Nova Finance AMA Recap
Nova Finance is a programmable asset framework that allows people to access DeFi without having to learn complex financial management skills.
On December 22, Adam Greenberg, Co-Founder of Nova Finance, joined us to answer our questions.
Adam Greenberg, Co-Founder of Nova Finance
I’ve been trading and investing in cryptocurrency since late 2013. I primarily work on the product development side for the platform and also help out on the marketing side while we’re in launch mode.
Questions from the CryptoRank team
#1. Can you tell us more about Nova Finance? What problems do you solve, both in the space and for the community?
Adam G.: – Throughout history, financial institutions and high net worth individuals have had almost exclusive access & control over financial operations such as lending and investing. Many of us around the world have been led to believe that money has no further value beyond what we can buy with it. The truth is that our money can do much more for us if given the opportunity
Decentralized finance (DeFi) and the rise in new types of digital assets are completely changing the financial landscape. Now anyone with any amount of money can invest in innovative assets through decentralized exchanges or put that money to work by lending it or providing liquidity. This is why there has been around $300bn worth of assets deposited into DeFi over the last 1.5 years.
Nova Finance is an asset management protocol designed to help make access to DeFi and the digital asset space easier. It allows people to create synthetic assets and program instructions such as protecting its holder from downside risk or getting additional benefits such as yield generation. We’re working hard to build an app that is easy for people to understand and use to unlock the power of their money.
#2. Could you briefly describe the milestones Nova Finance has achieved, and about your upcoming plans?
Adam G.: – Our journey really kicked off in June when we were one of the winners of the SOLSZN hackathon. A few months after that, we raised $3m from a really great group of investors who have been really valuable in helping us launch the project. You can learn about them all here: https://medium.com/novafinancedefi/nova-finance-investment-round-successfully-closed-30ed21ff8ae9. We recently completed an IDO on Solanium for $200,000 where we had over 100,000 allocation requests. Now, going into the new year, there is a lot planned.
First of all, the product release is scheduled for the end of January. Devnet will be opening up at the start of January to let people try out the product and give us feedback, we’re really looking forward to this. There will also be liquidity mining released during this time where anyone who creates an asset portfolio on the platform can begin earning Nova tokens. A portfolio can be comprised of any major Solana asset so there is a lot of flexibility to earn Nova! We opened up a Serum liquidity pool over the festive period and in January, the NOVA token will be listed on some major exchanges, so stay tuned for this! https://dex.raydium.io/#/market/2JYtpRB51ShaB7i4eaQyx6QYqWFmm38CAakFSMP8xush.
Questions from Twitter
#1. What kind of facilities does Nova Finance provide to a person who is in the financial market and is new to the crypto market, and at what stages does it help them?
Adam G.: – Experienced Cryptocurrency investors have a lot of experience and unique ideas on how to be successful within the crypto space. Nova gives them a comprehensive set of tools to automate processes that they would do manually without needing coding knowledge. They also get additional benefits such as a cut of all yield generated by users who join their portfolios as well as additional Nova token rewards. Newcomers are looking for that expert knowledge. Newcomers often struggle to invest successfully in the space so the platform lets them use nAssets created by experts to let them support interesting projects and share in the financial success.
#2. How many different options are there for users who want to earn additional income in Nova Finance, and what tools do you offer to reduce risks while doing these?
Adam G.: – Our programmable asset framework has a lot of flexibility around the integrations and benefits we can provide users. The main areas users will be able to earn additional returns are:
- Yield Generation: at launch, 15 major Solana assets will be able to generate additional yield. More strategies will be added over time with even more assets
- Liquidity Mining: Using the protocol will allow you to earn NOVA token. Anyone who creates a portfolio nAsset can make additional returns
On the strategy side, trading strategies can be programmed to achieve additional profit or reduce risks. Here are some of the initial strategies we have planned:
- Take profit: Selling a small portion of an asset regularly over time
- Conditional distribution: Using an oracle to set price targets on when to sell and buy assets
- Reduced Volatility: Uses a volatility index that will convert assets into stablecoins when markets appear negatively volatile and rebuy when markets are more stable.
#3. Can you describe the“governance model” of Nova Finance? Who is responsible for managing the system, what is required to qualify for authorization? What types of decisions can they make about the project?
Adam G.: – Within Nova Finance, we are building a meritocratic governance model. The core concept is that the best ideas will be implemented and rewarded and users vote on how good a proposal is in line with core community values such as profitability, security, or sustainability.
Governance makes decisions in the following areas:
- nAsset Integrations
- Protocol upgrades and modifications
- Treasury Spend
- Portfolio Curation
We have a big focus on tackling the retail and institutional markets and each of these markets need extra protection and consideration with the portfolios and investment opportunities that we can provide to them. The community and our governance model are very important in helping to make choices about what we provide to these audiences. If the decisions made are successful, there are opportunities to earn revenue shares and additional Nova tokens within the community – our success is your success.
Questions from Telegram
#1. Can you share with us your tokenomics? How much is the total and circulation supply of your tokens? Will there be buy back system or token burning in the future?
Adam G.: – There are 10,000,000 NOVA tokens max supply. The distribution is as follows
- Treasury: 27.13%
- Liquidity & Incentives: 31.75%
- Team: 10%
- Fund Raising: 28.81%
- Advisors: 2.31%
Many of these tokens are locked. The current circulating supply is just over 650,000. You can read more details on tokenomics here: https://medium.com/novafinancedefi/nova-token-distribution-serum-market-now-live-e8b58218060a.
#2. What features does nAssset have unlike other synthetic assets and why does it need Nova Finance programmable management layer? How to implement the auto-optimization feature in Nova Finance strategies and what strategies are determined to reduce downside risk?
Adam G.: – Unlike some other synthetic assets, the underlying assets can be changed over time depending on the rules that have been programmed to it. The management layer is important because it helps enforce those rules and gives other users and protocols assurances over the contents of those assets so that they can be used elsewhere. This is cool for the portfolio platform we’re launching initially but it could lead to some very interesting use cases beyond this. We’re already thinking about how we could design crypto-native rebalancing stablecoins for example.
#3. Do you have any plans to attract non-crypto investors to join your project? Because the success of a project attracts more investors who haven’t yet entered the crypto world. What are the plans to raise awareness about your project in the non-crypto space?
Adam G.: – As you say, there are lots of people who haven’t entered the cryptocurrency space. Retail is a very important market for Nova Finance growth and we have to design new ways for this audience to enter the crypto space.
During our user research, we found that many non-crypto people are very comfortable and would prefer using mobile devices for financial decisions and activities. It is clear to us that in order to tackle that audience, we will need to provide easier ways of accessing DeFi. The mobile app will have curated portfolios and more support around fund management and wallet custody. These user groups also have different needs from crypto people. They pay attention to different things from us and value channels like PR and physical advertising over medium articles and tweets. It will be really interesting to take Nova Finance down this route and adapt it to be accessible to these new markets.