Alejandro Gutierrez on DeFactor's real world asset liquidity

0:24defactor and the real world assets and providing liquidity driving defy into the real world it's a really interesting initiative that your team is working on i would love for you to kick it off for us with just a high level overview of d factor and then we can dive into the details definitely so the factor was conceptualized right as an easy-to-use platform that would

0:52allow us orientators of real-world as originators to tap into the defy world and provide all the tools and services and that normal company normal financial company and will require to keep operating or keep transacting the way that they are already used to it right as you know work out the five space is fairly new and there are a lot of and

1:22components that need to be improved from there from the usability point of view and from the from the operational point of view in order to scale they used to defy into the real world and that's exactly what we are focusing in the factory definitely and i think that's a great initiative and there's so many different real world assets that you could be

1:44Introducing and putting in decentralized finance integrating into the digital world which is really exciting maybe you can drill down a little deeper and more specific on where your team is starting and what were some of the problems that you saw with these real world assets that you were looking to solve with the d5 solutions correct so and i think i think it would

2:07be good to or provide the audience with we understand that we have been in this space for the last 18 months we have been one of the first companies notifactor per se but console freight that is the first originator that would be integrated into the factor and so we have been the longest us originator standing for centrifuge yeah we have been

2:34there yeah we started like almost a year ago with them after funded more than five million dollars in real world assets and funded around 450 different assets in this in this tenure so with our experience in console freight rather saying look this is fantastic and is a real opportunity to find an alternative source of liquidity right it's not just going to

3:02banks and traditional institutions like that this is actually something that we can use to create alternatives for smes i'm not even annoying but companies that kind of find a traditional finding financing sorry so when we're starting using this process i see like a look definitely is there is an opportunity here but in order to

3:29scale this and make it happen there is a huge gap right another saying that we need to just start bridging that gap how tools like for example if you are a traditional financial company the fact that you're going to be transacting in crypto but you need to use provide fiat to your to your customers so like that unwrapping on ramp off ramp

3:54is serious if you are not used to manage wallets and so on you need to exchange then there's going to be components on the on the accountability side as well that if you are not or you have not been involved with it's going to be just tricky just to plug it into into your into your traditional operations right so that's that's kind of the all we

4:20are solving also providing visibility to the investors because at the moment investors are putting money into this into the liquidity pools but they don't really have a huge idea of what are the assets that are behind they know the companies that are using the funds and how they're mitigating risk however there's no much more from the from the real assets that are

4:43there so that's that's another complaint that we're trying to help and the onboarding into liquidity pools because as a real bottleneck at the moment so going to real war assets we will we have been doing invoices like a factory invoices also we have a lot of experience in the trade finance space that is what console affair has been doing and

5:08inventory finance right so those three assets asset classes are the ones that we're going to be starting with and from there we're going to be expanding to a multiple like real estate that we are just doing some assessments on the diligence on projects and so on definitely very exciting and we were talking before about how your team

5:35is decentralized and you know this could be a global platform i'm curious is your team starting in specific jurisdictions for where the real world assets are located and does that make a difference maybe on the regulatory side in where this is best implemented first let me look from our site we are agnostic from the asset classes we definitely need to have a structure just

5:59to be able to onboard these other classes from the regulatory side as we are a middleware in a way the companies that are providing the service are they as originators no radical ourselves right however we need to just be aware of those regulations and what are the potential issues that can bring to provide these these services into other innators if they

6:25are not regulated and some sort of compliance is required from the on the from the regulatory point of view right so look we are pretty familiar with the americas europe and annually nation coming oh for example in trifana space a cargo that is coming from from china that is stopped mainly where most of the of the goods are produced in the world right

6:53definitely and for those companies that have these real world assets you mentioned you know we're trying to get them into the decentralized finance world a lot of them that are in older industries that don't have a lot of technology are completely unfamiliar with defy you mentioned you're partnering with centrifuge which a lot of people probably aren't

7:14familiar with and other liquidity pools could you talk a little bit more about you know what does that partnership mean how does that help those companies that have the real world assets you know so they have their assets and how specifically are you partnering and bringing that liquidity for them definitely so from the from the liquidity point of view as you mentioned

7:39we have a partner with centrifuge centrifuge is one of the first protocols out there or call it ecosystem the protocol is called tin lake and what they do is they have set up a whole structure that allows investors to put money into into these liquidity pools right and the azure inator what it does is just takes an asset tokenize that asset right and

8:06the asset is going to be just locked into the pool in order to be able to use that withdraw funds right all that is really set up is really well structured by by centrifuge but then the problem is when the azurinator is taking that money right and it's going to be fulfilling their operation with those funds that's when we kicked in right that's when we are developing

8:28all these different tools are going to be just developing all the all the required structure right so in the case as originators can block into that d5 pipe and also assess the risk of transactions and so on so that's kind of from there from the extraction of phones now from the sergey nato point of view look at the moment there is a huge need for

8:55financing around the world and reason behind is because traditional sources of liquidity they have been kind of put on holding away due to the pandemic right and the on the economic climate so let's go just an example for from the trade finance point of view a pre-covet there was a 1.6 trillion dollars gap

9:22meaning that people that had applied for these services and they didn't get it for x or y reason the studies are suggesting that covet and this gap is going to be between five or six trillion dollars wow which means they need right for these alternative sources of financing are going to be there and

9:51the incentive for these companies to adopt defy is going to be huge right at the end of the day most of this traditional or traditional asset as originators they need the liquidity in order to grow in order to just provide more competitive rates and so on so the incentive is there is now for us to just make it easy enough for them to be tapping into

10:18the default space totally and i was just gonna ask you about the incentives because obviously they're they're gonna need that liquidity and with that huge gap post covid that your team has analyzed obviously that's a huge incentive to drive more liquidity through the defy platforms do you see just because these companies are going to need liquidity

10:43there will be a lot of organic adoption or are you also going to be marketing into different industries to show them that these solutions exist or do you think it'll be a combination of both definitely i think it's going to be a combination of all that we are going to put a lot of effort from the marketing side and sales side because our idea is to just spread the word and

11:05You sell a traditional actors that defy is there and that advisor is a real opportunity and real solution to mitigate those issues with liquidity the for our experience will happen a lot of in the in the financial market is that the work of mild is pretty important and for example you're on boarding let's say factoring services

11:34like invoice and factory services pretty quick a lot of those guys that say where are you taking your liquidity from say like from define okay okay i get an introduction so that happens a lot right and which which is good help us as well to use that adoption and yeah we're putting a whole strategic plan in which one were educating people because we

11:59believe that part of the journeys is educating people about the fights you know there's a lot of misconceptions about the fight and there's a lot of fear in a way like i don't know or like do you guys do kyc do you guys something on laundry where is this money coming from and it's just kind of getting people look this is as structural as as as your traditional financing

12:21but the difference is there is no kind of a centralized entity there that is defining you're getting funds or not in a way so just kind of explain educating people into this whole new journey and on top of this incentive for just liquidity there's also the factor token in de facto that i'm guessing is also used within the liquidity pools and has utility

12:45within the ecosystem and i'd love for you to touch on the factor tokens utility specifically how it functions within the liquidity pools and just how does it benefit the companies that are driving defy into their real world assets definitely so from the like the pools because because they post in the beginning are going to be based outside the factory ecosystem they are

13:10going to be used as i say we're going to be used in the existing technology from from companies like my centrifuge so all those all those tables are actually on unstable coin and centrifuge cases is die and that's what the investors are using however they are from the from the fundamental use of fundamental value of the of the factor token so we have four components

13:38right one is transaction fees the second one is the staking component collateral and finally government and so i will give you a bit of fun from what they are so from the transactions fees what happens like every single last orientator are required to obtain a factor tokens too in order to access the platform right and the ascertainators will be paying proportionally

14:02based on the phones that they are using right so the more phones they are using well you have to just contribute a bit for into the platform with five for tokens so that's kind of the main source of fundamental demand right and this means that the factor token will be accruing value in the correlation to increase activity within the ecosystem right the idea

14:28behind is that this provides a circular economy that is at the end of the day the most desirable outcome for a platform like ours right then from the staking point of view so if you are not serenader but you want to be part of the platform and you want to just support the token price so what we're doing is like allowing retail investors to participate right

14:54and get some benefits when they are staking these tokens and that will allow us just as i say engage to a wider community not just as orientators from the collateral point of view so basically if the other innators are posting collateral they will be eligible to just reduce interest rates and have some more perks right because they are over collateralizing the

15:17the transactions and when the transactions are repaid the tokens will be used to actually incentivize good actors and kind of penalize actors that are not performing so you bring or you brought an asset into ecosystem that asset didn't perform well which means that maybe some of those tokens are going to be just taken away as part of the penaltization

15:41that you will be in as or you will be getting as an asset orientator all the way around you brought a good asset you went really well you're going to be just provided with some with some rewards and the governance is just fairly straight right like a whole factor tokens you will be able to environ in the situation the community provide some guidance on

16:02how you believe that the ecosystem needs to be yeah how is moving forward issue proposals voting on various factors and just provide that sense of community right to the whole ecosystem definitely thanks for that and i saw on your site that you did already have successful seed rounds so congratulations on that so far

16:29and looking forward i'd love to hear you know what is the roadmap for the next couple months in the major milestones that are needed for the token and for the whole platform yeah thank you very much for nation yeah we are in our token sale it's doing really well this reception has been fantastic so yeah we're really glad and also really thankful

16:54to everybody that has been supporting us look from the milestones right things that we need to use developing the next month so we're working really hard well one is just closing actually i worked our in like sale right we haven't finished that so that's a really important component we are working extremely hard actually defining

17:20Like like the governance piece because we believe that our community is one of the most important components and we want to use devote a lot of time and effort into it so we are just working on developing all that side the staking voting is pretty important because one of the things that are going to be just working very soon the other components

17:45that we are working is just safe analyzing integrations with centrifuge doing the first onboarding of as originators that is as we mentioned send a console freight will be that first as originator and the idea would be just to have at least two or three at the end of the year fully onboarded and fully transacting in the factory so you see like

18:10we because because we're already transacting some of these atherinas already transacting so for us is it would be easy just to start moving forward in a in a faster way in a faster manner right like a idea is just to prove that the platform is operationally present and that will as well attract people to be holding the token but at the end of

18:37the day is one of the key components out of the project definitely well best of luck with those milestones i will be watching along to see how it goes for the viewers that are looking to follow along and learn more about the staking and the ecosystem and the updates as they come out what's the best way for the viewers to get involved with the d factor community

19:00how definitely well one is our webpage defactor.com i will invite everybody just to follow us on twitter also join our channel in telegram and where we are really active and if you're a little bit more traditional i would say also you have a presence in linkedin so i would suggest people to use

19:28take a look on every single one of those platforms sounds great alejandro i will leave all of those links in the description box below as well all the best with d factor moving forward and let's follow up in the near future awesome thank you very much for inviting us really happy to be here you