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[Summary] AMA Session with Blockchain Nigeria User Group

Moderator (Adebayo)

Welcome to our 30th AMA on BNUG with waves and the 2nd in 2021. We are glad to have the waves team here to reveal to this community their latest offering. Kindly welcome @kardanovir @chukwuka021 to this session, with a show of ❤️ , appreciate them with clap of hands.

Hello everyone! Thanks for having us here today! It’s a pleasure to have such a great opportunity to talk with so many great people in this community!

Guest (Inal)

I’m Inal and I’m a developer advocate at Waves Protocol

I’m also the head of Grants & Funding Working group of the Waves Association and a member of Waves Association board, so I’m kinda techincal guy, who is responsible for communications with developers.

I have mostly tech background, so I can definitely answer your technical and deep questions too!

Guest (Henry)

Greetings to the greatest BNUG community. I’m Henry, team lead at Quru Lab, founder of Muna and Africa regional lead at Waves Protocol.

I am so pleased to share about Swop.fi — an Automated Market Maker solution built on Waves.

Inal

A few words about Waves (from my own perspective). Waves.tech is an all-encompassing ecosystem, which includes:

- Waves blockchain, very fast and efficient protocol with a unique LPoS consensus algorithm

- Neutrino protocol, which is designed to create algorithmic stable assets

- Waves Exchange, which is a decentralized exchange with a user experience not worse or even better than at centralized exchanges

- Gravity — interchain solution which will inter-connect many blockchains

And of course

  • Swop.fi — automated market maker, and today we will mostly talk about it!

Questions from the moderator.

1. Is there any risk to using Swop?
Answer: If you want to only exchange tokens, then swop.fi has no risks now. If we talk about investing in SWOP, then we have to understand that there are always risks using any financial instrument, and if anybody promises risk-free investments, they are definitely lying to you. Even bank deposits or money under your pillow have risks. So the question should be like “What are the risks of using Swop.fi and how big they are?”. There are 3 main risks for your investments related to crypto in general and Swop.fi too:

  • Impermanent loss
  • Swop token price risks
  • Smart contract risks

The very first and obvious risk exists for all automated market makers line Swop.fi, Uniswap, and PancakeSwop is a so-called impermanent loss. Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets go up compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. You won’t lose money in dollar value, but you may have an impermanent loss in the amount of an asset.

The second risk is related to the SWOP token price. The SWOP token price may negatively affect APY for liquidity providers. Right now SWOP offers pretty high APY in all pools, but these numbers may change in the future because they depend on the SWOP token price. The SWOP token price on the other hand depends on the swap volume. There is an article that explains how APY is related to SWOP token — https://medium.com/swop-fi/where-is-swop-fi-pools-high-apy-coming-from-4fedca21cd86.

The last risk type is common for all dApps — their code is written by people and sometimes they make bugs. But SWOP is implemented using Ride, which was designed to be safe and help developers to avoid bugs. SWOP smart contracts’ code is also 20% less than Uniswap, which means fewer chances for bugs. And of course, SWOP contracts were developed by a very experienced team and went through a couple of audits.

2. Most investors focus only on the token’s price in the short term instead of the real value of the project. Can SWOP tell me the benefits for long-term investors? How can I do it?
Answer: SWOP is a tool with a set of unique features — very low fees, great liquidity and smart tokenomics. These features bring VALUE for users. That’s the most important metric for long-term investors. The more VALUE can be delivered by the project — the more profitable it would be for long-term investors.

Every long-term investor wants to invest in the next unicorn. So Swop.fi here are 3 reasons why it will become the big story:

  • Traction. It is growing at a crazy pace. From 0 to 40m liquidity in just 3 months. That’s simply GREAT. The traction is because of it’s cool features. Swop.fi combines BEST from products like Uniswap and Curve with different formulas and very low fees, which is also important nowadays.
  • Great team. As I already said, it was developed by a very experienced team with great background in Waves Technologies and understanding how DeFi works. They have a great leader (Igor Pavlov) and they know what they do.
  • Community. It has a great community of liquidity providers and users already and it will grow even more in the next couple months. You can also join swop.fi community in Telegram — https://t.me/swopfisupport

3. Will Swop.fi (waves) provide a better fee and speed compared to platforms running on ethereum? What is your strategy in the future so that users can know more about Swop?
Answer: Swop.fi operates on the Waves protocol, which, thanks to its high throughput, offers minimal fees of 0.005 WAVES, which is roughly $0.05.

The average speed of a transaction’s adding to the Waves blockchain is just 3–5 seconds even with the minimal fee. Small fees and high speed are major components of user experience on Swop.fi, as differences with other protocols, such as Ethereum, is huge. Sending a transaction on Ethereum could cost $30 and up and take a few minutes. In addition to poorer user experience, this increases the probability of slippage — a situation when someone else’s transaction is written to the blockchain before yours, changing your deal’s parameters.

4. What industry difference does swop.fi bring to the waves ecosystem as the only AMM dex on waves protocol?
Answer: Swop.fi is very important for the waves ecosystem, because it is the first AMM with a great traction. Actually, there were a couple of attempts to implement AMM before, but they didn’t get such traction in terms of TVL and Volumes.

Swop.fi offers a new way for traders and arbitrageurs. There are already bots trying to find arbitrage opportunities between Waves.Exchange and Swop.fi, which is great!

5. Safety and security are always the most important things. So what is the security mechanism of SwopFi to ensure user assets do not become the target of hackers?
Answer: Swop.fi is secure for sure. It is designed to be secure and implemented using the Ride smart contracts language. Ride is one of the most secure languages for smart contracts, because it’s main purpose was to be safe. And another reason why it’s secure — it was developed and reviewed by great experts in Waves Tech and Ride language especially. So simply put — it is secure and profitable for liquidity providers.

General Community Questions

Question: What is the type of asset we can provide liquidity for on swop.fi
Answer: You can find the list of supported tokens here — https://swop.fi/info

Question: How’s Swop.fi pools annual percentage yield (APY) formed and what factors have an impact on it.
Answer: Here is a great article which answers to your question about APY — https://medium.com/swop-fi/where-is-swop-fi-pools-high-apy-coming-from-4fedca21cd86

Question: Which of these aspects is more important to you?

A. Increasing token price and value

B. Empowering platform development

C. Building community trust

D. Expanding partnership globally
Answer: Of course community is the most important part, and not only for now

Question: Does Swop.fi support listing of tokens and if yes what are the basic requirements.
Answer: Swop.fi does not support listings yet, but it will in the future for sure. There are also a couple of questions about partnerships and I have to say that partnerships are not the main focus for now, because we see sustainable growth of demand on the product and that’s our focus now — to onboard all users which want to use the product, instead of trying to attract more with partnerships.

Question: Will Swop.fi provide a better fee and speed compared to platforms running on ethereum? What is your strategy in the future so that users can know more about Swop?
Answer: Swop.fi operates on the Waves protocol, which, thanks to its high throughput, offers minimal fees of 0.005 WAVES, which is roughly $0.05.

The average speed of a transaction’s adding to the Waves blockchain is just 3–5 seconds even with the minimal fee. Small fees and high speed are major components of user experience on Swop.fi, as differences with other protocols, such as Ethereum, is huge. Sending a transaction on Ethereum could cost $30 and up and take a few minutes. In addition to poorer user experience, this increases the probability of slippage — a situation when someone else’s transaction is written to the blockchain before yours, changing your deal’s parameters.

Question: What industry difference does swop.fi bring to the waves ecosystem as the only AMM dex on waves protocol?
Answer: Swop.fi is very important for the waves ecosystem, because it is the first AMM with a great traction. Actually, there were a couple of attempts to implement AMM before, but they didn’t get such traction in terms of TVL and Volumes.

Swop.fi offers a new way for traders and arbitrageurs.

There are already bots trying to find arbitrage opportunities between Waves.Exchange and Swop.fi, which is really great!

Question: Safety and security are always the most important things. So what is the security mechanism of SwopFi to ensure user assets do not become the target of hackers?
Answer: Swop.fi is secure for sure. It is designed to be secure and implemented using the Ride smart contracts language. Ride is one of the most secure languages for smart contracts, because it’s main purpose was to be safe. And another reason why it’s secure — it was developed and reviewed by great experts in Waves Tech and Ride language especially. So simply put — it is secure and profitable for liquidity providers.

Question: Please explain more on liquidity mining, is it ending soon?
Answer: Nice question, SWOP bonus was rewarded to community who are early bird to provide liquidity on swop.fi when it launched till now, you can earn SWOP token when you provide liquidity on swop.fi and you can farm these SWOP tokens that you earn.

Question: Impermanent loss is a LPs worst nightmare, how does SWOP solve this problem?
Answer: Unfortunately, impermanent loss can’t be fully solved, but there is an option for those who wants to avoid it. Swop.fi has stable asset pairs (USDN/USDT and USDC/USDN), so you can provide liquidity there and you won’t experience impermanent loss, thanks to a flat formula developed by SWOP.fi team.

Question: Is there plan for cross-chain transactions on the platform?
Answer: Right now Swop.fi supports cross-chain DeFi tokens provided by waves.exchange. For example, Waves.Exchange offers USDT/USDC/BTC/ETH token gateways and swop.fi supports them. In the future (after the launch of gravity.tech), swop.fi will support cross-chain assets by Gravity Protocol too.

Question: May I know what effort is swop taking to ensure that scam tokens are not listed? like are they laid down guidelines for token listings?
Answer: There is no possibility for listing custom tokens for now, only swop.fi team lists new tokens, so there is no problem with scam tokens, at least yet. In the future, when listings will be possible, community votings can be used. We have some experience with such voting in the Waves ecosystem and we’ll use our experience for sure.

Question: What is the next development progress we will see on Waves?
Answer: Good question! There are many things heppening now in the Waves ecosystem, many technical improvements which will help to keep Waves fast, but add more functionalities for dApp developers. For example, Continuations is a unique way of smart contracts execution — https://forum.waves.tech/t/wep-11-script-execution-with-continuation/20621

To keу up to date I recommend to follow Waves Tech on social media:

Twitter — https://twitter.com/wavesprotocol

Telegram — https://t.me/wavesnews

By the way, if you want to know more about swop.fi — feel free to ask ANY questions about in the telegram chat — https://t.me/swopfisupport

Question: How do you plan to spread awareness about your project in countries/regions where English is not spoken well like Indonesia, Vietnam, India, Bangladesh and Iran, do you have local communities for them to make them better understand about your project?
Answer: That’s a great question! Waves has many communities all over the Globe and they help to spread the word about swop.fi too.

Yes, we do have several communities where AMAs are conducted and every content translated into local language including Waves Africa

Question: How many people are in the swop.fi team? What is your former experience in the crypto world?
Answer: I cannot tell the exact number, unfortunately, but more than 10 🙂

Question: How can we collect extra rewards with SWOP farming?
Answer: The best thing you can do is to open this page — https://swop.fi/info

Find there a pool with highest SWOP APY and provide liquidity in this pool. For now, it’s SWOP-USDN. Swop.fi (https://swop.fi/info)

Final Remark by Guests

Thank you very much for having us here! I personally enjoyed it a lot, I think @chukwuka021 will support me with it .🙂

Thanks, guys for the time and opportunity to share about swop.fi

You can use it on your desktop browser or mobile browser to add liquidity and earn.

Close remark by moderator (Adebayo)

On behalf of @chutachimezie, the founder and coordinator of BNUG and the entire admin appreciate everyone that took out time to be part of the AMA session. Much thanks to the duo of @kardanovir and @chukwuka021 for a brilliant presentation 👏 Expect more sessions from BNUG this year. Prepare to learn and also earn.

Waves is doing well on CMC. $9+

Moderator (Chuta)
Thanks for sharing awesome content with us today, bro. You are your team rock!

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Waves Africa

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A community of passionate blockchain developers & enthusiast across Africa