Unreal Finance AMA Recap with Satoshi Club

Ishan Garg, the Founder of Unreal Finance, was live on the Satoshi Club Telegram group on 27th April, 2021, to provide the community with information about Unreal Finance project, specifics on recent collaborations and upcoming updates, as well as to answer questions and queries.

The AMA session was moderated by Gold Rocket and D., Satoshi Club community Moderator.

This article has been divided into three parts to ensure clarification for my readers; the first section details the questions posed by the session’s moderators (Gold Rocket and D.), the second segment details the questions posed by telegram group moderators, while the third segment gives account of questions asked by community members.


Gold Rocket — Hello, dear Satoshi Club! Today our guest is Ishan Garg from Unreal Finance!

Ishan Garg — Hi everyone

Gold Rocket — Introduce yourself. How did you get to be involved in crypto & Unreal Finance?. Tell us please about yourself and your position in Unreal Finance.

Ishan Garg — Hi everyone, I am Ishan Garg, founder of Unreal Finance. Prior to Unreal Finance, I was the head of BD for OKEx India.
Like everyone else, I too was quite active in the yield farming space during Defi summer and kind of noticed the frustrating problem of fluctuations in interest rate and this problem led to the solution which would later the basis of Unreal Finance.
Unreal Finance tokenizes the future yield of an underlying protocol effectively creating a new synthetic asset class — something similar to interest rate swap markets of traditional finance.

D. — So you decided to start this project not long time ago? are you working alone, or you have team partners?

Ishan Garg — We are a team of 4 people — 2 brilliant smart contract developers and some amazing marketing people.

Gold Rocket — Are you an anonymous team?

Ishan Garg — Not really. We are currently updating our website with the new information.

Gold Rocket — Tell us about the benefits of Unreal Finance. How is it different from others platforms?

Ishan Garg — Sure. One of the biggest benefit of Unreal Finance is that Unreal Finance allows people to lock-in their interest rate in lending protocol/farm — that is even if the interest rate drop, a person gets their desired interest rate.

Moreover, users can now speculate on the interest rate (long interest rate or short them depending on the market) in a more capital efficient way.

One of the key difference between us and lending protocols/farms is that we allow the above advantages — Moreover, through Unreal Finance a user gets the entire interest rate upfront which they can reuse in a different lending protocol, thus maximizing their earned interest.


Moderator — You talked specifically on the fact that your company is an on-chain decentralized yield futures platform with a mission of allowing people to “earn future yield instantly”. We all know that crypto is not a get rich quick scheme and the fact you used “future” and “instant” in the same sentence, is it not a form of enticement to newbies and only help them loose their money. How do you plan to help them earn future yield instantly, do you plan to trade shitcoins that does not have 100% trust?

Ishan Garg — The reason why we say “earn future yield instantly” is that a person gets a synthetic token on their deposit that tracks the amount of yield generated by their deposit. This yield is yet to be generated hence the word future.

This synthetic token can be sold on any AMM for pure cash anytime the user wants (even after depositing) hence the word earn instantly.

Moderator— Will Unreal Finance use his own token? Please share more on the tokenomics.

Ishan Garg — Yes! Unreal has its own native token UGT. As for the tokenomics we haven’t made it public yet, we will be releasing to the public shortly.

Moderator— One of the promises of Unreal Finance is fixed interest rates. On other projects, we are seeing the interest rates and APY’s changing over time depending the liquidity on the pools. What are your technologies for providing a fixed rate of interest and can you share the expected minimum APY for your pools?

Ishan Garg — The minimum APY depends on the APY provided by the underlying protocol — for example in Compound we see APY’s from 2%-24%.

For fixed interest rate, we have introduced a unique three token model. This unique token model separates the principle and the future yield. For eg: if you deposit 1000 DAI on Unreal FInance, the protocol generates two tokens — 1000 UOS, which are the ownership token, which tracks your deposit and 1000 UToken which track the yield generated by the deposit. Assuming the current protocol is Aave and the current interest rate is 33% APY, the user can effectively sell the 1000 UToken for 330 DAI and get the interest rate upfront, effectively locking your yearly interest rate.

Moderator — So we can deposit funds directly into your platform? without needs to use Compound and Aave for example?

Ishan Garg — Yes, we act as a layer on top of Compound/Aave.

Moderator— I read that Unreal Finance has UToken is a synthetic token minted by the protocol generated by the protocol and UOS is the Ownership Token for Unreal Finance. What functions and purpose do they have, users should own both tokens, how can they get them, and are these two tokens enough?

Ishan Garg — Sure! As soon as you deposit on Unreal Finance, two tokens are generated UOS and UToken, UOS is the ownership token, that is it represents your share in the total deposited funds. While UToken tracks the yield generated by your deposit from the total yield generated depending on what kind of strategies you want to perform you buy/sell/hold these tokens.

Moderator— I was reading your future plans and I saw that you are actively working on “Layer-2”, can you tell us a bit about this new implementation? What benefits will you bring to Unreal Finance? Since when are you working on this improvement? And finally, can you tell us when it will be released approximately?

Ishan Garg — Of course! although, we are fairly early in L2 implementation. We want to bring a new architecture there, we want to keep funds on L1 but allow users to trade and manage positions on L2, we will share more updates as we progress with our community in the coming months.

Moderator — You can tell us if there is any type of insurance when making any type of loan within Unreal Finance, that is, you or another external entity takes charge of the installments of said loan if the holder is in any situation that prevents them from paying them?

Ishan Garg — Users can sell their future yield instantly instead of taking a loan through Unreal Finance, much like how alchemix does it. we do not deal with the borrowing side of things, so there’s no liquidation or other problems associated with borrowing.

Moderator — To achieve the revolutionizing of decentralized lending space will be not easy and that’s why a project like Unreal Finance must have strong partner. Can we know which project/firm that already makes agreement with Unreal Finance? How are the criteria if other want to join partnership with your project? And what do you expect from partnership?

Ishan Garg — Partnerships are key to Unreal’s success and we would be spending considerable amount of time building new partnerships in the industry. One of our first partner is Unilend Finance, which is one of the fastest growing lending protocol in space. And lending protocol/farm that generates a future yield is a potential partner for Unreal Finance. One of the first criteria we are going to look at is the TVL of the protocol as higher the TVL more robust the protocol.

Moderator — Are you looking for partners only on Ethereum blockchain? or you are ready working with people from BSC etc?

Ishan Garg — Currently it’s of ETH blockchain, once we launch on BSC we will start partnering with BSC based projects.


Community Question 1 — Is there any minimum or maximum deposit at Unreal Finance Platform to generate UOS and UToken?

Ishan Garg: While there is no min deposit — it would be advisable in the initial launch to put in a big amount on to offset the gas fee until our L2, and BSC chain go live. As for the maximum amount, there will be a pool limit.

Community Question 2— Is it true that the protocol will be governed by token holders through proposals, why is this so? And why also go with the name Unreal?

Ishan Garg: So Unreal is a short form of -Unrealised Yield.

And we wanted to also play with words — like once we get the interest rate upfront we can say — “mate, the profits are unreal”

Community Question 3— What is the development phase of unreal now. Many new projects make a good impression at the beginning, but are suddenly responded to. How will you manage your project to gain a place in the market and become the best token in the blockchain world, Can you explain to us?

Ishan Garg: We are working on releasing the public beta and will update you more on this soon. One of the strategies which we will be employing will be of partnerships as more partners we have the more bigger unreal finance will become.

Community Question 4— What does your project aims to solve the problem in real life of blockchain? In other word also why DEFI needs Unreal Finance?

Ishan Garg: The biggest problem of decentralized lending is that the interest rate isn’t fixed through Unreal you can fix your interest rate — while also speculate on the interest rate of other protocols.

Community Question 5— Unreal platform allows user to receive profit by using margin trading, but have you considered integrate more types of Derivates Markets ? Like futures or perpetual ?

Ishan Garg: They can be integrated of course, and we would welcome the community to build new financial products on top of Unreal’s future yield tokens.

Community Question 6— How can users be part of the success of this project, are we allowed in any governance activities like voting.

Ishan Garg: Yes, holding $UGT will give you the right to vote and govern the protocol. Oh and also earn passive income.

Community Question 7— What are Unreal top priorities in 2021? Can you share some of your plans for the coming year? Which part of the project are you focusing on most now?

Ishan Garg: Our current priority is make the public beta live so our community can test and play around with Unreal Finance. Our 2021 priority is make the platform live, while also integrate with more lending/farming protocols.

Community Question 8— One of the strengths of Unreal Finance is its ability to create new products through unreal finance. What concept does Unreal Finance handle of unreal finance and how are these products created from this concept?

Ishan Garg: One of the biggest strength of Unreal Finance is that the tokens generated are compatible with the existing defi infrastructure. This allows the future yield tokens be used in a variety of applications such as interest rate maximization, liquidity maximization, yield insurance etc.

Community Question 9— Token burn is important for investors, do you have any plan burn or buy back?

Ishan Garg: We haven’t finalized this yet, we will release more information regarding this in the future.

Community Question 10 — How can the community help UNREAL grow?
Do you have a page where we can help, liking, reposting, and commenting?

Ishan Garg: Yes, we will be launching this shortly, do stay tuned on our official group.

Community Question 11 — Many projects do not identify their future goals but only develop them. So: what are your main achievements this year? Can you tell me what your project’s short-term and long-term goals are for the future?

Ishan Garg: Our short term goal is to go live on mainnet, while our long term vision is to bring the interest rate swap market (which is a $14.2 trillion industry) into the world of defi.

Research Writer ǀ Blockchain Enthusiast ǀ Petroleum Engineer ǀ Part-time Journalist