Yield AMA with Tim Frost, Jan Strandberg, and Justin Wright at t.me/amaroom
@mursuvalas, @timfrost5, @justinYIELD
Great to have you guys here
Let's start this session
Could you tell us how you came into crypto space and how you came up with yield in the first place?
Justin: I have spent most of my career in capital markets and fund management before moving over to Fintech, this is my first venture in the crypto space. I have spent the last 6 years building out Beehive P2P, the largest SME P2P lender in the Middle East, and having been introduced to DeFi by Tim and seeing the potential to really take crypto to the mainstream, I jumped at the chance to be part of the founding team @YIELD.app
Tim: I have been building fintech and crypto companies since 2014. YIELD is my 3rd digital bank with Wirex and EQIBank being my first 2. When we got together we wanted to build a digital bank with a real purpose. The purpose is to provide people with high interest yielding accounts that are powered by defi. Before YIELD.app I have been a key figure with many successful fintech and blockchain companies. Specializing in early-stage growth, operations, and development. As part of the founding Wirex team and supported operations, business development, and marketing for the first 18 months. I also joined and helped take EQIBank to market a global digital challenger bank with an average client AUM of $250,000. I have helped accelerate early-stage blockchain startups QTUM, NEO, Paxful, Polymath, Selfkey, Everex, and many others.
Jan: Being a growth hacker, digital nomad, and creative thinker, I oversee marketing for YIELD. I’m very data-driven and have extensive experience in branding, PR, and SEO. As the head of marketing at Paxful, I helped the company scale up from 50k users to more than 4.5M, and from 100k weekly revenue to over 45M.
I also have many successful ventures in the gambling industry and own a marketing boutique agency.
I’ve been around crypto since 2012 when I met Martti Malmi and after that spent some time consulting different companies. In 2016 I joined paxful and the rest is history 🙏
Jc: Seems you all have a lot of experience
Can you please introduce us to YIELD? Who was it made for and what problems does the product aim to solve?
Tim: YIELD is a licensed and regulated FinTech company that enables anyone to invest in decentralized finance with the touch of a button! Thanks to our intuitive app and web platform, users around the world can start earning returns from DeFi products without having to go through a lengthy, complex, and often costly learning process. Our users earn up to 20% APY through our DeFi strategies on the backend.
We built YIELD for those who want to invest in defi, but may not have a large bankroll, understand all the sophistication of DeFi, or have the time. YIELD is designed to be a simple and effective way to earn DeFi yields.
We are backed by:
Instead of you doing all that work we do it for you
defi is costly and also complicated and we want to tackle both of these problems
Jc: To follow up, you mentioned that YIELD aims to provide a similar experience to traditional digital banking. What does that look like and how will you make this possible in the world of crypto?
Jan: YIELD.app has already successfully acquired an off-shore banking license to support our launch. Typically it takes time to reach multiple jurisdictional regulatory approvals, we are setting out our intentions from the start and will continue to add licenses as we go for all of our activities.
Our long-term vision is to build a bank and we have already acquired licenses for that. We have also a Credit and debit card planned thanks to our strong relationships with different regulators. The main goal is to get our product launched as for now 🙏
We are targeting a global audience from day one, already working with and continuing to build out alliances with other professional actors in the DeFi space. Some of these are technology-led, all of them are knowledge-driven with the aim of constant improvement and to pass the benefits back to our customer’s
Justin: at the front end, its a familiar digital banking style application, something that most people are familiar with, at the back end we have built a proprietary portfolio management system. this allows YIELD.app to offer traditional features and products including fiat access, debit cards, high yielding investment accounts for example, behind this we have aggregated and actively managed funds that allow delivery of services at a granular level, for example investing as little as $100 and will continue to innovate as we grow, one of our key objectives is providing access in a secure environment coupled with a service delivery IP that simplifies access to the asset class
Tim: In the long term we are building a digital banking application with fiat and crypto deposits, the ability to easily swap between fiat and crypto, along with full fiat accounts, payments rails, and card programs.
Jc: Sounds like a good product! But how are you prepared when it comes to fraud protection and insurance?
Justin: On the insurance and safe custody side, we work with Bitgo for customer wallets that provide an initial insurance layer, we are also contributing a portion of APY to a segregated insurance wallet, this allocation will be conducted weekly, is on-chain, and will be audited monthly and disclosed in our monthly fund performance report that includes the YLD treasury rebalancing metrics as well. we are in discussion with several other insuretech and crypto insurance providers to introduce FDIC style protections as our AUM grows
on the fraud side, we monitor, research, and identify critical systems continue to stress-test these alongside market-related security scenarios to mitigate and remove points of failure across our operating environment including DeFi instruments held in our portfolios, we employ industry-leading experts in their field such as data security consultants who work closely with the portfolio team covering audits, potential exploits, and other potential risks, all of this is then supported by our various oversight, enterprise, and risk management committees and frameworks which we have adopted from the traditional fund and capital markets best practices
Jc: looks like yield is 100% protected from fraud and backed with insurance (happy to see that in a defi project)
Please elaborate more on the YLD token. When will it be generated and what do we get from having it ASAP?
Jan: YLD is a utility token. Thanks to YLD, users can boost their APY, earn interest on their tokens, and support our ecosystem.
Out token generation event will happen on the 14th and we have a presale and public sale going now on the 7th through trustswap
You can read more about our token model here https://yieldapp.medium.com/yield-launching-native-yld-token-5a48f2bb48ac
Tim: You can find full details here https://medium.com/@yieldapp/yield-launching-native-yld-token-5a48f2bb48ac. You can boost your APY from 12% APY up to 20% APY by holding a certain amount of YLD membership tokens for higher rewards. We use a % of profits to rebuy YLD from the market to continue to restock the rewards pool. The token distribution goes live with the public sale happening December 7th with Trust Swap.
Jc: We definitely look forward to getting some tokens! Where’s YIELD at now? How can the community help and what direction are we going in the next few years?
Justin: As we are building a sustainable multi-year project, we will create and add new utility as we continue to add products, features, and technology-driven niches to our capabilities
Tim: Join our channels, and signup for the newsletter. In mid-December, the platform will go live. You will then be able to sign up and participate on the platform.
Jan: We are building with a community-first attitude, if you don’t have a strong community your token will not strive. We want to build communities in different countries and we are constantly working with different communities.
So hopefully we will get some new members from here to join our forces!
Jc: That’s it from me
I will unmute the channel for 3 minutes so that our community members can post their questions
I think they are pretty much excited to learn more about yield
Q: You aim to bridge traditional and Defi by providing high return investment funds. How exactly is this high return on investment achieved? Would there ever be a situation where investors won’t break even on their investment?
A: To avoid the volatility issue, we are offering an underwritten guaranteed return of 10%, we can do this in part through economies of scale, by aggregating capital and employing technology solutions to complement the portfolio team of experts. This alos means we are in a position to take advantage of opportunities that are not available to an individual participant and have the ability to diversify our portfolios across multiple strategies, an example of one of these is automated funding rate arbitrage.
Q: How will Yield App actually help the unbanked? Do you have an educational strategy to attract these types of people to use the App?
A: Hey, our main goal with the Yield App is to solve the problem with complexity and also with the fact that you need a lot of money to participate in DeFi.
One part of this also educating our community with our amazing blog https://www.yield.app/blogpost. We also contribute to the ecosystem with tough leadership peaces and we had Tim’s first peace out today and it's actually trending on Cointelegraph.
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Q: Is there some entity constantly monitoring user funds on the YIELD app? Some kind of manual micro asset managers or an automated process? How efficient is that?
A: Yes we operate as a managed fund and monitor our portfolio 24/7 from our trading team and automation. We have to build a Bloomberg terminal to manage and monitor deFi and portfolio positions.
Q: No one can achieve anything valuable on its own, please tell us about your current and future partnerships that will lead you to success in this highly cramped crypto space?
We do agree, we have partners now and building on all levels. We believe in building a better ecosystem and are focused on this.
Q: What impact will your partnership and collaboration with DuckDAO make in creating a decentralized financial system, and what step will it take into user experience and banking?
A: Every community has a lot of members that don’t have the money or the knowledge to study smart contracts. DeFi is super complex and we want more people to be involved with this space and one way of doing that is partnering up with different communities. DuckDao is an excellent community for getting both the not so tech-savvy people to try our platform but also get feedback from the more heavy users
Q: Since Yield is so keen on risk aversion, does it mean your platform is only suitable for low-risk takers? What if there’s an experienced user who isn’t scared of taking a risk? Does your platform have room to accommodate such people?
A: hi, good question, for the launch and initial fund, it is relatively vanilla to demonstrate the safe custody and security that we want to offer to the mass market. In parallel with this, we have several sandbox portfolios that are constantly testing more sophisticated opportunities before they are considered for inclusion into a primary fund or to be launched under a different category. This includes building our own vaults for example and depending on the complexity and associated risk we will look to offer these to sophisticated investors.
Q: Which regions will initially be available for your card program when it launches in the first quarter of 2021? What kind of requirements are there to take a card from YIELD?
A: It's still in development and we anticipate in January to reveal more info. Southeast Asia is the first market.
Q: You recently shared plus features against NEXO, Blockfi, and Celsius. What is your Plan B if they complete those issues to catch you in the competition?
They are great companies, and we are offering a similar but different offering.
Q: Do you have any Coin Burn / BuyBack systems or any $Token Burn plans to increase the value of Token & attract Investors to invest?
A: We have a fixed supply of YLD from which 45m tokens will be allocated to the rewards/loyalty program. to ensure a continuous supply to meet demand from users, YIELD.app will fund a public YLD treasury rebalancing wallet weekly for purchasing YLD on the open market. the funding amounts and weighted average prices for purchases will be audited and reported monthly via the platform.
Q: how do you market / promote YieldApp functions and benefits in a Southeast Asian country? Do you have an Ambassador program? What is YieldApp’s revenue model during this Pandemic?
A: We do have already different Yield channels both in Vietnamese, Malaysian, and also Chinese. Our main goal target market is SE and we are working with both Influencers and also communities to strive our attraction there.
We do not have yet an ambassador program but plan to launch it in a couple of weeks.
Q: Without a gas fee involved how do YIELD get their revenue to power up the project. What is your secret that results in gas fees not needed?
A: We batch transactions, so we pay the fees, but you don't. It's part of our secret sauce of what we built.
Q: You recently announced a partnership w/BnkToTheFuture, a global online crowdfunding platform for FinTech companies. What motivated you to make this partnership?
A: Because we need to go through strict due diligence with them and we wanted this so we can show the public that we have been vetted strongly. So to make it short to help build trust. Also, most major crypto companies have gone through BnkToTheFuture and it fit where we want to go. They are a great partner.
Q: Can you share with us the unique points of YIELD compared to traditional financial products? Do you build the referral reward system to encourage newbies to use YIELDapp?
A: Yes we have a referral program coming out soon. It will be available soon after launch.
Q: How does YIELD bring together all its DeFi offerings under one roof, without connecting different wallets and apps and needing to repair them with gas?
A: We take care of all the complications and heavy lifting. You simply enjoy the yields without all the complications.
Q: What percentage of the market share do you hope to get? Who exactly is your best customer?
A: Our first user segment is people that already have crypto but are not active traders, so-called passive earners.
eventually, we want to focus on people that are new to crypto, this will happens once we get more Fiat on-ramps and also have some bigger partnerships ready
Q: You recently announced a partnership w/BnkToTheFuture, a global online crowdfunding platform for FinTech companies. What motivated you to make this partnership?
A: We are setting out to bridge the gap between crypto and traditional finance, to do this we need to institutionalize the asset class, educate the broader market, and lead from the front with a licensed platform showcasing best practices. Fintech over the last 5–10 years has already paved the way to make this possible. Trust is everything, BTTF has thoroughly vetted YIELD.app to list our offer, they have seeded some of the most successful projects and have great distribution to get the word out there. YILED.app is their first DeFI listing and their customers have been asking for a project and knowledge such that ours brings
Q: As you know Covid-19 has a large impact in the crypto Market, So How can your company maintain its project and also the team that is working hard during this pandemic? As you know Covid-19 has a large impact in the crypto Market, So How can your company maintain its project and also the team that is working hard during this pandemic?
A: We have a very distributed team and so far it has been working really well. I think the future lies in working from all around the world and big companies are also taking the same steps.
Covid has changed the market a lot but it has also brought a lot of new people interested, due to the economical downturn and also the fact that people tend to trust banks less.
Q: One of the major challenges militating against DeFi mass adoption is the barrier to entry. How will you convince users to trust your technology? What do you think about the DeFi projects that have been hacked recently?
A: We need to make simpler products and we need to make them with the attitude that our mom and dad could use them.
We all come from a background of having established businesses from scratch, this has learned has to simplify things and understand the retail market better
Q: DeFi is booming. Defi is becoming a trend. It’s become a popular issue lately. Is $Yield just following that trend? Or are you well prepared to enter this space?
A: Our vision? As someone says It is huge. Wish I had a crystal ball to read onto the future but let me tell you this to your beloved community here; we are a fintech, a financial technology solution that invests in DeFi for our clients. We do this with a diversified approach to maximize profits safely. And we are here to deliver. Done (Join us!) 💪
What sets YIELD apart is that we are a regulated licensed bank 🏦 managed by a team with a proven track record in FinTech. That said, we are well-prepared to offer transparent governance through our YLD token. Our goal is to go beyond DeFi and provide a more rewarding digital banking experience, where people around the world can easily earn interest on any currency and spend their earnings using our physical debit card 💳, without ever having to think about crypto.
Jc: @mursuvalas, @timfrost5, @justinYIELD
Thanks for answering all our questions patiently
We all are looking forward to the event
Good luck to the team on this great project
Justin: thank you to your community, great questions and happy to have has the chance to answer some directly
Jan: Thanks guys, remember to join our @yieldapp channel and do not hesitate to ask any questions!
Jc: Please join
@yieldapp to know more about them