Thank you to the Infinity Chain for participating in Ask Me Anything (AMA) with Defactor September 30, 2021. This guest star,

  • Bhairav Patel — Tech lead


Bhairav :
Pleasure to e-meet you too!

My name is Bhairav Patel, I’m the tech lead for Defactor

I’ve been the CTO for a number of businesses around the world, including a supply chain finance company that hit the Forbes FinTech 50 list in 2016

Overall, I’ve been in tech for 20 years, 10 of that in FinTech

My blockchain journey started with that supply chain finance company where we were looking to use blockchain to finance companies

The market and tech wasn’t quite right then, it is now, and so we started Defactor!


What is Defactor? Can you share with us more in detail?

Bhairav :
Defactor is a platform that bridges the gap between traditional businesses and DeFi

The platform itself allows companies seeking finance to tokenize their assets and obtain funding from DeFi liquidity pools

We perform due diligence on companies seeking finance, conduct credit risk analysis on the assets they propose for funding and then funnel those assets into liquidity pools for financing. We also handle the crypto / fiat conversion which means that companies that want to access DeFi liquidity do not need to have any blockchain knowledge or infrastructure

Also, around Defactor is a vibrant ecosystem that will provide value added services to companies on our platform i.e. insurance, collections services, data oracles etc

What triggers you to launch Defactor? What are some of the real-world problems/ pain points that Defactor aims to solve?

Bhairav :
Businesses need funding this is something that has been true for many years, according to a recent EuroMoney article, the trade global trade finance gap could reach $2.5 trillion by 2025

What we see in the market is that banks are lending less and pulling out of certain countries and territories where they think the risk is too high

With Defactor we’re giving businesses a viable alternative to traditional finance by giving them the tools they need to access DeFi funds — at scale

We’re also helping nurture new business models that have sprung up from the growth of DeFi — think of the current NFT boom and the projects out there looking to tokenize real estate etc

We believe that Defactor will put DeFi on the map as a viable source of business financing

Can you tell more about $FACTR tokenomics and use-cases?

Bhairav :
I can indeed!

The $FACTR token will be required by real world asset originators to access the Defactor services creating an increasing demand for the token as the demand for the Defactor services rises and more asset originators are onboarded

It will also act as a governance token

In order to participate in the governance of the Defactor ecosystem, token holders must stake their $FACTR incentivising token holders to participate in the Defactor network

Through community based governance $FACTR holders can influence changes to the tokenomics, the protocol fees and they can even influence the types of asset classes that can be accepted by Defactor

One of the most unique features of our tokenomics is our Buyback-and-Make model

You’ve probably heard of buy back and burn but this is not something we believe in, we think that our more modern tokenomics model allows us to reward positive actors that exist in the ecosystem with the $FACTR tokens that we buyback

Who are Defactor current partners and backers?

Bhairav :
The first partnership I have to mention is our partnership with Centrifuge

Centrifuge is a liquidity provider that finances real world assets, but not all asset originators have the infrastructure or knowledge to deal with organizations such as Centrifuge

This is where Defactor comes in

We simplify the process for asset originators and make it easy to access DeFi liquidity

We are also partnered with Consol Freight, which is a valuable partnership as they have already started onboarding real world assets to DeFi

We also have partnerships with companies such as LendWise, Accelerated Payments, iHuddle and Black Manta that have assets that are ready for funding

We have an important partnership to announce today that will be announced in our social media channels soon after this AMA

I’m sure many people will be interested in, so tune in to our social media platforms!


Are there any exciting news or updates with regards to Defactor that you would like to share with us here?

Bhairav :

First thing I’d like to mention is our TGE, we’re preparing for the launch this year and if you are interested, you can subscribe to this list to be the first to hear when the date is set and how you can participate

The next thing is the exciting partnership I mentioned earlier, stay tuned to our social media channels for this

The last thing I’d like to talk about is Springpad — this is our programme which takes smaller asset originators and takes them through the DeFi funding process

The programme will be open in a couple of weeks so again, stay tuned to our channels to hear more information

We are all very excited about all of this and we would love for you guys to join us on the Defactor journey!


I see the in the Phase 1of Defactor roadmap that you were launching a Springpad. So,can you tell us more about this Springpad?What is the main use of Springpad in Defactor? Can you tell it’s function in your network and it’s features? Thank you

Bhairav :
We’re very excited about Springpad, the idea behind it came from the discussions we were having with a number of smaller asset originators

Those companies were looking to access DeFi liquidity but they were unsure about the process and needed to know more about how things worked

We decided to come up with a streamlined version of our main onboarding process which would focus on smaller deals where there would be more hand-holding of the asset originators and where we could work together with them to help them understand how the funding process works by funding a pilot deal

We then realised that this was a great opportunity for us to use the Springpad not only for smaller asset originators but to attract businesses that have new business models that are geared towards DeFi and for us to test out how different asset classes could be funded via the platform

The way that Springpad will work is that there will be regular times of the year where we will open up the platform to smaller businesses seeking funding.

Those businesses will apply via our website and we will review their application, perform some due diligence and ultimately select a handful to progress onto the pilot programme

Once selected we will showcase them to our community so that they can interact directly with token holders and potential future investors

Ultimately the aim is that once they have been through this process they’ll be onboarded onto the full Defactor platform and can start funding their assets

Regarding “Defactor Crypto Fiat Bridging”, can you share the specifics of how it works? Is it accessible globally? What FIAT currencies will it support? What payment methods are available to users?

Bhairav :
Great question

The term “Defactor Crypto Fiat Bridging” refers to how asset originators receive fiat currency from the liquidity providers in the crypto space, through Defactor

Defactor is all about simplifying access to DeFi for traditional businesses so we’ll be handling the crypto conversion on behalf of our asset originators

It will be accessible globally though and the main currency we will support initially is the US dollar

Defactor facilitates the growth of DeFi by allowing companies from all over the world to access good DeFi. How do you convince these companies to use DeFi, when many governments oppose/ban this type of finance? How did Defactor convince them and solve it?

Bhairav :
Go for it!

Many traditional businesses today are looking for a way to finance their assets because the current system can’t support them

We already have many businesses reaching out to us to explore DeFi as a viable alternative

We are of course aware of the scepticism to DeFi among certain countries but we have robust KYC and AML processes in place as do the liquidity pools we work with

We also have a great legal team working on the project’s behalf to ensure that we stay within the regulatory and compliance frameworks set up in the jurisdictions we will operate in

All of this will help ease the mind of businesses seeking finance

I see the Defactor governance model will use a signaling and support methodology that will allow holders to have a say in the development of the Defactor ecosystem. How much $FACTR does it take to gain rights in the Defactor governance vote? How does governance model work?

Bhairav :
To take part in Defactor community governance an individual has to hold and stake $FACTR tokens

Currently there is no minimum number of tokens that will need to be held

The staker will then be able to influence decisions such as changes to the tokenomics, the protocol fees and types of accepted asset classes

The $FACTR token will be launched on Ethereum, As a result, the major difficulty with comparable sites is that the gas fee and the cost of buying items can be quite expensive. How do you plan to lessen the impact of gas prices on transactions and buy?

Bhairav :
This is another great question

In the future the $FACTR token will be available on various blockchains in order to take advantage of a wide range of liquidity providers

It will also give us the choice between the competing platforms and we can choose whichever platform is the most appropriate for an asset originator, taking into account factors such as fees and efficiency

For the tokenization of assets we are using different chains to mint NFTs depending on the liquidity pools i.e. CentrifugeChain for Centrifuge and a gasless sidechain for Springpad

We will be working with different chains that have liquidity pools we can connect to, to ensure that the cost of funding is kept to a minimum


From the explanation above, Defactor is a promising project. What do you think is the role of the community in your project?

Bhairav :
The role of community is very important to us. We want the community involved as much as possible. With the Springpad we will give asset originators the opportunity to showcase themselves and their deals and for larger asset originators we will host AMAs and more interactive sessions so the community can get to know the companies using the platform

Ultimately we want the community to be actively involved in suggesting new features, suggesting new asset classes etc

Community is at the heart of Defactor

Token burn is important to increase value and price a token? do u have buy back or maybe burn system and how does it work??

Bhairav :
We use a Buyback-and-Make model. Buy back and burn is an outdated system, where burning of tokens has no positive effects for the ecosystem. The modern tokenomics model we use allows us to reward positive actors that exist in the ecosystem with the $FACTR tokens that we buyback

this means we maintain the benefits of a fixed token supply while being able to continuously issue tokens to positive actors, meaning there is always an incentive to contribute to defactor

Revenue is an important aspect for all projects to survive and maintain the project. How have you been able to build a complete project and what is the way to generate profit? What is the income model of this project?

Bhairav :
We have built multiple revenue streams in our project.

AOs are required to buy $FACTR token in order to access the platform and also pay fees for the services that they will be using.

On top of that, we will be charging a percentage for the amount of money placed by the AOs.

Our idea is to have multiple features and partnerships with 3rd party supplier that will make the life of AOs easier and it will allow us to build a more robust revenue model.

Can you tell us about your team members? are they qualified and professional in their fields? what are the recruiting qualifications for team members for your extraordinary project?

Bhairav :
Our team members are all very experienced not only in finance but in DeFi, the Commercial Lead and Operations Lead were the first to bring real world assets to the DeFi space using funding from MakerDAO through liquidity pools on Centrifuge

I and my team have built the infrastructure to get funding for assets via DeFi and the tech team behind Defactor also built a Forbes FinTech 50 business that focused on supply chain and trade finance

On top of all this we have a very experienced advisory team that have been involved in DeFi and Finance for a number of years

Defactor has several risk management tools and protection through insurance for investors, what are these tools and how efficient and fast is the insurance process?

Bhairav :
We manage risk at two levels, firstly we perform due diligence and risk assessments on the asset originators to ensure that we are bringing reputable companies to the platform

We then also perform a risk assessment on the assets that they bring to the platform

On top of that, the platform automatically manages the covenants that are put on the liquidity pools by the funding providers to ensure that the risk to the investors is minimized

When it comes to insurance, the asset originators we are working with currently have their own insurance mechanism and we are also talking to providers of parametric insurance for certain asset classes

Thank you for trusting Infinity Chain as the organizer of the event today, hopefully everyone can understand about Defactor.

Join our Telegram Group and you can talk directly with other Communities and enjoy some of the events that we created. We are always here to support.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store