In this blog post, we recap the most important questions from the community members during the live AMA (Ask me anything) hosted on Telegram last Saturday, 30th January 2021.
AMPnet’s CEO Mislav Javor, as well as SmartCredit.io CEO Martin Ploom, have answered questions about their recently announced partnership, DeFi business models, and what the future holds for both of the platforms.
Below you can find the summarized AMA session with all the questions and answers:
Mislav Javor | APX: Hi all! I’m Mislav — blockchain developer, book author (Developers Guide to Ethereum), university lecturer, and a heavily opinionated guy.
AMPnet APX is our startup — we’re the FIRST truly decentralized and scalable tokenization startup, even before network launch, we already have $130M contracted in tokenizations.
Our clients include worldwide giants such as Greenpeace, real-estate companies such as WESPA Spaces, PB Group, and more.
Martin Ploom | SmartCredit.io: Hi Mislav, could you add some words about how the tokenization of the real assets works?
Mislav Javor | APX: We use a system of decentralized “Auditor Nodes’’ which are humans and bots verifying the legal validity of assets which are then “mirrored” on the blockchain. Each person or company tokenizing assets must set collateral depending on their risk score. The riskier their opposition of tokenizing, the bigger collateral they must deposit. This is a stark change over current systems of centralized tokenization — where you’re FORCED to trust a company to issue your tokens.
Martin Ploom | SmartCredit.io: And your business model — how does this work?
Mislav Javor | APX: We require staking of our APX tokens to become an auditor! Beyond that, each transaction on our network incurs a fee — all of these fees are then used to buyback APX tokens on DEX-es through our token buyback smart contract.
Question from the community: When APMnet users will be able to use their tokenized assets as collateral on SmartCredit? And what happens if the loan backed by this type of token is not paid on time? Would the lender become the owner of the tokenized asset?
Mislav Javor | APX: AMPnet is adding a feature called secondary market and we will integrate after this secondary market is available.
SmartCredit will only allow assets, which have a mature and liquid secondary market. All assets which are not repaid will be liquidated according to SmartCredit’s rules.
Martin Ploom | SmartCredit.io: What are the key challenges in tokenization?
Mislav Javor | APX: The key challenge is scalability! Beyond that, it’s quite difficult to create a sustainable deal-flow.
Question from the community: How is this tokenization different from STO’s? Right now all STO platforms are facing regulatory issues and how the regulatory issues will be addressed?
Mislav Javor | APX: AMPnet does not issue STO’s — we issue “mirrored” tokens that do not bear legal rights to the underlying asset. We use a DeFi staking/reward system to incentivize fair behavior instead of relying on the legal system.
Martin Ploom | SmartCredit.io: Could you explain the scalability issue?
Mislav Javor | APX: If you have a centralized company issuing assets, each asset must be approved by them and they take the liability. This makes onboarding new assets very slow. AMPnet uses a system where we only VERIFY that you are the owner of the asset — we don’t enforce legal compliance, only give you a risk score.
Question from the community: Exactly what will be the point of AMPnet and SmartCredit’s partnership. What exactly will you use from each other?
Mislav Javor | APX: The biggest lending market in the world is mortgage-backed lending, AMPnet will bring mortgage-backed lending to SmartCredit.
Martin Ploom | SmartCredit.io: SmartCredit will integrate AMPNet supported real-asset-tokens. The owners of these tokens will get the possibility to monetize their real-asset-tokens. Let’s think this way — most real-assets have very long “maturities”. And sometimes the owners need liquidity — the typical Private Equity situation. Precisely in this situation, we allow monetization of the tokens — by using them as collateral on SmartCredit.io.
Question from the community: Will you release your own token?
Mislav Javor | APX: Yes
Question from the community: To onboard tokenized assets as collateral, do you need to change any logic within SmartSredit or we can onboard with existing v1.1.release? If it is v1.1, did you test this?
Mislav Javor | APX: AMPnet will be compatible with SmartCredit from day one!