On March 26th 2021, CoinEx and FinNexus held joint AMA. Michele Penna, CMO at FinNexus and Boris, Founder & CEO at FinNexus answered users questions coving unique features of FinNexus.
Q1. Could you please introduce yourself and FinNexus to our community?
Michele: Hi everybody, this is Michele Penna, I am the Chief Marketing Officer with FinNexus. It is great to be here with you, sharing what we have been doing in the DeFi space. FinNexus is a DeFi platform specialized in financial derivatives and especially options. We launched in 2019 but have become operational only last year. Since then, it has been quite a rollercoaster, with new products being launched and new ideas being constantly brought to the table.
We are live on Ethereum and Wanchain, with FNX, USDT/USDC and FRAX pools. But expect to launch on more chains and layers in the near future. Starting, as you know, from Binance Smart Chain next week!
Q2. In a nutshell, could you please explain what is FinNexus all about and how you distinguish yourself from competitors?
Michele: The core of our offer to the public are our mining and staking services, as well as options trading. As far as mining and staking is concerned, we have what we believe is a very attractive package, with a rewards multiplier going up to potentially 320x.
The system has been designed to encourage mining FNX and USDC/USDT at the same time. This not only provides much higher rewards, but crucially prevents farm-and-dump scenarios and stabilizes our ecosystem.
This system supports our options-trading features. Before jumping into those, however, it might be best to introduce options — contracts that allow users that allow the options buyers/holders to buy or sell an underlying asset — goods, stocks, indexes, etc. — at a predetermined price within a set time frame.
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.
The FinNexus Protocol for Options (FPO) is pioneering a cross-chain system for writing options and gain exposure to multiple assets from within collateral pools. 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.
Q3. How did you find out about CoinEx and why did you want to be listed here?
Michele: Well, I reckon we know where quality is. Actually, we have been following you for quite a while, and were impressed by how lively your community is. Furthermore, for a platform with a native token being listed on exchanged is of course vital, so we thought we could have a fruitful cooperation.
Q4. I know that FinNexus is very proud of its mining mechanism, which produces stunning rewards. Could you get into some details about how the mining and staking will work with the new pool?
Michele: So, about our mining mechanism, we are indeed quite proud.
Launching on Binance Smart Chain is our main piece of news for March. On Monday, March 29, we will open a pool on BSC, our third chain after Ethereum and Wanchain. (And it will not be the last one!). Moving on to other chains is crucial for a variety of reasons. First of all — like many other DeFi projects, I’m sure — many of our users are growing increasingly unhappy with the high fees associated with Ethereum. The chain is a victim of its success in many ways, so offering an alternative has become a necessity.
Furthermore, we aim to both enlarge and diversify our userbase. BSC has enjoyed a huge success since its launch and we think there is real value in joining the project.
Our mining system will not be exactly the same over there though. Whereas we will maintain incentives to pool stablecoins and FNX contemporarily, incentives will be lower, with a rewards multiplier up to 6x. If you are interested, have a look at the quick guide: https://finnexus.io/blog/the-quick-guide-on-how-to-mine-with-finnexus-on-binance-smart-chain-bsc.
We have chosen BSC because it is one of the top tier blockchains out there — the value of assets on-chain keeps on raising, a thriving DeFi ecosystem is establishing- and because our community selected it. At FinNexus we really try to be as transparent and inclusive as possible, meaning whenever we can we ask our users to vote on the next step to take. When we asked the community to choose between BSC and Heco, the support for BSC was overwhelming. After that, we moved pretty quickly to organize everything.
We have chosen BSC because it is one of the top tier blockchains out there — the value of assets on-chain keeps on raising, a thriving DeFi ecosystem is establishing- and because our community selected it.
At FinNexus we really try to be as transparent and inclusive as possible, meaning whenever we can we ask our users to vote on the next step to take. When we asked the community to choose between BSC and Heco, the support for BSC was overwhelming. After that, we moved pretty quickly to organize everything.
Q5. I am also aware that FinNexus is working on some innovative new products. Any chance you could let our community know some details?
Michele: Yeah, we have launched a pool with Frax as collateral not long ago, but the biggest news will come out in April. It is only a matter of weeks before we introduce Decentralized Leveraged Tokens, an entirely new concept in DeFi. They were pioneered by FTX, the centralized exchange, as tokens that would self-rebalance in order to maintain certain leverage, without users needing to actively manage margin, worry about liquidation, etc. Essentially, they work like holding a leveraged position — but without the many of the hassles associated with it.
It is important to notice that FinNexus codes are open-source and all the mechanisms and transactions are public and on-chain. This is no black box — everything concerning the rebalancing, as well as the calculation of profits and losses, will be available to the public. You can check out this article prepared by FinNexus’ co-founder and financial expert Ryan Tian: https://coinmarketcap.com/alexandria/article/a-defi-model-for-decentralized-leveraged-tokens-finnexus
This is a bit of a change of direction for us. But it was always in our DNA — our goal is to bring ever-newer products — and to move to multiple chains — to our community. Options were the first step. Decentralized Leveraged Tokens will be the next. And more will come later. It is perhaps interesting that these tokens will have advantages that are almost the opposite of options. The latter are flexible, powerful financial instruments, but they tend to be fairly complicated to use for the average user. Leveraged tokens, on the other hand, are great because of their simplicity. It will be interesting to see how users will react to it.
Q6. What is the mission of FinNexus and what drives you to create new products?
Michele: Our mission is to keep on providing our customers with ever-newer, and ever-better products. We are constantly looking for ways to grow our projects and improve our services. It is a privilege to operate in such a fast-moving space, although to be fair, in crypto innovation is also a necessity — if you do not move forward, you will be let behind fairly quickly!
Questions from audience:
Why BSC migration?
Boris: I think it is not a migration. It is a deployment on BSC. We will keep focuing on Ethereum. You know BSC has lots of assets and users which are not totally same as Ethereum. So in our strategy we will keep deploy the version on other chains with good ecosystem.
Can I buy your coin now? Will it go up?
Boris: haha I think so. But I still can not give you an investment advice. Any investment has potential risk.
Most of investor just focus on the price of token in short term instead of real value of project. Can you (as FinNexus Team) tell us the motivation and benefits for investors to long term?
Michele: We are aware of this trend and whereas we try to provide the best-possible value even in the short term, we are actually focused on the long run. This means creating useful products that have real value — in our case, options now and deleveraged token in the near future.
Boris: We focus on derivatives which will be boom after swap lending mature like traditional finance. Derivatives trading in Defi will appear some platform as bigger as Uniswap. That is our long term strategy.
Every day new DeFi projects are announced. I feel like everyone just wants to ride the waves, this bubble is going to burst too. What innovations & ideas are bringing FinNexus to DeFi that we haven’t seen and will there be any updates regarding DeFi?
Boris: In my opinion. You should watch the projects by 2 important sides. One is if product is running. Another is if products has something innovative. Even bubble there, for long time products uses like will have a good potential like Uniwap 2 years ago.
Michele: FinNexus is one of a handful of DeFi projects working with options. These derivatives have risen in popularity enormously in traditional finance. Yet, in crypto they are relatively niche — if even a small part of that massive market moves to the decentralized space, we want to be there to capture it.
Furthermore, as I was mentioning, we are always on the lookout for new possibilities — from algorithmic stablecoins to use as collateral to leveraged tokens, we can guarantee we will keep innovation as a priority.
How proactive are you in addressing concerns and queries that may be generated among your community members?
Michele: As proactive as we can be! We strive to be always there. Check out our TG and Discord channels if you ae interested, our managers are always on to address any queries.
What is the background of FinNexus team? Do you think it is competent enough to run FinNexus for long-term?
Boris: I joined the industry from 2016 as cofounder of Wanchain. Ryan has excellent finance backgroud and Michele is great at marketing and community operating. Our dev teams codes for several years in the industy. That is why we could upgrade our products quickly.
What are FinNexus ‘s utilities and mainly real use cases? What is the long-term plan for FinNexus in 2–3 years?
Michele: At the moment, we believe our pooled-liquidity mechanism represents a step forward in providing a smooth trading experience to our users. Trading options and other financial derivatives — with all the benefits this entails — is our goal.
What is your long-term plan with FinNexus early adopters? What are the best ways for community to help you guys out with adoption?
Michele: We value our community very much. In fact, I personally believe the community is a DeFi project’s ultimate asset — without a strong base, you will not survive long. For this reason, we try to involve our users as much as possible, especially through our voting and our ambassadors program
In a long term vision, I have no doubt about the potential of blockchain technology as well FNX in the future since its technology is great. But, in short term, how will FinNexus team balance the conflict between investors’ profit and project ecosystem health as well as prevent pump-dump mechanism?
Michele: We strive to stay away from pump-and-dumps, which in the end produce disappointment and neglect on the part of users. On the contrary, we are working on delivering products with real use-cases and financial value to drive sustainable growth. If you consider options, for instance, these offer immense possibilities to protect and appreciate wealth
Too many projects disappear in this tough market conditions. How do you ensure the sustainability of it ? What is the way of success?
Michele: I personally reckon adaptation is key in every industry. And even more so in crypto. We are in a field where everything changes constantly and one year feels like 10 in traditional finance. Spotting the new trends and managing to benefit from them is a necessity.
What is the biggest problem solving by FinNexus that another competitive project do not solve?
Michele: In this regard, we are the first to launch a Decentralized Leveraged Token and our pooled-liquidity system goes a long way in fixing one of the main issues faced by defi projects — meaning liquidity, or rather the lack of it. This means trading options with our system is both intuitive and smooth.
FinNexus is a DeFi platform specialized in options and financial derivatives. We harness the possibilities offered by blockchain to build an array of instruments and services across multiple chains and layers.
As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading, and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.
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