Recap of the Defactor AMA with Blockchain Space
On Wednesday, September 29th, we had the pleasure to welcome to our Telegram chat:
Bhairav Patel, The Technical Lead at Defactor.
We asked him questions about the development of Defactor.
INTRODUCTION
Q~ Thanks for joining us today. Please start off by introducing yourself to the Blockchain Space community and your role in the team ?
A~ Thanks again for having me.
My name is Bhairav Patel, I’m the Tech Lead at Defactor and have been working in the FinTech space for close to a decade.
I was previously the CTO for a number of companies across the globe, including one specialising in supply chain finance that hit the Forbes FinTech 50 list and it was at that company that my blockchain journey began.
Back then we were looking at ways to finance businesses using blockchain technology but the tech wasn’t ready then, it is now and that is why we started Defactor.
Q~ Let’s learn some more about the project. What is Defactor all about in detail, and what are some of the real-world pain points that Defactor aims to solve ?
A~ Excellent, thanks for that.
Defactor is a platform that bridges the gap between traditional finance and DeFi.
The platform itself allows companies seeking finance to tokenize their assets and obtain funding from DeFi liquidity pools.
We perform due diligence on companies seeking finance, conduct credit risk analysis on the assets they propose for funding and then funnel those assets into liquidity pools for financing.
We also handle the crypto/fiat conversion which means that companies that want to access DeFi liquidity do not need to have any blockchain knowledge or infrastructure.
Also, around Defactor there is a vibrant ecosystem that provides value added services such as insurance, collections services, data oracles etc.
We solve a number of issues. At a macro level we’re giving businesses an alternative to traditional finance, we’re helping nurture new business models that have sprung up from the growth of DeFi and at a micro level, we’re building the tools, that means that real world assets can be deployed into DeFi liquidity pools at scale.
Xiaolin : Looks good, companies will really benefit from this.
Bhairav : Businesses today are finding it hard to get finance, we’re promoting DeFi as an alternative.
Xiaolin : Yeah its a challenge faced by a lot of businesses and I love that fact you dont need prior knowledge of the blockchain to be able to have access to such Finance.
Bhairav : Yes indeed, the technical requirements are a big barrier to entry for companies that want to adopt DeFi.
Q~ Can you share with us detailed information on the $FACTR tokenomics and it’s usecases ?
A~ Yes indeed, the $FACTR token is central to the platform.
It will be required by real world asset originators to access the Defactor services creating an increasing demand for the token as the demand for the Defactor services rises and more asset originators are onboarded.
It will also act as a governance token, so in order to participate in the governance of the Defactor ecosystem, token holders must stake their $FACTR incentivising token holders to participate in the Defactor network.
Through community based governance $FACTR holders can influence changes to the tokenomics, the protocol fees and they can even influence the types of asset classes that can be accepted by Defactor.
One of the most unique features of our tokenomics is our Buyback-and-Make model.
You’ve probably heard of buyback and burn but we feel that is an outdated system.
The modern tokeneconomics model we use allows us to reward positive actors that exist in the ecosystem with the $FACTR tokens that we buy back.
Our token will be launched soon but the date has not been set.
You can subscribe to this list to be the first to hear when the date is set and how you can participate
Q~ The strongest projects complement the DeFi ecosystem, can you share with us some of the recent partnerships you have secured ?
A~ Yes, I can indeed!
The first partnership to talk about is the one with Centrifuge.
Centrifuge is a liquidity provider that finances real world assets, but not all asset originators have the infrastructure or knowledge to deal with organizations such as Centrifuge so this is where Defactor comes in.
We simplify the process for asset originators and make it easy for them to access DeFi liquidity.
We are also partnering with a number of asset originators such as Consol Freight - who have already been funding real world assets via DeFi.
Other asset originators are Accelerated Payments, iHuddle, LendWise and Black Manta, all of whom want to obtain liquidity for their business via decentralised finance.
We have a very special announcement coming out tomorrow with a new partner that we are very excited about.
I won’t reveal it here but please stay tuned to our social media channels to hear the announcement, it is a big one 😊
LinkedIn:
Telegram:
Website:
Twitter:
Q~ Can you give us an update on what the team at Defactor has accomplished till date and your future plans for Defactor ?
A~ Most certainly!
The first thing I’d like to mention is that we hit our softcap within 2 weeks of launching the fundraise which was a big milestone for us.
From a tech point of view we’ve been working with the first asset originators: Consol Freight and Accelerated Payments to get their systems plugged into Defactor so that we can begin the funding process and you’ll see announcements on that over the coming weeks.
However,
The key event I would like to highlight is the launch of Springpad…..
Springpad is our way of bringing smaller asset originators onto the platform and showcasing them to our community.
It will be an opportunity for companies that are “DeFi curious” to get started with funding.
We will have announcements on this very soon and will be opening up the programme to companies seeking funding.
Stay tuned for our updates on the Springpad 😊
Xiaolin : The Springpad has the same idea as a launchpad?
Bhairav : Rather than a launchpad, we call it a gateway to DeFi.
QUESTIONS FROM TELEGRAM
Q~ When accessing the network, asset originators must pay a fee in $FACTR for access to the platform. What is the fee to be paid to gain access to this platform? Is it a monthly fee or is it paid only at login?
A~ There will be an access fee for the platform, that fee will be paid by asset originators in $FACTR tokens, the fee will be dependent on the value of funding requested.
In addition there will be transaction fees charged and the platform will also take a yield on the funding which, through our buyback and make model, will be used to buy back $FACTR tokens for the market.
Q~ I could read that Defactor facilitates the growth of DeFi by allowing companies from all over the world to access DeFi, but if many governments are opposing any cryptocurrency utility, then how will they convince these companies to use DeFi? Can Defactor convince them?
A~ This is a great question. We are obviously aware of the fact that some countries are sceptical to DeFi, however we have robust KYC and AML processes in place for our asset originators and the liquidity pools we work with will have the same when it comes to the investors. We have a legal team that keeps on top of the regulatory challenges and we work with them to ensure that the platform remains compliant with any rules that are set in the various jurisdictions we operate in.
The asset originators that we work with are willing to work with us to ensure that the funding process remains compliant and we explain quite clearly why we have a robust due diligence process.
Q~ Has any info been released regarding the TGE, why has $FACTR not launched on the market yet?
A~ $FACTR was due to launch earlier this year but due to unfavourable market conditions it had to wait.
The new date for our token launch has not been set but it will be soon, so subscribe here to be notified as soon as the date is set. Be the first to know!
Q~ Do you have any Coin Burn/BuyBack systems or any Token Burn plans to increase the value of Token & attract Investors to invest?
A~ We are using a buyback and make token model.
In this model - platform revenue is used to buyback FACTR from the open market. This creates buy pressure on exchanges.
Tokens that are bought back are then redistributed by the treasury to ecosystem participants e.g. validators, stakers, etc
this means that we maintain the benefits of a fixed supply and buybacks - while importantly being able to continuously issue more tokens to positive ecosystem actors.
This means that there will always be an incentive to contribute to defactor. We think that this is by far the best way to create long-term value for the platform.
Q~ I could read that DeFactor is focused on CeDeFi, but could you really explain us if it will work as the most used bridge to connect both finances? or does it really have to compete with big projects with similar characteristics? If so, what would be your competitors?
A~ Defactor is focused on DeFi and bringing traditional businesses into the world of DeFi and giving them an alternative to traditional financing.
At the moment there is no project that we have come across in the DeFi space that is focused on giving tools to asset originators to allow them to bring real world assets into DeFi and scale - this is very important as businesses need to be able to scale their funding.
We are, behind the scenes, talking to other projects that are providing liquidity to businesses and so we will act as the bridge between business and those pools.
CONCLUSION
Great, they were fantastic questions.
Thanks a lot for giving me the opportunity to talk to you guys and describe Defactor.
Here are the social links again;
LinkedIn:
Telegram:
Website:
Twitter:
and
is the link to learn about our TGE.
It’s really nice having the Defactor project in here!!!
You can check out their Website for more details. You can also follow them on Telegram and Twitter to keep up to date with all things relating to Defactor.
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