Yield
A conversation with CEO and Founder Tim Frost: Future of decentralized finance, leading remote teams around the world, and his latest venture YIELD App
Tim Frost is CEO and Founder of YIELD App.
A founding member and former VP of Marketing at Wirex — Tim specializes in growing early-stage blockchain startups internationally such as NEO, QTUM, Polymath, Everex, and others.
With a cross-cultural knowledge base on fintech, traditional banking, blockchain, and decentralized finance from Liverpool to Hong Kong — his mission is to make decentralized finance accessible to everyone.
You can read or hear more about Tim’s work on Cointelegraph, Bitcoin.com, The Bitcoin Podcast, Untold Stories with Charlie Shrem, and Girl Gone Crypto.
Tim currently resides in Bangkok, Thailand.
Writer’s note: Digital Nomads is a mini-series in which I speak to various creators, founders, and thinkers in different parts of the remote world — this interview has been lightly edited for clarity, brevity, and length.
Taylor Simone: Good morning, Tim. Let’s discuss your international reach with growing early-stage blockchain startups in Liver Pool, Hong Kong, Singapore, Estonia — list goes on.
Can you describe your “Aha” moment with crypto? Was there a setting, person, or event where you started thinking more intently about Bitcoin?
Tim Frost: Similar to many I was curious about the price-action moment with Bitcoin that was happening years ago. At first it was a challenge to comprehensively understand a digital money movement. I kept reading and learning anything I could on the subject.
I started doing marketing in the crypto space while realizing there was ultra strong utility happening with digital assets. A major career turn was when I started working for a company called Wirex [digital payment platform in United Kingdom].
During those months I became one of the founding team members mainly navigating business, operations, and marketing for nearly two years. Wirex was a tremendous experience while immersing oneself in the possibilities of borderless money including a Wirex card program to practically use Bitcoin with.
TS: Since I’m calling from Vancouver [Canada] could you explain to readers some differences in blockchain startup scene from your experiences that people may not be aware of in Canada or US?
TF: Innovation happens everywhere — North America is a leading innovation scene yet there’s so much happening all over the world. Canada has a thriving blockchain scene in my view with crossover markets after spending time in Toronto with an intriguing startup called Polymath.
I would say underlying factors where innovation is happening globally is based on local regulations and jurisdictions including types of startups coming out.
TS: For those who are crypto curious or considerably have an advanced interest — let’s hear about the introductory events of founding YIELD App.
Was this in 2020? Is your company completely remote?
TF: I had completely moved out of crypto for a few years. I’ve had an enriching yet complicated journey with blockchain it’s been incredibly interesting.
Fast-forward March 2020, a friend of mine was living near me who started his own [DeFi] fund. I began spending time with him everyday learning about decentralized finance.
Once I started looking into DeFi I saw the potential of a functional internet economy built on Ethereum. Going back to your first question what I thought was remarkable is how decentralized finance has opened up a global financial network where people are essentially transferring value, borrowing, lending, and building without centralized middle-men or intermediaries as some call it.
It’s all very complex which is why our team wanted to think about how people can embrace the new technology more simply. Behind the scenes groundwork for YIELD App was this: Can we essentially take capital and lock it up in safe conservative oppositions such as AMMs so people can earn passive yields? [Glossary note for readers: AMMs = Automated Market Makers ie digital assets always available to trade removing the need for a centralized exchange by automating to liquidity pools in contrast to a buy-and-hold strategy]
We came to the conclusion to build YIELD to help millions of people have access to decentralized finance options in a safe manner. It’s been a high-paced year to get to where we are now. YIELD platform serves a broad global market where people can deposit their Bitcoin, Ethereum, or tokens while earning a passive income. Currently, we have over fifty thousand YIELD App users signed up. [Last December YIELD achieved a combo-funding round of 4.9 million according to Coindesk]
TS: YIELD App’s mission statement is “DeFi Banking in your pocket.”
What is the commerce philosophy of being able to use a crypto app anywhere one goes with a cellphone and internet connection? How is this different from accessing a bank?
For someone who is newly interested or skeptical of crypto could you explain why someone would want to be their own bank?
TF: There’s two verticals here:
The non-custodial path where essentially one has their own keys for a mobile wallet, a paper wallet, or hardware device this is one version of being your own bank.
YIELD is on the other vertical as a financial institution — Some may describe us as a blockchain hybrid of fintech meets crypto where we manage on users behalf like a Binance, Coinbase, or BlockFi institution.
Sometimes it can be risky if one is new to training how to have their own keys yet there’s freedom to hold your own keys. Otherwise some people’s tolerance of trust steers toward financial institutions.
To answer your point, YIELD is a custodian of people’s digital assets run like a professionally managed firm.
TS: Wallets are a hot topic in crypto. One deck, people who have varying beliefs on trust, risk, and time who may need more regulatory support.
Another card is people leaning towards extra steps of being responsible for their own keys — Why did you choose BitGo as YIELD App’s wallet solution?
TF: We went with BitGo as a securely reputable wallet choice they’re based out in Palo Alto, California. Right now we’re close to launching our own wallet solution in roughly 4-6 weeks including a newer rollout version of YIELD App.
TS: What’s it like building a crypto web-based app remotely? YIELD App has an Estonian business license.
Can you identify barriers for starting a crypto company with an Estonian license? What type of team are you hiring for mobile development?
TF: To create a crypto financial institution there’s a range of minds involved all over the world remotely.
We have a full development tech and engineering team. Part of the original product was built with an outsourced firm. On the marketing side including digital strategy, media relations, and SEO — we have sixteen full-time marketers from different professional backgrounds of marketing.
From compliance to fund management some come from traditional finance and others are exclusive to crypto, Bitcoin, or blockchain.
In the first year, our team has grown to forty people.
We did land an Estonian license as I previously resided there. Estonia is a beautiful country embracing the crypto and blockchain sphere like most jurisdictions worldwide there are clampdowns on crypto. Now, there’s a global coordinated effort as you have to build for the future.
TS: Anyone involved with crypto has the inevitable regulation question at the top of their head as we see what’s happening with US infrastructure bill — Canada has it’s own regulatory differences such as Bitcoin ETFs available for stock investors dipping into crypto exposure.
YIELD recently launched a Bitcoin and Ethereum fund?
TF: [YIELD’s top priority] was to launch a Bitcoin and Ethereum fund. We wanted to offer stable coins and have people earn anywhere between 12-20% APY [Annual Percentage Yield] from those funds. On product front we had many users and clients enthusiastic. Here the true power we believe is Bitcoin and Ethereum have incredible value with the adoption curve fundamentally changing in 2020 and 2021.
The world is waking up to Bitcoin and Ethereum continuing to shape the global economy growing on a daily basis over the last decade. A powerful shift with crypto wealth and financial health management that we’ve been successfully able to tap into is understanding how Bitcoin and Ethereum are part of the larger global economy now. [With the 2020/2021 bull run] more people are acquiring digital assets by increasing their holdings. There’s a powerful opportunity now instead of just holding your digital assets you can now compound for your future.
TS: For those in traditional finance who are now peering into crypto can you explain the importance of liquidity?
TF: Liquidity is a major factor in any market in the digital asset space liquidity continues to grow exponentially which is why we adjust periodically to the moment and ensure to monitor APY rates.
TS: Further along the subject of liquidity can you explain how Curve Finance plays a role in your decentralized finance strategy?
TF: We work quite closely with Curve as it’s fundamental to our decentralized finance strategies as we view what they’re doing as groundbreaking with the protocol they’ve built.
We deploy a significant amount of our capital with Curve. Moreover, we work with various auditing groups all around the space to understand the landscape better. Like any fintech firm inside or outside of crypto — we’re a technology company. We build product in-house and we naturally strive to use the best off-the-shelf technologies including high caliber KYC [know-your-customer] providers. With BitGo’s wallet solution that helped us quickly scale to 50,000 users. That’s the exciting part — there’s a variety of partners that all add up to what YIELD is.
TS: How are you gathering feedback for customer metrics? Are you using apps like Telegram to hear from users?
TF: We use social media channels such as Twitter, Telegram, Discord. Community managers are on there to help as we aim to answer any sort of inquiries as swiftly as we can. These channels are important to help us understand users better as we want to build products and features they ultimately want to use. We’ve started experimenting with customer surveys to find out who clients are.
One insight we noticed is users are majority male. We see crypto as an amazing opportunity for everyone. Some average age demographic range is twenty-six to fifty years old. We’d like to see more women become involved. Our team was quite surprised on the figures we’re hoping to see more participation from women in the space.
TS: Within my network of women conversations aren’t always visible whether they’re crypto curious or actively investing.
Let’s discuss your recent podcast engagements I heard you on the Bitcoin Podcast and Untold Stories with Charlie Shrem — How’s it been talking about YIELD in new and different media contexts?
TF: It’s been a great experience to engage new audiences it’s nice to share to the world what we’re doing with YIELD App by making crypto more accessible globally. I’m happy to speak with people and hear all types of feedback including reactions to what we’re creating at YIELD.
TS: On Charlie Shrem interview he sounded rather whimsical as everyone right now is very curious about DeFi. What is it? Where’s it going?
How would you describe decentralized finance to someone? What can be done to broaden conversation for those from all walks of life including those who are critical to some of the flaws of crypto culture?
TF: Decentralized finance is a completely open financial network that resides on the internet. Anyone can participate. The rise of crypto originally signified a borderless transfer of value. Before we had to send money through Western Union or banks so when Bitcoin came you could send money to anyone with an address — it didn’t matter where they were or time zone. This was eye opening.
Bitcoin has become a digital store of wealth. With mainstream sweep of NFTs there’s also new digital value. When thinking about crypto global market caps it’s here to stay. More startups are increasing usage of smart contracts everything has become a full-fledged digital financial network which has captivated people with the question of where is this ultimately going to go?
For some people they may say what’s the use case or why do you need to? Anyone with a mobile phone or internet connection can tap into the network so if you’re in the developing world surrounded by radical inflationary currencies you can get your money into digital form without the need of a centralized exchange.
Regulators are concerned as it will be challenging to govern meanwhile it’s opening up freedom for people. It takes time to understand. Luckily now, there’s more resources and connectivity to participate now.
TS: Sometimes people forget how a phone can be a person’s lifeline.
TF: Gradually, traditional banks are on the way out with the inception of fintech as the need of banking is diminishing. Ultimately there’s going to be a shift on how money is managed into the future.
TS: Having oversight with a procession of blockchain startups all over the world — Right now, what would you say to founders, entrepreneurs, creatives, or anyone diving into crypto for the first time?
Anything you would have done differently?
TF: We all make mistakes. The biggest ingredient is persistence. If you’re leading a team you will always deal with a crisis this is a normal day at the office whether in-person or remote. You will find new challenges or reasons to not do what you ultimately set out to do.
Being humble — it’s very humbling to build companies whether it’s the people you meet or being part of an ever-changing landscape. No matter how well you’re doing you can always improve and do much better.
Waking up and realizing the work isn’t even close to being done.
In the crypto world: Anyone who wants to move from traditional finance or any other background — some do it successfully some fail like any crossover:
The most simple mindset is you have to adapt.
While crypto can resemble other asset classes it has it’s own world and mentality.
At first glance, many things may not make logical sense when you first start out in crypto. Sometimes it doesn’t work out for those jumping in as a career move as there are many hidden nuances of crypto world. In crypto there are irreversible transactions so with our company when we manage that risk of hundreds of millions of dollars there is absolutely no room for a mistake or error.
If you’re a bank and you send money from X to Y there’s a mechanism to recover — it’s a high stakes game in crypto including security and procedures one puts in. Security is a complex multi-step process yet traditional finance often lacks the transformative potential for all.
TS: Do you think there is a stage of sophistication happening now where people are past-reflective while looking forward during this particular bull run?
If there is more content and evidence of what works and what doesn’t will it always be difficult to gauge financial, cultural, and social impacts of crypto every quarter, every season, every year? — What are you most excited about YIELD three months from now?
TF: We’ve got a busy timeline for the rest of the year as YIELD 2.0 app rolls out. More robust fiat rails to help us go full-fledge with infrastructure. We have some interesting products for more advanced investors coming soon.
Crypto happens very fast as the space matures — globally 24/7. 24/7 in public online settings completely contrary to what happens in traditional financial markets where everything happens behind press releases for months or years of things happening behind closed doors.
Some of the most significant challenges is there are colleagues I’ve never met in real life before. Building a remote company is exciting in the sense of the importance of trust with people you’ve only ever met remotely.
What’s predictable is how crypto spaces move at lightning speed — it’s never a dull day ♦
Inventory of YIELD and questions on decentralized finance. You can find Tim Frost on Twitter for updates on YIELD App here.
Taylor Simone is a freelance journalist and techie crewing for Vancouver’s motion picture industry specializing in conflict resolution, privacy, data, and reporting. Her work has appeared in VICE, Georgia Straight, Arsenal Pulp, Rabble, and others.
She’s dispatched for Supernatural, Riverdale, Batwoman, Chilling Adventures of Sabrina, Nancy Drew, DC Legends, The Flash, Superman & Lois, Firefly Lane, Motherland, Zoey’s Extraordinary Playlist, Away, Mighty Ducks, Jurassic World: Dominion, The Adam Project, & dozens more…
Her debut book If At First You Don’t Succeed is slated for 2022.
Sig. taylorsimone@protonmail.com
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