DeFi (Decentralized Finance) is growing very rapidly this year. Data from DeFi Pulse shows that up until Oct 1, the total value locked in DeFi has reached 11.07 Billion USD, representing a very incredible growth. Meanwhile, DEX is the sector enjoying the most robust growth in DeFi universe.
At UTC time 12:00 pm, October 1, Katya, the founder of PRME Agency and VOLK GLOBAL hosted an AMA surrounding “Emerging DeFi — MoonSwap” in MoonSwap’s Telegram group, marking the launch of MoonSwap’s global AMA tour.
Mr.Moon, the representative of MoonSwap and Christian, Conflux Global Marketing Manager were invited to the AMA as guests and answered some of the most highly-concerned questions from the community.
Don’t worry if you missed the AMA, here we have prepared a recap on the AMA. Meanwhile, please mark the time if you don’t want to miss the 2nd episode of MoonSwap’s global AMA tour:
Recap on MoonSwap’s Global AMA Tour Day1
Katya: Hi Mr. Moon and Chris, first of all, Could you pls make a brief introduction of your platforms? Let’s start with Mr. Moon!
Mr. Moon: Thanks, Katya.
MoonSwap is a Next-Generation Protocol for DEX, as well as the First and the Best AMM DEX runing on Ethereum L2 now. MoonSwap is supported by Conflux Network and Cross-Chain Asset Protocol ShuttleFlow. All users with Ethereum assets can now enjoy the whole new “High-Speed and 0 GAS” trading experience.
Meanwhile, thanks to our cross-chain development capacity, we will develop protocols in the future to call L1 assets for asset management. Overall, MoonSwap can be regarded as a combination of Uniswap and Yearn.finance with higher efficiency.
MoonSwap was officially launched in early September and accomplished the world’s first ever cross-chain asset migration on Sep.24th, 2020. Currently, the global community of MoonSwap has attracted over 10,000 members, of which almost 60% come from market outside China. We are excited for our journey ahead, very ground-breaking and very meaning!
Chris: Conflux started out at Tsinghua University, China’s most reputable university, as a research project focused on finding ways to scale up blockchain to make it faster and more secure. Once investors like Sequoia Capital, Huobi Group and Baidu Ventures showed interest and invested, the project turned into a well-funded venture with the aim to launch a global public blockchain network.
Conflux is now overseen by a diverse global team with the mission to promote cross border collaboration by developing decentralized open source technologies and facilitating open commerce.
Katya: As we have previously mentioned, DeFi is enjoying robust growth this year, how do you guys see the power of DeFi as well as its potential trend? Pls share with us your judgement.
Mr. Moon: Bitcoin is recognized as the first breakthrough in the blockchain world, which combines a lot of knowledge of cryptography, consensus mechanisms, peer-to-peer networks, and incentive mechanisms.
DeFi can be seen as the second breakthrough. Although it is not yet as disruptive as Bitcoin, DeFi has already begun to take shape and shown its potential.
DeFi exists because it can meet the financial needs of some people, whose financial needs cannot be met by the traditional financial system.
The goal of DeFi is to establish a transparent financial system, which is permissionless and open to everyone and does not rely on any third-party institutions to meet financial needs. Financial needs such as loans, transactions, payments, and various derivatives, cannot be met by traditional finance. Through the integration and operation of intermediary agencies, traditional finance improves market efficiency and achieves better resource allocation. But at the same time, due to the existence of intermediaries, the traditional financial system has also seen many problems, including transparency issues and spamming. This has led to excessive debt and inflation. Once economic development stagnates or excessive inequality occurs in economic distribution, and the debt structure is not capable of dealing with the changes in time, economic crises will inevitably break out.
In the current financial structure dominated by intermediation, economic crises seem to be unavoidable and constant. The core of the blockchain is transparency and distribution, which gives it the opportunity to change the current financial structure. This is why DeFi can play a key role in the future.
Let’s talk about the current market.
The DeFi market has begun to take shape, and the market ecosystem has gradually distinguished the good among the bad. Many DeFi Tokens in the current market have plummeted. It is the time to test their authenticity. Most investors are gradually able to see which projects are worthless counterfeits and which are “mainstream DeFi coins” with long-term value.
Under the current market context, we need to get rid of the bad and fake, exchange the worthless DeFi tokens for the potential ones with long-term investment value. Because once the market reverses, these white horse projects will immediately become market leaders and attract huge attention from the public. MoonSwap belongs to one of these white horse projects.
Chris: Generally speaking, I think that the growth of DeFi is good for the overall adoption of the decentralized ecosystem.
More and more users are switching from CEX to DEX, more people are experiencing it, and in addition, experiencing the disadvantages of the Ethereum network: high transaction fees and low confirmation times.
Currently, DeFi on Ethereum is only a feasible option for users with large amounts of assets, hence not for the most people in the world.
With more people realizing the disadvantages of current DeFi products, layer-2 solutions will gain recognition in the foreseeable future, so more people can enjoy DeFi smoother and cheaper.
The MoonSwap team has done pioneering work by migrating Ethereum assets onto Conflux Network, where the DeFi users can now experience 0 transaction fees thanks to the Conflux Network Transaction Sponsorship Mechanism, and almost no waiting time due to the high-throughput of Conflux Network.
We hope more people can finally use DeFi, with experiences like a centralized application.
Katya: DEX is often compared with CEX, do you think DEX would replace CEX in the future?
Mr. Moon: DEX is not only a competitor of CEX, but also a complement to CEX. It’s still too early to say that DEX will replace CEX. Most Uniswap users invest due to its profitability.
The high popularity of Uniswap has a lot to do with its model innovation and profitability.
Just as crypto has not replaced fiat money and the two have a coexisting and complementary relationship, I believe that DEX cannot replace CEX. The two will joinly promote the development of crypto world with a healthy competition.
Chris: That’s a tough question!
One way for this to happen is when people become more educated on the processes for obtaining cryptocurrencies and using them in a decentralized manner, bypassing centralized exchanges.
There are too many other factors that need to be taken into consideration when talking about DEX replacing CEX in the future.
For some people it might be the truth already, but for most people it’s not.
Only when the adoption and token-holder rate increases worldwide, global regulations become crypto-friendlier, cryptocurrencies can be actually used in our daily lives for payments, DEX solutions become as smooth as **MoonDEX** or **MoonSwap**, and users are actually educated about DeFi and DEX, only then, CEX might become something of the past.
We are all working hard towards that future, but we need more people to help shape that future!
Katya: Mr Moon, Many users are asking this question: compared with Uniswap and SushiSwap，what are MoonSwap’s competative advantages? and why users should go to trade on MoonSwap?
Mr. Moon: In the past few years, Uniswap has been a leader in the AMM field, and it has changed the way people trade crypto. However, Uniswap has many challenges. For LPs who provide early liquidity to Uniswap, their income will rapidly decrease after large funds enter the pools, and they will not be able to obtain the returns despite the development of the platform. Supporting these early LPs is critical to the development of Uniswap. But the current situation is simply not fair.
SushiSwap has made some improvements to the design of Uniswap, with native token $SUSHI issued to give more returns to early LPs.
However, we think there is a big problem with the allocation mechanism of $SUSHI, and we have made improvements to that. The transaction fee of MoonSwap is the same as Uniswap and SushiSwap, both are 0.3%, of which 0.25% will be sent to LP, and 0.05% will be used to buyback $MOON from MoonSwap and the MOON tokens will be burnt afterwards. From this perspective, MOON is deflationary.
At the same time, Uniswap and SushiSwap both have a problem that is difficult to solve in the short term: high GAS and low TPS. MoonSwap chose Conflux as the Ethereum Layer2 solution to provide users with a new AMM trading experience with 0 GAS, high speed, and smoothness.
Katya: The tide is running high for DeFi, and many DeFi projects named DeFi are coming to the market, why is MoonSwap different and what is your long-term target?
Chris：A fundamental issue for base layer blockchain protocols is scalability and speed. We’re one of the few layer-1 protocols using a novel PoW-integrated DAG structure providing between 3,000 and 6,000 transactions per second for enterprise applications. That novel structure, called **Tree-Graph**, is an energy-efficient proof of work mechanism that allows the network to pursue efficiency without sacrificing safety, decentralization, or trustworthiness.
To compare our transaction throughput to the industry standard, Conflux Network’s technology features a reduced confirmation time and increased transaction throughput of 6,400 transactions per second, while Visa handles about 1,000 to 4,000 per second.
Mr.Moon: MoonSwap has 3 killer features that we think is very outstanding and remarkable, namely:
- 0 Gas Fee: We launched MoonSwap V1 on Sep.28th, on that day alone the DEX has cumulatively processed over 100,000 transactions, helping users save more than $1 million Gas fee.
- high-speed: our transactions per second is 3,000–6,000 TPS
- Ethereum Layer2 Solution
Well, for our long term goal, MoonSwap is working hard to lower the barriers of entry to financial products and services, empowering third-party developers, liquidity providers and traders to participate in the open financial marketplace. Through the open financial system based on smart contract, MoonSwap is actively exploring the boundaries of new financial universe of DeFi.
So in order to realize this goal, MoonSwap would communicate and cooperate with the global DeFi community very very closely. Actually currently compared with the traditional financial sector, DeFi sector is still a little brother. Joint strength is important for the whole DeFi community, so we would grow shoulder by shoulder with many of our eco-partners.
Katya: Mr. Moon, we know MoonSwap has recently accomplished the world’s first cross-chain asset migration, can you share what have you accomplished so far, and what’s MoonSwap’s next step after the asset migration?
Mr.Moon: Yeah, since the launch of MoonSwap, our team has been working around the clock to push it forward, and help solve our users’ problems. We are very proud we have achieved several milestones so far:
As our next step, we will put more time and energy on the following aspects:
- MoonSwap will continue to launch more products. MoonSwap.info has been released already. And our community members developed MoonSwap Gas, which is a good product, where users can check the Gas fees they paid in recent years, and the equivalent pizza amount.
- MoonSwap will launch a mobile version APP for Android.
- MoonSwap will also launch “the City of a Thousand Planets” Program, aiming to expand its asset list and introduce more ERC20 to MoonSwap.
Katya: NFT is recently quite a phenomenon in crypto space, does MoonSwap have any plan on NFT?
Mr.Moon: Yeah, of course we do. The combination of DeFi and NFT is a hotspot of the market recently and MoonSwap does have related plans with two directions: Conflux internal and external assets.
Conflux internal assets: MoonSwap will collaboration with the to-be-launched gift box and users will be able to purchase gift boxes with MOON. Apart from the value of NFT itself, NFT assets can be synthesized to gain FC tokens.
External assets: MoonSwap will collaborate with ETH DeFi projects. We will conduct campaigns like gaining NFT assets via staking MOON tokens. And MoonSwap will map NFT assets to Conflux, and users are allowed to mine NFT assets. We hope that we can find more adoption scenarios for MOON to promote its mass adoption.
Katya: MoonSwap is committed to provide users with 0 gas fee trading experience, this is interesting since so many of us are bothered with the high amount of gas fee on other platforms, could you introduce to us more on 「0 Gas fee」advantage and how you make it a reality?
Mr.Moon: Here is a screenshot from EtherScan. It shows that a transaction takes less than 58 mins.
However, on Conflux, a transcation can be approved within 1 min.
And as mentioned above, MoonSwap community members created a tool to check your Gas fee payment history. In the product, you can see how much you paid for each transaction. However, on Conflux, we are able to save all these transaction fees for users. You can take a look at how many of your pizza have been taken by Ethereum in recent years.
Katya: Does MoonSwap have other marketing plans?
Mr.Moon: From our users’ feedback, we are reassured that the trading experience we provide is smooth and fast. However, some users are still skeptical towards our product. Seeing is believing. Hence, we released our YouTube video contest for users to record their real high-speed and 0 Gas trading experience and thoughts.
MoonSwap has prepared generous gifts for contestant and we welcome your participation:
Meanwhile, our “Ambassador Recruiting Program” is ongoing. We hope to promote our product through ambassadors, let more people know MoonSwap, as a way to improve the whole MoonSwap ecosystem.
Katya: Just now you mentioned about the “the City of a Thousand Planets” Program, this concept is intereting, can you tell us more about it?
Mr.Moon: Yes, sure!Recently we have launched “the City of a Thousand Planets” Program.
MoonSwap V1 has been running stably since its launch on Sep 28. Up until September 28th, the cumulative number of 0 Gas transactions processed on MoonSwap has exceeded 100,000, having helped users save more than 1 million USD. This marks the successful operation of the world’s fast Ethereum L2-Based 0 Gas and high-speed AMM DEX. With the landing of MoonSwap V1 on Moon, the global community members of MoonSwap have attracted over 10,000 people.
As a highly-concerned question, many community members are keen to know when MoonSwap will start to expand its asset list by introducing more ERC20 assets. Today, We are glad to announce that MoonSwap will launch “the City of a Thousand Planets” Program (CTPP).
The first stage of CTPP will adopt pre-assessment and invitation mechanism. We will publish our listing application form for projects to fill out. The Conflux smart contract of an ERC20 asset after cross-chain mapping will become a brand new Conflux address and may cause confusion, so we believe that the pre-assessment and invitation mechanism are able to protect users from scams and counterfeits, as users may not be able to distinguish the real projects from the fake ones.
Pre-assessment and invitation are not censorship, as we will not assess the project’s quality and the basics, but only focus on confirming its uniqueness, to ensure the uniqueness of all the ERC20 assets listed by MoonSwap on Conflux network.
Meanwhile, we welcome ERC20 assets migrant to MoonSwap from other AMM DEXes like Uniswap and SushiSwap, which is called Migration Mining. We will open Ethereum Galaxy liquid mining for these assets (mine through staking UNI V2 LP tokens). They will be migrated one by one and the Conflux Galaxy liquid mining (mine through staking MOON LP tokens) will be open for them after their landing on MoonSwap in the Conflux Galaxy.
At present, it’s completely free to get listed on MoonSwap. However, we may introduce community governance to the listing process, where candidates are required to pay a certain amount of $MOON to initiate a listing vote, and the community governance will vote on the project’s listing.
We here sincerely invite all DeFi enthusiasts, miners, Bitcoin and Ethereum lovers to join MoonSwap, together we will build it as a galaxy metropolis.
Response to Questions on Twitter
DeFi has three sectors: DEX, Synthetic asset, and Lending. Which exactly is MOON focusing on? Do you have plans for others that you’re not focused on yet? (from @gokhanbatbay )
1）MoonSwap is an AMM DEX
2）You can migrate your ERC20 assets to Conflux and generate ERC777 assets, and then you can trade your ERC777 assets on MoonSwap with High-Speed and 0 GAS. So maybe you can think of ERC777 assets as a kind of Synthetic asset.
3）Now MoonSwap runs on L2, and we have the plan to call the assets on L1 to invest into protocols like @compoundfinance and @AaveAave and earn profits for our users. Basically, we can do what @iearnfinance do now on L1.
What is your plan for global expansion? At present, which market does MoonSwap focus on, or is it focused on building and growing to gain customers, users and partners? (@dmsaly14)
Mr Moon: Yeah, in terms of global expansion, currently we are focused on introducing us to the global market, building brand, gaining users. As we have just mentioned, we have recently accomplished our cross-chain asset migration, which we attached great importance to as asset securty is our top priority, in the next we are starting our partnership discussion with many top players in the global DeFi sector. We believe a DeFi project’s success is closely connected with the whole ecosystem.