A new month begins and at satoshi club we continue to educate our community and giving great rewards for it. So, today we would like to tell you about the AMA session with our friends from FACT. The AMA took place on October 1st and our guest was Chris Fletcher.
The total reward fund was $500 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 COMMUNITY QUESTIONS
Mary | Satoshi Club: Hello, Satoshi Club 😀 We are happy to announce that today we have FACT finance as our guest @Chrisfletcher welcome to Satoshi Club!!
Chris: Hi everyone, glad to be here today to answer your questions.
Mary | Satoshi Club: Tell us some interesting facts about yourself) And, of course, how did you start your journey with FACT finance?
Chris: My name is Chris, i’ve started the Crypto in 2016 as a normal trader and as an entrepreneur it sparked in my mind to pick a Professional team and make something to add value to the Defi world.
Mary | Satoshi Club: Good, when this idea about FACT came to you? Was it yours?
Chris: Early in July when i was confused about the Variable APY and interest rate loans that i’m taking from other projects. then i asked myself why there’s no project that have clear 0% interest rate and why the staking is only for staking.
So i came up with FACT to offer bother services. the 0% interest loans and the staking users will be having more than one revenue stream. Yes, the initial idea is mine and it was modified and developed over the time, for example we’re working on YFACT which will empower FACT holder and i’m going to explain how later on.
D. | Satoshi Club: Thank you for intro Chris! i think we can star with questions from our community.
Q1 from bitcointalk user let098765
If FACT Loans Interest Rate Is 0%, how will you earn profit from your customer? Is there any hidden or additional charges in making a loan with Fact?
Chris: it’s not a hidden fee it’s a fixed processing fee explained in the website and the whitepaper. This fee will be fully distributed on the Liquidity providers (staking users) and this is the second revenue steam for the LP.
In return the borrower will be incentivized by paying off the loan in FACT or in the initial collateral which is DAI. So it’s always a winning deal for them by securing their collateral back if FACT value has decreased.
Mary | Satoshi Club: And what about your profits? Will it be enough for team?
Chris: It was when the Team’s wallet was 1.35M FACT but we’ve had a meeting discussing how to preserve the FACT value ans we’ve taken an important decision to burn 90% of the available tokens and it took place bringing the Max supply from 16M FACT to less than 3M FACT. It’s a motivation for all the team to keep working hard to maximize the value of FACT. Also it was effective bringing the price from almost $0.5 to over $2 once we’ve announced the burning.
D. | Satoshi Club: For example, if I’m a newbie in crypto and not good at finance, all those rates/loans etc. would you still recommended me use your service?
Chris: If you have the opportunity to borrow any commodity and you’ll be a 100% in profits i believe that everyone will chose borrowing rather than Buying FACT.
Why you’ll be always in profits from borrowing:
- 1-FACT value increased in this case you can keep your borrowed FACT and don’t pay off your loan (we will liquidate your collateral once it exceeds the collateral value) this will increase the demand.
- 2- if FACT value decreased during the 6 month you can pay off your FACT amount borrowed and take back your full collateral so you’ve secured yourself.
Q2 from bitcointalk user linderm @nata_jakarta
I want to stake in FACT Lending Pool. What will be the revenue from it and what are the conditions?
Chris: Actually you have 3 revenue steams by entering the FLP.
1-the fixed rewards from the staking rewards wallet which is 350K FACT dedicated to the FLP the APY is 57.5% per year (no locks as you can unstake anytime).
2-the 2% processing fee which will be distributed on the staking users (Liquidity providers).
3-the LP tokens to use it later on for farming YFACT which is going to be released by end of October.
Mary | Satoshi Club: And now, as i see, your app in beta stage, yes? So, i can’t borrow now? Or can?
Chris: Yes, the bonus pool which was released a few days ago is dedicated for staking only and the smart contract is audited. All the smart contracts will be audited again by Open Zepplin team for FACT V2.
FLP will be live on the 10th October and the loans will follow a few days after.
Q3 from Telegram user @abedmahmud
According to your whitepaper, FACT is a decentralized finance ecosystem that allows users to borrow FACT directly from the liquidity pool by paying a one-time processing fee to the pool participants. But what happens when the demand is bigger than the pool? people wouldn’t be able to borrow?
Chris: Loans won’t be available once the pool reaches 25% of the FLP liquidity.
Mary | Satoshi Club: Btw, can you tell us more about loan liquidation? When it happens?
Chris: Good question. Liquidation will be fully automated. i’ve had a meeting yesterday with Chainlink to use their services to detect the FACT value versus DAI (the collateral) once the FACT value exceeds the DAI value that you’ve deposited the loan will be liquidated automatically from the market by buying FACT with the same liquidated DAI and it will be added back to the FLP automatically.
Unlike other liquidation systems which is offering the liquidated loans on a discount. 🙂
Mary | Satoshi Club: So, you have an agreement with Chainlink?
Chris: Yes. they’re the most trused when it comes to the price determination.
Q4 from Telegram Username @konditer_rolex
You have a very unusual token burning program. This is napalm, I would say. How is it possible to burn 90% of the tokens? Is it about a total supply? Or is it a specially created fund to support liquidity? Then what part of the total supply?
Chris: Refer to FACTNOMICS on the website. The initial one was 16M FACT. we’ve burned the wallets that is available and no one owns it like the liquidity pool (5.5) wallet and the staking rewards which was 7M alone. what we can’t burn is the circ supply because it’s owned by FACT holders. also the marketing wallet after creating a pool on burning or not burning it and the FACT holders have chosen not to burn it as this is our marketing funds for getting listed on new exchanges and for the marketing campaigns which is activated from day one.
Mary | Satoshi Club: You have bounty campaigns? They are live now?
Chris: Yes we have a wallet for security and bounty program this Wallet was 150K FACT and after burning it’s only 15K FACT around $25K and i’d be happy if anyone can detect any bug on the website or the smart contract. we’ll have a poll to decide how much would they take from this wallet. 🙂
Q5 from Telegram Username @Tony253210
Sometimes be eligible to use a loan is very hard, so can How FACT solves this? What are the guidelines to get access to a loan? Also there exist a borrow limit per user?
Chris: There are no restrictions on the loans all you need to do is deposit collateral in DAI. you’ll be eligible for up to 80% collateral factor loan.
D. | Satoshi Club: Do you accept only DAI? i cannot use any other stablecoin?
Chris: Yes the plan is to use the most stable token which is DAI.
Q6 from Telegram Username @Jonahapagu
In One of your early articles in a solution tagged as “new revenue stream” it was stated that liquidity providers are not eligible for staking rewards as long as they’re participating in the liquidity pool … Yet another of your article states that By staking FACT, you’ll be automatically recognized as a Liquidity Provider and you will receive a share of the 2% fixed borrowing fee and also a part of the tokens (7 million FACT) allocated for staking rewards can you help clarify what is meant on this two articles as this appears contradictory to me… Who are the liquidity providers and who are the stakers?
Link to early Article: https://medium.com/@fact.finance0/financial-active-collateral-token-redefining-defi-loans-and-staking-2097e369335b
Chris: Bonus pool is for Staking only as it’s highly rewarded already 0.15% daily and a 5% bonus every 30 days on your FACT amount. The one in the article is referring to the FLP (minimum amount to enter this pool is 500 FACT) >> 3 revenue streams.
Mary | Satoshi Club: So, that’s different pools) Ok, and where can i get 500 FACT now? Which exchanges?
Chris: We’re listed on Uniswap, Hotbit and more exchanges are coming in October including (Probit and Kucoin).
Mary | Satoshi Club: So, Probit will be soon) Don’t you afraid to list on Kucoin?
Chris: They’re fixing what happened. i believe they won’t lose their reputation adding to that we’ve created a poll to the users on the Telegram group asking if they want to change the plans and seems like everyone likes Kucoin still.
D. | Satoshi Club: What fees for withdrawal on Hotbit? that exchange has crazy withdrawal’s fee sometime.
Chris: It was 29FACT and they’ve reduced it to only 1.2FACT once we launched the bonus pool.
PART 2, TELEGRAM COMMUNITY LIVE QUESTIONS
The chat was open for 80 seconds; a lot of questions were posted by Satoshi Club community. Our guest chose some of them.
Q1 from Telegram User @bitboyss
How did FACT liquidity pool and tx fees design differ from other projects? And what is the maximum FACT amount that a borrower can get from a loan?
Chris: Liquidity pool tx fees are determined by the network based on a lot of factors not controlled by us. there’s no limits since you have the DAI collateral and you will be eligible for 80% collateral factor to borrow FACT since the pool has more than 25% FACT tokens to lend.
Q2 from Telegram User @GoldRocket27
What is the difference between FACT and YFACT tokens? Why do you need two tokens and what functions do they have?
Chris: YFACT as a project came up after launching fact to empower the FACT holders. let’s say we need one more revenue for fact holders which is Yield Farming we will need a long process to get listed on any other YF protocols but we’ve decided to launch YFACT and it will have its own DEX and Yield farming pools.
Q3 from Telegram User @Manugotsuka
How many control i have of my funds? Can i move my staked funds without limit? Fact can be considered a fully non – custodial platform?
Chris: You can unstake your FACT anytime without any restrictions the same condition is applied to the loans as well.
Q4 from Telegram User @Sefirot998
I understand that if current supply is 3,082,428. Are you planning to do a Token burn soon?
Chris: We’ve done all the burning so far. But once we get listed on Kucoin we’ll have another poll asking the community if they want to burn a percentages of the marketing wallet.
Q5 from Telegram User @atusxzx
Defi is a very hot keyword at the moment, many projects have started cooperating with DeFi platforms. So is FACT planning to cooperate with DeFi projects and develop towards DeFi in the future?
Chris: Yes we’re already making partnerships with other Defi projects since it will add value to FACT.
Q6 from Telegram User @Nickkiii
I Missed the FACT bonus Pool staking in September, when is the FLP Launch and how do I participate?
Chris: Sometimes you’ll find a room to enter the bonus pool if you keep your eyes on. on the 10th October you’ll be able to stake your FACT with minimum of 500FACT for the FLP.
Q7 from Telegram User @araceley
What is the difference and relationship between YFACT and FACT?
Chris: Once you enter the FLP you’ll receive LP tokens and you can use it for YFACT farming later on.
Q8 from Telegram User @Rivaills14
What a special for your security? And what make you confident is safe? I think security its important, please tell us about security of xhumanity?
Chris: Functionality wise we are carrying out our own unit testing then the security comes to make the smart contract audit to maximize the security of the smart contracts this is what makes me confident before deploying any smart contract.
Q9 from Telegram User @konditer_rolex
Why did you abandon the more familiar practice of charging interest on loans? Perhaps the interest rate would bring more income to the platform.
Chris: The 0% interest rate will bring enough borrowers and this will affect the users to provide more liquidity since they’re taking the 2% processing fees and it will increase the FACT demand.
Q10 from Telegram User @cengizhantekin
You say that there are two revenue streams for liquidity providers. What are these streams and what is the ROI for each?
Chris: FLP staking rewards are 57.5% APY + the 2% processing fee distribution on the LPs + the LP to farm YFACT.
PART 3, QUIZ AND INFO
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about FACT. A link to a Quiz form were sent into the chat. Participants had 10 minutes to answer. 300$ were distributed between the winners.
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