The Russian Roundup Presents: Analysing Passive Income With Aleph Finance — 14/05/22 👉19:30 UTC
“Passive Income” has an interesting role in the cryptocurrency markets and they have faced serious scrutiny for not having sustainable reward schemes and many more other concerns.
Despite all those questions, there is a genuine use case for nodes and when done correctly, they can be very useful. If you haven’t already you should familiarise yourself with our Nodes 101 For Dummies for some additional insight into node projects 👉https://therussianroundup.medium.com/the-russian-roundup-presents-nodes-101-for-dummies-4-cd2b6bcb3ef1
Today we have a new project aiming to differentiate from the misconceptions about nodes built on one of the more popular chains Avalanche. Aleph Finance is a hybrid Passive Income Protocol launching on #AVAX bringing safe & sustainable passive income to all which quickly gained a lot of attention spiking our interest to see what it’s all about!
So without much delay, we present:
Russian DeFi: This is probably one of the more let's say intriguing articles I’ve done due to generally not being too familiar with nodes as a whole but Sage actually got me looking at Aleph Finance and here we are.
If we could just get an introduction to the Co-Founder of Aleph Finance.
Aleph Finance (Sungod): Hi, I’m sungod and I’m the co-founder at Aleph Finance.
Russian DeFi: Hey Sungod! I'm glad you could join me to provide this article for the community but without further delay let’s get straight into it.
What led you to personally find an interest in bringing your expertise to Aleph Finance?
Aleph Finance (Sungod): I was working across a few different protocols as an advisor, creative and all-around problem solver. I built up a good network of people and eventually met Adam Peled my co-founder, who has a software development agency and was looking at getting exposure to the blockchain. So I decided to take a break from my other career and go down the rabbit hole with Adam.
Russian DeFi: Wow, everything that is great has a natural foundation and it’s clear you guys have tapped into that id like to ask more about the overall project you are contributing your time to Aleph Finance.
After doing some digging, Aleph Finance disclosed itself as a “Hybrid Passive Income Protocol” what does that mean to you, in your vision of what Aleph Finance is as a project?
Aleph Finance (Sungod): Basically, we didn’t want to abstruse the protocol to the point commercial markets didn’t understand. I know there’s a saying in defi “ape first, ask later”, and as someone who pretty much lives by that, it’s not the risk tolerance of most of the world.
We wanted to create an umbrella for people to enter and start earning passive income. We call it a passive income playground amongst the discord and AMA’s.
There are many philosophies at play but the average user isn’t concerned so much with it, they just want something they can trust to get results without having to understand every moving mechanism.
Our end goal is to hit the tradfi market and become a streamlined onramp into defi, something my mom could understand. This will not only be within the node wrapper, see that as an entry ticket to a much larger ecosystem; it will expand into staking, vaults, a wallet tracker and all sorts of other options to grow your wealth. Check out our roadmap in our whitepaper.
Russian DeFi: I think understanding what commercial market participants are after as well as what drives them away puts the Aleph Finance team at a major advantage.
You mentioned a range of products which you have intertwined within your ecosystem and it leads me perfectly into my next question surrounding the “Aleph Tracker” which is as you said a tracker for all nodes.
I’m a big fan of products that aim to revolutionise the tech we use in crypto and the Aleph Tracker seems like it could be one of those products, can you go into some detail about that product you guys are building?
Aleph Finance (Sungod): The Aleph Tracker was something we felt the space needed. A place to see all of your passive plays in one place in addition to the rest of your wallet assets.
We want to expand it into showing ROI/ROT predictions, overall profit margins and other metrics to help you throughout your crypto venture. This would be something that brings people to our protocol and gives it some instant utility.
We’re exploring things such as investors in our protocol paying small monthly fees and then getting the full version of the tracker with it. Maintenance fees are common in this niche but we felt it was only warranted given we could provide an additional product for our investors.
Russian DeFi: Keeping track of a market as rapid as Crypto is almost impossible so it is innovative to see Aleph tap into the more “participant simplification” angle of the market which is often ignored.
Going into the more technical aspect of the project, a great thing about Aleph is that you guys decided to build on Avalanche, which is a popular ecosystem that so astronomical growth, How did the Aleph Finance team conclude Avalanche was the place to build?
Aleph Finance (Sungod): We believe Avalanche to be a top 5 network in the coming year/s, with great infrastructure and an incredible team, the choice was obvious.
Russian DeFi: As you would understand yourself, the crypto space is filled with atrocious bots that in my eyes ruin credibility. Aleph has grown a loyal but large community, what do you think about Aleph has led to the immaculate growth pre-launch stage?
Aleph Finance (Sungod): Our launch was at $50 with a 10mil market cap so bots were already not expecting a moonshot 10x or anything on launch. We also kept hidden some of our launch mechanics so that bots were not able to plan for this.
There were tons of new discord members that came in asking all sorts of questions about “do we need to have a node to sell”, “what is the sale tax”, etc. We said anyone who is buying into this protocol will not be hurt, and we kept the rest close.
It pissed a few moonboys off but after the launch hour passed, you can see why we did it that way, and our chart shows it. There may have been a few bots from the start but our tax + max buy per wallet with our warranted ambiguity over our launch mechanics curbed 90% of it.
Russian DeFi: The tokenomics were extremely interesting and the sell taxes were certainly wise to protect the price to avoid any circumstances of a ‘dump’ situation. I also think the launch was done very well and the price reflected.
I was a sceptic around nodes due to many different questions that we will get into but there are so many different avenues you can look at them and with the alleged “node season” slowing down with the rest of the market, How is Aleph Finance planning to maintain an order of sustainability through a hypothetical bearish market?
Aleph Finance (Sungod): Nodes got misconstrued mostly. There are two types of nodes, one being nodes running duties for a network such as POKT, Myria, etc. and there are ‘nodes’ that were I guess coined by Strongblock as more of a NaaS wrapper, something that was simple to understand, people could get basic rewards while allowing them to contribute to blockchain infrastructure how they choose.
Nodes were then taken by lots of different people for different intentions, and 90% of it was littered with high APY promises that were never sustainable, to begin with, and when they all came crashing down inevitably, people saw them as scams and to stay away. We’re now at that post-node settling of the dust.
We can call them nodes, wrappers, boxes, containers, whatever you want. The process you’re doing is a locked stake. It has nothing to do with the name or the way the rewards are delivered. There’s no difference to normal staking other than you’re avoiding more mercenary liquidity as it’s a lot more locked contribution with a long term relationship between protocol and investor, this is why trust is more important than anything. The ‘node’ name was hurt in the process of this loss of trust, but we’re here to just redefine it and create around it.
Our phase 1 is more of an entry ticket, something that won’t go forever. It’s the start of a wider ecosystem.
Our tokenomics are already on the more sustainable side of 1% a day, so the ROI is a little slower than some staking pools even, but a lot safer. We have additional mechanics such as token lockups that range from 14 to 56 days, with auto compounding locked on for the longer lock called ‘Aleph Mode’.
Our sliding tax is a 15% down to 0% based on the last sale, so this synergy between the two incentives loyalty and long term profit-taking, and the more people lock, the safer people feel. On top of this, the locking mechanism gives us predictability of when sell pressure may occur, and we can plan for this accordingly. Add to that the utilities and expansion from our roadmap, and we’re at a good foundation to build on. We’re here to build a fully-fledged ecosystem and will never be relying simply on a negative loop system, and we’re committed to achieving that.
Russian DeFi: On many occasions, there have been so many different market misconceptions on many different narratives and the great thing about market flushes is that we get to identify the protocols and dApps that survive the test of time.
Seeing Aleph Finance striving to redefine what passive income is and the way they are perceived is an interesting task that you guys have the blueprint for.
As you can tell, I have an obsession with decentralised finance and how it rebalances the financial system however, analysing the roadmap something that stood out to me was how the team wants to extend to tradfi, let’s talk about how you guys aim to develop that bridge?
Aleph Finance (Sungod): We are going to build a frictionless fiat on ramp/off ramp to crypto investments, starting with conservative products like stablecoin farming wherein the TradFi investors don’t need to know anything about the complexities of crypto, they will just ACH/credit card transact with our app and in return start receiving stable APY returns that are higher than what they’re getting elsewhere (5% give or take).
For the near future, we will use 3rd party providers to support it and over time reduce dependency on those.
Russian DeFi: That always seems to be the issue with defi as there never really seems to be a degree of sympathy for TradFi investors due to that lack of knowledge in defi.
There are some cool ways people can optimise their rewards like the lockup strategy and the Aleph Mode strategy but I love the concept of the NFTs, how can users benefit from owning an NFT and how the idea to incentivise your NFTs with the protocol come about?
Aleph Finance (Sungod): We saw it as a great marketing tool and to show conviction in our brand, at the same time offering our most loyal investors a chance at increasing their yield.
It helped with our overall raise and was something that the community loved. We have another 140 NFTs coming very soon, our Gimel Deities that boost your yield by 5%. There will also be more perks along the way as our ecosystem expands for all NFT holders.
Russian DeFi: I think certainly even the art of the NFTs is exceptional and certainly is eye-catching which is something that has been abandoned by NFT collections.
It’s an interesting concept to boost yield but finally to conclude what has been a great AMA and chat, Congratulations on a successful launch id like to ask what can those who got into Aleph expect from the team next?
Aleph Finance (Sungod): investors right now can expect our flagship node holding with token lockups + auto compounding. NFTs to complement the portfolio, and a slick GUI to make the experience all the more simple.
Our phase 2 starts with more entry-level investment options coming in the next 5 days which should see a lot more volume due to the increased accessibility.
You will have options of entering our passive protocol from $138+, 1–7 nALEPH options. The Aleph Tracker is around the corner, and then expanding into staking and vaults soon, with some OTC options next.
Russian DeFi: I'm certainly looking forward to seeing in which ways the team can continue to expand and grow to fulfil all those objectives.
I'm going to share some links to where the readers can find Alpeh Finance’s links: