H2O Data AMA
Held on 5th August 2022 at t.me/oddgemsfamilia Telegram channel.
Oddgems: Let’s welcome Okarin (@RintarOkarin), The Business Lead at H2O to our family. It’s a pleasure and an honour for us to have you here in our TG family and for me hosting this AMA :)
The key purpose of this AMA is to inform the community about H2O, its purpose in Ocean Market and other $OCEAN powered data markets.
I’m very much interested to learn more about H2O Data. Hopefully you guys learn a lot as well. As usual the transcript will be shared soon after the AMA session is over.
Okarin, nice to have you here, can you please introduce yourself?
Hey frens, it’s good to (finally) be here with all of you!!! Many thanks for the opportunity to present H2O to the community!! I go by the name of Okarin and in my previous life I worked in data-related projects in the public sector for several years. I’ve led the implementation of data-driven initiatives such as process automation and digitalization for major financial institutions. As you know, I have a strong passion for data as an asset class and its the main reason why I have joined H2O as the Business Lead.
Oddgems: Awesome intro! let’s get rolling with H2O.. 😁
QFor those who are not aware, can you please introduce us to H2O?
Ofcourse, H2O is the first native non-pegged stable asset for the Web3 Data economy. H2O exercises the mechanics of Reflexer’s RAI to pioneer a source of stability in the web3 data economy. Initially, it is solely backed by $Ocean. We’re currently working hard on our roadmap to include additional collateral types. H2O aims to serve as a medium of exchange and unit of account in data marketplaces. The governance token of our protocol is PSDN (Poseidon), which will be used to govern the parameters of the protocol, bootstrap ecosystem development, and incentivize liquidity of the protocol. We see H2O potentially becoming the dominant medium of exchange and unit of account for data tokens, and positioning itself as an integral part of decentralized data economies.
Oddgems: Cool, so a multi token ecosystem with H2O and POSEIDON and most certainly has close connection to OCEAN token as well.
QI would be really eager to know about the poseidon mechanics? Could you explain in detail how it works?
H2O’s governance token is $PSDN. Our project is managed by everyone who holds the governance token $PSDN. $PSDN holders manage and ensure stability of the protocol and will be airdropped.
We’re looking into giving Poseidon more functions, such as:
Creating use cases for $PSDN holders to utilize $PSDN throughout other DataFi applications. The team is carefully considering all factors to ensure that we’re doing the right thing with our governance token.
QWhy is H2O important?
H2O serves as an excellent unit of exchange for the Web3 data economy. $Ocean and $H2O are complementary: $Ocean is volatile and H2O provides stability.
$Ocean is the baseline token for near-term growth and long-term sustainability of the Ocean Ecosystem; as ecosystem usage grows then Ocean accrues value. However, this means volatility. In contrast, H2O is a stable asset. As such, its highly useful wherever lower volatility is beneficial, most notably to reduce the volatility of data pricing for data publishers and data consumers of Ocean Market.
QGreat, so we have another stable coin haha. (pun intended),But what makes H2O different from other stable assets?
Glad you ask, unlike other stablecoins, which are pegged to fiat currency such as $1, H2O is a non-pegged stable asset that fluctuates around its redemption price ($1.618).
For example, if the price of H2O was at $1.618 it would stabilize around that price. What most people call “stablecoins” are actually pegged coins. Pegged coins are oscillating around a specific value (usually pegged 1:1 to fiat such as USD,EUR etc.)
H2O, on the other hand, is not pegged to anything. The system behind the protocol only cares about the market price getting as close as possible to the redemption price $1.618. The redemption price will almost always ‘float’ (thus won’t be pegged 1:1) in order to compel the system participants to bring the market price close to redemption value.
QWell, just out of curiosity, is there any specific reason to choose $1.618 as the redemption rate?
We left that choice to the community! As you know 1.618 is the golden ratio which represents stability and equilibrium. It's a beautiful number and we couldn’t agree more with this choice from our community.
Qwhat can we do with H2O?
H2O can be used on LP’s in exchange for juicy PSDN rewards. Users equally get paid for opening and managing SAFEs on the H2O protocol.
Speaking of rewards, you can participate in several pools that we have on our DApp. Since we’ve launched, we’re continuously providing strong APRs.
Apart from this fundamental use of H2O on our platform, we’re already integrated into Ocean Market, where users can publish and consume data using $H2O and benefit from our token stability. H2O provides data published with a more predictable pricing model while data consumers can more accurately predict the cost of data.
H20 is currently available on all chains supported by Ocean network. And there are many more updates coming very very soon!
Oddgems: Great to see that “data” as an asset finally taking its final form and OCEAN’s tech being the critical backbone of this new data economy. Though indeed, lots of updates would be needed to perfect this new asset class.
Keep building. 👍🏻
QCan we say H2O is the First stable asset for the Web3 Data Economy?
Short answer “YES”! and perhaps more important, H2O is on track to be the first data-backed stable asset. As you all know “data” is one of the most valuable resources today. It’s a powerful type of collateral not subject to regulations or market conditions.
H2O is explicitly targeting the web3 data economy, which we believe has the potential to grow to a trillion-dollar economy.
As of now, H2O is backed solely by $Ocean, very soon we will add others forms of data-related collaterals. This is super powerful because it acknowledges the value of data as an asset class and also because it could be the birth of an asset that is non-correlated with others because it’s built on a foundation of data that has by definition intrinsic value — and is a huge asset class. This makes H2O interesting as a stable asset not just in a Web3 Data Economy, but the broader Web3 ecosystem and broader economy at large.
Oddgems: This could have a tremendous impact on our economy, not just for the present but for generations to come. Perhaps could even challenge the current asset classes (which we have today) to be considered as one of the most profitable investable asset in the future. Really excited to what the future holds for us.
QVery interesting indeed, so who is behind H2O?
H2O’s core team consists of myself as (Business lead), OxKaes (Front End Dev),Mr.L (Blockchain engineer), Trang (Researcher and Data Analyst), and Lars (Marketing Lead).
Our advisors are Eden Dhaliwal (Former Head of Crypto @ Outlier Ventures), Marek Laskowski (Former researcher @ Blockscience & York University), Sami (Founder of REDACTED)
Some of our investors and partners include OPF (of course) , NeWo, Redacted Cartel , Reflexer and DataX to name a few.
QWhat key partnerships did H2O close since its launch?
We’ve partnered with EPNS, Synapse, Reflexer, Gamma, DataX, and Redacted Cartel.
Here’s quick intro to our key partners:
EPNS — A blockchain-based communication protocol that provides notifications for on-chain and off-chain activities.
Synapse — A protocol that enables users to bridge h2O across Ethereum and Polygon.
Reflexer — We used Reflexer’s codebase, which basically means that we are a friendly fork of its stable asset RAI. #moneygodleague
Gamma — An open-source protocol for verified, non-custodial active liquidity and portfolio management of concentrated liquidity pools.
DataX — A DataFi protocol that creates money markets on datasets and makes them liquid assets.
Redacted Cartel- The metagovernance cartel that creates and captures value through the incentivization of governance in DeFi.
QI’m also very curious to know about the current results and main stats of H2O since its launch?
As of now 2M $Ocean is locked into the protocol! We expect much more to come with the recent integration of Ocean Market.
Another main achievement is that our protocol was battle-tested extremely early after launch and we can confidently say that H2O works exactly as predicted and remained stable, despite the Terra/Luna Crash, succeeding $USDD collapse, and extreme dips overall, including Ocean token value dropping significantly.
The current redemption price is $1.625 which is only slightly higher than the “ideal” target price.
QIt seems H20 team and $OCEAN have a strong relationship. Please let me know how you guys cooperate?
For starters , H2O’s strategic investors and funding round was led by Trent McConaghy & Bruce Pon (Ocean Legendary founders), and Ocean protocol foundation.
As mentioned earlier , H2O and Ocean are complementary; Ocean holders are able to mint H2O tokens to price data tokens on the Ocean Protocol marketplace.
H2O is essential because it removes most volatility. It is a stable asset that acts as a medium of exchange and unit of account and can be used for transacting with datatokens on Ocean Market.
QHow will H2O benefit the Ocean Ecosystem?
Using H2O in Ocean Market and other Ocean-powered markets reduces the volatility of data prices compared to using OCEAN directly. As I’ve mentioned earlier, this will benefit various users: data providers will have more predictable revenue and data consumers will have more predictable costs. This will catalyze usage of Ocean Market and other Ocean-powered markets. Increased usage leads to increased fees to the Ocean protocol, driving the value of $OCEAN.
Additionally, OCEAN holders now have an opportunity to leverage-up their OCEAN, by taking loans of H2O against it then putting the H2O to use in the Web3 Data Economy and in DeFi.
QWhy is Ocean Market important? What are the noteworthy aspects of Ocean Market compared to centralized data services?
Ocean Market is an app built on Ocean to publish data, buy data, and consume data.
Compute-to-Data enables private data to be bought & sold. It’s open-source software that is freely available to anyone to fork it and create their own data marketplace. Ocean market leverages blockchain and open-source technology and acts as an antidote to centralized gatekeepers because the community owns the network, and the network retains the value on behalf of the community.
This empowers data owners and AI researchers to publish, discover, and use data services — all without a central intermediary. The decentralized infrastructure and tools integrated into the Ocean market facilitate transactions in a predictable manner, every single time along with a full audit trail which ramps up security in data sharing.
QHow will H2O benefit from Ocean Market?
Since its inception, Ocean has been driven by the vision to democratize access to data and its latest release brings us one step close to achieve this goal.
QWhat is your vision for H2O in the coming future?
Our recent integration with Ocean Market is just the starting point!! $H2O is going to position itself as the native stable asset of the data economy. In the months to come, some major updates are coming to H2O in the form of new collaterals and use cases, expanding our reach to new horizons.
QWhere do you see the data economy going in the coming years?
The data economy = The digital economy!
Software is slowly eating the world — Web3 is capitalizing on software.
Combine these forces together and the data economy looks ready to flourish! And Ocean & H2O (and many others) are pioneering this movement
QHow can I get in touch with the H2O team?
The best way of reaching the team is by joining our Discord and following our Twitter for all the latest news.
Oddgems: Thanks a lot @RintarOkarin for answering our questions related to H2O. As usual, I’ve learnt a lot through this AMA and hopefully many would have as well.
I wish the entire H2O team the very best and hope they succeed in the longrun, short term is just noise anyways :)
Okarin: Absolute pleasure oddgems ! If any questions feel free to drop by our discord! ;)