On September 2021, our community had a chance to Tom – Project Lead Of Waterfall to join in an AMA to give fruitful information about the key features and roadmap of Waterfall – is one of the first platforms to deliver original tranching methodology to defi. Starting with BSC and extending to other chains later.
🗓Time: 13:00 PM UTC / 20:00 PM UTC +7 Monday, September 27th, 2021
🎁Reward: 100 USDT
Question for Part 1- Project overview
Question 1. Firstly, can you give me brief introduction about your management team and Waterfall ?
Hello everyone – Tom here. just a quick introduction, I am the Project Lead of Waterfall DeFi, the risk tranching protocol that offers structured risk products to the DeFi space…. A little bit about myself, I started off my crypto journey back in 2017, my buddy was at MIT and was using the lab to mine ETH. so I kinda joined on his bandwagon, and have been on and off since then.
Gradually during last year’s DeFi summer I decided to put more attention into the space, looking into yield farms and applications of derivatives, and finally earlier this year decided to go all in, and take on the Project Lead role for Waterfall DeFi.
Before going full time in crypto I was working in management consulting, operations and strategic planning, having worked at McKinsey & Co, before moving to a food delivery tech unicorn Deliveroo. As the Project Lead in Waterfall DeFi I am basically in charged of handling everything and making sure Waterfall gets to become one of the project that stands out across the space and offers what the DeFi community needs especially in terms of risk management options in yield farming.
Our project’s founder – 0xWaterfall, he has over 10+ years of experience in Tier 1 Investment Bank specializing in Cross Asset Structured Products. 4+ years in crypto trading.
He realized as DeFi getting more and more matured, users would demand for more complex and advanced structured products to compliment their investment strategy, and risk tranching product is something that could fit the community needs. However, there is no true risk tranching products in the space right now, and we believe by bringing the team’s years of experience in TradFi and DeFi, we are able to bring this concept to the community and work with them to figure out what would work for DeFi
In true DeFi fashion, we are a truly global team, with teammates in Hong Kong, Ukraine (developer), India (financial engineering / product) and the US (marketing)
Question 2: Please share a few major milestones of Waterfall during its development process?
So Waterfall DeFi is a yield aggregator protocol that aims to bring true risk tranching to the DeFi landscape. We plan to develop portfolio that include different farms but instead of just offering a yield aggregation product, we actually would slice the portfolio into different “tranches” – essentially each tranche represents a risk/reward combo that would allow the users to select
The senior tranche would receive a reduced yield return, in exchange for first lost protection. Junior tranche would receive a much higher, leveraged yield return, but their capital is used to cover any losses suffer from the portfolio.
The first milestone for us is to decide which blockchain to focus on, and we decided to go with BSC, due to its negligible gas fee and presence of high TVL farms with sustainable return.
Then second milestone would be launching our first product – which would include 3 BUSD farms. Going forward, once we are more matured and the community is more educated to the product, we will be pushing out not just safe, sustainable return package with major farms and high TVL, but also risky leveraged products and new farms with high APY
Goal is to create different type of investment options and risk factor that users can select based on their preference!
And finally, and upcoming milestone is that we are working hard to confirm our public sale, which we will have more information in the coming days – please stay tuned to our channel for updates!
Question 3: Could you share with us your plan to expand locally as well as globally?
Got it, let me answer the local question first – we really value the Vietnamese community and believe this region has amazing potential which we intend to engage actively. You can check out our Vietnamese official TG channel: https://t.me/waterfalldefivn – and can ping us with your questions / ideas
For global – we have a range of partners all over the world, and are working with them to curate different language community. Overall Crypto is one of the few truly global community, where even though we speak different languages, our belief and passion are quite similar, so it is about how to get our messages through to different language community 🙂
In addition – to expand our footprint in the industry, another way that we must go is to expand our product to be on different blockchains, and expanding into other chains (Polygon, Solana, ETH) is very much on our plan, which we plan to push forward once we planted our feet right after the launch
Part 2: 5 questions pre-collected by Twitter
Question 1: @wayne_marketing
Could you explain to us in simple terms what is the purpose of “Waterfall DeFi’ ? What is the strongest advantage that you think will make this team lead the market? How will you attract investors and build the trust and win the hearts of millions of people in your project?
Like I said earlier, Waterfall DeFi is a yield aggregator protocol that aims to bring true risk tranching to the DeFi landscape.
In the traditional market, a significant portion of the financial products is fixed rather than variable. On the other hand, DeFi lending protocols are currently 100% under the variable rate regime, which lacks the environment for DeFi to cross over with the traditional market. And bring the money into this open, permissionless financial world on the blockchain.
Under the variable rate regime, the introduction of risk-related products to the DeFi space will bring further development in the already growing sector, and structured products are the next big thing to emerge on the DeFi horizon.
Structured products (options, futures, etc.) allow users to better control their investment portfolio, finesse their risk tolerance, and min./max. their trading strategy to further leverage their positions. Among structured products, the concept of risk tranching is particularly well positioned in the current DeFi market — relatively simple to grasp, it introduces a fixed income product that provides attractive yield options to investors with different risk appetites. In the DeFi space where everyone is seeking a good yield — especially if they’re in a bear market — attractive rates offered by risk tranched products is a strong option for anyone looking to delve deeper into the DeFi community.
There are a few similar concepted protocols in the space now, and Waterfall is a bit different from them due to the following features:
Our portfolio strategies package multiple DeFi assets and yield farms to ensure risk and return diversification
In the future, we aim to include more diversified assets to make sure an abundance of options for the community.
Clear tranche differentiation
A TVL limit is set initially for each tranches in the initial launch to ensure clear tranche differentiation. Going forward we will lift the limit but will introduce dynamic reward to incentive optimal user behavior.
Three tranche approach
We will launch with a three-tranche product, expanding the optionalities for the community.
Fixed income product
Will introduce a fixed income product by locking up the user deposit for a fixed period of time (seven days) during the deployment period
All our team members have strong background in blockchain tech / traditional finance / management consulting / crypto OG – so we believe our team’s experience, as well as the focus to bring an innovative product that sets us apart from others.
Our dedication to community and goal to iterate this protocol with the community would create something sustainable to build upon
Question 2: @luckyjem02
A strong community not only brings interesting ideas to the project but also attracts larger partners. So how #Waterfall planning to build its community? And is there a plan to recruit people with Blockchain experience to the #Waterfall team?
Yes – as I stated earlier – we all know that community is what is going to make or break a protocol, and we understand that. One of the key motivations for the team is to introduce a true risk tranching concept to the community, which would require we work together to listen and understand what they want and what they need.
We have experience in creating an initial concept, but we don’t know if that’s what the community would welcome – so we will be working with the community, and iterate on the process to build out the better product
Users can engage us either through the typical community channels like TG / Discord / Twitter – where our team and admins are available to engage and discuss ideas
Meanwhile, once the product is live, users can stake their heard earned WTF token ($WTF) to get governance token veWTF, and these tokens would have voting rights on a range of issues, including the type of next products we should include in the tranching portfolio, which chain should we expand next
Ultimately users with our governance token would be able to develop their own tranched product, and as long as those are voted positively by the community, they will be listed and earn the originator some structuring fee as well!
Indeed the community is what we have to keep this project going
Question 3: @Rafiya675
Typically, investors buy tokens that are likely to increase in price in the future. I saw that, total supply of the token is huge.
So, do you have any plan for burning tokens in the future to reduce the supply of the token and increase its investment attractiveness?
Based on our tokenomics – ~60% of the tokens (Community + Treasury) are devoted to the community, so we do intend to build this protocol to be majority owned by community
Meanwhile – I mentioned earlier that for users who staked our WTF tokens, they will earn the governance token veWTF. Apart from the typical governance use, a portion of the fee collected from the platform is also reserved to be used to reward users with the governance token.
We are trying to bring additional utility of our token to the community
We also envision the future versions of the Waterfall DeFi platform to be a completely decentralised risk-tranching platform, which brings me back to the point earlier about user generated products. This means composability for users to engage in creating their own strategies and they will be able to collect structuring fees as their tranched products are created and being used.
Token burn surely is a good approach to reward our token holders as they are a deflationary mechanism to lower the circulating supply…we will certainly take this into consideration and our future community may also take this suggestion into our governance model for DAO voting.
Question 4: @PKragak
Many people want to learn about your project but they have problem with English, so do you plan to spread awareness about your project in different countries where English is not widely known? Do you have a marketing strategy to develop different communities?
We are working different partners in different regions to expand our reach to the community, for example AMA today with the Vietnamese community is one part of our effort
Going forward we will be expanding our language options of our protocol to better cater to the need of our community
Question 5: @ventures_gem
We can see uncountable amount of Hacking & Leaking News today in this Cryptocurrency Space. How you ensure that the assets of “Waterfall DeFi’ Users are Safe and Secure?
Yes we are seeing a lot of hacking recently and this is something thats on everyone’s mind. We took security seriously and are currently working with Slowmist to audit our smart contract code base – they already gave us some minor feedback (thank god!) where our dev is working on updating the codes.
We will soon be announcing the Audit report. We will continue to work with other auditors and conduct peer review to make sure our code is safe and sound for the community
In terms of the safety of the assets in our portfolio, we usually would evaluate the risk involved in different crypto assets based on a couple of factors, including: the reputation of the team/protocol, amount of TVL committed by the community, the sustainability of the yield return, etc.
That’s why we introduce 3 BUSD stablecoin farms that all have high TVL and sustainable yield, which is the most secured / safe approach to engage with our first ever product launch. We will also limit the TVL for our first product to ensure we can plan for a smooth launch
Part 3: Guests will choose 5 best live questions from members to answer directly in the group
I have seen that you have done many AMAs, my question is, what do you expect to get from so many AMAs and what are your goals with the community? Do you consider the community to be a fundamental role in the project?
This is a great question! Community is the most important asset of our protocol, also the most important part of the whole DeFi community in fact, we value our community very much (although our community is small right now)
So as mentioned we would love to have the project’s ownership to become more and more decentralized eventually as in our tokenomics we have 60% of tokens are allocated to our users via staking rewards, public sale and treasury
Another thing is we are currently planning on a governance model to enable protocol stakeholders, that includes users, token holders, liquidity providers to participate in our protocol treasury DAO and operations DAO to make our project goes on the community driven path…
Further more, while currently our first product BUSD Falls is structured by us, we plan to enable our users to structure their own tranched products in the future, and our community’s creation will be entitled to the fees earned from users, so an economy within the protocol itself!
Southeast Asia is a very vibrant market and there are many new platforms under development. So what do you think about Southeast Asia and do you have plans to grow there?
Indeed, we highly value the Southeast Asia market, and a part of the core team is also based in South East Asia in fact! For me I am based in Hong Kong currently. A lot of projects recently has been rising hard and strong in the SEA market
As we can see the rise of Coin98, and community’s favourite Axie Infinity, are all breed and nurtured in Vietnam especially!!🇻🇳🇻🇳
Currently we have various partnerships with professionals in the crypto space across the SEA region, and BC Blue Sky Ventures is one of our friends!! We hope to share our work to you guys as much as possible and we hope our marketing and partnership efforts will enable our SEA community to enjoy our risk tranching products, no matter in leveraging your yield, or having the choice of a fixed rate stable and predictable yield return
https://t.me/waterfalldefivn our Vietnam community is here
Non Fungible Tokens(NFT) is getting more popular now a days. It looks NFT has bright future. So do you have any plan to include NFT to your project?
Great question, surely we have been looking at a lot of industry trends these days
The rise of NFT collectibles and the Play-to-earn model has been greatly expanding the horizon of the blockchain space
We believe that NFTs will introduce a lot of new users to the crypto world, that their journey in Web3.0 won’t just stop at buying JPEGs, but also taking part in various smart contract dAPPs, including DeFi
Do you guys like our Waterfall Waifu? Here’s an alpha leak: we have actually got some official Waterfall Waifu NFT minted! So stay tuned in our channels and we might do a small giveaway for our beloved protocol users and supporters👍👍
How to stay cool in the current situation on the cryptocurrency market?
So we understand that the cryptocurrency market is quite volatile, and regulations/unexpected news might move the market quite a lot… I have seen witnessing all the pumps and dumps happening since 2017 hahahah
But we also focus on working our project and delivering what the DeFi space and the community needs — An easy, efficient and effective way to manage your risk and reward
Do you want to take on extra risk and earn extra rewards that you cannot earn in any other yield farms? Come to Waterfall DeFi;
Do you want to have a stable return of yield, that’s predictable unlike what we have spoke on — the very volatile crypto market?
Come to Waterfall DeFi
That’s it, it’s that simple, just come to our protocol after our mainnet launch soon and try out our risk tranching products, that enable you to choose the magnitude of risk and reward you prefer to farm
Are you afraid some day there will be another project with more innovative technology can replace your project ?
We don’t really mind and afraid of that! DeFi is always about innovation and we as one of the biggest supporters of decentralization like you guys do, will always be happy to see innovative structured products appears in the space
To me and to the team, DeFi is really about composability and building on top of each other, we as each protocol are like legos and stacking together we become a Millenium Falcon!
So…since MakerDAO’s beginning of CDPs and the single collateral DAI stablecoin we have been seeing a lot of new innovative products appearing in the space
No matter on stablecoins, structured products, perpectuals, all that are shining like the stars in the galaxy
So… we will also keep innovating too! Risk tranching products are a big topic in the TradFi space
and we are sure we will implement more beyond just tranching the risk in stablecoin yield farms
Could it be LP risk tranching? Could it be Layer-1 staking risk tranching? The scope is beyond galaxy and the limit is our imagination…. So be sure to join our community and join the discussions and let’s build the DeFi space together
Onward and upward!!
For all of the questions that have not been answered yet, guys feel free to search for more information or ask directly to them on the links provided below:
Telegram Group: https://t.me/waterfalldefi
Telegram Announcement Channel: https://t.me/waterfalldefi_annoucements