The Starfleet X Konomi Network AMA Session
On 12 March 2021, General Pandora conducted an AMA with Irene Zhao, CMO of KONOMI Network. Here’s a quick recap of the conversation that happened!
Q1 by Malekcap:
What problem you are trying to solve with Konomi and how will you do it?
Irene:
Traditional financial sectors such as the US securities market have experienced tremendous unstability due to COVID-19, the quantitative monetary easing policy of the US government as well as the US government elections. As a result, A large number of SMEs faced business setbacks as they were unable to obtain loans from traditional financial enterprises due to various reasons like the erosion of collateral values. Such phenomenon has triggered the concern of investors and entrepreneurs about the future viability of traditional financial models in the modern world context.In the near future, Polkadot Ecosystem will establish a complete decentralised Web 3.0, providing all users with absolute autonomy and control. In other words, each user will be free from the influence of all central authority and will have full control of their identity and data management.
In order to make sure that all users are well-protected, Konomi innovatively adopts the method of combining mathematical modelling and empirical evidence of economic theories, adding reconciliation variables supported by empirical data to the mathematical model, becoming the pioneer in the industry to integrate theory and empirical evidence. Further, it also provides a new resolution in dealing with “black swan” events which can be prominent in the blockchain industry.
Q2 by bosscryptocurrency:
Can you explain in detail regarding the KONOMI Collateral and Liquidation Model?
Irene:
The Konomi liquidation model has undergone rigorous mathematical derivation and empirical testing of historical data. The team has conducted an empirical analysis of economics using years of high frequency historical data from the three major Exchanges, namely Binance, Huobi and OKEX. Taking into consideration the periodicity of cryptocurrency prices and “Black Swan” events, we have reached a conclusion that proves to be in line with the team’s initial expectations. With strong research ability and constant testing, we can safely say that the model is able to protect the legitimate rights of traders in both lending and borrowing even under extreme circumstances.If you are keen to learn more, we have documented the model here: https://medium.com/konomi/in-depth-analysis-of-konomi-collateral-and-liquidation-model-e81fb885f8bb
Q3 by Masaki8333:
Could you tell us in detail how the Cross Chain Messaging Passing (XCMP) feature that Konomi Network will use?
Irene:
Konomi will use the Cross-Chain Messaging Passing (XCMP) feature to support cross-chain transactions of assets. XCMP requires a channel open between two parachains for message communication.In the sender parachain, messages will be dispatched and sent to the relay chains. Destination and timestamps will be included in the message so that it could be identified. The collator node on the receiving parachain will pick up this message since it would be constantly asking the network for new messages. If the validation is successfully done by the validators on the network, it would compress the block proposal as a hash and replace it onto the relay chain, such that the message between parachains are completed.
If you are interested to find out more, please refer to our medium article: https://medium.com/acalanetwork/the-first-successful-cross-chain-messaging-passing-xcmp-transaction-on-polkadot-testnet-eb36af2ad8c3
[WINNING QUESTION] Q4 by bw_man:
What is the Konomi team’s vision of the direction in which the platform operates? With the latest sponsorship from the Web 3 Foundation, what is your strategy for developing partners and calling for future investment?
Irene:
The vision of Konomi at the beginning of its establishment was to enable financial applications on Ethereum to seamlessly connect to the Polkadot ecosystem, and to provide the users with a complete asset management experience from liquidity protocols, to lending market, as well as the management of ecosystem assets.Our strategy for partnership: we would like to work with projects that can help us to fullfill our vision. We work with Tidal to enhance our security and paralink for oracle and real world access solution. bZx will help us with cross chain liquidity. Darwinia helps us with bridge to other public chain. Please stay tuned for our upcoming partnerships, we wil work with project that enhance our nodes and protect our users privacy.
Q5 by cryptopanter1:
Konomi network token could be staked to participate in the base layer consensus and earn system rewards. Please tell me what is the system of these rewards and how will they be distributed?
Irene:
The design and implementation of the protocol would be determined by token holders. For parameters like pool staking fees, transaction fee burn, liquidity mining ratio, are initially set by the protocol itself; token holders could update the numbers and the smart contract itself based on the voting process. In order to encourage users to participate in the process, there could be some profit set to reward the voting participants.
Bw_Man walked away with 1x Whitelist for Konomi Network’s IDO token sales on @polkastarter that day! The rest of the Crew also received tokens of appreciation for their participation.
We will be conducting more AMA on The Starfleet in future. Stay tuned!
