AMA Recap: Avalanche Vietnam x Struct Finance
On Friday, July 21, 2023, at 7:00 PM (UTC+7), we had an AMA session with three members from Struct Finance: Ersin — Co-Founder, Louis — Co-Founder, and Miguel — Co-Founder.
Here is a summary of the AMA:
1. Before we dive into the questions, please introduce briefly about yourself, your team and some key features of Structured Finance.
Hi my name is Ersin, and i am the cofounder alongside Louis and Miguel, my other two cofounders. Struct Finance is a DeFi platform that specializes in structured finance, offering a wide range of structured financial products tailored to the needs of both retail and institutional investors. Our tranching mechanism enables diversified investment opportunities through interest rate vaults, providing users with access to various markets.
Recognizing the demand for customizable investment tools in DeFi, we are launching with a suite of predefined products. In the future, our Smart Contract Factory will empower users to design their own structured financial products, promoting accessibility and democratization within the industry.
Our vision is to foster effective and efficient markets by distributing risk, enhancing capital efficiency, expanding investment options, and bridging the gap between the digital and real-world economies. With the ability to create structured financial products from both on-chain and off-chain assets, we align with the future direction of Avalanche and strive to bring new possibilities to the DeFi landscape. We will cover more about the team in the following questions.
2. Next, could you please update some latest news or big events of Struct Finance in the coming time?
We just launched one month ago and the total value locked (TVL) on the platform is approaching t$1 million and is expected to reach this small milestone very soon. Our community of followers is also growing steadily, with 5.3k followers on Twitter, 1.1k on Discord, 1.2k on LinkedIn, and 183 on Medium.
We are proud to have successfully launched two products, namely the USDC-USDC vault and the BTCB-USDC vault. The recently introduced BTCB-USDC vault offers a fixed yield of 10% APR for BTCB and an estimated variable APR of 50% for USDC, providing our users with exciting investment opportunities.
Furthermore, we are continuously striving to improve our platform and user experience. We have integrated with Featurebase to actively gather community feedback, ensuring that we cater to the needs and preferences of our users effectively.
Additionally, we are actively engaging with various local communities through AMAs (Ask Me Anything) sessions, promoting awareness and education about our products in different regions. — Lastly, we are excited to announce that we are in the process of integrating with another top-tier bluechip protocol. This collaboration will further strengthen our platform and expand the range of possibilities and opportunities for our users.
3. How many team members do StructFinance have? Do they have enough experience in the blockchain field? Do they have any experience on working in crypto and non-crypto project?
Our team consists of 8 highly skilled individuals located across 5 continents. We believe in the power of diversity and how it enriches our project. Working together, we have cultivated a strong sense of camaraderie and synergy, which contributes to a positive and enjoyable work environment.Each team member is a specialist in their respective field, bringing valuable expertise to the table. Our backgrounds cover a wide range of areas, including blockchain, venture building, business management, software development, architecture, and more. This diversity enables us to draw insights from various industries and apply them creatively to our project.
In the blockchain field, we have a wealth of experience, allowing us to navigate the intricacies of DeFi and structured financial products with confidence. Moreover, our founders have extensive entrepreneurial backgrounds, and some team members have previously worked for reputable companies like France Telecom, Rocket Internet, Deutsche Bank, and Thomson Reuters. These experiences have honed our abilities to tackle challenges and deliver high-quality solutions.
Our team is passionate about pushing the boundaries of DeFi and creating innovative financial products. We value continuous learning and cross-pollination of ideas, enabling us to stay at the forefront of the rapidly evolving blockchain industry. With a firm belief in the potential of Avalanche and a commitment to shaping the future of DeFi, we are excited about the opportunities ahead and the impact we can make in the world of structured finance.
4. What is StructFinance strategy for building a strong community? Do you agree that the power of community will lead your project to develop globally? What services do you provide to the community?
At StructFinance, building a strong and engaged community is one of our top priorities. We recognize that the power of community is instrumental in the global development of our project. To achieve this, we have adopted a multi-faceted approach:
1.Active Presence: We are actively present on popular social media platforms like Twitter and Discord, where we interact with our community members regularly. By engaging in discussions, answering questions, and sharing updates, we foster a sense of connection and transparency.
2.AMAs and Events: We actively participate in Ask-Me-Anything (AMA) sessions, especially within the Avalanche Community channels. These sessions provide us with an opportunity to directly connect with our audience, share insights about our project, and address their queries.
3. Multilingual Approach: To reach a broader audience, we have translated our litepaper into 13 languages. This ensures that people from diverse backgrounds can understand our project and its potential benefits, creating a more inclusive community.
4.Global Outlook: We are adopting a global approach and are not limiting ourselves to specific countries or only English-speaking communities. We aim to nurture local communities by adding local community managers and providing them with the resources needed to grow and thrive.
5.Listening and Feedback: We believe in actively listening to our community’s feedback and suggestions. Our feedback process ensures that we take into account their opinions and ideas, ultimately leading to continuous improvement.
6.Inclusivity and Openness: We value every community member and strive to be accessible to everyone. Our open and approachable demeanor encourages participation, collaboration, and a sense of belonging within the community.
7.Focus on Specific Communities: While we are dedicated to nurturing our overall community, we recognize the importance of focusing on specific communities, such as the Vietnam community, to cater to their unique needs and preferences.
By embracing the power of community, we aim to create a global network of passionate individuals who are aligned with our vision. Together, we can drive the adoption of structured financial products in the DeFi space and contribute to the growth and success of StructFinance.
5. What is the target market of StructFinance , can you tell us if you have any plans to drive adoption globally or if the project is only for certain countries. How will the largest number of users be reached?
At StructFinance, our target market includes both institutional and retail users within the DeFi space. One of our primary objectives is to democratize access to financial instruments that were traditionally limited to privileged parties, such as institutions and accredited individuals. By providing structured financial products on the blockchain, we aim to empower a wide range of users to participate in DeFi and benefit from the potential yields and risk-adjusted returns.
Our approach to driving adoption globally is twofold. Firstly, we are focused on education and awareness-building. By translating our litepaper into multiple languages and actively engaging in AMA sessions and community interactions, we aim to educate users from various countries and communities about the benefits and potential of structured financial products.
Secondly, we prioritize the creation of value-added products. By developing innovative and tailored financial solutions, we aim to attract users who see the value in utilizing our platform for their investment needs. The flywheel effect will come into play, where an increasing number of users and Total Value Locked (TVL) will attract more users, further increasing adoption and expanding our community.
While we have a global approach to adoption, we also remain considerate of regulatory aspects. We have measures in place to mitigate regulatory risks and ensure compliance with relevant laws in different jurisdictions.
Overall, our focus on education, valuable product offerings, and a global approach to adoption will be instrumental in reaching the largest number of users and establishing StructFinance as a leading DeFi protocol in the market.
6. Could you explain how the BTCB-USDC/USDC-USDC Vault work and how it benefits users in terms of potential returns and risk management compared to other investment options?
BTCB-USDC Vaults by Struct Finance offer an innovative investment opportunity with predictable returns on Bitcoin. Leveraging Avalanche’s BTC.B and USDC, these vaults aim to generate higher yields compared to traditional Bitcoin investments. The dual-tranche system of BTCB-USDC Vaults ensures a balanced distribution of yield. Initially, the senior tranche (BTC.B) receives the yield, providing a steady and predictable return. Any additional yield beyond the commitments for the senior tranche flows into the junior tranche (USDC), offering the potential for higher returns.
The senior tranche is hedged by BTC.B being converted into GMX’s GLP token, which has a lower delta. This sets up a short Bitcoin position against GLP, contributing to risk mitigation. Meanwhile, the USDC in the variable tranche is converted into GLP, resulting in a positive delta, offering potential upside during favorable market conditions.
Yield generation within the BTCB-USDC Vaults is driven by the GLP token, which accrues real yield from sources such as swap fees, perpetual interest, and liquidations. Stakers of the GLP token benefit from a substantial 70% share of these fees, making it a sustainable and rewarding investment.
The dual-tranche structure accommodates different risk preferences. The senior tranche guarantees the initial capital and offers a steady return, making it suitable for conservative investors. On the other hand, the junior tranche carries higher market risk but has the potential to capture substantial profits during favorable market conditions.
Key Features:
- Flexible 1-month, 2-month, and 3-month terms
- Senior tranche (BTC.B) for conservative investors
- Junior tranche (USDC) for higher risk tolerance
- GLP token for real yield generation
- Tailored risk and return profiles
7. Can you elaborate on the decision-making process for Liquidity Providers (LPs) when choosing between fixed yield and variable yield? How does Struct Finance enable LPs to make informed decisions based on market conditions?
At Struct Finance, we provide users with the flexibility to profit during periods of both low and high market volatility through our structured financial products and tranching mechanism. Here’s how we ensure that users can take advantage of market conditions:
During periods of low volatility, users can opt for our fixed returns tranche. This option offers a prioritized cash flow, reduced risks, and a slightly lower interest rate that compensates for the security of the investment. It allows users to utilize their funds efficiently without exposing them to volatility-related risks. This strategy is particularly useful after a bear market bottom when markets may not be immediately bouncing back.
On the other hand, when market conditions shift towards heightened volatility and increased trading activity, users can consider switching to our variable returns tranche. This option allows users to capture a larger portion of the yields driven by increased trading fees and liquidations. The variable returns tranche offers the potential for higher returns during periods of high volatility. However, users should be aware of the potential downside during falling markets and carefully assess the balance between risk and return.
To ensure the profitability of our users during both low and high market volatility, we constantly monitor market conditions and provide the necessary tools and options. By leveraging our tranching mechanism and the GLP index, users can choose the most suitable tranche based on their risk tolerance and market expectations. Our goal is to empower users to make informed investment decisions and capitalize on market opportunities.
8. Trading pairs on Struct Finance are quite few, do the team plan to list more trading pairs others and what is the next roadmap of project?
At Struct Finance, we have exciting plans for the future as we continue to expand and enhance our product offerings. We are also considerate which products we release that are taking less market risk. While we are considering the introduction of an AVAX trading pair product, it is important to note that this is still under evaluation and requires thorough backtesting. We are exploring various possibilities of how AVAX can play a role within our platform.
In terms of partnerships, we are actively exploring integrations with other Avalanche-based protocols. Our next collaboration is with Trader Joe’s Autopools, which offer managed concentrated liquidity and will give us more design space. This integration could bring additional value and opportunities to our users and we will be the first ones to integrate. This will happen within the next weeks.
9. How does Struct Finance ensure platform security? What measures and protocols are in place to prevent hacks and vulnerabilities? Also, can you share details about independent audits conducted on the protocol, and how they enhance user trust in Struct Finance?
At Struct Finance, we prioritize the security and reliability of our platform to ensure a safe environment for our users. We have implemented multiple measures to achieve this goal.
Firstly, we have conducted comprehensive smart contract security audits with renowned firms such as Dedaub and Zokyo. These audits thoroughly analyze our codebase, identify potential vulnerabilities, and provide recommendations for improvement. The collaboration with independent security auditors helps us enhance the security of our platform and instill trust in our users.
Additionally, we have fostered a security-first culture within our team. Our developers and engineers follow best practices and industry standards to write secure code and regularly undergo security training to stay updated with the latest threats and vulnerabilities. We have implemented rigorous testing procedures to identify and address any security issues before they can impact the platform.
Furthermore, we are continuously working to strengthen our security measures. We are in discussions with a strategic long-term security partner who will provide expertise in both on-chain and off-chain security. This partnership will expand the scope of our security protocols, ensuring a comprehensive approach to platform security.
Overall, our commitment to security is unwavering. Through audits, a security-focused culture, and strategic partnerships, we strive to maintain the highest level of security and reliability on our platform. We understand the importance of protecting our users’ assets and information, and we will continue to invest in the necessary resources to ensure a secure environment for all.
10. How has Struct Finance prioritized user experience by creating an intuitive and user-friendly platform? Could you explain the mechanisms in place to actively address user feedback and ensure continuous improvement of the platform’s usability?
At Struct Finance, we prioritize user experience by continuously striving to create an intuitive and user-friendly platform. We understand the importance of listening to our users and actively addressing their feedback to ensure continuous improvement of the platform’s usability. To actively engage with our users and gather their valuable input, we have integrated with Featurebase, a platform dedicated to enhancing user experience. Through Featurebase, users can easily provide their feedback, submit feature requests, and report any bugs they encounter. Access to Featurebase is available through our DApp under the ‘More’ section on the top right side, or directly through our Featurebase page at https://structfinance.featurebase.app
We believe that every voice counts, and by actively involving our users through Featurebase, we can collectively shape the future of our platform. Your feedback is instrumental in driving our development process, and we are determined to create a platform that meets your needs and exceeds your expectations. Further our social media channels such as twitter and discord are also channels where we capture user feedback and we take user feedback very serious.
11. How does tranching work in Struct Finance, and how does it help group DeFi products by risk level?
Tranching involves the deployment of funds into a yield-bearing position followed by prioritization of how cashflows are delivered at maturity. Doing so allows us to provide conservative investors with stable and predictable returns, and replicate leveraged exposure for risk-on investors.
12. Could you plz explain why you need tranching? What is tranching? And why Struct Finance need it? Why do you choose BTC.B? WHy not WETH? In the future, do u plan to build vault for ETH ?
Previous reply answers this as well!
Will add that we definitely plan to roll out support for more tokens! And more integrations with underlying protocols!
13. As a newbie, are there any instructional videos or resources available to help me approach and experience Struct Finance more easily?
Yes, sure. Let me share below some references. Join our Discord community in Twitter and Discord. You will find a great family there!
Litepaper
https://docsend.com/view/3a239uwepsp9c2pb
Beta User Guide
https://struct-finance.gitbook.io/open-beta-user-guide
Video Walkthrough
https://youtu.be/lh3Dev29w1k
Video Review on Struct
https://youtu.be/22P8j89ddOY
And other links
https://twitter.com/Flowslikeosmo/status/1679128556104740868
14. Despite its rapid growth, Struct Finance currently ranks as the 38th largest Avalanche-based DeFi platform by TVL. What plans does Struct Finance have to further scale and compete with the leading platforms like Benqi and Aave in terms of TVL?
Thank you for the question
We do currently rank 34th in the Avalanche Ecosystem — and this within 4–5 weeks after launch — we have a controlled launch — we did not publish all products and open up the tranches — we do have limits in there — we are actively engaging institutions that will come in after we have established our position within avalanche — we do have a solid product pipeline and also integrations coming up with Trader Joe Autopools which will give us more design space and we do get a lot incoming requests to build together within the ecosystem — many protocols are reaching out to build on top of us
15. How is the gas fee when I use this Defi platform?
Our code base is optimized for gas cost. Running transactions such as deposits, withdraw, is comparable to other platforms on Avax
thank you very much for the question
16. What are the plans for building and expanding the Vietnamese-speaking community within Struct Finance? How will you engage with the community and provide support in their language?
We love Vietnam — we are actually also based in South East Asia — and travel a lot in the region — unfortunately we had not the chance to come to GM Vietnam but we will make every effort to nurture and grow our Vietnamese community — Vietnam is one of the most promising countries with a lot of talent and interest in the space — we do currently look how we can strengthen the team and engage with the vietnamese community — more on this soon — we did also translate our litepaper in vietnamese— reach out to us if there is interest to participate in the vietnamese community building !!!
17. Can you elaborate on the target audience of Struct Finance? How do you attract both DeFi users and institutional investors to the platform?
thank you very much for the question
We are a DeFi protocol and by ideology we do not discriminate either target markets — and we are for decentralization, democratization of finance and permissionless access
We do have 2 approaches — the marketing one for retail and the business development with crypto native institutions — both are different — we do want that the retail is also educated in terms of the protocol and the risks — this is essential -so we do try to put a lot of emphasise on content that educates — we allow and want both markets to be able to use our products
18. Are there any upcoming partnerships or collaborations that Struct Finance is working on to further enhance its offerings and expand its reach within the Avalanche ecosystem?
We are currently in the midst of integrating with Traderjoe. Also exploring opportunities in the realm of RWA
Yes, there are some more partnerships coming up. We are planning to integrate with TJ autopools and provide additional vaults for our users. Stay tuned for that announcement!
19. Congratulations on the impressive growth of Struct Finance! Can you share some insights into the factors that contributed to the platform’s 100% gains in TVL within a single week after its launch?
First of all — we do have GMX Avalanche Incentives — and also the market which went up helped the yields to go up on the variable side — we do invest in GLP and if the price of GLP goes up the yields also go up — in the case of USDC USDC — every product behaves a bit different — it is a bit complex but we try to bring out products that are less risky or delta hedged
20. What is the long-term vision for the platform? Are there any specific goals or milestones that you aim to achieve in the coming months or years?
yes — we do have several goals in the coming months, finalizing integration with Trader Joe Autopools, bring out new products, achieve more TVL and increase in number of users and followers — we are building a brand and an ecosystem and want to make Avalanche the place to be !!!
21. What made the struct finance team choose avax as the first blockchain to develop defi? After the launch, what does the avax system bring to the future development of struct finance? What will it be like to develop defi with other chains on struct finance?
We share a common vision with Avalanche — we both believe that real world assets will be part of DeFi’s future. As assets such as debt instruments come on, we believe that structured finance will be crucial to proper risk distribution and liquid markets, both of which will help to create a more effective and efficient defi ecosystem.
