This week we had the pleasure of hosting OpenSwap on our Telegram channel for a quick AMA with their founder, Bruce Chau, in preparation for the exciting new integration brewing between our two platforms.
If you’ve missed it, be sure to catch up with what was asked and answered during the event below:
Please introduce yourself to the community and tell us how you got started in crypto?
Bruce: Sure thing!
My name is Bruce, I am a core team member and founder of OpenSwap. A recovering enterprise dev, enlightened by blockchain in 2018, and never looked back.
At the core, our team’s strength is technology, however, we’ve been aiming to build up a community of talent that crosses boundaries of technology, finance, marketing, and more through the many partnerships we have developed and continue to #buidl.
We hope to attract more blockchain developers and technology contributors to our team through participation events such as hackathons that ultimately build up the DeFi community.
Please tell us more about OpenSwap. What was one of the main objectives in starting the protocol?
Bruce: Yes, great question!
Speaking of rapid changes to the crypto space, we realized that as the DeFi universe continues to expand, on-chain liquidity becomes increasingly scattered and less efficient across multiple chains and the situation is poised to get increasingly worse as new chains emerge with individual DEXs on each chain. The main objective of OpenSwap is to solve these challenges!
We at OpenSwap position ourselves as every crypto project’s BFF by providing a set of core technologies to empower teams to establish sustained token health and attract liquidity from different blockchains. We hope our technologies can enable token projects to focus on what they do best - #BUIDL!
Currently, these are our DApp’s core technologies:
OpenSwap Bridge, a single asset cross chain bridge that offers more efficient cross chain swapping of chain-native digital assets through the use of our single-asset vaults in a decentralized manner.
Hybrid Smart Router, a set of smart contracts that identify potential swap paths leveraging both AMM pool smart contracts and liquidity queue contracts, helping swappers identify the most cost-efficient routing based on the availability of liquidity queues and AMM pools.
And Liquidity Queue, an alternative method to the traditional AMM mechanism that can provide users the ability to make on-chain swaps at zero slippage. The Liquidity Queue technology can also be used for a variety of DeFi purposes such as conducting on-chain private sales, offering on-chain guaranteed token buyback, token flash sales, and much more!
How does OpenSwap differentiate itself from the other bridges currently available?
Bruce: So currently in the cross chain environment, the most typical cross chain bridging approaches being utilized are Lock and Mint Synthetics and Crosschain Liquidity Pair Pool.
The ‘Lock and Mint Synthetics’ is a methodology embraced by the likes of Binance Bridge and Multichain (Anyswap), where native tokens are given to a centralized custodian who in turn mints a synthetic version of the token on a target blockchain. The decentralized version requires usage of decentralized custodians that are properly incentivized to behave appropriately. Majority of cross chain bridges are of the Lock and Mint variety, the difference mostly lies on how true decentralization is actually achieved, and also the bridge operators’ approach on key security.
Now, the “Cross Chain Liquidity Pair Pool” is a method experimented and led by the likes of THORChain, whereby liquidity providers stake pairs consisting of a native token with THORChain’s RUNE token into pools, and THORChain routes swaps leveraging the common RUNE token to facilitate cross chain swaps. With this approach, swappers are able to receive native tokens on the target chain instead of synthetics.
With OpenSwap, we do things differently to the bridge types listed above.
OpenSwap Bridge is introduced as a solution that offers more efficient cross chain swapping of chain-native assets through the usage of single asset vaults and a basket of decentralized mechanisms. And with the incorporation of other OpenSwap technologies like liquidity queue and hybrid smart router, Open Interchain Protocol will form a fully transparent and capital-efficient end-to-end cross chain swapping solution.
Could you please expand a bit on your tokenomics and the utility of the OSWAP token?
Bruce: Sure thing.
$OSWAP token is the governance token of the OpenSwap ecosystem. The core purposes of OSWAP tokens are to:
🚀 Incentivize usage of the OpenSwap platform
🚀 Encourage users to get involved in governance
🚀 Enable a wide variety of platform privileges surrounding our core technologies and offerings
Specific to the OpenSwap Bridge, upon mainnet release, users who wish to utilize OpenSwap Bridge as their cross chain solution will need OSWAP tokens as transaction fees for their cross chain activities. Furthermore, for people who are holding Bridge Troll NFTs, if they wish to become node validators for the OpenSwap bridge, they would need to stake OSWAP tokens as bond.
Aside from these, there are also many reasons to hold OSWAP surrounding other OpenSwap core offerings such as setting up the different types of liquidity queues for different purposes, as well as for users who want to participate in OpenSwap NFT loyalty program, they’d need OSWAP for staking.
Now, regarding $OSWAP’s tokenomics, OpenSwap has designed its tokenomics to support a sustainable long-term project ensuring that:
💥 95% of all tokens will be subjected to locking and gradual vesting schedules
💥 Over 70% of all tokens will be subjected to vesting schedules of over 24 months
💥 Core team allocations and related tokens are subjected to a long-term vesting period to ensure community member confidence
What steps have you taken to enhance the security of your protocol?
Bruce: Ah yes, keeping our users’ funds #SAFU is of utmost importance to the OpenSwap team!
OpenSwap establishes trust with the community through 3rd party audited smart contracts and has protocol parameters transparently managed through our governance portal since our project launched.
So even though OpenSwap is still in beta, we want our contracts to be as solid as possible. This is why our core contracts are audited by authoritative third parties like CertiK and PeckShield, leading blockchain security audit firms that combine manual testing, static analysis, and formal verification for the most robust smart contract security in the industry.
Furthermore, OpenSwap has partnered with top tier DeFi projects in the insurance niche to cover our users’ funds. In case of payout, the coverage amount will be paid directly to our team, and we will distribute it to affected users. Currently the coverage includes contract vulnerabilities for core technologies deployed on Binance Smart Chain, and as additional core technologies such as the #OpenSwap Bridge gets deployed on mainnet, we will continue looking into insurance options so as to safeguard 🛡 our users’ funds.
What are some of the motivations behind integrating with Snowball?
Bruce: See we’re entering the highlight of tonight!
We have recently kickstarted the testnet phase of OpenSwap Bridge by deploying on Kovan, Fuji C-Chain, and BSC testnet. And in light of launching our bridge on testnet, OpenSwap had introduced a partnership campaign called - the Bridge Founders Program — where we would identify and invite hand-picked projects that we deem solid to become part of the first cohort in integrating with OpenSwap Bridge upon our launch on mainnet!
We invited #Snowball ❄️ to participate in the Bridge Founders program because it is one of the most all-rounded platforms on AVAX with a variety of offerings and benefits that are unique-to-DeFi. With such a wide range of offerings, we expect exponential growth to $SNOB token utilities, a key area that we believe the OpenSwap Bridge can complement through opening easy access points for new users and additional liquidity from different chains such as BSC, Ethereum, Polygon, and Fantom.
Furthermore, we realized that the Snowball team is committed to keeping users #SAFU with contracts audited by authoritative third parties . With this kind of setup, we strongly believe Snowball can help support us with our future farming and staking initiatives on Avalanche.
For OpenSwap, the inclusion of $SNOB token to our bridge will help to enhance liquidity synergies for our bridge during the mainnet release, and we anticipate Snowball team to be an excellent strategic partner on Avalanche in addition to our existing strong network of strategic backers from BSC side such as Coin98 and Impossible Finance. #WAGMI
Do you have any upcoming releases that you may want to share with the community?
Bruce: Our team had recently launched $OSWAP token along with the Hybrid Smart Router and Liquidity Queue smart contracts onto Avalanche mainnet. From this, we will soon launch our bridge vaults for $OSWAP enabling our community to contribute to show support for our bridges and earn with no impermanent loss.
Matter of fact, we will be launching our Bridge Vaults Fixed Staking initiative towards the closing of this OpenSwap x Snowball AMA event! 🔥
So for those who are interested in farming our bridge vaults, feel free to connect to the OpenSwap DApp and stake some $OSWAP for a share of the lucrative rewards. 🤑
Our team continues to work on our Testnet feature releases with introductions of ANY-ANY cross chain swaps (a feature we aim to roll out at the end of this week), bridge troll NFT delegation and bridge troll bond staking (just to name a few). During this time, we will engage in ongoing audits as we prepare for the mainnet release in the summertime.
This is going to be an exciting year for OpenSwap, initial feedback on our testnet cross chains swap have been very encouraging and we hope that our community will continue to provide feedback during our testnet phase so that we can provide the best cross-chain swap experience out there! For those who are interested, be sure to try swapping BSC 🔸 USDT for $SNOB (AVAX 🔺).
Community Questions:
“What exactly are Liquidity Queues and how do they guarantee Zero Slippage?”
Bruce: So one of our Liquidity Queue types - Spot Price Queue is the key to enabling DeFi swappers to enjoy Zero Slippage on-chain swaps. Spot Price Queue will enable trades to occur at spot-market prices obtained from decentralized oracles. This queue type uses a secure adaptor protocol that guards against many of the shortcomings of using oracles. The secure adaptor protocol includes a series of customizable circuit breakers that ensure that liquidity providers are protected against front-running or recent security exploits as trades that fail any of the circuit breakers will not be carried out.
Spot Price Queues are designed for token pairs that have a well-established off-chain spot market price provided by oracles. Instead of using the oracles directly, OpenSwap has created a secure adaptor protocol to leverage oracle pricing in a controlled manner providing traders with the security of layered circuit breakers that guard against sudden price fluctuations, front-running, and compromised smart contracts.
“Will Snowball integrate with OpenSwap’s Cross Chain Bridge?”
Bruce: We most definitely anticipate Snowball to integrate with the OpenSwap Single Asset Crosschain Bridge! Through doing so, OpenSwap will be able to help $SNOB tap into additional liquidity from BSC, ETH, and in the future other EVM compatible chains such Fantom and Polygon!
“Liquidity is quite important for cross-chain swaps. Any incentive plans?”
Bruce: Most definitely! OpenSwap has been a community-focused project from the get-go, and we strive to continue doing so on every chain we extend to. As such, at the end of this OpenSwap x Snowball AMA, we wish to introduce everyone to a brand new fixed staking (single asset) campaign powered by the newly installed Single Asset Bridge Vault on OpenSwap Avalanche!
Furthermore, for those who are interested in earning bridge fees on the regular, you can stake $OSWAP in our Troll Camp portal and mint a Bridge Troll NFT. These NFT would allow users to serve as node validators (bridge trolls) for the OpenSwap Bridge, and by helping us validate cross chain transactions, be compensated with a portion of the fees collected! 🤑
“How can the community help bring OpenSwap x Snowball to Avalanche’s front page?”
Bruce: Ah yes, having a supportive community is the key to success for any DeFi projects. One of the easiest and most direct ways community members can help bring OpenSwap x Snowball to the frontpage is to participate in our testnet campaign and advocate it! We strongly encourage supporters from both community to hop on to the OpenSwap DApp on testnet, try making cross chain swaps with the $SNOB token, and let us know areas to improve on, as well as telling your friends across socials about the seamless OpenSwap cross chain bridging experience.
“What is OpenSwap’s mission and how will the protocol create a positive impact using blockchain technology?”
Bruce: Again, our mission is to be the reliever of the many existing pain points in the DeFi space. As the DeFi universe continues to expand, on-chain liquidity becomes increasingly scattered and less efficient across multiple chains and the situation is poised to get increasingly worse as new chains emerge with individual DEXs on each chain.
OpenSwap is envisioned as a next generation DEX that is composed of a basket of self-service DeFi technologies that can be freely mixed and matched like Lego blocks and be structured for different needs and in different market conditions.
OpenSwap’s technologies can cater to all ends of the decentralized funnel, protecting swappers from what previously were thought of as “mandatory” on chain and cross chain problems, allowing users to have access to the best yield and incentives, and enabling projects to establish funding and sustained token health, giving project teams the freedom and bandwidth to focus on what they do best - #BUIDL!
“Will more blockchains be added to the current swapping bridges, or are there other new features in the works?”
Bruce: Yes we will! As indicated in our roadmap, our extension from BSC, ETH to AVAX is just the beginning to this on-chain liquidity revolution! We will continue to extend to other EVM chains such as Fantom, Polygon, and many more. We will also roll out other core technologies as the project continues to mature and develop, as well as experimenting with other creative ways to leverage on our current core technologies.
For example, we didn’t deep dive into our queues, and one of the things we see it evolving to is how we can help other projects with their liquidity. The queues, specifically booster queues allow projects to facilitate secondary private raises allowing teams to receive funding for a boost in new upcoming development they have planned and providing future upside to their backers. There’s so much more we want to do to support other BUIDlers and our bridge is only the beginning by offering projects the opportunity to attract investors from other chains!
“What is OpenSwap’s main target userbase, and what services are provided to them?”
Bruce: OpenSwap has been a community-focused project from the get-go, and we strive to continue doing so on every chain we extend to. As such, at the end of this OpenSwap x Snowball AMA, we wish to introduce everyone to a brand new fixed staking (single asset) campaign powered by the newly installed Single Asset Bridge Vault on OpenSwap Avalanche!
Furthermore, for those who are interested in earning bridge fees on the regular, you can stake $OSWAP in our Troll Camp portal and mint a Bridge Troll NFT. These NFT would allow users to serve as node validators (bridge trolls) for the OpenSwap Bridge, and by helping us validate cross chain transactions, be compensated with a portion of the fees collected! 🤑
Many thanks to Bruce and the OpenSwap team for this awesome AMA and the insightful answers provided to both our communities. Looking forward to a great and fruitful partnership!
About Snowball
Snowball Venture Studio is a community run DAO whose mission is to spur innovation in the DeFi ecosystem by providing resources and support to new projects and teams. Snowball Venture Studio has already launched or is supporting Snowball Earn, Snowball DeFi University, Axial, Teddy, Lava, and FiHub.
If your DeFi startup is looking for assistance with engineering, design, branding, marketing, or strategy, we would love to speak with you. Join the conversation in Discord or Telegram and stay up to date on our Twitter.
