We’d like to say massive thanks to all of you who joined the AllianceBlock > BonqDAO AMA on 15th December 2022 on the AllianceBlock Telegram channel.
We appreciate all your support. This is a recap of the entire session, in case you missed it!
OPENING
Rachid Ajaja | AllianceBlock
Hello everyoneeeeeeeeeeeee, huge to be here again. No Mercy AMA starting now. Thanks, everyone for being here, this is a super exciting AMA. Bonq is a project that I have been following since its inception, the team is not only awesome but also very capable given their track record. I want to thank you guys from BonqDAO for taking the time for this unique AMA.
INTRODUCTION
Rachid Ajaja | AllianceBlock
Let s start with an introduction from Michal Bacia, Micha Roon, and Delia Sabau.
Q: What is your background? How your Crypto Journey Started? And from where Bonq Idea was born?
Delia Sabau │BonqDAO
Thank you, Rachid. Really excited to be here today with all of you when we launch Bonq.
Micha Roon │BonqDAO
Thank you, Rachid for having us. My interest in crypto started in 2015 when I discovered Ethereum. I started learning about the stuff and moved to be a full-time smart contract dev in 2016. After 3 years of engineering management, I became the CTO of EWF and that is where the idea for Bonq emerged.
Rachid Ajaja | AllianceBlock
Oh wow, you are an OG :)
Michal Bacia│BonqDAO
Hi Rachid! Great to be here! We’re very excited to finally be launching today. I’m an economist with a degree in Managerial Economics and I’ve been practicing token economics hands-on since 2017, I've worked with enterprises such as Kudelski Security and Lufthansa, in addition to many crypto projects including Energy Web. I'm a token economics mentor for Brinc and Hypernest web3 startups.
And now I’m a co-founder of BonqDAO and the Chief Economist.
Micha Roon │BonqDAO
It is when I reconnected with @realMichalBacia, with whom I had worked in 2018 that the discussion about a multi-collateral stable coin started. And after some time it appeared that we could not leave that idea alone and had to start our own project. It took 18 months for the idea to launch. We're writing history today!
Delia Sabau │BonqDAO
Just a quick intro on myself. After spending 2 decades in the traditional finance world, starting in banking, and consumer credit risk, then moving to investment management working for Blackrock, and most recently for a global hedge fund, I decided to join the Bonq’s founders to build a self-sovereign financial ecosystem. My interest in crypto started in 2018 when I started getting involved in a few blockchain projects mainly on the trading and investment sides.
I couldn’t be more proud of how it all came together in the end. Today we reached a huge milestone and I want to thank everyone who supported us, believed in us, and provided feedback during the last year.
Michal Bacia│BonqDAO
Micha Roon and I realized that many crypto projects struggle with liquidity for their native tokens and there are crypto holders who can’t find low-risk, sustainable yield strategies. This is how the Bonq liquidity protocol was born!
Rachid Ajaja | AllianceBlock
Excellent, I can see the synergies with your experiences.
Micha, you are the tech guru with huge architecture design and blockchain experience with a lot of experience in different blockchain tech. Michal, you are the economist expert with deep knowledge of the token economy and this is much needed in the space. Delia you are the Quant and the financial expert with deep experience.
I would call you the three Musketeers, as the synergies are perfect to be able to build the perfect protocol that has a unique USP and value proposition so now as you know Bonq is the second project leveraging Fundrs so this AMA is very special to us, but also because of the value that Bonq will bring to the space as a whole which we will touch upon later in this AMA.
QUESTIONS
Q1: So everyone asking the same question, What is Bonq?
Delia Sabau │BonqDAO
In a nutshell, Bonq is a liquidity platform that allows users to borrow against their own tokens and allows protocols to diversify their treasuries and create deep, protocol-owned liquidity for their tokens at zero interest.
At its core, Bonq offers over-collateralized lending with a 0% interest rate. It accepts whitelisted collateral and issues BEUR which is a stablecoins paged to EURO.
What it does, is Bonq opens up the debt market to a wide variety of DeFi protocols and their communities not only the blue chip ones.
Rachid Ajaja | AllianceBlock
This is super interesting, this brings me to another question.
Q2: There are multiple lending protocols in the DeFi space, the most known are AAVE, Compound, Liquity, Convex, and much more, how would you compare with them, and what would be your competitive advantage?
Delia Sabau │BonqDAO
Besides 0% lending, Bonq’s true power comes from unique features such as automated bots, automated liquidation, and a responsible Risk Management system that we just implemented. In our view, the risk model is going to be the backbone of Bonq’s long-term success. Because it would allow us to be different from all the other lending protocols and accept a wide range of collateral assets without adding stress to the overall lending protocol. Keep in mind that Whitelisted tokens on the Bonq platform could affect the protocol and its stable coin BEUR at its core so it is crucial to building a robust and systematic risk model.
Rachid Ajaja | AllianceBlock
Something you said speaks a lot to me, Risk Management, most people lose money because of the lack of risk management, and this is something that is lacking in the DeFi space.
Now Delia you are speaking to my heart, quantitative DeFi risk management is the future!
Michal Bacia│BonqDAO
Unlike the other lending platforms, Bonq provides self-sovereign liquidity. This means that users don’t need to borrow external capital from any 3rd party and pay recurring interest. Bonq helps them access the liquidity of their own assets, in a non-custodian, permission-less way. Bonq uses BEUR, our native, over-collateralized stable coin backed by on-chain assets.
Rachid Ajaja | AllianceBlock
This is awesome, I can see the benefit for AllianceBlock first and also to all other crypto projects but also protocol, and be able to manage well their treasuries without having to put their token in the market, this is a really YUGE!
Q3: You spoke about BEUR (Delia and Michal), Is BEUR just another algorithmic stable coin and subject to the same risks as Luna and another algorithmic stable coin? I know the community has been asking this and I would love to know a bit more about BEUR, how it work and why it stand out from anything that existed until now?
Michal Bacia│BonqDAO
Let me explain more:
Most importantly: BEUR’s value is anchored *outside* the Bonq protocol, so BNQ (our utility token) can’t be used as collateral. There’s always more collateral backing BEUR in the troves than there is BEUR in circulation.
Delia Sabau │BonqDAO
And we have automated liquidations so most of the systematic risk is reduced!
Rachid Ajaja | AllianceBlock
This is super interesting. So this brings me to something geekier.
Q4: How would you compute the over-collateralization ratio in a way that includes proper risk management and prevent the users from being liquidated?
Michal Bacia│BonqDAO
Bonq protocol is completely non-custodial, we don’t have a treasury, so there’s no risk of running out of any treasury that is supposed to keep the peg.
Micha Roon │BonqDAO
The price of the collateral is provided by an oracle, Chainlink for USDC, or Tellor for ALBT. We can't influence that the collateralization ratio is Price in EUR * Collateral / BEUR. If you deposit 1000 USDC worth 0.9 EUR = 900 EUR of collateral and you have 450 BEUR of debt. The TCR (Trove Collateralisation Ratio) is 200%.
Rachid Ajaja | AllianceBlock
This is unique as I haven’t seen it in the market, and lately, I saw this super interesting article where a trader found a way to attack lending protocol in a super smart way.This incurred loss to AAVE which had to use its treasury to pay it back given what you said I do believe that you are not subject to the same attack, which for me is easy to prevent with proper risk management.
The cool thing about this is that anyone is able to understand how it works, and I do believe this is important.
I have another geeky question for you guys.
Q5: The future in my opinion in the lending protocols is to be able to dynamically compute and adjust the over-collateralization ratio given the market condition, I know that no one in the market is doing this, is this something that its in your roadmap?
Michal Bacia│BonqDAO
In our UI, this is where you can find the collateral ratio for your trove for each token.
**Micha Roon │BonqDAO
**Yes, we even gave the bot a name: Owen the accountant. This will be implemented in a smart contract in V2 of the Bonq protocol, which will include automation. A note about that is that the fees paid for automation will also be paid to the BNQ stakers.
**Delia Sabau │BonqDAO
**We posted this blog this morning talking about the BEUR stability price.
Rachid Ajaja | AllianceBlock
I read this blog and it s very detailed, I advise all of our community to take a few minutes and go through it!
Rachid Ajaja | AllianceBlock
This is yuuuuuuge over-collateralization ratio, nice.
Q6: That s really awesome, and actually this perfect transition to the utility of BNQ token. Can you say something about this?
Michal Bacia│BonqDAO
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BNQ is needed for whitelisting new tokens as collateral
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BNQ stakers receive all the fees from the protocol
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The fees are paid to BNQ stakes as cash backs, not “dividends”, so stakers need to use the platform to benefit from the fees
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Cashbacks can be used to repay your BEUR debt in your trove
**
Rachid Ajaja | AllianceBlock
**This is the virtuous circle, I really like what I am reading.
If I understand correctly:
-
I put collateral
-
I receive BEUR
-
I pay a 0% interest rate
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I receive BNQ as cashback
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I stake BNQ that can be used to repay BEUR
Is this correct Micha Bacia?
Michal Bacia│BonqDAO
Almost 😉 Here are the steps:
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I put collateral
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I receive BEUR
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I pay a 0% interest rate
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I earn BNQ on Funders by providing liquidity and later I can buy some on a DEX
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I stake BNQ that can be used to repay BEUR
Rachid Ajaja | AllianceBlock
Bonq chakalaka.
So Let’s speak now about Fundrs Campaign. BonqDAO is the second project on Fundrs, however, it is unique because there is no fundraising but everything will be done through Liquidity Mining which you call #selfsovereignliquidity that is given equal chance to anyone to be able to receive BNQ.
Q7: Could you please tell us a bit more about this campaign? How does it work? And why people should participate?
**Michal Bacia│BonqDAO
**Yes, we don’t want to sell BNQ at launch to anyone. We want people to be able to learn how to use Bonq, learn how they can earn sustainable yields, and earn some BNQ in the process
**Micha Roon │BonqDAO
**We set up the liquidity pools on Uniswap V3 and use Arrakis to get an LP token for Uniswap V3 positions. In order to provide liquidity, you need to mint yourself some BEUR and provide the USDC or DAI counterpart. The risk of impermanent loss is minimized
**Rachid Ajaja | AllianceBlock
**Actually, this brings me to a community question…
Q8: For the campaigns, we need BEUR. And we can mint BEUR by depositing your assets in a trove on Bonq. Can you please clarify how to do that? And when will we be able to do it?”
**Micha Roon │BonqDAO
**You can access the app at https://app.bonqdao.com to get started. You can find more info here https://t.me/bonqannouncement/40
**Michal Bacia│BonqDAO
**The pools are already deployed on Polygon and today at 5 pm CET Bonq DeFi Terminal will be live, so that users can deposit their USDC/BEUR and DIA/BEUR
Rachid Ajaja | AllianceBlock
Oh awesome, I really love the UI super cool and easy to understand, and I see it s public now, wouhouuuuuu defiterm 👀, hugeeeee.
For everyone, we are really proud that rALBT will be used outside Fundrs, and this shows the importance of rALBT in our global ecosystem and how everything is connected.
**Michal Bacia│BonqDAO
**!!!Important info for all #Fundrs!!! Please remember to bridge your rALBT from Ethereum or Avalanche to Polygon using the Fundrs app.
Q9: I have one last question for you Delia, what is happening next? Do you have any nuggets to share with our community / PS: we luuuuuuveeeee nuggets…
Delia Sabau │BonqDAO
Rachid Ajaja | AllianceBlock
Excellent!
Q10: I saw a few pools have been created through Arrakis for Uniswap v3 on Polygon, can you share more about this?
**Delia Sabau │BonqDAO
**Q4/22 is almost over and we will be live today. However, 2023 will be a busy year launching our premium bots and v2 risk management contracts. Sudden changes in the Market Risk Score trigger changes in risk parameters for individual tokens such as MCR and Borrowing Capacity. We will implement decentralized governance, go multi-chain and create an RWA framework.
Rachid Ajaja | AllianceBlock
That s awesome, thanks Delia.
**Micha Roon │BonqDAO
**Here are the Arrakis addresses and the related Uniswap V3 Pools:
symbol: "USDC"
token: "0x2791Bca1f2de4661ED88A30C99A7a9449Aa84174",
unipool: "0x0066ead4772591b62dC72929AEF13F7DDE1B4374",
arrakis: "0x388E289A1705fa7b8808AB13f0e0f865E2Ff94eE",
symbol: "DAI"
token: "0x8f3Cf7ad23Cd3CaDbD9735AFf958023239c6A063",
unipool: "0x0792130d3c17c58B6320a4aeb70DF8b5eE559ECc",
arrakis: "0xA1Dd21527c76BB1A3b667149e741A8B0f445FaE2",
symbol: "wETH"
token: "0x7ceB23fD6bC0adD59E62ac25578270cFf1b9f619",
unipool: "0xb14900b0eE6E50dD535e02Ac2195c37690407a15",
arrakis: "0x8B8533471920231Acca16104a0c81fA50D8C9a53",
symbol: "wMATIC"
token: "0x0d500B1d8E8eF31E21C99d1Db9A6444d3ADf1270",
unipool: "0x4f5f469781cE3A294EE22759B0c4822F0C6178A1",
arrakis: "0xF006abD9f9874712b76a4c5E43bc7e5030817982",
symbol: "wALBT"
token: "0x35b2ECE5B1eD6a7a99b83508F8ceEAB8661E0632",
unipool: "0x559Bd861FAEB53605bfF0FEe54500f07912c31cB",
arrakis: "0x3ae7b5b0A44157a6092b676537B1e7d829577e39",
Rachid Ajaja | AllianceBlock
Awesome, and happy to say that we gave created our pool WALBT BEUR which is already live.
Q11: So how our community can learn more about you guys and BonqDAO? Can you share all the links?
**Michal Bacia│BonqDAO
**The step-by-step guide to using Bonq is here
**Micha Roon │BonqDAO
**You can find out more about me and follow me on social media.
LinkedIn and Twitter
**Michal Bacia│BonqDAO
**You can find me here
LinkedIn and Twitter
**Delia Sabau │BonqDAO
**More about me here
LinkedIn and Twitter
**Michal Bacia│BonqDAO
**This is our website
Our Discord
Our telegram
Our Twitter
Rachid Ajaja | AllianceBlock
The 1 hour I haven’t even felt it, this was a huge AMA thank you very much for all the valuable information that you have shared with us.
For all our community I am sure you have a lot of questions, please join https://t.me/Bonqch and ask all your questions, the team will move there and answer you guys.
Thanks, everyone for being here, I really enjoyed this AMA!
**Michal Bacia│BonqDAO
**Thanks, Rachid for having us here and for all your support on our journey so far!
**Delia Sabau │BonqDAO
**Thanks, Rachid.
Official links to BonqDAO resources:
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