So if you want to find out more stay tuned, what's up everyone randall here, like i said today's video is a sponsored episode. Yes, this means i'm somewhat of a sellout, but i let you know i do it up front and in the beginning of this episode, i'm going to go through what is ecoc financial growth, all the things about it and at the end of the video i'm going To tell you exactly what i think about the project, if you want to skip to that location, you can just check out down in the comments for the timestamp or, if you're, just not into sponsored videos. Please check out all the other videos i have on my channel that are not sponsored okay, so ecoc financial growth, creating revolution the d5 world by making d5 simple. Now, if we go take a look for the information about ecoc financial growth, there's, not that much out there, they have a website efg.finance. That talks a little bit about the project talks about the efg token, the gpt token, and why efg and gpt? And then they have a white paper which is very, very complex and they also have a yellow paper, which is very, very complex now, furthermore, there's a dashboard which is under construction coming soon and other than that there's, a few articles out there. All of these articles tend to focus on the same thing: five different price theories, arbitrage, price theory, option, price theory, capital items, asset management, pricing, model, modern portfolio, theory and efficient market hypothesis.
Same thing. In this one and same thing in this one, where are we going down here? Okay and furthermore same in this one, so we're going to do our own little thing where we take a look at all the information, bring it all together for you. So that way, you can know a bit about ecoc financial growth, now it's based off of a project called ecochain which, when they first contacted me about doing a sponsored video, it was doing a sponsored video for eco chain, which seemed like a good idea because it's, Basically, taking all the carbon footprints and everything and putting on the blockchain sounds like a great idea now. Eco chain is a trustless low, cost developer friendly project, bridging existing chains and virtual machines, it's fast and easy 32 second block times and 560 transactions per second now ecoc financial growth is a d5 project that's based off of that that's aimed to make d5 simple and More profitable for you now based upon five theories, and i have a feeling these are the five most important things about the project out there modern portfolio theory, which offers a tool to minimize risk on expected profit level, or vice versa, that is, to maximize returns on A specific risk level capital asset pricing theory is a tool which considers expected returns and risk on an individual asset options. Pricing theory, which calculates the probability that hedging collateral data will be exercised within the price at maturity and, as expected, efficient market hypothesis supports the belief that for all assets, the market price is very close to the actual fare price and arbitrage pricing theory asset pricing that Holds so that an asset's return can be forecasted with the linear relationship of an as that's expected returns and the macroeconomic factors that attack that affect the assets risk now, while these things may be the five most important theories associated with this project, it doesn't seem to Me, like they're anything specific to this project like these are just financial theories.
I don't understand how they make this any different than any other financial object out there, but let's go on efg token. Promotes development, improves construction, adopts hedging characteristics now. The other token is a gpt token. It provides solid credit, channel delays, settlement of mortgage assets and increases the grace period. So how does this efg debt work? Well, you supply the ecoc coins as collateral, so you have to buy these ecoc coins as collateral. Then, with the borrowed amount you receive a loan. The maximum borrowed amount is dependent on how much you deposit clearly calculated via liquidity and current value and it's the maximum amount offered. At the time now, returning the borrowed efg loan, you get to repay the efg loan. The pay borrowers total interest and debt calculated vi via efg repay function. Now there are some things to remember: the borrower's rate depends on asset and liquidity. The borrowed loan and interest are not required to be repaid daily, and the important thing is borrowed. Loan can be liquidated if collateral plus interest equals 60 percent collateral, which means that unless the value of efg token stays the same or goes up because you're accumulating interest all the time. Unless the value of ecoc token stays the same or goes up, you're going to get liquidated once it reduces to 60 collateral, so the coolest things about efg are, they have wrapped tokens, they have air swaps and they have oracles and defy obviously clearly because that's, the Craze so uh my thoughts.
Okay, before we get into my thoughts, it is something that i did want to bring to your attention in one of these articles here i think it's this article here on coin telegraph. Okay, i think it's best said right here: okay, as a decentralized finance, boom surgeon, mid argus, ethereum, co, founder of italic beater and warned his followers about the cryptocate craze. Unless you really understand what's, going on it's likely best to sit out or participate with only very small amounts, so that is an article sponsored article about efg finance and just keep that in mind whether you think about whether to invest or not. Now my thoughts good and bad – and i did have to stretch a little bit to come to these good things, but these are the good things. It is a sponsored video. They did pay me to make this. I am a bit of a sellout for doing this. So good defy ecosystem around existing project. Like i said when i accepted to do the sponsored video it was for eco chain finance. Excuse me for eco chain, which i thought could be a very interesting project. This came out. I don't know a few weeks ago. Maybe a month ago seems like they're trying to hop onto the d5 craze, even though they've told me no they're aiming to make d5 simple. However, d5 is complicated to understand this. I don't even understand at all, but still that's, one of the good things: the fight ecosystem around an existing project, two limited supply, only a million tokens now because of that we know, bitcoin only has 21 million tokens.
So if there's, only a million tokens even more limited supply, maybe supply and demand price might go up. Third good thing, oracle's and touring complete. Now those are very cool in and of themselves. We all know about chain link, oracle's band protocol and now oracle's on efg finance. Fourth, we have gpt extending the liquidation time. So, as you remember in this slide right here, you get liquidated unless the price goes up. Well, you can extend that liquidation time with gpt token: fourth, not a stable coin; fifth low gas fees and fast transactions. Now. The other thing i should mention is just. I think that this for oh wait, we're talking about the good okay, so that was the good okay. The ban burst off bad website. Okay, i've always said you know if they can't have a good website. Why invest in a project the website? Clearly i could. I could basically, i think, there's a correlation between the looks of a website and how a project does clear correlation between that they don't have a good website, yikes. Okay, second lacking information, i mean this is really all the information to go on the or their yellow paper and their white paper just basically talks about financial theory. It says this much about what their project actually is, how it's going to work? Third highly speculate. Speculative. I mean this is a project that's built off of the success of ecochain and so far ecochain hasn't been very successful, it's down to like 60 of its initial value, so you're, basically betting on the success of that project.
By putting your money in this project highly speculative, i mean it could go good d5 is popular. Could d5 projects work out? Well, but may not fourth limited use case like i said it depends upon eco chain now granted you can do air swaps between different projects, but why would you buy this to air swap with something else? Doesn'T make sense, they're not bringing anything in the market with that fourth confusing math the white papers make no sense. I mean take a look at some of this stuff. We, the the typical investor, is not a mathematical genius. I studied physics in college and i don't even understand most of this math. I mean look at this. They have all types of crazy mathematical theories. Okay, who's going to understand this stuff is basically just to confuse us to purchase it, and next i think, they're jumping in the d5 craze totally think they're jumping into d5 race. I also think with the confusing math there's a confusing financial theories like these five financial theories are not only, i mean, basically, everything out. There uses these financial theories. These are financial theories on why the price is what they are it's, not going to do anything different for efg finance, so guys. Those are my thoughts on this obviously take what you want from it like. I said this article says it the best. Unless you really understand what's, going on it's likely best to sit out or participate with only very small amounts, so guys.
Thank you so much for watching this video.