EnjoyMyhobby x LatteSwap AMA Recap
Dear Baristas,
Our Head of Strategy & Marketing, Matcha, recently participated in an AMA session with EnjoyMyhobby last week (Nov 17th). As usual, we’d like to share you the recap of the session!
The session was separated into 2 sections:
- Prepared Questions from EnjoyMyhobby
- Live Questions from EnjoyMyhobby Community Members
Section 1 — Prepared Questions from EnjoyMyhobby
Question 1:
Could you give us an introduction of yourself and LatteSwap?
Answer:
Hi everyone! My name is Matcha! I currently lead the strategy and marketing at LatteSwap!
LatteSwap is a decentralized exchange with a focus on bridging the DeFi and the NFT space together with its NFT integrated functionalities. The platform offers three main features to its users: trade, earn, and collect. Users can trade cryptocurrencies with ease, participate in safe and attractive earning opportunities, and collect LatteSwap’s highly exclusive NFTs that possess real tangible utilities.
Question 2:
As LatteSwap’s proprietary NFTs have real tangible utilities, could you please elaborate more on how the NFTs can be used?
Answer:
Of course! Let me first start by explaining that there are currently two types of NFTs offered by LatteSwap: the OG NFTs and the Booster NFTs. Each type of the NFT has its own unique qualities.
Let me first start with OG NFT! Our OG NFT gets a fixed allocation of all $LATTE emissions. As long as you hold the OG NFT, you will receive $LATTE tokens in perpetuity! Our OG NFTs are split into three tiers: Light Roast, Medium Roast, and Dark Roast Espresso. The Light Roast Espresso is the lowest tier of the OG NFTs while the Dark Roast Espresso is the highest tier of the OG NFT. However, all of our OG NFTs are sold out, so if you are looking to buy one, you can only purchase it through a secondary market on Treasureland here.
The second type of our NFTs is the Booster NFT. Our Booster NFT provides a boost on rewards earned from LP if it is staked along with LP tokens. For example, our Whole Milk Booster NFT provides a 25% boost on rewards for all LP pools at LatteSwap. If you stake Whole Milk along with your LP position, you can multiply your rewards earned by 1.25x!
Let me give you a brief explanation on how it works: let’s assume you are farming on the LATTE-BUSD pool, which currently provides a 400% APR. If you stake your LP tokens along with Whole Milk, you will get a boosted APR of 500% (as 400% + 25%*400% = 500%)!
However, please note that there’s a concept of Maximum Energy for all the Booster NFTs. The maximum energy for each NFT corresponds to the number of LATTE tokens the NFT can mint as boosted rewards. 1 unit of maximum energy is equal to 1 $LATTE token. Once the maximum energy of an NFT has been reached, the NFT will lose its boosting ability.
Similar to the OG NFTs, the sales period for our Booster NFTs has also ended. We will continue to release new collections of Booster NFTs in the future, but for now, if you’d like to purchase a Booster NFT, you can do it through Treasureland here:
But before you buy any booster NFT on Treasureland, be sure to check its maximum energy! Some of the Booster NFTs that have already been put up on sales there may already have their energy used up! You can find the step-by-step guide on how to check the maximum energy of a Booster NFT here.
Before we move on to the next question, let me tell you a bit about our newest Booster NFT, Keopi Guard! You may have heard that we will be releasing our Keopi Game tomorrow. If you win all six rounds of Keopi Game, you will receive our Keopi Guard Booster NFT for free! Our Keopi Guard Booster NFT provides a 25% boost on rewards for all LP pool and has a maximum energy of 1,000. More details here.
Question 3:
Security is one of the top priority of LatteSwap. Could you explain more in details in how LatteSwap protects its users?
Answer:
Yes! LatteSwap takes the security of our users’ funds as the highest priority. With that said, we’ve put in place multiple safeguards to help protect our users’ funds and we believe that LatteSwap is one of the safest protocols on BSC with our current security set up.
1. Intensive Code Review Process & Security Audits:
We follow a highly detailed and intensive code review process prior to releasing any features. After the code review process, we also make sure to get our codes audited by third party audit firms to ensure that all the features are safe and free of any potential vulnerabilities. To date, we’ve received over four security audits from InSpex, Peckshield, and WatchPug. In fact, we’ve just received one of the four audits just last week in preparation for the launch of our Keopi Game!
2. Bug bounty program:
Although DeFi is already a very large industry, it is relatively new. As new hacks/exploits emerge everyday, we can never be too sure or complacent, especially on the issue of security. With that said, we’ve added an additional security layer through our official bug bounty program with Immunefi to help protect the protocol in case any potential vulnerability slips through our intensive code reviews and third party audit process. The program currently pays up to $50K.
You can find more details on how to participate here.
3. Timelock:
Our contracts are also under a 24-hour timelock. This means any changes made by our developers will have a 24-hour lag before becoming effective. During this time, the community will be able to review the changes and withdraw funds safely in case of questionable updates or if they no longer feel comfortable to leave their funds with us.
For more details on LatteSwap’s security, please check out this link.
Question 4:
$LATTE can be staked to get $BEAN as receipts, and $BEAN can also be staked to earn extra rewards on DripBar. Could you explain the rationale behind this set up?
Answer:
Let me first start off by explaining a little bit about $BEAN. $BEAN is the token you receive when you stake your $LATTE into the $LATTE single asset staking vault. For every $LATTE staked, the protocol will mint you $BEAN token at a 1 : 1 ratio, and $BEAN is used to help the protocol keep track of how many $LATTE a user will be able to withdraw. For every $LATTE you wish to withdraw, you will need to trade in 1 $BEAN token.
The reason that we’ve allowed $LATTE holders to stake $BEAN to earn rewards in the DripBar is that we want to achieve the best capital efficiency for our Baristas! By allowing $BEAN to be staked in the DripBar instead of $LATTE, our users can keep their $LATTE staked in the $LATTE single asset staking vault and at the same time earn rewards in the DripBar. Essentially, the APR you receive from staking $LATTE is the APR from the $LATTE single asset staking pool plus the APR from the pool in which you stake your $BEAN tokens in.
In a nutshell, if you stake a latte, you get both a $LATTE and $BEAN, and if you stake $BEAN, you get another reward.
You can find more details on this here.
Question 5:
LatteSwap’s Keopi Game is coming soon. Could you please explain what it is? Also, how will the participation fee will be used if there is no winner in the game?
Answer:
I’m glad you asked! Haha.
Let me first start by explaining what Keopi Game is and how you can participate.
LatteSwap’s Keopi Game is our version of a Lottery game, inspired by the Korean Netflix series, Squid Game. The feature will provide our users with a new, fun, and exciting way to earn and at the same time will add another source of revenue to our token burn program. Our Keopi Game participants will be able to earn up to 80% of the total reward pool while the remaining 20% of the proceeds will be burned.
To participate in the game, you will need a participation pass. The price for the pass will be equivalent to $5 in $LATTE tokens. 20% of the amount of $LATTE you spend on buying each ticket will go directly to our token burn program while the remainder will be allocated to the prize pool. Of course, you can buy as many passes as you want to increase your chance of winning.
Each game consists of six rounds, with each round lasting 30 minutes. Before each round ends, you must check your fate (there will be a button for you to click) to see whether you have been eliminated or have survived the round. Your fate will be determined at random based on Chainlink’s VRF function. If you fail to check your fate before the round ends, you will automatically be eliminated. Make sure to grab a cup of latte, so you don’t doze off!
If you survive the round, you, along with other survivors will be asked to vote whether to continue to the next round or end the game at that round. If the majority votes to stop, the game will end. Otherwise, all survivors will proceed to the next round.
Once the game ends, winners can claim their prizes directly on the Keopi Game page. If there are more than one winners, the prizes will be split equally among them. If there are no winners, all the rewards in the prize pool will be rolled over to the next game! Please note that as you go deeper in the rounds, the survival chance becomes slimmer but the prize pool becomes bigger! Also, if you survive all 6 rounds (without ending the game early), you will also receive our highly exclusive Keopi Guard Booster NFT, which provides 25% boost on all LP and has a maximum energy of 1,000! So think carefully before you vote to continue or end the game!
In addition, our team at LatteSwap would like to extend our sincerest gratitude towards all of the Baristas in our community whether they have been with us since the start or have just joined us. To show our appreciation, we have allocated about ~$100K USD from our own pocket to seed the prize pool for our Keopi Game!
I repeat, $100K USD in LATTE!!!!
The first game will start tomorrow — Thursday 18th November 2021 at 4 AM UTC (or 1PM Korean Time UTC + 9). Be sure to arrive beforehand to buy the participation pass.
For more details, be sure to check the article we just released on the Keopi Game feature. It outlines how to participate, the prizes, your survival chances for each round, and many other details about the game. Here’s the link.
Question 6:
Could you provide the rationale behind the prioritization of LatteSwap’s Stablecoin feature?
Answer:
So to give everyone some context, our team at LatteSwap originally planned to release an NFT Marketplace, a Stable Swap AMM, and Governance in Q4 of this year while releasing our Stablecoin module in Q1 of next year. However, when we originally planned for our 6-month roadmap back in September, the market landscape and outlook were different, and our original plan for Q4 may no longer suit the current market situation for LatteSwap:
- Stable swap AMM is great, however there are existing solutions out there and the launch of stable swap AMM might only yield marginal benefits in the short term.
- Governance is best implemented when a protocol is mature, as its value derives from being able to vote in key decisions and parameters for the protocol. With LatteSwap’s current situation, implementing governance right now may be a bit too early.
- The NFT market is getting increasingly competitive, with many DeFi platforms launching their own marketplaces. We are also in a bit of an NFT bear market at the moment. With those two factors in play, spending our dev efforts to release an NFT Marketplace right now may not yield the growth we are seeking.
While the Stablecoin feature will be the most complex to develop, the team believes prioritizing it will bring the most value to both the current and the prospective users when compared with the other three features, and this is due to the following three reasons:
- The Stablecoin feature will significantly improve our users’ capital efficiency, leading to the growth of our user base, especially when we are in a bull market where investors/traders are looking for leverage and maximizing their capital efficiency.
- The Stablecoin feature will add another significant source of revenue (interest rate, etc.) to increase $LATTE burn and acts as another deflationary mechanism. This also increases protocol’s TVL, as we will accept various assets as collateral to mint our Stablecoin.
- The Stablecoin feature will indirectly uplift the value of developing/implementing Governance, a Stableswap AMM, and an NFT Marketplace as a result of the user base expansion.
How we will implement our Stablecoin module will be different from other options that are currently available in the market. We will allow our users to use farmable assets, such as LP tokens, as collateral to mint our stablecoin. By doing so, our users will be able to earn rewards on their collateral while also being able to mint our stablecoin to invest in other assets or increase their farming position. This is maximizing capital efficiency at its finest!
LatteSwap will be the first to allow users to put up farmable assets as collateral to mint stablecoin, as there are no other options in the market that offer this set up. For now, we don’t want to leak too many details, but we’ll be sure to do so in our official announcement in the coming weeks! Please stay tuned!
Section 2 — Live Questions from EnjoyMyhobby Members
Question 7:
What are the strengths of LatteSwap that differentiate LatteSwap from other DEXes?
Answer:
There are 4 key areas where, we believe, differentiate us from the competitors
1. NFT integrated functionalities
LatteSwap is a hybrid of both worlds — NFT and DeFi. We are one of the first protocols that actually create real use-cases for NFTs by incorporating NFT integrated functionality into the core of our protocol structure rather than just adding it as an afterthought. Our first two collections, the OG and the Booster series, have real utilities when used on our platform. I’ve already covered both NFTs’ utilities above already, so I won’t be going into it any further. However, if you’d like to learn more about the functionalities, please check out the material here.
2. Our ability to provide a high level of capital efficiency
One of the key competitive advantages of a DEX is its ability to provide the highest level of capital efficiency to the users. At LatteSwap, we believe that we can deliver one of the highest capital efficiency to our users. Some of the things that we have planned/implemented are:
A. Multiple earning opportunities for $LATTE holders: We have a two-token setup where $LATTE holders receive $BEAN when they deposit $LATTE into the $LATTE single asset staking vault. Users can then use $BEAN for additional earning opportunities on the LatteSwap platform, allowing them to earn multiple rewards at the same time.
B. LatteSwap’s stablecoin: As mentioned earlier, we will allow users to use their LP positions as collateral to take out loans — i.e., minting stablecoin. This feature will greatly improve our users’ capital efficiency, as they can earn rewards from their LP position while taking out loans to increase their leverage.
3. Protocol Security
I’ve already covered this earlier today. You can scroll up to the response to this question to see how LatteSwap is one of the most secured DeFi platforms on BSC, or check out the link here.
4. Highly experienced and motivated team
LatteSwap is run by a team of cryptocurrency veterans who have been around since the first wave of DApp boom in 2017. Each of the core team member brings to the table their specific skillsets, which can help us take the project forward. In addition, the team’s compensation relies heavily on the price of our native token, LATTE, which means that it is our best interest to see the protocol to success and that we are motivated to build up the token price and sustain the project for the long run.
Question 8:
Since LatteSwap has a token listing program, called DripBar, could you tell us the condition for a project to join the DripBar?
Answer:
The DripBar program is our official token listing program. In order to participate in the program, partners must pay a fixed fee in the form of our partner’s tokens.
100% of those fees will be distributed to $LATTE holders through a single asset staking vault on the DripBar (where you stake your $BEAN tokens). The LatteSwap team DOES NOT take any cut of the fees.
In return, we will set up an LP pool for our partner. They can choose a token of their choice to be paired with their native tokens. We will then allocate a portion of $LATTE emission to the set up LP pool as incentive rewards. The users who receive our partners’ tokens from the DripBar will be incentivized by the incentive rewards to use those tokens to provide LP to the pool, creating liquidity for the LP.
Our users get more earning opportunities!
Our partner gets liquidity and exposure!
LatteSwap gets to expand its network of partners!
It’s a win-win situation for all!
If any protocol is interested in joining our DripBar program, please reach out directly to me (t.me/matcha9559)! Alternatively, you can also fill in the form here.
Question 9:
What steps are you taking to provide users with the best possible trading experience?
Answer:
If you have not got a chance to visit our official website, I’d encourage you to do so.
What you will find is that our UI/UX is very simple for everyone. This is because we want to make sure our products are easy to use regardless of whether you are new to DeFi or are advanced yield farmer. We do not bombard our users with charts and jargons, and try to simplify the interface, making it as self-explanatory as possible. We also try to provide tooltips to provide extra clarification to our users where necessary.
Moreover, our Docs are very detailed. In addition to providing a step-by-step guide for all the features, our Docs also provides a lot of information about LatteSwap to our users. If you haven’t got a chance to read our Docs, I’d encourage you to do that as well! You’ll learn a lot more about our protocol ;)
Question 10:
Could you elaborate more on the utilities of LATTE token?
Answer:
There are 3 main utilities for $LATTE.
1. Accrue value through platform economic benefits.
LatteSwap has put in place multiple buyback & burn mechanics to help $LATTE token holders capture platform economic benefits from just holding the tokens, as a portion of our platform revenue is allocated to these mechanics. We already have multiple sources of revenue for our token burn and will continue to add more.
2. Participate in the governance process
$LATTE is LatteSwap’s governance token. This means that $LATTE token holders will be able to vote on key decisions for LatteSwap such as protocol parameters, rewards emission schedule, and the design of LatteSwap’s NFTs’ parameters. The governance process is scheduled to be implemented in Q1 of 2022.
3. Earn rewards in partner protocol tokens
One of LatteSwap’s key feature is our Drip Bar, where Baristas will be able to stake their $BEAN tokens to receive rewards in the form of our partner protocol’s tokens. $BEAN can only be minted from depositing $LATTE into the single asset staking vault, as I mentioned earlier. So if you’d like to learn more about $BEAN, please check out our Docs!
Question 11:
Could you tell us where the name LatteSwap comes from?
Answer:
We are coffee connoisseurs (although my name is Matcha HAHA)! When we decided to launch LatteSwap, the core team met at a local coffeeshop. We didn’t know what name to give at the time, but all of us were having Latte — hence the name LatteSwap was born!
Host:
Thank you for answer. Lastly, is there anything you would like to say to the people who are looking forward to LatteSwap?
Matcha:
Thank you everyone for your time! Our Cafe welcomes anyone who’d like to be a part of the family! So be sure to join us in any of the channels below!
- Follow our Twitter
- Join our Discord
- Join our Telegram
- Join our Telegram Announcement
- Join our Telegram Trade Talks
- Follow our Medium
