Dear Community,
Thanks all for participating in our Nord Finance AMA. We really appreciate all your support. There were really good and thoughtful questions that were asked. For those who missed our AMA, this blog post is for you.
Introduction!
Mayank – Hello @amarnath_reddy welcome to CryptoNationIN π₯³
Amarnath – Hi Thank you , happy to be here ! Hello everyone
Mayank – Before we start, could you please give a brief introduction about yourself?
Amarnath – My self Amarnath CEO of Nord Finance , I have been into crypto since 2017 end, the exact last bull run. I was fascinated by the technology and volatility of the industry, we then Co-Founded Amesten Asset (crypto Hedge fund) along with Sachin jain, taking care of operations and Research analyst for early-stage blockchain startups.
After leaving from Amesten in Sept 2020 , I have Co-founded Nord Finance along with Jignesh who is lead Developer at Tezos India Foundation , he also worked on financial platforms with Ethereum & Hyperledger Fabric.
Nord finance is an advanced decentralized financial ecosystem designed to simplify DeFi investing by bringing key features of traditional finance to the DeFi ecosystem. We want to be an investment banking on DeFi .
Mayank – Could you please tell more about Nord Finance to the community.
Amarnath – Nord finance is an advanced decentralized financial ecosystem designed to simplify DeFi investing by bringing key features of traditional finance to the DeFi ecosystem. Designed as a blockchain agnostic platform with multi-chain interoperability, we aim to offer users an easy access to a plethora of financial products including, but not limited to, yield-farming aggregation, funds management, Robo-advisory, and loans against assets.
At Nord Finance, we are building a one-stop advanced decentralized financial ecosystem for its userβs investments to meet their financial goals. Within the Nord Finance ecosystem, we are building 4 key products:
Nord.Savings
Nord.Advisory
Nord.Loans
Nord.Swap
Mayank – Amazing! Also not much time left for Nord IDO on PolkaStarter. Excited for this π
Amarnath – Yes its planned on Jan 12th , very soon
Mayank – Yeah ππ»
Twitter Questions
Q1. On January 12, 2021, you announced that it would hold an IDO at PolkaStarter, the leading Cross Chain auction protocol. What is the advantage of doing an IDO on PolkaStarter and what benefits will it have for your project and users?
Amarnath – Polkastarter is a permissionless DEX built for cross-chain token pools and auctions, enabling projects to raise capital on a decentralized and interoperable environment. We believe in the decentralization that is the reason we are doing our IDO on polkastarter . Followed by Uniswap listing. Then we slowly move to CEX for catering the needs of all user types.
We have our IDO on polkastarter on 12th Jan and immediately listing on Uniswap same day with $373K initial market cap with very low initial supply of 4.14%. NORD Finance Whitelist Form – Phase 2 i Starts at 9th Jan 2021 at 12:00PM UTC.
Q2. What roadmap Nord finance plan for Q1 Q2 Q3 Q4 2021?
Amarnath – Nord Savings V1 on ethereum is planned to be launched in Jan 2021, followed by our liquidity mining program and applying stable coin yield farming strategies. Savings V2 is planned in Q1 2021 which will be extended to other blockchains such as the binance chain , matic , tezos and polka dot ( not in any particular order). Then we have a road map to launch swaps, loans and advisory etc.. . More can be found at https://nordfinance.io/.
Q3. Can you share your fundraising situation and how your private and public offering tokens are distributed? And what are the plans for the next IEO/IDO? What should we prepare if we want to participate?
Amarnath – Fund raising details can be found here !
http://news.yahoo.com/nord-finance-raises-1-23m-104200710.html?soc_src=community&soc_trk=ma
https://nordfinance.medium.com/nord-tokenomics-and-distribution-edba056bf6e1
https://nordfinance.medium.com/nord-finance-nord-announces-its-ido-on-leading-cross-chain-auction-protocol-polkastarter-4f34bcfbf07d
Q4. To me the success of a token depends of its utility on its ecosystem, so can you tell us how many usages or application have the $NORD into the ecosystem ?
Amarnath – $NORD token has various utilities in the Nord Finance financial ecosystems:
Liquidity Mining: In order for the Nord Finance ecosystem to function properly, users would need to be incentivised to play the role of liquidity providers and stake their digital assets into the market making pools. As compensation for opportunity costs as well as impermanent losses, these liquidity providers which help to promote adoption of the Nord Finance ecosystem by staking or including assets to liquidity pools would be rewarded with $NORD tokens (i.e. liquidity “mining” programs on the Nord Finance ecosystem), according to each user’s relative contribution after various adjustment and correction parameters.
Incentivizing programs: Users can earn $NORD token incentives by participating in the platform, for example trading/exchanging, or development of new strategies for the vault.
Distributing Fee Rewards: In order to stimulate participation in the platform , $NORD token will be distributed as rewards to users for various contests and community giveaways.
Community governance incentives: The $NORD token holders will earnestly participate in the protocol’s governance by voting on various proposals regarding product upgrades. Users will be required to stake their $NORD tokens in the staking program to participate in governance and vote on proposals, and as a reward they will be able to earn additional $NORD tokens proportionate to their contributions.
Service fees: For the services rendered a small fee/profit share would be charged by the protocol in $NORD. These fees will be retained in the protocol treasury.
Cross Chain Settlement: Using the $NORD token as the base platform currency, $NORD will expedite digital asset swaps between compatible blockchain seamlessly.
Q5. “π₯On Nord Finance Website, I See Nord finance have 4 key products
1.π‘πΌπΏπ± πππ―π’π§π π¬,
2.βπ π£π πΈππ§ππ€π π£πͺ,
3.ππ€π§π ππ€ππ£π¨,
4.βπ π£π ππ¨ππ‘,
So, Can you explain us the role of these these four products in your ecosytem and how does it helps to keep NORD ahead of its competitors? And When these are launched?
Amarnath – Nord.Savings: Allows optimizing returns through a multi-chain yield-farming mechanism for stable coin farming with the highest possible risk-adjusted returns. To maximize returns, the protocol employs the highest risk-adjusted APY’s. Whereas it leverages the DeFi Score framework to assess and analyze the dynamics of protocol risks. Nord.Savings provides a seamless interface to access the world of DeFi-based yield farming effortlessly without any technical implications as the traditional financial counterparts.
Nord.Advisory: An inbuilt robo-advisory service designed to chalk out profitable and customized strategies for users to hold better positions based on their financial goals. The automated robo service analyzes the user profile and evaluates personalized solutions that will help accomplish the users’ financial goals by employing a diversified portfolio. The data-driven proprietary algorithms facilitate unleashing the potential of a certain portfolio by executing smart tactics. This service is a revolutionary move as the technical nitty-gritty of the DeFi landscape might seem a bit complex for novice users, thus demanding assistance for the same.
Nord.Loans: DeFi users can leverage their crypto assets to their greatest potential by pledging them in smart contracts to avail loans for unanticipated circumstances. The process to avail of an instant over-collateralized loan is quite uncluttered and hassle-free. This is a smart alternative to borrowing loans without liquidating the crypto assets to meet financial obligations. It also offers a personal overdraft facility with the benefit of paying interest while withdrawing the amount.
Nord.Swap: Built on the Ethereum Network, Nord.Swap is a blockchain agnostic permissionless instant swap protocol driving cross-communication and interaction of virtual digital assets effortlessly. The future of decentralization rests in multi-chain. Therefore, Nord.Swap powers innovation by offering a multi-chain swap facility for DeFi users. This is one of the essential aspects of a decentralized future.
These are the brief overview about our products !
Telegram Questions
Q6. Originally the name of the project was Slick Finance and then changes to Nord Finance, so Easy a clear, what is new in Nord in comparision with its older version?
Amarnath – We believe the brand name should truly represent the purpose of the brand. With that thought, we felt that as we evolve our brand-name should evolve with us.
As we searched for our new brand-name, NORD resonated with our core objectives: Inclusiveness, Community Governance, Maximization & Security.
More can be read at https://nordfinance.medium.com/slick-finance-is-evolving-introducing-nord-finance-5f1352a2196d.
Q7. How will $ NORD tokens be used for this exact purpose?
Amarnath – $NORD token has various utilities in the Nord Finance financial ecosystems:
Liquidity Mining: In order for the Nord Finance ecosystem to function properly, users would need to be incentivised to play the role of liquidity providers and stake their digital assets into the market making pools. As compensation for opportunity costs as well as impermanent losses, these liquidity providers which help to promote adoption of the Nord Finance ecosystem by staking or including assets to liquidity pools would be rewarded with $NORD tokens (i.e. liquidity “mining” programs on the Nord Finance ecosystem), according to each user’s relative contribution after various adjustment and correction parameters.
Incentivizing programs: Users can earn $NORD token incentives by participating in the platform, for example trading/exchanging, or development of new strategies for the vault.
Distributing Fee Rewards: In order to stimulate participation in the platform , $NORD token will be distributed as rewards to users for various contests and community giveaways.
Community governance incentives: The $NORD token holders will earnestly participate in the protocol’s governance by voting on various proposals regarding product upgrades. Users will be required to stake their $NORD tokens in the staking program to participate in governance and vote on proposals, and as a reward they will be able to earn additional $NORD tokens proportionate to their contributions.
Service fees: For the services rendered a small fee/profit share would be charged by the protocol in $NORD. These fees will be retained in the protocol treasury.
Cross Chain Settlement: Using the $NORD token as the base platform currency, $NORD will expedite digital asset swaps between compatible blockchain seamlessly.
Q8. What exactly is your Robo consulting service, how do you categorize the user profile and investment requirements in this field, and how does Robo consulting create investment strategies?
Amarnath – User Risk Profiling: Nordβs risk profiling mechanism evaluates the userβs risk profile based on their risk required, risk tolerance and risk capacity to accomplish the userβs financial goals.
Risk required determines the optimum amount of risk needed to achieve the financial goals while the risk tolerance and risk capacity act as the balancing factors to determine the level of risk the user is comfortable with.
Thus, the risk profiling framework chalks out the optimal level of risk/drawdown that a user can possibly tolerate in relation to the expected returns.
Portfolio Rebalancing: Data-driven proprietary algorithm deploys stablecoins in a diversified asset portfolio in tandem with a user’s financial goals. Due to the dynamic nature and abrupt volatility of digital virtual financial primitives, portfolio rebalancing facilitates adjusting risks intermittently to minimize user’s risk exposure through advanced automated solutions. Certainly, it restores the users’ portfolio to its target allocation with a desired asset mix by divesting underperforming assets and purchasing the ones which potentially surge.
Q9. When they tell us about Nord Loans, they explain that users can benefit from a loan with excess guarantee, which can cover any unforeseen expenses, what would be the term that users would have to pay that loan? in case of not complying with that time will there be any penalty?
Amarnath – At NORD users can leverage their crypto investments to their greatest potential by pledging them in smart contracts to avail loans for unanticipated circumstances. The process to avail of instant over-collateralized loans.
Assets held under the NORD protocol are defined as the portfolio value. This portfolio can be used as collateral to borrow from the protocol.
To determine the available borrowing limit a collateral factor is used. This factor represents the portion of the underlying portfolio value that can be borrowed.
In case any accountβs borrowing outstanding exceeds their borrowing capacity determined by collateralization ratio, a portion of the outstanding borrowing needs to be repaid at the current market price minus a liquidation discount. Thus, the token value at which the borrowing needs to be repaid in case of liquidation will be lower than the market price.
Q10. Zero cost transactions, is this really true π€―π³ ?! how is this supported?
Amarnath – “Nord.Finance also pools liquidity from multiple users. As more users adopt Nord.Finance, the Smart Contract achieves economies of scale. Thus, achieving near zero gas fees compared to the gas fees paid by traditional yield-farmers.
As we are going to pool the funds for interacting with protocols , the fee paid is only once in stead of user being paid by self for each interaction. We are optimizing the gas fees ,making it to as low as possible . There wont be any upfront fee for the users all the fees are adjusted in final APY https://nordfinance.medium.com/how-does-nord-savings-work-part-2-b70483631273″
Thank you to Amarnath Reddy (CEO & Co-founder) and Community for participating in the AMA. Have a nice day.
