Filecoin Storage Markets Summit 2021, 17 Dec 2020

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From YouTube: Filecoin Investment Opportunities by Secured Finance - Masa 'Senshi' Kikuchi

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Okay, hello, everyone, I'm secured finance co-founder and ceo masa and I go by senshi online. I used to work in financial industry for more than 15 years and I became blockage blockchain engineer today. I'm going to talk about secured finance protocol and file coin investment opportunities before going to agenda. Let me quickly talk about how we started. We started at hackafs hackathon this summer and got prices from protocol labs and ethereum foundation.

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Now we are in falcon launchpad accelerator program by taking and aiming to make it launch in q1 2021.

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Our purpose is to develop interbank grade protocol for secure peer-to-peer financial transactions and to provide secure decentralized platform, complying fat f rules for ml cfd with dlt here's the agenda. I go through four topics: first I'll introduce our finance protocol and show you some demo screen. Second I'll talk about the limitation of current defy and provide solutions to it; and thirdly, I'll explain why falcon is attractive investment and, lastly, I will introduce some of the interesting investment products for investors.

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Let me talk about secured finance. Our chinese community members suggested to have this chinese name. Secured means collateralized and we develop collateral management and payment system using ethereum smart contracts. We aim to provide inter-bank grade peer-to-peer financial transaction platform.

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So if you look at the finance, interbank transaction network is already decentralized, so the core idea is to replace middle office and back office operations with smart contracts.

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So we have this market and collateral and loan smart contracts and basically we did redesign banking business and manage collaterals and loan payments autonomously.

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So summary of uh our platform capabilities, so we are still uh developing an aim to launch in q1 and uh but next I'll show you how a web ui looks like. So here's the simple version of loan market view. You can select currency and select terms six months, one year three year five year and you can borrow or land, and this is currency swap screen. This is interesting because uh you can do carry trade, you borrow us dollar and pay low interest rate and you invest in file coin and which is higher interest rates.

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In this case, uh you receive eight point: one percent, you pay zero point, one percent and to achieve seven percent carry and more interestingly uh swap transaction, doesn't require a lot of uh collaterals because uh it offsets all the cash flows. Basically, you are on the lending side and als you're, also a borrowing site.

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So so this means uh uh we can provide the leverage okay. So if you click the swap, then confirmation will show up and here's the history page to see your loan book and its states.

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So if you click the schedule it will show up like when is your next payment, so you can manage the payment and states okay. So what I want to talk about decentralized, finance, so uh recap of the d5 1.0. There are some limitations, so so most uh tradable assets are, I mean uh ethereum, tokens and well unique protocol is great, but it comes with learning costs and also siloed user base.

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And thirdly, most transactions are spot exchange and short term, so not enough liquidity and the. Lastly, in most, projects are led by developers and not fully appreciate financial regulations and the rise of divide 2.0 where we are going is basically, we solve those problems by handling native coins azures.

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So, basically, we are developing uh interoperable um oracle network to achieve uh cross chain operations and also we comply with internationally standardized protocol, which is isda master agreement, uh which is widely used among the traditional finance field, and also we have yield curve. We build a util curve to provide a discount factor so that we can achieve a full scale, financial transactions. We can provide all the hedging activities and also.

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Lastly, we are going to talk with uh swiss fema regulators and in order to comply with the financial regulators, regulations and fight coin as a new asset class, I think filecoin is a very attractive asset and class.

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If you look at the history coin, price stays around 30 dollars, which is nice and uh since file coin is utility coin, the price could be more stable than other crypto assets and, let's summarize and characteristics of alcohol, so far coin is utility coin and price is um stable as and also it right now uh falcon miners, I'm paying a high interest rate. So it is a great opportunity for investors and as you as you know, so, data size we we handling, is keep growing.

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So I think it's a long-term growth can be expected for falcoin, so I'm going to introduce two kinds of uh products today: first is cross currency, I'm sorry currency linked note. This is a very popular structured investment product. uh I used to lead hsbc derivative structuring, so I'm I sold a lot of products like this, so this is file coin linked note. It can achieve higher yield from foreign currency, basically from file coin, and this is very, very popular among wealth management field.

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So, if you look at the terminals conditions, this is just three months tenor and notes and their u.s dollar one million notional in a coupon. Let's say it's a ten percent per annum and a spot rate is here and just reduction. You will receive file coin, but optionally and the user can choose uh to the returned currency, whether it's a us dollar or file coin, so how to make this kind of a product.

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So this is more like a banking business, so a bank uh receive a us dollar from investors and then return coupon and uh file coin at the end. So in this way, file coin borrower can borrow file coin. An investor will achieve a higher interest rate, and this is very important and to match the strong demand from falcon miners and also provide converting regular investor general investors into file coin lenders.

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So the another thing is, uh I told you before, but it is a falcon us dollar cross currency swap which is most popular, carry trade strategy among hedge funds and wealth management, so basically, client and uh initially exchange file, coin and new installer, basically lending uh borrowing, usd usdc and lending file coin.

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Then you can receive a high file coin in crude point, which is eight percent, and then you pay a lower interest rate and since this kind of transaction can be leveraged, so let's say: if we provide 10 10 times leverage you can achieve roughly 70 percent on your in on your capital.

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So one last thing we're conducting a short three minutes survey for falcon loan market and also actively finding early test pilot users. So please take a moment and help us to provide the highest quality service I'll post the link in the chat shortly.

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So thank you very much and we're looking forward to seeing you on twitter and discord channel.