Behodler x Blockchain Infinity AMA recap.
On the 23rd of July 2021, Blockchain Infinity’s Zanity hosted an AMA with our very own Justin Goro, lead developer and founder of Behodler. Below is a transcript of the AMA for your reading pleasure!
Segment 1: Introduction
Zanity: Hello Justin Goro welcome to our community. Before we go to the first segment, please introduce yourself first.
Justin Goro: Hi everyone, thank you for having me! My name is Justin Goro and I’m the founder of/and lead dev at Behodler.
Zanity: Thank you for your introduction. Let’s proceed to the first segment. Are you ready?
Justin Goro: Sure, fire away.
Zanity: Great here’s the first question.
Question #1
Can you give us an introduction to Behodler?
Justin Goro: Behodler is an AMM optimized for significantly lower gas consumption than traditional AMMs. Unlike token pairs AMMs, Behodler has a single liquidity token (called Scarcity) issued through token bonding curves by every token traded. The relative price of the tokens in terms of Scarcity implies their swap price. For instance, if 1 ETH mints 10 Scarcity and 100 DAI can mint 1 Scarcity, then we know we can directly swap 1 ETH for 1000 DAI.
Liquidity provision isn’t correctly priced in DeFi currently. What this means is that while LP tokens offer a share of revenue, their actual price does not represent the value they’re offering the ecosystem in the form of liquidity. The price of an LP token is just the underlying value of the tokens but it should be higher, usually much higher to correctly reward suppliers of liquidity.
Behodler’s liquidity token, Scarcity (SCX), prices liquidity correctly and as such offers liquidity providers better incentives to supply liquidity over traditional LP tokens.
The effect of Behodler will be to see a correction in the provision of liquidity in DeFi away from chasing low impermanent loss in stablecoin pools towards productive projects with sound fundamentals. DeFi as a whole will experience improved growth prospects.
Zanity: Thanks for explaining Behodler to us. Here is the second question.
Question #2
What are the use cases of the EYE and SCX tokens?
Justin Goro: As mentioned, Scarcity(SCX) is the liquidity token of the AMM. Aside from the pricing dynamics, scarcity burns on transfer.
Since it’s the liquidity token, burning implies a growth in liquidity that can never be claimed so that over time, Behodler will become more and more liquid and as a by-product, the price of SCX will rise since it’s priced algorithmically.
EYE is the governance token of Behodler with a capped supply of 10 million. When EYE is traded on Behodler, a fee is levied which is burnt. Since its launch, 1% of EYE supply has been burnt.
At the heart of Behodler are deflationary burn and hodl incentives and this applies to our governance as well. For instance, in an upcoming farming dapp, Limbo, EYE holders will have the power to calibrate parameters like APY through the DAO. To participate, you can either stake EYE to earn voting power over time or you can burn EYE for instant high levels of voting power.
We’re also introducing a type of governance called Flash Governance where you can stake a large quantity of EYE and immediately execute a governance decision without requiring a vote. However, if the community dislikes your decision, they can vote to have your EYE deposit burnt.
Zanity: Such broad use cases thank you, here is the last question for the first segment.
Question #3
What are the features of your DEX platform?
Justin Goro: At the core of Behodler is an AMM with single-sided liquidity addition, optimized for low gas consumption. Behodler burns as a service. For tokens that are burnable like Maker (MKR), a small fee is burnt on every trade. For non-burnable tokens, we’ve introduced wrapper tokens called Pyrotokens that give “burnability” to the underlying token.
For every non-burnable token traded on Behodler, there’s a Pyrotoken equivalent. For instance, OXT has PyroOXT.
A pyrotoken is similar to a reflect token except that it wraps a base token. Whenever a pyrotoken burns its redeem rate goes up. For instance, let’s say the redeem rate of PyroPNK is 1:1 and I wrap 100 PNK to create 100 PyroPNK. Suppose some PyroPNK burns and the redeem rate goes up to 1.2:1. I then redeem my 100 PyroPNK and get 120 PNK.
Both PyroTokens and Scarcity are going to be used to power the rewards behind an upcoming liquidity farming dapp, Limbo.
Zanity: Awesome, thank you for giving such great answers to my introductory questions. Let’s go to 2nd segment which is the Twitter Questions!
Are you ready?
Justin Goro: Sure thing, ready to go.
Zanity: Splendid here’s the first Twitter question.
Segment 2: Questions from the Twitter
Question #1: @truongtran0305
What is the next big step for your project?
Justin Goro: We’re busy building out a fresh new UI. Here’s a sneak peek of the landing page (this is just a demo and subject to revision): https://preview-behodler-io.netlify.app/
At a similar time to the new UI launch, we’ll be rolling out the first of the ecosystem dapps, Limbo along with its microDAO.
Once Limbo is humming along nicely, we’ll be in a perfect position to expand to all the layer 2 options, probably focusing on the true L2s first (Arbitrum and Optimism).
We have a plan to link the liquidity pools across all the layers but more on that in the future.
Zanity: Thanks for the answer, I’ll send the second Twitter question.
Question #2: @petitepepuke69
Could you please tell me more about Morgoth DAO? How does Morgoth DAO differ from other DAO solutions on the market, and how will it work?
Justin Goro: In most dapps, there tends to be a monolithic DAO that controls all governance action and it has one form of consensus for the whole DAO, usually voting. The problem with this approach is that each part of an application has different needs regarding security and the speed with which decisions should be made.
In Behodler, the decision to list a new token is a very important security decision that needs time to be deliberated on. However, if we change the APY on a pool in Limbo by 1%, that shouldn’t require long deliberation and entire community involvement.
Recognizing this, our approach to governance is to let each sub-set of the ecosystem get its own microDAO and then web those all together in a DAO of DAOs. MorgothDAO is the DAO that holds all the contracts and controls the assigning of rights to microDAOs.
The first MicroDAO we’ll be testing in the wild is LimboDAO, the DAO that will govern the running of Limbo and it’s designed specifically with the needs of a farming dapp in mind. There's a voting system for very important decisions, but because we don’t want whales dominating, we use quadratic voting.
Then for small decisions of low impact like changing the APY of a pool by a few percentage points, we have a system of flash governance as mentioned above which relies on skin-in-the-game incentives.
The benefit to the DAO of DAO approach is that on the one hand, we don’t have to think of everything upfront.
Governance is very complex and it’s important to recognize this. However, by deferring complex governance to a future microDAO while leaving the contracts in the hands of Morgoth, we gain the benefits of oversight and decentralization.
Zanity: Great answer let’s now proceed to the third Twitter question.
Question #3: @CosmoCo1485
You applied for the Gitcoin grant fund, but did you sell any private sales or public sales to do so? Please tell me about the process of selling these, and how we can help in funding this creative idea.
Justin Goro: We initially had an airdrop of EYE tokens and two subsequent liquidity staking events so funding has been organic until now with no private sales.
Thank you for wanting to support us! Here are some of the best ways:
Gitcoin grant:
https://gitcoin.co/grants/3125/behodler-liquidity-protocol
We have a Pooltogether community pool: https://community.pooltogether.com/pools/mainnet/0xb7cc5180329a933f1fabd7a06cdb8e98c5ba0b98 where you can enter ETH/EYE Uniswap V2 LP tokens into a weekly lossless lottery to win EYE.
A direct way to support the project is to buy EYE or SCX on either Uniswap or Behodler.io.
Finally, join our Telegram or Discord chat (links on behodler.io or this AMA poster). We have a really great community and would love to have you involved.
Zanity: Thank you for that answer, let’s go on to the last Twitter question.
Question #4 from @Bitchxoin:
Could you please clarify how locking LP works? “After that, the SCX and flan are wrapped as LP tokens and sealed away indefinitely.” I’m not sure what this is supposed to do.
Justin Goro: Sure this is a fairly deep technical question about the upcoming dapp Limbo so I’ll try to keep it as high level as I can. To zoom out a bit, when a new token is listed for trading on Behodler, because there is 1 universal pool of liquidity, the new token has to arrive with as much liquidity as all the other tokens to be priced correctly.
The purpose of Limbo is to offer a liquidity mining solution for tokens waiting to list on Behodler. (Hence the name. Limbo as in place of waiting, rather than game with ever lowered pole).
Once a token raises enough liquidity it is migrated to Behodler.
Staking on Limbo is rewarded with a token called Flan. Flan will be paired with SCX on an external AMM such as Sushi or Uniswap.
When a token is migrated to Behodler, it generates a large portion of SCX, the liquidity token.
Half of the SCX generated from this event is used to buy Flan from the external AMM.
The other half is pooled with the Flan we just bought to create an LP token.
This means that every time there’s a migration, the liquidity pool for Flan/SCX deepens which means less slippage for trades.
The reason we lock the LP away indefinitely is to make sure that the liquidity increase is permanent and no one on the team or otherwise can unpool that liquidity.
Segment 3: Live Telegram Quiz
Zanity: Okay, let’s move to our Live Telegram Quiz. Make sure that you have done your research about Behodler.
Chat, please pay attention! I’m going to open up the community in 10 seconds after the first question was asked.
Please ask our first quiz question.
Justin Goro: Sure, the first question.
Question #1: How do you add liquidity to Behodler?
Correct answer from @SmAG_23:
“To provide liquidity on Behodler, one simply swaps the desired token to SCX.”
Justin Goro: Quick on the draw. You’re 100% correct.
Zanity: Great! Please ask the second question.
Justin Goro: The second one is a bit more subtle and technical and there is more than one way to answer. I’ll accept straightforward or philosophical answers.
Question #2: How does Scarcity differ from a traditional LP token?
Correct answer from @YamiShin_22:
“Behodler’s liquidity token, Scarcity (SCX), prices liquidity correctly and as such offers liquidity providers better incentives to supply liquidity over traditional LP tokens.”
Justin Goro: A lot of good answers but I can only choose one. This covers the most bases in the fewest words.
Zanity: Let’s move on to the last quiz question.
Justin Goro: Behodler was designed on principles that predate Uniswap and as such is not an imitation AMM. This has led to outcomes that distinguish it in some interesting ways. My question is:
Question #3: Why does Behodler not need a swap router like most other AMMs?
Zanity: Who’s our last winner?
Correct answer from @aceem_X:
“By tying all liquidity into one contract, Behodler offers new projects the prospect of an initial token offering service that guarantees instant, high liquidity.”
Justin Goro: Okay this is the closest one because it mentioned the key point: One contract stores all liquidity, unlike other AMMs that operate as pairs or limited pools.
Zanity: Great! Congratulations to all winners for this segment.
Segment 4: Live Telegram Questions
Zanity: Okay let’s now proceed to the exciting part of the AMA session, community questions! So Justin, are you ready with our last segment?
Justin Goro: Ready when you are, Zanity.
Zanity: Chat closed! Thank you for your plenty of questions chat, let’s give our guest some time to answer good questions.
Q1 From @Ashia_24:
How important are “PYROTOKENS” to your platform?
Justin Goro: First question: It’s actually quite central to the future. Pyrotokens will enable a feature called yield stacking which is fairly complex and deserves its own paper (and maybe AMA). But Pyrotokens will be a very important part of the incentive feedback loop in the future. For now though, even on their own, they’re very close to my heart because I like anything that gives holders a way of gaining value without having to be masters of finance.
Q2 From @Antoni_azx:
Regarding your dApp Limbo, can you tell us what will be the characteristics of the staking module that will be integrated into the platform? What tokens can be staked and will it be a minimal investment amount?
Justin Goro: Firstly, Limbo will be the first community governed and calibrated farm. EYE (and EYE LP) holders will be able to fine-tune the pools in a way that best serves the ecosystem.
They’ll have several options on hand. There are two main types of pools: migration and perpetual. Migration pools are purely for listing new tokens and they set a threshold of staked value. When that threshold is reached, the migration process kicks off and all staked tokens are migrated to Behodler. The stakers are compensated in flan for the migration.
Perpetual pools are similar to existing farms and are simply to encourage lockup. For instance, we’ll have perpetual pools for SCX and EYE so that holders of both can earn protocol-induced revenue.
There will be several other incentives that the community can toggle and all of this will be accompanied by much data gathering so that we can engineer the best farming experience in real-time.
Q3 From @Abdullarh11:
I read that behodler would house all of the liquidity in one contract. Don’t you think this is too risky?
Justin Goro: This of course does provide an attack vector. In this initial phase, Behodler will only list known tokens of high quality such as Aave, Sushi, and LP tokens like WBTC/ETH. In the future, we’ll be introducing a special guard rails contract for untested tokens that protects the AMM from rugpulls by forcing the creator of said tokens to stake skin in the game greater than the risk they’re imposing on Behodler.
It’s worth bearing in mind that storing reserves in one contract isn’t unchartered water. Aave and Bento box are good examples.
Q4 From @JennaTovar:
NFT is getting more popular nowadays. It looks NFT has a bright future. So do you guys have any plan to include NFTs in your project?
Justin Goro: Absolutely! In more ways than one, actually. Our flashloan module (still under review) is different from other flash loan services. Instead of charging a fee, we’ll simply check the borrower’s wallet for a special flash loan NFT. We’ll then distribute the NFTs either through auction, airdrops, or some other better method TBD. The reason for requiring an NFT is that if you hold a flash loan NFT and spot a good trade, a miner can’t front-run your trade because they won’t own the NFT. It’s a way of opening flash loans to the masses.
Q5 From @albertho9:
What role does the community play in this project other than being community members?
Justin Goro: Well the first part is that our new features are being built out by community members who stepped forward. Our community is very involved and active and we’ve had excellent voting turnouts when hosted on snapshot. Beyond that, I mentioned that Limbo will be community governed and will offer a strategic gamified experience for people who like to nerd out on governance. As more microDAOs are built, this trend will continue.
Originally the project was just me but I’ve noticed what were once fresh faces become experts in various areas of Behodler and take ownership and make contributions in ways that have amazed me. It’s a wonderful, non-toxic lot to work with. I recommend jumping in and being part of it, if for nothing else but the vibrant energy and endless cat gifs.
Q6 From @Flawsumm:
Do you have any coin burn/ buyback systems or any token burn plans to increase the value of tokens and attract investors to invest?
Justin Goro: Among upcoming dapps, we have one called Bonfire which is a sustainable ongoing buyback and burn dapp. We’ll use the Limbo reward token, Flan to reward users for sending in SCX and EYE which will be immediately burnt. Since Flan is backed by SCX, this feeds on itself. Burning tokens and deflation, in general, are obsessions of mine and it’s important that there’s ever-growing downward pressure on the supply of both SCX and EYE from burning.
Zanity: I think that’s all. Thank you so much for your answers to our Live Telegram Questions. We’re glad to have an AMA session with you, Justin!
Do you have any message for our community before we end the AMA session?
Justin Goro: Thank you for having me and thank you everyone for the great questions! It’s clear you’ve all done some thorough background reading.
If you love deflation and burning, if you’d love to pay low gas, if you’d love to be part of a high energy and fast-growing community that is working hard to ensure that sustainable cryptoeconomics take over DeFi, join our community on telegram, discord, and Twitter. We’d love to hear from you and are always happy to plunge into any questions you have.
Zanity: Don’t forget to join Behodler Telegram Channel and also follow their Twitter page.
Telegram:
https://t.me/BehodlerDex
Twitter:
https://twitter.com/behodlerAMM
Website:
https://behodler.io/
*Minor edits made for clarity.
