On 2nd July, Algomint hosted a Twitter Space AMA with founders Michael Cotton and AJ Milne, moderated by Algorand Community Champion Adriana Belotti.
Started 9pm AEST sharp and we already had a full room. Both questions from the community and answers from the founders received excellent feedback. Those who heard about it afterwards came to the Telegram Group for more information, so we decided to share the content here for public reference.
By and large, the questions can be divided into 4 parts: 1, Explain Algomint; 2, Custodian; 3, Futures Plans; and 4, Peers.
1. Explain Algomint
Q: If there was a way to explain very simply what Algomint does in one sentence what would it be?
A. If we explain V1 (this changes a little with V2 onwards) it would be:
A bridge creating the seamless movement of equity in and out of the Algorand ecosystem empowering the next generation of Defi.
There are about 50 other things I could add such as giving assets like Bitcoin all the power of an ASA.
Q: What is the need for Algomint in the current ecosystem and what problems does the project look to solve?
A. In order for the Algorand ecosystem to truly grow we need an inflow of equity, we need the gateway that allows all crypto assets to enter and utilise Algorand technology. Algomint solves this, the next task is ensuring that when they land into the Algorand ecosystem they ‘stick’. I always refer to it as creating sticky equity. To do this they need to find value in the ecosystem, obviously they will see the incredible value of Algorand Technology but they also need to have things inside Algorand they can use.
As we iterate we will also solve issues like standardising assets, think about the Algorand DEXes at the minute. If we end up with 10 different USD tokens creating pools and rewards programs becomes diluted and inefficient. With Algomint standardising different stable coins (initially USD and GOLD) into single assets it removes this issue. Which does open up another whole range of options, including swapping. Need USDC on Algorand and USDT on Ethereum. You will be able to do a 1:1 swap via Algomint with a fixed small fee.
Q: What is the business model of Algomint? Is it planning to earn from the transaction fee? If yes then the transaction fee should be more than 0.001 Algo, right? Or will it use the deposited assets to lend?
A. The fees are taken when you mint and burn (0.2%) once it is in Algo form it can move around freely with just the usual 0.001 Algo Fee.
Governance token holders will be able to stake to form part of the insurance on underlying assets and be rewarded for doing so.
Q: What makes the Algo minted ones better and what opportunities do they present?
A. Essentially, the fact they are on Algorand if you look at the assets in simple form. But we will also be having baskets, this opens up a lot of additional capabilities. For example we plan to initially have a USD and Gold basket. Which for one means a huge range of assets will be standardised into a single representation and secondly it will allow swaps. You could swap between USDT on Ethereum to USDC on Algorand at 1:1 ratio with just a small fixed fee. Opportunity wise, it opens up the coming Algorand DeFi ecosystem, which is a really interesting opportunity. I think we can all agree Algorand is an important technology for the future but in particular broader adoption for DeFi. Algorands team and overall credentials means institutional and generally broader adoption is likely to flow through Algorand. Creating huge potential for those here early. There is also a bit to be said about the cost and speed on Algorand and how it increases return / yield opportunities in DeFi. For example more transactions could be done that aren’t cost prohibitive on the DEXes, with lending platforms and all other forms of transaction. Creating more pool rewards such as trading fees, but also the low network fees aren’t lost but retained and compounded into greater returns for those participating.
A. Our audit is in August so we are a fair way through development. We do expect to have a TestNet version, but at the same time it depends on timings. When I say that, what I mean is that we are committed to the success of the overall Algorand DeFi ecosystem so if we had to shorten the testnet life cycle in order to go live alongside the first DEX it is something we would definitely make happen.
Q: What is the use case of the native token goMNT, is it purely for governance and assistance in bridging the other coins or does it have its own other use within the ecosystem?
A. It will be used to stake and form an insurance contract on the underlying stored assets. More than likely this staking will be LP tokens with goMNT as a part of the pool. Which will long term with our vision to move the custodian component to be completely trustless. But also to be provided as rewards for those participating in using the bridge but also putting the assets to work. We are collaborating with several projects to combine powers and offer joint rewards programs to really supercharge DeFi on Algorand.
Q: Some of the major problems or limitations of the space are
1) scalability.
2) liquidity and fragmentation.
3) shared ownership and impersonation amongst others.
How does Algomint plan to solve these limitations and problems???
A. As much as I would like Alogmint to take responsibility for solving some of these issues. In reality it is Algorand technology that is solving the issues we are simply allowing other assets to utilise Algorand technology. The one that requires a little more in depth discussion though, is number 3) For starters it would be good to get a better understanding of what you mean by shared ownership. But in terms of impersonation all the Algomint assets will receive the blue tick from Algorand which does help a lot in terms of knowing you are dealing with a legitimate asset. On the other side is counterparty impersonation, this is a little more complex but there is some work being done that could be an interesting solution for this so maybe stay tuned for some announcements in the coming months.
Q: Is private sale still available?
A. No but we are planning to have a public sale in Q3/Q4 2021, likely via auction and ideally it will be native hosted on Algorand.
2. Custodian:
Q: I’d like a full write-up on the custody mechanism for the held, bridging asset. Ie: btc being held and released as goBTC
A. The initial version is simple but effective and much the same as products like Wrapped BTC. The future version is a lot more complex and we envision it being almost like a safety deposit box facility — where the guard ‘us’ and the asset owner ‘you’ have two pieces that unlock a frozen / docked asset. Something I was chatting to the team from Ledgermatic about recently who are an amazing team doing some pretty cool stuff with institutional walled garden style DEX on their own private Algorand chain.
Q: Can you tell us something about the custodians e.g. their names and other clients they have? Can you also tell us something about the security auditor? And how far along are you in the audit? Which wallets are supported at the beginning e.g. MyAlgoWallet and/or AlgoSigner?
A. The custodian initially will be Copper.co who are one of the key custodians Algorand themselves are working with. Which is why we chose them. Though longer term we see this as not being the only custodian. Audit wise we are using Sigma Prime, one of the best. With clients like Synthetic, Chainlink and the Ethereum Foundation. The audit officially starts next month. Wallet wise, we won’t have a wallet connected for V1 as it isn’t a necessity in this case. But it will be something we are working on for the future version of the platform as we transition to the more trustless version.
3. Future Plans
Q: What is the plan for token distribution? Will it be launched on a launchpad like a lot of the other startups recently or will algomint use a different method, if so what?
A. The plan is to use Anthill, Algorands very own Launchpad coming to market this year. Which I am really excited about. We will likely run the sale as a Dutch auction and the founder Chris has some great ideas around tokenomics and how the product will function.
Q: Will AlgoMint primarily be a cross-chain bridge? There’s also an ASA minter as part of it, correct? Any other future plans for AlgoMint or will those plans be better utilized in another developing dApp?
A. Initially it will be a cross chain bridge, the ASA minter is a necessity to issue the corresponding assets onto Algorand. After launching the initial bridging one of the additional features we will be offering is baskets that will in turn allow swaps. For example, goUSD that can be minted by bringing a range of different USD which will also mean you rather than wrapping you could swap inside the pool. For example swap USDC to BUSD at a 1:1 rate across different blockchains with a small fee. Very useful and what we see playing a large role in the future capabilities.
Q: Will Algomint be bridging multiple blockchains in future? What’s the plan like?
A. Correct, at the moment we will initially bridge in BTC and ETH. But we will also be bridging out and what is best described as across. We are looking at several cross chain connections including Solana, Near, Polkadot and Ethereum. What this would mean if you could move from Algorand wrapped Bitcoin to Solana wrapped Bitcoin in a simple fast movement.
Q:Will there be goERC-20 tokens in the future?
Say a developer dApp starts as an ERC-20 but wants to switch later to Algorand, would AlgoMint make that bridge?
A. Most definitely, the aim is to have the ability to bridge in and out of a range of blockchains. So it would go both ways, projects on Ethereum gaining access to Algorand and vice versa.
Q: How intuitive would that process be?
Does the software make it easy and intuitive to use or would developers need to key in a new bridge for a token or coin each time?
A. At that stage it is the Algomint team that would need to implement. So it wouldn’t be any token. Though the possibilities are very broad.
It also has a lot to do with the token type, the ability for it to be held in custody and any additional token features that need to be accounted for.
For example there are some ERC-20’s that have a chip away fee mechanism. So over time the amount of organic underlying token would be reducing which wouldn’t then work in a standard bridging scenario.
Some of the new innovations coming for interoperability will open up a lot more options in terms of what we can technically do in the years to come.
Q: Do you think the ERC-20 bridges will be the next thing after the goBTC, goETH? Or more of the other chains like goAXA, goADA, etc?
Possible to make bridges for NFTs?
A. After goETH and goBTC we will likely see goUSD and goGOLD plus we are working with several parties such as liquidity providers and DEXes that want to see certain assets bridged to be utilised in Algorand. In reality we will focus where we believe we can deliver the most value.
On the NFT front Originals Only will be looking at multi-chain issuance including potentially bridging.
Though it does present a different set of issues as the data attached and any tied capabilities of the tokens needs to be accounted for, such as royalties.
Q: I know AlgoMint will be live soon. Are any other Algorand projects live or close to being live? Any dates or timeframes?
A. Other project wise, Yieldly is live which is exciting.
Anthill, an Algorand native launchpad will be launching this year.
There are also 4 DEXes out this year, generally over the next 2–4 months.
Otherverse and OriginalsOnly on the NFT front should be out early next year.
Folks Finance a lending platform will be live this year as well.
There is also a list of others we are working with but probably a little early to reveal a great deal, the teams are keen to focus on building at the moment and keep out of the spotlight.
In short, there is plenty coming!
Q: How will Algomint and Algorand improve to take on the crypto native community?
A. There is definitely a lot of work to be done in the Algo ecosystem still.
We really need a combo of Dexs, launch pads and bridges to bring a foundation to the ecosystem that truly allows growth.
Thankfully all three will go live in the coming months. There are extra things needed from there to replicate what makes Ethereum (or other EVM’s) so attractive in terms of core apps but most of these gaps are now being filled.
We are here because we believe in the incredible team behind Algorand and the technology they have developed, and with a lot of the barriers to the ecosystem growth coming down, we will see a lot of new projects come to market.
Algorand has a long term view, with a focus on institutions and the 60 trillion dollar financial markets. There have been some additional barriers to entry for building on Algorand, but for those who value the huge future Algorand has, these barriers are more like mini speed bumps. While EVM based builds have been the immediate long hanging fruit, in reality getting into one of the best blockchain technologies early is where I will choose to be everytime.
Peers
Q: I know AlgoMint will be live soon. Are any other Algorand projects live or close to being live? Any dates or timeframes?
A. Other project wise, Yieldly is live which is exciting.
Anthill, an Algorand native launchpad will be launching this year.
There are also 4 DEXes out this year, generally over the next 2–4 months.
Otherverse and OriginalsOnly on the NFT front should be out early next year.
Folks Finance, a lending platform, will be live this year as well.
There is also a list of others we are working with but probably a little early to reveal a great deal, the teams are keen to focus on building at the moment and keep out of the spotlight.
In short, there is plenty coming!
Q: How will Algomint work with existing and upcoming dapps in the Algorand ecosystem? Any plans for collaborations?
A. Key collaborations will be around creating rewards to bring liquidity and volume to different projects. This is a key part of building out DeFi on Algorand and we aren’t just trying to build partnerships between us and other projects we are really working on building out a DeFi community amongst the builders. Collaborating to bring the strongest co-ordinated DeFi ecosystem we can.
Q: Understanding that the founders come from an already successful business inside the gold market with Meld, Is Algomint going to be linked to Meld in any way apart from being able to draw on business experience and how will that function with Algomint if so?
A. Most definitely, Meld will utilise the Algomint Gold, Silver and Platinum baskets to bridge out into other ecosystems. It will also allow for some really interesting Yield opportunities. For example you could take 100 Meld Gold — which are being renamed to GOLD$ at the moment. Wrap 50 of them into goGOLD the Algomint basket and put them in a GOLD$ / goGOLD liquidity pool and earn yield on your gold.
Meld gold is also partnered with a large number of bullion retailers, with Meld positioning them to be the local independent bank branches of the digital ecosystem. As we see the Algorand ecosystem grow, those ‘branches’ will open a lot of people up to using Algorand. Especially with yield opportunities in assets the broader community tends to be more comfortable with.
Q: Does AlgoMint have any direct competition?
Any other projects doing something similar?
How does AlgoMint stand out from the crowd ?
A. There are a couple of fully defi bridges working on launching into Algorand.
There are quite a lot of differences long term; those differences become more significant and numerous as we build out the additional features.
The initial differences are:
1. Algorand Native
2. Two way multi chain
3. Backed by Algorand Inc and the Foundation
4. Compliant which means institutions, funds etc can use the bridge
5. Native token that allows participation and reward programs
6. Basket assets that allow swapping and a lot of additional capability.
I am quite big on the hybrid idea. Finding a good balance between the two worlds. We are working on moving Algomint to be more and more trustless while not alienating any particular parties (such as institutions).
About Algomint
Algomint empowers the next generation of DeFi by bridging popular assets like BTC, ETH, USD to Algorand, a FutureFi blockchain protocol with high speed and low cost. Algomint is built by Meld Gold founders, Michael Cotton and AJ Milne, who aspire to create a decentralised future of financial inclusion and freedom.
Algomint is supported by reputable investors, including Borderless Capital, YBB Foundation, GSR, LD Capital, Valhalla Capital, NGC Ventures, ellipti, Cluster VC, bitfwd, Meld Ventures, Kosmos Ventures, 8186 Capital, and strategic partners including Algorand, Algorand Foundation, and Copper.
🌍 Website: Algomint.io
