AMA Recap: Nova Finance x Solana Insiders
Last week, our co-founder Adam and Solana Insiders sat down for an AMA, below you’ll find a transcript that summarizes both questions and answers from the event. We had a great time meeting the Solana Insiders Community!
Q: Could you please give a summary of Nova Finance?
Sure, Nova Finance is an asset management protocol that allows people to create digital assets with programmed instructions. Our MVP is focused on portfolio creation. Experienced cryptocurrency users can create portfolios with a range of instructions to help reduce risk and optimise gains and automatically select ways to generate yield for each currency. Newcomers can join portfolios and invest sustainably into the cryptocurrency space
Q: What will be the utility of your native token $NOVA?
The Nova token is primarily a governance token. Holders will be able to define the integrations and developments built to support the protocol and will be able to direct the use of treasury funds also.
In the longer term, the token will be used as part of the profiling process for portfolios. We come from a traditional institutional background as do many of our investors and we also want to provide greater access to DeFi for retail, so portfolios need to be assessed as to how suitable they are for these audiences.
If you back a portfolio that goes on to be very successful with these audiences, you will receive a share in yield generated revenue
Q: What developments are coming up in the near future for Nova that we should know about?
The MVP is set to launch at the start of November. We’ve already started developing an Ethereum (EVM) version of Nova so that we can deploy and give users access to even more assets beyond Solana. You can expect this in mid Q1 2022
We also have a number of partnerships and integrations we will be releasing throughout this time as well as the release of our first meritocratic governance structure
Nice, it’s great to hear that you’ll become multi-chain so soon after launching. There are some very action packed months ahead for Nova. Thanks for giving us a summary of Nova and some insights into what’s to come.
Community Questions:
Q: If there was a project that copied your entire platform and technology for development, What would Nova do? and How Nova solves it ?
To answer this question there are few overall facts about DeFi that need to be stated. The first is that most if not all protocols in DeFi are open source. This means that it’s very easy for others to replicate and iterate. This is a major reason for the explosive growth in the DeFi space, TVL used to be a hundred million and in a little under 2 years it has grown to just under 300Bn in TVL. Asking the question of what would Nova do if it was copied is similar to asking how a protocol can maintain a competitive moat in a world where code is open source. The answer is rapid innovation.
And so, Nova is optimising it’s team and systems to accelerate innovation in a way that is repeatable, allows for radical improvements rather than incremental, allows Nova to continually deliver value to the community that is not found elsewhere in DeFi and allows Nova to always be at the front of pack. To summarize, Nova handles being copied by coming up with new ideas that have high value and executing on them extremely fast.
Q: Creating a token is easy, but it takes professional intelligence to keep it valuable in the long term. So what is your plan to make Nova valuable in the long run?
The long term value in Nova token will be determined by what utility and value it brings for the individual, a much easier area to implement on and the community or group at large, a much harder area to implement on. In the beginning Nova will provide most value to the individual users of the platform by providing extra yield, access to more stronger weighted votes and special features. To reach long term value at a community level the Nova token can be used to vote on investment proposals. Nova is an autonomous venture fund and its token is primarily designed for utilising the wisdom of the crowd to seek out portfolios and nAssets that will give exceptional returns over the long run.
To give more detail, if you own Nova and vote early on an investment proposal (say a portfolio or nAsset) and that proposal goes on to acquire a very very large amount of assets under its management you then get rewarded more yield alongside more Nova. Said another way, Nova is taking the venture capital process of curating investment opportunities (i.e pitch decks and investment proposals) through a small committee and opening this process up for a community of decision makers. This means the Nova token is designed to incentivise the community work together in finding and curating for the very best investment opportunities. In the long run the Nova token will unlock the wisdom of the crowd, give the community exceptional returns and most importantly, incentive everyone to work together to form the very first autonomous venture fund.
Q: In your opinion, where is the greatest value of Nova?
Nova’s value is driven by its adaptability, accessibility and interconnectivity:
With other portfolio platforms, there are no ways to identify trends and adapt portfolio composition to meet the current market’s behavior. This is one of the key strengths of the programmable asset framework where we use a range of datasets through oracles and indexing to give portfolio creators the power to build sustainable portfolios
Nova is a management layer and we are bringing access over time to a range of protocols and blockchains. This is a significant improvement and time saver for users.
Nova’s nAssets can also be used by other protocols which gives users even more flexibility with their assets and investments. For example, using an nAsset as collateral for a loan or as a debit position to mint new assets such as Dao for Maker.
Q: Who are Nova’s partners now and in the future?
Nova has been very fortunate to form long term relationships with a number of our early stage investors. You can find details of each of them in detail here.
We’ve also formed relationships with other Solana protocols and others based on Ethereum too. We’ve been spending the last month or so exploring with these protocols, the benefits and integrations that can occur between Nova and thiers. These conversations have been really productive and we’ve got a number of integrations and infrastructure improvements planned to facilitate these partnerships.
Our strategy for future partnerships are focused around increasing value to our users. Ie. Additional functionality and value received and also around increasing accessibility and the range of people who can use Nova to its potential. The latter is particularly focused around the retail and institutional audiences that we will be targeting as the protocol matures. For example, retail may require a more custodial wallet solution or institutional may require additional compliance checks and services. We are committed to providing access to the digital asset space to everyone.
Q: What are your main competitors or comparable projects?
Some investors have said that Nova is similar to Yearn finance, Enzyme finance and Solrise Finance. We in-fact see ourselves as collaborators with these platforms rather than competitors. The following explains why… With Nova you can program an asset to auto-buy or sell according to on-chain data. Metrics like volume, the price of Bitcoin, gas prices or just about any other on-chain data can be used to auto-trigger crypto to buy or sell. With our platform DeFi users can (1) mint a programmable asset on Nova (2) leave the protocol with this newly minted asset & (3) use it for: — Collateralized loans in platforms like Aave, Compound, Ratio, and others. — Portfolio creation in platforms like Solrise, Enzyme and others. — Yield generation on a newly minted programmable asset in platforms like Francium, Yearn, Harvest, Saber, Port Finance, and others.
About Nova Finance
Nova is a programmable asset framework that allows people to access DeFi without having to learn complex financial management skills. Within the product, users can create a portfolio of assets which auto-generate returns through yield strategies while auto-executing on investment strategies such as dollar cost averaging, take profit calls and much more.
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