BSC.NEWS hosts FinNexus–the most versatile DeFi options platform. All Questions answered by Michele
Lola (AMA HOST): Do I have the Team member of FinNexus here?
Michele: Hi Lola, right here!
Lola (AMA HOST): Perfect! 👍
Good to have you here.
Q1. Can you give us a general introduction of you and FinNexus? Could you tell us your role in the project and briefly introduce FinNexus?
Michele: Sure! As I was mentioning, I am the Chief Marketing Officer of our platform, in charge of content and marketing startegies. Basicallytrying to get everyone to know about us! As for FinNexus itself, we are one of the main options projects in Decentralized Finance.
It is a niche market, but one that we believe will grow faster and faster as adoption spreads.
Furthermore, I should add we are currently experimenting with new derivative products – but more on that later I guess
Lola (AMA HOST): Interesting.
How many years have you been into Crypto?
Michele: I have been in crypto for quite a while, both personally and professionally!
Though probably not as long as other members of our team, who have been in te field since the very beginning basically.
Lola (AMA HOST): Okay. Got that.
Q2. How many team members do you have working with you? And can you also tell us their roles?
Michele: Besides myself, we currently have Sarah Huang taking care of the Chinese market, as well as Wang Jie managing business development. Then there is a team of three engineers and, of course, our co-founders Boris Yang and Ryan Tian.
Overall, I reckon we are a fairly diverse team drawing from a multitude of experiences. Every one of us has different strengths, meaning we can tackle problems form a variety of perspectives. Our CEO Boris, for instance, is a blockchain veteran who co-founded Wanchain before moving to FinNexus. Ryan, on the other hand, has been a banker and CFO for international companies for a decade before entering crypto.
Having such diverse backgrounds has been an advantage, since it provides us with a more organic view of finance and business.
Lola (AMA HOST): Wow! Nice one.
Q3. What are the major challenges of FinNexus and how do you intend to solve them?
Michele: When we launched, we started from a core belief that DeFi will be the future of crypto and that crypto will be an important part of global finance. We then looked at what was there and what was not in the field – and found out that options, such a popular instrument in legacy finance, were nearly absent!
Before going on however, it might be best to introduce options contracts to BSC News public, since some maybe new to them
Options contracts essentially allow participants to buy or sell an asset at a predetermined price.
For example, let us imagine that a fruit store wants to buy 500 kg of apples from an orchard owner, but the apples are not ripe until August. The fruit store worries about the rise of the price, affected by drought this year. Therefore, it reaches an agreement with the orchard owner, that it may purchase the apples at the price of $4/kg in August. But it doesn’t have to do so if there is some cheaper price on the market. In order to have this right, the fruit store pays the orchard owner $100 as compensation.
If you swap apples for BTC, ETH or any other crypto assets, and put the contract on-chain, it will become “decentralized options” on crypto-currencies.
Lola (AMA HOST): Hmmm. This is interesting. I must say.
Michele: Our goal at FinNexus was to offer users the possibility to trade these instruments based on crypto assets in a fully decentralized and transparent way
However, although at the moment options are our main focus, I’d like to stress that they are only meant to be only the first of a series of derivative contracts we are working on.
Over the long run, FinNexus will become a suite of protocols providing different products across various blockchains.
At least that’s the goal!
Q4. Can you tell us about your mining mechanism? How it works? And how earning goes?
Michele: The mining mechanism is one of the core services we offer to our users, along with options trading itself. Although the mechanism varies slightly between Ethereum, Wanchain and BSC, the fundamental idea behind it remains the same: we encourage participants to mine FNX and stablecoins at the same time.
This allows users to reap much higher rewards. If the proportion of the two tokens is correct and the staking period id long enough, we provide a multiplier up to 6x on BSC.
Lola | CM | AMA HOST |: This is Good news 😊
Michele: The reason why provide higher returns for users who choose to mine tokens together is not simply to provide a boost to our community, but also to avoid farm-and-dump scenarios that could be harmful to the FNX ecosystem in the long run. With this model, we aim to ensure a stable environment for the long-term growth of our project and guarantee the interest of our userbase.
Q5. How does investment works? And can you tell the Community about trading in FinNexus?
Michele: The most immediate way to enter the FinNexus ecosystem is by mining and staking. But we strongly focus on trading as a core product – derivatives trading is our use-case and we firmly believe that for a platform to thrive in the long term it is essential to provide real solutions to real financial problems.
FinNexus, however, does not trade options in a standard way, through an order book. Our FinNexus Protocol for Options (FPO) relies on a system that does exist in traditional finance, that relies on “pooled liquidity” – participants deposit their assets and can get exposure to a variety of underliers, with premiums shared and risks spread out.
The FPO makes it easy to buy and exercise BTC, ETH, LINK, SNX, and MKR options in a secure and decentralized way. It applies a Multi-Asset Single Pool (MASP) methodology for decentralized peer-to-pool options platforms, which enables anyone anywhere to leverage or hedge their positions in a variety of cryptoassets.
Q6. Can you tell the Community about your Partnerships with Immunefi? Any Special or Unique purpose?
Michele: Like all Decentralized finance projects, one of our fundamental goals is to protect our users’ funds and ensure that safety is maintained at all times. Whereas our protocol has been fully tested by our experienced engineering team and audited by Peckshield, we thought a bug bounty would add an extra layer of security. That’s where Immunefi came into play.
Users who spot a bug will be rewarded for it according to Immunefi’s own classification of vulnerabilities. The higher the severity of a risk, the more the bounty hunter will be rewarded, as shown below:
Smart Contracts and Blockchain
Critical USD 50 000–100 000
High USD 10 000–20 000
Medium USD 3 000–5 000
Low USD 700–1 000
Please be aware that we
Q7. What Future Development and Plannings do you have?
Lola (AMA HOST): Good. We would love to hear that.
Michele: In the near future, we are planning to launch a completely new product -Decentralized Leveraged Tokens. This very peculiar type of derivatives was originally created by FTX in centralized crypto finance, but this will be the first time they appear in DeFi as far as we know.
They are basically self-managing leveraged derivatives that rely on a rebalancing mechanism that maintains the leverage constant – in our case, probably at 3x – by automatically borrowing liquidity.
Their main advantage lies in the possibility of getting leveraged exposure to assets without having to manage all the details that come with, let’s say, futures or swaps. In other words, they are very intuitive and easy to use.
It’s also worth noting that somehow they will be the opposite – and therefore complementary to – our options offer. Whereas options are a very powerful but usually complex instrument, leveraged tokens will be fairly simple to use for any trader. You just have to buy them and they will do everything on their own.
We are also testing a layer two solution for Ethereum and are studying the possibility of introducing pairs based on traditional financial assets – sa, oil, gold, currencies and stocks. This would be particularly interesting to offset the strong correlation existing among crypto assets and allowing investors to diversify risks better.
Q8. Do you have partnerships with other Projects or Community? Can you tell us how it helps FinNexus?
Michele: Besides Immunefi, we are currently working with Arbitrum on a layer two solution and have a partnership with Frax Finance, with whom we have launched the very first algorithmic stablecoin pool to power an options trading platform. We have just integrated a new wallet – ezDeFi – and of course we are working with our long-standing partners at Wanchain
Q9. Share with us all the links about FinNexus, so that readers can find out more and also follow the development of the project.
Michele: I’d love to! Anyone who’s interested can find out more at:
Please feel free to get in touch, we have a team of dedicated community managers who are always there to support users.
Q10. Lastly our favourite question, do you have any alpha or juicy news for us in BSC News today?
Michele: Everybody loves alpha I guess!
In the long term, watch out for the decentralized leveraged token. It will be live on BSC, too, and we think it will provided great value to the Binance community!
In the short term, I’d be happy to introduce the FinNexus Options Trading Competition, the very first such event to happen cross-chain in the DeFi space. The event is currently ongoing until the end of the month! There are 60,000 FNX in prizes, distributed according to the trading performance of each participant.
May the best trader win!
Lola | CM | AMA HOST |: Great. Can’t wait for the competition.
Thank you for your Time @Michele It was a nice AMA.
Michele: Thank you for having me :-)D
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.