Facemelter x LatteSwap AMA Recap
Dear Baristas,
Our head of Strategy & Marketing, Matcha, recently participated in an AMA session with Facemelter last week (Oct 7th). As reading the transcription of an AMA session is always a great way to keep yourself updated about the project, I have added the transcription of the session below for your reference:
Question 1:
To begin with, it would be great if you could give us a short overview of your own history and your role within LatteSwap?
Answer:
Of course! My name is Matcha, and I currently lead the strategy and marketing for LatteSwap
LatteSwap is a decentralized exchange with NFT integrated functionalities. What this means is that we have incorporated the concept of NFTs and provide them with tangible utilities. Users who own LatteSwap’s NFTs (Booster NFTs & OG NFTs) can stake them to earn $LATTE rewards or boost their yields from LP positions at LatteSwap.
Question 2:
What is the project’s vision? How does it compare to competitors on the BSC chain?
Answer:
In terms of our vision, we do not want to just be another decentralized exchange. We strive to become the pioneer of the bridge between DeFi and NFT. Actually, we’ve listed out four of our key aspirations in our Docs — let me just post them here for your reference.
- Become the top-of-mind option for decentralized exchange on BSC and other chains in the future
- Become a leading DEX with NFT integration, bridging NFT with DeFi with real, innovative, and tangible use-cases
- Support the growth and sustainability of the NFT space
- Act as a key layer for DeFi and its community by providing safe & profitable yield farming opportunities, allowing users to achieve the highest possible capital efficiency
In terms of competition, there are a few reasons why we believe we’re different from our competitors.
1. Our ability to provide a high level of capital efficiency — As mentioned multiple times in our previous AMAs and medium articles, 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 the best capital efficiency to our users. Some of the things that we have planned/are exploring are:
1a. 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. Very soon, we will launch a DripBar feature and users will be able to stake $BEAN to earn these rewards.
1b. LUSD — Latte stablecoin: We will allow users to use their LP position as collateral to take out loans — i.e., minting LUSD stable-coin. 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. More details on this to be disclosed later.
We will continue to add more features and find ways to help our user’s achieve the highest possible capital efficiency. Right now we are exploring the idea of allowing users to use their OG NFTs as collateral to take out loans as well. However, details are still to be finalized, so please stay tuned until we make the official announcement!
2. Team behind the protocol — LatteSwap is run by a team of cryptocurrency veterans who are:
2a. Highly experienced: All of the team members have been in the blockchain, finance, and DeFi space for many years. Each of us brings to the table our own expertise to help build LatteSwap to become the leading DEX.
2b. Highly Motivated: We enjoy working in the DeFi and NFT space. Our incentive is aligned with platform long-term success.
3. Security We are one of the safest protocols on BSC — this is because of all the security measures we’ve put in place:
3a. Audit reports — We have already received 2 audit reports from Peckshield and Inspex even before the launch of the protocol. We make it a norm to get an audit on new feature releases. In fact, we’ve just added one audit report from Watchpug on our recent $LATTEv2 contract. You can find all of our audit reports here: https://docs.latteswap.com/latteswap/security/audits
3b. Bug bounty program — 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: https://immunefi.com/bounty/latteswap/
3c. Timelock — We also have a 6-hour timelock on our contracts. And once we’ve successfully migrated our $LATTE tokens to $LATTEv2, we will increase the timelock period to 24 hours. With the timelock function in place, users will have plenty of time to withdraw funds in case they no longer feel safe leaving their funds with us.
Question 3:
What is the reason behind $LATTEv2
Answer:
Basically, we are doing a migration of $LATTE tokens to LATTEv2 because the current $LATTE token contract is too restrictive for what we plan for the future.
As you know, LatteSwap does not plan to be just another DEX. As per our Roadmap, we want to expand into other segments: DeFi, NFT, and potentially GameFi. However, as the team recently sat down to detail out the execution plan for the Roadmap, we realized that there is a limitation imposed on us by our very own $LATTE token contract.
With the current contract structure, our MasterBarista contract is the only contract that is allowed to mint $LATTE, limiting the type of incentives to only token staking. While this is a typical structure for many DEXes — i.e., stake LP tokens to earn rewards, the model only works if the incentive structure is used strictly for LPs. If we want to reward users for engaging in activities on our planned NFT marketplace, such as buying or selling their NFTs, we will not be able to do so. Thus, this greatly limits the development of any potential innovative model, and will not allow LatteSwap to achieve our aspiration of being an established pioneer of the DeFi & NFT space.
As a result, we made the decision to start the migration of our $LATTE token contract to LATTEv2. For more information on this, please visit the article we published earlier this week: https://medium.com/latteswap/announcing-lattev2-preparing-for-our-bright-future-b75d1709ebdd
Question 4:
Okay, in a little more detail now, can you tell us more about NFT functionality within the ecosystem. Can we hear more about OG NFTs & Booster NFTs? Where do we purchase them?
Answer:
Definitely, let me first start by explaining each type of the NFT and its utility on LatteSwap.
1. 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! However, all of our OG NFTs are sold out. If you are looking to buy one, you can purchase it through a secondary market on Treasureland
Link: https://treasureland.market/assets?contract=0x7f5daf18a06433c87bd81ea7ea19976e64100a66&chain_id=56
2. Booster NFT — Our Booster NFT provides a boost on rewards earned from LP if it is staked along with LP tokens on our yield page. For example, we have Whole Milk, who 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 Almond Milk, you will get a boosted APR of 500% (as 400% + 25%*400% = 500%)! The sales period for our Booster NFTs has also ended. However, we will continue to release new collections of Booster NFTs. Please follow our social channels to stay up to date on the release date of our next collection!
Similarly, you can purchase Booster NFTs in the secondary market on Treasureland.
Link: https://treasureland.market/assets?contract=0xb5a835b9e4ae76aea930831b84eb74293309e059&chain_id=56
However, please note that there’s a concept of Maximum Energy for all the Booster NFTs — there’s a limit on how many $LATTE can be minted as boosted rewards. To check the energy level of each Booster NFT, please visit this link.
Question 5:
What is the difference between the Dark Roast Espresso and the Light Roast Espresso NFTs? By the way, I love the NFT designs!
Answer:
The difference lies within the amount of $LATTE emissions it receives. Dark Roast NFTs get a higher allocation of the emission as it is the tier right below Master Barista. The Light Roast NFT is the lowest tier of the OG, and thus receives the smallest allocation of $LATTE emission.
Question 6:
This is a really good way to combine use of NFTs. For rewards, does the protocol automatically pick up your NFT from your wallet or how do you ensure you get the right APY?
Answer:
Both of our NFTs need to be staked to earn rewards.
As for the OG, when it is staked, the rewards will automatically be mined. However, it will not be automatically sent to your wallet and you will have to claim it manually.
As for the Booster NFT, you will need to stake it along with your LP tokens (which you will receive from providing liquidity at Latte Swap) in order to earn boosted rewards.
Question 7:
The DEXTools.io chart was a little all over the show between 19th and 21st September, what happened there?
Answer:
For the audience who’s never seen the chart, let me briefly explain what you will see. Basically, the price of our token, $LATTE, briefly reached the highest point at around $1,530/$LATTE from $1/$LATTE, and then dropped to around $2–3/$LATTE.
Prior to our fairlaunch token distribution, we seeded the LATTE-BUSD pool on PancakeSwap with 1 $LATTE:1 $BUSD. Many users wanted to get $LATTE early before the fairlaunch distribution, so they decided to swap for $LATTE using BUSD on PCS. Given that there is not much liquidity with only 1 $LATTE token in the pool, the price impact was crazy high, causing our token price to go up the $1,530/$LATTE. Once rewards start being distributed, the market corrected the price, as more supply entered the market, causing the price to drop to $2–3/$LATTE
Question 8:
Could you please share with us some of the utilities of $LATTE?
Answer:
Yes! Let me share our token utilities!
Currently, there are three key utilities of our $LATTE tokens.
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. When tokens are burned, their supply becomes more scarce, thereby increasing the value of the remaining tokens. You can find more details about our buyback & burn program here.
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 Q4 of 2021. Please click here for more details.
3. Earn rewards in partner protocol tokens: One of LatteSwap’s planned key feature is our Drip Bar, where Baristas will be able to stake their LATTE tokens to receive rewards in the form of our partner protocol’s tokens. Drip bar is scheduled for launch in Q4 of 2021.
You can read more about out token utilities here: https://docs.latteswap.com/latteswap/tokenomics/latte-token
Question 9:
Could you share us a link to the dex or website?
Answer:
Host: That concludes the first section of our AMA. I’ve held many AMAs, but I have to say you are right at the top in terms of preparation & delivery. I will definitely be checking out your platform. I don’t use BSC as much as I should but I can tell a good thing when I see it.
Now, let’s move on to the Q&A session.
Question 10:
Why you did you decide to run your project on BSC? Do you have any future cross-chain plans?
Answer:
We decided to start our project on BSC because of a few reasons:
1. Low gas fees: BSC has very low gas fees. Our mission is to create a product that is simple to use and is a product for the community. With BSC, we believe we can believe a far wider audience than if we had built on ETH.
2. TVL in the chain: I believe Binance is currently #2 in terms of TVL behind ETH. Given that, we want to establish ourselves in a large chain where our products will be appreciated by many users.
3. Confidence in BSC’s future: We have high confidence in Binance and its ability to take the ecosystem forward. We want to be here for the long run, and we think Binance is probably one of the best options, if not the best, to do so. With support from Binance (such as there MVB program, Priority ONE, and many other initiatives), we believe we picked the right chain to help us nurture our fledgling protocol.
There are currently many new chains in the market (Solana, Avalanche, Polygon) that are very appealing to us and we’d definitely would want to expand there in the future. However, we believe Binance is the right chain to start with, and then we will expand LatteSwap to other chains once we feel that our products/protocol are mature enough.
Question 11:
Is the LatteSwap made so that users can easily use the protocol?
Answer:
Yes — we made it so. If you visit our official website, you will see that our UX/UI are very easy to use. We try not to bombard our users with Jargons or charts, as we try to simplify everything for our users.
In addition, we also wrote quite a details Docs. It includes all the step-by-step guides as well as other information on the protocol (i.e. rewards allocation, features, parameters, etc.)
You can find the link to our Docs here: https://docs.latteswap.com/latteswap/
Question 12:
A lot of people are worried about the supply of $LATTE, as there is no maximum supply. Is there a buyback & burn program to help the token remain deflationary?
Answer:
Yes we do! Our existing sources of buyback and burn come from:
- 20% of BNB income on OG NFTs
- 25% of BNB income on Booster NFTs
- 0.04% of every trade made on LatteSwap
In the future, as we add more features such as our own NFT Marketplace, Lending, Lotto, and many other ideas we are exploring, there will be more sources of revenue for our buyback and burn program.
Our buyback and burn took place on Oct. 3. For this one, we burnt a total of 706,000 $LATTE. We still have a large portion of the funds from our NFT sales dedicated to our buyback and burn program. The fund will be used for the purpose for the coming weeks.
Question 13:
Besides $LATTE, we see that there will be $BEAN as well. What are some use cases of $BEAN?
Answer:
$BEAN tokens actually act as a receipt for your staked $LATTE. If you stake your $LATTE token into the $LATTE single-asset staking vault, the protocol will mint you $BEAN tokens at a 1 $BEAN:1 $LATTE ratio. If you want to withdraw your $LATTE, you will need to trade back your $BEAN.
While many protocols do not provide any utilities to these “receipt” tokens, our team at LatteSwap realizes that there is a potential for us to help improve our users’ capital efficiency if we are able to provide a utility to $BEAN.
As a result, we decided that our users will be able to stake $BEAN to earn rewards in the form of our partner protocol tokens via the DripBar. This means that $LATTE holders will be able to keep their $LATTE staked in the $LATTE single asset staking vault, earning them $LATTE rewards, while also staking $BEAN in the DripBar to earn more rewards, thereby greatly improving our users’ capital efficiency!
Question 14:
2021 is ending soon and it seems like your development is on track. Could you please give us a sneak peek of your plans for 2022; in terms of adoption and use-case?
Answer:
We actually have many things planned. If you haven’t got a chance to check out our roadmap article, which we released last week, I’d encourage you to do so.
But to summarize, we are launching two major features scheduled to launched by the end of Q1 of 2022. I believe these two features will equip LatteSwap with better weapons to compete in the market with other players.
The first of which is our NFT marketplace, which is scheduled to launch this quarter. The NFT marketplace will support buying, selling, and auctioning of NFTs. We will also be implementing some special mechanics to differentiate our product with those available in the market. Please stay tuned for more details.
The other major feature that we have that is coming up is the launch of our very own stablecoin, the LUSD. Given that we are a DEX, it is our goal to provide the best capital efficiency to our users. With this feature, we believe we can take what we can already offer to our users up a notch.
I have attached the Roadmap article here for your reference: https://medium.com/latteswap/journey-to-become-a-global-cafe-latteswap-roadmap-324e8f3c1aad
For a more long term roadmap, you can visit the vision & roadmap section of our docs: https://docs.latteswap.com/latteswap/vision-and-roadmap
