AMA Recap of Dude’s Army x Relite Finance

On Monday, April 19th, Dude’s Army community had the great opportunity to host an AMA with Relite Finance’s team, very instructive and educational. We will share with you a little bit of what this experience was like.

The Dude👨‍💼:

To start with a good vibe please intro yourselves and share a bit of your backgrounds!

George Groshkov:

My background is in media and for the past 8 years working heavily in IT. Product and Business Development mostly.

Had the chance to work with big Banks, Telcos, and even the Estonian Government on the E-residency program.

Been in crypto since 2013 and for the past 4 years working only with Crypto Startups.

Consulting and Biz Dev

And in October 2020, me and my team decided to build https://relite.finance/

Most us already working together on various other projects

The Dude👨‍💼:

Wow! Awesome IT and Biz dev background! Glad to know you have been around crypto for a while as well.

Let’s get into in relite finance

Please explain to our community what Relite is doing, what market problem it solves and why Polkadot.

George Groshkov:

ok, that’s 3 in 1.. ok…

I’ll start with issues which we saw in the current lending space

As a starter we see more and more Liquidity defragmentation

Small pools sit on different chains. There’s no real flow between them. So, essentially lack of interoperability

2. High, fees, high collateral. That’s kinda obvious but worth mentioning.

3. Bad UX

Meaning the novice users have a really steep curve to get into real DeFi

So, seing those issue we saw here an opportunity

In Relite we offer cross-chain liquidity. Users can come with their native assets.

For that, we will use the Polka stack.

Then with Polka we can dramatically decrease the fees. And also with your unique pool utilization, we can also give better fees.

Finally, Top-notch UX — we will guide the user along the journey — presenting a detailed breakdown for what is he paying and why, so this is very important for the novice user

Now, we researched and we see good potential in Polkadot. In terms of interoperability, how the Parachains and Relay will be communicating

The growing eco-system and the community also gave us confidence to go with Polka

The Dude👨‍💼:

Definitely. Sounds amazing and I agree that Polka is a great option! So another question: What services will be offered? I saw you would offer lend, borrow and stake. What about trading? Is that part of the plan?

George Groshkov:

That’s interesting question. Well, we don’t focus on that right now. Credit transferability, in the future can be considered, aslo swapping but that of much of trading. We want take have an edge in the lending space. And we know there’s room to grow there.

The Dude👨‍💼:

Definitely. The lending space is huge by now and once crosschain gets on track should be amazing.

Is the product ready waiting for the Parachain or not yet?

George Groshkov:

I’ll open a bit here about parachains

We used to considering going for a parachain slot but eventually we saw that there’s high demand and big capital needed

We decided to go with a partner, which will be nominated and selected for a Parachain

And we tested already their bridge capability

The Dude👨‍💼:

Sounds great!

What about the product? Is it close to be ready?

George Groshkov:

In terms of product dev, most of our MVP contracts are ready

We tested also the bridge (as mentioned) and token movements between Kusama and Kovan, respectively Polka and ETH testnet

If all good with the Parachains, we plan to have a MVP — June, July

The Dude👨‍💼:

So the last question is token utilities then we can move on to community questions!

George Groshkov:

Essentially, our RELI token is a governance token

So, stakeholders can decide on features and fee, so really decided on the direction of the protocol

I believe that’s the way for decentralization.

If you stake RELI in the Reserve Fund you also enable lower fees, better collateralization and you bring safety and stability to the protocol. Of course, for that, you get additional rewards. The Reserve Fund is our kinda “safety mechanism pool”

Then, for Lenders and Borrowers, we distribute RELI every day. 25% is dedicated to Rewards.

And if you are LP — and then you can definitely participate in our Unisway Liq. pool.

Community Questions

Q1 from Young-mi:

I saw that Kyle Chasse from PAID network and Marco Calicchia from Certik is one of your advisor. Does that means your IDO is going to held on Paid network launchpad and the protocol will be audited by Certik?

George Groshkov:

Good observation! Yes, first audit will be done by Certik and IDO will be on Ignition :)

Q2 from Super Girl:

Honestly Relite Finance is not the first DeFi loan project built on Polkadot that I have seen. For a new user it can be really hard to decide between one and the other. If you were one of them, why do you think Relite might be a better choice?

George Groshkov:

I believe there three main points to tackle competition and be really attractive to the community

1. Cross-chain approach from day 1 using Polkadot bridges. Users can use DOT, ETH and other popular chains in one protocol without any wrappers.

2. Unique pool utilization, fixed and non-fixed term pools, Reserve Fund Pool which works a safety mechanism during a shortfall

3. And eventually: Lower fees, fair interest rates for borrowers and lenders.

And one more thing

We are considering adding NFT collateral

this will be a game-changer!

Q3 from Gerardo Soto:

You mention that as the loans mature, the implementation of special conditions will allow predictability and improved conditions for lenders and borrowers, how can the maturity of loans really make the conditions of your platform change for the better? really why not change them before these expiration dates?

George Groshkov:

From one hand when we have enough data on loans, we can learn about the risk appetite of users. That means we can be actually more accurate about what interest to give etc.

In terms of the maturity of the loan, well, that’s in the realm of the fixed income funds. The mechanics there are more predictable due to the more stable yield curve.

Q4 from jeff:

First in mind, as token holder, if I like to stake in reserve pool, I wish to know about the brief mechanics. E.g. what if bad collateral liquidation happens, will our staked tokens get taken out indefinitely?

Lastly, will listing happen right after ido sale, and that mainnet is set to launch right after too, with initial products in tow: Dai pool and reli token staking. Or these altogether will take a month or so right as u mentioned. Thank you.

George Groshkov:

When really bad collateral occurs or really sharp decline in market happens part of the Reserve fund will be used to re-capitalize the system. After a stabilisation in the marke we bring those RELI back to the Reserve. But it will not be “indefinitely”. For instance, some of the bad collateral will be liquidated, some it will be given time. In order not put to much pressure on the Fund but also on the users.

.

Q5 from Gerardo Soto:

Why do you think DAO is the best option to integrate Relite Community and Governance?

George Groshkov:

This is more like a general question for the DeFi Space. But we do believe that we need to disconnect from the old centralised model. We strive for a difference, which I believe is more democratic. DAO will also help people be more pro-active in their decision. And this I think is a good path for Protocol’s improvement.

About Relite Finance

Relite is a money market protocol enabling users to lend, borrow, and stake all crypto assets in one interface. With interoperability at its core, Relite Protocol enables the utilization of ERC-20 tokens alongside other popular chains (Bitcoin, Polkadot), creating a mixed asset basket, and thus enabling lower collateralization requirements, manageable fees, and unprecedented levels of usability.

More information about Relite Finance:

Website: https://relite.finance

Telegram: https://t.me/ReliteFinanceOfficial

Twitter: https://twitter.com/relitefinance

Recaps of all AMA sessions from @dudesignals, one of the most informative cryptocurrency channels on Telegram.