Interview with Mr. Le Thanh (Part 2): Investment orientation when the market is downtrend

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Continuing with part 1 about the perspective of the project developer in the downtrend, part 2 will talk about investment-oriented solutions when the market is downtrend.



Hope the interview will give you a more overview and multi-dimensional view of investment orientation!

Note: The article is the content of the interview of Trade Coin Viet Nam and Mr. Le Thanh (Founder Coin98 Finance)

Stablecoins and the potential to "untangle" the knots​

Q: Currently, a lot of stablecoin protocols are offering liquidity incentives. Even so, the rewards for liquidity providers are usually derived from swap fees. The swap fees of stablecoins are usually not very large. Is this contradictory and what makes stablecoin protocols go so far?

War of stablecoins
The stablecoin war is a never-ending war, occurring most commonly in Lending protocols. A lot of ecosystems are trying to pay high incentives and rewards along with low fees to attract users to provide liquidity.

Ecosystem promotion programs are always launched
Stablecoins are assets with low price volatility and backed by reputable institutions. Therefore, providing liquidity in stablecoins is considered low risk. For products or tokens with high volatility, the associated risks are similarly high. Users only capture these assets if the profits and rewards are commensurately high.

In the traditional market, USD is a highly safe asset because it is guaranteed by the State Bank. For the crypto market, compared to other coins/tokens, stablecoins are the assets with the lowest risk (the possibility of losing the peg still exists).

In turn, if comparing the interest rate when depositing USD in the bank is 2-3% and the APY of stablecoin is 10-20%, then accepting a higher level of risk than the traditional market is completely appropriate.

The role of stablecoins
Going back to the protocol development perspective, the team will not focus on fees but on transaction volume. Usually, the transaction volume of stablecoins will be much higher than that of other tokens and has a more sustainable development level, so it makes sense for protocols to choose a low fee.

However, if the fee is completely reduced to zero and continues to reward users, it will create an unsustainable development. So stablecoin projects are trying to maintain this stable economy.

Instead of paying for marketing, they will pay users to join the community to use the product. The part of the reward fee for the user or the liquidity provider is considered the cost of paying for marketing activities.

Protocols can pay high rewards over a period of time to attract users. However, once there is a large and sufficient user base to develop the protocol, it is possible to gradually limit the budget for this. Then come up with more reasonable policies to focus on building products in other areas.

I think the reward sources for stablecoins are high but will not continue to be high in the future, can be lowered to reach a sustainable level. However, protocols that now trade that high reward for marketing will attract more users to their side.

Q: Coin98 stablecoin towards USDC or UST?

The top priorities for stablecoins are to be stable and secure. It will then aim to add value to the protocols in the ecosystem.

For Coin98's approach, safety will be first and then liquidity. Grow at the fastest possible pace but within the framework of sustainability. I don't trade fast with being unsustainable.

Let's say, attract users by staking and paying rewards at 50% or 30%. This will work in the short term, but will not bring real users and is not sustainable in the future. The source of assets when staking does not bring enough surplus value to pay for the user's reward. If this happens continuously, the business will go bankrupt.

Coin98's stablecoin focuses on Cross-chain Liquidity to help solve the problem of reward when users staking and the need to transfer assets.

For example, a user has token A in chain X and wants to swap to another chain that has no liquidity. At that time stablecoin provided the solution and users only need to pay a fee for this to make it more convenient to transact.

These are the needs that create surplus and value for the ecosystem. When there is a profit from the revenue source, the project can deduct a part to reward users who are staking tokens.

Over time, as the number of users increases, revenue increases and surplus value is created, the project can bring more value to investors, users and community members. . This creates sustainable development.

Instead of just following the trend and clinging to this short-term cash flow to maintain, Coin98 builds a model that helps the ecosystem to grow for many years to come. This is what I'm aiming for.

Besides, the reason I make stablecoins is because I see that the problems of Cross-chain Liquidity can be completely solved with a stablecoin. Stablecoins are a great solution.

There are currently no stablecoins on the market that have captured this opportunity. I think Coin98 will be the pioneer to solve these problems. Thereby will create a new source of revenue for Coin98 holders.

Q: The upcoming direction of Coin98 is leaning towards Fat Protocol, Fat Dapp or Fat Wallet. With the development of technology and the development of economic and financial factors, which model will bring higher efficiency?

Coin98's ever-expanding product development direction
Explanation of the above models:

Fat protocol is a protocol built to integrate into different branches, adding value to the protocol.

Layer 1 is an example, all products built on Layer 1 eventually have to make paid transactions in Layer 1 tokens to add value to Layer 1.

Coin98 favors a “mix” between Fat Dapp and Fat Wallet, which focuses on applications and Wallets that have the closest relationship with users to navigate the use of the product.

In the case of StepN Fat Dapp has been successfully applied. StepN uses Orca 's underlying platform - DEX on Solana. The question is, why does StepN use Orca's and not other DEXs?

Orca is holding a large user base on Solana. Orca uses its resources to direct users to the products built on it. If StepN not only wants to develop on Solana but also wants to expand on BSC, the protocol will develop on other chains, not just a private chain.

Fat Wallet is like Fat Dapp: is a wallet application that owns a large number of users, tends to suggest users what application to use.

In the future of Multichain or Cross-chain, users will not be too attached to a single chain. The integration of many chains and many products is an inevitable thing to serve users. Such demand will continue to grow and Coin98 will try to follow Fat Wallet as well as Fat Dapp.

Coin98 will sit in between Fat Wallet and Fat Dapp . In the future of Multichain or Cross-chain, users will not be too attached to a single chain. The integration of many chains and many products is an inevitable thing to serve users. Such demand will continue to grow and Coin98 will try to follow Fat Wallet as well as Fat Dapp.

Coin98 - future and vision​

Mr. Le Thanh shared about Coin98's vision
Q: Is Downtrend Coin98 still expanding in terms of personnel?

As a habit in the bear market, Coin98 started to scale harder. Currently Coin98 has more than 100 employees, with many vacancies.

Recruitment link: https://coin98.breezy.hr/

If you feel that you fit the culture of Coin98, feel free to send your CV to the vacancies and have the opportunity to accompany the team. Coin98 is trying to create a young generation that is truly passionate and wants to build a new inspiration in the industry. The goal this year or next year can be around 200 300, focusing a lot on product development.

The team is always prepared and always the best to embrace the next cycle of the market. People may think that Coin98 has achieved many different successes, but for me, there are more directions for future development.

Coin98 puzzle pieces
Lots of billion dollar businesses in the market. However, the growth potential is still long. When crypto goes into mass adoption, there will be hundreds of billions of dollars, even trillions of dollars, businesses that will be born.

Currently Coin98 is just getting started and there is no reason to stop. Coinbase over 10 years and Binance over 4 years.

To win the game on a global scale, it takes a lot of concentration and the contribution of many “good warriors” to fight.

It doesn't matter if the problem is 10 years or 20 years, what matters is that I achieve the things I dream of!

Q: In the downtrend market, most investors are quite sad, do you have any advice for everyone?

The strong growth market has very high noise, users are easily caught up in bad factors or components. Therefore, the bear market is a perfect time for users to have time to improve their knowledge, have more clarity, balance their portfolio and hold tokens with long-term growth potential.

Besides, the bear market will also remove the components that are not real builders, almost completely purge them to create a sustainable economic model.

Through ups and downs, teams that spend a lot of time building, maybe 2 or 3 years or more, have caught up with the uptrend. Since then, achieving high profit margin, hot revenue growth in a short time.

Hold! Improve knowledge! Instead of short-term, invest in projects with long-term vision and development potential!

The interview ends here. Hopefully, my sharing will help you have a longer-term vision in the future.

Review the P2 Podcast here .
 

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