Freeway Internal AMA Transcript — Tuesday, 22nd March 2022

Graham Doggart
24 min readApr 5, 2022

All information included below is subject to the legal disclaimer at the bottom of this page.

Freeway Telegram Channel
Tuesday, 22nd March 2022
7:00 PM UTC

Join Freeway’s Official Telegram Community Channel at: https://t.me/FreewayFi_Official_Community

Once a week, Freeway holds an internal AMA in the Freeway Telegram channel that gives the community a chance to ask direct questions with core team members.

This week, Founder and Co-CEO Graham Doggart hosted the AMA.

“Freeway is a project designed to bring traditional and new financial worlds together by using digital finance tech to generate greater total returns on the world’s top investment products and bring new access routes to financial markets for everyone while we do it.” ~ Graham Doggart

*** AMA Begins ***

Q1. “Does the Supercharger function off of interest? I’m not too sure what staking is… This is probably a little unorthodox but I ask this because I’m a Muslim and making money off of interest goes against our beliefs. I’ve seen conflicting things about whether staking is interest-gain or not, and was wondering what your take was on it.

Because the Superchargers are different to Prime, how does a brokerage fall with Sharia compliance, where interest isn’t permitted, but paying out a profit that’s generated from the savings deposits is?”

Legally, we provide incentive rewards, either as Supercharger staking at Freeway Lite or deposit rewards at AuBit Prime.

Neither are interest and no revenues we use for rewards are as a result of us charging interest, so I expect things are fine, but of course please get professional advice as needed.

Q2. “Rewards will be based on the size of the rewards pool weighted to our most active users, not the price of FWT.”

What did he mean by the “most active users”?

FWT staking rewards pools are not price-dependent on FWT price, they are pools of rewards added for FWT staking rewards. They are not causatively proportional to FWT price in any way.

Active users will have higher activity scores and see more rewards as a result of being more active.

Q3. “Hi, Graham! Can I ask for the weekly GRAM incl its distribution among the various Superchargers?”

🙏

Yes, it will be a little rough and ready as we have not done a full reconciliation yet but it will be very close.

14,264 total users, 11,417 Freeway Lite users, 2,847 Freeway Lite US users, 2,693 active users supercharging $90.38m.

USD 62.9%, BTC 22.6%, ETH 10.3%, BNB 0.4%, Euro 2.6%, ADA 0.7%, Gold 0.1%, DOT 0.4%.

Q4. “So, let’s say someone has fully activated 10k USD Supercharger + 5% FWT tokens earning 54% APY (at current reward rate), will their earning be higher or lower after the new reward system (43% APY + 15–30% APY on FWT staking) is implemented?”

Depends on how many FWT they have.

The change means that those with more majors than FWT, those with more FWT than majors, and those with both all get a great result.

Those that already had full Supercharger activation will do better than they did before, as will those without much FWT or those with lots of FWT and not much else.

Q5. “Is it possible to use both rewards at the same time? Like benefit from the Supercharger rewards as well as the upcoming FWT staking? How will that be on the platform?

I have some FWT bought with ETH, and some bought with BNB so they’re on different chains! Is it possible to deposit both to Freeway Lite? And will they have 2 separate accounts on Freeway Lite or they will show together as total?”

Yes, it all works in parallel.

Yes, you can transfer both to Freeway Lite (not Freeway Lite US).

They will show in one single account.

Q6. “Howdy, Graham! Is there any particular limit on the number of RPC/non-block producing nodes that an individual can operate?”

The detailed tech specs are coming hopefully in the next 2–3 weeks, better to leave that question until then.

Q7. “As has been mentioned previously, Freeway built up its own buffers since early January to cover the total amount within Superchargers, as a fail-safe for if the worst was to happen. Users would subsequently have their holdings honoured. Where is this buffer located — is it separate from the brokerage in the extremely unlikely event that the brokerage was to break all laws & regulations and go rogue?”

At the time of writing, it is around 50:50 in AuBit Prime and outside of AuBit Prime on major exchanges in trade.

Q8. “With the US being a closed-loop system. What happens when all tokens have been distributed and users take tokens off the US platform while new tokens can’t be brought into the loop to replace them?”

Economics works in our favour to ensure supply and demand equilibrium is achieved depending on supply and demand across both sub-ecosystems.

Q9. “In one of the AMAs, you mention that with your current updated strategy you can accommodate 200bn. Although this number might be unrealistic to achieve, obviously, what is slightly even harder to believe is that you will be making 100bn in profit in the forex market. Thus my question is when do you think the 43% would be decreased based on the amount added. Or when do you think something like that would be unrealistic, similar to the 100bn every year?”

We have no plans to reduce things, that is why we projected things out to such large numbers.

I am not sure I understand the question on why making $100bn in the fx markets is unrealistic. It happens daily.

Q10. “You have to use money to earn money (obviously), so what is going to be used to generate the 6–10% APY on that stablecoin if it’s all sitting in an account not being used as it’s 100% cash-backed?”

We have a clever system for this. We essentially build up buffers to cover the usage rewards by allowing primary purchasers to JV (joint venture) with us on some at-risk capital at the outset, which moves to risk-off over a 3 month period.

Of course, we could just trade those buffers for our own benefit, but Freeway is all about Social Finance and #accessforall and it is a much better long term business plan to give most of it back to grow in size.

Q11. “Last week in the forum I posed the question: Is Freeway open to government sanctions or seizures? The response I received didn’t clarify enough for me. As a Canadian, this is important to me as our gov’t has started moving in this direction with perceived “dissidents”.”

The short answer is I don’t know what stuff is coming in the future so it is impossible to give an answer.

Unfortunately, there is uncertainty with these unprecedented actions.

I can say we are working on all fronts to have a faired and more valuable set of financial services for everyone, and that will include solutions for those that need it where there could be government oversteps.

Q12. “In the AMA with Coach k, you mentioned part of the revenues of AuBit were derived from token sales. Can you elaborate on what this means?”

Yes, when we sell Superchargers we are selling tokenised virtual simulations, these are technically revenues.

Q13. “In that AMA, you also mention that initially Freeway Lite and Freeway Prime will be separate UIs. Will we be able to easily transfer from Lite to Prime directly?”

Freeway Lite and AuBit Prime are separate entities offering separate services. We will work to make the transfer between them as easy as possible over time.

Q14. “The Freeway stablecoin is a phenomenal (if grandiose) idea. Is the vision for this to be a high market cap coin tradeable on other chains and used frequently in DeFi protocols?”

We want the Freeway Stable Coin to be a major force in and outside of the space.

Q15. “How do you plan to bootstrap all the liquidity for the Freeway Chain? (I.e., Bridges, Dex, etc.)”

It will be made clear a bit later how it works, but primary purchases of Freeway stablecoin are incentivised for distribution even more than holding and staking. The more primary purchaser partners can buy, sell on, and buy again, the more they get off the network effect monies. Also, Bridges and Dexes have their own forms of liquidity provision incentive which these distributors can also tap into.

Q16. “You talked about legal reasons not allowing you to share the trading report. So you shared it with your special people instead. Can we know what the legal ruling is? I mean it’s a legal ruling so it would be nice to know what the law is and why you can’t share it with the community?”

“Legal ruling” is certainly incorrect. I have clearly stated that legal advice has been given and we have followed it so as not to jeopardise #accessforall.

Q17. “Also, what information does the audit provide for us? I mean, from my knowledge of audits, it just tells me that the balance sheet and so forth is in order. Meaning that the audit would tell the consumer that an audit was done and everything is okay. But I mean you could be making millions in losses and the audit would not tell me? So if you are not sharing your trades, what will you be sharing with us on the audit? Will the audit provide us with a profit report?”

The audit being done on the trading data is to ensure that the trades add up and fit the reported balances throughout the year given the deposit history. It is very simple but with the huge volume of trades and various ways you can calculate these things, it takes several weeks.

We will share what our legal advisors suggest we can share.

Q18. “What can we use now, as normal people, to convince someone to join Freeway? Safety is not there (you claim our money is on exchanges, but no proof), the audit is not there, the trading report is only for special people, the regulation only covers Prime and not Freeway Lite… Do we rely on their greed and ignorance to join? I’m sure if I were to come to you with Freeway Lite, without anything to prove, you wouldn’t join.”

No one has said user money is on exchanges. Supercharger staking involves purchasing tokenised virtual simulations from an AuBit entity, this is AuBit revenue. I have repeatedly stated that we have been cash flow positive from launch, and if it is possible and commercially right to do so, we can provide details of our profitability as our main audits get done. This is something we will decide as we get more data and advice.

AuBit can do what it wants with its revenues, of course. As it happens, the bulk of it is in AuBit Prime and in trade right now, one way or another.

Freeway will grow based on word of mouth, the new and improved features and the referral program. As we get legal approvals and data to disclose we will do so, I think we are one of the most transparent projects in the space.

We are growing just fine without people that don’t want to join, thanks.

Q19. “Why do you think some people are still not convinced with the legitimacy of Freeway? Surely, a regulated crypto brokerage, registration with the necessary regulators in numerous countries, the very visible team, the best APY out there that aren’t reliant on lending out crypto assets, winning Staking Platform of the Year, and countless other positives are enough reasons for most normal people?”

We can only do what we are doing 🙂. And, fortunately, we do spend a lot of time and effort on showing whatever we can to our wonderful community members. We have built Freeway to reward and benefit our users, so we of course focus on rewarding and benefiting our users most of all.

Q20. “What will be the maximum APY for gold and LUNA on AuBit Prime?”

Initially, these less popular products will have a max of 25%, half of the stables/BTC/ETH max rates.

Q21. “Brilliant news of the AIBC Staking Platform of the Year win. How is the team planning on using the win to assist with marketing, especially targeting prospective new users?”

We will show people we won, we won’t milk it, not our style.

Q22. “I’ve looked into Ardu Prime S.A. The board consists of Greeks and no one of the English Founders/CEO we see in the AMA.”

Ardu Prime and Freeway have partnered to create a unique product, combining Freeway’s technology and innovation with the prudence and trustworthiness of a long-established regulated entity. We may be working closely together but each entity has discrete roles and each entity provides a different service, as such, the Freeway management team is busy growing Freeway while Ardu’s Board is managing the company including the business unrelated to Freeway. Do not forget, running a regulated company is not an easy task or one to be taken lightly and at the same time providing an incredible product and experience for Freeway users, certainly requires focus and determination.

Q23. “Here are my main concerns: Customers receive a simulant of the native token, it’s really like a voucher for your deposit. The native token is kept on exchanges of Ardu Prime’s choice in their custody. These unknown exchanges are claimed to have insurance, without any proof or with who. The segregated client accounts are, as I can see, in fact, only one corporate account with everyone’s funds, in one or more exchanges, We can only guess as we don’t know their risk management strategy.”

A regulated entity for investment services falls under the same framework and regulatory oversight as banks and other financial institutions. While banks are supervised by the local Central Bank of each country, entities for investment services are supervised by the local Regulatory Authority. All fall under the EU framework for financial services, and ESMA is also a supervising authority. Given the position of the company as a regulated entity for 20+ years in a highly regulated environment and fully compliant with MIFID II (Greece, European Union) rules and procedures are in place and regularly checked by regulators as per audit procedures. A number of people, both in-house certified executives and external professionals are responsible for the accuracy and strict adherence to rules and regulations including the compliance department, risk committee, internal auditors reporting directly to the Board, external auditors and of course the regulatory authorities, local and EU wide. As a regulated entity, every aspect of operations is heavily monitored and controls are in place, on top of regular reporting.

Freeway keeps more funds with AuBit Prime than are in the tokenised virtual simulations.

Q24. “Ardu Prime is a Greek registered firm. Greece is one of the few European countries that have actually sieged both people and companies’ money due to economic challenges in the past. There is no guarantee that won’t happen again as the global economy is weaker than ever.”

Ardu Prime is a registered Greek firm with international clientele, strategic partners with global presence and business relationships. Client Funds are held in designated accounts held with an authorised financial institution or bank established in the European Union, the United Kingdom, Switzerland or the United States. Hence, Ardu Prime is a Greek entity completely unrelated to the local industry, working entirely on an international level, a structure that would be equally sensitive to global shocks no matter which is the home country.

Supercharger APYs are always provided on a best-efforts basis and through an ever-growing cycle of success over success. The riskier steps are always the first ones and as capital buffers grow revenue generation becomes easier while risking only profit rather than capital. Own Funds are indeed traded in a very successful way through quant strategies and carefully selected markets, nevertheless, there are no guarantees that achieved performance will be consistently delivered year over year. There is no secret sauce, the key to success here and the growth has been and will always be giving back to the users and applying properly the network effects in a healthy and balanced way, including re-investing and generating more revenue — as long as we can keep doing that we will be able to provide high returns. Deposit Rewards that will be offered by Freeway Prime (Ardu Prime) work differently, in this case, Freeway Prime will be literally reducing profits to a minimum by paying the rewards to the community with the target of scaling up at a rapid pace and earning by creating economies of scale.

Q25. “There are no specifics on how the rewards are at these high levels except “we do Quant Trading”, not showing actual numbers or proof. Also, “we get a better credit score to trade more”, again without showing any numbers or proof and what that generates. Where exactly are the deposited tokens being transferred to and how is it being used to generate the APY + a lot more profit to Ardu Prime? The more I look into it, the more questions I have about Ardu Prime and its commercial names. What’s under the hood and why so much effort to cover it up as a “secret souce”? Transparency. Eventually, customers need to know and it takes often only a few to make attention and noise in media.”

Supercharger APYs are always provided on a best-efforts basis and through an ever-growing cycle of success over success. The riskier steps are always the first ones and as capital buffers grow revenue generation becomes easier while risking only profit rather than capital. Own Funds are indeed traded in a very successful way through quant strategies and carefully selected markets, nevertheless, there are no guarantees that achieved performance will be consistently delivered year over year. There is no secret sauce, the key to success here and the growth has been and will always be giving back to the users and applying properly the network effects in a healthy and balanced way, including re-investing and generating more revenue — as long as we can keep doing that we will be able to provide high returns. Deposit Rewards that will be offered by Freeway Prime (Ardu Prime) work differently, in this case, Freeway Prime will be literally reducing profits to a minimum by paying the rewards to the community with the target of scaling up at a rapid pace and earning by creating economies of scale.

Freeway Lite Superchargers take all of this into account to choose the rewards, and of course, the same applies to AuBit Prime deposits, which themselves are not risked.

Q26. “Hi, Graham. It was once said that USD, Euro, BTC, ETH and Gold will earn you 50% and others likely half. However, recently you only mentioned USD, Euro, BTC and ETH. Has Gold degraded to the 25%-ish league? (If it’s 50% I will buy some Supercharged Gold, otherwise likely not.)”

At the moment Gold is at 25%, it is of course the most likely to increase.

The others are too small-cap for that.

Q27. “Are there plans to stop offering $FWT OTC sells, to let the market find the token price? Do you have a number? What volume OTC sells so far? These volumes would push the price if there wouldn’t be OTC sales anymore.”

Will the token symbol „A“ stay the same after rebranding?

Everything moves to Freeway branding.

I am not sure the issue with FWT being available on the platform is, Freeway is working always to be a net buyer from the market anyway.

You can trade the volatility on the various exchanges if you want.

Q28. “Hi, Graham. Is there a date planned for the airdrop for users that held their FWT on AscendEX when the hack occurred and moved them over after to Freeway Lite? Thanks.”

We can take a look at it, I am not sure how many people we missed, can’t be many.

Can do a customer support ticket.

Same with Bitglobal users.

(Sorry, customer service peeps) 🙂

Q29. “I have an idea. What about a partnership with JA Europe allowing student companies to grow their assets with Freeway? There are like tens of thousands… They work in 42 countries in Europe.”

Sure, please send a customer support ticket to get your idea on our to-do list.

Q30. “Security question next! 🥴

Example: my email gets hacked, somehow the hackers get through my 2fa. I’d need another safety layer in place. Can I whitelist my withdrawal addresses for example, can I add an extra pin code to access my account? Are there any plans for these features? I don’t see anything for this one in the Web App yet. 🙏

Can we expect some new security features in the upcoming UI update?”

Whitelisting addresses is a feature coming to both Freeway and AuBit Prime in the relatively near future.

We already have email and 2fa for withdrawals.

This is as good as most exchanges, but we will of course work to make ourselves the best in class.

Q31. “Hi, Graham. You were saying that the FX trading outperformed the crypto trading quite a bit and that you therefore mostly did FX now.

But since the deposit rewards aren’t live yet, what happens to the crypto deposits now? Do they still move to Binance for trading or are they converted to fiat to trade FX?”

As Superchargers are our revenue, we deposit our crypto with AuBit Prime and do the same thing that AuBit Prime users will eventually be able to do there.

Our crypto is custodied and used to enable us to trade with more leverage in a non-risked manner.

Q32. “Hi, Graham. Congratulations to you and the team for winning Staking Platform of the Year! I have a quick question on ISAs. Will Freeway Bank be offering them? I’d like to transfer my kids’ ISAs across as soon as possible. I believe in the longevity of this project and 40/50% annual gains for 15 yrs is mind-blowing.”

We will of course work to make Freeway as accessible as possible over time. No promises on timelines for these types of things though!

Q33. “Will the number of own tokens held at the platform be more precise than now? They are rounded up.

Do we know how many users registered since last week?”

The GRAM guys can work it out.

I think most of them go to quite a few decimal places already, no?

Q34. “Hi, Graham. Will it be possible to create a sub-account anytime soon?”

For now, just create a new account with another email address.

Q35. “When do you anticipate the first ace to be played and any hints on what it may be?”

April, and no.

Q36. “Since Freeway holds a lot of crypto, what happens to any airdrops? For instance, at some point, PulseChain will airdrop a copy of every single ERC20 on PulseChain. What will Freeway do with them?”

We will of course work out the fairest way to sort that out for all users.

Q37. “Hi, Graham. Did you see any extra traffic to the website from the first TV ad? Cheers.”

Reports will come at the end of the month.

Q38. “If we see a significant rise in FWT price over the next month to say 10 cents, do you still expect FWT staking rewards to remain between 15 and 30% of the new value of the staked FWT? Or will this cause a drop off in reward %?”

This is just an estimate, we will have to see how it all goes, there are too many moving parts. If the price went to 12.5x like that, as we are fundamentally based and not a hypey project, you would expect some other fundamentals in the business to follow, allowing for rewards to expand accordingly. It is too early to tell one way or another.

Q39. “Hello, Graham. When do you expect referral rewards to be live? Apologies if I missed the revised dates on this.

Also, what has been the most useful feedback you have gained from your wonderful community so far?”

As the next major build release launches, very soon.

Q40. “Still on track to hit these Q1 2022 milestones? How are SEO plans coming? Any progress on squashing those defaming websites?”

There are legal actions on it, we have not done anything cheesy on the SEO side of things, we have a new website coming soon, and we can look at our presence after this next major build release goes live.

Q1 2022 seems pretty good for most of the things we had planned, cutting it fine at the end here, but even if a few days out, I will be very happy

Q41. “Is there Freeway funds ring-fenced for Supercharger claims in the unlikely event of insolvency? If there are no funds set aside for this, I am not exactly worried as that to me would be the same risk as funds deposited in a bank… Banks use your money as collateral and leverage it accordingly, if they go bankrupt you will be a claimant and if there are some assets to sell you have a chance of getting some money back etc. I do however just want to make sure I understand how Superchargers are treated vs. a brokerage account in this particular situation. E.g., in the example of liquidation of Freeway. This has an impact on the risk-reward relationship in the decision to move to the Prime brokerage option vs. staying in Superchargers.”

We are miles away from that risk, we have a lot of buffers. We are actually planning an insurance fund within Freeway Chain and we are working on something at the brokerage level too.

Q42. “What kind of UAT was performed on the new website builds? Were folks from the community engaged?”

There is quite a lot more testing happening now than previously. It keeps improving.

Q43. “The relationship between Freeway and AuBit (Ardu) once a Supercharger is purchased, the simulant is represented in Freeway Lite, and the funds are placed into the brokerage (AuBit/Ardu), in the event of a black swan/liquidation event can Freeway default the funds to pay AuBit/Ardu? Thanks and sorry if this has been dealt with previously. Should be almost a yes or no answer.”

As stated a couple of times today, Freeway sells tokenised virtual simulations and thus all funds are revenues and Freeway’s Freeway does not hold any client funds at all.

So, yes, there is counterparty risk technically to get Freeway’s revenues into AuBit Prime. However, we are of course deeply incentivised to get it in there and start making trading revenues!

Q44. “I have a question please regarding the market buys you’ve mentioned. How is it working, isn’t Freeway holding a big bag of tokens you buy without the need of buying from the market? That’s the reason I asked about the price when tokens will be sold OTC.”

Yes, we are not in the business of causing volatility. Commercially, we choose when to purchase FWT. The important point of this is that we are not selling.

Q45. “Can you talk about staking? Any minimum or locked when unstaking?

And what do you do to control prices to save user stakers?”

No minimums, but for staking rewards you stake for 30 days for 30 days of reward eligibility.

We don’t sell FWT in the market so we don’t have any effect.

Q46. “Do you expect to automate deposits and withdrawals? As in not having to open an OTC request?”

Freeway is not DeFi, so no automation on withdrawals. Anyone that is important will have a DeFi version with less exciting rewards, eventually.

Q47. “Hi, Graham. Why not offer insurance on the native token deposit so that there is a safe trade for investors only holding a voucher for it?”

Just not in our business model yet, maybe in the future if we can find an insurer, but it seems unnecessary.

Q48. “Great AMA guys! Just wondering if there are plans to grow the support team as I notice you guys are starting to get busier and support tickets are taking longer?”

Of course, we are recruiting. 😉

Q49. “When can we see the tracking of our balance per day? It’s not good that I can’t know how much I had on the platform on a specific day.

Is it coming in the next update?”

It is not in the UI on this release, but it is being recorded so it is just a matter of time in the next iterations.

*** End of AMA ***

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The following is a transcript of a live AMA session held in Telegram and represents the opinions of members of the team and has not necessarily been approved by legal counsel. Transcript and all content therein (this “Transcript”) is for information purposes only and may be subject to change. The transcript is of a live event and, as such, errors and omissions are accepted.

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