEO, and co-founder of OpenDeFi/OroPocket. Our aim is to expand the ecosystem by tokenizing real-world assets and enabling devs to build financial services on them. We have just launched our testnet 2 days back!
Tarusha: Hi Everyone, I am Tarusha, the COO and co-founder of OpenDeFi, we are bridging the gap between real-world assets and Defi. We are tokenizing real-world assets and offering a tonne of financial services on top of these investments. Our testnet went live two days ago and we are live with our pilot of tokenized gold and silver.
What is OpenDeFi/OroPocket, why are there 2 names? why do we need it, what does it solve, and how does it work?
Mohit: OpenDeFi is the decentralized model where we’re tokenizing the assets and building financial services. So far we have tokenized Gold and Silver on it. OroPocket is the fiat ramp and app that enables a no-coiner or non-techy to easily participate. They can instantly buy/sell assets using their credit and debit card. To sum it up, OroPocket is the front-end interface of OpenDeFi. OroPocket app is available on both Android and iOS and users can instantly download it here: https://onelink.to/oropocket OpenDeFi testnet is available here: https://dev.app.oro.network
Tarusha: Oropocket is the user interface for the OpenDeFi protocol. The traditional money markets and the DeFi space have a huge gap. We are trying to bridge it. The idea is to get the big money on the network. The vision is to create a platform that is inclusive, has multiple asset classes and financial services. Ultimately it is about the user – how the user should not be at the mercy of banks, wherein their deposits might not be safe, we are 100% insured and audited. It is all about wealth creation and preservation via highly liquid investments.
Why tokenized Gold and Silver when $BTC is already a better tokenized version of gold? 😀 Can you also send fiat to your bank account with OroPocket?
Tarusha: You have a point but essentially people who believe that is not an all encompassing number. Gold and Silver are usually seen as hallmarks for conservative and traditional investing – we are tokenizing it to ensure that two spheres of investors can see eye to eye with something common that mostly everyone understands. The ultimate idea is to bring multiple asset classes like commodities, stocks, art on the network. We are big on being inclusive. Yes, you can absolutely send the fiat to your bank account via Oropocket.
How can you reach big money? I assume they are very cautious when it comes to crypto and defi, what’s your strategy?
Tarusha: The hurdle is usually the AML laws and KYC. We are offering ease of use, on-chain KYC for the big/institutions to be able to utilize this network. We offer an instant exchange with no price slippage for added comfort.
Mohit: You’re absolutely right. Big/Institutional money has not entered the DeFi space due to several reasons:
- Compliance – The open nature of OpenDeFi allows us to put on-chain KYC solutions to ensure AML is followed, and compliance is in order.
- High slippage and low liquidity – On OpenDeFi there is absolutely no price slippage. Whether you buy for a dollar or a million dollars you’re quoted the exact same price.
- Limited asset classes – The entire crypto-sphere has the availability of only a limited number of asset classes. OpenDeFi is changing that by tokenizing real-world assets and expanding the sphere.
- Limited financial instruments – OpenDeFi is enabling devs to create and deploy complex financial instruments.
- Exposure to assets – Using OpenDeFi, fungibility exists between tokens and real-world assets. This means you can exchange 5 Gold tokens for 5 grams of physical gold.
How is the regulative requirement for this? I assume KYC? anything else?
Mohit: In order for us to tokenize any real world asset, we need 3 parties:
- Insurer: To make sure the underlying asset is completely protected.
- Custodian: To ensure tokens represent the rights to the asset.
- Auditor: For independent reporting and to make sure everything runs smoothly.
Let’s talk about the token, what is the benefit of holding it? and what can I do with it?
Mohit: ORO token is the backbone of OpenDeFi network. We have tried to create ORO into a breathable economy, which contracts when we buy back the tokens from the fee pool and expands with terminal inflation. The breathable nature ensures there are no major pumps or dumps. Everyone associated with tokens strongly believes in it, hence there is a very strict unlock schedule for all parties including investors, team, advisors, etc. Right now the circulating supply is about 4.7 million and a market cap of just 1.5 million dollars.
How is the demand for big money and institutions? Is there already a lot of interest from their side?
Mohit: Yes, in fact, some of our seed and private round investors are keen to move their investments from stock exchanges to OpenDeFi network. Our target for 2021 is to get 100 million dollars of AUM. We’re right now on testnet and in 3 weeks or so we’ll go on mainnet and that’s when we’ll see on boarding of some institutions(deals already in the advance pipeline).
Do you have already partnerships you can disclose or any other data on incoming interest by Big/Institutional money?
Mohit: We have several partners including Matic, Tezos, Elrond, Chainlink, Band, Frontier, etc. Regarding institutions, we’ll announce these with the mainnet launch. Several are already experimenting with our testnet.
Tarusha: https://blog.oropocket.com/category/announcement/ Our blog has all the partnership details 🙂
Please breakdown all the functions of ORO and all the holder incentives
Mohit: Functions and Incentives of Holding ORO:
- Governance Token – You get to own a piece of the market itself and vote on all protocol level changes.
- Instant low-cost loans – Using ORO tokens, users can get instant low-cost loans(starting at 1.5% per annum) in USDC against their Gold/Silver holdings.
- Staking and Inflation – ORO is a breathable economy. ORO token holders shall be able to stake and earn inflationary benefits. More info: https://openfinance.oropocket.com/oro-tokens/tokenomics
- Auto buyback by the protocol – OpenDeFi network auto buybacks the ORO tokens from Uniswap using the fee pool(which stores transfer fee and interest from loans)
- Be part of the revolution – We’re a strong growing community, backed by Tier 1 investors, with a distributed team of 20. Join us to be the change.
Lets talk about the roadmap, whats coming in the next weeks/months?
Mohit: Our mobile app is already live on both android and iOS: https://oro.to/app
- Our test net is already live: https://dev.app.oro.network
- Main net in the next few weeks
- Q1 and Q2 2021 are focused on building financial services and adding more assets to the network.
QUESTION FROM COMMUNITY
OPEN DEFI promotes investment in real-world assets through the synthetic chain. Does this mean that your support is tangible assets? If so, how do they struggle with centralization?
Mohit: Great question. Yes, OpenDeFi allows you to invest in real-world assets, and fungibility exists there, which means you can exchange your tokens for the asset itself(after paying the minting fee). To ensure that our company/foundation does not control the assets, all the physical assets are put under a custodian which makes sure the tokens represent the rights to the asset. All the underlying assets are 100% insured and audited every day.
Does OpenDefi store members’ cryptocurrencies? What can the OpenDefi platform guarantee or promise when it comes to the security and privacy of its users?
Mohit: Nope, OpenDeFi can be accessed using a self-custody wallet like Metamask. Check out the testnet here: https://dev.app.oro.network
The market in the upcoming dynamic season will be quite volatile, most investors will be less active by the end of this year, so OpenDefi plans to organize any upcoming events to implement. More interesting for the crypto market as well as the year-end market?
Mohit: Yes, we have several events, competitions, virtual trade shows in the pipeline. To specifically target traders, OpenDeFi has an inbuilt hedging mechanism that allows them to make money even if the market is volatile.
Why is there no centralized application that fully integrates blockchain technology? What contribution does OpenDefi contribute to the development of blockchain?
Mohit: The Open nature of OpenDeFi enables us to plug and play different chains together and offer a cross-chain transfer of assets, as well. So far we support Ethereum, Matic, and Tezos. We’ll soon be adding Elrond, as well.
How do OpenDeFi Staking and Loans work? Can you elaborate on OpenDeFi’s hedging mechanisms?
Mohit: OpenDeFi has an inbuilt hedging mechanism, that allows traders to conveniently hedge bets and make money.
For example, let’s say you’re holding $1000 dollar of Gold on OpenDeFi. You can instantly post that as collateral and get 700 USDC as loan at an interest rate starting 1.5% per annum.
This USDC you can take to any high yield platform like Abra or Bank of Hodlers which give you a yield of 10-15%.
So you instantly make ~10% while making sure your bets are hedged(as you’re still originally holding Gold)
Will there be a migration or bridge to Polkadot in the future with the rise of gas fees and ETH scalability problem?
Mohit: Yes, we strongly believe in allowing access to assets across chains. In fact, we have built a bridge for the same between tezos and ethereum. We shall soon be adding more chains, including polkadot.
One of the biggest issues for dapps is on boarding. What solutions do you have or the team found to try to resolve this problem?Typically, investors buy tokens that are likely to increase in price in the future. I saw that, total supply of the token is huge.
So, do you have any plan for burning tokens in the future to reduce the supply of the token and increase its investment attractiveness?
Mohit: Several questions wrapped together. Let me address them one at a time:
– Onboarding of users, esp retail investors is challenging for any DeFi project as most of them are complicated to use. We have simplified this by creating a user friendly app that allows users to instantly participate without needing any tech know-how. App is available here: https://onelink.to/oropocket
– Our total supply is 100 million, however, circulating is only ~4.7 million. On top of that we have an inbuilt buy back mechanism. Read more here:
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