In case you missed it… our Vice Chairman, Tridbodi Arunanondchai, had a chance to sit down with Miss OKEx and the Velo Community, to answer a few questions about Velo Labs and the future of cross-border payments.
Hello everyone and thank you very much for joining us today! Thanks OKEx Thai Community for having me 😊 My name is Anne, I’m more known as Miss OKEx on Facebook where I’ll be sharing a piece of my life as well as the latest updates and tips on the OKEx’s platform.
It’s my pleasure today to be the host of an AMA session featuring a very special guest — Mr. Tridbodi “Beam” Arunanondchai, Velo Labs’ Vice Chairman, joining with us to share some valuable knowledge on the topic “The future of cross-border payments”.
Today’s AMA flow:
Part 1: Group will be muted as Mr. Beam and I will be introducing Velo Labs and sharing some informative insights.
Part 2: Group will be open for the community to ask their questions for 5 minutes.
Okay, without any further ado, let’s jump right into the first question for Mr. Beam!
Hi, good evening everyone!
Hi Mr. Beam, could you please give us a refresh introducing Velo and how Velo works?
Velo Labs is building a global decentralized network to allow partners, businesses, and individuals to securely and instantly transfer value across the globe. Velo Protocol is one solution — allowing licensed financial institutions to create and exchange digital assets backed by Velo token.
Velo Labs plans to solve the challenge by leveraging the power of blockchain and modern technologies that are under-utilized right now.
Velo’s goal is not to replace traditional banks/money transmitters. Instead, the aim is to empower them with post-internet technologies. It is the most efficient network bridging traditional and decentralized finance at scale.
What has changed for Velo in the past year in terms of team, partnerships, and acquisition of Interstellar?
Earlier this year we announced that the Interstellar team is integrating with Velo Labs under the leadership of Mike Kennedy and with ongoing support of its partner organizations, Stellar Development Foundation and Lightnet Group.
The strategic partnership between Interstellar and Velo Labs began in January 2020 but the integration brings the relationship closer, combining the two organizations’ strengths and ecosystems — Interstellar team’s expertise in blockchain and Velo’s established partnerships in Southeast Asia.
Together in the year ahead, we’ve set out a roadmap to build market-leading solutions for individuals, businesses, financial institutions, and customers. One product that will be released within this year is Velo Federated Credit Exchange (FCX).
The FCX is a unique network that allows the exchange of digital credits pegged to any fiat currency while using VELO tokens as guarantee for last settlement. This is so we can achieve true financial mobility where value can be transferred anytime and anywhere.
I see, it has been quite an exciting year for the Velo team with all the achievements and partnerships. So what is the product roadmap for Velo going forward?
Velo Labs 2021 Product and Technology roadmap will focus on:
1. Building an “Anchor” technology — to make it simple and safe for licensed financial institutions (eg. banks, MTOs, fintechs) to:
- access price-stable Velo digital credits
- manage digital credits in a safe and compliant way
- exchange digital credits against other tokenized assets
- send digital credits to authorized counterparties anywhere in the world — convert digital credits from and to any of their local currency
In order for FCX to function properly, it needs an Anchor to be its backdoor agent. Anchor technology works to re-balance and settle every transaction on Velo Federal Credit Exchange by connecting with Velo’s partners.
2. Improving the Federated Credit Exchange to enable liquidity aggregation from Decentralized Exchanges (DEX) and liquidity pools.
We are also exploring adding other sources of liquidity because liquidity aggregation is a key feature to provide the best rates to our partners, irrespective of the currency pairs and to also open up many use cases for the future.
In practice, FCX will allow businesses to exchange value faster, easier, and cheaper anytime and anywhere in the world.
3. Building tools and processes to support the compliant use of Digital credits and Velo Tokens over decentralized exchanges in a regulatory friendly way.
4. Continuing to develop the interoperability and performance of our blockchain infrastructure by bridging the most popular blockchains with Velo Protocol and the Warp protocol which allow cross-chain transfer of assets.
That’s great! And can you tell us more about Velo Federated Credit Exchange (FCX) and how it works?
Federated Credit Exchange (FCX) Network is a network powered by Velo Protocol that allows network participants to issue digital credits pegged to any stable currency, by staking VELO tokens. The digital credits serve as medium of exchange, which network participants can then use in their day-to-day business operations.
The network’s core function is built in the Velo Protocol and VELO tokens serve as the network’s universal collateral. VELO protocol transactions are confirmed by on chain smart contracts.
At the end of last year, Velo Labs’ FCX completed its 1st live transaction between Lightnet Group and SEBA Bank. SEBA Bank, HQ in Switzerland, decided to transact using Swiss Franc-pegged digital credits (vCHF) and Lightnet Group chose digital credits pegged to the USD (vUSD). Hence, it was the first transaction executed on Velo Labs FCX using a vUSD/vCHF trading pair.
How it works:
1. Both SEBA Bank and Lightnet Group each stake VELO tokens in their respective custodian account.
2. Velo Protocol issues 100 digital credits pegged to vCHF to SEBA Bank and 100 digital credits pegged to vUSD to Lightnet Group in their respective wallets.
3. SEBA Bank placed a buy order for vUSD through a vCHF/vUSD trading pair on the FCX. Lightnet Group placed a buy order for vCHF through a vCHF/vUSD trading pair on the FCX.
4. At this stage, the FCX fills each partner’s buy order.
5. To completely settle the transaction, SEBA Bank and Lightnet Group can at any time revert their vUSD and vCHF to VELO tokens — act as both a bridge asset and as the FCX’s universal collateral.
FCX plans to launch later this year.
I’m guessing with a slew of technological advancement to enlarge the scope of your services, the project is well on its way for mass adoption. So for all the users out there, where can they buy and sell VELO tokens, and which wallets can they use to store them?
VELO tokens are listed on a growing list of centralized and decentralized exchanges, including: — OKEx
- Stellar DEX
VELO tokens can technically be stored on any Stellar-compatible wallet or exchanges where they are listed.
Currently, VELO tokens are accepted by Stellar-compatible wallets like Lobstr and StellarX. A guide is available on how to set up Lobstr and its trustline.
Wow that’s very exciting to hear you’re also coming together with some of the top crypto exchanges. May I ask what is VELO token’s circulating supply and does Velo plan to release more tokens?
As of May 2021, the circulating supply is around 80 million tokens. The majority of these tokens are owned by strategic partners who have vested interests in the long-term viability of the network.
Our release plan is based on the token utility and the health of our network. As VELO token utility and the number of supported use cases increase, it is expected that Velo Labs will release more tokens.
That’s great! Now going back to the topic of mass adoption. Can you talk more about how will FCX be used in real life?
Velo Labs’ Federated Credit Exchange Network is best visualized as a distributed network with regulated entry points. Trusted Partners issue digital credits pegged to any fiat currency for use in their day-to-day operations. The settlement of these digital credits is guaranteed by VELO tokens. As such, VELO tokens serve as a bridge asset linking the values of different asset types and enable the transfer of liquidity in and out of the Federated Credit Exchange Network.
This allows partners to safely and securely transfer value between each other in a timely and transparent way and the immediate effects of Velo’s partners using Velo technology will be felt by the large population of underbanked and financially underserved. Both business and consumers will enjoy lower fees, faster transactions, and wider coverage; all without having to directly interact with Velo technology or VELO tokens.
Once launched, who are the partners Velo is looking to get onboard? And what is Velo’s vision going forward?
With FCX, we hope to onboard more partners from the legacy finance, CeFi and DeFi worlds. The ability to aggregate liquidity from these different worlds, while simultaneously providing off-chain order matching and on-chain trade settlement and clearance, positions Velo Labs’ Federated Credit Exchange Network as one of few blockchain projects with a clear path towards mass adoption.
Velo Labs will always strive to achieve true financial mobility for all. By making the transfer of value easier, faster, cheaper, and accessible by everyone anywhere.
Alright, Part 1 of today’s session is over. Thank you for your detailed responses Mr. Beam 😊 You have really helped us to learn and understand more about Velo Labs!
Now, let’s begin with Part 2 of the AMA shall we? Let’s set straight our rules now as below:
- In the next 5 minutes, we will unmute the chat so that everyone can feel free to send questions to our guest — Mr. Beam.
- Unique and quality questions have the higher chances to win ( Yes please😊 )
- Mr. Beam will answer the best questions and the 10 lucky winners will share 100 VELO prizes.
And please remember to stay until the end of today’s AMA session! We have another 100 VELO 🧧 giveaway coming at ya 😉
Alright, it’s Q&A time! 😋 Let’s hit the Unmute Button 🔘
Q: DEFI is growing too fast and the likelihood of it being interrupted is very high. What do you think about this and can you be sure that your project product will be in demand in the long term? Your Project are there any plans to contribute to DeFi’s development?
We enter into Defi 2.0 where the yield farming and liquidity pool need to come from the real world liquidity and cashflow. Velo is currently launching new products that will be CeDeFi bridge between real world liquidity/yield and DeFi 2.0 eco-system.
Q: I want to have a LONG TERM INVESTMENT with your platform, but I’m in doubts right now, how can you convince and assure me this project is Secured and PROFITABLE?
The total market potential size of digital credit issuance is nearly 100 TrillionUS$ and SE Asia is contributing significant portion of that float; imagine Velo as market leader of all digital credit issuance in and out of SE Asia and you would realize how big and profitable is this business.
Q: Is your project a local project or a global project ? Can anyone use your services from anywhere in the world? Is there any restrictions of using your service?
We intend to be global project; that’s why we go extra mile to integrate Interstellar into Velo network to build a global business that merge between best technology in silicon valley with strong business network in Asia and beyond
Q: Can you tell us some of the latest achievements made by the Your project & can you describe in details the current development efforts, such as market expansion plans, expected applications & new upcoming program of events?
Currently we launching our scalable on-chain remittance corridors between SE asia and Europe. Next step we are launching digital fiat liquidity pool and digital fiat exchange network. Imagine use Terra + Ripple for the whole SE Asia in/out to the rest of the world.
Also our sister company, Lightnet which got both MTO licenses in SG and Europe and on-ramp/off-ramp license in Thailand has currently integrated with 50 financial institutions and growing pipeline so Velo would clearly benefit from this network.
Q: Everyone knows, if you want to go fast, go alone, but if you want to go far, you go with your partners, so with Your Project which partners will promote and help Your Project reach and achieve the project’s goals?
Velo is fortunate to be backed by leading conglomerates across Asia and top tech partners such as Stellar Foundation and other big names such as VISA etc. We are building closed alliance network to grow the digital credit eco-system together.
Q: Oracles is now an area of high interest in the blockchain world with many projects working on the issue, so how will your approach be different? How do you intend to make the validated data feeds to be cost effective so as to help drive real usage?
We are working with some big name oracles such as chainlink to crack big issues in F/X oracles as well as new concept such as proof of reserve. In the coming months you will hear more developments on this.
Q: While you build your project, do you take into account community feedbacks and demands?
Yes for sure; this is all about building the next generation decentralized financial network so everyone’s voice is important.
Q:Security is the most important thing to consider want starting up a project, how secured is this project for users and investors?
We are using the best IT security and security audit companies. Because our system used by big Banks and financial institutions, we are implementing the highest standard on IT security to our network.
Q: In the bad situation of the Covid-19 epidemic, every industry was heavily affected. Does it affect the growth of your project team and it’s?
Covid-19 drives greater digital payment adoption so more work for Velo.
Q: I like that this project is placing importance on the community aspect. That’s what I think is missing in a lot of projects. How can our early investors really help you grow before launch? From providing liquidity to general participation, what are the different roles it plays?
In a few months we will get our community members and smaller liquidity providers to be more active in providing liquidity to our eco-system.
Q: NFT and Defi are one of the trending trends in the crypto market and they are effectively expanding with many new projects coming up in the field. What do you think about the development of NFT and Defi? Which area are you focusing on at the moment? (DeFi, Stake,Dapps..) and what is your goals in this year ?
NFT will evolved beyond just collectable NFT but more implication on new products such as financial NFT and we will see DeFi 2.0 which build on concept of CeDeFi toward end of 2021.
Q: DEFI is growing too fast and the likelihood of it being interrupted is very highWhat do you think about this and can you be sure that your project product will be in demand in the long term? Your Project are there any plans to contribute to DeFi’s development?
Liquidity pool and yield farming will ultimate have to rely on actual business cashflow and intersection with real world liquidity is inevitable. Velo is looking to be the early pioneer in bringing remittance liquidity and other form of traditional finance liquidity to the Defi 2.0 eco-system.
Q: STAKING is one of the STRATEGIES to ATTRACT USERS and HOLD Them and long term. Does your GREAT PROJECT have plan about to Staking?
Stay tuned for good news :)
Q: Can you list 1–2 killer features of this project that makes it ahead of its competitors? What is the competitive advantage your project has that you feel most confident about?
1. CeDeFi Ultimate liquidity aggregator
2. Seamless last mile settlement from digital credit to actual fiat
Q: What do you expect in velo coins?
We are in it for long term. We aspire to be Post-Internet medium for all kind of future financial transaction at least Se Asia region.
Q: Many people want to learn about your project but they have problem with English, so do you plan to spread awareness about your project in different countries where English is not good? Do you have a Marketing strategy aimed at developing many different communities such as Vietnam, Indonesia, Korea, Iran, … about your project so that they can easily communicate and understand Project.
Yes we will launch local marketing campaign and education program across key SE Asia countries and beyond soon.
Thank you very much Mr. Beam for answering all the questions, taking the time to be here with us and give us more insights on Velo Labs! I bet most of our members have got their answers already by now😊
I think that has been the wrap of our AMA event. Thanks Mr. Beam and everyone for joining me today. I’m sure our users here have learned a lot and look forward to seeing the future of Velo Labs!
Thank you very much and it is really an honour to be able to share about the information relating to Velo to everyone here!