AMA RECAP : DeFi Raccoons X Blockswap.
Date : 14 May 2021
Host : @DeFiNaut
Guest :Blockswap Team ( Scott — COO & Matt — Blockchain architect)
INTRODUCTION .
Hello everybody, thank you for joining us today for another DeFi Raccoons AMA session! Today we’ll be talking with the team from Blockswap!
I hope you’ve made yourself comfortable and will enjoy today’s session, so let’s get started. Welcome, please tell Raccoons a bit about yourselves!
DeFi Naut | Owner @DeFiRaccoons:
Q1.always! lets talk about Blockswap
Scott T:
Myself Scott — COO / Commercial Lead of BlockSwap.
I entered the blockchain sector in 2014, I previously held the role of Director of Global Business Development at Wanchain Foundation, a blockchain protocol focused on cross-chain smart contracts.
Prior to BlockSwap I built and lead WeWork’s Blockchain focused incubator in London.
DeFi Naut | Owner @DeFiRaccoons:
Wanchain… those were the days
Scott T:
haha yes.
DeFi Naut | Owner @DeFiRaccoons:
I remember that one vividly
Good to know you have been around the block for a while 🙂
Matt S:
Hi Myself Matt — I am a Blockchain architect specialized in cross chain, PoS architecture who headed the multi-chain asset tracking network DSCAN and Social money platform woolah prior to BlockSwap. I scribble things on https://mattshams.com/, now working toward bring Universal basic saving a reality 🙌
DeFi Naut | Owner @DeFiRaccoons:
Nice one Matt, good that you are here today
ok guys so it’s time to get in the elevator, just the three of us.
Q2.so imagine there’s a Raccoon in front of you, and he asks you about Blockswap.
Matt S:
Blockswap came from right to exit as the ultimate freedom, our system is focused on giving 100% control to users on their money and they could move wealth from one chain to another. Since everything in blockchain happens within a “BLOCK” Blockswap seems to be perfect bringing SUPERFLUID Asset yield mechanism in a cross-chain narrative
Scott T:
Elevator version… BlockSwap is an immutable, decentralised, non-custodial protocol that brings fixed income products to proof of stake chains.
We use staking and PoS stake as a mechanism to trustlessly redistribute wealth to end customers.
DeFi Naut | Owner @DeFiRaccoons:
ok so it’s all about passive income then
Matt S:
its about predictable savings
DeFi Naut | Owner @DeFiRaccoons:
that sounds even better
Q3.Can you tell us about the origins of the idea for Blockswap? How far back does it go, what inspired you to start building?
Matt S:
no matter what your wealth appreciate 7% in $ 🤑
Scott T:
We believe the mainstream adoption for Defi will be through solving real-world problems of everyday users.
The best way to ensure this they have a safer and easier place to preserve and grow their wealth on-chain. We do this by bringing sustainable savings markets to users utilising PoS.
Inspiration came from seeing whats happening in the world and needing to give everyone access to a permissionless sustainable savings product, anywhere in the world with just a smartphone and internet connection.
DeFi Naut | Owner @DeFiRaccoons:
ok very interesting, I like what you guys are building
Q4.Tell us about the team working on the project! What are their backgrounds? How many of you are working on Blockswap at the moment? How many of those are devs?
Matt S:
Blockswap is around in the market for more than 2.5 yrs mostly on Cross-chain solutions and PoS chain asset tokenized Wrapping, We started AAMM trial in the last year as an initiative to bring PoS asset to DeFi in a productized manner for making useful for everyday users at the same time incentivizing existing PoS tokenholders to make an yield from this solution.
we are small pizza team of 7 and exapnding, spread across both side of atlantic US, Europe. we are actively hiring 💪
DeFi Naut | Owner @DeFiRaccoons:
Q6.So could users be staking their assets to secure a chain and at the same time receive 7%?
Matt S:
great question!
OpenSaver is new architecture from the ground up for a sustainable saving market for the mainstream. Every asset in OpenSaver ecosystem will have a fixed native yield. In this case SaverUSD has 7% which comes from a Bonded PoS Asset collateral backing that deposit. The Market has an opportunity to bond the SaverUSD deposit with the PoS Asset keeping 150% collateral ratio and go long on PoS asset value getting a Balanced Exposure. OpenSaver smart contract will make sure the assets are maintained with this collateralization ratio.
DeFi Naut | Owner @DeFiRaccoons:
Q7.I mean, for instance ethereum, you need to stake 32 eth in a validator nodecan you stake the coins to secure the chain and validate transactions and also receive 7%?
or is that seperate
Scott T:
Open Saver is built on a AMM model where users add liquidity to a loader pool (dtoken or SLOT) or bring USD Stable coin to the minter pool to buy the saver bonds from the market (packaged staked assets).
In this scenario adding Liquidity provisions to the dToken pool gives users a 10% APY on staked ETH and for SLOT token holders gives a means to sell their SLOT to the market for USD stable coin.
Matt S:
7% is for SaverUSD 😂 for ETH its 10% additional to Staking rewards from OpenSaver.
Scott T:
We essentially focus on 2 types of users:
Users who want to stake their base native token and earn higher yielding inflationary rewards.
Users who want to bring fiat and earn a sustainable APY Savings without having to touch PoS themselves.
Matt S:
StakeHouse is where you tokenie your staked ETH… so its staked asset not a staking service. in a nutshell yes all ETH staked continue to secure the chain and give yield to its users
DeFi Naut | Owner @DeFiRaccoons:
nice
Q8.How far along is the project at the moment? Is it live? Can we try it out? What are you guys currently working on?
in essence I am asking, can I already earn yield 😄
Scott T:
We are launching our ETH2 CommunityNet (CN) through a protocol market fit exercise which is going live in this month. The CN shall launch a unique token incentive scheme bootstrapping our genesis community with that we have launched cBSN enabling users to participate.
This is called StakeHouse where we are simulating our ETH2 Coordination layer.
~250,000,000 cBSN will be distributed through an incentivized CN phase across 5 months.
CommunityNet is to drive a better alignment between users and our products intended functional utility. We want to enable users to test our products in a safe environment and allow us to improve on the UI.
Purpose:
- Users shall also learn how our AMM coordination layer works.
- We reward users through CommuntiyNet token for their participation.
- At the same time we build a foundational user base for the mainnet going live after.
DeFi Naut | Owner @DeFiRaccoons:
Q9.the incentivized CN phase, will users have to stake to earn tokens?
Matt S:
SAFE stake and get 1800% in the first month 🤨
DeFi Naut | Owner @DeFiRaccoons:
ok that sounds like a lot
Scott T:
Yes, users shall Safe Stake their tokens. You can see full details on our Blog of how to participate and we have already started announcing the first Stakehouses
https://blog.blockswap.network/
Polygon, Republic Crypto, Elevate and others…
DeFi Naut | Owner @DeFiRaccoons:
Q10.The Saver USD deposit account offers 7% APY. Where does this high return come from? Is it guaranteed? Can you explain the mechanics behind it in layman terms?
btw pls explain in layman terms 😄 this can be very difficult
you already talked a bit about it here
Scott T:
Sure lets try!
Every asset in OpenSaver ecosystem will have a fixed native yield. In this case SaverDollar has 7% which comes from a Bonded PoS Asset as the collateral backing that deposit.
Every time a Saver is purchased a Saver Bond is minted and the collateral of this saver bond keeping a 150% staked asset collateral reserve.
If the price of the base assets decreases, it creates an arbitrage opportunity to go long on the staked asset and for the market to buy up the Saver bond, manage the rights of that saver bond and flip it to the market.
OpenSaver smart contracts will make sure the assets maintain a 150% collateralized debt ratio.
Open Saver is built on a AMM model where users add liquidity to a loader pool (dtoken or SLOT) or bring USD Stable coin to the minter pool to buy the saver bonds from the market (packaged staked assets).
In this scenario adding Liquidity provisions to the dToken pool gives users a 10% APY on staked ETH and for SLOT token holders gives a means to sell their SLOT to the market for USD stable coin.
DeFi Naut | Owner @DeFiRaccoons:
thank you for explaining that
Q11.Can you tell us more about what you guys are working on for the near future?
Matt S:
Everytime a Saver is purchased a Saver Bond is minted and the collateral of this saver bond keeping a 150% staked asset collateral reserve. If the price of the base assets decreases, it creates an arbitrage opportunity to go long on the staked asset and for the market to buy up the Saver bond, manage the rights of that saver bond and flip it to the market. OpenSaver smart contracts will make sure the assets maintain a 150% collateralized debt ratio.
Scott T:
StakeHouse Game is the core focus for the coming months.
Launching Open Saver using ETH, ALGO, ADA, DOT where we work directly with the chain foundations. More news on that coming soon!
DeFi Naut | Owner @DeFiRaccoons:
Nice 🙂
yes I can see you guys are working on some highly technical stuff.Also the list of your backers is very impressive
LIVE AMA QUESTIONS .
Adam Kowal | Tokenswolf | Elevate —Q1. What does it mean: “To enter a Stakehouse, user need 8 SHB from that Stakehouse and hold a minimum of 100 cBSN or NFT.” Could you ellaborate on that?
Matt S:
user dont need SHB to enter stakehouse, they need only an invite from a stakehouse and 100 CBSN or NFT
SHb is for minting batches for stakehouse to invite users backing that batch… batch is like a collateral for issuing admittance to users in to the house
i am winner — Q2.As Education for crypto currency is necessary nowadays , what’s your plan to to attract those people who don’t know about cryptocurrency?
Scott T:
StakeHouse Game is an Intuitive means to participate and understand how the coordination layer works.
Crypto Baby — Q3.What is the structure of this project is it decentralised or a open sourced protocol where everybody can contribute? If so, how does the governance plan on being handled
Scott T:
Yes its a immutable, decentralised protocol. Similar to a protocol like Uniswap. Its can be integrated into any DApp, Wallet, DEX. Even CEX and Fintech Apps later on.
Roshan — Q4.How does Blockswap engage retail investors to take part in developing your future projects? and what long-term benefits will users experience in real life?
Matt S:
We are a middle layer as an L2 that connects various PoS chains with DeFi, so existing chain users can integrate with our solution easily from their native wallets and Dapps. At the same time L2 will give them a gasless endpoint for transaction processing, so integration possibilities are wide from a cross chain market gateway narrative.
JS88 — Q5.The goal of the DeFi app is to create a new financial system that eliminates subjectivity, bias, and inefficiency by relying on programmable terms. Does the BLOCKSWAP NETWORK support this vision and how does it participate in the DEFI space?
Scott T:
PoS and staking are quite synonymous with fixed income products like a government bond. Where Ethereum or other PoS chains are paying stakers a steady inflation reward.
Users are staking their assets as collateral for network security and being paid a inflation reward for that service and the principal is redeemable anytime.
This is similar to a government bond debt which is paying a coupon rate to the user for lending their money in the form of a fixed-rate yield and their principle returned at expiry.
We enable anyone to interact with these types of sustainable savings markets.
IMPORTANT LINKS .
Visit their website https://Blockswap.network
Here’s their telegram: https://t.me/bsnchat
And twitter: https://twitter.com/Blockswap_team
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