Thank you to the TwentyOne Crypto Community for participating in Ask Me Anything (AMA) with Rikkei Finance June 08, 2021.

This guest star

1. Vu Thanh Tung — CTO

Here’s our 57th AMA RECAP.

Introduction

Vu Thanh Tung

My name is tung, co-founder & CTO of Rkkei finance. I completed Ph.D. From Nanyang technology university, Singapore in 2017. I had previously served as a scientist, researcher at various reputed institutions.

Before Rkkei finance, I was CTO of Rkkeisoft, one of the biggest companies in Vietnam with more than 1300 developers working in multiple countries, including Vietnam, Japan, Singapore, etc.

Q1. Can you provide us with a brief description about Rikkei Finance?

Vu Thanh Tung

In simple words, Rikkei Finance ($RIFI) is a lending protocol.

The core features include cross-chain support, NFTs collateralization, and p2p insurance. It utilizes blockchain tech that enables cross-chain integration, meaning it can accept digital assets that operate on any blockchain network and render it at an equivalent rate, making them a real-time currency exchange network as well.

Q2. Can you share with us the milestones you have achived so far and your upcoming plans?

Vu Thanh Tung

Fund raising is finished. We’ve successfully raised $5.6 million to build our lending protocol.

About the product, the development phase is almost done, and we are in the process of having it audited right now.

About the team, we are consolidating our team, especially the Marketing team. We are working hard to bring our project to the community

Our next upcoming milestones is the tokens listing, it will be on Pancakeswap. We progressively launch our products along with token listing. There will be a bug bounty program early on with extremely high value as well.

For more information, please stay tuned for our updated roadmap via our website: rikkei.finance !!

QUESTIONS FROM TWITTER

Q1. From : drstrange202

“STAKING’’ is one of the STRATEGIES to ATTRACT USERS and HOLD them long term. Does your GREAT PROJECT have plan about Staking?

Vu Thanh Tung

We will release at least 3 different vaults for the community to participate in.

(1) Stable coin vault: You stake your stable coin (USDC, USDT, BUSD, … to be defined later) and earn some interest rate money plus RiFi token
(2) Rifi vault: You stake our RiFi token in and earn HUGE reward with GREAT APY
(3)RiFi/BNB Pair vault: You provide liquidity for RiFi/BNB pair and earn reward from that.

Stay tuned for more information via rikkei.finance!!

Q2. From : bukanmengg

What are the core features of Rikkei Finance? How are you different and unique from all other projects out there?

Vu Thanh Tung

Well, it’s true that there’are big players in the lending field like Compound and AAVE. But we believe that there’re plenty of room for improvement and we can still contribute a lot for not only the protocol but also the community.

About the question, the main unique features of Rikkei Finance are:

1. Rikkei Finance is a diverse place for many collateral types. Users are free to decide which assets can be used as collateral based on out asset ranking system. Especially, apart from stablecoins and blockchain-based tokens, users can put their NFT assets up as collateral for a loan, or offer loans to other users on thei non-fungible tokens.

2. Rikkei Finance offfers no-limit cross-chain transaction. Users can lend and borrow any digital assets regardless of its blockchain.

3. Rikkei Finance implements improved interest rate model. Our interest rate model takes into account the cost of borrowing in periods of low utilization rate as well as the cost of capital in periods of high utilization rate, which brings a wealth of benefits to the market and investors.

4. Rikkei Finance promotes worry-free user experiences by liquidation coverage. For the first time, users can ensure their own safety by purchasing coverage for liquidation in their vaults.

Q3. From : aflah_khoirul

The Rikkei Finance project is a financial project so security system issues should be an important issue. How does your project convince investors that your project’s security system is secure? What will investors get in the next few years when they invest in the Rikkei Project?

Vu Thanh Tung

It’s true that lately there’s many attacks in various sizes targeting different DeFi protocols on BSC. They exploit different weaknesses of the protocols, normally including (1) Bugs in source code (2) manipulating token price and (3) bad risk management control model.

For RiFi, we apply multiple methods to ensure the security of the system:

- Multi-kinked Interest rate model: Instead of applying the traditional simple linear interest rate model, RiFi uses the Multi-kinked model. The strength of the multi-kinked model is that it can handle the stress point of high utilization rate (Ut). At that point, borrowing demand is significantly high and all users borrow at the maximum. As a result, if the market witnesses a significant price correction, it will create a mass liquidation effect, directly reducing the liquidity of the protocol and making the system unsustainable. RiFi’s approach is to increase the borrow interest rate considerably to reduce risk and limit borrowing at this time.

- Transparent 5-phase asset selection process. Through this process, assets will be evaluated using a self-developed Liquidity Ranking System, ensuring that only the most liquid assets are allocated to the pool, minimizing the risk of market manipulation and thereby ensuring system sustainability.

- Risk management model. Our system sustainability is ensured by controlling the collateral factor closely, setting limit for one-time withdrawal; freezing the supply/borrow when there is an attack; and employing complex price oracle. This allows our system to sustainably respond to any market situations.

- RiFi’s source code will be audited by experienced parties. There will be a bug bounty program early on with extremely high value as well.

About the investors, I guess they will be rich 🙂

Q4. From : iracubdito

What exactly does the Rikkei Finance effective interest rate model consist of? What are the main benefits of this model for your users?

Vu Thanh Tung

We apply Multi-kinked interest rate model instead of traditional linear interest rate model.

There’s nothing wrong with the linear interest rate model, however, there are a couple of points along the line you need to pay attention to, to make sure that your system is safe.

Our Multi-kinded interest rate model tackles 2 key points that traditional model does not address: one to make borrowing less cost prohibitive during periods of low utilization, and another to boost liquidity providing incentives during periods of high utilization.

(1) At the stress point, when everyone is borrowing at max capacity. If there’s big price correction (flash dip) in the market, everyone got liquidated and you can just simply go bankrupt. That why’s at this point (Ut) we expotentially increase the borrow rate.

(2) At the lowpoint, when noone want to borrow anything. We find the way to lower the borrow rate without trading off the supply rate.

At low point, users get more benefits, at high point, the protocol is so much safer. So win-win for both parties.

Q5. From : exraw4

Without proper marketing and capital infusion, project dies. How do you convince us you have adequate marketing power and capital to push this project to the top project?

Vu Thanh Tung

Marketing and Capital are indeed our priorities from the beginning.

In terms of marketing, besides the traditional marketing activities like News broadcasting, AMA and twitter channel, we will launch couple of airdrop campaigns. You guys can participate in some contest, bug bounty, early liquidity program, etc., to know more about the project and earn FREE RiFi token.

In terms of finance, let me clarify to you guys:

A. About initial liquidity providing
(1) RiFi has raised $5.6 millions, definitely not a small amount. This initial fundraising can provide (partly) the initial liquidity for the system, which is as per our plan.
(2) Investors and partners of RiFi all have committed to provide a certain amount of liquidity into the system. The total number is quite impressive, and it will be shared with the community shortly.

B. About long-term profit
Lending is all about the difference between borrowing interest rate and supplying interest rate. This difference will be used as:
(1) interest payment for the lender
(2) risk reserve for the protocol and
(3) system profit.

In the short term, we will not prioritize the profit of the project, but we will focus mainly on risk reserve purpose, ensuring the safety of the protocol as well as users. We will gradually increase the profit margin in the long run. In general, this will be a profitable and sustainable business model, not relying on selling tokens for profit like some other DeFi protocols.

QUIZ

Q1: “What is true about Rikkei Finance Protocol Architecture?

A. Rikkei Finance doesn’t limit the amount of one-time withdrawal (or borrowing).
B. The collateral factor Rikkei Finance is determined by the protocol based on market liquidity measurement, volatility rate of an asset so that during the liquidation period, the market for this asset will not fluctuate too greatly to affect the system.
C. On RiFi system, users cannot use NFT for collateralization like other assets.
D. Rikkei Finance applies the tradition linear model for the platform’s interest rate model.”

Answer:
B. The collateral factor Rikkei Finance is determined by the protocol based on market liquidity measurement, volatility rate of an asset so that during the

Q2: “Recently, there are many attacks in various sizes targeting different DeFi protocols on the BSC. What is not the method of Rikkei Finance to ensure the security of their system?

A. Rikkei Finance uses the Multi-kinked model that can handle the stress point of high utilization rate (Ut), which will create a mass liquidation effect when the market experiences a significant prifce correction. Therefore, RiFi’s approach is to increase the borrow interest rate to reduce risk and limit borrowing at that time.
B. Rikkei Finance applies the transparent 5-phase asset selection process to ensure system efficiency and protect borrowers and suppliers.
C. Rikkei Finance’s source code is not audited by experienced parties.
D. Rikkei Finance implements the risk management model in order to allow their system to sustainably respond to any market situations”

Answer:
C. Rikkei Finance’s source code is not audited by experienced parties.

Q3: “What is the purpose of Rikkei Finance for developing their Liquidity Vault?

A. To analyze the asset and allow the asset to be allocated to the pool.
B. To allow retail users to provide initial liquidity into the system and earn rewards.
C. To ensure the transparency of the asset selection process and make their system sustainable.”

Answer:
B. To allow retail users to provide initial liquidity into the system and earn rewards.

Q4: “What are the key features of Rikkei Finance?

A. Utilize a high-speed and low transaction cost by leveraging the BSC.
B. Borrow cryptocurrencies, stablecoins and NFTs without negotiation with a peer or a counterparty.
C. Supply cryptocurrencies, stablecoins and NFTs and earn an interest as well as reward tokens for providing liquidity to the protocol.
D. Controlled by the governance token — RiFi token.
E. B and C
F. A, B, C and D”

Answer:
F. A, B, C and D”

Q5: “What is the benefit of RiFi’s Multi-kinked interest rate model?

A. Make borrowing less cost prohibitive during periods of low utilization.
B. Boost liquidity providing incentives during periods of high utilization.
C. Both A anb B”

Answer:
C. Both A anb B”

Thank you so much for all the nice words.
Happy to be here sharing our project with the TwentyONE family. You guys are great!

Pls find out more about Rikkei Finance via

Telegram : https://t.me/RikkeiFinance

Website : https://rikkei.finance

Telegram Channel : https://t.me/RikkeiFinance_official

Twitter : https://twitter.com/RikkeiFinance

Medium : https://medium.com/rikkeifinance

Litepaper : https://rikkei.finance/litepaper

Facebook : https://www.facebook.com/RikkeiFinance

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