Educational task of Satoshi Club drives us to acquaint you with all new projects. We were delighted to welcome our guest from Collateral Defi. The AMA took place on March 27th, 2021 and our guest was @COLLDEFI.
The total reward pool was $1000 and was divided into three parts. In this AMA Recap we will try to summarize some of the most interesting points for you.
Part 1 — introduction and questions from the Telegram&Bitcointalk community
Gold Rocket | Satoshi Club: Hello, dear Satoshi Club community! We are very glad to conducting AMA with Collateral Defi! Today our guest is @COLLDEFI
Andrés M. | Satoshi Club: Welcome @COLLDEFI, it’s an honor for us to have you here
Gold Rocket | Satoshi Club: Hello and welcome to Satoshi Club, @COLLDEFI 😀!
Collateral Defi: Hi guys
Gold Rocket | Satoshi Club: Let’s start! Introduce youreself please. How did you get to be involved in crypto & Collateral Defi?😊
Collateral Defi: Thanks so much for having me. I am Chris Longden CEO & Founder of Collateral. I first got involved in the Crypto space back in 2017. It probably doesnt seem that long ago – however it feel like a lifetime in Crypto! So I would not consider myself an “OG” however I have seen the rises and falls along the journey.
Gold Rocket | Satoshi Club: quite right. after entering crypto in a bear market, it is nice to go to a bullish😁
Collateral Defi: I was introduced to Crypto by a long standing friend from University. I am for a traditional CEFI finance background, in banking and payment services processing. He mentioned blockchain to me and ethereum in February 2017 – when eth was around $17.00! It quickly jumped up and then I looked in greater depth and detail and started my journey into crypto. Also applogies for any typos – at least you know its live!! 🙂
Gold Rocket | Satoshi Club: You are in the right place at the right time😁👍🚀
Andrés M. | Satoshi Club: Great background, congratulations
Collateral Defi: I think like anyone – it would have been good to been earlier – however all of us are early in the space in terms of mass adoption. I heard a fact the other day….. which made me smile.
Gold Rocket | Satoshi Club: Thanks a lot for the intro! Ready to jump into community questions?😊 Share with us🙏
Andrés M. | Satoshi Club: Please share it with us before the first question😁
Collateral Defi: It was if you are in crypto now its the equivalent of been in the internet space in 1997!! So you all need to take credit for that – you are way ahead of the curve
Serg | Satoshi Club: Nice to have you here 🙂 I know a guy who bought 10,000 ETH at 7$ and sold at 14$ 😁 so, none of us are perfect
Collateral Defi: Exactly – I am sure we can all share some of those stories. I bought in Nexo in the ICO and sold mine at $0.27
Andrés M. | Satoshi Club: Haha don’t forget, HODL
Gold Rocket | Satoshi Club: wonderful experience 😁
Collateral Defi: Anyway great to me here- a huge community it seems and privledged to be here
Serg | Satoshi Club: I bought my first BTC at 600$ and sold at 660 😁 let’s jump to the questions
Collateral Defi: Yep in Crypto everyday is a school day!! Always learning which is why its so interesting and exciting
Q1 from Telegram user @bitcoinistic
Collateral aims to be a payment gateway that lets users collateralize crypto to facilitate payment for goods and services. Does this mean for example: I have Bitcoin worth of 1500$. I want to buy the latest iphone or samsung. I put my BTC on your platform and then I can buy the smartphone? What is the further process? How do I refund the loan?
Collateral Defi: Ok
Gold Rocket | Satoshi Club: An evening of memories❤️You guys were touching my heart 😁
Collateral Defi: Thanks for the question @bitcoinistic. Yes ok – this is a great example to work with. If you have $1500 in your Collateral Wallet and wish to purchase the latest IPhone or Samsung. You will have to use a merchant or payment gateway that works and accepts Collateral. If you are in said store either online or instore. You will purchase the item and go to the checkout as normal. You will then be presented with a QR code. The QR code will present the purchase price of the item. Let’s say in this example, $500 for a phone. The amount of collateral that will need to be wrapped and place in the smart contract will be $1000, as we use over collaterised smart contracts, to protect both the borrower and the purchaser. The user will click accept through the Collateral App and be able to leave the store with their new item. Collateral will arrange for the retailer to be paid in their native currency. In terms of repaying the loan this can be done at any time. The user will enter the APP and repay the total amount plus any interest costs that occur. I hope that answers your question & again thanks for asking
Gold Rocket | Satoshi Club: Sounds good
Collateral Defi: Its quite straightfoward in terms of process.
Andrés M. | Satoshi Club: Thanks for the clear answer, personally I think is a great opportunity
Collateral Defi: Thanks so much. I think thats why we have had so much traction. It got featured yesterday on CNBC- Crypto Banter with Charles Hodgkinson – Cardano -which was unreal.
Gold Rocket | Satoshi Club: it’s incredible!👍
Collateral Defi: We are just setting out so to have people like him, Ran Neuner, etc… talking about Collateral its mind blowing and I am so pround – Hope you guys will come and support us on the journey
Andrés M. | Satoshi Club: Of course we want😁🥳
Serg | Satoshi Club: we will 🙂
Gold Rocket | Satoshi Club: We are with you!🤝 We are also very excited! And we want to ask if you are ready for the next question? 😊
Collateral Defi: Yes fire away 🔥
Q2 from Telegram user @antonerem
The field that you’re trying to enter needs change, but it’s kind of conservative. Can you tell us if you already have the deals with Visa and Mastercard? Without them, you won’t be able to become a big player.
Collateral Defi: I could not agree more this market does need to see change especially from people within the Crypto space. We ultimately want to positon ourselves with the likes of Mastercard & Visa, however this is a complimentary product to these services already in the marketplace. VISA & Mastercard are payment services providers in the traditional sense, you make a payment and the FIAT currency is taken from your account.They are both looking more and more into the crypto space along with the likes of Paypal, which I personally think is great for Crypto and mass adoption. However if you pay with these services you are saying goodbye to your Crypto- this is what Collateral offers as a difference and alternative. I personally think the market is so vast – we are offering a unique and alterntive Crypto focused product – then move to mass adoption. Hopefully that answer your question – thanks again for taking the time to ask 🙂
Gold Rocket | Satoshi Club: Yes you are right. Your idea is good! Ready for the next question?😊
Collateral Defi: Of course
Andrés M. | Satoshi Club: Those are the tools we need to increase the mass adoption
Collateral Defi: Yep exactly
Q3 from Telegram user @antoine_dje
You website is not secured, and the website that you want to use for your new brand is not working at all. Doesn’t this send a wrong message? I mean this are quite simple stuff, why is it not handled?
Collateral Defi: Wow – ok – thought this might get bought up today : ) As per the telegram chat and annoucment channels- we have gone throough a complete new rebrand- I dont know if you guys have had chance to see the new rebrand and lightpaper?
I have put it here so you can read it – if you havent had chance too. We took advice from our advisors and we were told to rebrand ahead of the TGE. To do this in the time constraints ahead of the IDO on Duckstarter the team here have moved heaven and earth. In fact they are all in now working hard – so a big thankyou to my Collateral Team. The new website has been completed and rebranded this will be live prior to the TGE – first one on Duckstarter on 31st.
Andrés M. | Satoshi Club: Could you share links of your channels to join? 😃
Gold Rocket | Satoshi Club: Thanks for sharing! we will be happy to read
Collateral Defi: So its in hand and will be live and of course secure 🙂 COol. I can share them give me one min
Andrés M. | Satoshi Club: Congratulations for that amazing job 😁👏
Collateral Defi: Here is the annoucment channel – this is where any news is relesed first we also have a chat room so it would be great to see the Satoshi club team over thereI will share twitter now
Andrés M. | Satoshi Club: Thanks, let’s proceed with the next question if you want😃
Gold Rocket | Satoshi Club: Join Satoshi Clubbers🚀🚀🚀
Andrés M. | Satoshi Club: Let’s join community🥳
Collateral Defi: We initially went with Collateral DeFi – however further to advice etc… we are rebranding as Collateral Pay- which was seen as more customer/ user friendly from the focus groups we orgnaised. organised
Q4 from Telegram user @jefer_bn
How will you make the onboarding process for merchants? Currently payment processors as PayPal don’t treat the merchants fair, and can block their money and close their accounts without even announcing. What do you have to say about that?
Gold Rocket | Satoshi Club: Thanks for the clarification😊
Collateral Defi: Thanks @jefer_bn. No worries. I would have asked the same question BTW!
Ok question 4-
We have a two pronged attack / strategy – for onboarding merchants
. We want to make Collateral accessible and fair to all users of the protocol of course. We will link in with existing payment services providers this will make an impact on the larger scale merchants. However we have also thought about the smaller scale merchants and one man bands wanting to take Collateral / Crypto payments. This will be done via an APP to smaller merchants. They will be able to set up a Merchant account and offer Collateral as a service to their users, by creating an account and subject to passing KYC. They can then link their current account and have access to a new breed of customer. In terms of fairness. I cant not really comment on this as it’s a case by case basis – I am not sure why that will have happened with Paypal so not in a position to answer that about blocking payment. Hope that answers your question
Andrés M. | Satoshi Club: Will it work as a P2P market?
Collateral Defi: I am trying to be as detailed as possible for you guys but appreciate you have to wait for me to answer 🙂 Yes – it will a decentralised P2P marketplace
Andrés M. | Satoshi Club: The answer was so clear, thank you👏😁
Gold Rocket | Satoshi Club: Thanks for your answers! Speaking of safety. In your light paper, I saw the planned audit. Have you already decided who will do it?
Collateral Defi: Yes we take security extremely seriously at Collateral
Gold Rocket | Satoshi Club: this is very important and commendable👏
Collateral Defi: With this in mind we have taken a slightly different approach to auditing – we have had two seperate independent firms carry out the audit. The final one is been done by who we have been told is the best in the business…… this has been through experienced investors who have been round the block some time. The company recommended to us by the likes of AU21, A195 Capital is called Zokyo. They are carrying out the finall audit – so with three independent checks we feel we have gone above and beyond – which of course is the right thing to do. Crypto can be a crazy place so got to be as safe as possible! Thanks for that
Gold Rocket | Satoshi Club: Thank you for your answer and for your responsible position on this issue.👍
Collateral Defi: Cool
Gold Rocket | Satoshi Club: Ready to proceed to the next question?☺️
Collateral Defi: Please
Q5 from Telegram user @mike_not_mike
On a first glance, I can do the same on Venus or other platforms. But when I read the Lightpaper, I see that it is something different and much more interesting. What bothers me is: If I buy in UK, Germany, Russia, how will you convert it to local currencies from US dollar and with what costs? If it’s noticeable, like 3-5%, I think it’s big.
Collateral Defi: @GoldRocket27 – thanks for hosting
Gold Rocket | Satoshi Club: With my pleasure❤️
Collateral Defi: To be honest there are lots of platforms out in the space, from Venus to Compound. Let me just check something give me 30 seconds. I see that Venus Marketcap is $395,000,000! So nice to be even mentioned in the same sentence! @mike_not_mike!! From launch out market cap is only $1,200,000 so plenty of room to grow. Apologies back to the question. Yes I see your point. We look after all the local currency conversions through the protocol and in terms of the cost with us going down the Polkadot network the fees will be minimal. Like with all operations this will reduce with scale. Also it should be noted with us operating the business via smart contracts and using blockchain tech, we have not got the large overheads that these large corporates have. That’s the whole principle of what we are trying to achieve – a streamlined payment gateway which is accessible and beneficial to all stakeholders- Hope that makes sense
Gold Rocket | Satoshi Club: You have a win-win position😉
Collateral Defi: We think so. Sorry was last thing on that point. Question. Unlike banks in the traditional CEFI spce we dont operate large bonus structures!
Gold Rocket | Satoshi Club: thanks for answers! now will be the most beautiful part of our AMA. live questions. you need to pick the top 5 questions and answer them. Are you ready?🚀🚀🚀
Collateral Defi: A proportion of the profits (after business overheads) are redistributed back to Collateral token Hodlers. Its a reward system similar to a tradition dividend.
Gold Rocket | Satoshi Club: it’s very tempting👍
Collateral Defi: Let me just have a quick sip of coffee and stretch my fingers
Part 2 — live questions from the Telegram community
Q1 from Telegram User @Dahyor4
Can we know more about your roadmap?
Collateral Defi: Hi @Dahyor4 the roadmap is in the lightpaper I have posted it in the chat above this will give you a good insight to the journey ahead for Collateral. We will of course update through the social channels of any new appointments etc… thanks for asking
Q2 from Telegram User @Andrey_Seleznov
Could you please clarify what is the incentive to use collateral over the traditional payment where fiat or crypto is deducted on purchase and brush up on the repayment fees? Thank you! And I am so stoked for the project!
Collateral Defi: The benefit of using Collateral is you never sell your crypto, so no capital gains tax and you can have all the future increases in the crypto. Imagine selling 1 BTC in June for $10k to buy a car, 1 BTC is now worth $55k, so effectively the car would of cost you $55k. If you sell you never see the upside in crypto gains.
Q3 from Telegram User @topind7
In what way do you stand out among your competitors and what is interesting and unique about Venus?
Collateral Defi: Thanks we spoke about Venus in the question earlier- so probably good to answer this. The MAIN difference is the Collateral Pay product in the portfolio. Venus will allow you to leverage your crypto which is great – however how are you spending it? Collateral acts as a payment for the user at the Point of Sale (POS). WIth Venus for you to spend – you still have to send to your bank through the network which takes time ans costs fees.
Q4 from Telegram User @smelekin
There was a person who bought a pizza with 10.000 btc. If Collateral was live at that time, could that person still own his bitcoins?
Collateral Defi: If Lazlo the infamous BTC pizza man, has used Collateral to buy his Pizza he would still own all his BTC and have $550,000,000, instead he got 2 pizzas 😔
Q5 from Telegram User @K2ice
You claimed you don’t t operate large bonus structures. So what kind of bonus structures do you operate?
Collateral Defi: Hi Hakeem – we have two tokens within Collateral. COLL which is the native token and COLLG which is the Governance token. The bonus structures and how funds are distributed will be decided by the governance token holders- in a truly decentralised ecosystem. It will be put to votes
Part 3 – Quiz Results
In the final part we tested your knowledge in terms of Collateral Defi. They’ve prepared 4 questions for this part. The total reward pool for quiz was 800$ .
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