LBank AMA Recap with BlockSwap Network
Part 1.
A Brief Introduction
Matt: Alright, yeah, I get started myself, Matt. I’m the CEO of BlockSwap, leader project projects. I have a background of blockchain architects been in the blockchain for the last four and a half years. So currently heading the block shop and, you know, trying to help proof of stake networks to deliver the rally to an everyday user in a meaningful manner. I’m pretty excited to talk to the community today.
Scott Trowbridge: I’m Chief Commercial Officer for BlockSwap network. Prior to coming to block swap, I was Director of Global Business Development for a protocol for wine chain, based in Beijing. So I led a media team for the business development and partnership side. And then after that, I was running the wework FinTech and blockchain labs, which is wework incubator for early stage, FinTech and blockchain startups. They’re with in London, as well, so yeah, worked with some really great produce, like make it out Celsius, Swiss Borg, and a bunch of others, so now, full steam on BlogSpot.
Scott Trowbridge: I can do an intro and then Matt, if you want to give some more contexts. So yeah, you can it from a high level, you can see blog swap as an immutable decentralized and noncustodial protocol, that’s bringing fixed income products to prove a state change. So really like how to utilize staking and proof of stake as an underlying mechanism to trust the redistribute wealth to like a mass consumer base. We really believe like in the cusp of it is enabling like mass adoption, utilizing defy will be primarily through like, problem solving, and really solving everyday user problems. And one of those problems is how do you enable users too safely and securely preserve their assets and give them a sustainable savings, which will turn a standardized test of time.
Q2:What has been the original intention of BlockSwap?
Matt: Yeah, sure, I can take that. So BlockSwap is a mission driven company, which is trying to onboard next million users on to you know, proof of stake but blockchain is solving a real world problem, right? So we believe we are product based company so we believe product market fit is very crucial, you know, as a company to connect the users. So if the under the T shirt is off like in the next, a lot of users is going to join the crypto will be earning crypto rather than buying a coin right? We all got into crypto somehow we bought a Bitcoin or Ethereum. Something like this is our journey, right how we began. But you know, if you want to bring like a million users this uses will be coming into crypto, but through some kind of you know, they are directly using an application earning crypto. And blockchain was around more than two years in device space. And we believed from the beginning, proof of stake is the way that he can, you know, serve a large number of pieces like 100 million users or a billion users. A proof of stake teens are in no contract constructed in a way it is meant to be serve a large number of users rather than a proof of work. So we were excited with EADS to launch because he’s students like one of the biggest thing happened in the blockchain. And we want to connect the proof of stake underlying asset inflation like any proof of stake chain has a token with inflation. So the token will give additional tokens to the easiest directly, and proof of stake and blocks up want to be the bridge between the sobering you know the block chains and everyday users through a fixed saving account. So as simple as that user will get a fixed saving from the disk completely powered by blockchain without having any other intermediaries in between.
Q3: It is said that BlockSwap has reached a partnership with several institutions. Can you tell us which partners BlockSwap has reached? Will new partners join BlockSwap in the near future?
Scott Trowbridge: Yeah, I can tell that. So yeah, like so blocks were where we’re really focused on proof of stake chains and working directly with proof of stake chains. So we work directly with the chain foundations themselves so far, like our protocol, first liquidity layer Open Table will support for privacy change primarily. And then we’ll expand that going forward. Those chains are polkadot and Ethereum. And then secondly, we have a community net that’s running at the moment. And we have within that something called steak houses, and Steak House operators. And these Steakhouse operators include polygon, Republic, crypto impossible finance, and some other large communities. So yeah, we’ve really been quite like for in the communities that we work directly with.
Q4: At the end of March, BlockSwap completed a $2.5 million round of private equity financing. What are the outstanding advantages of BlockSwap that can attract investors’ attention?
Scott Trowbridge: Yeah, so I think going back to what we’re facilitating now and focused on now with a community. So we have over 100,000 unique registered users to join the Steakhouse game. And as the status game progresses and users interact with our smart contracts, via an easy to use interface, such as telegram that all of those users will actually become token holders. So that statistic alone is like, pretty important. And also, this is like one of the largest social coordination experiments that’s ever been done. So I think that’s something that’s very exciting. If you look at AD phi, currently, there’s it’s still a very small number of users that are participating, mainly because it’s quite complex to participate. You need to really have a technical background or at least some understanding of like how to add liquidity into these different pools and permanent loss or these other aspects. With our community, net users are actually earning tokens with just a few clicks. We’ve really been, again, very thoughtful in how we refine that user experience going from like 10 to 12 or 15, even clicks with some of the other defy protocols to just like two clicks, without within hours.
Q5: Liquidity squeeze on PoS chain is a very difficult problem. How does BlockSwap bring fixed income products to PoS assets to avoid and solve the above problem?
Matt: Right, so, good question. So blogshop is having a new architecture we just we did it from the ground up. Open see, our system will allow a normal user from anywhere in the world. So is that users from Indonesia or China from us or from Africa, anyone can no deposit their native currency or the ERC 20 into your blockchain account, and they can earn 7% interest on dollar, right. And the underlying mechanics of this is pretty simple. Every time a user deposit for example, Alice comes in deposit like $100, and Alice will get an account with a 7% yield and the underlying deposit of $100 will be utilized to buy a proof of stake asset by the smart contracts. So on the other side of the smart contract, there is a market where you know, more risk tolerant, you know, crypto native traders will basically get advantage of using this, you know, the proof of stake assets to take care of easy exposure, for example, this is what you do when you walk into a bank, you open a savings bank account, you don’t know what is this bank money is because all the other stuffs are completely in the vaccine. In a similar fashion, you can just replace your bank with a smart contract and say that you give the money to a smart contract and smart contract will manage it yourself. And it is completely backed by 150% proof of stake assets on the other end. And that’s the guarantee the security aspect of it so there is no intermediary. It’s just basically a smart contract is giving you that yield from the proof of stake assets.
Q6: Compared to famous AMM such as Uniswap, what are the unique advantages of StackHouse launched by BlockSwap?
Scott Trowbridge: Yeah, so a bunch just so actually, you can see Steakhouse is slightly different from just a traditional automated market maker, you can see steakhouses, actually automated asset market maker. So there’s, there’s some slight nuances. So what is diecast? Like from a, like, a conceptual perspective, it’s a simple shared registry that simply allows like, different node operators to register their nodes and associated validators in order to permit quiddity abstraction. And so what does this really mean? It means that anyone can actually spin up a, an asset management system, and actually incentivize the quiddity and then reward their users in a structured way, with tokens, and so it’s not a case of, you’re still dependent on a system to pull this liquidity into one place in a noncustodial and decentralized structure. Actually, anyone can do this, and anyone can do this at a very low cost. And so I think, like, there’s a lot of development happening in this, and a lot of development happening around Dows. And I think like, where we’re really like progressing, quite a pace to enable this automated asset market maker system, and bring this like to many people. So yeah, there are a lot of differences from traditional automated asset market makers.
Matt: I can add a couple of points if you want. So, at the moment are most of these assets or in uniswap is basically for trading perspective, right? So you go and give a token, a dye or uscc you got to trade it, but stakeouts come from a different angle. It’s not a market maker for trading; it is helping people to deploy their assets. For example, now stake assets or any other long term assets need to be on the balance sheet we have seen Tesla’s adding Bitcoin and later and then other companies, you know, Microsoft is adding Bitcoin all these companies are adding their digital assets into their balance sheet and these assets are sitting in the balance sheet and need to be further deployed and make it accessible for the market. And this is where the steakhouses coming into the play. You know, it is it will immediately allow any this last ad sitting on a blockchain to be available for market and to operate automatically for liquidity purpose.
Q7: As the first fixed income product on BlockSwap, what is the specific operation mechanism of Open Saver and how to keep APY staying at 7%?
Scott Trowbridge: Yeah, that’s a great question. So yeah, you can see like open saber is, it’s a really a new type of architecture that’s been built from the ground up. And what it enables is everyday users to get access to a sustainable savings through dfi, radio without having to understand the complexities and technicalities of participating AD phi. So every asset in open Sabre ecosystem has a fixed rate of yield, in this case, use that spring that native Fiat, they’re getting a 7% fixed yield. And that’s coming from a bonded proof of state asset as its collateral backing that actual deposit. So basically, what happens is every time a saver is purchased, so users are buying up one of these saver dollars or several these $7. A save a bond is minted as the collateral of that saver. And that’s that save a bond is always keeping 150% collateralized ratio. So for example, how will that 7% is maintained, if the price of the base asset decreases, this now creates like an arbitrage opportunity to really go long on the state asset and enables the market to buy up the saver bonds. And that the US the liquidity providers buying the saver bonds, and then have the Manage rights to the underlining saving saver bond. And what they can do is they can then flip that in the market. So it’s basically quite synonymous with like traditional money markets, and asset managers already know how to interact with this kind of system. But it always enables the safety net for a consumer who’s simply depositing their Fiat to get that same person at any given time and not really have to worry about the market price fluctuations of the previous day assets.
Q8: Can all users participate in Open Saver? Are there any participation threshold requirements?
Matt: Yeah, great question. So open saver, acid, the name suggests is open for anyone. So there is no limitation or no barrier to participate with open zoo, anyone can participate with open server if they have an internet access, right. So one of the key thing that we are trying to do now putting a test environment right now it is on live, people are participating with our system directly from telegram, right, this is like unheard of, to the system that we develop open server can be, you know, available on a mobile on a browser on any, you know, on a computer, or even could be, you know, integrated to the social apps. So what we’re trying to bring is like a permission less the promise of the permission less access from blockchain, connect that to our daily life in a social apps and things like that give that kind of social experience for users to deal with their finance, right? It’s like an Instagram moment of how do you take your photo and put it up into the internet and have that satisfaction, so that’s kind of user experience that we’re trying to bring, but with the added security of blockchain that is offering out of the box.
Q9: Dual Token architecture (dToken/SLOT) of BlockSwap is an innovation. What’s the innovation of Dual Token architecture？What is the different experience for participants?
Scott Trowbridge: So yeah, firstly, I can talk about like steak house, the token architecture for that. So you Steak House, what we’ve essentially done is simplified the staking process, and at the same time, isolated like the slashing risk. So what happens is we enable speakers in the room, for example, to bring 32 eath. And what they do is they join a specific on chain staking node called a steak house, as we previously described, and in return they get for their 30 to eat, they receive 24 D, the D is a non flashable representation of the underlying state asset, if you’re familiar with liquid staking is quite synonymous with that. And they also receive eight slot token. And the slot token is a perpetual bond. And this is acting as like the equity of a steakhouse. So for example, let’s just say that you were able to bring on a number of validators within the steak house in like week one, the slot token has an underlying value of that. And then let’s just say in week 10, the amount of users and liquidity or liquidity within that Steakhouse increased, the value of the underlying slot token would have increased. So you can kind of see it like similar to how like traditional stock markets work in a sense, whereby you have the all these different stocks, and all these different entities behind these stocks, stocks being like tokens, and then the value of that entity increases as more revenue and profitability comes into that entity. So it’s a similar concept.
Q10: Not long ago, BlockSwap launched the test network Community Net token, How the users get the tokens? What’s the role of these tokens for users?
Scott Trowbridge: Yeah, for the community net. So the community now we have a token directly being utilized for that for this purpose, which is called cbsn, so community net, BlogSpot net network token. And users can receive this by participating in this Steakhouse game. So we call the community net, a protocol model, that protocol market fit exercise. And this is really where we’re looking to stress test the critical, at the same time, bring users into the protocols, they can learn and understand how to interact with it in like a safe and simulated environment, where they’re not having to put up like real eath or other state assets. And what they do is really, they just come so far to telegram everything’s being interacted every turn around with smart contracts running in the background. They quick button through a customized bot application, and then they start earning the cbsm rewards. So what we’re doing is we’re simulating this Steakhouse structure. As I mentioned before, we have like Steakhouse operators such as polygon, Republic, crypto, impossible finance, and other communities. And then they simply interact and the cbsn rewards.
Q11: Finally, in one sentence, summarize your future expectations of BlockSwap network!
Yeah, I can get my one sentence and maybe Matt is a bit different. So for me, really like, how do you enable anyone with a mobile device and an internet connection to access a universal basic savings through like a sustainable through sustainable savings products? So we’re like really abstracting away the technicalities of defy and giving value to the next like 10 million 100 million users coming into crypto through by simply holding a token. And this enables anyone to actually get access to this through our coordination, coordinating liquidity layer or like Steakhouse framework.
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