Newcomers who have just joined our community can learn more about GTP by watching the Scaleswap AMA session.
Our CBDO Vlad Balaban discussed the DeFi pools technology, broader project‘s future and answered many questions during the Live YouTube AMA session hosted by Scaleswap. Vlad was interviewed by Scaleswap’s Co-Founder & CEO Ralf P. Gerteis and Chief Venture Officer Nelli Orlova.
By viewing or reading the AMA, you will understand the GT-Protocol platform better. You will learn about the technical advantages and features of our product, as well as future plans of our project.
For those of you who are more comfortable reading the article than watching the video, we have prepared a recap of the live broadcast.
Nelli: Can you give us a short intro to your product? What is GT-Protocol about, and what problems does it solve?
Vlad: GT-Protocol is a protocol for DeFi investment pools management. We created a solution that helps any entity, organization, or private person create DeFi smart contract pools to collect funds from contributors. And it allows managing these collected funds on DeFi and CeFi markets.
There are many use cases of this technology. You can use it for trading, yield farming, savings deposits, portfolio management, and many other use cases. The main point is that cooperation between parties — contributors and pool owners — is based on a profit-sharing model (success fee model).
Nelli: Are you specifically working with decentralized communities and building decentralized strategies?
Vlad: We support both options for decentralized and centralized markets. There are different pools for different markets. Each user will be able to choose the best pool for his purpose. Pools vary by profitability, strategies, and other features. If the user would like to gain huge profitability, he would be able to join trading pools. If users prefer guaranteed profit with no risks, it could be possible to join pools with savings. It will also be possible to enter pools for NFT investment for portfolio management. We are an official partner of Binance exchange, and we are establishing a partnership with Huobi.
Nelli: This is great! Such big players are your official partners! We have so many questions in a live chat that I barely imagine how we can answer them all in a given time! Ralf, it is your turn to ask a question.
Ralf: I want to be very transparent. I had some reservations at the beginning about purely traditional copy trading, which I am not a big fan of. But when I looked deeper into the GT-Protocol I saw it like an advanced DAO investment pool. There are also a lot of issues if you have a DAO you can jointly invest in. There is a problem that in a DAO, everything is democratic. And you need to wait for approval of 20 people, which is impossible for situations with a short term to process an investment. It works in the end only with long-term investments. The solution of GT-Protocol presents a strong leader, a trader who collects liquidity. How was the process arranged of coming from a traditional copy trading area? What was the main point that you were facing? What problem did you want to solve with this specific setup?
Vlad: It is a very good question. Thank you, Ralph! We have more than one year of experience in the copy trading market. We already have our CeFi product live and launched. This is our MVP. We have a platform for algorithmic trading and copytrading for centralized exchanges like Binance and others. It works pretty well as we have a lot of feedback and fantastic performance. Our audience has grown from 200 users to 25K registered users. Mostly because of users’ recommendations and world mouth spreading. When people earn money passively just while asleep, they are happy to share this information with friends and colleagues through social media. There are a lot of points for improvement of the centralized model. That is why we decided to build a similar product but for a decentralized DeFi market.
First, users on centralized copy trading platforms usually need to pay some monthly subscription, subscription fee, and copy trading subscription in advance. They need to pay before they get any results. And they even will not know if this subscription price will be paid for itself by the end of the month. In our DeFi protocol, the main advantage is that users can join any pool without any prepayments. So it’s completely free because the model is like a success fee. So users could join a pool only when they would like to finish withdrawing the funds (like one month later, half a year later). Only after that will they pay someone from their profit as a profit-sharing fee. It could be 5%, 10%, or 20%. It depends on the pool owner. In this case, their users also don’t have any minimal deficit requirements.
That is just one of the advantages, but there are many more different advantages. It’s very difficult to start users on centralized platforms because they have challenging onboarding. Users need to go to the centralized exchange, Binance, to register the account, confirm email, and pass KYC. That is a procedure from maybe 15 to 20 steps. It’s challenging and complicated. It requires maybe two hours at least. Our DeFi product is much easier because the same option will be available for users just in three clicks. They will need to connect the MetaMask wallet, choose a pool, enter the deposit amount, and sign the transaction. So that’s all.
There is also an advantage in the business model, and there is an issue with slippage in initialized competitions. It happens because there is a wallet of a trader, and there is a wallet of an investor on the other side here. And when the deal is executed on the trader’s wallet, some time should pass before this deal can be repeated on followers’ wallets. And because of this time gap price on the exchange could change, and it could not be profitable for investors. They could meet a loss because of this. It could be an utterly unprofitable deal for them, which is probably one of the main advantages of the DeFi model here. Because in our pools model, funds of all participants are locked in one address. All members participate in one deal at the same time in one transaction. There are no issues with slippage with price changes, which is one of the most significant advantages.
Users don’t need to pass KYC, and they could remain anonymous because that is the DeFi market. Because trading could be possible on decentralized exchanges also.
Nelli: So what you have described to us is unique to GT-Protocol only, or could these features also be found in competitors?
Vlad: Some advantages are unique for GT-Protocol only. We have some competitors in the DeFi market. There are some trading pools, and copy trading platforms among them. But all they use wallet-to-wallet trading, so there is still an issue with slippage. We are the only one platform which uses a pools model where funds of all participants are stored in one address.
Nelli: Our community member, who is always very active during our AMA sessions Martin Kampstig, asked what the actual USP (unique selling proposition) of GT-Protocol is and why people should use this bot compared to others? You have already started to answer this question, as I see.
Vlad: Yes, I already mentioned a lot of advantages, and I also can add that one of the most significant advantages is that in the Defi case, when a contributor, user, the investor would like to join some DeFi pool, he can be 100% sure that all information about PnL starts and profitability of the pool is legit. Because of the DeFi protocol in our product, we store information about all previously closed deals in the blockchain. Canal stats are unchained. In terms of centralized platforms, users can never be sure that this information about the project is legit. It’s not possible to check this information. Sometimes it could be the reason for some disappointment from the user side. In our case, all data is transparent and accessible. You can verify it through the blockchain. You can see links to every transaction in the marketplace. So that is one more advantage of our product.
Nelli: That sounds cool, and by the way, speaking about blockchains, Viet Duke Crypto is asking can you describe the technology model of GT-Protocol and what will blockchain protocols be applied to be able to share the profits?
Vlad: One of the most incredible things from the investors’ side is that mostly all of us always were looking at this the most successful traders in the markets, the most successful influencers, we always see a lot of reports from them about successful deals, and we always were thinking how can we do the same. How can we achieve such results? But with the main advantage that with GT-Protocol, users get this opportunity because these pools will be managed precisely by key opinion leaders, influencers, and top crypto traders. We are already in touch with many top crypto traders. EXCAVO is the number one trading expert according to the official rating of the trading view website, and all these guys are already interested in using our technology to automate cooperation with their existing audience.
Professional traders could create tools for trading, and professional investors or asset managers could develop tools for portfolio management or yield farming. VC firms could use our technology to automate cooperation with their existing audience for staking. They could also use our technology to collect additional liquidity from users of our platform and manage this liquidity on DEX platforms.
Crypto game guys will use it when they would like to gain some liquidity to buy NFTs to provide scholarships to their crypto guide members. NFT investors could use it to create pools for NFT portfolios and digital asset investments. It could be used by influencers when they want to make some fundraising tool for IDO projects, or it could be a scene by IDO projects for themselves as a launchpad.
Any person or entity that performs some profitable activity on the market could use GT-Protocol technology to cooperate with contributors on a profit share model. In terms of technology, it works pretty simply. Here you have a smart head contract that is a smart contract factory. When the pool owner would like to create a pool, he just needs to send a comment to create a pool to the head smart contract, and when he makes the pool, he can set up some full custom settings and configurations like the name of the pool, strategy of the pool list of markets required to manage, funds. Also, he needs to set up this custom professional fee — how much he will charge from contributors. It will be a one person fee of 5%, 10%, 20%, and 50% fee that is a decision of a pool owner. Conditions for different pools will be other, and the market will regulate competition between different pools.
When a pool is created, it appears as a separate smart contract, and contributors get access to our marketplace with a pool’s rating. They could join any of these pools. It’s pretty easy for them. They need to connect to the MetaMask wallet by clicking the connect wallet button. Next steps: You just need to choose any available pools, click the deposit button, and enter the deposit amount. After the transaction is signed via MetaMask, funds will be sent to the pool smart contract. The contributor will become a full member, and he gets a full token which means some shares or equity from a total pool amount.
You can benefit and earn profit in two ways: from providing liquidity to approval and using a pool token for staking in farming. There is one more advantage here. While the contributor is a pool member and holding a pool token, he can also use this pool token for staking and farming. At the end of the period, a contributor just needs to send the pool token back to the smart contract address and his initial deposit. The profit amount will be calculated automatically and sent to his address. But at this moment, part of his profit, 10%, will be charged as a profit-sharing fee (success fee), and this fee will be sent to the pool owner’s address as his reward for asset management services. Some other parts of proficiency will be forwarded to the ecosystem and used to burn GTP tokens and develop the ecosystem.
In terms of security and funds management, it is also elementary. When funds are deposited and locked in the pool smart contract address, the pool owner can start to manage these funds by sending swap comments to the smart contract. The smart contract will automatically send this web comment to the DEX platform, and in terms of time, both transaction swap commands appear in one block. So it means that there is just one transaction, and there is no difference if the pool owner trades on the desk platform directly or if he does it through the protocol. In terms of security, the pool owner doesn’t have any private keys from the pool smart contract, so he can’t withdraw funds. He can not steal these funds, and he can’t do any manipulations. He only has the right to send swap comments, and he only can do operations only on whitelisted text platforms. He can’t send pool funds to any address in the blockchain. Only by at least the DEX platforms, and only, can he manage funds on whitelisted trade pairs and coins, so he also can list some new tokens on the DEX platform. He can trade against this token. Funds of the pool are 100% protected. Just by the way how the technology is designed. That is a basic description of how our technology works. There will be many use cases and improvements in the future because we can improve it for each target audience, and for each use case, we could add some additional features.
Ralf: Vlad, as long as you have this overview still here, you said that these decentralized exchanges or decentralized platforms need to be whitelisted. Is there also an integration necessary, or do you simply approve these platforms where the pool owner can send the swap commands?
Vlad: We just add decentralized exchanges, which we allow to the white list, probably
there is something like a channel use case for all platforms.
Ralf: Уou mentioned earlier, which is very interesting, that it’s also suitable for NFT collectors investors. Do you also have a white list for platforms like OpenSea, or how does that work?
Vlad: There should be some white list because, in other cases, pool owners will be able to send funds to random addresses. In terms of NFT platforms, the white list could be very long, so all the most popular NFT platforms will be supported.
Ralf: There was also a question from Dan Evon: At what stage is the project now, and what should we expect in the coming months?
Vlad: As I told you before, we already have our active MVP and launched and has operated for more than one year. I can show it, so that is our platform for centralized algorithmic trading and copy trading. Here users can trade on their own using trading algorithms, choosing different strategies. They have an option to copy the best traders of the platform, and here, users have access to the marketplace of top traders. They could check the performance of any trader, get some detailed information, trading graph information about all previously closed deals, the history of the deal, some exact information about each deal open price, and take profit price. So this platform is available for users right now. After the token generation event, all token holders will be able to use utilities as a token in this platform at the same moment, and that is exactly the platform where we have an official partnership with the Binance exchange and establish a partnership with the Huobi exchange. It provides many advantages to users, they could create a new Binance account from the interface for our platform with just one click. It’s very convenient because users don’t need to spend time creating API keys, passing KYC, and other onboarding procedures on centralized exchanges. DeFi product has a similar model; precisely due to success and positive feedback in our centralized platform, we were inspired to create the DeFi technology and DeFi protocol. So this DeFi protocol we are developing right now. We will have the launch in the second quarter of this year. We’ll have some beta allowance from them two months after IDO. That is our current development progress.
Nelli: Сoming back to the questions from the community, the user is asking how do you plan to promote your project in different countries where English is not spoken well? And also, Martin is asking something similar: will GT-Protocol also focus on third-world country markets, Latin America, Africa, etc.
Nelli: Let’s talk about your token and economics. The favourite topic of Ralf. You share the passion here. Viet Duke Crypto is asking whether you can describe your token use cases and forms.
Vlad: Token provides many benefits to users that is a native utility token of our platform. So, our token will allow contributors to get a discount for a profit-sharing fee. So, when a contributor joins the pool when he deposits, he also can stay GTP token, and this will allow getting a discount for a generic profit fear. For example, if the general professional fee for this pool is 20% or 10%, the user will get access to a 50% discount. He will need to pay only, for example, 10 feet. So it is two times more beneficial for the users and more profitable for them. Also, pool owners will need to pay a listing fee in GTP tokens. These GTP tokens will be burned.
There are many use cases on our already live platform, we also support token utilities so users can use GTP tokens to buy tokens to pay for computing subscriptions. As part of the profit-sharing fee, they will also be used for GTP token burn. It will be available for users at the exact moment after the token generation event and PancakeSwap listing. We also have DAO governance, so the GTP token will allow us to vote in DAO governance votes.
We have an insurance fund, and if users would like to participate in the insurance fund, they also will need to use the GTP token. Mostly on each option or on each step of working with platforms, users will be able to get additional benefits.
We’ll try to add as many possible use cases for the token in the future because for each type of pool. So there will be some different requirements, and, if some IDO project will use our technology, we’ll also require them to use the GTP token. Right now the main utility is discounts from the fees and governance, token burn options and listing fee.
Ralf: I think there was also an interesting question from Andre: from what you described earlier on and since you’re allowed to create a Binance account via your website, how secure is this? Also how do you deal with KYC that is required by Binance?
Vlad: That is a good question. In terms of security, it’s 100% secured. And over the long period of corporate violence we didn’t have any cases in terms of security in terms of any hacks. First of all these accounts are created officially on the Binance exchange so you’re not in custody. Our platform doesn’t hold users’ funds and we are not in custody. We provide the front-end interface that allows creating an official account on the Binance exchange. In terms of security, this account is accessible only through our platform so it means the users don’t get some additional login and password credentials because in this case it could be unsecured. That is some rule of the Binance. If we as a platform will have access and diffuser will have access and if there will be some issue with this account it will be not possible to detect whose fault it is. Maybe the user was hacked on some third-party website. Maybe he used his password and email and lost it there or maybe there is an issue on the side of our platform. That is why they provide access only to the interface of our platform. And as we are KYCd by Binance, they don’t request some additional KYC from users of our platform.
In terms of security, even if our platform were to be hacked it will still not be possible to steal funds from users because we approve requests manually. When we approve this request we always check if all information is legit if all looks pretty normal and good. If one day we will see 2 000 requests to be several funds from 2 000 accounts in one minute, it will be pretty clear for us that there is some bad case in terms of security and we will not proceed with these withdrawals.
Ralf: Thank you, Vlad. There are quite a lot of questions around token metrics. Great if you can speak a little bit about what was behind and what you had in mind when you were designing the token metrics? Also can you give us some key metrics like initial circulating supply, fully diluted and stuff like this.
Vlad: In terms of token metrics so our initial price will be $0.2, our total supply is 100 000 000 GTP tokens, our initial circulating cap is pretty small it’s just $204 000. And that is just one point zero two percent from a total supply.
We spent a lot of time on metrics development. We create a really good economy so seed round and private rounds’ participants have pretty small TGE analog so there is zero percentage unlock for seed round and just two percent each envelope for prior round participants. And they have very long durations. So seed round will last for two years and private round for 16 months. For IDO round participants TGE unlock is 10 months and vesting is five months.
We also have some locations for marketing for some DEX liquidity, for staking rewards, and maybe if there are some specific questions on tokenomics I would be happy to answer.
Ralf: Why do you have only such a small initial circulating supply? But in general, I think it’s especially in these market conditions always a positive sign. I can also give some confidential information I’m mostly a critical guy when it’s around token metrics and I think during the last years, I was checking hundreds of token metrics, and also in the path of our past months a lot of them and from my personal view, it was the first one where i said okay I wouldn’t change anything. But this is no indicator, this is just a private opinion because there are a lot of strategies and a lot of opinions. But I think it has the right balance between the very aggressive lightweight ones with five-six million fully diluted, which are rockets but most of the time, these rockets land also on the ground.
Again so 20 million I think still comparably lightweight, very reasonable vesting cliffs, where it makes sense. There are not many projects with a 20 million fully diluted market cap and a gift to the team only 10 percent with a nine-month cliff and 24 months total resting. So this was not by pressure, let’s say from, so this is also a little bit a sign that the team also believes in the project and the token because, in the end, it’s the result, the overall result, not the percentage. I think this is always a good sign in my perspective. The project also takes care that the tax liquidity has the same percentage as the team tokens. So overall, I think very reasonably from my perspective. These metrics are also very suitable for the market conditions where we are in. They are not completely bad, but a little uncertainty is still in there. But it could also be that we are stabilizing now. I think it’s a very suitable approach from my perspective for such market conditions.
Vlad: We are amazed and happy for such an excellent opinion about our tokenomic. It’s delightful for our side. I appreciate it so much.
Nelli: I have another question. Andrei is asking you: You said that GT-Protocol could be used to collect funds and set up liquidity pools that emulate traditional bank deposits. Did you investigate if this use case is legal in most countries?
Vlad: The main point is that the GT-Protocol and what we build is a technology, so that is not a centralized platform which is much cooler. It’s much better than centralized specimens. So it means that you’ll create technology smart contracts and just upload it into the blockchain. This technology could be used by anybody, even without an application or website, and it would be managed directly in the blockchain. Of course, we’ll have some front-end web applications to make it convenient for users. In terms of this project, that is absolutely the decentralized technology, and it will be managed by DAO governance, and anybody will be able to use this technology.
We are not some custody company that holds users’ funds, which stores funds in our wallets. Nobody will have a private key from the wallet, not a pool owner, not GT-Protocol management and development team. The only way to withdraw funds from the pool will be able. You’ll be accessible only by sending pool tokens back to the smart contract address. It’s just a technology, so it’s not a point for regulation because it is an entirely decentralized application.
If you face any regulation issues, it will also be possible for us to restrict users from some specific countries. In the final stage of the product, we hope it will be fully decentralized and fully accessible to everyone on the blockchain.
Nelli: For me, it sounds pretty convincing! How about you, Ralf?
Ralf: Every project in the DeFi world is dealing with the same story. DeFi is nothing different than banking services or related banking services done decentralized. Whether it’s staking, investing, or lending borrowing, these are all inter in theory or effectively regulated areas. But if a project provides, as Vlad said the technology and it’s also the same with scales, well, we’re also an investment platform and ideological so we are exactly in the same, so the question here is from a legal perspective how decentralized is a project? How strong can one person or one entity influence or profit directly in such a system, I think one of the first decentralized exchanges was fined by the SEC some time ago, and the main reason was that they were not decentralized enough. So one person could maintain, I think, the percentage of the fees one person was also getting these fees, so this has nothing to do then at the end with a completely decentralized setup. Otherwise, any regulatory body would have no chance to tackle them from the reasoning. Therefore the more decentralized you are as a project in the deployed world, the safer you are also from a legal perspective.
Nelli: Sounds quite convincing, I think. We have quite a lot of questions also about the features and, of course, about the upcoming IDO since we have not much time left maybe let’s just go through a couple of questions about features. For example Vanch is asking about your interface and do you plan to make it easily accessible for users who do not have a crypto or investment background that they can quickly assess the risks and benefits of different pools in your system. Do you plan to approach this non-crypto audience as well who wants to join this movement?
Nelli: If the users will be able to create their own trading bots using your protocol? Will this feature be available?
Vlad: First of all, this feature is already available. As I told you before, our platform is already launched and users can go to our website to register an account on our platform, and they could already create trading bots trading algorithms. Our users have a great performance because some earn amazing profitability results from 10 percent monthly probability up 200 percent. It’s different for each trader but this option is available for people and if some user doesn’t want to spend a lot of time here for trade to keep an eye on the market and market charts and charts, you can use a copy trading which is also available already. And in our protocol, according to our roadmap, we will also support trading algorithms; algorithmic trading for pools will be supported for the DeFi pools as well.
Ralf: Vlad, one more question from my side. You also mentioned on your website that they are built on the Binance Smart Chain. But you also mentioned further EVM chains so what is exactly the strategy regarding protocols?
Vlad: In terms of blockchains, GT-Protocol is a multi-chain protocol so we will support different EVM blockchains. First of all it will be Binance, Ethereum. We are also in touch with the Huobi team so we are going to add support for the Huobi blockchain. That is an option for us that is an opportunity for many strategic partnerships because there are many promising blockchains right now on the market with amazing communities and we’ll add as more blockchains as possible to provide access to their audience to our application.
Ralf: But one pool can only be executed on one protocol, right? So also the swaps that take place from the pool?
Vlad: It depends on different rules, it could be different. There will be some pools that will be accessible through different protocols but some pools could be accessible on the for some specific blockchain.
Ralf: Which DEX platforms will be whitelisted? I think it’s a process from your side, right?
Vlad: Of course from the beginning it will support the most popular DEX platforms, pancake swaps such as Uniswap and others. And you’ll have the support of as many as possible according to the project and product development.
Nelli: Tom Ahmad is asking most of the projects coming out now do not give the kind of x profits that they just did a few months ago. Do you think the current period is a good time for the release of your project to the public?
Vlad: Market now is really not performing so cool but the main points are that our token generation event and listing you should do it for February. So our token launch is
in February and we’ll choose the best day in terms of market situation because we want to be sure that IDO launches in a good market. For that mostly I think that the success of the project depends on the team efforts and marketing efforts of the community and basically as a project concept.
Ralf: I can only agree with Vlad. At the end what happens if a project launches a weak project is launching in best market times or the markets are all exploding and also all coins and they have a hundred x and whatever. If the market breaks down weak projects are also decreasing in value extraordinarily. It’s always only one moment in time, a snapshot of what happens. If you’re launching now and good times come a good project with good substance, a good team, a good track record will be the next rocket. And it doesn’t need to take place right after launch that you have these rockets. This is also not what Scaleswap stands for. We are interested in what a project is doing in six months, nine months, 12 months, 24 months. This is important and therefore, the market conditions it’s one side effect it might not be that spectacular if you are not launching in the best market conditions.
But there are many other factors, all the factors that Vlad mentioned. But also token metrics. So especially in difficult market times it’s important to have reasonable token metrics that fit also to the market conditions. And I think this is definitely the case with the GT-Protocol and all the rest. Sooner or later, every project is in the hands of the market. The market doesn’t do what we want. The market does what the market wants to do. And at the end, we can only concentrate on quality substance delivery and operationally create a good track record, have good marketing activities to flank that and then success will come. No matter the market conditions.
Nelli: I can also add there. Don’t forget there is also very popular quote that many people say the best investment and business opportunities come up during the crisis times. I know a lot of professional diseases are extremely successful that confirmed this on their own experience that the best investments they have ever done themselves were during not the hype times, not the bullish market trends, but in the opposite environment, so don’t be that manipulated by the news and red signs on the market, think yourself over your strategy, banking strategy and what kind of projects you want to support. Are you here for the short term or for the long term and what kind of teams and projects do you envision for the long, mid and long run. It’s important to keep in mind that we are running overtime but before we finish there are so many questions about the upcoming IDO.
Ralf: In general I’m quite straightforward. I think most of the participants are quite familiar let’s say with the process so. There are no big new features. In the past we had a pre-IDO launchpad and stuff like this. There are completely different processes involved but this time it’s pretty straightforward it’s this I’m also a chain that we launched beforehand so in the last launches we were quite often pretty innovative and had new processes and stuff like this but nothing was so special so have a look at the article but we’re also providing in all social media more condensed information about the IDO.
Nelli: Vlad, we wish you great success with your project development, and we are looking forward to your IDO public launch and, of course, product.
Ralf: Thank you very much that you joined this AMA. I think you were able to give a lot of interesting information to the community. I believe the community can’t wait to make a whitelisting and get a seat in the IDO pool.
Vlad: Thank you so much Ralf, Nelly, thank you so much, community. It was a pleasure
for us to represent our project today and we’re really happy to cooperate with Scaleswap. It is a very solid partner for us and we will do best from our side and so if any questions are left you guys can always join our socials and ask our community managers. We will try to
provide as many answers and as many supports as possible and also be happy to test our product that is already live and launched. And good luck in whitelisting hope that you win this option and the possibility to join our IDO. Thank you for your attention!