OpenSwap x Axial AMA Recap
Last week, OpenSwap Founder Bruce Chau had the pleasure to attend a quick AMA through Axial’s Telegram channel. This was similar to the AMA hosted through Snowball and Teddy Cash not too long ago, a recap of which can be found here.
The following are the questions and answers that took place during the event, including many questions from the community near the end. Read all about them below:
Zack:
1. Please introduce yourself to the community and how you got started in crypto?
Bruce:
I’m Bruce, a core team member and founder of OpenSwap. I am a recovering enterprise dev, enlightened by blockchain in 2018, and never looked back.
At the core, our team’s strength is technology, however, we’ve been aiming to build up a community of talent that crosses boundaries of technology, finance, marketing, and more through the many partnerships we have developed and continue to build.
We hope to attract more blockchain developers and contributors to our team through participation events such as hackathons that ultimately build up the #DeFi community!
Zack:
2. Please tell us more about OpenSwap.
What was one of the main objectives in starting the protocol?
Bruce:
Sure thing :)
As the DeFi universe continues to expand, on-chain liquidity becomes increasingly scattered and less efficient across multiple chains and the situation is poised to get increasingly worse as new chains emerge with individual DEXs on each chain. The main objective of OpenSwap is to solve these challenges.
At OpenSwap, we position ourselves as every crypto project’s BFF by providing a set of core technologies to empower teams to establish sustained token health and attract liquidity from different chains. We hope our technologies can enable token projects to focus on what they do best — #BUIDL 👷🏽
OpenSwap’s core technologies are:
OpenSwap Bridge, an ANY-to-ANY single asset #crosschain bridge that offers more efficient crosschain swapping of chain-native digital assets through the use of our single-asset vaults in a decentralized manner.
Hybrid Smart Router, a set of smart contracts that identify potential swap paths leveraging both AMM pool smart contracts and liquidity queue contracts, helping swappers identify the most cost-efficient routing based on the availability of liquidity queues and AMM pools. (This functions similar to 1inch’s router)
Liquidity Queue, an alternative method to the traditional AMM mechanism that can provide users the ability to make on-chain swaps at zero slippage 🔥🔥🔥. The Liquidity Queue technology can also be used for a variety of DeFi purposes such as conducting on-chain private sales, offering on-chain guaranteed token buyback (Anti-Rug IDOs and secondary raising), token flash sales, and much much more!
Bruce:
Let’s go!
Zack:
3. How does OpenSwap differentiate from the other bridges currently available?
Bruce:
Ah yes, the billion-dollar questions! We get asked about this a lot
So to better understand this, firstly, we should all know that in the current crosschain environment, the most typical approaches that are being utilized are..
Lock and Mint Synthetics — A method used by the likes of Binance Bridge and Multichain (Anyswap), where native tokens are given to a centralized custodian who in turn mints a synthetic version of the token on a target blockchain. The decentralized version requires the usage of decentralized custodians that are properly incentivized to behave appropriately. The majority of crosschain bridges are of the Lock and Mint variety, the difference mostly lies in how true decentralization is actually achieved, and also the bridge operators’ approach to key security.
And…
Crosschain Liquidity Pair Pool — A method experimented with and led by the likes of Throchain, whereby liquidity providers stake pairs consisting of a native token with Thorchain’s RUNE token into pools, and Throchain routes swaps leveraging the common RUNE token to facilitate crosschain swaps. With this approach, swappers are able to receive native tokens on the target chain instead of synthetics.
So unlike the conventional bridge types listed above, OpenSwap Bridge is introduced as a solution that offers more efficient crosschain swapping of chain-native assets through the usage of single asset vaults and a basket of decentralized mechanisms. With the incorporation of other OpenSwap technologies like liquidity queue and hybrid smart router, Open Interchain Protocol will form a fully transparent and capital-efficient end-to-end crosschain swapping solution!
Zack:
4. Could you please expand a bit on your tokenomics and the utility of the OSWAP token?
Bruce:
Of course, this is an area where most hodler and supporters would take a great interest in!
OSWAP token is the governance token of the OpenSwap ecosystem. The core purposes of the $OSWAP token are to:
🚀 Incentivize usage of the OpenSwap platform
🚀 Encourage users to get involved in governance
🚀 Enable a wide variety of platform privileges surrounding our core technologies and offerings
Specific to the OpenSwap Bridge, upon mainnet release, users who wish to utilize OpenSwap Bridge as their crosschain solution will need OSWAP tokens as transaction fees for their crosschain activities. Furthermore, for people who are holding Bridge Troll NFTs, if they wish to become node validators for the OpenSwap bridge, they would need to stake $OSWAP tokens as bond.
There are also many reasons to hold OSWAP surrounding other OpenSwap core offerings such as setting up the different types of liquidity queues for different purposes, as well as for users who want to participate in OpenSwap NFT loyalty program, they’d need $OSWAP for staking.
OpenSwap has designed its tokenomics to support a sustainable long-term project ensuring that:
💥 95% of all tokens will be subjected to locking and gradual vesting schedules
💥 Over 70% of all tokens will be subjected to vesting schedules of over 24 months
💥 Core team allocations and related tokens are subjected to a long-term vesting period to ensure community member confidence
We are here for the long haul!
Zack
5. What steps have you taken to enhance the security of your protocol?
Bruce:
Yes, keeping users funds #SAFU is of utmost importance to our team!
OpenSwap establishes trust with the community through 3rd party audited smart contracts and has protocol parameters transparently managed through our governance portal since our project launched.
So even though OpenSwap is still in beta, we want our contracts to be as solid as possible. This is why our core contracts are audited by the likes of CertiK, Beosin, and Peckshield! These are all leading blockchain security audit firms that combines manual testing, static analysis, and formal verification for the most robust smart contract security in the industry.
Furthermore, OpenSwap has partnered with projects in the insurance niche to cover our users’ funds. In case of payout, the coverage amount will be paid directly to our team, and we will distribute it to affected users. Currently the coverage includes contract vulnerabilities for core technologies deployed on Binance Smart Chain, and as additional core technologies such as the OpenSwap Bridge gets deployed on mainnet, we will continue looking into insurance options so as to safeguard 🛡 our users’ funds.
Zack:
You all are doing a solid job in ensuring your community has options to hedge against vulnerabilities.
Bruce:
We try our best!
Zack
On to the last question.
6. What was one of the main motivations in integrating with Axial?
Bruce:
Let’s go! 😊
So.. for Trolls of you who haven’t heard, the OpenSwap cre team have recently kickstarted the testnet phase of OpenSwap Bridge by deploying on Ethereum Kovan, AVAX Fuji C-Chain, and BSC testnet.
And in light of launching our bridge on testnet, OpenSwap had introduced a partnership campaign called — the Bridge Founders Program — where we would identify and invite hand-picked projects that we deem solid to become part of the first cohort in integrating with OpenSwap Bridge upon our launch on mainnet.
We invited Axial to participate in the Bridge Founders program because we see great potential in Axial being able to offer a significantly lower swap fees for high-volume trades that involve value-pegged assets such as USDT.e and USDC.e, at the same time, just like OpenSwap’s Single Asset Vaults, it incurs little to no impermanent loss when users provide liquidity.
We believe we see eye to eye with Axial in many areas, espiecially when it comes to reducing impermanent loss for users and LPs! We can expect strong growth with $AXIAL. 🚀🚀🚀
A key area that we believe the OpenSwap Bridge can complement with Axial is through opening easy access points for new users and additional liquidity from different chains such as Binance Smart Chain, Ethereum, Polygon, Fantom, and pretty much any other EVM compatible chains in the future.
For OpenSwap, the inclusion of $AXIAL token to our Bridge Founders Program will help to enhance liquidity synergies for our bridge during the mainnet release, and we anticipate the Axial team to be an excellent strategic partner on Avalanche in addition to our existing strong network of strategic partners on BSC side such as Coin98 and Impossible Finance!
Community Question #1
OpenSwap has a Liquidity Queues feature, could you explain the basic concepts behind the liquidity queues and how does it differentiates it from other DEX aggregators?
Answer:
This is a great question, and I love that community members reading up about our technologies!
OpenSwap’s liquidity queues is a new approach to onchain liquidity that offers traders and market makers a novel and efficient mechanism for carrying out onchain trades.
Onchain trades are growing exponentially since the introduction of Automated Market Maker (AMM) based DEXs due to the ease of listing new pairs and a straightforward pricing mechanism. However, all is not perfect with impermanent loss, lack of control for market makers and liquidity providers, and high transaction fees and price slippage for market takers.
At the core of all DEX swaps are the pricing mechanism. AMM DEX’s base pricing off of predefined constant product formulas (i.e. x*y=k) and arbitrage traders are incentivized to trade off the pool to keep it pegged to market prices. Although such a mechanism will reflect market pricing, it will only work for small volume trades due to the inherent slippage in the mechanism.
As noted above, rather than simply refining AMM formulas for modest improvements, OpenSwap’s liquidity queue technology removes the one-size-fits-all approach of current DEXs. instead of a single pricing mechanism. OpenSwap believes that pricing should be based on individual use cases. As such, the liquidity queue base layer technologies can be shaped to create different queue types, with each queue type based on a different pricing mechanism.
Liquidity Queue will enable trades to occur at spot-market prices obtained from decentralized oracles, and it uses a secure adaptor protocol that guards against many of the shortcomings of using oracles. The secure adaptor protocol includes a series of customizable circuit breakers that ensure that liquidity providers are protected against front-running or recent security exploits as trades that fail any of the circuit breakers will not be carried out.
OpenSwap Liquidity Queues are designed for token pairs that have a well-established off-chain spot market price provided by oracles. Instead of using the oracles directly, OpenSwap has created a secure adaptor protocol to leverage oracle pricing in a controlled manner providing traders with the security of layered circuit breakers that guard against sudden price fluctuations, front-running, and
Community Question #2
What role does the Bridge Troll NFT play in the Openswap ecosystem and is it traded in any secondary NFT marketplace?
Answer:
Thank you for asking this question.
Not to say that other NFTs are bad but ours is really one of a kind. Our NFTs have actual DeFi utilities. Upon deploying our single asset crosschain bridge on mainnet, there will be validators monitoring each order request and only our NFT bridge troll holders can become node validators, so you can think of it as a license to earn lucrative bridge fees for helping keep the troll network secure.
Moreover, we integrated with Chainlink VRF in the generation of our NFT trolls. Even though all NFTs of the same level share the same functional role in our Open Interchain Protocol (single-asset crosschain bridge), they are NFTs with graphical properties such as backgrounds, clothing, facial expression, and rarity etc. We needed an RNG that is secure and open to ensure system integrity and prevent potential manipulation. We went with Chainlink’s VRF, this way our participants are provided with automated and publicly verifiable assurance onchain that our Trolls are truly generated randomly. We value integrity, fairness, and true randomness at OpenSwap!
Community Question #3
Safety is important , So can you talk about the security technologies related to us adopted by your platform ？ What is your approval voucher? Has security and trust been audited ？
Answer:
Yes, at OpenSwap, we believe that having strong partnerships is the key to success in the DeFi space, and as I am a buidler myself, I love helping other projects and people to buidl as well. We have a lot of top tier projects and institutions as partners. Axial is of course on the list!
To name a couple more, we have the likes of Impossible Finance, C98, Double Peak, NGC, DeSpread, as our backers. And through our recent and ongoing co-operative initiatives such as the OpenSwap Bridge Founders program, we expect a lot of our partners to integrate with our single asset crosschain bridge upon our release on mainnet.
Currently, our Bridge Founders’ combined TVL is at around $500m, and we look forward to welcoming a portion of these liquidity as transactions using OpenSwap Bridge as their crosschain solution!
Community Question #4
I know I’m a bit late from 8th April you announced testnet but still curious to know Can I participate in Testnet now?
Answer:
Yes, most definitely! the OpenSwap Bridge testnet event is on-going until our release on mainnet! We will be actively making changes and improvements to it on a weekly basis, so community members are welcome to continously participate in it and help us find flaws and bugs as we update each subsequent patches!
For more information, feel free to check out our post about this lucrative event 🤑
Be sure to check out 👀
https://twitter.com/openswapdex/status/1512473907735199744
Community Question #5
Safety is important , So can you talk about the security technologies related to us adopted by your platform ？ What is your approval voucher? Has security and trust been audited ？
Answer:
Yeps, as mentioned earlier, keeping our users funds #SAFU is of utmost importance to us.
OpenSwap establishes trust with the community through 3rd party audited smart contracts and has protocol parameters transparently managed through our governance portal since our project launched.
So even though OpenSwap is still in beta, we want our contracts to be as solid as possible. This is why our core contracts are audited by top tier auditors such as CertiK, PeckShield, and Beosin.. they are leading blockchain security audit firms that combines manual testing, static analysis, and formal verification for the most robust smart contract security in the industry.
Furthermore, OpenSwap have established partnership with projects from the insurance niche, to cover our users’ funds. In case of payout, the coverage amount will be paid directly to our team, and we will distribute it to affected users. Currently the coverage includes contract vulnerabilities for core technologies deployed on Binance Smart Chain, and as additional core technologies such as the OpenSwap Bridge gets deployed on mainnet, we will continue looking into insurance options so as to safeguard our users’ funds.
Rest assured the OpenSwap core team will do everything in our power to keep users funds as safe as possible! 🛡🛡🛡
Zack:
Thank you @Bruce_OpenSwap for visiting the Axial Telegram community.
We greatly appreciate all the detailed info and answers.
Bruce:
It’d been a pleasure to meet with the friendly people of the Axial community! Axial is a great project, and we look forward to deepen our strategic relationship as both projects mature!
Zack
If anyone has more questions for the OpenSwap team, feel free to swing by their TG: @openswapdex
Twitter: https://twitter.com/openswapdex
Announcements: @openswap_official
Docs: https://doc.openswap.xyz/
Bruce:
Looking forward to seeing you guys over on our side! And remember to try making crosschain swaps for $AXIAL with ANY tokens from ETH and BSC!
About OpenSwap
OpenSwap is the world’s first DEX providing on-chain swaps at zero slippage with hybrid smart routing, and a single asset cross-chain bridge. As the DeFi universe continues to expand, liquidity becomes increasingly scattered across multiple chains and the situation is poised to get worse as new chains emerge with individual DEXs on each chain. The OpenSwap team has been working for the past several months on building up a vision of a greater OpenSwap ecosystem that will become every crypto project’s BFF through a set of key offerings that will empower teams to establish funding and sustained token health, allowing teams to focus on what they do best — BUIDL.
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