Dear Baristas,
I recently had the honor to represent LatteSwap in an AMA session with Poloniex.
The AMA was separated into two sections:
- Prepared Questions from Poloniex (7 Questions)
- Live Questions from TG group (5 Questions)
Please find below the recap of the AMA session below. Please note that the information is at up to date as of the time of the AMA (10/28).
Section 1 — Prepared Questions from Poloniex
Question 1:
What is LatteSwap (LATTE)? How does it work?
Answer:
LatteSwap is a decentralized exchange with NFT integrated functionalities. In addition to providing the core features of a DEX, such as Swap and Farm, we bridge the DeFi industry with the NFT space by adding real utilities to LatteSwap’s own NFTs, allowing their holders to earn yields through staking. For example, users will earn LATTE rewards in perpetuity if they stake their OG NFTs at LatteSwap or they can earn boosted rewards from providing liquidity by staking their Booster NFTs along with their LP tokens.
To learn more about our NFT integrated functionality, please visit this link.
Question 2:
What is your perspective on the prospect of a decentralized exchange / trading platform, and LatteSwap future’s growth?
Answer:
I think there is quite a huge potential for decentralized exchange, especially given the bull cycle that we are in. The trading volume on DEXes has increased substantially in the past year. Especially with the recent cryptocurrency ban in a large country like China, we also see a shift of volume from CEX to DEX. UI for many DEXes have also improved substantially so it’s much easier for newcomers to trade on DEXes.
However, with many recent launches of decentralized exchanges on BSC, the market has become much more competitive than what it used to be a year ago. To thrive in this competitive market, you must find a way to differentiate yourselves. You need to have a clear vision of what you want to achieve as well as a capable team to execute your plan.
Albeit the increasing competition, I believe LatteSwap has the potential to compete, as it is not just another DEX on BSC. Our vision is to become a one-stop-shop for traders, yield farmers, and NFT collectors across the DeFi ecosystem. Below are our key aspirations:
- 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 addition, we also have a highly motivated and experienced team to execute our roadmap. We are certain we are equipped with the skillset to take this project forward and that we can consistently build new products and features that will eventually set us apart from other players in the market.
If you haven’t got a chance to check out the vision & roadmap section of our docs, I’d encourage you to do so here.
Question 3:
There are tons of “swap platform” tokens competing for their places in the current market. How can LatteSwap face such competition?
Answer:
LatteSwap is a unique type of DEX — I don’t think anyone else on the market have NFT integrated functionalities as their core value proposition like we do. Most of the existing players incorporate NFT concepts as an afterthought. However, that’s not the only reason why we believe we can stand out among the competition. Let me list out some other key reasons below:
1. 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 the best capital efficiency to our users. Some of the things that we have implemented/planned 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, using the same amount of capital.
1B: LatteSwap’s stablecoin: We will allow users to use their LP position as collateral to take out loans — i.e., minting our own. 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. Once all the details are finalized, we will make an official announcement through our twitter.
2. The 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. Our protocol security We are confident that we are one of the safest protocols on BSC, and this is all because of all the security measures we’ve put in place:
3A: Audit reports — Since security is of our highest priority, we made sure to get 2 audit reports from Peckshield and Inspex even before the launch of the protocol. To remain consistent, we will also get an audit on new feature releases. In fact, we’ve just added another audit report from Watchpug for our LATTEv2 contract. You can find all of our audit reports here.
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.
3C: Timelock — We also have a 24-hour timelock on our contracts. 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 4:
What has LatteSwap accomplished to date and what are the current use cases of the LATTE token?
Answer:
I think we’ve achieved quite a few milestones since we first launched on September 19th. Some of our recent accomplishments that I’d like to highlight include:
- OG NFTs being sold out
- The launch of DripBar — our partnership program (2 pools currently live)
- Centralized exchange listing (Hotbit & Poloniex — looking to add more)
- Launch of LATTE auto-compound single asset staking vault
However, we realize that this is just the start and there is still a long way to go, as there are many features/products in the pipeline waiting to be launched, so please stay tuned for our future developments!
As for the utilities of LATTE, there are currently 3 primary use-cases.
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.
Find more details about our buyback & burn program here.
2. Participate in the governance process LATTE is LatteSwap’s governance token.
LATTE is a 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.
3. Earn rewards in partner protocol tokens
One of LatteSwap’s key feature is our DripBar, where Baristas will be able to stake their BEAN tokens to receive rewards in the form of our partner protocol’s tokens. You can only receive BEAN tokens from staking LATTE in the LATTE single asset staking vault, as the protocol will mint you BEAN for every LATTE you have staked in the vault as a receipt. By allowing BEAN to be staked at DripBar, users can keep their LATTE staked in the single asset staking vault, allowing them to earn yields in both LATTE and our partner’s tokens simultaneously.
To learn more about DripBar, please visit this link.
Question 5:
Compared with “traditional” centralized exchange, what are the requirements for LatteSwap (or similar decentralized platforms) to provide a similar or even greater user experience and security? Do you think can both centralized and decentralized platforms coexist, learn from each other and grow together in the blockchain industry?
Answer:
A decentralized exchange and a centralized exchange require different kinds of security measures. Since DEXes are run on-chain, we are more prone to hacks/exploits. However, I’ve already discussed the three layers of security that we have (audits, bug bounty, timelock) above, so I’ll focus the answer of this question on user-experience and how CEX and DEX can co-exist.
In terms of user-experience, a DEX may be unfamiliar to many when compared to a CEX, especially to newcomers to DeFi who are more used to the order book model. However, our product team places quite a high significance on ensuring a great user experience. If you’ve had a chance to use some of our features, you will realize that we have quite a unique UI/UX.
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 users. 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.
In terms of DEX and CEX co-existing, I don’t think one will completely replace the other, as there are some key differences between the two. For example, CEXes is more suited for traders and speculators, as they are not run on-chain. With that said, there is no block verification needed to process a transaction for CEXes, allowing for higher agility when executing a trade as well as lower execution cost. Especially in cryptocurrency where assets are highly volatile, a few seconds delay may make a substantial difference.
On the other hand, DEXes offer multiple functionalities not offered by CEXes. For example, as most DEXes run on the XYK model, they create yield farming opportunities for yield farmers. Users can provide liquidity in exchange for yields from trading fees and incentive rewards.
In addition, DEXes also act as a foundational layer for DeFi. If you look at some of the biggest protocols on BSC (such as Alpaca Finance or Beefy Finance), they may not even exist today if it weren’t for DEXes such as PancakeSwap and others. So to answer your question, I think DEXes and CEXes will co-exist, at least for the foreseeable future.
Question 6:
How about the LatteSwap current progress on the road map and future plan of further implementation?
Answer:
If you haven’t got a chance to check out our roadmap article we released a couple weeks ago, I’d encourage you to do so. It highlights our plan in the medium term (6 months).
Here’s the link.
But if you don’t have time to read the article, there are a few things that I’d like to highlight. There are three main key features that we plan to launch in the next six months. These features include:
- LatteSwap’s own stable coins & our lending feature
- LatteSwap’s own NFT marketplace
- Stablecoin swap AMM
In terms of the smaller features, we have already launched the LATTE auto-compounding single asset staking vault last week. We’ve also just launched DripBar a couple of weeks ago.
In addition, we plan to launch another undisclosed feature that will provide another earning opportunity to our users and add another source of revenue to weekly LATTE burn in a few weeks. I think the community will love the feature, so please stay tuned for the official announcement from us!
Question 7:
Time flies and we are heading to the last question. Where can Poloniex users learn more about LatteSwap (LATTE)?
Answer:
If you’d like to learn more about LatteSwap, I’d suggest you check out our Docs and our Medium.
Docs: https://docs.latteswap.com/latteswap/
Medium: https://medium.com/latteswap
If you’d like to join the community you can join our official Telegram group: https://t.me/LatteSwapOG
For the latest updates, please follow our twitter account and join our telegram announcement channel:
Twitter: https://twitter.com/latteswapOG
Telegram Announcement: https://t.me/LatteSwapOGAnnouncements
For other useful links please see here.
Section 2— Live Questions from TG group
Question 8:
Your project has great features. There must be an experienced team behind. Can you tell some about your team and their experiences in the market?
Answer:
Of course! Our team is anonymous, but you can rest assured that LatteSwap is run by a team of experienced professionals. Let me share a brief introduction of the team to you.
Coco Coke — He is the lead for our development team. Coco coke has been in the industry since 2017 as a smart contract developer. He is also well-versed in DeFi
Mint Chocolate — Mint Chocolate co-leads our development team with Coco Coke. He has also been in the industry since 2017 and has been developing smart contracts ever since.
E. Gray Frappucino — He leads the product design for LatteSwap. He has worked at a large tech company as a product owner and is leveraging his experience to help us develop the best user experience for our users.
Mocha Joe — Mocha Joe leads all of our content initiatives. He was the one who designed the NFTs and their backstories.
Question 9:
Audit reports play a big role in giving the community confidence to invest in projects. Can you share with us whether LatteSwap has been audited and who were the auditors?
Answer:
Yes! Audits are very important. So far, we’ve received three audit reports from Inspex, Peckshield, and WatchPug.
Question 10:
How old is Your project? Could you please share with us your plan in the immediate term?
Answer:
Our project is about 5 weeks old.
In terms of the roadmap, we’re actually considering changing our short term plan a bit. Initially, we wanted to release our NFT Marketplace this quarter, but after an internal discussion and re-evaluation of the current situation, the team believes that it would be better for the project and the community if we prioritize our stablecoin & lending feature first.
Nothing is yet finalized and we have yet to make an official announcement on our social channels, so please stay tuned!
If you’d like to check out our current roadmap, please visit this link.
Question 11:
LatteSwap is a very interesting name. Can you share with us what inspired you to name your project after coffee?
Answer:
We are coffee connoisseurs! 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!
Question 12:
Can you please tell us more about your partner projects? Who are they?
Answer:
Audit Partners: Peckshield, Inspex, WatchPug
Partner Projects: Alpaca Finance, XBN Finance, Lucky Lion.
We’re consistently looking for more partners to join our DripBar program, our official token listing program, and are currently in discussion with multiple other projects. Once more partnerships are finalized, we will make the official announcement to our community. If you are interested or know any projects that would be interested, please ask them to reach out directly to me at matcha.latte@latteswap.com.
