Recap of OpenLeverage Fireside Chat
This is a recap of questions asked during the Fireside Chat with Jackie, OpenLeverage Co-Founder and CEO. The Fireside Chat was conducted in English, with the theme “How to Improve Transparency on OpenLeverage?”
Overview of AMA
Speaker: Jackie, Co-Founder and CEO of OpenLeverage
Moderator: John, Marketing Manager for OpenLeverage
Date: July 22nd, 2022 at 12 PM UTC
Venue: OpenLeverage Discord (discord.gg/openleverage #founder-ama)
(Questions and answers are reformatted for ease of reading)
Q: Will OG NFT holders have any benefit, for example, a discount on trading fees?
I think this topic is worth another session to discuss how we should build an NFT system to enrich the usage of OpenLeverage. In the long term, we have a sophisticated plan to do that, and it’s more than just NFTs. But for the short term, no trading discount for NFT holders yet, as NFT holders might not be traders at the moment. This also raises a good question regarding the high fees that our community is complaining about.
Q: Volume and TVL are a big part of DeFi. What is your project’s plan to raise volume and TVL? As for the governance token, why don’t you just close the short feature or disable rewards for those who short your token so we can see this project at least protecting their token? I also feel like it’s too quiet here. I’ve asked a few questions in the #dev chat channel and in general, but no one responds.
We want to protect the platform and make it as permissionless as possible, so we will never disable the short feature for any market unless our community votes to do so. Having said that, in our latest plan of governance voting for incentive distribution, community members will be able to vote for each side of the lending pools so they can create imbalanced incentives to discourage liquidity to support long or short positions. Regarding the response, the dev team has been busy pushing the dev plan forward so they might not always be available to answer questions, so we now intend to host more regular community events on various topics for the core team and the community to discuss together.
Even if we see market actions working against us, we won’t change our principles and promise to build a permissionless platform.
Q: Improving transparency is an interesting topic for DeFi. How will OLE be transparent and accountable for the platform? Will OpenLeverage issue a treasury address and make expense reports every epoch or quarter? If so, where’s the report? Is it on Twitter or do you have your own platform in the form of a dashboard? And does that also apply to insurance funds to publish addresses and expenses to the public?
Since OLE was launched two weeks ago, we are getting into a new development phase. We have seen actions and suggestions about transparency on a few things, so we plan to take the following steps to improve:
Transparency on treasury addresses and transactions. We are working on a clear smart contract deployment and dashboard that show treasury, ecosystem dev fund, investors, and team allocations and makes that public to the community. We are also developing a Discord bot to alert everyone on the fund move. All the buyback transactions will be transparent, e.g. xOLE fees share and Clans Clash distribution will use the same amount of stables to buy the OLE from the DEX for seven days in a roll after each epoch end and post the tx hash in an open doc for the community to understand how the price was achieved. All of these will be transparent from this epoch.
Transparency on the roadmap. We will have a clearly-defined roadmap for the community to understand, discuss and contribute, so we can build OpenLeverage products and the ecosystem with the community. More details will be shared in the next question regarding the roadmap.
We will kick off voting for some of the important decisions, especially around OLE incentives on different markets for trading and lending.
As I mentioned, regular discussions will be hosted within the community with Discord text channels and Twitter space audio chat on various interesting topics.
Q: Where can we see all the funds collected from investors such as Binance Labs and the use of these funds? How much money did you receive from Binance Labs, Crypto.com, etc?
We chose not to disclose that information, as there is some non-disclosure agreement on the terms we signed with investors. The only thing I can state is that both of them have a significant stake in us and will help us build for the long term as the best class project. With support from our investors, we have a very long runway that can enable us to build super cool things without worrying about daily expenses.
Q: For liquidators, someone said that there is an OpenLeverage liquidator bot. Is that bot for the public? If so, when will it be published on GitHub? Will it be open-source and pass an audit, so that there is no phishing logger? If it is not distributed to the public, it means that only the OpenLeverage team is able to liquidate the position, because the public will not always be available to monitor the dashboard of the liquidator (especially if monitoring they might lose to bots). It does not sound decentralized.
Our smart contracts and API is always there for developers to read and build on top of it. One important stat I can share is that 80% of liquidations now are executed by third-party liquidators, so not only by us. There are many different liquidation strategies there to compete with each other. If you have questions on how to build your own liquidators, let us know and we will always be there to advise.
Q: Please be transparent and mention all core team staff, and what is his/her job in OpenLeverage? I see a lot of team members that rarely interact with the community, like Tom and Benjamin. What are their backgrounds, such as work and experience?
Good suggestion. Let’s make a discord channel for this, so you guys know the team structure, bios, and contact if you needed.
Q: The Medium article talks about using an off-chain platform like Snapshot.org with xOLE used for governance. My question is when making a proposal will you use xOLE? If so, how much xOLE is needed? When will the governance roadmap be released?
You do need xOLE to make proposals when the DAO is launched. The structure and numbers are in discussion, along with numeric tests. We will share more when the DAO is launched, which will take 6–9 months, as I’ve mentioned earlier. Meanwhile, let us know if you have ideas and suggestions about how to evolve the protocol or community; we will always be there to help and push changes forward if it makes sense.
Q: After Clans Clash Rewards for the epoch were distributed in $OLE, $OLE prices down to $0.058. Can we have a vote to change distribution from $OLE to $BUSD?
The reason for distributing OLE to all our campaigns and tokenomics rewards is to ensure that everyone in the OpenLeverage community is bound with a common interest, which will be OLE. We will keep delivering OLE, and at the same time, make the delivery process fully transparent.
Q: In an unstable and highly volatile market situation how OpenLeverage will ensure its users that there will be transparency and that OpenLeverage will not interfere in such a scenario by halting trading?
We are running with decentralized lending pools and trading with decentralized exchanges. It can’t be halted as long as liquidity is in place.
Q: This is a general question raised by the community several times regarding the Road Map. Can you expand on that to let our community understand more about what’s going on for Q3?
On the trading theme, the priority is a limit order, a long-awaited feature. Then we are tackling various solutions to lower the trading fees.
On the ecosystem integration, you will see our deployments to side chains like Polygon, Avalanche, Fantom, and Ethereum L2s like Arbitrum and Optimism. We will also look for deep integration with DEXs, yield aggregators, asset management protocols, and algo traders. So ultimately, we will become a middleware in DeFi for lending and margin trading.
On the lending front, we will provide an intelligent vault to automatically route your lending between different pools based on the high return and risk level to improve capital efficiency. Further, we will support over-collateralized borrowing for all market assets, which means you can borrow majors with altcoin as collateral, and vice versa.
Q: Will OpenLeverage do everything the DAO wants?
We plan to launch OpenLeverage DAO in 6–9 months, and our smart contracts will support a Compound-style voting structure. Meanwhile, the core team should take responsibility for driving the direction with more and more decisions to be voted with xOLE. Both the core team and the community should learn the best way to run the project in a fully decentralized way before DAO ultimately drives it.
Q: Do you have plans to increase leverage by 5x?
The plan is to increase to 10x as max leverage, which should be coming really soon. I think it should meet requirements for almost all traders, not gamblers though.