COTI And Ardana AMA Recap — November 8th, 2021
We held an AMA on the COTI Telegram group, following the COTI and Ardana partnership announcement. Here is the full recap:
COTI:
We are super excited to have Ardana with us today!
Ardana Founder and CEO Ryan Matovu has joined us today to answer some questions about Ardana and the partnership with COTI. COTI business development manager Yair Testa has also joined us today.
Ryan Matovu:
Hello everyone, pleasure to be here!
Yair:
Hi everyone! 👋🏼👋🏼
COTI:
As recently announced, COTI and Ardana will bring decentralized stablecoin payments to AdaPay, meaning that users will be able to purchase goods using their stablecoins wherever AdaPay is accepted.
https://medium.com/ardana-hub/ardana-is-partnering-with-coti-1447879e83f1
Welcome Ryan! We are happy to have you here with us! Before we start, could you please introduce yourself?
Ryan Matovu:
I am Ryan Matovu, founder and CEO of Ardana who has been in the space since 2015. I've been in various roles and made a transition to software development in 2017 which was around the time when I first got involved in the Cardano ecosystem and have been building ever since!
COTI:
Could you tell us more about Ardana?
Ryan Matovu:
In a nutshell, Ardana is a decentralized stablecoin ecosystem built on Cardano.
We are building essential infrastructure within DeFi to enable people to store value and transact efficiently. Ardana falls into 2 sides of the ecosystem, the stablecoin and the stableswap DEX. The stablecoin is an on-chain asset backed stablecoin that is overcollateralized. The DEX allows for highly capital efficient swaps between stablecoins and stable assets.
COTI:
That’s impressive! So from your point of view, what is the COTI and Ardana partnership all about?
Ryan Matovu:
This partnership with you all is about providing access and giving more utility to stablecoins within Cardano. Adapay is interesting to us in that it is one of the first bridges to the traditional space we have seen that is both viable and more secure than traditional means of payment. Our dUSD stablecoin having real world utility in that people can make and process payments with it is what excites us about working with COTI!
COTI:
Indeed, and in the name of the COTI team I can say we are truly happy in partnering with you guys to allow payment transactions with your dUSD stablecoin!
Community:
We saw the rumor that Coti is gonna have a partnership with another big client? So which kind of client is it? When do these rumors come officially?
COTI:
It’s unprofessional on our behalf to comment about rumors or partnerships before we announce them.
Community:
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?
COTI:
I believe that COTI has already proven that it’s here for the long-term. We recently released our growth plan, where we talk in depth about our future plans and what’s coming next :)
Community:
What is the difference between the dusd and djed? How will they benefit each other?
Ryan Matovu:
dUSD is an overcollateralized stablecoin meaning there are always more assets (ADA etc) backing the stablecoin than there are stable coins in circulation. djed is more close to an algorithmic stablecoin which maintains its peg to the US dollar. They both compliment each other by offering different stablecoin options for the Cardano community.
Community:
How will this partnership be beneficial for both parties seeing that they are competitors with 2 different products but with the same use case (that’s the problem), if i’m already using djed for payments why should i use ardana? and which is better then? collateral based (ardana) or algorithmic based (djed)?
Ryan Matovu:
We have a unique use case through operating as a lending protocol as well. You can take your ADA, deposit it into the smart contract vaults and mint dUSD stablecoins against it. Like taking out a loan!
Community:
Will Ardana use coti djed as the main stablecoin or one of many stablecoin?
Ryan Matovu:
Our stablecoin will be dUSD that can be minted from our vaults but there will be different stablecoins on the DEX including djed
Community:
So Ardana issue dUSD like COTI issue DJED and on ARDANA DEX they can be swapped against each other and other tokens. How is this related to AdaPay?
Ryan Matovu:
Yes! And in terms of Adapay, dUSD will be offered as a means of payment there
Community:
I don’t get how adapay is involved and why there is a partnership? In my opinion dUSD and DJed are 2 different stablecoin options, how does this benefit COTI? I just don’t get it
COTI:
Djed and ADAPay are two different solutions.
Ardana is using ADAPay as a crypto gateway to bring usage to their stablecoin and allow end-users to use dUSD for transaction payments.
Having another popular decentralized stablecoin, will help all the crypto space in general.
All merchants using ADAPay in general pay transaction fees to COTI, and all fees will be converted to COTI coin and they will be send to the Treasury
Community:
COTI issues djed stablecoin /stablecoins.
Ardana is the hub for stablecoins of Cardano. What does that mean compared to COTI stablecoin factory and Djed. What is the difference between ardana and COTI in this regard?
COTI:
COTI’s stable coin factory offers clients around the world the possibility to issue their own stable coin on top of the Trustchain. Clients will pay both minting and redemption fees to COTI’s Treasury, as well as network fees.
Community:
Coti will issue more than one stablecoin, right? Some of them are dUSD and Djed?
COTI:
We are not the one to issue dUSD.
Community:
Is dusd erc20 compatible?
Ryan Matovu:
It won’t be initially, it will be a Cardano native token
Community:
What are the main advantages for COTI and Ardana each out of this collaboration
COTI:
Basically it’s the fees that ADAPay will collect.
The more options the end-user will have at the moment of paying with ADA Pay the more transactions ADA Pay will process.
The more transactions we process, the more fees we gather that will be streamlined to COTI’s treasury.
All fees from products built on other networks will all be streamlined to the Treasury.
Everything built on Cardano, like ADA Pay, will also be converted to $COTI and then placed in the Treasury (ADA will be converted to $COTI)
Community:
Will Ardana launch other stablecoins besides dUSD?
Ryan Matovu:
Yes we will. After dUSD, other stablecoin currencies will be offered
Community:
Are there more collaborations besides ardana using Adapay?
COTI:
Of course, we already announced quite a few in the last few weeks and we are closing new ones on a weekly basis.
ADA Pay is growing and at a very good pace! 🚀
Community:
What returns are we looking at for dusd?
Ryan Matovu:
Fees from the stablecoin vaults and the DEX go back to the community through staking our DANA token
Community:
What type of collateral will be backing the majority of dUSD?
Ryan Matovu:
This would be ADA
Community:
That’s great to hear, especially when regulations are targeting stablecoins backed by the dollar
Ryan Matovu:
Great point. We will be fully decentralized which is a plus in terms of regulation which centralized custodial stablecoins are the target of
Community:
How do you see the difference in dUSD and Djed when it comes to regulation? Advantages, challenges?
Ryan Matovu:
Both stablecoins are decentralized so will exist in a safe space regarding this
Community:
Will the future Ardana DEX platform be able to use Adapay to convert crypto to fiat?
Ryan Matovu:
This isn’t currently in the plans but we are open to and will be exploring further ways to collaborate with COTI.
Ardana will have its own fiat gateways though in the DEX and stablecoin enabling dUSD to fiat dollar conversation and the same with our other currency offerings.
Community:
When will this project deploy/happen? Will we be seeing changes this week?
Ryan Matovu:
Our token launch is very soon in the coming weeks and the platform should be going live later this quarter!
Community:
Is ardana part of IOHK or is it completely separate?
Ryan Matovu:
We are a separate project but IOHK has invested in us through their CFund investment arm as they have with COTI as well
Community:
will dUSD also be available on CEX’es?
Ryan Matovu:
Yes eventually it will
COTI:
We can see that there is a bit of confusion on how all these partnerships around ADAPay are going to work, hopefully all the questions answered by Ryan and myself helped clarify.
This is a very interesting and exciting partnership that will benefit Ardana, COTI and all the crypto space in general!
We will work on a better way to better explain the flow of things to be water clear for everyone 🙂
COTI:
Thanks everyone for joining us today and many thanks to @crypt10crypt 🙏🏻
Keep up the great work with Ardana! 🔥
For all of our updates and to join the conversation, be sure to check out our channels:
Website: https://coti.io
Twitter: https://twitter.com/COTInetwork
Telegram: https://t.me/COTInetwork
Github: https://github.com/coti-io
Discord: https://discord.me/coti
Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf
