At 7 pm on March 1, 2021, BlockArk Operations Director Egg Fried Rice had a dialogue with FinNexus founder & CEO Yang Tao. In the Uniswap Chinese community, they conducted an AMA event themed "How the FinNexus decentralized options platform solves the problem of insufficient liquidity in the options market". This live broadcast event is supported by BlockArk, ChainNews, Odaily, Block Beats, and Encryption Media. The live sharing content is organized as follows:
Egg Fried Rice: Welcome to today's AMA held by BlockArk in the Uniswap Chinese community. I am today's host Egg Fried Rice, BlockArk's Director of Operations. At the same time, thank you, Lianwen, Block Rhythm, and Encryption Pavilion for their support for this event.
BlockArk is an investment bank and marketing agency in the encrypted asset industry. It manages ArkStream Capital, a primary and secondary fund focused on cryptocurrency. BlockArk integrates investment, branding, market growth, and strategic consulting, and is committed to promoting the growth of Web3.0 unicorns.
BlockArk is an investment bank and marketing agency in the encrypted asset industry. It manages ArkStream Capital, a primary and secondary fund focused on cryptocurrency. BlockArk integrates investment, branding, market growth, and strategic consulting, and is committed to promoting the growth of Web3.0 unicorns.
The theme of today's AMA is "How does the FinNexus decentralized options platform solve the problem of insufficient liquidity in the options market", and the guest is Yang Tao, the founder and CEO of FNX.
Welcome to today's guests, please introduce yourself first.
Yang Tao: Hello, everyone. I am the founder of FinNexus. I entered the currency circle in 2016 and was the co-founder of Wanchain before.
Egg Fried Rice: Then let’s officially start our AMA. Before we start, let me talk about the two parts of our AMA.
Today's AMA event is divided into two stages. The first stage is the theme question and answer. I will ask 8 prepared questions in the form of one question and one answer. After the 8 questions are over, it will enter the second stage, free question and answer. Group friends can freely ask guests questions, and guests are free to choose 3-5 questions to answer. The small partners who are selected for the question will share the reward of FNX token worth 100USDT together.
Egg Fried Rice: The first question is that FinNexus is a mature project on Ethereum, why is it considered to be deployed on Heco? This question is also curious to many people.
Yang Tao: The gas fee of Ethereum has blocked many people. Now it is too expensive to use hundreds of thousands of dollars to operate Ethereum. Option contracts are more complicated, and Gas is more expensive. Simply put, options are to buy ups and downs. Gas fees make many people afraid to buy, and the cost is too high.
Heco's ecological development is rapid and there is no gas fee problem, which is an important reason for us to consider deploying on Heco.
In addition, the eco official contacted us in December, hoping that we would go to Heco. The relationship between everyone has always been good. This time the Westarter platform is also strongly promoted by them. All resources are in place, so I will go to Heco.
FNX was deployed on multiple chains from the beginning. It used to be Ethereum and Wanchain, now it is Heco, and there may be BSC in the future. In the end, these Tokens will be connected and become a large cross-chain derivatives project. In the short term, FNX on Heco will run independently, with a small amount and a large space.
Egg Fried Rice: Thank you, Mr. Yang, for your answer. The gas fee was really high a while ago, and I felt the heartache of the transaction. The BSC and HECO ecosystems are indeed silky smooth and much cheaper. Development on HECO appears to be a very important deployment step for FNX. So let's ask the next question.
Egg Fried Rice: The second question is that this 10 billion-level market is looking forward to it. How is FinNexus laid out in it? Can you briefly introduce FinNexus?
Yang Tao: We have been laying out the option track for a long time. The product has been iterated for 3 versions so far, and a hot product will be launched soon.
FNX’s option is the first, and Hegic and we iterate almost at the same time. Our two projects are the only ones in the world that use the pool model for options. For example, OPyn and others are in the option model of traditional finance, and their liquidity is particularly poor. The pool model simply means that all the sellers gather into a pool, and the pool bets against the buyer uniformly, and the buyer can issue any options from the pool.
Options on the pool model have several advantages:
1. Unlimited liquidity
Users can buy whatever they want without worrying about liquidity.
2. The threshold for user participation is lowered. In fact, option sellers will make money for a long time. In traditional options, sellers are called ducks, and everyone is willing to be a duck. Now ordinary users can participate in the seller by joining the pool, and do not need to understand options, because the pricing process of options is smart contracted.
3. The expansion of this pool is unlimited. We now have options for BTC, ETH, MKR, LINK, and SNX, which are exclusive globally. In the future, we will also be able to open options for oil, gold, and Musk companies! Think about the space.
Let me tell you that we are developing leveraged tokens, namely 3XBTC and 3XETH. Many users may have played on centralized exchanges, and decentralized ones are more fragrant.
Buying 3xBTC directly is bullish. If BTC rises by 10%, you earn 30%.
Egg Fried Rice: Looking forward to the iteration of new products, Mr. Yang, so let's come to the third question. The development speed and growth of the DeFi options industry has become a hot topic. Compared with FinNexus, what advantages does it have?
Yang Tao: First, the pool model is an advantage, and the pool model with multiple assets in a single pool is more efficient in capital utilization.
Second, our colleagues at home and abroad cooperate very tacitly. All the articles are edited by Native Speaker. From the very beginning, they are positioned globally, because Defi has no borders; overseas Twitter currently has nearly 20,000 followers in the Tele group We chatted very Hi every day.
Third, we work closely with great communities like Blockark.
Fourth, our team has gathered developers who have been working on the blockchain for many years, who understand the blockchain well, and have professional financial talents, so our product design and iteration speed is very fast.
Egg Fried Rice: Thank you Mr. Yang for your approval. I often check twitter, so I see that FNX's overseas audience is quite active. So on to our fourth question.
Egg Fried Rice: As a decentralized options platform, what is the difference between FinNexus and other platforms in terms of delivery and settlement mechanism?
Tao Yang: FNX options are settled with stablecoins. The most important thing about stablecoin settlement is that it has strong scalability. If it is extended to options on real assets, everyone will accept it very well. It is very smooth for you to use USD to settle oil or gold.
On Heco it is USDT.
The second is FNX settlement. This piece is very similar to SNX, and FNX can also trade options in the FNX pool, so FNX itself is also useful. For example, if you mine some FNX today, you can open an option and gamble on luck, anyway, you are playing with profits.
In terms of delivery, we use cash delivery. Simply put, it is to settle the profit, and there is no need to settle the spot. So you bought the right BTC bullish, and finally took the profit denominated in USD, which is more direct and simple.
There is no problem of not being able to settle the contract settlement, and those who win will definitely be able to take it away.
Egg Fried Rice: This design is still interesting, and there is no run-on problem. In the next question, we would like to ask some questions about Heco.
Egg Fried Rice: What is special about the mining mechanism of FinNexus on Heco?
Yang Tao: There are several mining methods for mining on Heco: the first is to use USDT to mine, the second is to use FNX to mine, and the third is to accelerate mining, and the focus is on accelerated mining.
How to speed up? If you mine with USDT and FNX at the same time, you can speed up. If the number of USDT and FNX mining at the same time is 1:1, you will get an acceleration. This acceleration is up to 3 times, which we call an acceleration.
It can also be accelerated twice. Secondary acceleration by locking FNX, the shortest is 1 month, the longest is half a year, and the acceleration is up to 4 times.
Users can get the highest acceleration by locking FNX. In fact, it is very suitable in the early stage, because the locked ones can be dug back in a short time, and the rest can be earned.
In fact, it is very simple, that is, FNX and USDT are mined together, and FNX is locked to mine, and these two methods can be accelerated to obtain the highest income.
So in the early days, no one had FNX, and whoever dug it out first would be the best. The amount of IDO is small, and mining is more important.
Egg Fried Rice: Then the next question is, let’s talk about the plan of FNX. What new plan does Finnexus have this year?
Yang Tao: I mentioned this just now. We will launch leveraged tokens next month. In addition, we are also upgrading the current option agreement. We will open up more functions in the future, such as option seller function, option trading function and so on.
There is also the explosive one, 3xBTC
Focusing on derivatives, we develop what the market needs. This is also our strength. Our product capabilities are outstanding, and foreigners can't keep up with our speed.
Egg Fried Rice: At present, the field of encrypted digital currency has witnessed the phenomenal explosion of DeFi. DeFi solutions cover almost all track services of traditional finance, ranging from various derivatives such as spot, mortgage, and lending. Among them, decentralized option trading is currently Still in its infancy. What do you think the options market will look like in the future, or in what direction will it develop?
Yang Tao: The option market or the derivatives market is far larger than the spot market in traditional finance. That is to say, the derivatives market will have a platform larger than Uni.
Absolutely, I am not the only one who says that all our investors say the same. In addition, we will soon officially announce the completion of this round of investment, led by well-known institutions and participating in the investment.
Investors are very optimistic about the derivatives track, where hundreds of times coins and even thousand times coins will be born.
Option is one of the most important components in the derivatives track. At this stage, there is a stage of existence and non-existence, which is very similar to the state of Uni two years ago, with few people using it. But Uni is at the forefront, and when the decentralized exchange breaks out, he must be the biggest.
The development of derivatives will be faster than that of spot products, because Defi and Swap transactions have completed the education process of on-chain transactions. We have talked with many users, users in Deribit, they don’t mind at all and even look forward to trading options on the chain, because there is no need to worry about any risks, the contract is automatically settled, and it is normal for many Uni and Sushi to be born on the derivatives track. The biggest difference between this track and spot trading is: the number of transactions is not necessarily large, but the amount of funds will be very large.
Objectively speaking, even if you don't like FNX, don't look down on this track, don't miss the next Compound, SNX, UNI, don't miss another 100 million. FNX hopes to become the 100 million you missed, and hope that everyone can help us become the 100 million that others miss. The power of the community is more important than us.
FNX is running for the world's top derivatives projects, not Copy, let alone Tugou. This is why Heco pushes us to go up.
Let's take more time to communicate freely.
Egg Fried Rice: The derivatives track has always been a very important track, and it has not yet become the leader. FNX still has a good chance to become the leader of the options track.
【Free question and answer session】
【Free question and answer session】
Question: Since there are many elements that users can choose, and the AMM mechanism has been introduced, the pricing of an option on FinNexus is not very clear, so I would like to ask the guest how the current option product of FinNexus is priced?
Yang Tao: You are very professional. Let me explain briefly. One is the BS model, and the other is the opening adjustment mechanism of up and down options. Oracle introduces the spot price and IV for pricing. The pricing process is completely realized in the contract. If you are interested in our option mechanism, you can read the Product Paper:https://www.docs.finnexus.io/about/productpaper/
Q: Can you tell us about the long-term holders of dynamic FNX who hold investors? What are your plans to help drive demand and scarcity for the token?
Yang Tao: Dividends, direct or not?
Q: How do you get through your tokens?
Yang Tao: Wait for the exchange to support it, or use a cross-chain bridge.
Q: How does the option on FNX solve the problem of liquidity risk, will it expire and cannot be exercised?
Yang Tao: No, when you buy options, the funds for redemption are locked.
Q: When will Huobi be listed, hahaha
Yang Tao: When you can get through, you will get through, and if you get through, you will get through.
Yang Tao: There will be an option trading competition later, and you can earn money by buying options and earn bonuses. If you are interested, you can play it.
Mining mechanism on Heco
https://mp.weixin.qq.com/s/8LIMb9_gG0-5x_0xYlvTxw
This is a mining tutorial on Ethereum. If you are interested, you can dig it first. Follow our official account on Heco and send it out tomorrow.
Egg Fried Rice: Okay, today’s AMA is over here. Thanks again to Mr. Yang for your wonderful sharing. The extra award-winning friends can privately chat with sumi@BlockArk Little Assistant registration information. Thank you for your active participation!
Those who are interested can also participate in the westarter subscription:
FinNexus will officially log into HECO and launch WeStarter on March 3, 2021 to open the public offering. This public offering adopts a whitelist system, and the application rules are as follows:
1. Scan the QR code below to enter the FinNexus Heco group and join Westarter's Telegram communityhttps://t.me/westarter_official
2. Forward this promotional poster to Moments and get 3 likes and screenshots.
3. Forward this announcement to a WeChat group with more than 200 members, and take a screenshot.
4. Scan the screenshot and your Heco address participating in the public offering, scan the QR code and submit the following questionnaire:https://wj.qq.com/s2/8124894/8083/
*Note: This article is only for research discussion and information sharing, not as investment advice.
*Note: This article is only for research discussion and information sharing, not as investment advice.
