MatrixETF AMA with @Solana_Fr
On September 24th, MatrixETF was honored to be invited by @Solana_FR to join their AMA, TG location:@Solana_Fr. Alan-CTO of MatrixETF was the speaker. The community members and the host were enthusiastic, thanks everyone for joining this AMA. Congratulations to the 5 lucky winners who can gain $150 rewards in total. These are the 10 questions and answers below:
Q1: How many people are working full time on the project and could you give more information about your team? And where are you based?
A1: Hello everyone, it’s a pleasure to be here. Thanks for the invitation!
I am Alan — -CTO of MatrixETF, thanks for the invitation!
As you know MatrixETF is a decentralized ETF with cross-chain enabled platform, our goal is to establish a decentralized, automated, personalized and diversified portfolio for users, as well as help users easily enjoy long-term, stable and efficient financial services.
First of all let me introduce myself in a brief way: I graduated from Ontario Institute of Technology, used to be Technical Director of multiple blockchain projects.
There are 11 team members in MatrixETF which include 6 engineers and 5 Marketing staff based in Vancouver, Singapore and HongKong.
As early as 2017 we have joined the blockchain field such as investing in BTC/ETH and participating in EOS、NEO、TRX、BNB fundraise.
We have rich experiences on blockchain projects such as: writing crypto investment reports, managing operation teams, designing token economic models, designing product formulate, developing Solidity/Rust smart contracts etc.
We’ve established a crypto fund in 2019 with 5,000,000 USDT, we’ve used unique quant strategy and market trend analysis for helping investors obtain an Annualized rate of return of 30%。
Crypto market has been developed in 2020 on DeFi projects such as COMP、YFI、UNI、AAVE, we can go through Farming, AMM, Farming, Vault Aggregator to improve the value of Token, which enrich the crypto market’s ecosystem by getting away of speculation.
As time goes on we found the crypto market is getting more and more mature, there is a huge chance for DeFi ETF. In this case we have built MatrixETF team with our technical and investment experience at the beginning of 2021, to start over the crypto DeFi ETF field.
Q2: What is the level of security regarding the funds? Have you audited your smart contracts? Have Smart Contracts been audited yet ?
A2: User’s asset is managed by smart contract, our team has the safest code audit which you don’t have to worry about, at the same time all codes from MatrixETF will be audited by the audit company to ensure the security.
Nowadays we are connecting the code audit companies for auditing our APP and smart contracts, we will inform you once there is an update about it. Meanwhile, after launching the products, we will start over Bug rewarding in the community, in this case more users can try our products and find bugs by feedback to us.
Q3: What is your road map for the future, and can we know a bit more about the fee structure?
A3: There are 4 phases on MatrixETF product development:
Phase1：Platform Self-created Funds
Phase2：Support for Adding Derivatives
Phase3：DAO Community Governance
Nowadays MatrixETF is in the first phase, in the future we will promote more conceptual ETF to track high qualified Tokens in the DeFi industry.
In the phase 3 to 4, we will gradually hand the governance right to our community, at the same time, MatrixETF will provide SDK toolkits to professional fund managers & institutions and influences, in order to create their own ETF.
This modular SDK can greatly improve the fund freedom, and ETF creators can efficiently manage funds and gain extra incomes by using this toolkit to invest in the DeFi ecosystem.
Recently MatrixETF has deployed smart contracts on both Solana and Ethereum, and we have successfully done our first phase of testnet. We planned to officially launch more than 2 ETF products before the end of September, which include 1 Ethereum based ETF and 1 Solana based ETF. In future we will deploy products on more public chains such as BSC、Polygon、Near in order to meet more users’ investment demands.
The fee structure of MatrixETF products includes 2 parts: one is the governance fee of ETFs, which will be charged temporarily as 0.3% when ETFs are redeemed. Another one is the transaction fee in DEX, which will be charged depending on platforms created by the liquidity pool.
Q4: Will the funds include token from different blockchain but also the traditional stock market?
A4: As we know MatrixETF is in cross-chain enabled method which deploys smart contract on the public chains such as Solana, Ethereum, however it doesn’t integrate with bridge technology.
The reason why we do that is to ensure the asset security and user’s experience, rather than support the ETF component tokens in different chains. Meanwhile the ETF in one chain can only govern the assets on this chain.
According to the roadmap of our products, in the future we will integrate more components to support the traditional stock and different blockchain tokens in the customized module phase.
Q5: What will be the utility of the token?
A5: MDF is the governance token of MatrixETF community, including the following usage scenarios and utilities:
- Participate in the governance of MatrixETF (DAO community governance)
- Buy ETF products/ETFs
- Improve values by getting profits from different ETF portfolios
- Participate in liquidity mining to gain returns
- Staking mining
- Ecological value-added
- Buy-back and destruction
- Discounts in handling fees and other fees
Q6: It would be possible to propose the creation of inverse ETFs if we are bearish on some risky assets?
A6: The first phase of MatrixETF product is the passive ETF which can only allow the normal tokens
Instead of inverse token products(bear short), well you know the ETF transaction is based on DEX which is convenient for inverse tokens, this is why we are not appropriate getting into inverse short ETFs.
However to meet users’ requirements, MatrixETF plans to graduate the ETFs of hedge and fixed investment in the phase 2–3.
At the same time, MatrixETF will promote the actively managed ETF which is managed by branding quant team and institution for all different demands.
Q7: Will you be open to the community suggestion to create some of the etf (for the etf composition) ?
A7: Sure thing, MatrixETF will establish DAO community and gradually move the governance rights to DAO community in the third phase.
A community DAO can propose ETF products. Community users can initiate ETF fund proposals freely. After proposals reach a certain level of attention, they can be voted on. ETF fund proposals that are passed by voting will be officially launched on the platform. Proposal sponsors and lucky voting users will receive community incentives.
Q8: What is your difference with your competitors?
A8: Well we can name there is quite few competitors in the market such as PieDao/PowerIndex/NFTX, I think the main competitive advantages of MatrixETF are:
1. Cross-chain enabled
As we know each chain has its own character such as the fast speed, low Gas fee and good experience purchasing an ETF on Solana, such as the rich DeFi ecosystem, various assets and good experience purchasing an ETF on Ethereum.
MatrixETF allows cross-chain function on different chains, the goal is to catch high-qualified assets on different public chains in addition to providing more market choices and incomes to users. Nowadays MatrixETF has deployed smart contracts on Solana and Ethereum, and we have successfully done open test on our products. In our blue picture we plan to launch at least 2 ETF products on both Solana and Ethereum.
In future we will launch more ETF products on more public chains such as BSC、Polygon、Near、Heco in order to meet all kinds of user’s investment demands.
2. Customized ETF
In the initial phase MatrixETF will launch a variety of conceptual ETFs for tracking high-qualified Token in the field of blockchain and DeFi.
Even MatrixETF created these ETFs, however we will provide governance rights to the community. At the same time, we will provide SDK toolkits to professional fund managers, investment institutions and influencers in order to create their own ETFs.
SDK can greatly increase the fund freedom, from where ETF creators can manage funds flexibly and efficiently, as well as gain extra incomes from assets and DeFi ecosystem.
Q9: Will the project own the underlying assets in each ETF or will it be a synthetic index? If it’s synthetic indexes, how will you ensure the pegging mechanism?
A9: The ETF fund of MatrixETF is a basket of token index, not a synthetic index. The price and value of an ETF will change depending on the component tokens which reflect the whole asset presentation of one concept in the crypto market such as DeFi concept, public chain concept. One ETF is the same as holding the relevant concept asset portfolio, which is convenient and easy to operate for users.
Q10: “one click investment” looks easy but what would be the risk of losing the capital I put on your app?
A10: The return is proportional to the risk. Although an investment ETF product can lower the threshold of investors and diversify investment risks, there are still risks including:
1. The risk of the rise and fall of the component currencies in the ETF
2. Unforeseen systemic risks
Thanks for the invitation and arrangement by @Solana_FR! Looking forward to having our collaboration in future!
MatrixETF is the next generation of decentralized ETF platform to run the cross chain，which goal is to establish a decentralized, automated, personalized and diversified portfolio for users, as well as help users easily enjoy long-term, stable and efficient financial services.