DeFiato AMA #2 — Technical Deep Dive with Jeremy Khoo, CIO (Recap)
On 2/11/2022 at 2:00 p.m. (PST), an AMA session was held on Avalaunch with special guest Jeremy Khoo, DeFiato’s Chief Investment Officer. Below we present to you an excerpt from AMA with questions and answers.
Dave Donnenfeld | Avalaunch
Hello and welcome everyone to the sequel of our first AMA with DeFiato. This is our vaunted Deep Dive but first — DeFiato represents an initiative that aims to onboard “normies” into the world of decentralized finance.
And we think it is important. Today, we are lucky to have @JJdefiato back at the helm
Jeremy Khoo | DeFiato
Hello everyone!
Lovely to be back! Cannot get enough of this ??
Dave Donnenfeld | Avalaunch
Hahaha. I want to believe that but know you’ve been becoming quite visible on the AMA circuit.
I further know that Dr. Nguyen’s contributions to today’s discussion will be well represented and we appreciate you conferring with him on this.
Jeremy Khoo | DeFiato
That’s ok really! Anything to share the Defiato story!
100%! He would have loved to be here himself, but he is unwell so I will take his place.
Dave Donnenfeld | Avalaunch
To begin and to get a grander sense of the team and it’s overall vision — How did the respective background of the founders contribute and create the vision for DeFiato
Jeremy Khoo | DeFiato
Yea of course. Let me mention how I met Dr. William perhaps, since I was already introduced yesterday.
Dave Donnenfeld | Avalaunch
Understood. I was leaning towards Dr. William’s background some but didn’t want to take any shine off of you.
Jeremy Khoo | DeFiato
Firstly, Dr. William was also the founder of Beowulf Blockchain and a serial entrepreneur with a history of successful ventures in blockchain, communication technology, education, and computer/network/data security.
Over the past 10 years, he built many social networking, cryptocurrency exchanges, on-demand video streaming, and communication applications serving tens of millions of users worldwide in the areas of business communication, media, education, and entertainment. He was also the former Alfred P. Sloan Postdoctoral Fellow at Harvard Medical School. Before Harvard, he was the Institutional Doctoral Fellow in Computational Science at the Lawrence Livermore National Laboratory.
Dave Donnenfeld | Avalaunch
This I had learned and thought it was worth mentioning. You don’t see many this erudite in any industry. You’re certainly in good company and speaking of company….Defiato is led by a team of experts in various areas including Web3, software development and finance. Also sitting with an in-house team of 20+ active developers. How did this accomplished team assemble, considering the difficulty of finding such experienced devs?
Jeremy Khoo | DeFiato
Under Dr. William’s leadership, he has had very extensive experience in the building of blockchains and infrastructure level projects over the past couple of years, especially from a team lead position. By having worked with many serious talents over the years, he accumulated a large network in the technology space with the blockchain developer talent pool. Naturally, conceptualizing a project like Defiato requires a lot of top tier developers with skin in the game. With the talent pool he had access to, it wasn’t too difficult convincing many of them to join the effort.
Dave Donnenfeld | Avalaunch
Yeah, you need some serious grey matter to make something of this magnitude go. Good on you all for being able to be founded and attract this “God tier” of talent as Defiato is a financial platform dedicated to the crypto community but also with a route to-and-from fiat. Can you describe the core concept of the platforms’ solution for both farms and swaps, and how the fiat system is leveraged to access both of these products?
Jeremy Khoo | DeFiato
Essentially, Defiato is an interface between the thousands of defi services out there and a core of custodianship in the centrally secured module. The technology route is therefore a method to remove intermediary processes by automating it into an elegant construct of automated functions that spring into action the moment a user executes. There is no need for interaction with a Web3 wallet and countless steps and procedures with defi services. (nothing wrong with that, it’s just not the most user friendly for mainstream at the moment).
When we included Fiat, which is rolling out in a couple of days, what happens is that an intermediary partner, necessary for this critical function, would provide for the component of onboarding the fiat into a token format that can in turn be used to interact with the steps mentioned above. Users from all over the world (but the sanctions nations) would be allowed to deposit fiat. This would be entirely KYCd process for compliance reasons.
Dave Donnenfeld | Avalaunch
I’m glad you didn’t have to say that all out loud ?”Interface between the thousands of DeFi services…” is enough. As with many earning, lending/borrowing/collateralization platforms there are fees involved. How is the fee system designed to expand future development/plans of the ecosystem?
Jeremy Khoo | DeFiato
The platform fee structure is built to charge a percentage share of the profits from yields generated from the farms (or other mechanisms). Likewise, there is a percentage charged as platform fees once again on swaps conducted on defi DEXes using Defiato.
Both these fee structures allow the platform to scale effectively. In other-words, with more TVL and demand for swaps, the platform scales almost proportionately, giving Defiato a high capability to expand on its competencies and build even better products for its user base.
Of note, DFIAT token will be utilized for a 50% fee reduction from the standard platform fee. Currently, we charge 0.2% for swaps and 20% of farming profits for yield farming. If users use DFIAT token, user only need to pay 0.1% for swaps and 10% of farming profits for yield farming.
Dave Donnenfeld | Avalaunch
Scale is as challenging a thing to achieve as there is in the space — A novel approach developed by the team to create a different standard is the One-Click-to-Farm notion underlined by a proprietary technology. Are you able to expand on this technology and the benefits it brings with it, and maybe touch on why this can be a game changer?
Jeremy Khoo | DeFiato
This is perhaps the most important USP besides our cross-chain support capabilities. We have simplified the process of farming so you can simply click one button and we take care of all processes.
This means that should a user wish to interact with any ongoing Defi smart contract, be it a farm or a swapping mechanism, they only need to carry out that interaction with a single click, and the automatic function will conduct the rest “magically”, bypassing the need to authorize the standard 10s of steps.
As we have constantly said, this is the key to mainstream, where we keep the processes simple and clean. Every step in Web3 without Defiato is a world of potential exploits, hacks and pitfalls for mainstream users. Defiato aims to simplify and more importantly, secure the way users interact with Defi services.
Dave Donnenfeld | Avalaunch
At this risk of being redundant, it is an impressive suite of services you have. One interesting and valuable aspect of the project is that the platform is already up and running, so users can farm and swap their coins. Is this the final version or are there more developments underway?
Jeremy Khoo | DeFiato
Defiato is a defi aggregator. This means we will keep adding on new chains and Defi services. As long as Defi can dream it, Defiato can add it. Also, as we are cross chain in terms of support, this is one of the few products out there that the user can use without fear of issues with bridging and oracles failing out there. Bridges today are also quite unsafe to use for most.
We solve this with our own internal reconciliation systems. You can deposit BSC, and immediate farm on Avalanche. In the near future, you can even own NFTs on Ethereum and borrow on the Solana platform! All without going through a single bridge. Even with these examples I just mentioned, you can already have a sense of the potential capabilities of Defiato.
Dave Donnenfeld | Avalaunch
Along that line of thinking “wen Neo?” I quip, but in terms of future developments, at the moment the platform currently supports Ethereum, Binance Smart Chain, Polygon, Avalanche and Solana, which is already quite a range of blockchains. What is the next phase of blockchain integrations, and are you able to give a timeline?
Jeremy Khoo | DeFiato
We will continue to support most blockchains. There are a couple coming up as we speak! For example we are rolling out support for Terra soon. More importantly, we are in a lot of discussions to onboard multiple Defi farms, DEXes and even loan platforms which form the core consumer product for our users.
Of note, we are also looking to bring on NFT capabilities as mentioned earlier. In terms of timeline, we aim to include 2 more chains in this quarter, and subsequently keep the momentum of 3 chains per quarter (including their stable of defi services). Of course, this strategy can shift according to demand and user feedback.
Dave Donnenfeld | Avalaunch
With the plan for expanding into more blockchains, what are the next coins in line to be added to the farms/swaps?
Jeremy Khoo | DeFiato
We are not currently limited in any way to what coins can be supported, besides user demand. As we have a wealth of data we can peruse on a daily basis, we can gauge and project demand for certain coin/token pairings and support them should there be a need. There are of course quite a few parameters that must be met including liquidity and safety before we support new digital assets on the DEXes. The coins we are likely to support next should not surprise most as they will be the most liquid ones on Solana/Terra/Polygon.
Dave Donnenfeld | Avalaunch
Understood. One interesting feature that Defiato again aims to change the game with is this introduction of ‘Centralized Decentralized Finance (CeDeFi)’. Can you explain to us what this concept is and how it’s different from the current trend of DeFi?
Jeremy Khoo | DeFiato
If you consider how mainstream requires (or even demands) certain standards from platforms they interact with, it becomes clear that DeFi products don’t always offer many of these needs. It really isn’t a flaw, but a feature of DeFi. For example, having professional and reactive customer service is lacking in the DeFi space. It is the same with CEXes over DEXes, although it must be said that DEXes have truly come of age in terms of adoption over the past few years.
With DeFi, there is a never ending minefield of intricate exploits, hacks and mostly user-inflicted errors that makes it untenable for adoption. This is where CeDeFi comes in, allowing platforms such as Defiato, the means to act as interfaces between what new users seek, and what DeFi produces. From our technologies of one-click-to-farm and fiat onramp, Defiato brings valued added services to DeFi, complimenting it and helping to scale the industry further and faster.
Dave Donnenfeld | Avalaunch
As a platform which aims to eliminate financial risks, where security must be placed at the epicenter of the business, what measures have been taken already to prevent ill intent, and are there any future plans to increase these security protocols?
Jeremy Khoo | DeFiato
Defiato aims to reduce user risks as a two prong approach.
The first prong is about having best-in-class safety from a technical framework and business process. This is something we have nailed down at the start with our development capabilities, but more importantly, we are constantly bettering ourselves with new development and upgrades to keep up with the ongoing security threats. We have a constant pen test on our security protocols as well as multiple internal audits constantly.
The second prong comes in the form of insurance as an umbrella of sorts, should the improbable actually happen. So this is a business process that is being rolled out. We are serious about insuring users funds, either with a third party insurer both on-chain and off-chain, as well as having a significant treasury from platform fees etc. to back up any funds- more importantly giving users peace of mind and adding to the credibility of Defiato.
Dave Donnenfeld | Avalaunch
Prongs > Forks Since it’s so good, today we have one more question before we move on to the Twitterati
Later on in the development there is the integration with NFTs. What is this integration aiming to achieve, how will this take place, and how might token holders benefit from this incorporation?
Jeremy Khoo | DeFiato
NFTs have been the gateway to user adoption for the mainstream users. Even members from TradFi discover DeFi solely through the word of NFTs. As such, Defiato cannot ignore such a movement and is building up its capabilities to support the custody of NFTs. I would say that this is a natural process given our focus on mainstream.
By allowing NFT custody, users will be able to safely store, purchase and sell these collectibles/art forms, while also interacting with the DeFi universe. We expect the integration to take place with the onboarding of open protocols supportive of NFTs — marketplaces, minting contracts etc. This will take place between Q2 to Q3 of 2022.
Support for NFTs only increases the business and hence revenues for the platform, which can only help token holders, since demand is organically baked into the business process of DeFiato.
Dave Donnenfeld | Avalaunch
Okay, I lied. One more before the twitter peeps- I have to ask and represent Big Daddy Avalanche — How has the experience of being in the Avalanche ecosystem been for you?
Jeremy Khoo | DeFiato
LOL
We have been truly blessed to have the support of the Avalaunch team, as well as the constant support and guidance of Ava Labs. We find that the Avalanche ecosystem differs from others through its peer support and collective aims for mass adoption. This has helped Defiato to onboard many more DeFi services and tap on the Avalanche community to grow the platform organically faster. It is definitely not by chance that the Avalanche ecosystem is leading on so many indicators of yields (APYs) and liquidity.
100% True 🙂
Dave Donnenfeld | Avalaunch
You answered like a pro, politician, diplomat and ambassador. Appreciate the kind words Jeremy.
Jeremy Khoo | DeFiato
Thank you so much Sir!
Twitter Questions
@suryadi_uci is dying to know- what chains do you think are the most important for onboarding new users
Jeremy Khoo | DeFiato
Without doubt, 100% Avalanche for its low fees and high liquidity on many DeFi services. Other chains that Defiato selects are based on the same metrics. When new users enter Defiato, they automatically seek yields so this is of course an important metric to have.
@NguyenDaoOne asks — Do the token holders have the right to participate in the governance of the project? On what kind of decisions can they vote on about the project?
Jeremy Khoo | DeFiato
DeFiato is CeDeFi. We chose this particular model due to our USP of onboarding mainstream. However, it would be natural, that the product eventually move toward a hybrid, and then finally a full fledged Defi protocol of its own. This is all in our long term road map to be a pivotal piece of the entire Defi ecosystem. I’m saying this because the DFIAT token will in turn underpin this effort for governance, and hence a vote in running of the platform/protocol. Now this is not immediate. It will take some time to achieve, but I want to say that these plans are there.
@Lopyou54804819 inquires — Talking about staking/yield farming my question is, isn’t it useless if the APY is high but the token price goes down? How do you anticipate this?
Jeremy Khoo | DeFiato
The scenario painted here only happens where the token has no organic demand. I find that staking (increase supply) and organic demand needs to come hand in hand, else the ecosystem crumbles due to unsustainable business practice.
Remember that Defiato is an existing business and we are able to project demand. Hence for staking and other incentives, Defiato has painstakingly calculated these numbers, compared to the platform fees (revenues) to ensure a healthy and balanced token economy.
@FatihSultanSevm asks — Can you share some of the partnerships you have formed with existing blockchain foundations?
Jeremy Khoo | DeFiato
First of all, we believe that Avalaunch will only work with the best projects out there. Therefore, we are honored to have Avalaunch as both investor and partner.
As a defi product, we have many partnerships. An early partner whom we onboarded for tech deployment and marketing was Polygon. We also have partnered with ChainPort’s bridge technology to enable cross-chain swaps within DeFiato. In addition, DeFiato supports Solana, making us one of the top cross-chain DeFi aggregators.
As an aggregator, we are not limited to our potential partners. To give the best experience for our users, we will keep pushing and onboarding more partners that would give the most benefit to the platform.
@Rohit436314591 — I have found that DeFiato is in open beta right now? Can you tell us when it will go mainnet? What are the additional features we see on the mainnet version?
Jeremy Khoo | DeFiato
This is a good question, the answer is that it is not going to be immediate. When you say mainnet, I assume that you are referring to DeFiato perhaps taking on a more open, permission less Web3 framework. Currently Defiato is operating in open beta as a centralized platform, and will constantly build capabilities in its current format as it is working really well. As CeDeFi, there are certain processes that make it advantageous for DeFiato to grow fast and be a profitable, revenue generating entity. When the time comes to adopt a mainnet (protocol) approach to a truly DeFi solution, DFIAT token will feature in this entire shift and process. I could see this happening in the next 3–5 years possibly.
Telegram Questions
When will your tokens be listed on the exchange and which exchanges do you plan to list on in the future?
Jeremy Khoo | DeFiato
I’m not able to provide the exact exchange yet due to contractual obligations, but yes, DEFIAT tokens will be listed on multiple CEXes as well as DEXes. As a top tier project and existing business, DeFiato will always aim to get on only the best exchanges out there.
Nguyễn NFTY
Can you indicate a feature or feature that you like best about DeFiato so that it can compete with other competitors? What are you most confident about DeFiato? Do you have plans to get users to choose DeFiato?
Jeremy Khoo | DeFiato
I did mention this yesterday but I feel it deserves another important mention today. My personal favorite is the cross-chain support because it is seamless and truly a feature lacking in the DeFi space, largely due to safety and user experience. With DeFiato, you can deposit say Solana assets, and put it to work farming on Avalanche. That is an important USP for mainstream adoption and crypto natives alike.
Daniel | I’ll never DM you first
The crypto industry is a fast-paced industry, how flexible is your Project to change quickly and keep pace with technology trends? What is your long-term vision for the forecasting industry in which the your Project project operates?
Jeremy Khoo | DeFiato
100% agreed. Everything is dynamic and moves so fast you can miss it. DeFiato is nimble in terms of development and quick to adapt to user requirements and needs. We always take feedback seriously in order to achieve the best product market fit. We foresee that elements like GameFi and even NFTFi will dominate the space for a while, so we are already building ahead.
Is your project a community only for English speaking an countries or for users not of other languages?
Jeremy Khoo | DeFiato
We have multi language support and already have localized groups for different language support — Japanese, Korean, Chinese and Vietnamese. We are always rolling out new groups!
This is very important because we have been notified of scams coming up daily. Please only follow our official group https://t.me/DeFiato and https://twitter.com/DeFiatoOfficial
COVID 19 has slowed down many economies around the world but as a crypto business, does it affect you negatively or positively? Are you still on track to achieve your goals or are you planning a new development?
Jeremy Khoo | DeFiato
I like this question and I would love to talk an entire day on this haha. But to keep it simply, I think the Pandemic has accelerated a lot of crypto adoption (NFTs, Gamefi). The new “norm” is causing a shift in companies and their priorities. At DeFiato, we are leveraging on this wave of digital adoption. Be it mainstream or crypto adoption, we are plugging ourselves firming as the bridge to DeFi, and we can only see this user base growing rapidly in the new “Norm”.
Dave Donnenfeld | Avalaunch
Thank you!
We appreciate you coming out on both days. We know how busy it is leading up to a launch and the scope of your crosschain ambitions don’t make it any easier.
Jeremy Khoo | DeFiato
Its no hassle at all
I’m always happy to be here Sir
Dave Donnenfeld | Avalaunch
We’d like to thank you once again for your time and of course, Dr. William’s presence was felt here today. He is indeed impressive and kudos to him for architecting such a needed vision. Thanks!
Jeremy Khoo | DeFiato
He sends his well wishes! We will be conducting our own internal AMA and he will be there so come say hi in our telegram or other socials as well!
About Avalaunch
Avalaunch is a launchpad powered by the Avalanche platform, allowing new and innovative projects to seamlessly prepare for launch with an emphasis on fair and broad distribution. With its values deeply rooted in the early Avalanche community, we are able to offer projects confident, informed users who are aligned with the long-term goals of the rapidly expanding application ecosystem.
Leveraging Avalanche’s scalable, high-throughput, and low-latency platform, Avalaunch is built by users, for teams, to help grow strong communities.
DeFiato AMA #2 — Technical Deep Dive with Jeremy Khoo, CIO (Recap) was originally published in Avalaunch on Medium, where people are continuing the conversation by highlighting and responding to this story.
