Coinversation will support users to create multiple liquidity pools to offer AMM transactions!

On 27th April 2021, Coinversation brought us the first Demo Show of the whole network! Following is the text and replay.

Guest introduction:

Geino Miao, Coinversation Chief Advisor, and Coinversation Community Developer. He used to serve as a senior director for Microsoft, Alibaba, Amazon, and other companies.

Jack Lee, Coinversation Community Developer, senior Rust development expert.

1. Can you further analyze the core modules of the Demo?

Coinversation has three essential components. The first is the Mint Center, which issues a single and highly circulated standard currency relying on pledging platform dollars and other recognized assets. Secondly, Coinversation allows users to create multiple liquidity pools, which can be combined to connect to the AMM DEX to provide liquidity. Thirdly, When the liquidity pool is created, aggregated assets are dynamically generated at the same time. In general, Synthetic assets are similar to the model of funds. Later we will build more complex structures. Our idea is to make all kinds of compound assets based on liquidity.

The engineer just showed us a very simple example with Polkadot’s official debugging tool: only two tokens were used, and no dynamic weight changes were set. But the weight of actual use is different. We need to configure weight according to business requirements. In addition, Coinversation is a platform for synthetic assets, and Polkadot is a cross-chain-based architecture. So we can actually indirectly realize a concept similar to the index fund in traditional finance by allocating different weights to such liquidity pools.

Each time a liquidity pool is created and filled liquidity by users, the liquidity pool generates a corresponding token, which is for the entire fund. For example, we made a hybrid fund of DOT and ETH. When users fill it with tokens, they will get a percentage of the total fund. This is another kind of token, namely CPT (Coinversation Pool Token), which is dynamically generated and can also be traded on AMM.

We didn’t fully show the AMM DEX today. The first version will be relatively simple. Users choose the liquidity pools. The same token transaction price is different between different liquidity pools. There will be an updated version in the future where we will do dynamic routing to aggregate all the tokens at different prices from various liquidity pools. Then we’ll select the best price and offer the transaction to AMM users.

2. What are the changes from a single liquidity pool to multiple liquidity pools?

First was a huge change in design. We went from a single liquidity pool to multiple liquidity pools, which means users can create their own liquidity pools. We want to empower the users of the entire Polkadot ecosystem to choose. Meanwhile, we have also seen that many platforms are trying LBP and IDO. We hope that Coinversation can become the platform that can carry this kind of business on Polkadot. On the other hand, this can provide AMM with liquidity. Users can be liquidity providers to earn benefits from liquidity mining.

Secondly, we will cooperate with different projects. We can make liquidity mining through liquidity pools or help with IDO and other businesses. Therefore, I think the multiple liquidity pools provide a possibility.

3. When will liquidity mining be opened?

Considered the project deployment and assets safety, it will not be released until the contract is audited. There is a test version for people in late May. At that time, users can try with test tokens and give us some suggestions so that we can update with your feedback.

4. When can we see the code?

We’ve uploaded some of the code on GitHub. At present, people can see a lot of different branches on Github because other engineers focus on their own part in each module. They update the code every three days. After the audition will be open source.

5. Could you please tell us the project plan and progress in the next several months?

For development are several clear points. Firstly, we’ve just announced the strategic partnership with Patract Labs, so we’re trying some debugging based on things that Patract has already deployed.

Secondly, we will run on the parachain of Plasm Network. So, we are actively coordinating with them to establish the testnet. This is expected to finish after May Day.

Thirdly, we’re going to plug into ChainLink, mainly attempting to test the data of oracle with cross chains. That is a relatively new experiment.

Fourthly, except for these collaborations, we are also actively finding potential collaborations with other projects. For example, for some Wrap Asset projects on Polkadot, we plan to build liquidity pools together.

Actually, the founder can control the access and withdrawal rules as well as transaction fees of the whole liquidity pool. So we have many in-depth communication and cooperation opportunities. For example, we can cooperate with business partners on Polkadot who have enough original assets or focus on making heterogeneous cross-chain assets. We hope to offer a fair, transparent, and controllable liquidity channel,

If you are interested in other AMM DEX in the Polkadot ecosystem, we can cooperate because our liquidity pool is not only for our AMM but also for other partners. Therefore, there is potential cooperation.

With the project’s progress, we will make more demo shows and make the project better according to the market demand with people’s suggestions as soon as possible. We will also update the white paper because we have already upgraded it slightly in terms of the project’s direction and development.

6. How long do you think this bull market will last? Will Coinversation complete some critical deployment during the bull market?

We think the market is relatively stable, and there is no panic. First of all, BTC is a benchmark for the industry, and ETH is the benchmark for the entire Defi ecosystem. Secondly, Polkadot is still early and is a miniature ecosystem with its economic cycle. I think it will be in a prosperous state for at least half a year. The market price will not fluctuate wildly. And the crash is of low possibility.

The most important thing is to make some things in the rising cycle that the partners and the market need. Then we enter the market to form an early ecology. As for Coinversation, we went from the single liquidity pool to multiple liquidity pools. We wanted to give users more choice to do what they wanted to do, such as the own liquidity pool, the tokens, and various financial derivatives. After all, we design it through decentralized DEX. So users can verify whether there are traps or not. It’s fair. Business can be brought to implementation development and prosperity once users approve and use it in bulk. We hope that Coinversation will realize this vision in this bull market.

About Coinversation

Coinversation Protocol is a synthetic asset issuance protocol and decentralised contract trading exchange based on the Polkadot contract chain.

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Coinversation Protocol is a synthetic asset issuance protocol and decentralised contract trading exchange based on the Polkadot contract chain.

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Coinversation Protocol

Coinversation: Decentralized Synthetic Asset Issuance Platform on Polkadot