Zyro’s AMA with Consensus Lab, a Leading Chinese Blockchain Investor
Zryo — the revolutionary of DeFi, the successor of DEX, and the favorite son of Zilliqa.
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20:00, September 16th, Beijing time, Zyro’s Chinese community initiator Mike Ha was invited to an AMA (Ask Me Anything) held by Consensus Lab, a leading Chinese Blockchain investor. The analyst head of the Consensus Lab and the moderator of the AMA, Wu Shaokang, asked Mike a series of interesting questions around the concept of Zyro. Here we prepared an English overview of the AMA for our global community.
Wu: Nice to have you here Mike. First, please say hi to our community and give a brief introduction about yourself.
Mike: Hi, everyone. I’m Mike, Zyro’s Chinese community initiator. I started to work in the blockchain industry full-time since 2017 and I have been very lucky participating in the early private and public offering of 0x, decentraland (MANA), Maker, and Theta. Due to the congestion incident on ETH caused by cyrptokitties, people have realized the importance of the scalability of ETH. Since then, I have become a strong supporter of the sharding solution and went full position on ZIL, as it is the first public chain with the sharding solution. I have been active in Zilliqa community and started organizing mining from early 2019. My team participated in the designing of the NFT smart contract on Zilliqa.
Wu: Some due diligence questions. When did Zyro go online and is its code safe? How much funding has Zyro gained so far?
Mike: ZYRO is currently an ERC-20 token and has passed the security audit conducted by Knownsec.com and OKEx. Actually, we have developed a ZRC-2 token based on Zillliqa, which will be launched with the release of the Swap and the switch of blockchains. The reason why we chose ERC-20 was that we believe in the “Lego Effect” of DeFi as its most important attribute: a DeFi project needs to connect with other DeFi project for it to be successful. At present, ETH outstands in terms of the diversity of DeFi projects and an ERC-20 token is able to better interact with the existing protocols.
Zyro has so far gained a total of $2 million investment, which will be mainly used to develop and promote the protocol.
Wu: As an infrastructure, public chains play an important role in DeFi. Uniswap and SushiSwap are established on ETH with the advantages of traffic and stability. However, their users face the challenge of high Gas fees. JustSwap is built on TRON with the advantage of low transaction fees. From the point of view of the public chain, what makes Zilliqa stand out and what advantages can it bring to Zyro?
Mike: I believe that all the yield farmers on ETH are deeply tortured by the slow transaction and high Gas fees on ETH. I spend around 100 USD on interacting with these DeFi protocols on a daily basis. A normal transaction only costs 5 to 6 USD. But a multi-path Dex like 1inch always cost 70 to 80 USD per transaction. Opening the staking of an LPT trading pair costs 2 to 3 USD. The worst part is that when you offer a low Gas fee, the transaction will be stuck while canceling a transaction also costing money. The whole experience is very frustrating.
Zilliqa adopts a consensus mechanism of PoW+PBFT, instead of a pure PoW. Hence the resources consumed by mining were greatly reduced and so were transaction fees. Currently, the transaction fee on Zilliqa is about 0.001 ZIL (around 0.00002 USD), which is totally neglectable. Low transaction fees have made high-frequency trading possible, which probably accounts for 80% of the transaction volume in a CEX. High-frequency trading is completely impossible on DEX on ETH. Zyro aims to enable users to conduct high-frequency trading in a DEX through a high-speed and lossless public chain like Zilliqa.
Wu: Zyro is a decentralized protocol developed on Zilliqa as well as the biggest Dapp on Zilliqa so far, allowing users to trade and mine by providing liquidity to the DEX. As a Uniswap-like protocol on Zilliqa, what’s the difference between Zswap and Uniswap?
Mike: I believed in Uniswap as a very revolutionary product immediately after its lunch. It will be more interesting if Uniswap distributes tokens instead of transaction fees as rewards. Uniswap was followed by Synthetix and Aragon with LPT staking mechanism and the launch of SushiSwap made the mechanism to a new level. Apart from liquid mining, Zswap allows users to mine by participating in trading, which solves the problem of little transaction volume despite the launch of many large liquidity pools. Sushi uses 20% of transaction fees as token buyback funds, whereas Zryo spends 100% of the transaction fees on dividends, with half for referees and half for partner nodes.
In the early stage of many Swaps, we saw many fake tokens taking money from users. Many Swaps like Uniswap and SushiSwap have adopted a List mechanism, which is decentralized and updates slowly. Zswap will list tokens with a Whitelist Voting mechanism, which is both decentralized and fair, enabling the prevention of fake tokens and exit scams.
Wu: The crypto trading market has seen great changes in the past few months with the emergence of Uniswap, Curve, SushiSwap, and other Dex. With liquid mining and high APY, DEX market has attracted huge attention from traders and even created direct competition with CEX.
CEX and DEX are competitors. Do you think CEX will be replaced by the emerging DEX market and what’s your point on the development of DEX?
Mike: I have held high expectations in the future of decentralized trading protocols since the launch of 0x and I believe it has huge potentials. However, I don’t think DEX will replace CEX. First of all, centralized exchanges spend a lot of energy on new users' education and onboarding. So, as long as the crypto trader community is still the minority, CEX has a huge potential market to expand. Second, after years of development, CEX is not only a trading platform, it has grown into a window to cryptocurrencies. Many users depend on it for price information, wallet functions, mining, asset management. CEX has become a popular APP like Apple Pay, which was only a trading platform at first, and then you realized that it can do many more.
Wu: In the frenzy of DeFi, CEX is no longer a trend creator or promoter. It has become a follower instead. On the contrary, DEX is demonstrating its initiative and advantages. What do you think about this phenomenon? Is Zyro able to bring a trend to the industry?
Mike: I think the biggest reason why the DeFi industry is evolving at such a rapid speed is its open-source nature. Everything made by everyone is open-source and free. Others will directly improve the existing codes if they have a new idea and if it turns out to be more advanced, the original one will be replaced. Even so, developers still have to make their code public and prepare to be replaced. This is the way how DeFi industry develops.
Whereas the traditional Internet industry always conducts strict examination when a programmer leaves the company to check if he or she “stole” the code. Many lawsuits have been seen regarding code leaking in the traditional Internet industry as well. However, in DeFi, this kind of thing will never happen as not only the code is open-source, nowadays even companies are not a necessity as many issues can be solved by DAO.
Another thing I want to mention is the “Lego” attribute of DeFi. Every project in DeFi focuses on its own direction, with Dex focusing on DEX services and insurance protocols on buffering risks. All these protocols have successfully formed an amazing ecosystem. But if you want to create a comprehensive platform with everything on it without others’ help or interaction with others, you will certainly fail as this concept is not “blockchain” at all.
On the other hand, CEX is not able to do the two mentioned above. Making codes open-source is an impossibility at first, as they are business secrets. Business connectivity is rare at the time, as CEX seldom list other CEX’s native token. Hence, CEX is more like the traditional Internet industry, emphasizing the construction of moat, whereas DeFi is more like a sea that all rivers converge towards. Zyro hopes to focus on Swap first on Zilliqa with a cooperative attitude towards other projects, not a competitive one.
Wu: Opportunities and risks coexist in DeFi, as is demonstrated in the recent incidents including what happened on Sushi, and hacking as well as pre-mining on other platforms.
How should we protect the interest of the community and what actions does Zyro take in terms of security.
Mike: I don’t think these incidents were caused by DeFi, as pre-mining has happened during fork many times in as early as 2017. Asset unlocking by the project team was also seen during ICO. Exchange attacks have never stopped. But DeFi amplified these incidents. DeFi is still in its infant stage and everyone believes that Code is Law, while neglecting regulation in other aspects. But now users are more educated and they always check if the code has been audited and monitor the wallet address. So we believe the incidents will become less and less. Zyro has conducted two code audits and the team is considering purchasing insurance from protocols like Nexus Mutual.
Wu: As the most popular DApp on Zilliqa, Zyro provides not only decentralized trading services but also ZYRO tokens as rewards to users through liquid mining. Does Zyro have any innovation and unique advantage in liquid mining?
Mike: One feature of Zyro is its social mining concept, where users are allowed to enjoy 20% plus APY by staking ZYRO and becoming a node. They can also upgrade their node level by inviting friends to the ecosystem. The higher the node level, the high the APY. The highest level nodes are entitled to more than 40% APY and more than 50% of transaction fees of the whole Swap. Moreover, Zyro’s staking rewards are paid on a daily basis.
Wu: Is there any update of Zyro you want to share with us? What are the goals and plans of Zyro in the future?
Mike: Zyro created its trading pair on Uniswap this week, enabling many users to trade ZYRO in a decentralized way. We are planning on the release of the staking service of LPT, just like SushiSwap.
Meanwhile, Zyro has been listed on CoinMaketCap, CoinGecko, Feixiaohao, and other platforms, inviting more supervision from the community. We plan to launch Zswap, which is based on Zilliqa later this month or in early October. We are also preparing to swap ERC-20 token to ZRC-2 token, which will allow ZYRO and ZIL holders to mine bu liquidity provision and trading.
Last but not least, here is the link to ZYRO on Uniswap:
And here is a full tutorial on how to interact with ZYRO on Uniswap:
How to Interact with $ZYRO on Uniswap
Zyro — A DeFi Project in Zilliqa Ecosystem
Developed by core members from the Zilliqa community, Zyro is a decentralized protocol based on Zilliqa public chain, with ZYRO being its native governance token. ZYRO holders are able to participate in future planning and asset management for Zyro. Users are allowed to mine ZYRO by providing liquidity and trading on DEXes. They can also get ZYRO through successful referrals and becoming nodes. The underlying public chain Zilliqa adopted by Zyro greatly increases the transaction speed and reduces transaction fees, enabling a frictionless trading environment and the best battlefield for frequent traders.
Official website: https://zyro.finance
Contract address: https://viewblock.io/zilliqa/address/zil1ucvrn22x8366vzpw5t7su6eyml2auczu6wnqqg