Formation Fi x Satoshi Club AMA Recap from 19th of May

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 Formation Fi and our guests were @edmondtruong @joshuahong80 @Gagattzo. The AMA took place on 19 May.

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 community

Mary | Satoshi Club: Hello Satoshi Club! We are happy to announce our AMA session with Formation Fi! Welcome to Satoshi Club😀

Paul Mont | Satoshi Club: Today’s guests are @edmondtruong @joshuahong80 @Gagattzo ! Welcome guys! Great to have you here!😁

Mary | Satoshi Club: [ 😑 Sticker ]

@edmondtruong @joshuahong80 @Gagattzo welcome here 😀

Edmond Truong: Hello everyone!!!

I’m happy to be here!

Mary | Satoshi Club: Hi, Edmond! How are you today?

Paul Mont | Satoshi Club: Hello Edmond! Glad to have you here 😁

Edmond Truong: I’m doing great, I’m looking forward to sharing the FORMATION project

Paul Mont | Satoshi Club: …and we can’t wait to learn more about the project 😉

Krzysztof Gagacki: Hey

Mary | Satoshi Club: Awesome! So, let’s start 👍

Edmond Truong: Let’s go!

Krzysztof Gagacki: Let’s bring it on 😃

Paul Mont | Satoshi Club: Welcome Krzysztof! 😁

Mary | Satoshi Club: Welcome here!

Paul Mont | Satoshi Club: So, first things first 🙂

Please guys, tell us more about some of the core concepts behind Formation.Fi 🙃

Also how did you get into crypto? Please share a bit of your background as well!

Edmond Truong: The main core principles or concept of Formation Fi is taking into consideration and analyzing risk. If we take a look at the current market, there are no yield farming products that successfully tackle or even address risk.However we will through our core principle of risk parity. We are taking tried and true fundamentals that have been used for 10-15 years in traditional wall street and bringing it into DeFi.

Formation’s main objective is to truly end the ongoing need for yield chasing and making yield farming much more practical for the entire space and ultimately take that next step to make DeFi to the next level.

Formation Fi is revolutionizing portfolio construction by introducing a risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks using the basic principles of the Risk Parity movement.

I come from a traditional finance background and started my crypto journey working with Harmony protocol back in 2019. However, after I went on to start my first defi project which involved cross border transaction and conducting OTC deals with kraken, galaxy digital, huobi and a lot of these major otc desks, after that just helped genesis shards with their launch and finally on this journey to bring formation to the community as well.

Mary | Satoshi Club: So, how’s our portfolio today?😀

Did you ever regret that you are in crypto?

Krzysztof Gagacki: Before crypto I founded one of leading Europe’s digital publishing company dedicated to women content. Exited to Marquard Media in 2015. In 2016 I co founded first fully decentralized lottery system on ETH. That was one of the very first DAO, project was anon. Community governed. I also founded Swiss blockchain company dedicated to DAG technology. Which still operates in Switzerland.

Mary | Satoshi Club: Is that lottery system still alive?

Krzysztof Gagacki: I’m not a part of it anymore since it was seriously investigated by gov agencies, because lottery business is fully regulated and usually owned by governments.

So it was ahead of their times a bit 😅

Paul Mont | Satoshi Club: I guess governments care about keeping their monopolied privileges 😐

Mary | Satoshi Club: Gotcha! But experience stays with you😉

Krzysztof Gagacki: Yes. That put me on the keynote circuit, where I met Joshua Hong our other co founder. Joshua is a serial entrepreneur based in Silicon Valley. His last company was sold to Visa. He also had VC fund before getting into blockchain space.

Paul Mont | Satoshi Club:[19.05.21 19:05]

Brilliant, thank you for the keynote introduction guys 😉

Krzysztof Gagacki: This is Josh bio: https://about.me/joshua.hong

Mary | Satoshi Club: Wow, Visa👏👏👏

Paul Mont | Satoshi Club: Yes, we were expecting Josh as a guest to Satoshi Club as well! 🙂 This will partly make for satisfying our Satoshi Clubbers curiosity! Thank you for sharing!

Would you like to add something? Or are you ready to proceed to the questions from the community?🚀

Krzysztof Gagacki: What I can say is Josh is mainly working with our hedge fund analysis team for risk parity portfolio construction so he is pretty busy, as I am more concentrated on the product and dev itself.

Also we just refreshed our website a little bit to be more alligned with the App that is coming up!

https://formation.fi/

Paul Mont | Satoshi Club: I had the pleasure to have a before and after peek at the website and I can honestly say that I love the actual looks of it, it does look fantastic 😁

Krzysztof Gagacki: Thanks. Wait I till you see the app

Paul Mont | Satoshi Club: Can’t wait for the news haha 😁

Let’s hop onto the community questions!

Are you ready?

Krzysztof Gagacki: Yes

Let’s go then 😉

Q1 from Telegram user @victorogb

Formation Fi, will be built around seven guiding principles to which the protocol will effectively work and deliver the core values of a DeFi revolutionary portfolio constructor. Some of these principles includes; Chain agnostic, low transaction cost, radical simplification, investment over speculation and a host of others. Considering the current state of DeFi investments and product offers, how would Formation Fi properly integrate, manage and scale these principles for best practices and with an improved financial portfolio, and how will it properly delegate these far reaching principles to harmonising DeFi’s short comings?

Krzysztof Gagacki: Basically our analysis team is working on this set of framework tools where we pull data of volatility factors across diff yield farms as well as their standard deviation, to better understand principles of the risk. They algo will also look into currently tvl being in staked in those vaults do adjust to the size and eventually add negatively correlated assets to offset the pure LP risk. And You as a users don’t need to care about all this technical issues since all You do is deposit your native currency and get the constantly rebasing index.

Mary | Satoshi Club: Let’s talk about such days as today, can you give us example or explanation how our portfolio will look like?

Volatility is huge, but not positive, will Formation Fi save us from losses?

Krzysztof Gagacki: Your portfolio will be heavily offset with negative correlated assets to btc and those will be even amplified with small leverage. Good example is Matic as a negatively correlated assets( which is also one of our key backers). And what happens if there will be non negatively correlated assets? We will create synthetic. Here comes another our partner Synthetix.

In days like today risk parity portfolio construction is something you def need to have.

Mary | Satoshi Club: Yes, that’s why i am happy to see you here today 😀

Krzysztof Gagacki: Where all APY are basically being rekt by IL.

Paul Mont | Satoshi Club: I had the “luck” to read about risk parity in the past and so many analysts have commented on how this strategy has yielded some incredible results in post-crises periods in traditional finance markets 😉

Krzysztof Gagacki: Yes it was developed for over 20 years. But never actually available to the public. Formation is willing to change that 🙂

Paul Mont | Satoshi Club: Probably the best performing asset allocation strategy… it is so great to see it transposed in crypto. So much knowledge on which to reap on for the Decentralized Finance of the future 😉

Great answer! Thank you very much!

Let’s move onto the next question, shall we?

Krzysztof Gagacki: Yes

Q2 from Telegram user @KeymerS

I understand that algorithmic predictive intelligence is effective in helping to control risks, but is this really the only benefit it will get? Couldn’t it be used to further boost profits even if you assume a little more risk?

Krzysztof Gagacki: It will. That’s is why first you choose your index ( and strategy comes with it) based on your risk profile. The Raging Bull Alpha – is for the risk takers. Where we amplify those highest performing assets and YieldFarms, as well as LP’s.

Also

You will be able to stake that index in special pool to receive event higher APY and rewards.

Paul Mont | Satoshi Club: So FormationFi investors/users will be able to pick the index/strategy they feel more inclined to, according to their personal risk/reward appetites, right?

Krzysztof Gagacki: Exactly. That will be based of 4 different index tokens. Alpha, beta, gamma and risk parity.

Mary | Satoshi Club: As i remember you have 4 strategies, right?

Paul Mont | Satoshi Club: Beautiful… It’s all about creating a tailored product for every user’s need. I believe that’s the thread that has tied together the most successful crypto projects that we know today 😉

Mary | Satoshi Club: Oh, yes, it’s index tokens!

Thank you for your answers! Ready to proceed?

Edmond Truong: Yes we are

Q3 from Telegram user @yellowchamp

In FormationFi, there is a Profit Sharing features that there will be a 50% of Protocol Revenue in which $FORM token entitles its holders a right to vote and a 50% of future net income generated by the protocol. So, is this 50% revenue sharing applicable to all holders of $FORM token even only hold a little amount and some are being staked? How it would be distributed to $FORM holders? Why does your platform decide to share this 50% of protocol revenue? What is the motivation and purpose? Is this profit sharing consider a long-term program for FormationFi? Thank you

Edmond Truong: Yes it’s a long term, we are progressively decentralizing governance. Later on it it will be up for the community to decide on the profit sharing ratio. We want to make it as fair as possible.

Mary | Satoshi Club: So, they even can increase it?

Edmond Truong: If the vast majority decides too

Paul Mont | Satoshi Club: Crystal clear answer, thank you 👍

Mary | Satoshi Club: If they will vote for 100% profit sharing? Or you have some limits? And of course you will also have voting power, right?

Edmond Truong: It will be progressive DAO. We will have some limits but manipulations wouldn’t b possible. We will have voting power

Mary | Satoshi Club: Gotcha! Thank you for your answers! Ready to jump to the next question?

Q4 from Telegram user @ngohuynh

I just read about Formation closed $3.3M strategic sales from early DeFi UniCorns.to build the Smart Yield Farming 2.0 framework. What is the amount you are going to raise? what does Formation Fi see as the biggest barrier preventing in particular from gaining widespread adoption

Edmond Truong: Yes we already closed all presale funding. Our next thing will be our public sale (IDO)

We believe the biggest barrier preventing gaining widespread adoption is the structure of not addressing risk concerns. The traditional markets capital is scared to shift into defi because it doesn’t make sense to them. This is why we are using core risk parity fundamentals which are familiar to them.

Paul Mont | Satoshi Club: Brilliant, thank you for the comprehensive answer 😁

Mary | Satoshi Club: When your IDO will happen?

Edmond Truong: BEGINNING OF JUNE, stay tune . We will announce all the details may 31st

Mary | Satoshi Club: Sure!

Thanks! We will follow your announcments!

Paul Mont | Satoshi Club: Question 5 incoming 🚀

Q5 from Telegram user @AugusS7

I read on your website that you motivate your users to form “sensible and coherent portfolios” But how will FormationFi really help its users to invest in the best cryptocurrencies? Will you provide some content that guides members to make the best investment decisions?

Edmond Truong: It will be algorithms and we will analyze the best strategies to utilize. Our rebasing mechanism will swap out strategies with the highest and most optimal strategy. We are working with a lot hedge fund managers to design specific tools to design the portfolio construction.

However, we will have a lot of research reports and analysis to keep our community informed about the construction and content if they want to understand deeper.

Mary | Satoshi Club: 👏Thank you for your answers! And just one 6th question left from this part🚀

Q6 from Telegram user @quachthingoc

Formation Fi is revolutionizing portfolio construction and evangelize Smart Yield Farming into the world of open finance. Would this be like a smart contract. Which Smart Yield Farming will be supported? What is the difference between update Smart Yield Farming 1.0 and update Smart Yield Farming 2.0?

Edmond Truong: The old method of yield farming was pick and choose every single individual lp token and yield farm individually. Stake, unstake, etc it’s just too much time

Formation: our users will own our index token which will essentially be comprised of let’s say 50-60 different yield farming strategies, with maybe 80-100 different types of Lp tokens, and across multiple chains.

We save our users the complexity which is Defi, those who weren’t able to yield farm can finally do it effectively, in addition there’s a lot of other benefits like giving access to the best strategies, no more needing to jump from different chains (fees get expensive if you’re moving smaller amounts of capital), etc. in addition we will be using risk parity movement and pair countrend assets against each other to amplify returns

Paul Mont | Satoshi Club: Thank you very much for the clear answers @edmondtruong @Gagattzo !🔥

Mary | Satoshi Club: Guys, i am yours😀 i like your strategy!

And live part is almost here 😃

Paul Mont | Satoshi Club: Time to interact with our community members 😁

Mary | Satoshi Club: Ready?

Edmond Truong: Yes.

Part 2 — live questions from the Telegram community

Q1 from telegram username @messilolz

I am aware that there is some kind of fake telegram groups running on so would you please provide all the important social media links including tg for the satoshi club community

Edmond Truong: Yes definitely, we want you guys to be informed about where to find us. There has been countless fake tg communities

Stay tuned for more info and follow us

Twitter: https://mobile.twitter.com/FormationFi

Telegram: https://t.me/FormationFi

Website: https://formation.fi/

Telegram ANN: https://t.me/FormationfinanceAnn

Q2 from telegram username @highpee

Your I D O is planned for June but am already seeing some FORM token on sale on DEX. Am thinking this might be the work of scammer, but I want to confirm from you whether you have any token listed for sale already and also the date for your I D O. Thanks

Edmond Truong: This is definitely a SCAM. We have no tokens for sale at this moment

We haven’t even announced our public sale

Q3 from telegram username @himzzz5

Question deleted

Edmond Truong:

It will be for all types of investors big or small. There will also be a cap system to ensure whales don’t come in and dump on the community.

Q4 from telegram username @Lordxhibit

What are your proposed plans towards increasing the global adoption of sameone and how you intend to attract customers, partners and institutional investors ?

Edmond Truong: For global adoption, we have already started opening up local communities for FORMATION. This way that the local KOLs are able to educate their community easily and effectively. We have expanded our reach to Japan, Korea, Vietnam, Poland, and a few more

Q5 from telegram username @surendra040

Do you have any plan to release your ERC-mainnet ? What are the blockchains you will add for a custom bridge in future?

Edmond Truong: Yes we will be cross chain on:

1. ETH

2. BSC

3. HECO

Q6 from telegram username @haine123

Is It Safe To Take Risk At The Core Of A Formation Fi Asset?

Edmond Truong: Yes this is safe and the smartest way to achieve success.

If you want to be able to change OIL prices you wouldn’t go to OIL itself but you would go to the mines and infrastructure that produces the oil. Hopefully that helps you understand

Q7 from telegram username @Eminet001

RUGPULLs and SCAMS are rampant everywhere, how do we know which to trust

Is you safe have you pass an AUDIT

Krzysztof Gagacki :Our Contacts are being fully audited by industry leaders, reports will be released in upcoming days

Q8 from telegram username @Isabelherrera_fontes

Have you any ambassador program and for content creators ?

Edmond Truong: We have not, but we will definitely have an ambassador and referral program in the near future. We want to get our community extremely involved with the journey and growth of FORMATION.

Q9 from telegram username @Indomiekuy

Formation Fi is an elevate yield farming with Risk Parity which have $FORM token. Can you introduce to us how to use $FORM token for farm in Formation Fi? What are other use of $FORM token in your platform?

Krzysztof Gagacki: Form token has a triple utility: governance, profit share and access to secret darkpool AMMS limited to Form holders only. 40% of all FORM tokens will be distributed through liquidity generation event as well as index’s

Q10 from telegram username @Pratze

Can you explain how to get $FORM token, will you have community event like airdrop or bounty program for your project?

Edmond Truong: We will be conducting IDO, and right after that our token will be available on DEX. In addition, we plan to hit a couple major CEX quickly out the door