In-depth dialogue with RioDeFi: linking CeFi and DeFi to accelerate the large-scale application of digital assets
Guest: James Anderson RioDeFi CEO
Moderator: Founder of Xiaomiao Beep / Founder of Miaodang Blockchain
financefinance, Can RioDeFi bring the optimal solution?
Sharing time: September 10th (Thursday) 15:30pm
digital assetsdigital assetsThe following is the text of the interview:
The following is the text of the interview:
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answer:blockchain technologyblockchain technologycompany. Our mission is to accelerate the mass adoption of digital assets by bridging traditional and decentralized finance. Our vision is to make decentralized financial services accessible to everyone.
After the 2008 financial crisis, my interest in economics and research into gold, silver and alternative currencies led me to the blockchain space. I really started working on Bitcoin in 2012. In 2013, I met Vitalik Buterin and Erik Voorhees at a conference called Porcfest in New Hampshire, where I bought my first bitcoin.
cryptocurrencycryptocurrency. In 2017, I started a company called Blockchain Investor to teach people how to buy, store and trade cryptocurrencies safely. In 2018, I co-founded a nonprofit called Social Evolution to explore how DAOs can be used to provide welfare and humanitarian services to people, as well as share knowledge about cryptocurrencies and DeFi.
digital economydigital economyIn , there are many different ways to create value. I really enjoy and appreciate the passion and optimism that people in the cryptocurrency space have.
Speaking of our project, RioDeFi started in April 2019, and then we started building Rio Chain to help people easily move between traditional finance and DeFi.
Sure, I’m happy to! Thanks for having me in your group for this AMA. I’m the CEO of Rio DeFi. Rio DeFi is a Blockchain technology company. Our mission is to accelerate the mass adoption of digital assets by bridging traditional and decentralized finance. Our vision is a world in which everyone has access to decentralized financial (DeFi) services.
I got into blockchains through my interest in economics and my research of gold, silver, and alternative currencies after the financial crisis of 2008. It was 2012 that I really started looking into Bitcoin, and I met Vitalik Buterin and Erik Voorhees back in 2013 at a conference called Porcfest in New Hampshire, which is also when I bought my first Bitcoin.
I invested into Ether in 2014, into The DAO in 2016, and over 40+ different cryptocurrencies since then. In 2017 I started a business called Blockchain Investor where I taught people how to securely purchase, store, and trade cryptocurrencies. In 2018 I co-founded a non-profit called Social Evolution that explored ideas around how DAOs could be used to provide welfare and humanitarian services for people, as well as to share knowledge about cryptocurrencies and DeFi.
I believe there are so many different ways of creating value in this rapidly evolving digital economy. I really enjoy the passion and optimism that people in the cryptocurrency space tend to have.
In terms of our project, RioDeFi has been in development since April 2019, when we began the development of RioChain and mapping out the structure of our fiat to crypto gateway to help people easily move between traditional finance and DeFi.
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answer:RioDeFi is developing apps that connect people with digital assets, mobile payments, and DeFi services like savings and loans. Our solutions will enable lower transaction fees, faster confirmations, higher energy efficiency, secure storage, and wider global reach.
RioDeFi's fully integrated technology ecosystem and solutions enable the seamless interface of fiat and crypto, which will help more people acquire cryptocurrencies. Rio Wallet is very accessible through our OAuth solution, allowing people to create wallets using their email or social media accounts. We are also very excited about the Dapp store as it will offer amazing projects such as MANTRA DAO, Bitpool, KQJ and more. Cross-chain DeFi dApps on RioChain, such as MANTRA DAO, are at the forefront of blockchain technology and will enable many new financial services.
Currently, Rio Chain is still in the test network stage. We also have beta versions of Rio Blockchain Explorer and Rio Wallet. We have over 20,000 online transactions and have over 1,400 user wallets testing transfer functionality. On RioChain, 3 more Dapps are being tested: MANTRA DAO (DeFi platform for staking, lending and management), Bitpool (blockchain-based prediction platform), KQJ (e-commerce game).
The 3 core modules of Rio Chain have been audited by CertiK, a world-leading blockchain audit company, and they have penetrated tested the web and mobile versions of Rio Wallet. You can check from the following link: https://certik.io/blog/clients-&-partners/riodefi-audit-and-pentest-riowallet/#home
RioDeFi is developing applications that connect people to digital assets, mobile payments, and DeFi services such as savings and lending. Our solutions enable lower transaction fees, faster confirmations, energy efficiency, secure storage, and global reach.
RioDeFi‘s fully integrated ecosystem of technologies and solutions enable a seamless Fiat/Crypto interface, which will help more people gain access to cryptocurrencies. RioWallet is very accessible through our OAuth solution, allowing people to create a wallet using their email or social media accounts. We are also very excited about our dApp store that will feature amazing projects like MANTRA DAO, Bitpool, KQJ, and others. RioChain’s CrossFi (cross-chain DeFi) dApps, such as MANTRA DAO, are on the cutting-edge of blockchain technology, and will enable many new financial services.
RioChain is currently in beta-net mode. We also have beta versions of RioBlockExplorer and RioWallet. We’ve tested over 20,000 on-chain transactions and had over 1,400 user wallets testing out transfer functionality. There are also 3 dApps built on RioChain currently in beta mode: MANTRA DAO (DeFi Platform for Staking, Lending, and Governance), Bitpool (Blockchain-based Predictions Platform), and KQJ (E-commerce Game).
RioChain’s 3 core modules have been audited by CertiK, one of the world’s leading blockchain auditing firms, and they’ve penetration tested both the web & mobile versions of RioWallet. You can find the report press release here: https://certik.io/blog/clients-&-partners/riodefi-audit-and-pentest-riowallet/#home
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answer:I think the biggest challenges for DeFi are addressing scalability (too low throughput), high gas fees (which break some dapps and economic models), security risks (unaudited code), and poor user experience. We are addressing each issue head-on, which I will explain in detail throughout the AMA.
In the field of DeFi, there are many exciting and innovative new models, and we are actively developing related functions. Currently, we are creating modules and incubating Dapps, providing liquidity mining, prediction platforms, social e-commerce, etc. In the next few months, you will see many new projects launching on Rio Chain with a unique user experience, which we think will help blockchain technology more accessible to the mass market.
I think the biggest challenges for DeFi are in addressing scalability (transaction throughput is too low), high gas fees (which can ruin some dapps and business models), security risks (unaudited code), and poor user experience. We’re addressing each of these issues head-on, which I’ll explain in more detail throughout this AMA.
There are many exciting and innovative new models that we’re actively developing on-chain functionality for in DeFi and beyond. We’re creating modules and incubating dApps that provide liquidity mining, yield farming, prediction platforms, social E-commerce, and more. You’ll see many new projects launching on RioChain in the coming months that provide unique user experiences that we think will help blockchain technologies become more accessible to mass markets.
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answer:When designing Rio Chain, we prioritized security, speed, scalability, and interoperability. We run on different chains to take full advantage of the strengths of each blockchain. Using Parity's Substrate framework, we can operate within the Polkadot ecosystem for true cross-chain interoperability and DeFi composability.
Rio Chain can provide better scalability (3000 TPS), lower gas fee (only 0.1 RFUEL, and can be adjusted if the price is too high), faster speed, better upgrade ability, and more seamless and simple user experience.
When designing RioChain, we prioritized security, speed, scalability, and interoperability. We operate across blockchains to leverage the strengths of each. Using Parity’s Substrate framework, we can operate within the Polkadot ecosystem to achieve true cross-chain interoperability and DeFi composability.
RioChain provides greater scalability (up to 3,000 TPS, and orders of magnitude more with parachains), lower gas fees (starting at 0.1 RFUEL and can be adjusted downward if prices ever get too high), faster speeds (with a 2s block time and finality within 5s), better upgradability, and a more seamless & simple user experience. We also provide an end-to-end fiat to crypto gateway.
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answer:You mentioned a key problem of the blockchain - the triangulation problem. Currently, every node maintaining the Bitcoin or Ethereum network works on the same public ledger. Every node must process every transaction. Adding more computers to the network improves security but actually reduces efficiency. So far, no blockchain has achieved scalability, security, and decentralization all at the same time. The project party usually needs to pick 2 out of 3 to focus on research and development.
For Rio Chain, we chose to focus more on security and scalability. As blockchain technology improves to solve this trilemma, we will become more and more decentralized.
Rio Chain as a federated blockchain currently operates using a PoA consensus model. In the early stages of development, the Rio Chain network had only a handful of nodes operated by Rio DeFi and our founding partners. The benefits of a federated blockchain include greater speed, scalability, low transaction costs, low energy consumption, strong security, and better alignment with regulators.
In 3-6 months, we will switch from the PoA model to the NPoS consensus model, which is the same model used by Polkadot (DOT) and Kusama (KSM).
You bring up a great point about one of the key issues with blockchains known – the triangle problem. Currently, every node maintaining either the Bitcoin or Ethereum network is working on the same public ledger. Every node has to process every single transaction. Adding more computers into the network improves security, but it can actually decrease efficiency. So far, none of the blockchains have managed to achieve scalability, security, and decentralization at the same time. You generally have to pick 2 out of 3 to focus on. With Rio Chain, we’ve chosen to focus on security and scalability. We will become increasingly more decentralized over time as blockchain technology improves to resolve this trilemma.
Rio Chain currently operates as a federated blockchain using a PoA (Proof of Authority) consensus model. In the early phases of its development, the RioChain network will only have a handful of nodes that are run by Rio DeFi and our founding partners. Benefits of Federated Blockchains include faster speeds, scalability, low transaction costs, low energy consumption, strong security, and increased ability to provide features that better connect with regulated financial institutions.
Within 3-6 months, we’ll be switching from a PoA consensus model to a Nominated Proof of Stake (NPoS) consensus model, which is the same model used by Polkadot (DOT) and Kusama (KSM).
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answer:The core of Rio Chain's economic model is to reward those who contribute value to the ecosystem. Rio Chain is powered by Rio Fuel (RFUEL), the platform (gas) token used to process transactions and execute smart contracts.
The distribution of RFUEL transaction fees is as follows:
70% goes to validators, 20% goes to Dapps (in the form of rebates for each Dapp transaction), and 10% goes to the Rio Ecological Fund. We believe this unique reward model will contribute to the large-scale development of the Rio Chain network while greatly incentivizing developers to build their Dapps on Rio Chain.
The initial distribution of RFUEL is as follows:
35% for staking and verification rewards
5% New User Bonus
5% referral, promotion and bonus
10% for Rio Ecological Fund
10% reserve
15% private placement
5% Crowdfunding
15% team and advisors (acquired within 24 months, 6-month restriction period = no tokens for the first 6 months)
As far as our developer community is concerned, we haven't released the code open source yet, so it's only our internal developers. However, we are now actively focusing on rapidly expanding our developer community.
RioChain has an economic model that rewards those contributing value to the ecosystem. RioChain is powered by RioFuel (RFUEL) which is the native platform (gas) token used to process transactions and execute smart contracts. RFUEL transaction fees are distributed as follows: 70% to the Validator nodes, 20% to the dApps (in the form of a rebate for transactions that happen on each dApp), and 10% to the Rio Ecosystem Fund. We think this unique rewards model will help massively grow the RioChain network while hugely incentivizing developers to build their dApps on RioChain.
RFUEL initial distribution is as follows:
35% for staking & validation rewards
5% for new user incentives
5% for referrals, promotions, and bounties
10% for Rio Ecosystem Fund (grants)
10% for reserves
15% for private sales
5% for community crowdsales
15% for team & advisors (vested over 24 months, with a 6 month cliff = no tokens for the first 6 months)
In terms of our developer community, we’ve just come out of stealth mode and haven’t yet released our code as open source, so it’s just our in-house developers at this point. We’re now focusing on rapidly expanding our developer community globally.
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answer:As mentioned earlier, Rio Chain already has 3 Dapps in beta: MANTRA DAO, Bitpool, and KQJ. In addition, 3 more applications are currently being built. Although Rio Chain is a DeFi-focused platform, it can be used in many different applications, even beyond the scope of other layer 1 platforms.
Currently, we are focusing on building the DeFi function of Rio Chain and incubating a series of Dapps, which also focus on DeFi services, liquidity mining, prediction platforms, social e-commerce, etc.
Without a doubt, we fully consider the Chinese community to be extremely valuable to any cryptocurrency project, but our focus is global. We are a diverse international team with core members from the United States, France, Malaysia, China, Hong Kong, Russia, Philippines, Ukraine and Romania. In addition, we have local community managers from many other countries. The ecology of Rio defi will expand to all parts of the world.
As previously mentioned, we have 3 dApps currently in beta-mode on RioChain: MANTRA DAO, Bitpool, and KQJ. Additionally, there are 3 more applications currently in stealth mode that we’ve been incubating. While RioChain is a DeFi-focused Substrate chain, it can be utilized for many different applications, even beyond what’s possible on other layer 1 blockchains.
We're currently focusing on building out RioChain's DeFi functionality and incubating a broad range of dApps focused on DeFi services, liquidity mining, yield farming, prediction platforms, social E-commerce, and more.
While we absolutely think that Chinese communities are immensely valuable for any cryptocurrency project, our focus is global. We are a diverse international team with core team members from the USA, France, Malaysia, China, Hong Kong（China）, Russia, the Philippines, Ukraine, and Romania. Additionally, we have local community managers from many other countries. The RioDeFi ecosystem will extend to all parts of the world.
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answer:To realize our vision of fully integrating fiat and cryptocurrencies, Rio DeFi is partnering with world-leading companies across a variety of industries.
On the technical level, our team has reached a close cooperation with the network security company CertiK. Having our code audited by a leading blockchain security audit firm puts us in a better position to work with financial institutions and actively appeal to non-cryptocurrency individuals to entrust their funds to us.
To help us design and implement payment tools, we have been working with partners such as BCW Group, arguably the best payment services consultancy in Hong Kong, for the past six months. In addition, we also cooperate with Hex Trust, a leading digital asset custody platform in the banking industry, to ensure the transparency and security of user assets.
Finally, we are actively working with financial institutions around the world to ensure that all of our services are fully compliant with the latest regulations. This will allow us to scale our products and services globally and help DeFi achieve mass adoption.
In order to fulfill our vision of a fully integrated fiat to crypto, crypto to fiat cycle of financial services, RioDeFi is engaging with a variety of world leading companies in various industries.
On the technical level, our team works in close collaboration with cybersecurity company CertiK. Having our code audited by a leading blockchain security auditing firm puts us in a much stronger position to work with financial institutions and appeal to non-crypto people to entrust us with their money.
To help us devise and implement our payment rails, we have been working over the past six months with partners such as BCW Group, arguably the best Hong Kong based consulting firm for payment services. We also collaborate with Hex Trust, a leading digital asset custody platform for the banking sector, to ensure transparency and security over our users’ assets.
Finally we are working with various financial authorities around the world to ensure all our services are fully compliant with the latest regulations. This will allow us to scale our products and services globally and help DeFi reach mass adoption.
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answer:I think we need to look at the big picture.
DeFi has been gaining traction over the past two years. Dozens of banks around the world can now host bitcoins. Billions of dollars worth of cryptocurrencies are being used for lending and saving, and the pace of innovation in this area is simply astounding. The whale game you describe refers to the current behavior of large DeFi project owners with relatively large surplus funds entering and selling while digging.
Of course, the vast majority of these projects will fail, but projects dedicated to providing secure infrastructure and sustainable economic models will open up opportunities beyond the imagination of millions of "ordinary users".
We need to look at the bigger picture.
DeFi has been gaining traction for the past couple of years. Dozens of banks across the world can now take custody of Bitcoin. Billions of dollars worth of cryptocurrencies are being used as the backbone to lending and savings program, the pace of innovation in the space is simply mind blowing. The game for whales you are describing refers to one minor, yet exciting, portion of the spectrum of financial products that blockchain and cryptocurrencies are bringing to the market.
Of course many of these initiatives will fail, but projects that commit to providing secure infrastructures and sustainable economic models will give millions of “ordinary users” access to opportunities that the current financial system cannot even dream of offering.
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answer:I definitely think that the current battle between centralized exchanges (CEX) vs decentralized exchanges (DEX) will be very beneficial for the entire crypto space. This kind of healthy competition can promote large-scale innovation and faster development of the entire industry. Currently, we are seeing increased liquidity, reduced slippage, and many new innovative token models launched. I think this kind of rapidly evolving experimentation is really exciting.
In many ways, the paradigm shift between traditional financial services and DeFi has been profound. The former is based on trust in people, while the latter relies almost entirely on computer programs. CeFi options like Nexo and Crypto.com offer some sort of compromise between the two. Having access to blockchain-based financial services businesses should be able to offer a balanced suite of products with varying levels of risk/reward ratios. Ultimately, the success of such businesses will depend on their ability to seamlessly integrate these services within their offerings.
From the perspective of users, the current situation of DeFi and CeFi service providers is very complicated and unsustainable. Once users become familiar with this diverse ecosystem and learn how to manage their risk exposure, DeFi and CeFi open up a new world of investment opportunities.
The power of security and experimentation, CEX vs. DEX, and CeFi vs. DeFi have all contributed greatly to technological innovation and development, and I think this will help to really push this new bull market to greater heights. With the Polkadot network responsible for cross-chain interoperability, RioDeFi forming a bridge between CeFi and DeFi, and scalable business applications within the Polkadot ecosystem, we are ready to lead the future of mass adoption of cryptocurrencies!
I definitely think that the current battle between Centralized exchanges (CEXs) and Decentralized Exchanges (DEXs) is one that will be very beneficial for the overall cryptocurrency space. This sort of healthy rivalry can foster massive innovation and faster developments of the entire industry. Right now we’re seeing liquidity increase, slippage decrease, and lots of new, innovative token models being launched. I think this kind of rapid experimentation is really exciting.
The paradigm shift between traditional financial services and DeFi is profound in many respects. One is based upon trust placed in people while the latter relies almost exclusively on computer programs. CeFi options like Nexo and Crypto.com offer some sort of compromise between them. A business that gives access to blockchain based financial services should be able to provide a balanced suite of products with different levels of risk/return ratios. Ultimately the success of such businesses will lie in their ability to provide a seamless integration of those services within their offer.
From a user’s perspective the current landscape of DeFi and CeFi services provider is very complex and difficult to navigate. Once users get familiar with this diverse ecosystem and learn how to manage their risk exposure, DeFi and CeFi open a new world of investment opportunities.
The forces of security vs. experimentation, CEXs vs. DEXs, and CeFi vs. DeFi are all contributing to a frenzy of development activity that I think will help to really launch this new bull market to greater highs. With the Polkadot network leading the charge on cross-chain interoperability, and RioDeFi forming the bridges between CeFi and DeFi, as well as scalable business applications within the Polkadot ecosystem, we are ready to lead the future of cryptocurrency mass adoption!
