Annex x Satoshi Club AMA Recap from the 13th of December

Hello, Satoshi clubbers Another AMA took place in Satoshi Club and we would like to introduce to you the AMA session with our friends from Annex and our guest was . The AMA took place on the 13th of December.

The AMA session was divided into 3 parts with a total crypto reward pool of $500

In this AMA Recap, we will try to summarise the most interesting points for you.

Part 1 — introduction and questions from the Telegram&WebSite

Paul Mont | Satoshi Club:
Hello Satoshi Clubbers! Today we are excited to announce our AMA session with Annex Finance!

Paul Mont | Satoshi Club:
Today’s guest are @DavidAnnex and @GABRIALF ! Welcome! Great to have you here!

Jonah 🏅🎹 | Satoshi Club:
Hello @DavidAnnex welcome to Satoshi Club

David@annex (Will never DM first):
Hello

David@annex (Will never DM first):
Thanks for having us

Jonah 🏅🎹 | Satoshi Club:
Hello @GABRIALF

David@annex (Will never DM first):
we are excited to be here as well

Jonah 🏅🎹 | Satoshi Club:
It’s a pleasure to have you here..

Gabi (Will Never DM First):
Hello Jonah

Gabi (Will Never DM First):
Hello Everyone

Paul Mont | Satoshi Club:
We’re super excited to know anything about Annex Finance

Paul Mont | Satoshi Club:
How’s your day been so far?

Jonah 🏅🎹 | Satoshi Club:
Welcome..

David@annex (Will never DM first):
It’s all good so far, this week will be very exciting for annex and cronos network

Paul Mont | Satoshi Club:
Great to read! And we’re here to hear all about the new stuff that’s coming

Paul Mont | Satoshi Club:
So, without further ado, let’s start! Would you guys please introduce yourselves a bit?

Paul Mont | Satoshi Club:
Please tell us more about yourselves – your past experiences/background, your roles in Annex Finance and also how did the idea for Annex Finance come to life.

David@annex (Will never DM first):
Sure thing, as you can tell my name is David, I’m the founder of Annex Finance. we founded this project with my team called agencywolfe (https://agencywolfe.com/) who are specialized in software design and development with a rich experience on DeFi and NFT development experiences.

Annex is our biggest project yet however.

David@annex (Will never DM first):
@GABRIALF on the other hand, had been helping me and my team on market analysis also, he is my most trusted partner in crypto space

Jonah 🏅🎹 | Satoshi Club:
great to you you and your most trusted partner here with us, how many members are on your team?

Paul Mont | Satoshi Club:
I can see from the website that your team has quite the experience and pedigree working in the space – great works!

Jonah 🏅🎹 | Satoshi Club:
Yes …the website is very great with unique user interactive designs

David@annex (Will never DM first):
where as on project experience, We founded Agency wolfe back in 2016 with our work portfolio on it as well, we had helped built quite a bit of crypto projects in crypto space

David@annex (Will never DM first):
Thank you Paul

David@annex (Will never DM first):
20

Jonah 🏅🎹 | Satoshi Club:
An impressive number I must say

David@annex (Will never DM first):
4 on front end, including myself, the rest on backend

David@annex (Will never DM first):
such as development, market research, business partnership development

Paul Mont | Satoshi Club:
Nice! And what about Annex? I know the project’s launch on BSC and then on Cronos has been recent

Paul Mont | Satoshi Club:
Please tell us more about this project’s vision and mission.

Paul Mont | Satoshi Club:
And by the way, congratulations for being among one of the very first projects launching on Cronos Network!

David@annex (Will never DM first):
We want to turn Annex Finance into a one stop shop DeFi platform with Collateralized lending protocol, AMM, IDO launchpad, and NFT on cross chain. The original plan was to initially launch the platform on BSC and then ETH and Polygon shortly after.

But Justin Sun got us in touch with TUSD, and TUSD had been working closely with us and introduce us to crypto.com……and Crypto.com introduce us to Cronos team where they wish for us to push to be one of their biggest Defi ploatform on Cronos network….so that’s why we ended up in Cronos now. We wish to unity the cross chain platform through our protocol by offering lending/borrowing protocol across different chain users. Be the one stop shop of all things DeFi

I hope that kinda answers your question on that

David@annex (Will never DM first):
Because of this reason, Cronos team will also be co marketing Annex Finance once lending is LIVE

Jonah 🏅🎹 | Satoshi Club:
This is Great.. I’m sure excited to see how far this would go

Paul Mont | Satoshi Club:
I would say that word-of-mouth worked wonders in your case guys

Paul Mont | Satoshi Club:
And by the way history has quite a record for pioneers in a network: they often tend to become the most established ones in the ecosystem

Paul Mont | Satoshi Club:
And I can see from your introduction that the premises look good

Paul Mont | Satoshi Club:
Thank you very much for the thorough introduction @DavidAnnex and @GABRIALF !

Paul Mont | Satoshi Club:
There are many details that we’d like to flesh out and learn about Annex Finance.

Paul Mont | Satoshi Club:
Without further ado, if you agree, we can move to the community questions

David@annex (Will never DM first):
we are shooting to be one of the powerhouse in lending/borrowing for Cronos network at the moment

David@annex (Will never DM first):
Crypto.com are huge on marketing, Cronos network will receive the marketing they deserve. Cronos reached over $1bil TVL in less then 3 weeks since launch, and we are targeting to be the biggest lending platform on Cronos, like Venus to BSC network

Paul Mont | Satoshi Club:
These are outstanding figures… The Crypto.com/Cronos ecosystem is definitely growing super fast. Again, I’m pretty sure most of the value will be reaped by the most professional, value-packed projects in the network

Paul Mont | Satoshi Club:
Would you like to add something else? Or shall we proceed to the questions from the community?

David@annex (Will never DM first):
Being first on their market will also have great impact on proper exposure.

David@annex (Will never DM first):
Please go ahead

Jonah 🏅🎹 | Satoshi Club:
Q1 from Telegram User @Arisabela

Without a doubt Annex has taken a big step by becoming the first platform to offer lending/borrowing on Cronos network, but here is the thing … what are the advantages of operating lending in this chain? Currently there are many possibilities … what solutions does Cronos offer in the face of the vast immense number of lending systems in other well-known networks?

Gabi (Will Never DM First):
Cronos Chain is just like BSC of Binance, All the successful project on Cronos will get direct exposure of Crypto.com exchange, Crypto Defi Wallet and Crypto.com app which has 10M active users.

Gabi (Will Never DM First):
And since we are early into this chain.. we expect a lot of support from both Cronos and Crypto.com down the line

David@annex (Will never DM first):
First of all, We launched on Cronos chain because we, as well as our greater community, believes that Cronos network will be just as big as some of the other network out there. We do not know if they will be as big as BSC or ETH network, but being first on Cronos network with their team’s backing it, it could land Annex in the powerhouse of lending like Aave of ethereum or Venus of BSC. We strongly believe with the help and support of Cronos team and our existing community we can achieve this

the biggest advantage of launching on Cronos? We are targeting to be one of the first. With over $1bil TVL on their network, all of these value could be added into Annex platform for greater utilities in their network

Paul Mont | Satoshi Club:
Definitely agree – being a first-mover greatly adds to a project’s competitive advantage

Jonah 🏅🎹 | Satoshi Club:
It’s exciting to see how you are taking good advantage of your position here… Being the first on Cronos

David@annex (Will never DM first):
even tho we started on BSC, I personally believe lending platform on BSC is way too diluted, if we were to grow the platform, we need to expand at the right time with the right product

Jonah 🏅🎹 | Satoshi Club:
What other chains will you also integrate with?

David@annex (Will never DM first):
As stated on the roadmap, the original roadmap was suppose to be BSC/ETH/Poly

but crypto space is a ever changing world, Cronos wasn’t originally part of our roadmap at all but we some how landed here. I would say we will still try to reach our original roadmap, but should another opportunity arise, we will do everything we can to be known in that market

Paul Mont | Satoshi Club:
Roadmaps are meant to give a guide, but being flexible and seize opportunities is a skill that’s part of many projects successes

Jonah 🏅🎹 | Satoshi Club:
Having what it takes to keep up with the market trends..is more important than sticking to one path way

Paul Mont | Satoshi Club:
We’re on the same page mate

Jonah 🏅🎹 | Satoshi Club:
Oh yes..

David@annex (Will never DM first):
We are trying to be as up to date as possible

Gabi (Will Never DM First):
We are already getting a lot of suggestion from the community for next chain

David@annex (Will never DM first):
We really have our community to thank for, we take suggestion very seriously

Paul Mont | Satoshi Club:
And yes, I definitely agree that taking in the community’s feedback is another core value for a project’s community-focused, healthy development!

David@annex (Will never DM first):
This is not my project, not agency wolfe project, we hope to grow this project with the communities help. Without our community, we would be NO WHERE near where we are now

David@annex (Will never DM first):
Our community is not a big fan of the word “soon”, so we try not to release anything unless we know the exact date of release 😀

Paul Mont | Satoshi Club:
Great!

Paul Mont | Satoshi Club:
Thank you very much for taking care of this. Great answers! Ready for the next question?

David@annex (Will never DM first):
Yes sir

Jonah 🏅🎹 | Satoshi Club:
Q2 from Telegram User @Antoni_azx

An innovative function that your platform offers is the Automatic Holding Rewards mechanism, as I understand it, the $ANN token holders will be able to earn daily interest in their holding assets. Where do these funds come from? What makes this type of rewards sustainable in your ecosystem? The interest amount varies according to the amount of $ANN tokens you hold? Or how does this work?

David@annex (Will never DM first):

the assets were allocated from whitepaper on day one before it was released

David@annex (Will never DM first):
at current emission, we are looking at over 10years before we are fully vested, this is not a short term project by any mean

David@annex (Will never DM first):
For the reward pool, once the reward pool runs out of ANN, epoch reward will no longer provide additional token, this is a fresh new concept of proof of stake different from farming, it helps us prevent early user from dumping, creating a more solid liquidity to our platform

Paul Mont | Satoshi Club:
So this is an Epoch-based form of incentive for long-holders of your token ($ANN), is that correct?

Gabi (Will Never DM First):
yes

Gabi (Will Never DM First):
one more advantage of this is investor can still vote on governance without resetting the epoch

Paul Mont | Satoshi Club:
Do users have other forms of incentives for interacting with/using the Annex protocol? I saw staking and liquidating farming options as well with quite some juicy APY rewards on your web dApp:)

David@annex (Will never DM first):
That is correct, on the 31st day you will be able to claim 6% of your total ANN as reward, everyday after you will earn .2% daily, just keep in mind that if the ANN token were moved out of your wallet at any point, the timer will reset and user will have to wait 30 days again before they can claim

Paul Mont | Satoshi Club:

Sounds like an innovative way to take compounding to the next level, while also taking away any possible smart-contract risk. Cudos guys

Gabi (Will Never DM First):
There are five different ways users can earn ANN rewards –
1) Epoch based rewards
2) Single Staking on Farm
3) Provide Liquidity and Stake LP
4) Auto compounding ANN Pool
5) Supply / borrow supported assets on Lending Protocol to earn APY on supplied assets + Distribution reward in the form of ANN token.

Jonah 🏅🎹 | Satoshi Club:
You currently have an active governance system?

Gabi (Will Never DM First):
Yes we do, we transferred the protocol ownership to community with our first AIP

David@annex (Will never DM first):
Yes we do, and ANN is our governance token, we already have 16 vote passed with 100% success

https://app.annex.finance/vote/all

btw, we are about to do another buy back from our AIP-15 vote, so get it before we buy back 🙂

Gabi (Will Never DM First), [13.12.2021 15:53]
Any changes on Lending Protocol have to go through the governance..

Paul Mont | Satoshi Club:
We also have question down the line regarding the buy-back mechanism

Paul Mont | Satoshi Club:
Thank you very much for the in-depth answers @DavidAnnex & @GABRIALF!

Paul Mont | Satoshi Club:
The next question probes $ANN’s tokenomics (allocations, distributions) and potential future fund-raises and investment plans

Jonah 🏅🎹 | Satoshi Club:
And here it is..

Jonah 🏅🎹 | Satoshi Club:
Q3 from Telegram User @rotoxy

You mentioned in your whitepaper that there will be a total limited supply of 1,000,000,000 $ANN tokens, and initial distribution supply of 50,000,000 tokens. How do you plan to distribute this initial supply? What is the allocation for private sales, public sales? Are there VC seed sale allocation and are you planing a fundraise? Also, when are you planning the release of the remaining supply? Lastly, what is the burn mechanisms for this tokens and what event will you introduce to sustain its value?

David@annex (Will never DM first):
The initial distribution was done through initial sale, so the distribution is already out on the market, you can see the wallet on bscscan at

https://bscscan.com/token/0x98936Bde1CF1BFf1e7a8012Cee5e2583851f2067?a=0x98936Bde1CF1BFf1e7a8012Cee5e2583851f2067

currently we do not have any plan to fundraise additional money, but if we do, we will inform community however

Paul Mont | Satoshi Club:
And by the way, you’ve partially covered this, by sharing $ANN’s distribution infographics before.

Jonah 🏅🎹 | Satoshi Club:
Yes..That’s true..

Jonah 🏅🎹 | Satoshi Club:
Btw what is PLPSA for?

Gabi (Will Never DM First):
Prior Liquidity Price Speculation Auction

David@annex (Will never DM first):
PLPSA stands for Prior Liquidity Price Speculation Auction

as for burn mechanism, currently lending/borrowing platform have around $110m TVL and our protocol is generating money from the platform at around $3-5k a day at the moment, everytime our platform hits $100k we tried to initial a AIP voting to buy back all ANN using the reserve funds. the ANN will then be turned into liquidity provider for our platform and farm token with it, all the farmed token will be burned monthly

Paul Mont | Satoshi Club:
Burned monthly… that means a constantly decreasing supply – so we can say that $ANN is a deflationary token?

David@annex (Will never DM first):
Currently cronos network have over $1bil TVL which are all qualify for lending, should we ever reach….say $500m TVL from Cronos, we will be generating around $15-20k in reserve daily, the buy back will increase ANN value

David@annex (Will never DM first):
Yes

Paul Mont | Satoshi Club:
Beautiful

David@annex (Will never DM first):
We will buy back ANN, put it in liquidity, those token will not be back in circulation, plus all the burned farm token

Jonah 🏅🎹 | Satoshi Club:
This sounds exciting looking at the prospects it has for ANN

Paul Mont | Satoshi Club:
By the way, has the smart contract been audited yet?

David@annex (Will never DM first):
Yes it has

David@annex (Will never DM first):
https://www.certik.com/projects/annex

Paul Mont | Satoshi Club:
Nice! Safety is a very felt concern in the crypto space, it’s really great and relieving to read that you’ve aptly anticipated the issue and have already taken care of that

Paul Mont | Satoshi Club:
Thank you very much for your answers guys!

Paul Mont | Satoshi Club:
Let’s hop onto the next community question, shall we?

David@annex (Will never DM first):
ok

Jonah 🏅🎹 | Satoshi Club:
Q4 From Telegram User @Ajpaa

One of the core features of Annex Finance is it’s Lending platform where users can Lend/borrow supported cryptocurrencies or digital assets. I also read that both the Lenders and Borrowers will be rewarded with $ANN tokens for using the Lending Protocol. So what are the requirements for a user to be a lender/borrower in your platform and which cryptocurrencies does your lending protocol support? How is the colaterizatio ratio for the lending protocol calculated? Will there be fix timeframe for the lending? Is there a structure to resolve circumstance a user is not able to payback borrowed asset? Lastly how would users earn $ANN token by using the Lending protocol?

David@annex (Will never DM first):
There is no requirement for user to be a lender/borrower, you just need to be able to supply the token we support on our platform as collateral, the token collateral % is based on how safe/stable the coin is in terms of price action

if user’s supply collateral dropped below the threshold and borrow too much, and their token all the sudden drop in price, they assets could get liquidated by the automatic liquidation bots, so do make sure you don’t borrow too much

David@annex (Will never DM first):
But @GABRIALF will be able to answer this better than I can, I’ll let him answer this one

Gabi (Will Never DM First):
Currently we have 18 different assets on Annex, all major assets on BSC chain is available and we will keep on adding new assets based on community feedback.
Full list is here – https://app.annex.finance/market

You can find the Collateral CF, Reserves, Liquidity and APYs too

Paul Mont | Satoshi Club:
Thank you for sharing the link

Paul Mont | Satoshi Club:
What will be the collateral threshold/ratio to maintain in order to avoid liquidation in case of borrowing assets?

Gabi (Will Never DM First):
Lastly how would users earn $ANN token by using the Lending protocol?
— By just supplying or borrowing assets user can earn ANN reward on top of the native APY

Paul Mont | Satoshi Club:
So you will also earn $ANN by borrowing?

Gabi (Will Never DM First):
For each assets we have assigned CF, and if the user crosses the borrow limit of 100% the account will get liquidated.

Gabi (Will Never DM First):
Yes in the form of Distribution APY (ANN reward)

Jonah 🏅🎹 | Satoshi Club:
This is quite unique not many platforms do that..

David@annex (Will never DM first):
Part of “proof of stake” concept, reward those who uses the platform which enable more usage

we also have plan to add ANN as collateral supply so users will be able to supply ANN token on our platform to borrow other token such as BNB, just an example….so user can take part in say….binance launchpad without holding any BNB at all

Paul Mont | Satoshi Club:
Sounds great

Paul Mont | Satoshi Club:
Crystal clear, thank you for the in-depth answers

Paul Mont | Satoshi Club:
Question number 5 is knocking at the door. Ready to take it?:)

David@annex (Will never DM first):
If you supply and borrow, you will earn ANN in two channel….you can then use the borrowed token to resupply back into the platform and earn even more ANN, this is basically what a overcollateral is

just be careful that you don’t borrow too much or your original investment could get liquidated if your supply token all the sudden had a price drop

David@annex (Will never DM first):
yes sir

Jonah 🏅🎹 | Satoshi Club:
Q5 From Telegram User @iceVermithraxx

Annex Platform offers Decentralized Auction created to ease the process of launching a new project on the ANNEXSWAP Exchange and Annex supports 5 types of Auctions which include Dutch, Fixed Swap, Sealed Bid, Batch and English Auction but they recommended Batch Auctions for ILO. Can you elaborate more on your Annex Auction? Can you explain on how projects can apply for Annex Auction? What are the keys benefits which Annex auction brings to Projects? Can you also explain on the auction and bidding process and regulations? Can you elaborate on the different types of Auctions which Annex Supports and why the Batch Auction was recommend for ILO?

David@annex (Will never DM first):
Batch auction was only designed for initial PLPSA, it was a system that was design to create initial liquidity for the protocol so only the top buyer will be able to purchase the token initial, this is to prevent initial token sell off

at current stage, we are no longer using auction, we are turning our auction page into IDO launchpad instead now

David@annex (Will never DM first):
Just keep in mind, the whitepaper was written before the project was launch

Jonah 🏅🎹 | Satoshi Club:
Oh this clarifies it then…

Paul Mont | Satoshi Club:
So that will probably make you one of the first IDO launchpads in the Cronos Network! When is the IDO platform’s launch planned for?

David@annex (Will never DM first):
I believe so

David@annex (Will never DM first):
as our main product currently working forward right now is lending, we are mainly focusing on getting lending platform LIVE first, I do not know if there is any IDO platform on cronos at the moment

Paul Mont | Satoshi Club:
Clear… and thank you, you’re giving me so many reasons to get involved as an early user with Annex today haha

Paul Mont | Satoshi Club:
Great, great! Thank you very much! This is the last question for this very first part of the AMA, then we’re heading into the LIVE part of the session.

Jonah 🏅🎹 | Satoshi Club:
Q6 from Telegram User @victorogb

Reading through the discussions and publications in your telegram group, I discovered that Annex has adopted a system of monthly burns and buybacks. As a matter of fact, it has been able to burn a total of 67,624 ANN tokens as of December 1st 2021. Though this token economic models aren’t new, but may we know why Annex has opted to increase its Token burns and buybacks every month? For how long will this operations be performed? Also, asides these attempts to create scarcity and increase market value of $ANN tokens, what other alternatives does Annex employ to strengthen market value of $ANN tokens?

David@annex (Will never DM first):
So, going back to the burn question, as stated earlier on, Annex is a deflation token, our plan is to buy back ANN token using our reserve, as the reserve gets bigger and bigger, we will be able to farm more and more token from our platform, all of those tokens will be burn overtime and we have no plan of stopping it, this is to decrease the token emission

David@annex (Will never DM first):
As for alternative utility, as at the moment we still haven’t release our two biggest utility for ANN, NFT marketplace currency and collateral supply.

we are hoping to release NFT marketplace probably sometime in January so user will be able to create and sell NFT on our platform using ANN token as utility. Once we have price oracle, we will also list ANN token on our platform as supply collateral allowing user to earn by borrowing token using ANN as collateral

Paul Mont | Satoshi Club:
Looking forward that great piece of news to be announced! Thank you for your answers!

Paul Mont | Satoshi Club:
It has been a great time and now we must proceed to interact with our dear users into the live segment.

Paul Mont | Satoshi Club:
The time has come for the second and most impressive part of the AMA. A flurry of question is about to be unleashed! 🌪 I hope you are you ready @DavidAnnex @GABRIALF

Paul Mont | Satoshi Club:
We will now open chat for 2 minutes and our community will ask you some questions

Paul Mont | Satoshi Club:
Let’s go @Jonahapagu

Jonah 🏅🎹 | Satoshi Club:
Alright