Router Protocol Galaxy Farm 2 AMA (05/04/2021): Transcript
Andrei Balaianu (AB) — Coreto.io
Bogdan Baiceanu (BB) — Stater
Palash Jain (PJ) — Frontier
Josh Robson (JR) — IGGalaxy
John Liu (JL) — Union Finance
Priyeshu Garg (PG) — Router Protocol
Ramani Ramachandran (RR) — Router Protocol
RR: Let me give the community a quick summary of what DFyn, Galaxy Farm and Router Protocol are.
When you all started with DFyn, which was some time ago, DeFi was not a household name. And last year, when we were getting into DeFi, we saw that Ethereum was so congested, that we needed something other than Ethereum that would let people trade, swap and take part in all the fun things that DeFi has to offer. What we figured was that when we built the bridge on Matic — now Polygon — we founded the experience of seamless, instant interaction. If think of DeFi using Uniswap, the difference is stark. The ability for instant gasless transactions was huge; you don’t want to go back to the traditional issues of paying very high fees for basic transactions!
So, we then started talking to Polygon about our aims with Galaxy Farm, it was initially just about getting projects in. But now [it’s great] as you can have the ability to get projects on to the layer-two platform! What’s even more exciting is the Router bridge we are building; you can actually see seamlessly transition between Polygon and other chains!
Router testnet was launched ten days ago, so what we’re hoping is in the next four-to-six weeks, we’ll have Router connecting multiple chains and DeFi nodes on a few different chains. And Router is not limited to DFyn; in fact, you can plug into any chain: BSC, Uniswap, Sushi, 1Inch, Pancake — it doesn’t matter!
What’s exciting about having all of these communities having the ability to exist on multiple chains is once you’re in the ecosystem you’re naturally [immersed].
PG: That’s right! We’re really excited to have most of you on board!
JR: I think with what you are building, the key to the overall success of blockchain is interoperability. What you’re building right now provides real value for your key partners and beyond!
PG: One key thing I would like to add is that once our Router Protocol bridges go live, it will help our projects become cross-chain. So, I assume that all of your projects will have plans to thrive on different blockchains, and I can assure you that Router Protocol will be there to help you with your cross-chain migrations, building bridges, and opening the door to the wider infrastructure, which will be opening and connecting all the different blockchains.
RR: A question from Yousuf: Will we always run events like Galaxy Farm and Space Farm to bring in users?
We will run a few events, and I think tokens naturally help incentivise the bootstrap community. We’ve designed the architecture so that the validators and liquidity providers all have the incentive to contribute to liquidity. So, these programmes will run for a fair bit of time, but not indefinitely.
What are your thoughts on all the systems and designs, guys? There’s a bit of a bubble happening clearly, and we have to incentivise through tokenisation, but at some point the architecture has to have a tokenomics that’s interesting enough on its own, without just being a “gameplay” or “token-play” that’s held up by the market, right?
AB: We are still early in discovering all the possibilities. We can access blockchain in general, but it’s still just the start; the more we build, the better we will be, the faster we get there.
JR: I think user experience is key. We have to make sure we don’t complicate anything. Take what Router Protocol are building, for example; you are helping to make this more seamless for the end user. There are currently many steps to acquiring and selling IGG tokens for our users, in particular, and what we want to do is mitigate these steps. This is what you guys (Router Protocol) are helping with: reducing these steps and making it so users can interact with multiple chains in one ecosystem.
RR: We will release the DFYN tokenomics very soon! Please be patient! And thank you all for your support!
PG: The list of projects that will be involved in the Galaxy Farm are:
- Router Protocol
- Nord Finance
- Glitch Protocol
- Glitch Finance
- Razor Network
- Union Finance
- Mantra Dao
Participants in the Galaxy Farm will be able to stake just one LP token and they will earn tokens of all ten projects at the same time! The claiming and shopping (-43.49) will be gasless because DFyn is a gasless exchange on Polygon Network. So, users will have a nice experience earning ten different coins without spending any money in the process!
JR: In total, there’s approximately $300,000 available.
PG: That’s right! Each project is contributing $30,000 of rewards so there’s $300,000 worth of rewards to claim just by farming.
RR: And the good thing from a community perspective is because it’s a collaborative thing, we are all contributing to the art of a decentralised movement! Each of you get ten extra wallets when contributing to the Galaxy Farm and there are ten extra communities watching all projects [involved], which will lead to so many interesting outcomes!
JL: It’s difficult making the transition from the “Ethereum world” to the second layer. As you’re bringing projects and making this transition happen, you’re solving many issues that many run into!
RR: It’s just the beginning! Cross chain is going to be such a natural evolution. In a few years, we will wonder why many people just stuck to Ethereum! And I don’t think any of us will think Ethereum will go away at any point in time, but it will just be co-existing — it’s almost like operating systems of multiple communities.
There’s a lot of existing NFT projects that are aggregating to Polygon and that could be one way the whole ecosystem goes up, but in two-three years when we look back at all the fees on Ethereum, we’ll think: “wow…did we really do that?”
JL: It’s pretty much true for any community or technology. Whether it’s technology, you know, back in the day you had C++ programmes, you had Java programmes, you had banks with their own operating systems, which today still don’t really talk to each other! There are certain banks that are in their own network and they have to make multiple hops to get into other networks; that’s the reality of the technology.
And then you have community, where we throw “globalisation” around very easily, but we have many countries that are still locked into their own little economies; they are only just starting to join the global community.
So, DeFi is no different, and we’re going to look back in five years and see the transition DeFi did from being the “silent ecosystem” to be the “linked-up” trading or economic exchange.
AB: And, also, about the cross-chain that we are building step-by-step right now, it will soon take over everything, the whole crypto ecosystem right now. As you said: most projects are now constrained by the chain they are situated. So, building cross-chain ecosystems like this, we open up everything; it will no longer be a competition of “Do I use this blockchain, or that blockchain?” instead it will be a competition based on the value each project brings to the table. As we said in the beginning: it’s only the start — we are very early!
PG: We will go to community questions.
VL: Do we need to pull out any LP’s we now have on DFyn, or will they be automatically picked by the Galaxy Farm?
PG: For the people currently farming on the Farm, they will have to ‘unstake’ their LP’s on “Cohort 1” and will have to stake the same assets on “Cohort 2”. “Cohort 1” will be ending anyway so it makes sense to ‘unstake’ your LP tokens. You’ll have to go to the site and manually stake them to “Cohort 2”; they will not be automatically mapped from “Cohort 1” to “Cohort 2”.
DM: How are the rewards from the Galaxy Farm funded?
PG: The funding is very transparent. All projects are contributing a fixed $30,000 worth of their tokens, and there are ten projects; that’s $300,000 worth of rewards for all participants.
RR: We want to specifically hear from the Stater team: How do you think layer-two is critical to the good of NFTs? Do you see it as an immediate need or a “nice to have?”
PJ: We have been doing a lot of experiments. In our mobile application, we have integrated “track”, “view” and “manage” NFTs, so all the user has to do is enter the details and they can view all NFTs, either individually or collections.
One main blocker, like when we say we want to onboard artists to the NFT space, is NFT minting. The hottest marketplaces right now are on Ethereum. And now more people in the marketplace are coming on, like BSC. But the thing is everything is concentrated on Ethereum, but everything is extremely expensive. So, having NFT minting on layer-two would enable small artists to mint NFTs for less than a cent, in turn driving more artists from L1 (Ethereum) to L2, which will be great!
RR: What are your thoughts on NFT minting and collateralisation?
BB: So, if we look at the space right now, we see it’s just getting started. Few people know that NFTs have been around for some time, for some years, in fact. But right now, we see that adoption, we see the traction, like getting into the space. Some say that NFTs can be an enabler for new people to get into blockchain; they get into NFTs, which encourage them to get into other projects.
But regarding the network, right now, things are very dispersed; all networks play with NFTs and try to implement them. Of course, a big part of the market is concentrated on the Ethereum network, but we’ll have to see. From our side, we’re quite agnostic. We try to say we are where the NFTs are, so we will just be very careful about adoption, but try to integrate as many network’s as possible.
I can’t say how this will look in five years because it’s still quite a fresh space and very experimental, but we’ll see. From my perspective, the big enabler will be gaming because we see a very huge market, where every gamer loses money — especially when we look at the pay-to-play model; but NFTs change that: it shoots from a pay-to-play model to a pay-to-earn model, which can create micro-economies, which open up a new wave of innovation in the space. We’ll have to see, but it’s really interesting!
RR: Let’s focus on NFTs around sports. There’s a lot of activity around NFTs here, and cross-chain and L2.
JR: I think with IGGalaxy there’s two sides of it. There’s minting, so let’s say you play in a tournament and then you win an NFT trophy, or even ranking systems; but then on the other side is the ability to distribute these prize pools, which is a little bit different.
But on the topic of L2, this makes it a lot more sustainable for IGGalaxy to do so. We couldn’t dream of doing so on Ethereum. To develop on Bogdan, he is spot on: NFTs are definitely the enabler. Look at CryptoKitties, and now recently the artwork and even Jack’s first tweet being made into an NFT! There are so many more eyes on the space now because of NFTs. Influencers like Gary Vee, also, have brought a lot of exposure to the space, especially to non-traders!
If you ask someone about Bitcoin or blockchain, then they may not know what you’re talking about, but you mention NFTs, and all of a sudden, they’re switched on — or at least more so. Paul Logan again, creating his NFT cards, which are now bridging the gap between everyday gamers and the wider crypto space.
AB: I just want to add is the best part of this NFT movement will be related to gaming! So, I see a real potential for innovation. I’m interested to see how it will be used, and how creative game creators will be incorporating these!
JR: Bang on! And ensuring that there’s projects, like yourselves, bringing some meaningful substance to the end user, which end users will respond to. And the NFTs that Andrei referred to will be massively utilised by game developers, so I’m also very excited!
JL: Of course, the game developers will be integral. There was Diablo 2, Diablo 1 even, and then World of Warcraft farming — back in the days — and it always stuck with the game developers and publishers because they don’t want that money to leave their ecosystem. As Bogdan said, NFTs in gaming have been around for well over a year-and-a-half and there was huge excitement! Although that didn’t really go anywhere on the surface, in the background a lot of work was done and it was about getting the developers and publishers on board, which we’re starting to see now!
Back to what Andrei said, we now have demand, gamers are coming on board, gamers are wanting to exchange skins from one game with a publisher from another; that’s where interoperability comes in. For artwork, you want to also guarantee the authenticity of things, even though the technology does this, people want the extra guarantee. So maybe in six months, or a year, we never know how quickly these things move, we’ll be operating as one thing: people will be coming in, they’ll get their NFTs, they’ll be exchanging, and it will be completely seamless to the end use!
RR: Just looking at the numbers here, Galaxy Farm reached a TVL of a couple million dollars in an hour after launch! Imagine in the next five-to-six months how this will take off!
JL: Like the ability to stake your skins or stake your artwork!
RR: We have a question in the chat: Are the founding teams staking liquidity?
Yes! Each of the ten teams here are contributing a fair bit of liquidity to DFyn, ranging from $50,000 to $100,000 and then the idea is that the community can come and add much more liquidity!
Another question: Can you explain how Polygon comes into the ecosystem?
Sure! All of us know about Polygon; it’s been an amazing protocol and it’s really amazing what the team at Polygon have built! There’s such a community feel, with so much traction! I think Avalanche is fantastic and has huge potential and Polygon is definitely in the same league as some of these projects. I think the valuation is — something like — $4 million+ and each day you hear about new projects onboarding and even all the interesting things about NFTs! And once you use DFyn and then use Uniswap, you can understand why projects tend to go on to Polygon and how cool it is, then when you have the Router bridge, you will figure out how seamless it all is!
Polygon has been a key enabler for the wider layer-two movement!
Question for Josh: Could you perhaps talk about the functionality of ORB tokens and when you expect utility in IGGalaxy?
JR: ORB tokens are the secondary token in IGGalaxy and will have utility throughout IGLabs, and specifically for hyper-casual games [which will require ORB], so a lot of the ORB tokens will be used for further staking. More will become available over the next year!
Question from community: Can you explain the tokenomics for the DFYN token?
RR: This is a common question! We will announce more in the next few weeks, but for now we are working out the mechanics of how we reward early supporters, and there’s an NFT angle too! There’s a lot of exciting things in the works so stay tuned!
PG: Is there anything any of you founders would like to share with the DFyn community?
JL: Question for the Router team! Obviously DFyn is doing very well, since the introduction of Galaxy Farm, did you see a spike in the type of liquidity taking place on DFyn?
PG: Yes! We saw a great spike in liquidity just before the launch of Galaxy Farm, we had a couple hundred thousand [dollars] of liquidity, and within an hour of launch Galaxy Farm 1, we had over $2.5 million worth of liquidity!
JL: Do you think this volume [of liquidity] will be sustainable for each of the projects as more move on to the layer two? It’s no longer going to cost $80 to do a transaction!
RR: Absolutely! Firstly, projects want to come on to layer two and also to reduce the costs. [With a focus on the second point] You can just drop around the pools for fun: if you see there’s higher pools, you can withdraw from one and go to another; it’s seamless. Now imagine that in Uniswap — you’ll be thinking how much do I lose if I withdraw!? And it’ll only get crazier because imagine you find nodes on multiple chains and you have a Router bridge seamlessly connecting! So, imagine you have a Union pool on Polygon and then a Union pool on Huobi or BSC — there’s so many interesting possibilities!
A question for Bogdan: When does the main network for Stater come?
BB: The main update will be available from Friday 16 April!
Question from community: How many projects does DFyn expect to add over the course of time? What type of projects do you look for?
RR: We want projects that want to move to L2 and that want to use the power of cross-chain connectivity. We don’t really know about projects that have some “visibility” or little traction, but otherwise we’re very open about what projects we will partner with.
And to follow up on your question about “when stable coin pairings will be introduced to DFyn?” we already have a fair bit of liquidity on the stable coin side [on Galaxy Farms]. There are five farms in Galaxy Farm 1 that are all USDC pairings, but we have plans to continue to add more over a period of time. We also have individual projects coming to list of DFyn!
PG: One more thing that’s interesting to share is that we’re also adding a “Cohort 3”, in which we are “going long” on projects that have tiny market caps, so we are particularly looking for projects that have a market cap between $100,000 and $10,000,000, which will give our participants a chance to earn and be stake holders in tokens that have a lot of potential to move.
Of course, we’re offering previous part participants to roll over into “Cohort 3” but we’re going to keep initiatives on that encourage projects with smaller market caps to also take part in our farming ecosystem!
JR: What are you expecting in terms of participants for “Cohort 3”? Are you going to bring on another ten [projects], or will you expand it?
PG: More! We want to go with at least 20-to-30 participants in “Cohort 3” but we want to keep the reward limits low for them because they’re going to be small projects. We do want to give exposure to the smaller projects, though, so it’s our way of helping them!
JR: After that, we can maybe do an esports tournament for projects that have participated in the Galaxy Farm, perhaps a 32-team tournament! We can then distribute our tokens and it could be a nice way to end it! If you guys are up for it!
*All agree. Gaming and esports talk*
(48 minutes — 54:50 not transcribed)
PG: I’m always fascinated by the idea of bringing liquidity to NFTs because that can help people get interested into the buying and selling of the art because they know they can enter and exit very easily. This is a large problem in traditional art because they aren’t liquid and it’s very hard to get a good price, so it’s a great concept!
We have a question for Coreto, and I think it will be the last question for the day: Will Coreto have a section dedicated to projects only or to content creators, too?
AB: We are not only aiming for one section of the blockchain community, but we are addressing every type of user or, let’s say, entity that interacts with blockchain and everything around it. So, take our alpha for example. For now, we will be launching a closed-alpha version and we have 500 members that will be able to use the platform at first and then we will open up to more and more users.
The first feature of the platform is called staking of opinion polls, and it targets specifically traders. I guess everyone [here] has interacted with Twitter and Telegram signals or sharing predictions, but you can never entirely trust them until their prediction really happens; you don’t have a track record for that.
So, what we’re trying to do is create the tools necessary for traders to share their knowledge, and have their predictions available to the wider audience; and also for the users that look at these predictions to be able to trace their performance and have a “trust metre” for every analyst [that provides their prediction]. But this is only the beginning. We will be branching out to content creators, reviewers, projects in general, and every other part of the bigger crypto community, and providing the tools to enable everyone to express themselves and validate information. So, the bigger plan is to have a generalised trust layer that we can apply over everything that comes and goes in the crypto community!
PG: Great idea and true decentralisation!
So, thank you to everyone for taking part!