Rikkei Finance AMA Recap — 09/06/2021

Thank you to the Cryptowid for participating in Ask Me Anything (AMA) with Rikkei Finance June 10, 2021. This guest star,

Tung — ( Co-Founder &CTO )

We had loads of really excellent quality questions, and although we tried to ask them all in the time we had with Tuung, we simply couldn’t squeeze them all in!

Live Telegram AMA Transcript

INTRODUCTION

Could you please introduce yourself and tell us your carreer before taking part into Rikkei Finance ?

Tung

My name is Tung, Co-founder & CTO of Rikkei Finance. I completed Ph.D. from Nanyang Technology University, Singapore in 2017. I had previously served as AI scientist, researcher at various reputed institutions.

Before Rikkei Finance, I was CTO of Rikkeisoft, one of the biggest IT company in Vietnam with more than 1300 developers working in multiple countries, including Vietnam, Japan, Singapore, etc.

With Rikkei Finance, I aim to provide better solutions for the users, enhancing their experience and encourage greater participation.

Well, Hoa (CEO) and I both come from a company named Rikkeisoft, one of the biggest IT company in Vietnam. We were working together on blockchain for a while already. Rkkeisoft has invested in some blockchain companies since 2019, some of them become really successful.

After that, we realize that blockchain is gonna be the technology of the future. That’s why we decide to carry out our own project - Rikkei Finance.

SEGMENT 1

Q1. Can you introduce yourself to our community?

Tung

—

Q2. Can you provide us with a brief description about Rikkei Finance?

Tung

In simple words, Rikkei finance (RIFI) is a lending protocol.

The core features include cross-chain support, NFTs collateralization, and p2p insurance. It utilizes blockchain tech that enables cross-chain integration, meaning it can accept digital assets that operate on any blockchain network and render it at an equivalent rate, making them a real-time currency exchange network as well.

Q3. What is the most ambitious goal and the ultimate vision of the RiFI project?

Tung

Rikkei Finance aims to provide better solutions for the users, enhancing their experience and encourage greater participation.

The vision of RIkkei team is to build a very safe, solid and convenient protocol that makes lending easy and secure.

Q4. What are the core features of Rikkei Finance? How are you different and unique from all other projects out there?

Tung

Well, it's true that there'are big players in the lending field like Compound and AAVE. But we believe that there're plenty of room for improvement and we can still contribute a lot for not only the protocol but also the community.

About the question, it is our 4 main features that make us different and unique from other projects:
1. Rikkei Finance is a diverse place for many collateral types. Users are free to decide which assets can be used as collateral based on out asset ranking system. Especially, apart from stablecoins and blockchain-based tokens, users can put their NFT assets up as collateral for a loan, or offer loans to other users on thei non-fungible tokens.
2. Rikkei Finance offfers no-limit cross-chain transaction. Users can lend and borrow any digital assets regardless of its blockchain.
3. Rikkei Finance implements improved interest rate model. Our interest rate model takes into account the cost of borrowing in periods of low utilization rate as well as the cost of capital in periods of high utilization rate, which brings a wealth of benefits to the market and investors.
4. Rikkei Finance promotes worry-free user experiences by liquidation coverage. For the first time, users can ensure their own safety by purchasing coverage for liquidation in their vaults.

Q5. Please share about the fund raising process of Rikkei FInance!

Tung

Let me share with you guys some information about the fund raising processes

Actually, we didn’t raise any money for the seeding round. We developed our product first, and then when it’s running on testnet we introduced it with individual strategic partner and investors. The evaluation at that time is $30m and $40m respectively.

We raised $1.2m for strategic round and $4.4m for private sale.

The usage of fund will be used as below We believe that the fund is enough for 2nd phase developement

SEGMENT 2

Q1. From: @roykimocheng

With Blockchain being the future...and yours being the marketplace for developers...How do you plan to provide safety measures to create safe storage for their collections and creations ?

Tung

It’s true that lately there’s many attacks in various sizes targeting different DeFi protocols on BSC. They exploit different weaknesses of the protocols, normally including (1) Bugs in source code (2) manipulating token price and (3) bad risk management control model. For RiFi, we apply multiple methods to ensure the security of the system:

- Multi-kinked Interest rate model: Instead of applying the traditional simple linear interest rate model, RiFi uses the Multi-kinked model. The strength of the multi-kinked model is that it can handle the stress point of high utilization rate (Ut). At that point, borrowing demand is significantly high and all users borrow at the maximum. As a result, if the market witnesses a significant price correction, it will create a mass liquidation effect, directly reducing the liquidity of the protocol and making the system unsustainable. RiFi’s approach is to increase the borrow interest rate considerably to reduce risk and limit borrowing at this time.
- Transparent 5-phase asset selection process. Through this process, assets will be evaluated using a self-developed Liquidity Ranking System, ensuring that only the most liquid assets are allocated to the pool, minimizing the risk of market manipulation and thereby ensuring system sustainability.
- Risk management model. Our system sustainability is ensured by controlling the collateral factor closely, setting limit for one-time withdrawal; freezing the supply/borrow when there is an attack; and employing complex price oracle. This allows our system to sustainably respond to any market situations.

- RiFi’s source code will be audited by experienced parties. There will be a bug bounty program early on with extremely high value as well.

Q2. From : @ahmedsamna6

Can you share some details about recent major achievements done by your project? Also, what are the future roadmap and targets of your project?

Tung

Fundraising is finished. We has successfully raised $5.6M.

About the team, we are consolidating our team, especially the Marketing team. We are working hard to bring our project to the community.

About the product, the development phase is almost done. We are in the process of auditting right now.
Our top priority is to launch a core lending platform, which will be supported by a package of other self-developed products as well.

First, we plan to introduce the Liquidity Ranking System around the middle of June. The Liquidity Ranking System is developed to ensure the transparency of our asset selection process and our system sustainability. Assets will be evaluated and ranked based on multiple liquidity metrics, then be further analyzed and entered into the voting section before being officially added into the pool.

Next, we will deploy Liquidity Vault at the end of June or early July to allow retail users to provide initial liquidity into the system and earn rewards.

Then, we plan to launch the lending product in the middle of July. The lending protocol will then be progressively expanded to several platforms, including Etherium, Polkadot, Fantom, and Solana, by the end of 2021. We will also support NFTs in the second half of 2021.

Q3. From: @krisna120491

Seeing the current explosion of NFT in the market has created a real gateway to esoteric and somewhat closed off decentralized finance. How does Rikkei Finance NFT create a bridge and provide its own NFT sales market?

Tung

We are not going to build any NFTs marketplace or to provide any type of NFTs minting services/tools. We want to focus on lending protocol and lending protocol only. Building a solid, safe and sustainable DeFi system like that requires focus and a lot of work.

We will support NFTs as collateral. Right now, beside selling/buying/holding you can’t do much with your NFTs. We will provide you another way to deal with that. You can earn money by lending it

Sounds good right? But we all have to agree that evaluting the value of NFTs is tricky part, especially NFTs price can be easily manipulated by a group of users. So, to keep lending protocol safe, for NFTs we will do Peer-to-Peer lending system.

There are 2 NFTs lending cases that we support on the RiFi platform:

(1) You are NFT holder and want to borrow money: You lock your NFT in our system with a price tag. If anyone believe that your NFT worths that much, they will deposite money in, we use that money to lend to you. Before the deadline, if you return the money, you get your NFT back; if not the NFT is now owned by the money lender

(2) You have the money and want to borrow NFT: Happen when you play some game, facing a quest that requires a specific item. You don’t want to purchase that item because it’s expensive (!!). You can lock your money in the system and borrow NFT from other person. Return the NFT on time will get you money back, if not, you now are the new owner of that NFT.

Q4. From: @bitkita

Does Rikkei Finance have an incentive program running at the moment and how we can benefit from it? Where and when were the prizes from the incentives program distributed ?

Tung

Right now, we are super excited to Launch a series of Creative Community Contests to help you reap lots of rewards!

You guys can participate in these contests to know more about the project and earn FREE RiFi token.
We are holding a total of six competitions with prizes culminating in a sum of $70,000 in airdropped $RiFi tokens.

We are holding a total of six competitions with prizes culminating in a sum of $70,000 in airdropped $RiFi tokens.

Contests include:
⚡️ $RiFi $20,000 Airdrop Engagement Contest
⚡️ RiFi Article Contest ($14,500 RiFi worth)
⚡️ Meme Contest ($8,500 in RiFi)
⚡️ GIF Contest ($8,500 in RiFi)
⚡️ Telegram Sticker Contest ($8,500 in RiFi)
⚡️ Video Contest ($10,000 in RiFi)

https://finance.yahoo.com/news/rikkei-finance-announces-series-creative-134000675.html
https://thenewyorkage.com/rikkei-finance-announces-a-series-of-creative-community-contests/

For further rules and details, read here: https://medium.com/rikkeifinance/rikkei-finance-community-creative-engagement-competition-22b410681276

Good luck to all!

Just by having a look at Rikkei Finance - rikkei.finance and grasp the information about Rikkei Finance, you can be one of our competition winners. Remember to invite your friends to join in on the fun!

Q5. From: @krisna120491

The "double-threshold" loan interest rate model that Rikkei FInance offers is the uniqueness and advantage of this method? And what benefits do the users get?

Tung

We apply Multi-kinked interest rate model instead of traditional linear interest rate model.

There’s nothing wrong with the linear interest rate model, however, there are a couple of points along the line you need to pay attention to, to make sure that your system is safe.

Our Multi-kinded interest rate model tackles 2 key points that traditional model does not address: one to make borrowing less cost prohibitive during periods of low utilization, and another to boost liquidity providing incentives during periods of high utilization.

(1) At the stress point, when everyone is borrowing at max capacity. If there’s big price correction (flash dip) in the market, everyone got liquidated and you can just simply go bankrupt. That why’s at this point (Ut) we expotentially increase the borrow rate.

(2) At the lowpoint, when noone want to borrow anything. We find the way to lower the borrow rate without trading off the supply rate.

At low point, users get more benefits, at high point, the protocol is so much safer. So win-win for both parties.

SEGMENT 3

Q1. What is one of the competitive advantages of Rikkei Finance?

B. Cross-chain support

Q2. What are the utilities of RiFi token?

A. Payment, governance, reward.

Q3. What is the order of the transparent 5-phase asset selection process of Rikkei Finance?

D. Data crawling - data filtering - liquidity measure and ranking - analysis and asset selection - asset addition.

Q4. What types of vaults will Rikkei Finance release for the community to participate in their staking program?

D. All the answers above.

Q5. What are the reasons for the investors to hold RiFi token in a long-term?

C. Both A&B

AMA FINISHED

Follow Rikkei Finance social media :

Telegram : http://t.me/rikkeifinance_official

Telegram Announcements: http://t.me/RikkeiFinance

Twitter : https://twitter.com/RikkeiFinance

Website : https://rikkei.finance/

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