AMA Recap Crypto Library with PolyTrade


On 4th June 2021, PolyTrade conducted an AMA in the Crypto Library Community. Our guest is Arul Prakash and Piyush Gupta. Lots of questions as usual from the Community about PolyTrade progress. The PolyTrade 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 PolyTrade.

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

Crypto Library Team : So, before we start the AMA could you please introduce yourself to our community?

Arul Prakash (PolyTrade) : Arul Prakash here, as the COO of Polytrade. I have more than 15 years of experience working with Fortune 10 companies in my recent past and heading product development & business transformation functions for many of my clients. Worked with companies like Walmart, CVS, Accenture and the TATA group extensively. Have been in the crypto space for the last 4 years and waiting for the opportunity to bring real world to Cryptosphere. MBA & engg by education.

Piyush Gupta (PolyTrade) : Its great to e-meet you all today. I've been with the Trade finance industry for the last 15 years with experience in organizations like Societe Generale, Kitara Corp, AmiCorp and few other big names. I setup my own trade finance business back in 2014 and since then have expanded operations to Hong Kong, Singapore, India and Dubai. Am currently based out of Dubai. At Riqueza Capital we have processed invoices worth more than 500mn USD in the last few years, all of which we are confident will move to POLYTRADE. Am an Aerospace Engineering  from IIT Bombay by education. 

We have been working with Trade finance for last few years and definitely have an inside view of the challenges that this space had. The advent of blockchain opened up good possibilities for removing many of those challenges. As we were thinking about solving it for the last few years, finally we have the right guidance and inputs to actually convert and make it happen. Polytrade is that aspiration of removing all the friction in the conventional trade finance space.
Crypto Library Team : What is Polytrade? and how does it work?

Piyush Gupta (PolyTrade) : Let me tell a bit about Trade Finance Industry to begin with. The overall size of this industry is above 7 trillion USD. while it includes multiple elements one of they and the core pieces of it is Receivables financing. With Invoice Financing and Invoice factoring being two methods of how receivable financing works, the process kicks in when a supplier/manufacturer supplies to a buyer. Typically there is a duration called as Credit period. this is the duration after which the Supplier actually gets paid by the Buyer - Which means if the Buyer receives the goods today, he will only be making the payment 60 days later to the supplier. This locks up critical capital that the supplier needs to pay his suppliers, employees, maintenance etc. So in this case, TIME is literally money. 

The borrower approaches lending and financing companies today for this working capital so he can pay his expenses. POLYTRADE intends to provide this much required capital to suppliers at an industry competitive fee structure. We will seek funds from crypto native investors to use our platform to lend us stable coins. These stable coins are then converted to fiat or otherwise, and given to the suppliers, who then become our borrowers. So instead of waiting for the entire duration of the credit period, the supplier immediately gets access to the cash for his expenses. 

The responsibility of collecting the money now has been moved to Polytrade from the Supplier. Now the BUYER, has a liability to pay POLYTRADE. Once payment is received the cycle is complete. The motive of POLYTRADE is to BLOCKCHAIN enable this and improve various facets of Invoice factoring works.

Crypto Library Team : Could you give us some reason why we have to choose Polytrade than other projects out there?

Piyush Gupta (PolyTrade) : Polytrade has a very organic approach to tackling the century old trade financing market. We do not want to bite more than we can chew. We do not intend to make a business model which is dependent on our partners and customers knowing Crypto. While all our underlying transactions will be logged on blockchain and executed via smart contracts, the user will require near-zero knowledge of crypto. We will become the ramp via which he gets exposed to crypto.

So our platform is going to be easy for on-crypto users at the same time bring in the various benefits of smart contracts and decentralised platforms, by making it quicker and "cheaper" to actually complete the whole process. Our Investors and lenders will get exposure to a conventional real world asset which is not available to them otherwise.

Crypto Library Team : Please tell us about Polytrade native token $TRADE! What are the token use-case, distribution, and where we can buy it?

Arul Prakash (PolyTrade) : $TRADE is going to be the oil that will move this centuries old industry and the processes at Polytrade. Some of the benefits it will provide in the network are:
  • Governance: Allows validated holders to influence protocols decisions.
  • Staking Rewards: Stake $TRADE to get rewarded
  • Borrowers: Receive reduced interest rates for staked and payment done via TRADE tokens.
  • Buyers: Receive discounts on invoices for settlements done on the Polytrade platform.
  • Service Providers: Receive TRADE for participating in the trade finance economy by performing key tasks of KYC, document validation, credit evaluation, and more (Phase 2)"
We will be having a total supply of 100 million tokens. We are performing certain final tweak to our model to ensure Polytrade gets the right visibility and benefits to our community. Our new tokenomics will soon be published before the IDO.

Crypto Library Team : Could you give us some information about your roadmap, your recent progress, and also your future plans?

Arul Prakash (PolyTrade) : Majority of our focus until now has been around product development and investor onboarding. Wrt product development we are working towards designing and developing the various portals that the product will have. We are also focussed on building our teams to cater to all the requirements that we have. And on investor onboarding sharing our vision with the industry leaders and proving them our ability to ensure this becomes a reality has been a major task, but a great eye opener to achieve. We have some of the best investors in this space and they are providing invaluable guidance to us in how to ramp up from where we are. On borrower side, there has been a lot of discussion with our existing customers, warming them upto Polytrade and the various benefits that will be offered to them. They are way more excited about it than us. Our immediate timeline includes. an updated whitepaper, updated roadmap, updated website, IDO announcement. post IDO our entire focus will shift towards product development which should see a MVP launched in the mainnet within the next 2 quarters. We intend to partner with downstream and upstream businesses within the trade finance area to ensure we become an all -encompassing layer for trade finance.  

Our other key focus area is going to be security and safety. We are getting our contracts certified currently and will be periodically doing so with industry leaders in this space. We also will be working with our insurance providers who will also be providing the additional safety for our investors and lenders.
Crypto Library Team : In which jurisdictions can Polytrade services be used? Will it be a local project or an international project? and are there any local communities banned or restricted from contributing to the project? 

Piyush Gupta (PolyTrade) : Polytrade will be an international project for sure. Majority of the Trade financing industry caters to international cross border transactions. Our platform will be open for in-country transactions as well, keeping the decentralized nature in mind. Trade Finance also being centuries old industry follows certain internal regulations and trade practices. Polytrade will have to follow the same guidelines, so usual restrictions around sanctioned countries and sanctioned products will be restricted for our Borrowers. But in case of Lenders, the platform will be KYC free just as most Lender portals such AAVE or COMPOUND. So anyone can participate.

Crypto Library Team : Your project is very interesting but it needs a large user traffic to be sustainable over time. What marketing strategies do you have planned to increase the validity of your brand? Are you planning a strategic partnership to level up your project?

Arul Prakash (PolyTrade) : We are not a conventional technical project, which only involves platform development and launch. There are a huge number of interactions required with on-ground teams and partners - such as KYC verifiers, Credit checkers, banks etc. While the lending market which is crypto-world focussed will be driven by digital marketing practices we are already aware of, the borrower market will require separate focus and coordination with leading media houses in Trade Finance industry. So we intend to have Marketing teams - one focused on Crypto and another with Trade Finance industry. WE will be looking for multiple partnerships as well to enable this across downstream and upstream processes.

Crypto Library Team : What is the ultimate vision that Your project is trying to achieve within the cryptocurrencies market? Obviously the whole space will experience huge growth in the upcoming years, but what role would you like Your project play in this?

Piyush Gupta (PolyTrade) : We want to remove this barrier of Defi, Crypto and Real world and unify it all. 10-15 years in future there will not be a Defi space or conventional banking phase, they will merge and evolve to bring best of both worlds. In same way we want Trade Finance to get the massive benefits of Decentralisation and crypto world liquidity. We want Crypto-world to get exposed to age old investment vehicles such as invoice financing, which has been outside the reach of regular folks until now, guarded with moats by the banking and lending industry.

Crypto Library Team : As education for crypto currency is necessary nowadays, what’s your plan to to attract those people who don’t know about cryptocurrency? If anybody thinks your project really likes a scam project, and they can’t trust this project. how do you make them believe in your project?

Piyush Gupta (PolyTrade) : You can check our profiles and would love to meet you all. We are not anonymous and our experience in trade finance, blockchain technology and business management  with nature of background we come from itself is proof that we are not here for the short haul. Our team is made up of premier Engg and MBA grads and with rich professional experience, which you can verify. So as a team, we are not going to vanish into thin air! Now about the project - Trust me when I say this, all our investors, you can check the name on our site, have done a rigorous evaluation of our business model, experience and feasibility of us being able to pull this off. There will be competitors with similar or different model catering to this industry and our approach to our competitors is very simple, in simple ways same as CZ. This space is nascent and new, the unaddressed market alone is in trillions. so we welcome our brothers from competing entities to come to crypto space and build the bridges between the real world and crypto world to benefit one and all.

Crypto Library Team : Polytrade brings insurance backed real world assets to the crypto, what organization is in charge of the insurance, is it audited?

Piyush Gupta (PolyTrade) : There will be two layers of security and protection provided. 
  1. Code exploits & Hacks - Insurance from Crypto insurance companies against any hacks and exploits.
  2. Credit insurance - Unlike any other DEfi project I can confidetly say that our underlying business itself is insured. So the chances of losing out money are taken away completely for our investors.
For Crypto insurance we are looking at Nexus Mutual and for credit insurance we have already been working with Euler Hermes. Euler is century old traditional credit insurance business. Both of these companies are well established known names in their own space.

On top of this code audits also be certified by industry leaders.
Crypto Library Team : What's been the most challenging hurdles or obstacles that Polytrade has had to face this year? How badly has the Covid-19 pandemic been for You and your team?

Piyush Gupta (PolyTrade) : Covid 19 has been bad for many businesses worldwide. However due to our deep expertise of trade finance and digital presence, we were able to do much better job in providing funds to corporate. It has been a great 1 year for our business.

Crypto Library Team : In many cases of cryptos, some of which is very difficult for the project to turn a profit. Some projects have a debt share of 10% (10% of the transaction fee received from the project), how do you explain to us, whether our project can generate profits?   

Arul Prakash (PolyTrade) : We have been doing the real world business for invoice financing for last 5-6 years. This is not new for us. What is new is engaging with such awesome communitites. Also the whole aspect of merging decentralization with such century old old business is challenging. Our pricing are dynamic and are going to be market relaities driven. Based on how our competitors are pricing their offerings.  Our pricing model will include the reuired profits for the project to be a success.

Crypto Library Team : When did the creative idea of ​​the project originate? who started it? is this going to be a long-term project and what are your goals for the next 10 years?

Piyush Gupta (PolyTrade) : We always knew that to simplify this process of trade finance, technology  would play a critical role. Thanks to DEFI boom since last year, we were able to bring our ideas to reality. So all in all, we wish to be the best and the largest trade finance fund globally in next few years.

Crypto Library Team : Is your project easy to understand for NEW users? and does your project have a manual for users and according to you what ROLE does community play in your project?

Arul Prakash (PolyTrade) : Unlike other crypto projects, non-crypto users are super critical for us. All our Buyer and supplier community are not cryptosavvy. In fact as part of our marketing plans, we intend to have 2 heads - one looking at Crypto-Marketing and another in the conventional non-crypto space. Our goal clearly is to build the bridges between these two spaces, without which POlytrade will not be able to function effectively. By doing this we intend to become ramps for non-crypto folks into crypto world, this building our whole community. You always remember the first exchange you bought your crypto from, we intend to be part of those memories with our trade finance community providing them the ramps for Crypto. So yes, we are actually in process of building the user manuals for our users to make it super easy!

Crypto Library Team : What does the Polytrade project mean? What is your desire when choosing a name for this project?

Piyush Gupta (PolyTrade) : Polytrade is the 1st flagship project on Polygon and that's the reason we chose this name. Polytrade will be bridging the trade finance gap that  exists globally.