AMA Recap of Dude’s Army x Konomi

On Friday, March 14th, Dude’s Army community had the great opportunity to host an AMA with Konomi’s team, very instructive and educational. We will share with you a little bit of what this experience was like.

Dude👨‍💼

We will start the AMA

Welcome @yige910627!

Jayden

Hi really nice to be here.

Dude👨‍💼

Great to have you with Jayden.

Dude👨‍💼

Share a bit about your background and how you got into Konomi.

Jayden

Sure.

Hi everyone, this is Konomi’s COO and Co-Founder Jayden. I have been working in Singapore after graduating from the National University of Singapore with a major in electronic engineering, I used to be OFO’s regional manager in Singapore, responsible for OFO’s expansion and operations in Singapore. Later I founded Mileslife, A technology startup company that used technology to improve the efficiency of the tourism industry. I have been interested in blockchain and Bitcoin since 2015, so I participated in Bitcoin mining and ICO investment in the early stage. At the beginning of 2020, I felt that DeFi has really brought application scenarios to the blockchain, so I joined the Konomi project founded by several NUS alumni. Currently, I am responsible for the operation of the project and business development in China. Most of our team members are still based in Singapore and the focus of the project was mainly on development.

Just a quick intro of myself you guys may check out our website for the detail of other team members.

Dude👨‍💼

Amazing! Loved it!

Interesting background! Let’s get into Konomi now.

Jayden

Let’s go

Dude👨‍💼

Explain our community what Konomi is doing in a way that maybe even a no coiner can understand it.

Jayden

To make it really simple we are building a cross chain finance infrastructure for the Polkadot ecosystem.

Dude👨‍💼

Ok too simple haha.

Jayden

The vision of Konomi at the beginning of its establishment was to enable financial applications on Ethereum to seamlessly connect to the Polkadot ecosystem, and to provide the users with a complete asset management experience — from liquidity protocols, to lending market, as well as the management of ecosystem assets.

A little bit more elaboration in layman term.

Dude👨‍💼

Perfect

How will the asset management work? Will it be automated or will it be a tool to help out people to manage their assets manually?

Jayden

It won’t be auto mated at the moment. When I said assets management it simple means the products where the users can used to manage their assets.

For example like our core product the pool lending modules and AMM modules which allow users to trade their assets as well as borrow and lend assets.

Dude👨‍💼

Ok! Let’s get into it

Explain us a bit more how it works and how it can be used as an advantage.

Jayden

Konomi Lend is a decentralised money market protocol for users to borrow and lend assets. The product is currently based on a collateralized debt position model. It is an important milestone for crypto assets to have compound interest and this feature could incentivise users to hold the assets. DOT will be first supported as the default collateral, since it is the native currency in the ecosystem. As the parachain and para-thread auction is launched, there will be more room for innovation in financial products since projects will need to bid for DOT supporters in order to share the consensus in the Polkadot ecosystem. Komoni Lend also has the capacity to become an alternative solution for projects to raise DOT in exchange for their project tokens. For example, projects could accept DOT as a collateral to borrow the native tokens issued by new projects and receive interests.

Here you go.

Dude👨‍💼

Loved it! That’s what I was looking for.

Ok! Let’s break down into it a bit.

How will the lending work? How will be the steps to borrow/lend #DOT? And how will be the fees/apy for borrowing and lending?

Jayden

The functionality is quite similar to Compound and AAVE. Basically users has to supply assets into the pool and they can earn APY. Their supply assets can work as collateral to borrow other assets we will support multiple mainstream assets when it’s live not just DOT

But what make us difference from Compound is our liquidation and collateral models please feel free to read our white paper and medium articles for the detail of APY calculation

Dude👨‍💼

Perfect! Nice! It’s great to have a product which works similar in a UI/UX perspective to these old main lending projects to make adoption easier. Understood that others will be acceptable just wanted to use DOT as an example.

Perfect. In terms of APY calculation you can just screenshot and drop here if you have it ready

But let’s get into token utility!

Jayden

Let me do that later.

Let’s move on first.

Dude👨‍💼

Can you comment with us how will the token works on the ecosystem?

What are the advantages of being a token holder?

Yes, of course.

Jayden

Decentralised governance

The design and implementation of the protocol would be determined by token holders. For parameters like pool staking fees, transaction fee burn, liquidity mining ratio, are initially set by the protocol itself; token holders could update the numbers and the smart

contract itself based on the voting process. In order to encourage users to participate in the process, there could be some profit set to reward the voting participants.

As a decentralised product, getting liquidity is crucial for the user experience and platform adoption. Therefore, a large proportion of the Konomi tokens are reserved to encourage users to add liquidity to the platform and to use the products. By depositing assets to the protocol, users could automatically market make for the protocol.

In designing the user incentives, the protocol also takes into consideration the long term sustainability of the token. As there are more liquidity mining programs launched by DeFi protocols, users tend to participate in those programs in order to earn tokens rather than to fulfil their true needs. In the meantime, as more tokens are generated, there is continuous selling pressure to the network if no strong use case is designed to create demand for the token. Therefore, in designing the liquidity mining program, priorities would be given to long term

Konomi token could be staked to participate in the base layer consensus and earn system rewards. It is also the staking currency to share platform revenue and ensure that the debt positions are safe.

Anyway we are developing the governance module which will be ready by mid Q2

Dude👨‍💼

Perfect! So Governance✅

Staking rewards ✅

Platform revenue✅

Thanks for it @yige910627

Before we move on to community questions feel free to share any additional content/topic

You can maybe share public sale info now.

Then we open up to community

Jayden

Ya we are doing an IDO on Polkastarter on Tuesday. Please follow us for the detail and we we reveal our listing plans after the sale

Dude👨‍💼

Perfect!

Dude👨‍💼

Let’s start community questions

Q1 from Gipotenuza 2017 Alts:

What are your plans regarding oracles as I have understood you are planning to implement one at least in the longer run, will it be in-built or external? Wouldnt this ultimately make your ecosystem potentially vulnerable to some bad actors within the market?

Jayden

Nice questions, we have developed an oracle using substrate off chain worker which works well for now. It will be used for our testnet for now but we are going to integrate other Oracle in future when they are ready to integrate with us. Please stay tuned with us as we have a big announcement regarding to Oracle coming up on Monday

Q2 from Aleksei:

A very large proportion of the KONO tokens are reserved for incentivizing your users/investors. What are the ways that you are using in order to incentivize the users of the platform besides some essentials such as liquidity mining or staking pools?

Jayden

I can give a quick example here. We are building a crowdfunding module now so our supporters could support us with Dots for the upcoming auction and their reward will be more than normal dots staking

Q3 from The Raccoon:

Looking through your project there was a rather interesting advisor acquired, PayPals leading blockchain strategist Jhonathan Padilla. What kind of a role does he play to Konomis ecosystem and could this lead to a deeper partnership with Paypal in longer term?

Jayden

JP helps us with the connection to traditional finance. We would definitely like to explore more synergy between Crypto world and fiat world.

Q4 from Noé:

When I deposit assets in your lending group, will my funds remain locked for a period of time? Or could I withdraw at any time without any penalty?

Jayden

For now you can withdraw anytime for better liquidity but in future we will let the community to decide this. Of course the APY will be different

Q5 from Sofía Isla:

In your whitepaper, I found out that Konomi will use the Cross-String Message Transfer (XCMP) feature to support cross-strings asset transactions. Could you explain me more in depth about this function, what is its importance in the project and how would a successful validation come out of this?

Jayden

As i’ve mentioned, other options are: i) huobi IEO (huobi is our investor); ii) DODO crowdpooling; iii) Initial bonding curve offering; iv) other platforms such as DAO maker, polkastarter.

Q6 from Rmitch

Is InsurAce capable of Crosschain insurance? If yes How many chain it will support?

Oliver (InsurAce)

Yes, that’ in our roadmap, we’re planning to head to BSC and Polkadot. but we won’t do that until we’re good and solid on ethereum first.

Forget to mention that our investor lineup.

About Konom

Konomi is a decentralized liquidity and money market protocol, and full suite asset management solution for cross-chain crypto assets. Development framework powered by Substrate. With T1 funds onboard and Polkastarter IDO this week it should be one of the most awaited launches in the space.

More information about Konomi:

Website: konomi.network

Telegram: https://t.me/konominetwork

Twitter: https://twitter.com/KonomiNetwork