15 Nov AMA Transcript w Megalodon
Recap for those who missed the AMA!
A short preamble before we begin. Four main points, we will first talk about adding defenses, next will be on compensations discussion, the third point will be on our ambitions and future plans to hit 1 billion TVL (core topic) and the fourth topic will be on the Atlantis protocol and how it can benefit the AutoShark ecosystem.
Most recent changes were made to boost defenses and new hires on security. So what has changed? All kinds of DeFi projects depend on audits to review our code as an extra pair of eyes to make sure no logic errors or loopholes in the code which may be exploited by bad actors. We work very closely with WatchPug and Certik as our partners. However, audits are not a panacea to exploits. If things remain constant and variables kept the same then we should expect no exploits but that is really not the case for DeFi.
We have been working on a lot of new developments, including fresh blood to help us further reinforce further. We cannot rely purely on on-chain defenses. So now we are trying to achieve a multi-layered defense. Our second layer of defense is a “what if? situation”, as some variables out of our control seek to exploit, and Centralized-Decentralized Defense or (CeDeFi Defense). Centralized works by bots continuously scanning our system for high risk activities and can initiate a lock-out on jaws withdrawals. The attacker will lose the ability to withdraw JAWS and dump it on the open market for several minutes.
We are working to bring in new blood in the security scene, we have four new developers in areas of cybersecurity.
Will these developments be secured?
Our layers of defense are non-conventional and off-chain. The attacker cannot see the info on the blockchain. We will have a soft lock in place when there are anomalies detected. We are also cognizant of the pros and cons of our approach and will have tweaks in place to ensure that attacks are diff to carry out.
Usually, an attacker will fork the mainnet using what exists on-chain to test his attacks. Our off-chain layer cannot be forked in this sense and helps bolster our defenses.
How secure are these products/upgrades?
Non-conventional defenses are good and attackers can’t see them (like a black box). When the JAWS withdrawal is soft-locked, giving us time to check. We are aware that this is the last line of defense, and the first line of defense, the secure code should be a given.
Is it possible that a rogue developer to edit a code to facilitate an attack?
If the other 4 new developers turn on the project, the security of the code prevents known attacks, and time is wasted looking for loopholes, the second line of defense is also there.
So how will the locked up (emergency) jaws be unlocked? What if there wasn’t an attack, someone just bought a fuckload? What makes sure that the attacker just doesn’t unload his Jaws after the lock has been opened?
We have a piece of code that can trigger a global lock, and merely buying a lot will not trigger it. If the alarm is triggered and found to be a false alarm, then the lock is rescinded and life goes on. We can also blacklist a wallet to further limit access.
Security on ATLAS as are minted like jaws?
The Atlas Protocol will vest rewards over five days, so any exploit will be delayed a full five days and allow time to rectify the situation.
How do we tackle huge whale wallets like Alameda coming in to farm n dump.
We believe in the flow of commerce and this is what decentralized finance is, and whale wallets are not limited in traversing our ecosystem. We will continue to build and offer more features to give more reasons to HODL the token.
How does our project’s defense match to something like PCS, that has never been hacked?
PCS has had a piece of code that has been around for a long while, the uniswap code. It’s the same thing and that piece of code has been battle-tested by numerous forked projects. We have continually upgraded our defense
Let’s say someone manage to mint X millions of jaws or fins, will the security system instantly lock up the swap ?
We can’t lock swaps but we can lock withdrawals on the dividends pool and this is easier than locking the swap
And what will happen to thoses jaws / fins minted ? Will they be extracted and sent to a burn wallet?
Possibly, but we would also ask you guys for your opinion, and we acknowledge this will most likely end up burnt.
If someone would like to withdraw a large amount of tokens. Do you require the seller for a KYC? For security purposes.
We will not do any form of KYC as this is DeFi.
Any news on marketing budget or plans?
We have continued to push for reliable avenues of marketing
Was Atlas always planned to launch at this time or the last exploit expedited your plans?
The exploit slowed down our plans, we were working on a lot of exciting products. We have to pause a bit to take care of our platform and compensate our investors, and how to bring the project back on track. We worked harder to deliver the Atlas Protocol.
Wasn’t Pancakeswap never hacked?
Not true, pcs was hacked before based on legacy code.
After the compensation period and the price of fins is still not equivalent to the loss made by the flash loan. Do we still expect additional compensation? or will you stick with the current 20% compensation given?
It is a bit too early to say for now. You are receiving fins and the value of fins will appreciate over time. We hope to scale the value of our tokens over time.
Are we going to burn more jaws because of flash loan?
We have done burns recently to reduce the total supply of Jaws through the burning vaults. We have increased the Apr of the Jaws vaults to increase the value of Jaws. Doing a burn of Jaws will not help the system as it is a short-lived event and does not incentivize liquidity into this token.
Reserves of ATLAS consist of AS’ own native tokens like FINS and JAWS. If there is a substantial downturn in price, contributing to a downward spiral, how can $10 backing avoid such a scenario?
We are fully backed to $10. And you don’t need to be fully backed to push the price up. Doesn’t take a lot. The protocol actually seeks to hold FINS and JAWS for more capital appreciation (and reduce selling pressure) because these native tokens are the least priority to be sold to provide backing. We will be primarily using stables to do that. Add to this the bullishness of the protocol locking in circulating supplies of FINS and JAWS.
One Important Thing is if we all want to get ATLAS, we shouldn’t be selling FINS and JAWS.
What is the difference between doing a bond and doing a launchpad with fins-bnb?
Mega: If you don’t like your JAWS and FINS, you can buy bonds with them (ex JAWS discounted from 14 to 4 cents), and the discount means you are earning 10 cents more. If you bonded 5000 JAWS at 10 cents each, and you’re earning $500 profit for $5000 worth of JAWS and makes your ROI 3500% over 5 days. So you surrender your tokens and you get to keep ATLAS at a higher value.
You have only mentioned support to the fins and jaws tokens, is there any support planned for Squid and future launchpad tokens via Atlantis?
Currently, we are focusing on large cap tokens like bnb and busd to be bonded, in addition to our native token Fins and Jaws.
Mega, please talk about how Atlas will benefit OG tokens, JAWS, FINS, a little In depth review of how this will be wrapped up. And If you have any vision, on how this will bring more value to these. Currently It sounds like the upside Is only concentrated on the Atlas token, and not much about the JAWS, FINS
We hit 0.25 billion in TVL and we are aiming to hit 1 billion in tvl. We have two main resources today Jaws as our YO and fins as the AMM Token. Jaws encourage the holding of fins and can leech off fins. However, this does not shield us from an exploit and during a bear market when ppl withdraw and bring liquidity elsewhere. We aim to future-proof our protocol by heading towards stability by introducing the Atlantis protocol.
OlympusDAO has 3 billion in TVL and currently is one of the most hyped projects.
The protocol locks in liquidity and sells you bonds worth more than what you provided. We tweaked the core concepts of Olympus to suit our ecosystem. So we are creating $ATLAS, a digital reserve currency that is backed by liquidity and the second value by a basket of tokens (BUSD, BNB, etc). If ATLAS falls below a threshold, the protocol’s treasury rebalances the price by selling the backed liquidity. There are many projects that fork the OlympusDAO code whose tokens appreciate in value beyond the initial start price.
Atlantis has value backed by liquidity and it’s going to be backed by reserve assets in the treasury. Realistically, the atlas will not go below the reserve floor price unless there is strong sell pressure.
The entire system was designed to synergistically interact with our ecosystem. The protocol is very strong, and if launched at $10, it is backed 100%. Most others are only 30% backed from launch. This full backing speaks of the great upside for $ATLAS. Along the way, this protocol will seek to add more assets and to be a true reserve currency and used as such. In the future, we want to ensure ATLAS becomes a reliable store of value. and all the trading fees go back to ATLAS holders, and this protocol will continue to be profitable and sustainable. The biggest difference here is that our protocol is combined with a YO and an AMM/DEX with complete control of trading fees that can only help raise the token floor price. Our Yield optimizer token further incentivizes further holding of ATLAS.
(3,3) Game theory refers to the most ideal scenario when everyone BUYS and STAKES ATLAS and we want to incentivize this further. This is done with high single-stake APY (On launch, around 2–3% daily). Rebasing mints more tokens and leads to a hyper-inflationary supply and won’t be sustainable. So we aren’t doing this.
Mints more tokens to buy and stake, rebasing, and this has had mixed results, and people are not doing what the protocol was incentivized to? We give you BUSD dividends from staking ATLAS and this comes from protocol profits (staking and trading fees). The second thing is you can stake ATLAS for more ATLAS which uses the BUSD to buy more ATLAS and also organically raise its floor price through buyback. sATLAS (when you stake) and you can use this token to earn even more rewards. We won’t be able to do 200,000%, but capital appreciation by staking, and grows in value while you earn more with the staked version possibly in the future.
For a one year time frame, which is potentially more profitable? 1. buying more FINS / JAWS now and bond as ATLAS on 21st Nov or 2. use BUSD to buy ATLAS on 21st?
If you ask me, ATLAS is like an exchange-traded fund (ETF), and will have less volatility in the future while FINS and JAWS will have more upside in that they are small caps for now.
Is the discount different per coin? Depending on supply?
Yes, the discount is different per coin and is dependent on many variables like the debt ratio. If more people bond, protocol has higher debt and lesser ATLAS tokens to give out. Debt decays over time, like 5 days, and it frees up more resources to start issuing more ATLAS again.
What is the discount going to be? Is it better to sell now and wait?
I can’t promise you how much the discount will be, but they will be steep, looking at a few percent earned per day, minimally 1% daily. Whoever bonds first will get the best prices and discounts.
Will SQUID token be part of Atlas?
We can discuss this eventually but we are now more focused on JAWS and FINS as well as other large-cap tokens.
So you’re incentivizing us to sell our FINS/JAWS to get atlas and stake ATLAS? wouldn’t that crash the price of FINS/JAWS ?
No that’s not the case. The most important thing is you are SURRENDERING your FINS and JAWS to the protocol. We are not selling on the open market and will not affect prices at all.
Bonding as in creating LP right?
We want more AtLAS-BUSD LP tokens as the #1 asset the protocol wants to hold. Then we have reserve assets like CAKE, BNB, JAWS, FINS.
Also in regards to sATLAS pools, you mentioned upcoming “possible” partnerships, does that mean there won’t be any sATLAS pool available at launch yet?
Our team has something planned and it also depends if we can get the feature up in time. We definitely want to launch sATLAS pools day1 or day2 and we will give a better schedule closer to the launch date. With regards to giving people more incentive to bond instead of buying-and-staking to avoid price collapse, we will be implementing an option to auto stake the ATLAS. Also depends on the audits completed for these set of contracts and codes.
The bonded price is based on market price not the launch price right?
There are multiple variables at play if you want to bond jaws and discount from 14 to 10 cents. you can now bond it at that price. The second variable is that the price of ATLAS shoots up from 10 to 50 and your ROI increases x5 as well.
What is going to happen to FINS/JAWS in the protocol then?
We will stick it in the buyback vaults and it will push up the prices of the tokens.
Burn/give back to holders?
The vaults do burn them and we can burn more further. We can burn our native tokens as we have locked their liquidity and control that part of the supply.
Could you pls explain (3,3) and why it makes sense to bond FINS / JAWS instead of selling? WIth an example?
(3,3) means the most desirable scenario wherein everyone acts in the best interest of the protocol and happens when people buy and stake ATLAS. When you talk about FINS and JAWS, it’s not part of the quadrant. (1,3) which is bonding and stacking are also desirable. In the context of FINS and JAWS, as long as you bond them and stake the ATLAS you get, we can still end up in a 3,3 or 1,3 scenario.
In what timeframe do we get the atlas coins? Instantly or over several days?
The tokens will be provided and vested over five days,
How long do I have to bond before I can un-bond? After vesting, do I get my JAWS/FINS/BUSD/CAKE back?
You are surrendering your token in exchange for Atlas and thus cannot un-bond. Hence the process of shifting tokens to protocol owned is a one-way process and you will not be able to get your bonded tokens back.
Any thoughts of using a different ticker to $ATLAS ? Seems like people could get confused given there is already a $ATLAS?
The team will talk about it, but I don’t think we will be changing it, as the namesake token is on another chain.
So if your strategy pans out as you have mentioned then do we need to list on any Exchange? What benefit will that bring? Wouldn’t we be our own system not dependent on any exchange?
We are the largest protocol in terms of ecosystem and we should be largely independent. But when the time comes that a large and reputable CEX asks to list us, we won’t refuse.
Initial list of tokens and/or LPs for bonding right after launch (1–2hrs after)?
What you see on the screen is what will be implemented. (BNB, BUSD, CAKE, FINS, JAWS)
UI issues, seemingly counter-intuitive? Could you touch on why it has to be displayed that way?
UI display similarly to what other protocols are doing, counter-intuitiveness may be due to not being used to the system. The UI is intended to be as transparent with your investments as possible. Give us some time to do more justice to the UI and hang in there.
What are the weak points of the POL in your opinion?
There is no real downside to POL as the protocol is programmed to seek higher and better value for itself, and by extension, its investors. Issues with the bonding system may be limited dynamism.
It’s too good to be true if everyone just “Bonding” making 1,1 and then “Staking” to making 3,3 situation and everyone’s happy together we seem always in zero sum game for long time before DeFI 2.0
If everyone bonds and stakes together and you see the value of your investments increasing over time, and there needs to be sufficient liquidity to facilitate profit-taking. The market will eventually regulate itself and through time even those who bought at the top can earn it back.
What prevents whales to buy FINS/JAWS and sell them for ATLAS and get 5% (or idk how much more we/they will get). And rinse and repeat?
Mega: The mechanism is the binding effect, when more and more people bond FINS and JAWS, it will reach a situation of too much debt and as a result, the bond discount becomes negative instead. It becomes no longer profitable to rinse and repeat.
How soon after the launchpad is done will trading of Atlas start?
It will be almost immediate as we set up liquidity for trading and releasing ATLAS tokens together.
When will bonding start?
Within a couple of hours (so after the above events)
We can bond any amount or are there fixed bond prices or amounts?
There will be a max amount of bonds you can buy. The contract will regulate this and the UI should reflect this.
When bonding any token there is always a 5 day vesting period with auto stacking?
That is correct.
Once Atlas will be released, what would be the point to buy FINS/JAWS?
There are still many reasons to buy fins and jaws. #1 being both these tokens still generate BNB dividends for you. #2 is, the Protocol will show higher and higher discounts for both if no one has an interest in either anymore and the debt ratio increases and there is higher ROI for you to buy both due to discounts and bond to ATLAS. And both in and of themselves both FINS and JAWS have the potential to be used in our Launchpads and these add up over time.
Will there be ATLAS-XXX LP vault or all atlas pairs will be POL?
In the future, most of the pairs will be POL (purely).
I think most people’s concerns would be: the initial discount rate would not be able to outweigh the missed opportunity cost from buying directly and staking over bonding and waiting for the vesting period.
The “auto stake” feature answers this. The moment you bind it is automatically staked on your behalf and you’re still earning. It will take time to fully roll this out but it will be done.
Do you have any genuine idea to drive the price up?
Mega: All initiatives and products are designed and delivered to drive the price up for our native tokens.
Are there any innovative ideas in the pipeline that have never been done before, instead of improving other’s ideas?
Honestly speaking, there is more upside in working with code that has been already tested and we expand on such ideas. We build it better and more purposefully. We need to be purposeful in building for our project and enriching the existing ecosystem. And we enhance what already works for our own ecosystem. Innovation will come later on after ATLAS has been launched.
Price appreciation and token scarcity of Atlas or FINS/JAWS?
If more and more users bond FINS and JAWS to the ATLAS protocol, what happens is there will be scarcity in the market because let’s say bonded FINS and JAWS are 70% of total supply and locked into the protocol, so only 30% can sell. In such a situation, there is a lack of sellers and won’t really move the price as much. The likelihood of someone selling is low because everyone can see transparently how much JAWS and FINS are locked. And seeing the majority of these locked up is a bullish indicator.
Will the bond discount for Atlas-Jaws be higher than others, since one of the reasons why you guys are doing this is to compensate for the value lost earlier? Also Jaws holders can’t buy from Launchpad.
Whether there will be a higher discount will depend on the bonding policy we set up. But that being said, they will enjoy a slight one. Simply because those are our native tokens.
Regarding the DEX, the initial idea of working on the average price of tokens pulled from other dexs/cexes will come through?
You are asking whether we have pledged to continue working on trade aggregation, which means we help to route trades across multiple liquidities. I think with our current DEX, we aren’t as inclined to spread out liquidity for trades and we want more users to trade with us. Usually when someone who lists and launches with us.
Will the whole UI change, would there be another Atlantis site?
Mega: Yes, it will be hosted on a different page.