AMA Recap of Dude’s Army x Formation.Fi
On Friday, May 7th, Dude’s Army community had the great opportunity to host an AMA with Formation.Fi’s team, very instructive and educational. We will share with you a little bit of what this experience was like.
To start with a good mood please share a bit of your background and how you started Formation Fi.
I come from a traditional finance background and started my crypto journey working with Harmony protocol back in 2019. However, after I went on to start my first defi project which involved cross border transaction and conducting OTC deals with kraken, galaxy digital, huobi and a lot of these major otc desks, after that just helped genesis shards with their launch and finally on this journey to bring formation to the community as well.
However, as a team I believe we are definitely serial entrepreneurs but more importantly builders: We have experience in running VC funds across silicon valley, strong experience in running large gaming companies, strong marketing and digital understanding of the market, experience in companies like Accenture as technology and corporate strategy consultant, Deutsche Bank in its global investment banking division , Morgan Stanley, JP Morgan, etc.
As for Formation Fi,
We really wanted to bring this project because we truly felt currently The platforms on the market do not address any of these huge concerns of risks while Yield farming, everywhere you go they only talk about how much money you can make and hide the idea that you could also lose a lot.
Formation’s main objective is to truly end the ongoing need for yield chasing and making yield farming much more practical for the entire space and ultimately take that next step to make DeFi to the next level.
Formation Fi is revolutionizing portfolio construction by introducing a risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks using the basic principles of the Risk Parity movement.
We are creating a platform where you can easily manage Through our systematic architecture that constructs a risk-adjusted portfolio that optimizes the return-to-risk ratio for each unit of risk, ultimately delivering a superior return over time. If you want a easy example, think about a hedge fund portfolio that is optimized to give you relatively similar APY returns but during times of slippage and rugpull we will be able to minimize your losses.
Tell us more about it. How will it work? When to expect the platform to be live and what should be the steps and benefits at v1.
Also how will the token work out in the platform?
As for how it will work, I will try to make it as simple as possible:
Currently if you want to Yield Farm, there is a pretty big learning curve when it comes to understanding the ways around it from portfolio construction (picking each single individual lp token) one by one , staking, unstaking, changing chains, etc. THIS IS TOO TIME CONSUMING
Formation Users: will have access to “Index Tokens” on our platform where they will own one single “index token” which consists of lets say 40–50 different yield farming strategies, lets say 70–80 different lp tokens, and essentially farming on multiple different chains.
For v1: it is expected to go live 3–4 weeks after IDO, we will have the first index token “ALPHA” strategies and people will be able to experience simple and effective yield farming
As for token, If you read about our Utility Token ($FORM) you will find out that it is much more than just simply a token. The FORM token will have triple utility from:
1. FORM token entitles its holders a right to vote
2. a portion of future net income generated by the protocol
3. exclusive access to the secret Dark Pool’s only accessible to the members of the Formation FI ecosystem.
WE truly believe that the community will love these benefits because it will allow them to have a lot of different ways of being rewarded and ultimately make money by being a part of our ecosystem.
Q1 from Kevin Salom:
Could you explain how you guys do the countertrend asset matching? Is it easy to find them? Many token follow the movement of Mother BTC unfortunately.
This is a great question: In order to achieve true risk diversity and use some of the fundamental basis of risk parity movement, we will have to find these countertrend assets. What makes us so unique is we are making our constructing our own indicators and we will own these so called “strategies”.
As the market matures, there will be more and more negatively correlated assets coming out and showing themselves, but yes its true BTC is the main driver to a lot of the coins on the market. However, we are also synthetically making assets that will also have negatively correlated returns to ensure we can create this balanced portfolio, and use derivatives, and even leverage.
Q2 from ℝ𝕒𝕚𝕤𝕓𝕖𝕝𝕪𝕤:
Could you tell me about the four classes of yield growing strategies within Formation Fi (ALFA BETA GAMA and $ FORM)? In short, how does each one work? Which do you think is better for new users who invest little capital?
ALPHA — Cross-chain yield farming strategies with liquidity mining programs offered by leading DeFi projects to maximize APYs. Leverage: Yes / Risk: High
BETA — Cross-chain thematic ETFs each built specifically around the core infrastructure building blocks of Web3. Leverage: No / Risk: Market Average.
GAMMA — Cross-chain stablecoin based yield generating tokens from top DeFi lending and asset management protocols designed to offer a fixed monthly income.
Leverage: No. / Risk: Low
PARITY — Collection of cross-chain yield farming strategies weighed and optimized by risk in response to environmental changes. Leverage: Yes. / Risk: Adjusted.
As for new comers, its all about how much tolerance you have, GAMMA would definitely be the most stable and if you’re just looking for stable fixed upcome like a corporate bond paying coupon payments
Q3 from JA:
Hi Sir Edmond i was intrigued by reading your Formation Fi roadmap that in Q4 of 2021 you will launch F Cash Debit Card. Can you tell us what will be the utility or role that F Cash Debit Card will play within Formation Fi platform?
Yes the FCash Card is going to be something special, however only will be rolled out to specific individuals and specific locations and then slowly ramped up. Essentially our idea is we don’t want capital and assets to be stuck and we want it to be fluid. What if you could be yield farming in the back, and also spend that yield. The card will essentially be letting you use the yield generated from farming and some percentage of your assets as well.
Q4 from Habibi VE:
It is rare to talk about DeFi without talking about NFT. Will you work with them? Will you have interesting investment strategies with them as well?
For NFTs, we are definitely going to listen to the community and see what things that they want to have incorporated on FORMATION platform. I believe you will be extremely happy and excited to see what we have in-store when we decide to release some NFT angles on the product. Yes, as we mature and time goes on we will have the best and newest investment strategies out because as you know a lot of the best money making strategies are only reserved for the top 1% and is almost never leaked for public consumption and use.
Q5 from Ang Bronx:
Hi, seems this projects is very under the radar but has a very big vc backings, any plans for marketing strategy to gain traction and do you plan on listing your token on big centralized exchange?
Yes besides strong VC backers, we also were very picky on who we wanted onboard. We decided to choose great industry leading founders like Bancor, Synthetix, Polygon, etc. because they understood how to survive a bear market and actually was able to create something special (although it took time). Theres no question that making a good product will take some time and we wanted to surround ourselves with some of the best builders in the space!
As for marketing, we are looking for very organic growth and people that truly believe in the project to come over and have a chat. However, our main goal is to educate as many people as possible about our project and allow them to have a clear understanding of what we are building because we would love them to be apart of the journey!
I would say a lot AMAs, we will host a lot of cool campaigns for community members to have a chance to get $FORM Tokens, etc.
In addition, we are already talking with big centralized exchanges to make sure that after IDO we will start getting listed on them to gain more users from each platform.
Q6 from Tolga:
Will Formation consider adding networks which have their own blockchains like Secret Network to connect via bridges? Limits are big ones?
Currently we have made the custom bridges for ETH- BSC, and in the process of HECO chain. However, we decided to choose these major chains since they had the most TVL. But definitely in the future, we will monitor chains like cardana, polkadot, etc. and see when its time to make these bridges.
About Pendle Formation.Fi
Formation Fi aims to revolutionize portfolio construction by introducing a risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks.
More information about Formation.Fi: