Polytrade AMA Recap — 09/06/2021
Thank you to the Cryptowid for participating in Ask Me Anything (AMA) with Polytrade June 09, 2021. This guest star,
Piyush Gupta — ( CEO & founder ) Arus Prakash — ( COO )
We had loads of really excellent quality questions, and although we tried to ask them all in the time we had with Piyush Gupta and Arus Prakash, we simply couldn’t squeeze them all in!
Live Telegram AMA Transcript
Could you please introduce yourself and tell us your carreer before taking part into Polytrade?
I’ve been with the Trade finance industry for the last 15 years with experience in organizations like Societe Grenerale, Kitara Corp, AmiCorp and few other big names.
I setup my own trade finance business back in 2014 and since then have expanded operations to Hong Kong, Singapore, India and Dubai.
Am currently based out of Dubai. At Riqueza capital we have processed invoices worth more than 500mn USD in the last few years... all of which we are confident will move to POLYTRADE. Am an Aerospace Engineering from IIT Bombay by education.
I’ve been working with Fortune 10 companies in my recent past and heading product development & business transformation functions for many of my clients.
Worked with companies like Walmart, CVS, Accenture and the TATA group extensively. Have been in the crypto space for the last 4 years and waiting for the opportunity to bring real world to Cryptosphere. MBA & engg by education.
Q1. What is the simple definition of Polytrade?
Let me tell a bit about Trade Finance Industry to begin with. The overall size of this industry is above 7 trillion USD. while it includes multiple elements one of they and the core pieces of it is Receivables financing. With Invoice Financing and Invoice factoring being two methods of how receivable financing works, the process kicks in when a supplier/manufacturer supplies to a buyer. Typically there is a duration called as Credit period. This is the duration after which the Supplier actually gets paid by the Buyer - Which means if the Buyer receives the goods today, he will only be making the payment 60 days later to the supplier.
This locks up critical capital that the supplier needs to pay his suppliers, employees, maintenance etc.
So in this case, TIME is literally money.
The borrower approaches lending and financing companies today for this working capital so he can pay his expenses.
POLYTRADE intends to provide this much required capital to suppliers at an industry competitive fee structure. We will seek funds from crypto native investors to use our platform to lend us stable coins. These stable coins are then convereted to fiat or otherwise, and given to the suppliers, who then become our borrowers. So instead of waiting for the entire duration of the credit period, the supplier immediately gets access to the cash for his expenses.
The responsibility of collecting the money now has been moved to Polytrade from the Supplier. Now the BUYER, has a liability to pay POLYTRADE. Once payment is received the cycle is complete.
Q2. What are the advantages does Polytrade have? Which makes Polytrade different from other projects out there?
Polytrade has a very organic approach to tackling the century old trade financing market. We do not want to bite more than we can chew. We do not intend to make a business model which is dependent on our partners and customers knowing Crypto. While all our underlying transactions will be logged on blockchain and executed via smart contracts, the user will require near-zero knowledge of crypto. We will become the ramp via which he gets exposed to crypto.
So our platform is going to be easy for on-crypto users at the same time bring in the various benefits of smart contracts and decentralized platforms, by making it quicker and "cheaper" to actually complete the whole process.
Our Investors and lenders will get exposure to a conventional real world asset which is protected from the volatility of the crypto markets.
Q3. Could you provide some information about your Roadmap, And what milestones you have reached so far?
Majority of our focus until now has been around product development and investor onboarding. Wrt product development we are working towards designing and developing the various portals that the product will have. We are also focussed on building our teams to cater to all the requirements that we have.
And on investor onboarding sharing our vision with the industry leaders and proving them our ability to ensure this becomes a reality has been a major task, but a great eye opener to achieve. We have some of the best investors in this space and they are providing invaluable guidance to us in how to ramp up from where we are.
On borrower side, there has been a lot of discussion with our existing customers, warming them upto Polytrade and the various benefits that will be offered to them. They are way more excited about it than us.
Q4. We're so excited to know more about $TRADE token. Could you please tell us more about it, including the supply, and also where it is tradable?
TRADE is going to be the oil that will move this centuries old industry and the processes at Polytrade.
Some of the benefits it will provide in the network are:
"Governance: Allows validated holders to influence protocols decisions.
Staking Rewards: Stake $TRADE to get rewarded
Borrowers: Receive reduced interest rates for staked and payment done via TRADE tokens.
Buyers: Receive discounts on invoices for settlements done on the Polytrade platform.
Service Providers: Receive TRADE for participating in the trade finance economy by performing key tasks of KYC, document validation, credit evaluation, and more (Phase 2)"
We will be having a total supply of 100 million tokens. We are performing certain final tweak to our model to ensure Polytrade gets the right visibility and benefits to our community. Our new tokenomics will soon be published before the IDO.
Q5. Can you give us an insight about the strategy and the future of Polytrade??
Our immediate timeline includes. an updated whitepaper, updated roadmap, updated website, IDO announcement. post IDO our entire focus will shift towards product development which should see a MVO launched in the mainnet within the next 2 quarters. We intend to partner with downstream and upstream businesses within the trade finance area to ensure we become an all -encompassing layer for trade finance.
Our other key focus area is going to be security and safety. We are getting our contracts certified currently and will be periodically doing so with industry leaders in this space. We also will be working with our insurance providers who will also be providing the additional safety for our investors and lenders.
We want to be the biggest crypto enabled end-end Trade Finance company. As far as we understand we are one the early ones taking an approach that we have. We intend to scale organically and scale BIG. That being our long term goal, our immediate short term goal is to get our product out there in the market and get feedback from all our users. Its progressing in an awesome pace. And we are waiting for it to be launched in the market. We expect this to happen within the next 2 quarters.
Our immediate focus of course is launching in the awesome IDO platform that we have been pursuing and get listed and see the price as a reflection of the trust the community has on us.
Q1. From: @Escanor338
Most of the questions people had during the AMA asked about the strengths of the Project . So at this time, can we talk about your difficulties and challenges? What difficulties did you face developing PolyTrade and how did you overcome them?
Thank you for asking that Question. A very valid one as well. While the question is in past tense.. I will try to respond them with Present and future tense. 🙂
We are taking the big role of brining a century old industry to blockchain space. This comes with opportunities and challenges. I will not discuss the opportunities here, but the major challenges that we face.
⁃ Educating the whole ecosystem of Trade finance about how crypto will be used and employed and benefit them
⁃ Making it super simple for a manufacturer/borrower to perform his transaction (even though he might or might not understand the underlying crypto or blockchain)
⁃ Getting buy-in from Crypto investors, cos vast majority of them have not had a need to understand trade finance industry. As they have never invested in this space, as regulation & banks never allowed you to. 🙂
These are the big challenges we are super focussed to address
Q2. From: @TarkYILDIZ4
Is it possible to directly communicate between business users who want to partner with each other as they are a platform for business launches? Could there be an option in your app where associations between brands also work?
As you understand our platform is targeted to become decentralised. This means minimal trust required. While that’s the end goal, the journey will be different.
In our model, the Buyer and the Borrower are definitely known to each other and communicate. Outside of our platform, for obvious reasons as their relationship involves more than what our platform intends to solve.
Ever other participant in our case will have possible conflict of interest and a possibility to game the system to exploit it. For example, we can’t let a service provider performing credit evaluation talk to a Borrower, who is being evaluated.
This can lead to possibilities of malpractices. Neither do we allow the lender to interact with the borrower, as we are NOT doing P2P lending, so will not address any specific issue.
Q3. From: @DaciaPihanna
What is the plan to ensure sufficient liquidity on exchanges to fill market orders, especially as adoption increases and clients begin multiplying year-over-year for your project ?
Wouldn’t that be a golden problem to solve 😉
If the adoption rises and more clients want to use our token, that will obviously increase the value of the token itself.
We intend the market to do its things and behave independently and play the demand supply curve on its own. Our staking program and rewards will be tuned to make sure situations don’t arise where tokens are not available.
Q4. From: @duybaocvc
Currently, PolyTrade token still has an Ethereum platform, which is arguably high and slow. What does PolyTrade think? What do you expect from the Etherum 2.0 platform or build your platform in the futures?
We always hear Ethereum to be High fees and slow transactions… we never hear the concern that it is too secure and that the developer ecosystem available is too large. : )
Valid points though, which is the whole intend of why we are building on the POLYGON chain.
It will reduce majority of the issues being faced by Ethereum users today, while ensuring the requisite amount of security is available as well.
Our future focus will be around expanding the scope of what Polytrade can do in the upstream and downstream trade finance aspects. And scaling our system via bridges to other chains as well.
Q5. From: @Escanor338
Now that technology is changing every second, are you afraid that in the future PolyTrade will lag behind new projects with newer technologies? Do you have a plan for this?
Which is one of the major reason why we chose POLYGON as our underlying platform. POLYGON with its visionary goals and the futuristic roadmap will ensure Polytrade always has a scaled up protocol to operate on.
With the upcoming zkRollups and optimistic rollups adding further security to POLYGON and also their plan to scale to other chains, am sure we will not be behind in tech.
So our concern is not lag in technology. We will focus on building the required functionalities for our trade finance industry...
Q1. I read that with $TRADE borrowers can receive reduced interest rates, normally how much are the interest rates? In what proportion can they be reduced by using $TRADE?
You are right. By lending in TRADE tokens, we will provide extra benefits to borrowers. Typical interest rates could range from 8-10% per annum. However we aim to reduce rates by 2-3% if borrowed in TRADE tokens :)
Q2. I believe that Elite Investors might bring visibility to this project so I want to know if there is any investment plan for community and small investors like us?I believe that Elite Investors might bring visibility to this project so I want to know if there is any investment plan for community and small investors like us?
We have made our investments as distributed as possible and chosen our investors based on their ability to contribute to our ptoject. But to make sure the community gets the benefots of our ecosystem as well, we will be running extremely attractive incentive and staking programs. Which will ensure our long term success. So with visibility that the investors bring, support of community will also be assured. !
Q3. Nowdays So many Rug Pulls and exit scam happening . How Users can trust your project and how you are different from others?
You can check our profiles and would love to meet you all. We are not anonymous and our expereince in trade finance, blockchain technology and business management with nature of background we come from itself is proof that we are not here for the short haul.
Our team is made up of premier Engg and MBA grads and with rich professional experience, which you can verify. So as a team, we are not going to vanish into thin air! 🙂
Now about the project - Trust me when I say this, all our investors, you can check the name on our site, have done a rigorous evaluation of our business model, experience and feasibility of us being able to pull this off.
There will be competitors with similar or different model catering to this industry and our approach to our competitors is very simple, in simple ways same as CZ. This space is nascent and new, the unaddressed market alone is in trillions. so we welcome our brothers from competing entitites to come to crypto space and build the bridges between the real world and crypto world to benefit one and all.
Q4. Which one of these aspects important for you?
1-Increasing Token Price&Value
2-Empowering Platform Development
3-Building Community Trust
4-Expanding Partnership Globally.
In what order?
I wish there was an option for “ALL OF THE ABOVE”. That is how our focus is… There is no one aspect more important than the other.
Which emphasis on each of them could be different at different times focus on each of them are extremely critical and we are all hawk eyed on each of these.
For security - we are continuously in touch with certification partners for audit of contracts and code.
For Products - as mentioned earlier, the team is working profusely on getting ready for the MVP For Partnerships - We already have a few opportunities and looking at more to check suitability for our business model. We will partner with upstream and downstream aspects of Trade finance industry.
For Token Price - Community engagement and Utility are the 2 rows of a boat to gu further. Our community has grown by bounds and we welcome you to join as well to understand the innate value we provide. And for Utility we have created some awesome aspects for all stakeholders to eb happy and useful about.
Q5. Do you have any Coin Burn / BuyBack systems or any $Token Burn plans to increase the value of Token & attract Investors to invest?
Currently we do not have the provision for same. However if governance approve, we have kept the option post 3 years of TGE. This is largely to keep options open in case our community incentive pools dry up.
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