CryptoThrust X NAOS Finance AMA
Guests: Kevin Tseng (CEO) & Bob Chien (Head of Growth & Community)
Kevin: I have founded and exited multiple tech startups and was an investor at Alibaba Group, The Walt Disney Company and Fosun Group. Prior to founding NAOS, I founded Foodpanda, sold to Delivery Hero. Zalora, which was sold to Central Group and Lazada, which sold to Alibaba Group
Bob: This is Bob, I’m an experienced founder in the e-commerce and technology space. I’m head of the growth and community to NAOS. My interest in NAOS lies in the value he thinks NAOS will bring into the commerce world. As someone who was a founder of a supply chain company, I understand that bringing real world assets onto chain is the future.
Segment 1- Project Introduction
Q1) Please start off by introducing the NAOS Finance to our community.
NAOS is building a real world asset (RWA) based infrastructure to expand the existing scope of DeFi.
From the DeFi point of view, NAOS allows DeFi liquidity to tap into non-crypto native assets that provide stable and steady income streams; from the real world point of view, NAOS allows real world assets to access cheaper and more diverse sources of funding from the borderless DeFi market.
NAOS differentiates itself with an established network of high quality corporate borrowers, as well as financing licenses, to scale asset origination in a compliant manner.
Looking ahead, NAOS aspires to create a RWA-based layer 1 protocol for all DeFi protocols to innovate on.
Q2) Can you elaborate more on NAOS Tokenomics? What’s the use-case and in your opinion, what would reflect on the price of the token?
The NAOS token is designed to connect Traditional Finance and DeFi
Unlike other pure play DeFi protocols, the liquidity we’re building up is to be used as lending capital in the real world.
NAOS is like a merchant bank, people deposit money into NAOS to learn interest from the real world as well as NAOS tokens.
The deposited money is then lend to corporate borrowers in the real world
the value capture is the increasing interest income from the lending scale, and we’re planning to implement a program where the corporate borrowers will need to hold certain amount of NAOS token in order to borrow.
Q3) What are we doing to make it easier for Traditional Finance to apply loans in NAOS Finance? What can we expect for the next 3 months?
The most important thing is to make it a seamless experience for the corporate borrowers. They want fiat, we give them fiat, they will never have to deal with cryptos and just submit a loan application as they would with a bank or fintech company.
NAOS will handle everything from end to end
we’re launching the beta version for the liquidity protocol, and expect to launch the beta version of the lending protocol in August. In the next 3 months, we will be focusing on product development, and forming relevant partnership.
Our partnership with MakerDao is confirmed and live, there are many interesting ones in the work
Q4) What are the recent milestone NAOS has achieved since its successful IDO? Can you elaborate on your product roadmap and how each components matters in the NAOS Protocol?
As a bridge between DeFi and TradFi, the NAOS Finance Protocol is designed to encompass both funding/liquidity and lending components.
The Funding/Liquidity Protocol, or Formation, is designed for NAOS to build its own liquidity pool used to fund real world assets.
The Lending Protocol, or Galaxy, is designed to emulate the entire asset onboarding and funding process similar to that of the traditional banking process, but with more efficiency and transparency.
Galaxy will be Ethereum and BSC compatible, and will connect to Formation and other lending protocol partners to fund real world assets.
We have also integrated with sushiswap for liquidity mining and MakerDAO collaboration.
Q5) Let’s say you finance a receivable and the Buyer doesn’t pay on the due date. How do you enforce to ensure proceeds are recovered? Do you simply then revert to a real world process of taking the defaulting party to court?
We will create SPVs or trusts for different assets and there will be an independent party that oversees this SPV in order to receive instructions in case of default or other liquidation activities.
For the real world assets, yes, we will have to revert to real world processes to recover the proceeds we have designed a couple layers of protection here 🙂 both on-chain and off-chain off-chian: ALL of the assets we’re working with now are 100% insured, meaning that there is insurance policy to cover any potential default however, we realized that as we scale the operations, some assets will not have the same insurance arrangement.
So for the on-chain side, we designed an insurance staking pool, if there is any default, the amount will be deducted from the pool, in return, the staker will be able to earn more NAOS tokens for the additional risks.
All the assets we onboarded will be placing into an independently managed trust.
You are welcome to join our community to discuss more: https://t.me/naos_finance
Q6) Can you please tell more about SPVs?
The SPV/trust structure is the structure that we decided on with MakerDao
essentially, it’s an independently managed entity that holds the assets
not managed by NAOS or MakerDao.
It will have independent 3rd party directors
in case of default, they will function automatically to liquidate associated assets.
In real world assets, there is no smart contract to automatically liquidate crypto assets.
The key here is to make sure the assets are secured and managed by independent group of directors
Q7) Who are NAOS Finance’s Legal Partner?
You can read more about the collaboration with MakerDAO here: https://medium.com/naos-finance/the-makerdao-mip6-proposal-has-been-approved-85cbc403e893
We work closely with MakerDao’s legal team and our legal team is run by ex-partner of a large law firm in Singapore.
With that said
We’ve engaged Cayman Island, US and Singapore law firms to help co-create the legal structure for this business.
We are working with law firms in New York and Cayman Island as well, making sure that we are not STO.
Q8) Do the NAOS devs believe they have enough of a strong incentive to continue to build yearn and see it be successful?
We have a very strong value proposition for our partners which is the ability for them to tap into real world use cases 🙂 right now, 99% of the projects are only in the crypto ecosystem, and the overall crypto market is still very small compared with real world market if you think about lending (MakerDao, Aave), insurance (Nexus Mutual, Cover), Oracle (Chainlink, Umbrella), they’re all looking for ways to expand into the real world and the key for them to do that will be through NAOS Finance!
We are the largest real world asset protocol, providing the entire ecosystem to innovate and push the boundaries.
We’re already partnering with MakerDao, and will be sharing more about our progress with other partners in due time!
Real world assets are a big market of the next generation Defi application, we are very excited to join the future.
As mentioned in our product roadmap, NAOS is designed from day one to be a self-sufficient lending protocol, we have established our ecosystem to ensure yield and security of the network through our robust partnerships across players in the traditional finance sector.
With our unique value proposition, I believe that NAOS Finance is the bridge and cornerstone for bridging TradFi and DeFi and we will work hard to achieve our vision.
Our testnet is going live soon, so I encourage everyone to participate the testing program.
#NAOS is calling for product testing warriors! 🔥
👩🏻💻 Countdown begins for #Formation #Rinkeby testnet launch! We’d love to get your feedback on any and everything! Testing is FREE but your time and effort is not! So, a retroactive reward program is in the works. Stay tuned for more details!
Please start collect testing ETH at https://faucet.rinkeby.io
Q9) DeFi is one of the hottest and most sought-after topics in the blockchain space right now. Can NAOS share your opinion on DeFi with us? Do you think DeFi will disrupt the current financial system? What is NAOS’s approach to the DeFi sector?
DeFi has proven to be the best blockchain application and is here to stay
the explosive growth in TVL indicates mass adoption among crypto users
however, crypto users is only 1% of the population, if at all
and the TVL on chain is just a tiny fraction of the available assets in the economy.
For DeFi to continue its growth trajectory, DeFi must tap into the real world and make connection there.
We already seeing traditional banking system adopting DeFi’s automated market making settlement technology.
There are tons of things DeFi can offer to the real world, but we believe the first step is to bring real world assets on chain at scale.
Segment 2- Questions from Twitter
Q1) I found it interesting that you are additionally working on the possibility of tokenizing hard assets such as real estate, precious metals, equipment and commodities. What additional benefits would there be in making loans with these assets? What potential do they have?
We are now focusing on coporate debt and supply chain finance sectors, but yes, we are also interesed in many other type of assets.
The benefits to connect the RWA to Defi is very obviouse. Connecting the RWA is our goal. DeFi and CeFi can be considered as a two way street. Moving CeFi’s assets to DeFi as the main goal, and on the other hand, DeFi provides liquidity to CeFi. We are aiming to be the bridge between these two worlds. NAOS plays a role of as commercial bank, which provides the liquidity from MakerDao or Compound to CeFi borrowers.
As for how to introduce real-world funds into DeFi, this is a topic that all DeFi projects are working on.
During this time, we have begun to see virtual currencies begin to be accepted in the traditional market, from Tesla, BlackRock, and Goldman Sachs. , Square, Paypal, Visa and other traditional corporate giants.
We believe that in the future, the continued low interest rate from traditional financial market and inflation will accelerate the process of moving RWA entering DeFi.
NAOS is building a financial platform based on real assets, paving the way for the next step of DeFi.
Q2) How does Naos finance to solve the many problems that exist today in traditional finance?
Here are the thing that we believe that we can do.
1. Enables the origination and funding of loans without traditional intermediaries
2. Instills full transparency in the previously opaque risk assessment and loan application process
3. Breaks the geographic boundaries for lenders and borrowers to transact in a borderless fashion
4. Transfers financial value (interest spreads, service fees) from financial institutions to lenders and borrowers
5. Offers the best interest rate on any comparable loan of the same risk profile and terms
6. Transfers custodial ownership of accounts from financial institutions to individuals
7. Democratizes irrefutable and immutable loan performance data that was held closely by centralized institutions
8. Solve the issue of overcollateralization in the DeFi space by leveraging safe, stable and insured assets off-chain to back our investor’s on-chain activities.
9. Accelerates the growth of the overall DeFi ecosystem with real world applications
To accomplish these ambitious goals, we need more than participation from the DeFi community. Join our discord: https://discord.gg/5Bx9AeZE
Q3) As a Lending-based platform will Naos Finance also involve Staking, Mining, Farming and NFT which are currently popular among the wider community and provide many benefits for its users?
Yes, we will have the popular functions that community loved. I encourage you to read more about this article.
Our testnet is going live soon so we would like to have your participations: https://t.me/naos_finance
Staking and mining is an important product design for NAOS. In addition, we will be allocating part of the revenue to conduct token buyback.
Q4) All the asset originators and lenders go through rigorous KYC and AML processes, how is this data stored to protect the identity be privacy of the lenders?
So we have two pools. The senior tranche is designed for institutional lenders such as MakerDao and the junior tranche is designed for retail DeFi users. There is no KYC required for the junior tranche and the KYC process is done through our KYC partners, data is not stored on NAOS.
Q Bonus) Does KYC partners store the data? And how secure the data there?
No, the KYC is done in the manner of TRUE/FALSE. Just need to make sure the money flow does not come from regulated countries such as North Korea.
Q5) Naos Finance platform works with effective interest rate model in dynamic periods, can you to give me more details about the interest rate and how it affects the platform’s services and the users in general?
The interest rate is not dynamic actually. Think of taking a loan from the bank, you usually have two options:
1. fixed interest rate
2. floating interest rate tied to LIBOR
in our case, we offer fixed interest rate to the borrowers.
Segment 3- Live Telegram Session
Q1) Are you planning to integrate with other different blockchain technologies to expand the ecosystem and generate more trust?
yes, multi-chain strategy is our core strategy. We will be integrated with BSC and then will other chains as well.
Q2) Do you have any Coin Burn / BuyBack systems or any Token Burn plans to increase the value of Token & attract Investors to invest?
Yes we do have buyback mechanism.
Q3) Currently, NFT is very hot, do you think you will apply NFT technology to your products in the future?
We have already applied NFT to our asset origination. More over, we have announced that we will be working with SOLV in the effort of building a RWA based DeFi infrastructure! You can read more here: https://twitter.com/naos_finance/status/1400010797762322434
Q4) There are lots of pump and dump project in the market. How is your project different than others? What are your plans for project sustainable long term growth?
We are fortunate to have an extremely credible investor base, including Coinbase Venture, CMS, Lemniscap, Huobi, OKex and Alibaba Group.
We shared the same vision to build NAOS for the long run.
Q5) The project name is really interesting and something people can never forget. Why did you choose this name for your project?
NAOS is the brightest star outside of our galaxy, when people talk about a projecting go to the moon, we want to go further!
Q6) NAOS FINANCE will aim to support any kind of assets, which is a huge goal. What is measurement will you implementing to avoid scam assets infiltrating NAOS FINANCE system?
We work with many asset validators to ensure the quality of the assets. Also, assets need to be proven to be true and have insurance coverage.