LGO GROUP Technical AMA
With COO, Ouziel Slama & CTO, Charles Couillard
As the November Beta release of the LGO Markets exchange platform is approaching, we figured it was the right time to invite LGO’s team members from both Bordeaux and New York City to participate in an AMA with our community.
In this first piece, LGO Group COO, Ouziel Slama, and LGO Group CTO, Charles Couillard are answering questions related to the technical side of LGO’s exchange platform.
Margin Trading would be pretty revolutionary on a (hybrid) decentralized exchange since as of now there is no safe way of doing it. Are there any plans to implement Margin Trading by the November release?
Margin Trading, as you can imagine, is a very complex topic, particularly with an anti front-running algorithm. But we know this is a very important feature and we are working to find solutions. As soon we have a plan we will communicate it to the community.
A great UI is crucial for the success of an exchange, especially when it’s designed for retail users. How is LGO working to ensure that they’re creating an intuitive user experience for those using their Exchange?
Yes, a good UI is absolutely crucial for both category of users (institutional and retail) of our exchange. To ensure this, we are working closely with UI experts and traders to provide the best user experience.
Other exchanges give the user the opportunity to switch the chart to the website, TradingView’s, interface. That has many benefits for users interested in TA. Could LGO integrate this?
We are also TradingView fans and we have already contacted them! We currently have their SDK to integrate the chart within the exchange. That said, given the priority of tasks for our exchange, TradingView will not be integrated in the November release.
How many transactions per second can the engine handle per trading pair?
Our target is 1 million orders/sec. We’re still working getting towards that goal.
One million orders/sec without scaled ETH or with scaled ETH?
Since our anti front-running algorithm only uses the Bitcoin blockchain, Ethereum performances are not relevant to us.
I’d like to see more features for the LGO tokens, such as a coins taking program? Any plans for that?
Yes, we are thinking to launch a coin taking program with the November release. We will communicate as soon as a decision is taken.
Which trading pairs will be available at the start of the November release?
For the November release, our first trading pairs will be BTC/USD and BTC/EUR.
Why only BTC/USD-EUR? Is it complicated to add other major coins (LTC, ETH, etc)?
It’s not “complicated” but it does indeed take time. Bitcoin forks will be easier to add so we will most likely add them first. Following adding support for Bitcoin forks, Ethereum is our priority. LGO support (and ERC20 tokens in general) will be added with the ETH.
Regarding the bonus distribution, there were only 7.2 million LGO Tokens distributed instead of 9 million as intended. Next to that, the bonuses are coming from the reserve, instead of the claimBonus method on the smart contract. Why are there only 7.2 million LGO Tokens distributed instead of 9 million and why isn’t the claimBonus method used by the reserve?
Good question! We encountered a bug in the claimBonus method, therefore we distributed the bonus from the LGO reserve. As a result, the reserve and founders wallets didn’t receive the bonus. That’s why only 7.2 million LGO Tokens were distributed instead of 9 million.
How does this bug affect the smart contract and the total circulating supply?
Consequences are, there is now 5% less total circulating supply of LGO Tokens as well as the reserve and founders not receiving the bonus. We will have a Medium article detailing this in the next coming weeks.
Login via private key/json/metamask for LGO Exchange (retail investors) would be great in the future. Users would still have full control over their funds while enjoying the benefits of a regulated exchange (with reliable fiat gateways) without having to have a ledger wallet. Is this something LGO can implement in the future?
For now, it’s planned to only allow hardware wallet for connecting to the platform.
Can we get an update regarding the new whitepaper?
The new whitepaper is almost ready but still need the green light of our compliance officer to be published.
Regarding retail users, is KYC needed for them to use the exchange? Or is KYC required only for those moving large sums?
KYC will be always needed no matter the number of sums.
I want to know how trading from Ledger will function. When you connect ledger to the client and you place an order in the exchange — is that order removed from the market when you disconnect Ledger?
Great question! No, your order will be signed with a hardware wallet, that’s all.
Will the desktop client support Windows and Mac? What about Linux?
We’ll support Windows and Mac at launch. Currently, the Linux desktop client already works but we’re not sure we’ll release it due to support concerns.
I just read the LGO Exchange’s FAQ and it says that my market order will take half of the block time to execute. Does that mean it takes approximately 5 seconds to execute an order?
Our anti-front-running algorithm has changed to decrease latency, it will be described in the new WP.
How will the LGO Tokens features (burning, fees etc.) work if the trading platform is not connected to the Ethereum blockchain?
In the first phase, LGO tokens will be bought and burned semi-manually, each X days, by LGO. In a second phase, this process will be completely automated.
Does that mean that fees will be burned from the institutions?
That means LGO will buy (with fees) LGO tokens and will burn part of them.
So LGO isn’t powered by Ethereum anymore? It’s secured by BTC and their own matching engine (off-chain?). In the early days I read something about moving to EOS if Ethereum won’t scale fast enough, is that not an issue anymore?
Good question! We use timestamping on Bitcoin, and this solution will allow us to process an unlimited amount of orders/sec. More details regarding this solution will be highlighted in our upcoming whitepaper.
Will the matching engine combine the pools of coins on LGO Markets and LGO Exchange to provide better liquidity? Or is this not possible due to regulations (privacy for institutional investors)?
We are working to build a solution to mix liquidity in compliance with the regulation. It’s possible but not trivial.
LGO Group’s mission is to build confidence in all stages of a crypto-asset’s life: from creation to sale, promotion, acquisition, storage, and use. Our ambition is global. We want to enable large financial institutions with the ability to trade cryptocurrencies with complete confidence and trust while providing retail investors an identical secure framework.