Stakenet: Community AMA with Spiral
Thanks to everyone who submitted his questions, we tried to answer as many as we could! Special thanks to spiral again for Hosting this Twitter AMA!
What is Stakenet you might ask yourself? Stakenet is combining Layer 2 protocols (Lightning Network and Connext) to allow practically instant, feeless cross-chain swaps backed by the Stakenet blockchain and powered by its nodes. Furthermore, they are focused on enabling connectivity between Lightning Network, Masternode networks, and decentralized applications (dApps).
Q: How will you solve the liquidity problem? Will the necessary liquidity be provided at the first launch?
A: By using: AMM & ARB bots, implementing certain limits (in the beginning), and adding an in-wallet AMM tab (called Vortex). From there we will scale step by step (Prometheus).
Q: What will the liquidity be needed for? Won’t aggregation be live? Or are AMM Bots available?
A: Liquidity is needed for Channel rentals and the orderbook. Aggregation and AMM bot will be live, but not the in-built AMM tab for every user. This feature is planned to be added in early 2022.
Q: What is the plan for adding new coins, especially erc20? Is it complicated and how fast can it be done?
A: Team, devs, and closed beta testers currently decide which tokens to add. At this stage, it’s not easy yet, but the more pairs we add, the faster it will become.
Q: How is the 10% of fees going to be used exactly? It was supposed to be coinburn, but plans are changing afaik. Is it decided yet, or still an open question?
A: At the moment we are looking into moving the fees to protocol-owned liquidity, but this isn’t final yet. Most likely this will be decided by a masternode voting.
Q: How many users can the dex handle at launch?
A: Hopefully all users of course. However, we plan to scale and become more resilient throughout 2022.
Q: Will there be a mobile Wallet when dex is opened?
A: No, this is not planned.
Q: What pairs will be available upon the December 10th (soft) launch? What pairs are the highest priority following the launch, to be added at a later date?
A: At launch: XSN/BTC and ETH/BTC. After launch, we will most likely add ETH/USDC and BTC/WBTC.
Q: Will everyone be able to add liquidity upon the December 10th launch, or only closed beta testers? Do we know what APY will look like? Will there be time lock functions that increase returns, sort of how COMFY is planning?
A: Yes, you can provide limit orders and receive the fees back by doing this. We will add the AMM tab in the wallet for everyone after the release, then we can estimate the APY. No lockup feature is planned at the moment.
Q: Is the Stakenet Dex at the release only running on one server? Is it very complicated to run it on the masternodes? Are there some expectations (some months, years..) for entering the hydra stage?
A: We are entering stage 2, Prometheus, right now and don’t have any ETA for Hydra as of yet. In Prometheus, we will add more servers, more hubs, and more liquidity.
Q: Will there be support for ARM M1 MacBooks for the upcoming Dex?
A: This has to be determined, but we already have a macOS build for the DEX.
Q: Why switch to the hydra chain? What are the advantages? Why isn’t this version continuing?
A: The biggest benefits are being EVM compatible, being easy to use in popular wallets like Metamask, being able to develop much faster, and being able to plug into DeFi via smart contracts. The vision hasn’t changed at all.
Q: Does the team work in the background for partnerships? And is there any partnership that has been kept secret until this stage?
A: Yes, we are working on partnerships.
Q: Will you be partnering with any of the fiat ramps, considering how they are regulatory compliant and thus in opposition to Staknet’s fully decentralized principle? Will there be an option of a fiat ramp?
A: No, at the moment there is no fiat-ramp planned. But that’s one thing we will look into in 2022.
Q: With Hydra, are there any plans/possibilities to change the current tokenomics model, for example via vote?
A: Yes, this should be possible.
Q: I saw the BNB logo in the new welcome screen UI, will that be the next chain to be integrated? When LINK pair?
A: After adding more ERC-20 tokens, BSC is most likely to be the next coin/smart -chain. No ETA for LINK pair yet.
Q: What is the team most excited about after dex release?
A: Chainswap, Web DEX, on-chain governance with UI, and some other surprises we can’t announce yet.
Q: How much of D is the DEX in the beginning, which means specifically, how many VPS are used to keep it running, and what will be the exact steps until full decentralization?
A: At launch the HUB network will start small, with small restrictions in place. This is for final testing and to ensure security. DEX HUBs act as routers, so it is not possible to tamper or steal funds even if only 1 Hub exists. Funds remain in users’ wallets at all times.
Q: Starting the DEX without being fully decentralized, leaves me under the impression that the core developer team coming into the fireline of SEC and the likes are a major risk factor the first time after the initial launch. How is this risk being perceived by the team?
A: Stakenet Foundation.
Q: What other major risks for the project (apart from a deadly car accident), that investors should know about? Since we are quite active and in terms of the crypto well-educated community (thx, I learned a lot!): How could the community support the project even better?
A: Spread the knowledge about off-chain technology, report bugs to the team, and by being kind when helping each other!
Q: Another Layer Zero is currently making headway into the multichain-liquidity complex, financed by big players, CEXes, etc. Are there any ideas and/or plans to use this protocol or one of several similar developments?
A: No, not planned for now. Lightning, Connext, and Arbitrum seem to offer good scalability, for now, also they are already used by many services/exchanges/projects.
Q: In the future. Is x9 looking to expand its task force? If so, what areas are the team looking to strengthen?
A: Yes, for example, we have added one smart-chain dev in the past weeks to be ready for becoming EVM compatible.
Q: CEX’s require lots of maintenance. For ex: If a listed coin updates its protocol, the CEX needs to update said pair. Does the dex have the same workload and how does the team plan to approach this when scaling the dex?
A: The more users that are using the DEX, the more bugs we will find. So after a certain time, it should take less and fewer resources to keep the DEX running; but if a coin updates its protocol, we would have to implement these changes too of course.
Q: Will the Stakenet name change? Will there be a new roadmap for the post-December 10th?
A: Rebranding is TBD. We just published the big roadmap update a few days ago and will update it again after the DEX release.
Q: How long until the X9 team reaches the point where the network and its development are out of centralized control?
A: The network is already now decentralized, X9 can’t prohibit any transactions of the Stakenet blockchain.
Q: Do you have any plan about avoiding flash loan attacks on the AMM side of XSN DEX? The price data will be self-provided by XSN DEX or AMM can use an oracle to avoid it?
A: We don’t do any loans/lending, therefore, we can’t run into such issues. The USD prices are from Coingecko API, but the price in the DEX will be made by the users of the DEX. Therefore, we don’t need oracles.
Q: What is the estimated release of the web DEX? When will other lightning protocols like Litecoin be publicly available? Is there a roadmap for privacy coins such as Monero?
A: It should be released in 2022 — at this stage, we can’t be more specific yet. Litecoin will be available in the wallet at launch and added to the DEX shortly after. No roadmap for Monero at this stage (yet).
Q: Will there be single-asset liquidity providing for the DEX? Ideally, I’d like to see a feature where I can just plug in a Stablecoin and get good rewards for that.
A: Yes, that’s planned to be added with the in-wallet Vortex tab (expected early 2022)!
Q: I’m not sure I remember the costs for HUBs being mentioned. Do we know how much those will be? Will we be sticking with past reports for returns on hosting them?
A: Read about the costs of running a HUB here: https://medium.com/stakenet/hydra-dex-network-upgrade-proposal-4b00a3a3fb8
Q: Will there be a cloud hosting service when it comes to HUBs?
A: Not planned to my knowledge, but it is already planned for Hydra nodes.
Q: What does the team plan to do to ensure the scalability of the DEX?
A: In 2022 we will be adding multi hubs and expanding the network (Prometheus stage). Multi Hubs allow redundancy for uptime & greater liquidity.
Q: Currently, as far as I can tell, hosting the DEX on masternodes is an option for the masternode holder. Is this expected to change in the future? If futures trading was to be implemented, can we expect a similar option to host the DEX without hosting futures?
A: Yes, only masternodes / Hydra nodes will host the DEX. We don’t have plans for futures trading yet.
Q: How will CCPoS work with XSN being on the ETH network? Is staking in L2 possible/planned in the future?
A: Yes, staking nodes are planned. CCPoS (Cross Chain Proof of Stake) doesn’t change much, as you can stake with Hydra nodes.
Q: About the Stakenet DEX: Browser-node extension….is Stakenet going to have its own or use Metamask to accomplish this?
A: We will be using Metamask for the WebDEX; also the Connext browser node has now been finished.
Q: Are there going to be any changes in how masternodes are operated and managed after the chain swap? With the core wallet’s caching/display issues and fiddling with files, the process could use some streamlining.
A: There will be some changes, but for the end-user, there shouldn’t be too many changes on how to operate the Nodes. As we are aiming to become EVM compatible, it should become way easier to set up a node.
Q: Is there any estimate on how long TPoS will remain? There were some discussions about it being discontinued.
A: I can’t give you an ETA about this yet, as it depends on when the Chainswap will be totally completed.
Q: Will there be centralized documentation in place and a cleanup project for all the “outdated” documentation floating around?
A: Once we are moving to Arbitrum, we will make new guides/docs for Stakenet v3. We are also working at the moment to update our Resources page at stakenet.io.
Q: Will lightning tokens/assets like with RGB be tradeable on the DEX and if yes, how long will it take until this is possible/what obstacles are needed to overcome this?
A: Not planned for now, but if they are compatible with LND, we will definitely look into this. These assets will need to be live and gain some traction first.
Q: Will hydra being an EVM have gas issues like eth once it gains popularity or will hydra smart chain only host the dex?
A: We will add Arbitrum and Connext to offer different scaling solutions and prevent this problem. We are also looking into other scaling solutions.
Q: Are there plans to implement/add XSN services/software into Umbrel and its AppStore?
A: Not planned for now, but it’s already on the list to be checked if this will be possible.
Q: How does the team feel. Some testimonials could be interesting. After all, some have been working for years. Do they feel excitement for things to come and how did they experience the journey so far?
A: I (JoPark) am definitely very excited, we have spent thousands of hours on research, testing, and debugging, so I’m glad we can finally show it to the whole world! With all the planned releases in the near future, Stakenet will offer some very nice services to users.
Q: How do you think will impact XSN to the Blockchain environment?
A: It will solve a lot of cross-chain and scalability issues, so once it has some traction it will have a big impact to the Blockchain environment.
Q: Will staking be available from the MCLW, or will it still need to be done from Core Wallet? Are there any plans to make staking easier?
A: We will try to move as much as possible to use MCLW and/or Metamask and make it therefore much easier.
Q: What features/development will you focus on after the dex open beta release?
A: Vortex tab (in wallet build automated market maker) and finishing the Prometheus stage. For more features and info take a look at: https://stakenet.io/roadmap/.
Q: Does the development of the (future) web dex also include the web wallet? Also related: What is your strategy to make interacting with the Stakenet ecosystem more accessible?
A: Web dex will most likely also include a web wallet. Moving to EVM compatibility will make us much more accessible.
Q: How many teams are working in parallel for each of your “in development” features? (Hydra chain, Web UI, mobile UI, MCLW, research, etc.)
A: 5 teams (wallet, smart contract, research, UI, and some individual devs).
Q: What have been the biggest bottlenecks to development, up until the dex open beta release?
A: Finding and implementing a proper scaling solution for ETH and ERC-20 tokens.
Q: If one were to develop a lightning and connext ready network, what hardships would you expect them to face?
A: Now that we have shown that it’s possible to connect both of these networks, it should be easier than being a pioneer project of course. But it still will take some time to do this.
Q: Currently the code is closed-source, will it be open-source in the future?
A: It will most likely get open-sourced in the later future.
Q: More and more games work with crypto, can Stakenet DEX offer an extra value in this?
A: Maybe as a cheap and fast backend to route and manage payments, but this is just an idea at this stage.
Q: QR codes, will this be added in the wallet, or is this already in the wallet?
A: It is not added yet, but it is in the backlog to be implemented into the wallet.
Q: Are there any plans to raise the minimum collateral required to operate a masternode?
A: No, the necessary collateral will stay at 15000 XSN.
Q: Who is the lucky winner who will join the closed beta this weekend?
A: It’s “StakeLord Tom of the Bowl”, congrats! Thanks to everyone again who has submitted the questions! Special thanks to Spiral again!
If you want to learn more about Stakenet, check out these links: