Thanks a lot for actively participating in the RioDeFi AMA held on 29th September 2020 at the Game of Bitcoins Channel. We really appreciate all your support. This post is a recap of the entire session held with RioDeFi
We have with us JAMES ANDERSON
I’m the CEO of Rio DeFi. Rio DeFi is a Blockchain technology company. Our mission is to accelerate the mass adoption of digital assets by bridging traditional and decentralized finance.
Our vision is a world in which everyone has access to decentralized financial (DeFi) services.
I got into blockchains through my interest in economics and my research of gold, silver, and alternative currencies after the financial crisis of 2008. I believe it was 2012 that I really started looking into Bitcoin, and I met Vitalik Buterin and Erik Voorhees back in 2013 at a conference called Porcfest in New Hampshire.
I invested into Ether in 2014, into The DAO in 2016, and over 40+ different cryptocurrencies since then. I believe there are so many different ways of creating value in this rapidly evolving digital economy. I really enjoy the passion and optimism that people in the cryptocurrency space tend to have.
Q1. Can you list 1 or 2 great #RioDeFi features that make it stand out from the competition? What is the competitive advantage your platform has that you feel most confident about?
At the heart of the RioDeFi ecosystem is RioChain, a powerful digital infrastructure built on Parity’s Substrate framework and tailored for mass adoption. When designing RioChain, we prioritized security, speed, scalability, and interoperability. We operate across blockchains to leverage the strengths of each.
RioChain can process up to 3,000 transactions per second, processes blocks in 2 seconds, and is highly secure — it has been audited by CertiK, which is one of the leading blockchain security auditing firms. https://certik.io/blog/clients-&-partners/riodefi-audit-and-pentest-riowallet/
We chose to build on Substrate because it allows for cross-chain communications and true interoperability. The Substrate framework allows for forkless upgrades, lower fees, better efficiency, faster speeds, and customizable consensus modules. Their on-chain governance features are also quite robust. The only downside to Substrate is that it’s newer, so there are less developers who specialize in it, but that is rapidly changing as it becomes more popular. We’re thrilled to be a part of the rapidly growing Polkadot ecosystem.
I'm most confident about our ability to deliver scalable business solutions built on blockchain technology and giving dApps full access to fiat on- and off-ramps.
Q2. To help my understanding, can you tell me what plans are set in motion to add value to RioDeFi in 2020? Can you share RioDeFi vision for decentralized finance (DeFi)? What features are built into RioDeFi to support DeFi?
The RioDeFi ecosystem includes three key components:
1) RioPay bridges cryptocurrencies with traditional finance, especially via fiat crypto payment rails
2) RioChain makes DeFi platforms more potent by implementing interoperable solutions
3) RioWallet makes cryptocurrencies much easier to use and includes a fiat onboarding system as well as a dApps section.
Q3. Many DeFi projects have liquidity problems. What liquidity model will RioDeFi use to increase the value of the token? And how is RioDeFi radically different from competitors, why should an investor pay attention to it?
RioDeFi is giving very strong incentives to stake RioFuel (RFUEL) to hold for the long term. Currently we're paying 60% APR for those who stake at Bithumb Global, as well as to all RFUEL purchasers whose tokens are currently vesting. In this way, we align the incentives of our long-term HODLers with the benefits of our ecosystem growth. You can learn more about our token emission schedule here - https://medium.com/@riodefiofficial/rfuel-emission-schedule-eb0af9904801
Our economic model encourages rapid adoption. We will distribute 10 free RFUEL to new users of RioWallet, which is enough for 100 transactions since the current transaction fee is 0.1 RFUEL. These promotional RFUEL can only be used for transaction fees; they cannot be transfered or traded. We will also have a referral program in RioWallet to encourage people to share it with their friends.
Every action on RioChain has a transaction cost (0.1 RFUEL for basic transactions) that is paid in RioFuel (RFUEL), which is its native platform (gas) token. The more dApps that build on RioChain, the more demand there will be for RFUEL, and with a fixed supply of 1 Billion and a rapidly expanding ecosystem of dApps, users, and businesses built to support the ecosystem, we believe that RFUEL will increasingly gain in value over time in proportion to the growth of the network.
RioDeFi will also earn revenues by engaging in new ventures with entrepreneurs and businesses who seek to build products and services on RioChain. We have arranged our business model so that we can get paid in tokens for assisting projects to grow.
dApps are incentivized to build on RioChain because they'll have lower transaction fees, faster confirmation times, greater scalability, and a more profitable economic model that rewards dApps with 20% of all the transaction fees that they generate.
What we're building is a long-term ecosystem of interconnected products that can help further our vision of a world in which everyone has access to DeFi.
Q4. Your platform develops financial applications for its users, I generally store many tokens and generate money through interest through my smartphone..what financial applications has Rio DeFi developed for users like me?
RioWallet can easily be used to access cryptocurrencies and dApps from either a computer or mobile phone, allowing many more people access to financial services. With the ability to securely store assets from many blockchains, transact them quickly, and connect to DeFi services like staking, savings, and lending, we think RioWallet will become people’s preferred cryptocurrency wallet.
Additionally, we're radically simplifying the user experience. RioWallet will have an OAuth system to allow users to easily create a digital currency wallet using their Gmail, Facebook, or other social media logins. It will also come with some free RFUEL to use on transactions within our ecosystem and on third-party dApps. We also have an integration with MoonPay that enables users to purchase cryptocurrencies directly through RioWallet using their credit or debit card. We think these features will make it a favorite for regular people as well as the crypto crowd.
Q5. What is the mutual development between MantraDAO and Rio Defi? Will you share users or business value?
In addition to being the CEO of RioDeFi, I’m also a Council Member of MANTRA DAO. MANTRA DAO is a dApp on RioChain that was incubated by RioDeFi, because we felt that it could play a key part in the RioDeFi ecosystem.
MANTRA DAO leverages the wisdom of the crowd to create a community-governed, transparent, and decentralized ecosystem for web 3.0. Built on RioChain for the Polkadot ecosystem. It focuses on staking, lending, and governance. MANTRA DAO gives financial control back to the people to grow wealth together.
Because MANTRA DAO is powered by RioChain, every transaction of the RST-88 (RioChain standard token format) version of OM token will require RioFuel (RFUEL). Additionally, all staking, lending, and governance functions will require RFUEL to operate. In this way, MANTRA DAO will bring sustainable long-term value to the RioDeFi ecosystem.
Q6. Rio Chain boasts 3,000 TPS, do you think this TPS is enough to power all the services your are offering, many of your rivals boasts 100000 TPS
Our goal is definitely to reach 100,000+ TPS in the long-run, but we think that rather than blast out what we'd love to achieve a year or two from now, it's better to show our current level of scalability. Ethereum can only process about 15 TPS, and yet it's the #2 blockchain in market cap and the #1 in terms of DeFi applications. We're about 200 times more scalable at present, and our block time is about 2 seconds, so we think that RioChain is already quite powerful, scalable, and useful for real-world financial applications.
Q7. What is really the mission and vision of this RioDeFi project? simply develop a project that allows to unite both centralized and Decentralized finances to improve their ease of management?
Yes, our mission is to accelerate the mass adoption of digital assets by bridging the gap between traditional and decentralized finance.
Traditional finance has a number of issues, such as slow speeds, high costs, low interest, opaque governance, poor accessibility (many people can’t get bank accounts), and ultimately it’s powered by fiat currencies that can be created by those in power to benefit the few at the expense of the many.
While it is certainly true that in some ways DeFi is competing with traditional finance, we will also be providing a bridge between traditional and decentralized finance that will help normal people gain access to fiat-based savings accounts that generate higher APR yields by using DeFi on the backend. In this way, we see that they can be complementary.
“When wealth is centralised, the people are dispersed. When wealth is distributed, the people are brought together.” - Confucius
Q8. I have read that the purpose of RioDeFi is to use a hybrid chain between Proof-of-Stake & Proof-of-Authority, why not use the most common ones in other projects such as PoS and PoW? What advantages does (PoA) provide?
There is a key issue with blockchains known a the blockchain trilemma between security, scalability, and decentralization. Currently, every node maintaining either the Bitcoin or Ethereum network is working on the same public ledger. Every node has to process every single transaction. Adding more computers into the network improves security, but it can actually decrease efficiency.
So far, none of the blockchains have managed to achieve scalability, security, and decentralization at the same time. You generally have to pick 2 out of 3 to focus on. With Rio Chain, we’ve chosen to focus on security and scalability. We will become increasingly more decentralized over time as blockchain technology improves to resolve this trilemma.
Rio Chain currently operates as a federated blockchain using a PoA (Proof of Authority) consensus model. In the early phases of its development, the RioChain network will only have a handful of nodes that are run by Rio DeFi and our founding partners. Benefits of Federated Blockchains include faster speeds, scalability, low transaction costs, low energy consumption, strong security, and increased ability to provide features that better connect with regulated financial institutions.
Within 3-6 months, we’ll be switching from a PoA consensus model to a Nominated Proof of Stake (NPoS) consensus model, which is the same model used by Polkadot (DOT) and Kusama (KSM).
Q9. The success of a truly decentralized ecosytem is in the hands of DELEGATORS, How do you select DELEGATORs and also incentivize them
Great question! We reward the validator nodes of RioChain with 70% of all transaction fees plus a portion of the staking rewards from our token distribution model. In this way, we highly incentivize those who process transactions and maintain the integrity and security of the network.
Q10. Ethereum-based DEFI is getting very expensive, will Rio DeFi services be more affordable?
Each basic transaction on RioChain only costs 0.1 RFUEL, which is quite cheap when compared with Ethereum. We can also adjust the fee over time to remain competitive with other products due to the forkless upgradability of RioChain.
Q11. Vast majority of Crypto projects are built just for the sole purpose of amassing wealth for themselves. So, I want to know the value you aim to add to crypto industry that will bring greater abundance to the industry?
We're all about creating long-term value for the global financial system, because ultimately if money is better able to flow amongst the people, then the world will be better off. DeFi applications hold a lot of promise, but they're currently too difficult to get into and use. We aim to massively simplify the user experience for people, particularly with our OAuth system to allow users to easily create a digital currency wallet using their Gmail, Facebook, or other social media logins.
Add on to that easy fiat on and off ramps, staking, lending, and cheaper payments, and you have a very useful solution that can enrich everyone by allowing them to take better control of their financial well-being.
Q12. Do you have any new partnership recently? And what advantage of this partnership to the project?
At RioDeFi, we have a broad ecosystem of partners that we work with. Today we recently announced our partnership with Vauld (formerly Bank of Hodlers) to offer INR focused financial infrastructure services for any developers wanting to build their dream businesses on RioChain. With this partnership, RioWallet will now have easy-to-use fiat on-and-off ramps for INR. https://medium.com/@riodefiofficial/riodefi-builds-a-bridge-to-india-663e02a71e2f
We’re also partnered with Hex Trust, a licensed Hong Kong Trust company that offers bank-grade digital asset storage services for its institutional clients. These assets are also insured. From the moment we start accepting money to build our business to when assets are stored on Rio Chain and eventually withdrawn back to their native chain, we operate in a secure and audited system that uses Hardware Security Modules (HSMs) and multi-sig cold storage solutions to ensure the safety of all digital assets. https://medium.com/@riodefiofficial/riodefi-appoints-hex-trust-as-custodian-c5c5bb62d6fc
We also worked with CertiK, one of the leading blockchain security auditing firms, to audit the core runtime modules of RioChain and penetration test the web & mobile versions of RioWallet. https://medium.com/certik/certik-audits-three-riodefi-modules-and-performs-a-pen-test-for-riowallet-54d21af3741d
Additionally, Slow Mist has just completed an audit of the RioFuel (RFUEL) ERC20 smart contract and passed us on every check.
RioDeFi has brought on digital payment & network technology experts BCW Group to assist in expanding its services infrastructure. BCW Group is a strategy consulting firm that specialises in digital payments, digital assets infrastructure, and DLT node validation as a service for enterprise clients. BCW Group will design key strategic infrastructure initiatives, technical elements, and industry best practices to bolster the payment and value transfer aspects of the RioDeFi ecosystem. The BCW consulting team is experienced in leveraging its global network to facilitate critical partnerships in cross-asset payment rails, merchant services and regulatory compliance requirements throughout the evolution of RioDeFi’s journey from startup to established industry player. https://medium.com/@riodefiofficial/bcw-group-inks-partnership-with-riodefi-5b71bb859bdd
RioDeFi has brought SK Chain Advisors on digital payment and network technology to guide us in expanding the services which will benefit the community members in various ways.
SKChain has a great team which has senior management from top global investment banks also they have management consulting firms such as McKinsey & Company, Ernst & Young, and HSBC. https://medium.com/@riodefiofficial/sk-chain-advisor-builds-partnership-with-rio-chain-98b44e5591de
RioDeFi has partnered with payment gateway MoonPay to offer effortless purchasing of its RFUEL token. The new decentralised finance protocol will host MoonPay’s payment services on its website to facilitate purchases with all major debit/credit cards, bank transfers and new mobile payment methods such as Apple Pay, Google Pay and Samsung Pay. RioDeFi’s RFUEL token will also be made available for purchase through other channels where MoonPay is enabled, such as exchanges and digital wallets. MoonPay accepts payments from over 160 countries with its simple, developer-focused API’s. https://medium.com/@riodefiofficial/riodefi-goes-live-with-moonpay-as-a-payments-partner-efd1ea2e50a0
Additionally, twelve Venture Capital funds joined the RFUEL Community Crowdsale and are providing strategic support to RioDeFi as we develop our ecosystem. https://medium.com/@riodefiofficial/rio-defi-scores-landslide-victory-during-private-round-of-investments-f03b0b398a5e
Q13. Most investors only focus on the price of the token in the short term instead of the real value of the project. Can you tell me the benefits of holding $RFUEL for long - term investors?
You are right indeed. In crypto play there are many that view it as simply a token price play. But this also means there’s no long term value. The key is to create long term value in the token economics. How do we do that?
The answer is to build real sustainable business around RioChain. There will be many more key partnerships, cooperation and businesses coming to RioChain in the coming months. Our focus is on building sustainable business that lasts for decades.
Q14. How does RioDeFi plan to attract investors who currently are not into blockchain and cryptocurrencies? What makes your products attractive for new investors?
The current cryptocurrency market involves less than 1% of the global available market, so we are building an ecosystem that targets normal people. We aim to make cryptocurrencies so easy to use that even a grandmother can use them.
This happens by massively simplifying the user experience and having integrated services so that the blockchain components happen in the background. With our OAuth wallet creation solution using a Gmail or Facebook account, and free RFUEL pre-loaded into every mobile Rio Wallet, we think our users will find Rio Wallet to be a refreshing experience compared to what’s come before.
Q15. What technology does Rio Chain use for interconnection? What new features will DEFI users have?
We chose Polkadot and the Substrate framework because we believe that cross-chain DeFi (CrossFi) is the next big evolution of blockchains. Interoperability is key.
The recent surge of DeFi platforms has revealed the potential of blockchain based financial services. It has also exposed the limitations of the Ethereum network. We think that cross-chain DeFi (CrossFi) will spur the next big wave of blockchain adoption.
This is because each blockchain has its own community and set of tradeoffs - advantages and disadvantages - so it’ll help the entire industry grow when these currently siloed blockchain are able to communicate with each other and transfer value across networks.
RioChain users will have access to staking, savings, lending, payments, and eventually yield farming and DEXs.
Q16. As a community,. How to support your Project? What should we do to help, to increasing, to gaining ,to grow up your Project? How to make contribution to your Project? What should we do in order to make your Project become the biggest, the greatest potential Project now and future?
Working with communities is one of the most important things for us at RioDeFi.
We are 100% focused on creating and developing products within the DeFi eco-system that are designed for the mass market with mass adoption in mind. In the later part of 2020 you will see more and more of our products that are specifically produced with communities in mind.
We want to work closely with every blockchain community around the world and unite them all through an interoperable ecosystem that can grow and mature together. We want RioDeFi to be a household name in your country and we want to listen to your needs. But most importantly... we want you to be a part of the RioDeFi family.
Q17. How do you interact with other blockchains than Polkadot and why? Why did you not originally build your ecosystem on the Ethereum Network if it anyway interacts with it? Profoundly, for what kind of use-cases is the RioChain built for?
RioChain is built on Parity Substrate framework, the same technology used by Polkadot. We chose to build on Substrate because it allows for cross-chain communications and true interoperability. We believe that cross-chain DeFi (CrossFi) is the next big evolution of blockchains.
RioChain’s CrossFi dApps, such as MANTRA DAO, are on the cutting-edge of blockchain technology, and will enable many new financial services. Liquid staking, sustainable yield farming, structured financial products powered by DeFi, gaming across blockchains, the RioDeFi ecosystem will use CrossFi to expand beyond the blockchain industry to disrupt global financial markets.
Q18. Can you briefly explain how the top milestones that RioDeFi team aims to execute before the end of this year or going to execute in future, and what Riodefi may look like in 2020 and beyond?
In 2020 we aim to launch a few scalable applications on the RioChain main-net with one big announcement to come that will not just show the strength of RioDeFi but also send waves around the world to show how DeFi and CeFi can merge into a big business globally on top of RioChain.
Sorry I cannot disclose this now, but we will be making this announcement within the next 60 days.
2021 will be the year for RioDeFi. We aim to be a top player in the DeFi sector and also one that merges DeFi with CeFi to ensure mass market adoption for our services.
Q19. What role do you think RIO DeFi will play in making blockchain highly adaptable in the worldwide stage?
We aim to bring DeFi to the masses by making it simple, secure, and fluid between fiat and crypto. We are working with various financial authorities around the world to ensure all our services are fully compliant with the latest regulations. This will allow us to scale our products and services globally and help DeFi reach mass adoption.
Q20. Can you list killer features of RioDeFi that makes it ahead of its competitors ? What is the competitive advantage your platform has that you feel most confident about ?
Our main competitor is Crypto.com. We both offer a digital wallet, payments, merchant services, an exchange, and a blockchain that interact in a fluid manner.
Where we think we can add more value is with our end-to-end fiat to crypto back to fiat gateway that will provide users with access to both DeFi and CeFi in a secure manner. Our chain is also open for other third-party dApps to come build on it to grow the ecosystem together, whereas their chain is primarily focused on supporting their own applications.
Crypto.com offers fantastic products, but we think that being built on Substrate and operating within the Polkadot ecosystem will enable us to grow beyond them in the coming years.
Q21. Who is building the business and tech and your upcoming plan in the near future?
There are currently 3 dApps building on RioChain that are currently in beta mode:
MANTRA DAO (DeFi Platform for Staking, Lending, and Governance)
Bitpool (Blockchain-based Predictions Platform)
KQJ (E-commerce Game)
There are also a few more projects building on RioChain that are in stealth mode right now while they focus on development.
Q22. Vast majority of Crypto projects are built just for the sole purpose of amassing wealth for themselves. So, I want to know the value you aim to add to crypto industry that will bring greater abundance to the industry?
This is a very good question and is so important that I'm answering it twice, because it's this problem that has negatively affected the growth of the whole crypto industry.
Indeed many blockchain projects are designed that way. You just need to look closer into their business model, the tokenomics, and the token release model held by the founders and team members. All these will show you everything.
At RioDeFi no founders get any of their tokens for the first 6 months. This means that none of the 15% Founders & Advisors RFUEL tokens are in the market today.
On the 7th month onwards for the following 18 months, founders and team tokens are only slowly released 1/18 each month.
What do this mean?
It means you have 6 months to evaluate us! You have 6 months to determine if we are worth it to continue to support us. And it means we get nothing if we do not show everyone we can produce something to all our supporters within 6 months.
This aligns our long-term incentives with that of the ecosystem. We don't get any value ourselves until we've produced real value for others. Our entire team is willing to stand behind this promise to support the growth of the RioDeFi ecosystem for the benefit of our community.
On that note, it's 12:30am here in Hong Kong, so I think I'm going to get some rest. Thank you all for your fantastic questions and interest in RioDeFi!