OpenSwap Summary Recap with Shin Chan Community
We held a live AMA with Founder of OpenSwap, Bruce Chau on 28th July 09:00 PM (UTC+8). Here’s the recap for those who missed it.
Introduction
Jack: Before AMA start, can you introduce yourselves and the team background?
Bruce: I’m Bruce, a key member and founder of the OpenSwap project, a recovering enterprise dev, enlightened by blockchain in 2018 and never looked back!
At the core, our strength is technology and we have 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 developers and contributors to our team through participation of events such as hackathons that ultimately build up the DeFi community.
And of course we hope that the Shin Chan community will join us as well 😊
Jack: Do you have any news/update about OpenSwap would like to share with us?
Bruce: Ok, let talk a little about the problem we have identified in the DeFi space and how our OpenSwap team hopes to address these problems.
As the DeFi universe continues to expand, liquidity will only be increasingly scattered across multiple chains and the situation is poised to get worse as more new changes emerge with individual DEXes on each chain.
Our project began about a year ago during the summer of DeFi 2020 when Uniswap was gaining popularity with its AMM liquidity pools. At the time, we had an urge to address the two primary issues: slippage and impermanent loss.
The idea was to provide on-chain spot market priced swaps in the form of liquidity queues. From there we have been BUIDLing for nearly a year to provide users with choice — the freedom to swap with any liquidity source.
We are closing our strategic round and we have received very positive feedback from our investors…So this is a very promising update from our side 😊
AMA Twitter Section Begin:
Q1: I read your tweet about the partnership between OpenSwap and Impossible Finance. Can you tell me why you cooperate? What is the benefit of this cooperation for both parties, and users
Bruce: Impossible Finance is one of the many important strategic partners that are contributing to the OpenSwap project. Our team received a technology contribution from IJS Technologies, which is an award-winning technology firm that received grant support from one of the older DeFi teams, OAX foundation in 2020. Our smart contracts are reviewed by CertiK, a very reputable security firm in the space.
We are part of the first cohort of Impossible Finance who have provided us with valuable guidance during our strategic round leading to our IDO on their launchpad. The tentative launch date for OpenSwap is currently penciled down for the end of Summer, so stay tuned and follow us on social media to receive exciting updates on the sale of $OSWAP.
Q2: Do you agree that a project’s token value is as good as its utility? If yes, since the OpenSwap protocol will issue $OSWAP token as part of the protocol’s release, what are your plans for increasing its value and what are the main purpose of the $OSWAP token?
Bruce: Yes, we absolutely agree that any project token value is only as good as its utility by bringing value to the DeFi ecosystem. The OpenSwap protocol will issue a governance token called $OSWAP as part of the protocol’s release.
The token will be established as an ERC20 token, and will be bridged to Binance Smart Chain to enable governance of the BSC version of OpenSwap during the initial launch.
$OSWAP will be utilized in the following ways:
- For liquidity providers, they can stake OSWAP into Liquidity Queues to increase the priority of their liquidity, prioritizing their earning for trade fees.
- Bridge Trolls (node validators) for the Open Inter-Chain Protocol are required to stake OSWAP to become part of the network and to earn fees as assets cross the OpenSwap Inter-Chain bridge.
- Yield farming by providing liquidity for OSWAP single asset bridge vaults as well as other contests
- For users to participate in governance by staking OSWAP to create proposals or vote on risk parameters for the protocol.
More utilities will be introduced as the OpenSwap project continues to develop, we are confident that $OSWAP will thrives as we continue to evolve and improve our token use cases.
Q3: The Spot Price Queues offer traders an alternative to OTC desks as a way to exit a position or buy into it without slippage at the spot market on-chain, nonetheless, how do oracles provide well-established off-chain spot market prices? What’s the Security Score of these queues?
Bruce: Spot Queues execute swaps at spot market prices provided by price adapters voted in by decentralized governance. Any developer may create a price adapter that adheres to our Secure Adaptor Protocol, a framework provided to developers as a guide to incorporate a set of circuit breakers.
At the core, the reference price is provided by an Oracle price feed such as ChainLInk, Band, etc. The compulsory circuit breaker would be the minimum security score where each price adapter smart contract must be audited and receive a security score through CertiK Shield and ongoing scans under CertiK Skynet.
Decentralized governance dictates the minimum security score required before a swap is executed. Other circuit breakers may be included such as trade size limits, price deviation against the AMM price, etc. Developers have the choice to enhance the security of the price adapter and create a proposal for OSWAP holders to vote on incorporating the change.
Q4: How OpenSwap plans to keep stabilizing the values of 1 B $OSWAP token? will it considering to applied burned mechanism.
Bruce: Other projects have applied a burning mechanism as a way to stabilize the value of their tokens. Although our team is not closed to this idea, we believe that the value will be dictated by the ongoing utilization of the tokens in the OpenSwap ecosystem.
Reducing the friction of moving digital assets across different chains is our ultimate goal and in order to achieve this, Bridge Trolls (node validators) of the Open Inter-Chain Protocol are required to stake enough bond in the form of $OSWAP tokens to cover the value of each Inter-Chain swap.
There have also been studies indicating that buyback and distribute (as opposed to buyback and burn) mechanisms provide a better long-term sustainability for projects. OpenSwap is committed to continuously develop utility for OSWAP to bring value to the DeFi community and priority long-term sustainability as shown by the vesting schedule of our backers (24 months) and team (up to 48 months).
Q5: Open Swap has a staking program with OAX tokens staked and rewarded with $OSWAP tokens.
is there any other stake for this native token?
and how do we participate?
Bruce: As a token of appreciate to our strategic partners, we will periodically launch reward programs that would positively involve our partner communities. OpenSwap farming will be introduced soon after the IDO as a way for community members to earn $OSWAP tokens.
We have recently launched a new staking campaign, where users can stake OAX tokens and earn OSWAP tokens, and we will very soon launch other additional staking campaigns where users can stake Impossible Finance ($IF) and Coin98 ($C98) on OpenSwap to earn $OSWAP.
We welcome and encourage community members in the DeFi space to follow us across our social media to receive and discuss about OpenSwap’s current and future reward programs.
We are currently most active on:
Telegram: http://t.me/openswapdex
Twitter: https://twitter.com/openswapdex
Medium: https://openswapdex.medium.com/
Telegram Live AMA Begin:
Q6: Liquidity Queues zero slippage swaps ?
How could it be possible?
Please elaborate more. Because never found it on all swap platform i know.
Bruce: A subset of Liquidity Queues called Spot Queues will always execute swaps at spot market prices sourced from the Oracle price adapters as described earlier. Unlike order books or AMM pools, the size of the trade will not affect the pricing of the swap as long as the spot price has not changed — zero slippage!
Q7: In the market there we already have many DeFi aggregators such as 1inch, Zapper, Octo.fi…etc. So, how does OpenSwap compare to them? How OpenSwap is planning to compete with them?
Bruce: We believe in a co-opetition model, especially in our case where our solution and focus areas span across different areas such as AMM swapping, farming, dex aggregation, cross-chain bridging etc. Our focus at OpenSwap is to introduce novel concepts and technologies such as our liquidity queues and hybrid smart routing that will strengthen the industry as a whole.
Unlike other DeFi aggregators, we are the only working model out there that can solve the issues of zero slippage. In fact, we would love to have the other DeFi aggregators integration with our Liquidity Queues!
Q8: You intend to implement limit orders. Will this be enabled through building an order book, does market makers would need to be involved? What funds will be used to compensate market makers if the reserve fund’s vesting period is at least six months?
Bruce: The limit order queues have been renamed to Spot Ranged Queues. This type of queue will allow liquidity providers to specify the price range where their liquidity will be eligible for spot market price swaps. We do not utilize an order book mechanism for this type of queue, it still gets executed in a similar fashion as the spot priority queues using Oracle price adapters. Unlike centralized exchanges, there will be no market maker. Liquidity providers for queues will earn the transaction fees from the swap against their liquidity.
Q9: You will be officially launching on ERC-20. While everyone know that Ethereum has high gas fees and scalability issues. So, any plan to move from ERC-20 to other scalable chain such as Binance Chain (BSC)?
Bruce: Our initial launch is on BSC with plans to launch on ETH and other EVM compatible chains. We have already completed a test deployment on Moonbeam on DOT with plans to test L2 solutions such as Arbitrum and Optimism.
Q10: I was reading that a secure cross-chain asset bridge is being developed in OpenSwap. How will this bridge work and what will be the main features that will distinguish it from similar products offered by other projects?
Bruce: Glad you did your research! We are super excited about this development as our Inter-Chain swaps will enable users the swap assets from different chains without having to deal with synthetic assets. The Inter-Chain swaps will be powered by our single asset bridge vaults where liquidity providers may earn fees without any impermanent loss like AMM pools. Our Bridge Trolls (node validators) will be responsible for utilizing bridge vault funds to feed into our Hybrid Smart Router to maximize the return on the swap on the more cost efficient chain.
Q11: Can you explain how your Tokenomics is distributed? How many $OSWAP will be minted? And how many tokens will the team lock? And why did you choose the BSC network?
Bruce: There will be a total of 1 billion $OSWAP ERC20 tokens minted. OpenSwap was developed with governance from the get-go. We currently minted 20 million tokens and bridged them over to BSC to be staked in our governance portal to configure initial risk parameters during the first year. Our team portion will be vested up to 48 months, this ensures to the community that we are not here for quick profits, we are in it for the long haul.
Q12: NFT is very hot trend now, do you pretend to catch up with this trend or still follow and focus your original roadmap?
Bruce: Indeed this is a hot trend and it is definitely on our radar. For now our team is focused on revolutionizing on-chain liquidity with our queues and Inter-Chain swaps. As we know, the DeFi space is continuously evolving and we are always on our toes, keeping up with the changes. Would there be any interest in inter-Chain NFT swaps? 😉
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