JP Beaudet on algorithmically driven investing at HODLCommunity

0:22algorithmically backed financial systems and i want to dive into the details if we could just kick it off from yourself with an overview and the focus of hotel community and some of the problems that your team is solving for that would be great yeah okay in a very short it comes from my whole experience in the crypto sphere in general i've been passionate about crypto

0:44for a few years now and when i began to get interested there the icu was like in the beginning of the beginning and this is how i learned about the organization and it got me to basically identify a large problems there such a extremely good project and without doing all the return toward the story of bitcoin and why bitcoin had to be exchanged

1:10against money and the fact that bitcoin and fiat needed to be connected together created these new monster created that we call the exchanges which are very very practical but at the same time created a problem in which basically it created a new trader environment a kind of a stock market type of environmental crypto that basically encouraged

1:33speculation and the whole tokenization became extremely specific from that some project escape it better than other so to return to the essence of why adults see is the main problem that we identify for mass adoption is not necessarily the education education is making its way but it is not as necessary as people think educating to financial freedom and sovereignty is a

1:59idiotistic stance which is very good but on the practical sides of things most of the people don't really need that people need to be able to leverage their finance in a better way this is what they want in their life so the real problem that we identify in this is the speculation part of the market it is what basically refrain most of the normal

2:20everyday joe consumers to get into crypto and if they do they'll need financial advice they'll need someone experience to guide them so basically we just redone the whole broker fiat legacy world all over again and that is one of the most the core problem that although he has identified and is trying to fix and one of the good contender projects to say

2:44That we're gonna fix that problem was the stable token it was a very very good project that was coming from the lack of liquidity basically it was hard to bank or to get money so stablecoin were invented and it just became this unit of exchange that everyone wants and that basically got a little with the volatility but it's still attached to this

3:05fiat the sc world so it comes back to again just printing new digital money it didn't fix anything at the basis of it so the stance of adult is that there is a new way to consider price discovery that basically render price discovery useless in the context of a store of value and in the context of this store value serving as a mean of exchange on the normal

3:30legacy world bridging the fiat and legacy world to the people without the need for speculation and this is why we speak about algorithmic is that basically an algorithm is a logic it's a set of rules and in that case our protocol has two set of rules very simple anyone can understand it anyone can see the effect of it and these two rules being well understood creates a network of people

3:56accepting to trade within these rules and these rules will protect you from it basically it will prescribe how the price and the value of the asset should behave in time and we added to that a very very particular atom it has never been done before but adult c would not be considered as a standard token it is not transferable and that is one of the most exceptional

4:23law in there is that it is non-transferable so basically when you have auto c you can buy or you can sell it and there is no way you can choose who you're buying or you're selling to it is all managed through decentralized order book very simplistic that goes first and first out so in this way you just it or you just ungain the thing for anyone to have a

4:45chance of manipulating the price it is not worth it is not really possible the only thing that could be changed is time basically it will take more or less time for you to get your investment out once you decide to live with it so this has completely changed the game it is not the same way anymore and the one of the biggest advantage of this way to proceed apart from not losing

5:09value of course is that it is actually a fairer form of capitalism in some way because everyone that actually acts in the adolescent network whether they are acting on the decentralized network or whether they're gonna go into the project that we are releasing for general consumer republic in any case their action will have an effect for everyone at the same time there is no need

5:35for anyone to lose value for others to preserve and to gain value over time and this creates this network of confidence in which people mutually protect their value and mutually protect their wealth and freeze by continuing to take on these consumer everyday services and the way we believe we can achieve that is not with the token of course the token or the others

5:58digital asset is a lead to an end so the idea there is we are speaking about what we call the ecosystem and the ecosystem is a set of services that are intended for everyday people and general consumer service so we speak here about a free secure payment system that basically enables the merchant to get money in adults without any slippage because

6:25there is no slippage so there will not be lots of value over time the value will continue slowly to move following the protocol so it gives a reasonable predictability so anyone accepting this as a payment can as a matter of fact hold it if they wish to gain more value or can change it right away and they will not have lost value so that makes for a free payment system

6:48think about visa mastercard and all the fees around and this makes it for a off-chain set over service which can be scalable a contrary to much of the blockchain solution now would not be able to handle the type of volume we expect there and so it should give you an example we have a lot of these services and i won't go over all of them it's to give you an

7:08example that the adult see there is just a mean that enables the businesses to leverage the predictability of the asset to give to general consumer a better service for means of exchange and by by doing that it creates support for this ecosystem in which people can continue preserving more value and every time you use this payment system you're basically benefiting the whole community

7:36at the same time no need to give the nation no need to you're basically participating into a form of altruistic finance which is not about giving anything it's just about knowing that together in a network we can create more wealth preservation we can create more value we can create more traction and this becomes this generalized consensus effort to

7:59preserve wealth and this is why we believe that this can be the concept of price discovery in many many occasions it will not work in a world of equity or a world of companies we're not going there but in the world of exchange money meaning that people are exchanging value this is exactly applying because no one wants to lose value everyone wants to

8:22gain value from the consumer to the merchant to the investor in the network to lenders into our lending platform everyone wants to gain value and there is a way to make this circle of value beneficial for everyone and this is what we are speaking when we say we want to create ferric that isn't sorry for the very long answer and that was great jp you covered a lot of

8:46breadth there you touched on a lot of things like removing the speculation talked about stable coins talked about the algorithm and the platform seems like it's very unique compared to a lot of these other platforms that are in the cryptocurrency industry right now and i'm curious to learn a little bit more about the growth parameters and the rules that

9:06you were talking about and so when you as a user put funds into the hotel c platform there's a specific growth parameter that grows that and is that predicted or that can change and are you also able to withdraw the funds at any time yeah so these are very very good questions so i'll start by the way the protocol is set so there is two rules there so we named

9:33them the dynamic rule and the temp room and i'm going to explain why it's a yes and then though to your question so one of these rules is unpredictable and one of these rules is totally predictable which is important because it gives what we call reasonable predictability basically it gives you the baseline of the growth of the value but you can never predict this the first rule so the

9:56dynamic growth is based on activity activity is defined within the contract or within the understanding as a transaction or a successful transaction between two individuals so the way the order book is done is a little complex and we can dive later and more on it but you can create more than one transaction in a row because you can never know exactly the order of people

10:19offering you in the next and if let's say that you're buying ten thousand aldol and there's five in a row trade of two thousand you will actually create five transactions successfully between five different individuals so you have created five increase and this increase is a static value that is 100 of a stent a penny or if you prefer a 1 10 000 of a

10:40us dollar 0.0001 so every time a successful transaction between these two individuals happen this will create a growth in the value what happened is that every time someone will sell every time someone decides that it's okay they need to liquidate they want to liquidate then they accept at that date that the value of that specific second at that specific moment

11:06is the value of the trade they will sell and this price is locked so and it plays an important role because there's time where there's not much of this cell there's time where there's a lot of them and what will happen is that the more there is the more you're going to create a discount natural discount effect so basically the system ensures that you're always

11:26buying the lowest price then if there is none if there's nothing to sell there you're gonna buy from a resource the project initially started with the reserve all premium tokens were not distributed to anyone they were just they were distributed in the smart contract itself and has been bought and sold since then the one day the reserve there will be

11:47empty there will never be more than 40 million of these tokens out there so once that happen and there's a little seller people will create a buy order following the same exact way the second rule is based on time and is probably the easiest to understand is that every 24 hours cycle there will be a small increase for now it represents 0.19 and this will

12:09go down over time for now it gives a generous apr if you calculate that over a year very well generous but it's going down and in time over 30 years it's going to become a 5 but at that time if you see the mathematics of how the value of the asset will grow at that time so five percent will represent a significant increase but we're just not there yet so why

12:33that is because first there is a benefit for the first mover in the business side so the idea is that this community will work if we create successful businesses for everyday consumer this is our take if we don't succeed in that we don't see that we're gonna be able to do to promote this new economy so to do that we needed to create an environment that is favorable for these

12:55businesses to be at the first mover so the fire is the first five year there will be a very very cool and generous for these companies but they are also taking a significant risk to go into the crypto environment so this is how we see this and these two rules can always be seen you can calculate it on a calculator another reasonable idea but the idea is we can

13:19never know how much transaction per year there will be in time it is everyone comes up with different number we have no identification over all the business will affect this but the idea is it will always be unpredictable and this is the cool side of it so you never know how much exactly it's gonna grow but you know how much can grow at the minimum and this minima

13:42is very important because the businesses can calculate their business return over something that is reasonably predictable knowing that the margin they cannot calculate is a bonus so that's create a good environment to deal with this and so the this is a bit how we have framed this to propose a new way to deal with price discovery to a new way to say what is supposed to

14:07work was and it created a different risk and because in the cryptosphere you have a big risk you know you're to get you can lose value or your value could go to zero that's significantly bad you have bought some asset and eventually oh it goes to zero or near zero and you feel that you have lost most of you in our in our system you cannot lose value it's just right impossible

14:32but what you can lose is time so and i want to be super transparent here that there is no crypto network with no risk in the world that does not exist and what we have decided to do is to replace the risk into a matter of time making that if there will be a bottleneck of too much sellers due to event or whatever you would have a longer time to liquidate your assets

14:55but you will not lose the value from the time you decided to duplicate it and this is what in time i think is going to win the argument and the more that we're going to create these network effect by creating these projects such as hp h trust and trouble everything that we're going to release every time it will create more network effect because there will be more people

15:16using the same assets so creating more velocities so more more traction for businesses to use it so this is a cycle that we're that we're aiming at creating here definitely and you mentioned jp that the incentives for the people that are joining early on are a lot higher and there's that diminishing effect in terms of when the platform launched

15:40can you give us a snapshot of you know how early on is it right now it is very early we have been we have been trading for nearly a year it's going to be a full year in 10 days now but the idea is we have to understand that we are barely known and understood yet and we understand why because we're not we're not coming with something that people know it's not like something we

16:05can say hey let's do a staking with that much apr it's it's understood you have a network for that and stuff what we are proposing there is so new that for some people it's either too good to be true for some other people they say it cannot go because it defy price discovery and no one has ever done that so there's many reasons to have doubt and this takes some time in this

16:26case so i'll say that we're very early we got from well a thousand of a cents to 2.80 but 2.80 is quite nothing there it's not we have we have had good transaction we have a volume that goes like 50 50 000 per week which is okay for a very very much starting crypto we have not listed on any exchange because we do not believe in

16:52exchange so we are not in years 20 we would probably have more volume if we put this on exchange but this is not our goal our goal is to create create a bridge between the fiat and i guess in the crypto world so we have opened our own exchange instead and we are creating this exchange in a way that you will behave as a liquidity partner instead of

17:14speculation environment so these are our things to do we're working on that for a few months and but we have found ways to release this service in a way that people can interact with do in a relatively more easy way without the of always checking volatility and being a quick trader and knowing how to involve signal or right going to a broker which is

17:37probably the best thing to do at that case and to get some financial knowledge and so what we want to make it is can you drive a car without understanding the whole mechanic on it yes this is what we want to create as a situation for crypto in a way that people can exchange value all over the world instantly for free in a way that they basically contribute

17:59to the overall health of the economy which is relatively powerful definitely and we're running short on time jp but for the viewers that are looking to learn more about the platform get involved and learn more about hotel c what's the best way for them to reach out i would say that going to our telegram is the way that people get the answers and help

18:23it is mainly our technical help outlet also we have the adult community so h-o-d-l-c-o-m-m-u-n-i-t-y.org is a website you can have access to everything there and if you want to explore just to see how it behaves there is good graphic and knowledge and insight if you go to the adult decks h-o-d-l-d-e-x that i o so the adult decks is a good way

18:50to explore a transaction how it has behaved over time what has been the last year you have also calculator there and please remember that calculator are always simulation no one can ever predict the number of transaction it will use the last seven days average by default if you go there but you can play with it depending on your assumptions you can also put it to zero to see

19:13what is what we call the minima the meaning that the reasonable value increase that you can count on even if there were no transactions which will not happen of course but which we consider to be the basis on which you can calculate your business return if you decide to adopt others see in your business cool well thank you so much jp i will leave all those links as well

19:33in the description box below for the viewers all the best with the platform moving forward and let's follow up in the near future thank you it has been a pleasure