On 6 JULY 2021, Flurry Finance conducted an AMA in the Cryptoscreen Community. Our guest is Mike and Lawrence of Flurry Finance.
Lots of questions as usual from the Community about Flurry Finance progress. The Flurry Finance team took part in a very interesting AMA session which included introductions, questions from twitter, and a live AMA session with the Cryptoscreen community. If you missed the AMA in person, read this recap for a deeper insight into Flurry Finance.
Let’s take a look at the most interesting points of our conversation.
Okay, Before I start the first session can you introduce yourself to our community?
My name is Mike Ting and I am CEO of the project. I graduated from Cornell University with a degree in Computer Science and a master degree from Stanford University. I have spent most of my career in derivatives trading at banks such as JP Morgran and Societe Generale.Amazed at how much digital freedom blockchain can offer, I entered the Crypto Space in 2018.
I co-founded C-Trade, a crypto derivatives trading platform in 2018 and Flurry is our second crypto project.
Hi, my name is Lawrence Wong and I am the CTO of Flurry.I hold a master degree in Software Engineering from Imperial College, London.I have a mixture of tech and trading experience in developing trading systems, pricing and trading fixed income and equity derivatives from various positions held in trading finance institutions such as Barclays Capital, KBC Financial Products and Daiwa Capital Markets.I also founded my own trading company, doing low latency trading in equity derivatives.The explosion of DeFi is really encouraging and opening a lot of opportunities. The success of DeFi shows that gradually, each function in traditional finance is being reinvented in the crypto space.With our tech and trading background, we are in a good position to do something innovative and help contribute to the growth of DeFi and overall in this emerging crypto industry.
QUESTION SEGMEN 1
Q1. Can you tell the members a little about Flurry Finance?
Flurry strives to enhance the usability of DeFi products. There is a lot of innovations going on in Defi. however, the user experience is not catching up with the development and a lot of people turn away from DeFi because of that.We at Flurry believes that investment opportunities should be for everyone! in this journey, we introduce rhoTokens.It will be a cross chain token with price stability but at the same time generate interest from different chains for our users. So users do not have to worry about all the hassle of moving funds in and out of different product anymore!And most importantly, rhoTokens will be maintained a 1:1 peg to stablecoin such that they can be a medium of exchange. In other words, no more Lock Up!
Q2. What do you think are the main features that differentiate Flurry from other projects?
I think the first significant feature is the 1:1 peg that I just mentioned. We achieve that by using a unique interest distribution mechanism (rebasing). To give an example, let’s say you have 100 USDC and mint 100 rhoUSDC in your wallet. When you earn 5% on that amount, we will increase the supply of rhoTokens to pay you the interestso what u will see in your wallet will be 105 rhoUSDC. Through this rebasing mechanism, you can see that we maintain the peg such that 1 rhoUSDC always equivalent to 1USDC. so rhoUSDC is like a enhanced form of USDC, which you can spend like stablecoin but with interest generation capabilitythis convenient feature differentiate us from other yield aggregator
Apart from the rebasing mechanism, another significant feature of Flurry is cross-chain interoperability.Current yield aggregators are limited to Ethereum based products or work on a single chain, whereas Flurry is targeting to work cross chain to look for the best yield after cost on different chains
Think about it. Ethereum stablecoin owners can earn interest on another chain e.g. Matic without worrying about all the hassle of transferring their stablecoin cross-chain through bridges and the complicated minting/ redemption process.
All they have to do is to convert their stablecoin to rhoTokens and hold it to earn interest.
It is super simple and convenient to use.
Q3. Why do you think your team can make Flurry succeed?
first of all, our team had the experience of running a centralized exchange. so we know what users like about the interface and experience. so we know what they think is convenient and easy to use. second, flurry is like a money market fund managing users’ stablecoin. our trading experience definitely help a lot because we used to make a living out of spotting trading opportunities in the market.
On the technical side, both Mike and I studied Computer Science in college and had the experience of developing high-frequency trading robots to trade the stock market in the past. And interestingly, we both started as structurers in banks.
That is a role to structure different financial products to satisfy the needs of different investors.
Most of the products are rule-based and involve a lot of math. That experience helps us a lot in understanding different yield products and coming up with better yield generation strategies for Flurry users.
Q4. What are your ambitions for the future?
There are two things I want to achieve. First, I want to bring in non-Defi users to the Defi space through our whole new easy and simple user experience. Every user and product in DeFi benefits from having Flurry
Second, I want to bring rhoTokens to mass adoption. The current way of yield generation is not efficient and inconvenient. Users waste money on paying fees to mint and redeem while that actually can be saved. in the new way (FLURRY), users no longer have to redeem and mint to earn interest. They can just transfer rhoTokens among themselves and earn interest continuously.
Once the rhoToken is widely accepted as an interest bearing stablecoin, other uses of the rhoToken emerge.
Traders on eCommerce platforms such as eBay, Amazon, Shopify currently use fiat to settle. They have to pay the payment network a fee of 3-5%. They may have to pay a fee for FX exchange, say up to 10% to convert from one fiat currency to another for settlement.
Fiat settlement takes time to settle, could be days or even up to weeks before the merchant actually receives their money from their clients.
Stable coins are now starting to be accepted by traditional institutions like VISA and MasterCard. It will not be long until it is accepted as a viable settlement method. When that happens, anybody who is willing to accept USDC should accept rhoUSDC as well, as rhoToken is only a decentralized wrapper on the underlying USDC.
Imagine if you can sell something on eBay, as soon as the item is sold, you receive the payment immediately, and not only that, you can start earning the best interest return from DeFi the moment you receive those funds.
That’s the day I am most looking forward to.
Q5. What is your progress on your roadmap till now? And what is your future plan in 2021?
We will have our first version of product on testnet within 1 week. please follow us because we will have some campaigns for our users to try out our product.
on the community side, we have reached 9000 members on telegram and 13000 on twitter. we also are in talks with exchanges and wallets for partnerships.
Please follow us on Twitter (https://twitter.com/FlurryFi) and join our announcement channel (https://t.me/FlurryFinance_News) on Telegram to stay tuned.
On the Yield Generation Strategies, so far we have issued 3 rhoTokens: rhoUSDT, rhoUSDC and rhoBUSD. We now have a working prototype that generates interest from Compound and Aave on Ethereum, and soon from protocols like Cream Finance on BSC. We will slowly add more protocols in the coming weeks.
On the Cross Chain plan, we already looking into connecting Aave on MATIC and also we are working on bridging the rhoToken cross chains to MATIC, SOLANA and BSC.
We are also working on a basket stablecoin (rhoUSD) which accepts multiple support stablecoins when minting.
With that, we are developing more yield farming strategies such as farm on AMM pools, and staking of LP tokens to further enhance the yield.
QUESTION FROM TWITTER
Q1. What makes you feel confident about the survival & sustainable success of Your project in the near future?Do you have a Token Burning plan to increase Token value and attract Investors to invest?
We believe Flurry will succeed because we are solving a critical problem in DeFi at the moment and that is the user experience. Flurry will make it so easy and simple to use that even people with no Defi experience and technical knowledge comfortable with.
Regarding the token buy back mechanism, we have a buy and distribute model. What we will do is we will use our management fee income to buy back flurry tokens from the market and then put them back in the staking pool. this is good for token price because: 1) the buy back itself reduces circulating supply 2) the distribute part encourages users to hold on to their flurry tokens and thus less selling pressure.
Q2. FLURRY has a different interest distribution mechanism from existing yield aggregators. What makes this distribution mechanism different?
Interest is given out by increasing the total supply of RhoToken, hence its called a rebase. This mechanism works across chains. Which means that users can hold rhoUSDT on Ethereum, while earning the highest interest from Aave on MATIC for example!
This rebase mechanism is also has efficient. Meaning we don’t waste a lot of gas when distributing interest to users.
And users do not need to pay gas to claim anything.
Q3. What is the way FLURRY generates income to sustain your project and what is the revenue model? How can it be mutually profitable for your investor and project?
we will charge a management fee, initially 10% on the interest generated to cover our cost of managing t he funds. Part of this fee income will be used to buy back flurry tokens as said. the rest will go to a reserve fund.
this reserve fund will act as an insurance fund and the first line of protection against hacks / attack on the protocol.
the above model benefits users by providing insurance to protect them and distribute mechanism benefits investors through supporting Flurry price
Q4. Can you indicate a feature or feature that you like best about the platform so that it can compete with other competitors? What are you most confident about for your platform? Do you have plans to get users to choose your platform?
The rhoToken will be the first stable coin that has interest generation built-in into the coin and works cross chain.
We are not trying to compete with other DeFi protocols to generate a higher yield.
Instead, we are using other DeFi protocols as basic building blocks, or “money legos”, to build on top a more usable DeFi product.
As we have seen in the last 6 months, the DeFi ecosystem has expanded beyond Ethereum, onto BSC, MATIC, and soon Solana and Polkadot.
A multi-chain universe is going to be a reality in the near future.
Managing your funds across different exchanges and Defi protocols is already not a straightforward task. Soon, we are talking about managing your coins over different blockchain networks as well, its only going to make matters worse.
I believe Flurry is trying to fill an important gap in the market by making DeFi more usable and accessible to users, which I believe will contribute to the overall success in promoting mainstream adoption of stablecoins, and more importantly, the development of DeFi and Crypto as a whole.
Q5. Do you have any plans to attract non-crypto investors to your project Because it is the success of a project to get more investors who are still not in the crypto world. What are the plans to increase awareness around your in non-crypto space?
Yes, we do! I believe our team is well positioned to achieve that because: 1) we are from traditional banking and have network with hedge funds and high net worth people who have not entered crypto yet. We are confident we can convince them to try out DeFi products because of our past track record. 2) flurry is about making the DeFi yield generation process as easy as possible. The simplicity makes Flurry the perfect first product for non crypto people to look at
LIVE/ FREE QUESTIONS
Q1. Transparency is important. how did the #Flurry project manage to provide transparency to gain user trust? then have you done an external audit?
yes transparency is important, especially for a DeFi project. All our code will be open source so everyone can see the logic behind our smart contracts. The solution is self custodial, so users have complete control over their funds, and their deposits are held in smart contracts instead of a centralized party. And yes we will have our smart contracts fully audited by Certik, before releasing the product on mainnet
Q2. Who is the target market for your project? How do you convince them to use your product and platform?
Our target audience is anyone who is looking for yield but turned away at the moment because of the unpleasant user experience in the current DeFi space. We will automate everything for you and no more lock up and tedious process of minting and unlocking for earning interest!
Q3. For project development, the main priority is to have sufficient funds. Is your team financially able to carry out? Do you have sufficient funds for development?
Yes, we do. we already secured the funding necessary to develop our product from our backers such as AU21, DuckDAO, OneBlock Capital, GenBlock Capital, etc.
Q4. Marketing is an essential element of every project, so everyone knows the potential that a project can generate. What is your strategy to attract new users and investors and maintain it in the long term?
in the beginning, we will distribute our Flurry tokens as reward for early rhoTokens adopters (so please follow us and capture this big opportunity when we launch). second, we will also rewards users who are providing liquidity in uniswap. users can stake their LP token at flurry to earn Flurry. There will also be a lot of different campaigns such as bug bountry, testnet trial, etc to promote our rhoTokens. We will announce all the details before we launch. so stay tuned.
Q5 .Scaling is a pain point that failed to solve even big Blockchainchain like Ethereum. How Flurry Finance can solve it or What steps will you take to solve Scaling problem?
yes, scaling is an issue on ethereum. But as i said before, we expect the future is going to be a multichain world, where different applications live on specific chains. You might have a chain for Defi, another chain for IoT, and another chain specific for NFTs…
The points is to create applications for the whole world, any one chain is not sufficient. Naturally the ones that are overloaded will either have to improve on the speed and cost efficiency, or left behind by faster and cheaper chains. By having a cross chain product, we dont have to worry about scalability on any one chain. As we work on all of them!
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