The main questions in the AMA:
1️. What is Vaultka?
- Vaultka is positioned as the catalyst of perpetual DEXs. Offering One-Click strategies for LP tokens, building on top of multiple perpetual DEXs on Arbitrum.
- Our Current strategies are Market-Neutral and Leveraged.
2. Why do we build Vaultka?
- We are a team of Arbitrum Maxi.
- We want to support and contribute to the growth of the Arbitrum ecosystem.
- We want to build a one-stop platform that aggregates all perp dex LP and provides optimized strategies.
3. What are the reasons behind choosing the Perpetual DEXs Market?
- Our team has a strong belief in perpetual DEXs and we discovered the potential in the yield market.
- Over 80% of the volume of perp dex trading on Arbitrum.
4. What are our products?
- Vaultka aims to provide LP strategies to suit users’ risk preferences.
- Our $GLP Market-Neutral strategy is live and the cap has been reached. (We will probably increase the capacity level very soon!!)
- Leverage strategies for $VLP @vela_exchange and $gDAI @GainsNetwork_io are coming very soon!
- We aim to provide at least 1 optimized strategy for every major perpetual DEXs on @arbitrum before the end of this year.
5. What’s the Vaultka’s uniqueness?
- We offer a variety of strategies (Market-Neutral & Leveraged currently), providing solutions to fulfill different users’ preferences.
- Charge low-performance fees.
- We Offer an aggregated platform for all perpetual DEXs LP.
- We introduce our new V-safety Score.
6. What’s the team’s perspective on the perpetual DEX future outlook?
- We have a strong conviction in on-chain trading platforms and believe that there’s a huge potential in Perpetual DEXs
- Synthetics will be more prevalent.
- Price discovery and risk control also play a huge role.
7. What’s the upcoming plan?
- We are about to complete our private seed round
- Planning to launch an LP index in the future
- Aggregate Perp Dex Token
- We focused on building a strong and engaged community of users and supporters (we will definitely reward our early users!).
The Full Transcript of AMA
[00:01:59.500] — Eli
Hello.
[00:02:02.260] — Jeffrey
Hey, how’s it going? Can you guys hear me?
[00:02:11.140] — Eli
Loud and clear. Cool.
[00:02:14.410] — Jeffrey
Yeah, we’re just waiting for Matt to come up. Requested.
[00:02:51.070] — Eli
Hey Matt.
[00:02:52.440] — Matthew
Hey Jeffrey. How are you?
[00:02:54.930] — Jeffrey
Pretty good. Are we waiting on anybody else?
[00:02:58.800] — Matthew
Yeah, I think Eric is coming. Wait a second. Eric Chung. He just requested to speak.
[00:03:13.510] — Jeffrey
Okay. Yeah, I see him.
[00:03:28.720] — Eric
Hey man, how are you? Nice to be here.
[00:03:38.380] — Eli
Cool. Yeah. So we have everybody here. Eli, do you want to kick things off?
[00:03:44.780] — Eli
Yeah, sounds great. Thanks everyone for joining AMA with Vaultka here. And we have Truro as your guest host and Arbitrum contributor.
[00:03:56.800] — Jeffrey
Sorry. Thanks Eli. And to get started, can you guys give us the background of what you guys do at vaultka and how do you guys get started in web 3?
[00:04:10.520] — Matthew
Okay, cool. Maybe I can start first. So hi everyone, I’m Matthew, I am co founder of vaultka and I love investing. And I have been working for certain hedge funds for crypto portfolio management. And I start my crypto world because I love the pace in the crypto world. I love the fast pace of the crypto world. Everything is changing every day and I love exploring some new stocks. And basically I am a DeFi guy. I enjoy playing around with different protocols and exploring yield farming opportunities. And in vaultka I’m mainly involved in strategy, planning and execution. Nice to be here.
[00:05:00.420] — Eric
Yeah. Hi everyone, I’m Eric. I’m the BD lead of Vaultka and I pumped into Blockchain World in 2021 because of the price of Bitcoin and Ethereum. But I start to get interested in the Blockchain technologies such as consensus, smart contract and et cetera. So I do some trading positions as well as investment positions in Blockchain. So after all the experience, I have the urge to contribute your projects. namely, Vaultka and I believe there’s a lot of opportunities in Vaultka. Yeah, and nice to be here.
[00:05:45.140] — Jeffrey
Yeah, thanks for coming up. And to get started, can you guys give us an introduction of what is Vaultka and what is the overall mission you guys have?
[00:05:59.400] — Matthew
Okay, cool. Maybe I can take this one. So Vaultka repositioned ourselves as a catalyst of decentralized perpetual exchange on Arbitrum. So perpetual exchange basically allow traders to speculate on the price of an asset without actually holding the asset. So it is a very popular way of trading in the crypto world and it has become increasingly popular in recent years. And Vaultka provides one click strategies for LP tokens, making it easier for users to manage their LP tokens and to boost their reward. So basically there are currently two types of strategies that Vaultka offer, which is market neutral and leverage strategies. The market neutral strategy allows traders to take a neutral position in the market, meaning that they are not betting on the price of an asset going up or down, while the leverage strategy allows traders to amplify their gains by using leverage. So this is a very general introduction of Vaultka, and we may discuss the mechanism further in the later part of this AMA. So for the objective for why we are building Vaultka is that our team is actually full of Arbitrum Maxi and we wanted to support the growth of the Arbitrum ecosystem.
[00:07:36.480] — Matthew
And we believe that all projects on Arbitrum are not competitors, but friends. And we want to contribute to the growth of this ecosystem. And our mission is to basically to build a platform that to aggregate all decentralized perpetual exchange LP on Arbitrum, providing like a one stop platform for decentralized perpetual exchange liquidity providers. And we want Vautlka to be the first platform built on top of multiple perpetual exchange. So by providing a one stop platform for the perpetual exchange liquidity providers, we hope to make it much more easier for users to access this exciting new market. So, in conclusion, Vaultka is a Defi project built on Arbitrum with a mission to support the growth of the Arbitrum ecosystem. And our platform provides a one stop shop for perpetual exchange liquidity providers, making easier for them to manage their LP position and maximize their profit. So our team is very excited to be a part of this growing ecosystem, and we look forward to seeing what the future holds for Vaultka and the wider defi community.
[00:09:06.820] — Jeffrey
Yeah, it’s definitely great to have you guys a part of the Arbitrum ecosystem. I’m sure you guys are building tons of exciting things here. And for those that aren’t aware of, what are some of the core products you guys offer on Vaultka?
[00:09:28.840] — Eric
Yeah, I think I can take that. So currently we have two strategies. So the first one, as mentioned, like Matthew mentioned, is the market neutral strategies. Right now, we provide a GLP market neutral vault, meaning that as GLP consists of like 50% non stable coin underlying, such as bitcoin ethereum and other alt coins, and we aim to provide a delta neutral positions for our users. So.
[00:10:00.570] — Eric
In order to do so, we help the users to hedge the delta exposures of the bitcoin ethereum and other altcoins in corresponding like proportion to their GLP rating. And how do we do so? We have a lending vault which will be acting as agent to help the GLP neutral vault users to hedge their delta initial position. To hedge their GLP positions. And as for the delta neutral strategies, aside from GLP, we are having a lot of perpetual DEX such as MUX as well as others perpetual market in the pipeline. And the second product would be leverage strategies. So we understand that we aim to provide different risk appetites for our community. So some users prefer a safe play, some users prefer a bold play play. So by having a leverage strategies, currently we will be launching VLP 3X leverage very soon. And also we will have a GDAI leverage vault, also 3X for users in order to capture the high growth potential as well as the high trading fee and liquidation fee from different perpetual markets. So we aim to provide different risk appetite for our community.
[00:11:42.690] — Jeffrey
Yeah, and I’m wondering what are some of the reasons behind choosing a decentralized perpetual market?
[00:11:54.470] — Eric
Yeah, sure, I think I can take that as well. So, as Matthew have mentioned, our team have strong belief in perpetual DEXs. So our team confirm decentralized perpetual market. With the macro environment such as FTX, people want to have a self custodian exchange, meaning having a decentralized perpetual market is essential for traders. And our team believed that for other project teams currently are underestimating the potentials of different decentralized perpetual market. So we aim to capture the blue ocean market opportunity in the yield segment. So in the new segment, what perpetual DEXs is will be categorized will be a counterparty. So premium insurance and liquidity provider in different perpetual market are also acting as a counterparty. And we foresee that there’s lots of market opportunity in the decentralized professional market. And by providing different value added strategies such as market neutral strategies, leverage strategies to our users, it will definitely bring a more stable liquidity to the DPM, as well as bringing more value and tailor made strategies for our users. So currently there’s no team really specialized in doing strategies for different DPMs and our team strength is on tradfi DeFI and we are well familiar with the exchange mechanism, so we are well preceded to capture the opportunity of decentralized perpetual market.
[00:13:43.190] — Matthew
Yeah, I wanted to add more on that. Regarding what Eric just mentioned, I think one of the primary reasons that we chose perpetual exchange is that the lack of faith that people have in centralized exchange such as the FTX situation. So it brings us an opportunity for the decentralized perpetual exchange to increase their traction. And I think one more point I would add is that actually currently there is over 80% of the volume of the perpetual DEX trading occurs on Arbitrum. So this indicates that there is a quite significant demand for decentralized DEX and that Arbitrum is emerging as a leading chain for this type of trading. So we think that this is an opportunity for Vaultka to build some products on top of this to enjoy the market growth of decentralized DEX and also the growth of Arbitrum ecosystem. And so I think this all explained why we chose decentralized perpetual trends specifically on Arbitrum as our main direction.
[00:15:05.810] — Jeffrey
Yeah, there definitely has been an explosive growth in DeFi in the Arbitrum ecosystem. And I’m very curious, I’m wondering in terms of strategies you guys have the vodka and whiskey strategies, what are the main difference between those LP strategies?
[00:15:37.050] — Matthew
So you mean the difference between our strategies or what do you mean exactly?
[00:15:44.030] — Jeffrey
Yeah, I wanted to ask what are the difference between because you guys have different LP strategies, you guys have the vodka which is the GLP delta neutral strategy and the whiskey which is the MLP delta neutral strategy. So I’m wondering if you could explain what are the difference between those two?
[00:16:09.030] — Eric
Sure, I think I can take that. So, as I mentioned just now, we mainly provide two strategies. One is market neutral strategies and second one would be leveraged strategies. So we aim to name our products in different liquor name. So for the Vodka strategies it will be categorized as market neutral strategies. And as for the Whiskey strategies risky strategies it will categorize as a leverage strategies. So maybe I can also further explain the mechanism of how different products works. So for the Vodka strategy, which would be the GLP delta neutral strategies, we will hedge the GLP exposure by flash loan as well as on AAVE doing over-collateralizations. And how do we hedge it? By a lending vault providing part of their capital in order to hedge the delta neutral vault users delta completely. And as for the whiskey strategies which will be a leverage strategies for our VLP we will have a 3X leverage strategies which will also be like the capital, the additional capital will also be provided by the lending vault users and to support the leverage vault users strategies. Yes, that would be it.
[00:17:55.450] — Jeffrey
Yeah. And in terms of milestones, what are some things you guys have noticed so far on your protocol?
[00:18:06.080] — Matthew
You mean what milestone have we achieved so far?
[00:18:10.390] — Jeffrey
Yeah.
[00:18:12.320] — Matthew
Okay, so basically we have launched our first product which is GLP delta neutral. We are currently in a beta version of the first strategy and actually we have set a cap for this strategy and the capacity has been full right now. The cap is around 300K USDC and the cap is full right now. And our strategy is audited by a third party which is called Fortitude. And we understand that the importance of security and trust in the crypto space. So we are currently actively pending audit from few or audit from certain audit firms. And I think this audit will provide some added assurance to our investors that they can trust our platform and products. And other than the GLP market neutral strategy, you have integrate with other protocols and actively building on that which Eric have mentioned about, which is the VLP strategy, which is a leverage strategy. So at this point, the leverage strategy hasn’t launched yet, but the leverage strategy will be launched in a very short time. So please stay tuned with our social media and we will launch and we will provide the detail very soon.
[00:19:55.140] — Eric
Yeah, one of the things I want to add on top of our milestone would be having a lot of significant, important partnership with the Arbitrum ecosystem. So such as we have integrate with FactorDAO, we have integrate with Okx, we have integrate with almost all significant, decentralized perpetual market on the Arbitrum chain. So we are indeed like Arbitrum Maxi.
[00:20:22.840] — Jeffrey
Yeah, what I really love about the community is that everyone is so open to collaboration. And also in the DEFI ecosystem, you have projects just working together to innovate the whole entire DEFI space, which is great to see and I don’t really see that elsewhere besides on Arbitrum, which is really exciting. And yeah, in terms of uniqueness, how do you guys compare yourselves to other strategy based vaults? What are some things that makes you guys really unique compared to others?
[00:21:05.240] — Matthew
Okay, maybe I can take this one. So, in terms of the uniqueness, I think the first one is that Vaultka offers multiple LP strategies that allow users to choose from a range of investment options that align with their risk appetite. So these strategy are designed to be investable and adaptable so that users can actually adjust their investments as market conditions change. So for example, users who are comfortable with high risk investment may choose a more aggressive strategy, such as our 3X leverage strategy, while those who are more risk averse may offer a more conservative approach, such as the market neutral strategy. And the second part is that Vaultka one stop platform for all perpetual exchange LPs makes users to invest much more simpler and more user friendly. So basically, users can easily assess all of their LP strategies from one place in order to maximize their return while minimize their risk. Vaultka,the relatively low performance fee is also an attractive feature for users who are looking to maximize their returns. So Vaultka fee is significantly lower than many other strategy-based vaults, so it will have a significant impact on users overall investment returns.
[00:22:40.780] — Matthew
And finally, one point that I think we are quite unique is that we have developed a matrix called a fee safety score. So basically, this score provides a comprehensive evaluation of the safety of each strategy by considering multiple risk categories. So to determine the safety ratio of each strategy. So in terms of the factors that we adopt in this matrix such as the liquidity risk, the market risk and like the smart contract risk, et cetera. So we believe that by evaluating each of these categories users can gain a better understanding of the potential risk associated with a strategy and make more informed decisions about their investments. So I think the safety score is helping the user to realize the actual risk that they are facing while aims to provide a risk adjusted return for user to choose the strategies that suit them the most. So this score is updated regularly to reflect the changing market conditions and all the other factors that may affect the safety of an investment strategy. So we want this score to inform users in the most transparent.
[00:24:30.230] — Eric
Yeah, I want to add one point. On top of that I really agree with the Matthew V-safety score is really special compared to other new protocols as we come from a tradFi or a trader background. Most of us really understand the liquidity risk and other potential risk from different decentralized perpetual market and Vaultka safety score really provide visualize the risk to the users so that the users can choose their risk appetite accordingly. And second is that we really emphasize on security as Matthew have mentioned, we have really emphasized on safety like having audit with Fortitude which is an auditing firm, we are also having multiple auditing firm in the pipeline so we really focus on safety as well. So compared to other Vault strategies we have more emphasized on safety. And third, we also emphasize we are a team specialized in providing different strategies on different perpetual market. So we are more flexible, we are more reactive and we could bring the best and most timely strategies to our users compared to other yield protocols.
[00:25:50.850] — Jeffrey
Yeah, in terms of security, I feel like it’s really important to have that because especially with doing audits, you want to make sure that the code is good so that in case you find something small, you’re able to fix it before you launch something big like a product. So it’s really important to have that in mind just like having the small things done so that you guys don’t run into any issues later on which is great to have in mind. So that’s really exciting to hear. And from your perspective, how does the future of decentralized perpetual markets look like?
[00:26:35.390] — Eric
Sure, I think I can take that. So as we mentioned, our team have strong conviction in on-chain trading platforms so perpetual markets will be one of them. So perpetual DEX still have a huge room of potentials like in terms of market size, the growth, the growth rate and there’s lots of potentials in that. And our team are ready to capture the growth and the value from decentralized perpetual market. And in long run there will be different types of perpetual market will coexist such as AMM model RFQ model or order book model, those will be coexist, but it really boils down to what type of asset we are trading. So for blue chip tokens, I think order book market would be a more suitable way for them to trade. But for small cap tokens, AMM or RFQ model would be a better model for price discovery or even to balance up the supply demand side. So second point I want to mention is that I think synthetics trading will be more prevalent in the DeFi space in the future. But however, LP model will still play a very important role to serve as a liquidity buffer and to serve to resolve the supply demand imbalance for different perpetual markets.
[00:28:09.170] — Eric
So this LP model is still very important. As for the synthetics, I think there’s like three existing models, so the first one would be LP model such as GLP, so the pool takes on the PNL of traders and second one would be like synthetics platform, so the token takes on the PNL. So Gmx v2 synthetics would be like such implementation and third would be the gains one. So a V AMM model, which means no liquidity provider. So the insurance fund built on will be built to take on the PNL. So these are the three models of the synthetics and at the end of the day it really boils down to the utilization rate of the liquid like the capital as well as the underlying settlement. Moreover, the price discovery and the risk control also indeed plays a huge role in determining which type of exchange to use to trade a particular token. So I think we really believe there’s lots of opportunity in terms of AMM model, RFQ model or on chain order book model, there’s lots of opportunity. Our team is ready to capture and to serve the best strategies for our users. And in the future we foresee that there’s lots of opportunity in FX as well as commodities as well as NFTs.
[00:29:40.230] — Eric
So maybe I can link two projects. So one would be Abort, so it’s also on Arbitrum chain, it will be all the book trading platforms. And as for the Nfdx, it will be an NFT trading exchange. These two are quite interesting and I believe that Arbitrum will be the best chain, best performance chain for DeFi as well as perpetual market. And our team really good for Arbitrum chain.
[00:30:15.110] — Matthew
Yeah, I would like to add on something, I think one more point I think the future of decentralized perpetual market would be like is that there will be much more usage or utility of the LP tokens because I think one of the advantage of decentralized perpetual markets is to offer more flexibility and composability. So that for example, there is currently some lending platform that allows the LP tokens such as GLP as a collateral to borrow money. This is something that we cannot see from the traditional exchange. So I believe that the market share of the decentralized perpetual exchange will grow over time, while the market share of the traditional exchange will decrease over time. So I believe it will be a trend like this and you can see that there are more and more products that allows LP tokens to have more utility such as the collateral borrowing that I just mentioned. And also we can see that there are more and more perpetual exchange is coming, especially on Arbitrum such as LEXER that something like that. So we can see the market participants of decentralized perpetual exchange become more and more and I believe that with much more competitions between them, they will offer and provide a better product.
[00:31:59.720] — Matthew
And I think the ultimate beneficials will be investors like us or the users in the Arbitrum because we can enjoy a much more, much better products on trading and we can use our LP tokens to do other stuff such as borrowing or even doing something like LP index or something like stable coins backed by LP. I think all these kinds of possibilities are the things that we may explore in the future and I believe this will be the trend of the decentralized perpetual markets.
[00:32:43.430] — Jeffrey
Yeah, it sounds like there’s so many ideas in the air to really expand this whole entire decentralized perpetual market space. So many creative ways to build out that perpetual market, which is great to see especially here in Arbitrum. And I know that we have a few minutes left so if you guys want to mention anything feel free to chime in.
[00:33:13.470] — Matthew
Maybe I can share more about the upcoming plan for Vaultka. So as of today actually we are about to complete our private round run and to be raised like 500K USD from few VCs. So I think this fundraising has allowed us to accelerate our plans for growth and expansion. And additionally, as mentioned by Eric before, we are going to launch leverage strategy on top of VELA exchange and gains network very shortly. So we are also planning to launch an LP index token which I have mentioned before, which we will explore in the future, which allows investors to gain exposure to a diversified portfolio of liquidity pools. So we are confident that this will be a valuable addition to our product suits and will provide our users with even more opportunities to maximize their return. So to achieve this goal, we are currently investing heavily in research and development and we are working closely with our partners to identify new and innovative ways to leverage their platforms. So we are confident that these efforts will allow us to provide our users with a wide range of high quality products to meet their needs and exceed their expectations.
[00:34:48.200] — Matthew
So I think to this end we are also focused on building a strong and engaged community of users and supporters. We are also working to foster collaboration and cooperation within the broader crypto community and we are committed to supporting other projects and initiatives that align with our values and goals. So we believe that this community will play a critical role in driving adoption of our products and helping us to achieve our long term vision. I think to wrap up, we are confident that our upcoming plans will allow us to continue to grow and expand and to establish ourselves as a catalyst of decentralized perpetual exchange on Arbitrum. And we are very excited about the future of crypto and we are committed to playing a positive and productive role in shaping that future.
[00:35:57.010] — Jeffrey
Yeah, I’m sure the Arbitrum community is very excited to see you guys grow and I’m also as well. We’re supporting you guys. So thank you guys for coming on. We really appreciate all the insights you gave us about Vaultka and yeah, we wish you all the best.
[00:36:18.310] — Matthew
Yeah, thank you. Nice to be here.
[00:36:21.240] — Eric
Yeah, thank you. Nice to be here.
[00:36:23.830] — Jeffrey
You yeah, anytime. Well, we’ll see you guys later and happy Wednesday.
[00:36:29.080] — Matthew
Yeah, you too. Thank you.
[00:36:30.700] — Jeffrey
See you. See you guys.
