Hi, on December 5, 2020, OroPocked participated in a live AMA session on BitMax’s Telegram channel (https://t.me/BitMaxChineseOfficial). OroPocket CEO, Both Mohit Madan, and OroPocket’s COO, Tarusha Mittal, participated in this AMA.
Bitmax: Good evening everyone, today’s AMA starts now. I am today’s host, welcome to our AMA. Today we are fortunate to have invited the OpenDeFi team, please welcome!
Tarusha Mitall: Hi Everyone, Super happy to be doing this AMA. :) I am Tarusha, the cofounder of OpenDeFi.
Mohit Madan: Thank you for this wonderful opportunity. We’re really excited to be here, and are excited about the upcoming listing of ORO on Bitmax!
Bitmax: What kind of project is OpenDeFi, can you share with us, and what pain points the project is dedicated to solving in the industry?
Mohit Madan: Right now the entire crypto industry stands at about 550 Billion dollars. A giant like Fidelity or Blackstone can just gobble us up.We are trying to expand the market itself by tokenising real world assets and, building and enabling financial services on top of it. This will allow institutional investors, hedge funds to join this ecosystem. In our MVP, we have been able to Tokenize Gold and Silver and have build several financial services on them. Our app is live on Android and iOS:
Tarusha Mitall: Hi, I am Tarusha, the cofounder and COO of OpenDefi. OpenDeFi aims to create a bridge between real world assets and DeFi. We are toekinising real world assets and offering financial services on top of these assets. Gold and Silver are already live on the platfom. The main point that we are trying to resolve is around freedom of choice for people vis a vis their finances.
Bitmax: What are the competing products of OpenDeFi in the market？and what are your core advantages?
Mohit Madan: Our biggest competitor is Synthetix. However since the assets on their platform are not backed by physical assets, essentially everytime the price of asset rises — their entire network goes into debt which is distributed to all network members. This makes it a negative sum game. On OpenDeFi users can earn a yield/rental on any asset that they are holding on the network. Which makes it a positive sum game. There are several other advantages such as fungibility between tokens and real world assets, global fiat on-off ramp support, bundling/unbundling of assets etc. Here’s a pictorial representation. We use several oracles to secure and make sure the network is fair and decentralized including — Chainlink, Band, Razor.
Tarusha Mitall: OpenDeFi is empowering users in several ways, we are providing real world assets which are redeemable as a form of investment and on top of these investments, users can enjoy a slew of financial services. They can get flash loans, stake their assets and earn a yield on these assets, use an asset backed card to spend these holdings in real time. Synthetix is an indirect competitor but the difference is that on synthetix, the price is pegged to the asset and it is a negative sum game, as a network, but with us, users get the flexibility to redeem these assets.
Bitmax: Can you elaborate on the Open Finance?
Mohit Madan: Open Finance or OpenDeFi is the bridge between traditional finance and DeFi. We tokenize real world assets on it like Gold, Silver, Stocks, ETFs, Real estate, ART etc. And we build and enable building of financial services on it such as asset backed debit card, lending, staking, earning yield, global fiat ramp etc. Here’s a complete overview of the same:
Here’s a network representation of OpenDeFi:
Bitmax: What is the ORO economic model, how to achieve value capture and long-term appreciation, and what unique design?
Mohit Madan: While creating the Governance token for OpenDeFi ($ORO) it was very important for us to make it breathable — so that it can scale as assets under management increases. We contract the economy by automatically buying back the tokens from the fee pool via Uniswap. We expand the market with terminal inflation. By contracting and expanding the economy, we make it breathable and less prone to pumps and dumps. Everyone who is involved with the project has a very strict unlock schedule — The investors have quarterly unlocks, the team has a 2 year cliff and then linear unlocking from month 25–48, the advisors have a one year cliff and then linear unlocking from month 13–24. We have tried to ensure that everyone has long term vested interest in the project, so it can scale properly. You can read more about the tokenomics here:
Bitmax: Why did the ORO team choose to list BitMax exchange? What benefits will be given to BitMax users?
Mohit Madan: Bitmax is one of the best exchanges out there. For our first centralized listing we wanted an exchange which had the following features:
- Large user base
- Strong Technology and Order book processing
- Great SLA and support
- Long term partnership for staking, lending etc
- Inclusive and accessible
Bitmax checked off all of the above points. Right now its the best place to launch a DeFi project. Bitmax users will receive several benefits with this listing with the airdops, trading competitions, staking etc. We have about $20,000-$50,000 of competition prizes planned with Bitmax.
Bitmax: Can you tell us more about your cooperation with tezos? When will it happen?
Tarusha Mitall: Tezos is fabulous. OpenDeFi as a protocol is open in nature and allows for cross chain movement of assets. We have collaborated with Tezos and Matic to empower the ecosystem and the users, as well.
Mohit Madan: We have collaborated with Tezos for tokenizing GOLD and SILVER on their chain, and for providing cross chain support. Their great on-chain governance shall allow us to implement our protocol voting mechanism more transparent, quick and seamless. They are not just our technology supporters, but also investors. We shall soon be listing XTZGold and XTZSilver on several exchanges — both centralized and decentralized.
Community Questions…
Q1: Can Oro token holders participate in the governance of the project in some decisions? What are his application scenarios?
Mohit Madan: Absolutely, $ORO is a governance token and all protocol level changes and additional of new assets/asset classes is controlled in a democratized manner by ORO token holders. You can read more about it here:
Tarusha Mitall: Yes, absolutely. ORO is a governance token and any decision which would be regarding the network would be taken by the ORO holders.
Q2: How do you specifically mark real-world assets?
Mohit Madan: In order for us to tokenize any real world asset we need three parties:
1. Insurer: To make sure all our underlying assets are completely insured against theft, war, natural calamity etc.
2. Custodian: To make sure that the tokens represent the rights to the assets. This ensures that the assets are not in control of the foundation or OroPocket.
3. Auditor: To make sure everything is running smoothly.
Once we have these three sorted we tokenize the assets. Right now we have tokenized GOLD and SILVER. We’re working on tokenizing other assets and asset classes.
Tarusha Mitall: Currently, we have tokenised gold and silver on the platform. We have third party auditors, insurers to make sure that the token represents the right to the underlying asset. We would be adding more assets like wine, art, real estate, stocks in the future.
Q4. This means that the issued tokens will lock their corresponding assets?
Mohit Madan: Yes, that’s correct.
Q5: The security of the difi project is very important. There are many reports of losses caused by attacks on various projects. How does oro guarantee the security of user assets?
Mohit Madan: You’re absolutely right. To ensure the safety of the users, assets and the network we are following a three tier approach:
- Alpha: Whenever we build something, we test it out with our alpha testers. These are experts in their respective domains of UX, business, technology, server etc. Once they have reported the bugs and they are resolved by us, we move to step2.
- Auditing: We’re speaking with two different auditing firms for reviewing our smart contract and tech stack. Once they approve we move to step 3
- Beta and launch: We will then open the feature up to our beta users and gradually to public
This ensures that user experience and security both are addressed properly.
Q6: What is your partnership with unilend?
Mohit Madan: We shall be using their lending mechanism to build hedging of assets
Tarusha Mitall: We would be utilising their lending and borrowing protocols. You can find more details on the partnership here:
Q7. What is Oro’s layout for cross-chain defi?
Mohit Madan: Cross chain support is really important for OpenDeFi as gas fee on ethereum is very high to deploy any complex financial instrument. So far we are building on Matic and Tezos, apart from ethereum.
Q8. Can the value of the asset affect the price of the token?
Tarusha Mitall: The token which is going to be listed tonight on Bitmax is the governance token — $ORO. The asset backed tokens are different from this token and yes, their price would be affected by the price of the asset.
Mohit Madan: Yes, these are asset backed tokens. Their price is exactly in relation to their market price on traditional markets. As USDC is pegged to 1 USD similarly 1 GOLD = 1 gram of physical 24 carat GOLD.
Q9. Can ORO token holders get dividends?
Mohit Madan: Yes, ORO token holders will get inflationary benefits. You can read more about it here:
Q10. Many audits are under attack now, do you have a prevention plan?
Mohit Madan: Yes, hence we’re working with multiple providers and using multi-tier approach including bug bounty, user feedback etc
BitMax: That’s all for today’s AMA. Thank you very much
Tarusha Mitall: Thank you for inviting us to do this AMA, it was wonderful interacting with the community :)
Mohit Madan: Thank you, once again for the wonderful opportunity. Looking forward to a successful launch of ORO on bitmax!
About OroPocket
Oropocket is 100% asset backed banking without the insidious, hidden charges and time consuming tedium that come with traditional banks. Invest into multiple asset classes, grow your wealth, enjoy 100% liquidity.
