Recap: AMA with Verso
On 18/11/2021 at 8:00 A.m (UTC), an AMA session was held on HurricaneSwap with special guest Gregor, CEO of Verso Finance. The following is a summary of the content of the entire AMA.
HOST | HurricaneSwap
Hello EVERYONE!!
Welcome to HurricaneSwap, it’s our first time to have an AMA with Avalanche Eco friends in our group. Today’s AMA is gonna be a little bit different. Instead of Free-asking questions, we will have a panel to discuss Avalanche ecosystem. Symington, the founder of HurricaneSwap will join us in this part. And now! Let’s welcome our guest today: Gregor Arn — CEO of Verso Finance.
Gregor | Verso Finance
Thanks a lot for hosting today. Super excited to be here!
Part I Introduction to Verso Finance
HOST | HurricaneSwap
Hi Gregor!! To start off, can you tell us about how you entered the crypto space and how your background contributed to your early successes?
Gregor | Verso Finance
So, I have had a passion for inclusive financial services for many years, specifically in emerging markets where the I see major growth opportunity for financial services. I launched the first social payments app in the Philippines in 2015, but we struggled to scale the product due to the lack of small-value cross-border payment rails. This challenge led me down an exciting path around microfinance, a tremendous opportunity for which a lot of infrastructure is still missing. Long story short: I put together a team and we started to build Wallet Engine — a bank-like financial institution providing in-app wallets for cross-border apps. Wallet Engine has access to apps with millions of users and we are using this now as a starting point to build Verso, which will transform every regulated e-wallet out there with a library of added financial products. With the launch of Avalanche mainnet last year, we saw a real opportunity to focus on microfinance and finally solve the distribution challenges. This got me into crypto 🙂
HOST | HurricaneSwap
What is your project exactly and can you tell us more about your vision?
Gregor | Verso Finance
Verso connects financial products, whether from DeFi or CeFi to digital wallets and banks. In other words, Verso is a distribution gateway to scale DeFi and CeFi products directly to consumers via their existing digital wallet and banking relationships.
In essence, we help DeFi to reach non-crypto natives and increase adoption.
And we help traditional financial service providers (CeFi) to launch and scale microfinance in a trustless environment and without compromising on regulatory obligations.
HOST | HurricaneSwap
What are some of the major milestones you guys have hit so far and why are they important?
Gregor | Verso Finance
So, we are a very young project, we only concluded our token sale in Q2 this year. But we made great progress since then:
We have already built all the pipes and connections to custodial, regulated e-wallet providers and we are now getting ready for a full live demonstration of the product/platform capabilities. You will see something before this year ends 🙂
The integration with custodial wallets are key as they are the real lever for scale. The integration we have provides us access to nearly 70 million wallet accounts within the next 3–4 years.
We have also signed other major partnerships with payment networks and insurance companies. Some have been announced and some will be announced at the time we feature their product (traditional financial service companies are generally a bit hesitant to make announcements before something tangible is visible).
HOST | HurricaneSwap
Where are you heading in the next few years and what are the next major updates for you?
Gregor | Verso Finance
Our initial focus is on opening up distribution channels for microfinance (from DeFi and CeFi) to custodial wallets. There are over 3,000 regulated e-wallets around the world, many of them are the primary tool to store digital value for billions of people in emerging markets.
What lies ahead is to open up distribution channels to non-custodial wallets too. (we already started working on this and partnered up with Dash and their merchant network).
2022 will be all about expanding the network and wallet reach while continuing signing up companies from CeFi and DeFi.
We will also roll out several functions where the community can actively participate in further developing the ecosystem. There are some really exciting roles that provide passive income opportunities for our members.
(little headsup: we will be launching an educational series with insights to each role of the Verso ecosystem).
HOST | HurricaneSwap
How do you feel about the industry at the moment and where do you think you fit in?
Gregor | Verso Finance
First off, I believe that traditional finance and decentralized finance will move closer together and innovation will eventually entail both parts.
The speed for this convergence is dependent on many factors, one of them is regulation, another is consumer protection.
So, we will see a lot of innovation on the actual product side over the next 24 months (which hasn’t been possible for many years due technological limitations or cost prohibitive distribution networks.
However, the best products do not improve an inclusive financial economy if they cannot be accessed by people who need them.
Here is where we as Verso come in. We focus on the distribution challenge. We are helping those building innovative products to easily and conveniently reach their target customers. We are the bridge builders so that people can access financial products through their preferred wallet or banking partner, in a convenient, secure and low-risk environment.
HOST | HurricaneSwap
That’s really informative! Thanks for your great answers. And those are the 5 questions we’ve finished in PART 1.
Part II Panel
HOST | HurricaneSwap
Can’t wait to jump into the second part to hear more about your opinions of Avalanche Eco! Before that, let’s welcome Symington to join us!
Symington | HurricaneSwap
Hello all. I’m Symington, the founder of HurricaneSwap. Super excited to have Verso here with us today. Looking forward to having an interesting conversation with Gregor.
Gregor | Verso Finance
Hi Symington, looking forward to this chat.
HOST | HurricaneSwap
The question of today’s panel is about Avalanche (of course):
Why did you choose to build on Avalanche and how does your project benefit the entire Avalanche ecosystem?
Gregor, please go first!
Gregor | Verso Finance
We chose Avalanche for a very simple reason: we needed infrastructure that can handle small-value transactions. This is what got our attention, but then, as we started to learn more about Avalanche, we became convinced that it is a key enabler for microfinance and for the scaling channels we are building
Unlike financial service companies, we do not bulid products people purchase. We help to scale products others build. In that sense, we help projects on Avalanche to reach consumers who are non-crypto native. We are connecting DeFi to traditional custodial e-wallets.
HOST | HurricaneSwap
Then Symington what’s your story?
Symington | HurricaneSwap
I think Avalanche has so much potential, it’s designed for DeFi, it’s powerful to build, the transactions on it are pretty active. And most importantly, we see the gap between X chain and C chain, it is a huge opportunity.
The number of users participating in the Avalanche ecosystem is far fewer than the holders and traders of $AVAX. A large number of users have recognized the value of Avalanche, but they don’t involve the Avalanche ecology in more depth. That’s the moment we realize that there’s a huge opportunity to build a cross-chain swap on Avalanche.
Gregor | Verso Finance
Spot on. I think it will get even more exciting as traditional financial service companies start to use Avalanche, even if they run their own permissioned networks.
HOST | HurricaneSwap
Different reasons but same choice :)
Symington | HurricaneSwap
Yes, absolutely. It will definitely benefit the Avalanche ecosystem even further.
HOST | HurricaneSwap
Then how would Verso and Hurricane benefit the entire Avalanche ecosystem?
Gregor | Verso Finance
I think there is a lot of similarity between Hurricane and Verso. Not from a product perspective, but conceptually. HurricaneSwap facilitates transfers cross-chain while Verso creates interoperability between Avalanche and custodial, FIAT wallets.
We are both bridge builders in that sense 🌉
HOST | HurricaneSwap
Both bridge builders — can’t agree more.
Gregor | Verso Finance
And the more bridges, the more connections, the more traffic.
Symington | HurricaneSwap
Yes, exactly. We are also similar in that HurricaneSwap is linking Avalanche with other blockchain ecosystems and Verso is linking the CeFi world with Avalanche. So in this sense, we are all introducing the Avalanche ecosystem to a broader audience.
What HurricaneSwap aims to do is to attract more $AVAX holders and traders to participate in the Avalanche ecosystem. As the first cross-chain liquidity DEX based on Avalanche, we can benefit Avalanche and create more value by providing more diverse cross-chain assets.
Gregor | Verso Finance
That’s phantastic. Interoperability is going to be a key value driver
Symington | HurricaneSwap
So it’s beyond “we chose Avalanche”, it’s more like, we need each other. I believe the rapid growth of Verso and HurricaneSwap means a broader reach of Avalanche, which in turn raises the value of all three together.
HOST | HurricaneSwap
Here we BUILD 🔺💪
I believe both of you can talk about Avalanche all day, but we have limited time in the AMA, so that would be all for the panel today!
Thank you both for amazing answers! I’d say that vision is some of the top features that make Verso and HurricaneSwap stands out.
Part III Questions on Twitter
HOST | HurricaneSwap
Q1: Can you tell us some of the latest achievements made by the #VersoFinance ? Can you describe in details the current development efforts, such as market expansion plans, expected applications & new upcoming program of events?
By Cô Bé AMA @cobeama
Gregor | Verso Finance
As mentioned earlier, we have built the pipes to FIAT wallets, we signed major industry partners (insurance companies), we signed the first non-custodial wallet partner, all the pieces are in place to move.
In terms of market, we currently focus in Southeast Asia when it comes to custodial wallet integrations. This is where we see the most short term upside.
In Southeast Asia (specifically Philippines) is a huge number of Axie Infinity players and it’s a real struggle for them to cash out. Off-ramps are not straight forward in emerging markets. Many users don’t even have bank accounts. Here is where the connections to custodial wallets becomes vital. This is one of many examples.
HOST | HurricaneSwap
Q2: Vast majority of Crypto projects are built just for the sole purpose of amassing wealth for themselves. So, I want to know the value you aim to add to crypto industry that will bring greater abundance to the industry?
By Halos Pham | TradeCoin @cryptotrung
Gregor | Verso Finance
Verso is a gateway and connector between DeFi and regulated e-Wallets, between traditional finance and crypto wallets, etc. Bing that linch-pin puts Verso in a position where it can amplify the growth of all ecosystem partners. The ecosystem grows together, Verso makes it stickier.
HOST | HurricaneSwap
Q3: Nearly 80% of investors only focus on short-term token price instead of understanding the real value of the project. Can you tell us the motivations and benefits for investors to hold your tokens in the long term?
By Dori Tuan @trinhcrypto1997
Gregor | Verso Finance
There may be many reasons to buy a specific token. Traders may ride on short-term waves but we are company builders executing on a vision. As with any startup, great things don’t happen overnight — the value of Verso will become glaringly obvious once we showcase the possibilities with the demo app, which by the way will be with a fully regulated e-wallet. A key element again is the partnership with Wallet Engine, it will jump-start initial traction for Verso and demonstrate the scaling potential. As a hint: Wallet Engine is a customer pipeline of apps exceeding 80 million monthly active users!
HOST | HurricaneSwap
Q4: I am very glad to know that you have partnered with HurricaneSwap. Do you believe this partnership with HurricaneSwap can take both of you to great heights in the future ? And are you focussing on any other partnerships currently ?
By Lee Di @pandalucu66
Gregor | Verso Finance
I am convinced the partnership with HurricanSwap will unlock potential on both sides. There will be various elements about this partnership, this initial trading pair is just the first one.
HOST | HurricaneSwap
Q5: I know that the total supply of the Verso Finance project is around 100,000,000, but it is known that there are only 45,000,000 VSO coins in circulation (CMC). So, will the value of the token decrease when all of these coins are in circulation?
By Kimmie Doan @komando911
Gregor | Verso Finance
Verso is going the be key to participate in the ecosystem, including to receive passive income. There are various roles in the Verso ecosystem where community members can stake VSO and earn rewards from real-time conversion of financial products. As the ecosystem grows, the amount of staked VSO will increase too while simultaneously the circulating VSO supply will become lower. Financial service companies using the Verso ecosystem to distribute products, still need VSO to pay for distribution fees …
HOST | HurricaneSwap
Thanks for all your great answers! It’s such an honor to have you here.
Gregor | Verso Finance
Hope we can continue this another time soon. Looking forward to the next steps.
About Verso Finance
Verso is built for the regulated financial service industry and bridges the gap between traditional finance (CeFi) and DeFi by standardizing how financial products get distributed and connected to consumers via e-wallets, banks, and payment networks.
About HurricaneSwap
HurricaneSwap is the 1st cross-chain liquidity DEX based on Avalanche. With the innovative LP-Bridge mechanism (Roke Protocol), users can trade popular assets of other chains without leaving Avalanche. Taking advantage of Avalanche, HurricaneSwap provides users with a high-performance, low slippage, low cost, and seamless cross-chain trading experience.
