AMA Recap Crypto Library with Formation.Fi


On 16th May 2021, Formation.Fi conducted an AMA in the Crypto Library Community. Our guest is Edmond Truong. Lots of questions as usual from the Community about Formation.Fi progress. The Formation.Fi team took part in a very interesting AMA session which included introductions, questions from twitter, and a live AMA session with the Crypto Library community. If you missed the AMA in person, read this recap for a deeper insight into Formation.Fi.

Let’s take a look at the most interesting points of our conversation.

Crypto Library Team : What is Formation.Fi? And how does it work?

Edmond (Formation.Fi) : The main core principles of Formation Fi is taking into consideration and analyzing risk. If we take a look at the current market, there are no yield farming products that successfully tackle or even address risk.However we will through our core principle of risk parity. We are taking tried and true fundamentals that have been used for 10-15 years in traditional wall street and bringing it into DeFi.

Formation's main objective is to truly end the ongoing need for yield chasing and making yield farming much more practical for the entire space and ultimately take that next step to make DeFi to the next level. 

Formation Fi is revolutionizing portfolio construction by introducing a risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks using the basic principles of the Risk Parity movement.

Crypto Library Team : What's the reason why we have to choose Formation.Fi than other project out there?

Edmond (Formation.Fi) : Currently The platforms on the market do not address any of these huge concerns of risks, everywhere you go they only talk about how much money you can make and hide the idea that you could also lose a lot. We are creating a platform where you can easily manage Through our systematic architecture that constructs a risk-adjusted portfolio that optimizes the return-to-risk ratio for each unit of risk, ultimately delivering a superior return over time.

The old method of yield farming was pick and choose every single individual lp token and yield farm individually. Stake, unstake, etc it’s just too much time

Formation: our users will own our index token which will essentially be comprised of let’s say 50-60 different yield farming strategies, with maybe 80-100 different types of Lp tokens, and across multiple chains.

We save our users the complexity which is Defi, those who weren’t able to yield farm can finally do it effectively, in addition there’s a lot of other benefits like giving access to the best strategies, no more needing to jump from different chains (fees get expensive if you’re moving smaller amounts of capital), etc.

Crypto Library Team : Could you provide some information about your Roadmap, and what are some achievements that Formation.Fi achieved so far?

Edmond (Formation.Fi) : As for the roadmap we have completed quite a bit of work. We have finished all the core basis from rebasing mechanism to index functionality of the protcol. In addition, we have officially completed all presales and gearing up for IDO. After IDO, v1 product will go live roughly 3-4 weeks later.

V1 will start with the ERC-Mainnet and BSC with dedicated custom-built bridge (by the end of Q2/early Q3).  We will then add L2 (likely to be Polygon) and HECO with custom bridges between them and connect them to the ERC-Mainnet and BSC (by the end of Q3/early Q4).

Crypto Library Team : Please tell us about $FORM token! What are the token utilities, price, distribution, and where we can buy it?

Edmond (Formation.Fi) : If you read about our Utility Token ($FORM) you will find out that it is much more than just simply a token. The FORM token will have triple utility from: 
  • 1.  FORM token entitles its holders a right to vote
  • 2. a portion of future net income generated by the protocol
  • 3. exclusive access to the secret Dark Pool’s only accessible to the members of the Formation FI ecosystem.
We truly believe that the community will love these benefits because it will allow them to have a lot of different ways of being rewarded and ultimately make money by being a part of our ecosystem.

As for where can you buy it: WE WILL BE ANNOUNCING IDO SHORTLY!

Crypto Library Team : Could you give us an insight about the strategy and the future of Formation.Fi?

Edmond (Formation.Fi) : As for marketing, we are looking for very organic growth and people that truly believe in the project to come over and have a chat. However, our main goal is to educate as many people as possible about our project and allow them to have a clear understanding of what we are building because we would love them to be apart of the journey!

I would say AMAs, we will host a lot of cool campaigns for community members to have a chance to get $FORM Tokens, etc.

BUT MORE IMPORTANTLY, on the product side: we will be launching v1 3-4 weeks after IDO and slowly rolling out new versions based on the community wants and the market needs.
Crypto Library Team : Could you about the four classes of yield growing strategies within FORM? how does each one work?Which do you think is better for new users who invest little capital? Will FORM consider adding networks which have their own blockchains like Secret Network to connect via bridges?

Edmond (Formation.Fi) : ALPHA - Cross-chain yield farming strategies with liquidity mining programs offered by leading DeFi projects to maximize APYs. Leverage: Yes / Risk: High 

BETA - Cross-chain thematic ETFs each built specifically around the core infrastructure building blocks of Web3. Leverage: No / Risk: Market Average.

GAMMA - Cross-chain stablecoin based yield generating tokens from top DeFi lending and asset management protocols designed to offer a fixed monthly income. 
Leverage: No. / Risk: Low

PARITY - Collection of cross-chain yield farming strategies weighed and optimized by risk in response to environmental changes.  Leverage: Yes. / Risk: Adjusted.

I believe it really depends on what the user is looking to achieve. If they’re looking stable income I would go for Gamma, but it really depends on the individual! As for will FORM consider adding new networks, yes we will be designing custom bridges to blockchains that we believe have good usage and TVL.

Crypto Library Team : On their website they briefly mention a debit card linked to our wallet for Q4. How would this card work? Would it be issued by you or through a commercial alliance with FormationFi?

Edmond (Formation.Fi) : As for the “F CASH debit card” in Q4, this would be essentially giving our users the ability to spend their yield. Think about being able to yield farm in the back and the yield generated could be spent in everyday life. This will most likely go through a commercial alliance.

Crypto Library Team : You point out that FormationFi tries to make an effort to be much lower, but if really their rates of 5%, how can they really lower it more? Would it really be profitable to minimize the% of fees as much as possible?

Edmond (Formation.Fi) : Yes, soo when there is a better solution rates will be going down. However, the cool part about this is once our reserve is filled up, the rest of the profits will go back to the hands of the token holders. However the rate right now, is the current market price rate which is almost unavoidable.
Crypto Library Team : Does Formation FI welcome suggestions or feedback from the community? How friendly are you to the community?

Edmond (Formation.Fi) : Yes definitely, I mean the entire goal is to be completely DAO. We take suggestions and comments from our community members and we also reward our community members as best we can! All of our events, we try to get our community very involved to feel apart of the FORMATION journey.

Crypto Library Team : FORM, the Formation token, being of the ERC20 type, is subject to the high commissions of said platform until the arrival of ETH2.0. How do you mitigate these high commissions inherent in your token?

Edmond (Formation.Fi) : Our token is actually going to be ETH and BSC, This is how we plan to combat the high gas fees.

Crypto Library Team : Yield Farming is currently a hot topic like DeFI and staking! Can you explain, did you make this project only for a short term just because of this hot topic ??? Do you have a long term plan for this project?

Edmond (Formation.Fi) : No definitely not. The team is locked up for 4 Years, and in DeFi that’s like 10 years. The foundational basis of Formation is truly built on core fundamentals of risk parity. This idea and methodology has been TRIED AND TRUE in traditionally wall street for 10-15 Years. It has successfully outperformed the best financially engineered portfolio managing strategies made.

SO the question is how can we bring this idea to DeFi. Because as DeFi continues and grows (AT THE CURRENT STAGE it is simply too hard for the average user). Consider a WALL STREET CFO trying to enter the market, He/she will first begin diversifying his treasury into BTC and then slowly he/she will be forced to come into DeFi because this is where the money is at.

As the market starts to mature, we will definitely see assets start to not follow the same trend as Bitcoin, they will start to have negative correlations to Bitcoin as a whole. However, we will also plan to synthetically create assets that will naturally have these counter correlations to ensure that when the market is going down your portfolio is risk adjusted and optimized.


Crypto Library Team : Many new good projects are available in the market. How important do you think the community is for the success of your project and $FORM?

Edmond (Formation.Fi) : We believe community is everything. Which is why we are doing everything in our power to make sure distribution is well executed and we have locked all our investor for 1 year and no large amount of tokens will be released on TGE for them. This will put back the power in the community hands and give them all the opportunity.

Crypto Library Team : For your marketing, will $Form token also engage influencers to participate in promoting your project? so that it can be easily recognized by the wider community?

Edmond (Formation.Fi) : Yes definitely, If there are any influencers that LOVE formation and we see chances to do collaboration work. We will definitely work together and spread the name of FORMATION FI.