Thank you to everyone who joined AMA Blockelite x HurricaneSwap on 20th September at 12:00 PM UTC I 07:00 PM (UTC+7). Here is the recap for those who missed this AMA.
Yuno – Blockelite Host: Hello fellow Eliters and welcome to another Blockelite AMA Series
So ladies and gents, Our special guest today is Symington W. Smith – Founder of HurricaneSwap
Hello @Symington_Smith , welcome to Blockelite today
Symington W. Smith – Founder of HurricaneSwap: hi everyone!
Yuno – Blockelite Host: hi you, thanks for joinning today
how are you today?
Symington W. Smith – Founder of HurricaneSwap: Thanks for having me here @yuno_02
How are you guys
Yuno – Blockelite Host: great
On to the Segment 1 of our AMA, we hope you’re ready for the next few questions coming at you!
Symington W. Smith – Founder of HurricaneSwap: Sure
I’m more than ready
Yuno – Blockelite Host: Our guest is ready, we will enter Segment 1 right now !!!
Q1: Can you please introduce yourself and share a quick overview of HurricaneSwap?
Symington W. Smith – Founder of HurricaneSwap: Hello again everyone in Blocklite, Im Syminton from HurricaneSwap
So happy to share HurricaneSwap‘s latest news with you guys.
HurricaneSwap is the 1st cross-chain liquidity DEX based on Avalanche.
With the innovative LP-Bridge mechanism (Roke Protocol), users can trade popular assets of other chains without leaving Avalanche. And taking the advantages of Avalanche, HurricaneSwap provides users with a high-performance, low slippage, low-cost and seamless cross-chain trading experience.
Here is the flowchart HurricaneSwap
The liquidity provider deposits the corresponding proportion of CAKE and USDT in the HurricaneStation on BSC and generates CAKE/USDT LP. Then the Roke Protocol will mint an aCAKE/aUSDT aLP on the Avalanche, so that users can trade aCAKE on HurricaneSwap. If the price of CAKE on BSC fluctuates sharply, HurricaneAlliance will narrow the price gap by arbitrage between aCAKE and CAKE to avoid the losses to users due to the price differences.
Skipping complicated processes of single-token cross-chain, LP cross-chain directly moves liquidity from other chains to Avalanche, so on HurricaneSwap, Avalanche users can freely trade any popular assets of other chains such as Ethereum, BSC and Heco with a faster, cheaper and seamless cross-chain trading experience.
I’m done for the first question
Yuno – Blockelite Host: Thank you, for your introduction, our pleasure to have you join us today
And everyone don’t forget join: https://t.me/HurricaneSwap
Q2: “HurricaneSwap – The First Cross-Chain Liquidity DEX on Avalanche”, can you tell us why you chose the Avalanche to build your project? What makes HurricaneSwap convince people that your project is different from existing Defi and DEX projects?
Symington W. Smith – Founder of HurricaneSwap: The reasons why we chose Avalanche are multiple. First, Avalanche is designed for DeFi.
And it is powerful enough to provide us with the best development space at the moment.
In my opinion, Avalanche is more advanced than Ethereum, while trading under significantly faster speed, higher security, much lower gas fee and more friendly interoperability, getting rid of the limitations of Ethereum insufficient throughput and expensive gas fees, bringing revolution to both CEX and DEX.
Professor Emin Gün Sire, the founder of Avalanche, is a senior researcher on distributed networks who has practiced the PoW consensus mechanism before Satoshi Nakamoto published the Bitcoin white paper. Compared with other public chains, Avalanche’s design vision is much purer.
As Professor Gün said, Avalanche was born to realize the digitization of all assets. This vision makes the payment, settlement, transaction and other financial activities on Avalanche better and more scalable. It also attracts many DeFi projects to join, and gradually forms a strong community for exploring DeFi. The entire Avalanche ecosystem was formed for the development of DeFi.
Second, transactions on Avalanche are very active. There are currently more than 680,000 contract addresses with a total daily transaction volume of more than 50 million U.S. dollars, which provides good user support for the development of DeFi.
However, judging from the data of the X chain and the C chain, the number of users participating in the Avalanche ecosystem is far fewer than the holders and traders of $AVAX. A large number of users have recognized the value of Avalanche, but they don’t involve the Avalanche ecology in more depth.
HurricaneSwap hopes to attract more $AVAX holders and traders to participate and create more value in the Avalanche ecosystem by providing more diverse cross-chain assets. HurricaneSwap will actively cooperate with exchanges and wallet service providers, starting with DEX, and HurricaneSwap will follow up with loans, insurance, asset management and cross-chain IDO to accelerate the DeFi ecosystem on Avalanche, attract more capital inflows, and build a more prosperous DeFi ecosystem for Avalanche.
So it’s beyond “we chose Avalanche”, it’s more like, we need each other.
Avalanche needs innovative DeFi tools like ours to bring more vitality to the ecosystem. That’s the reason why they funded us and supports a lot. So we will be rooted in the Avalanche ecosystem and grow together with Avalanche.
As for “What makes HurricaneSwap convince people that your project is different from existing Defi and DEX projects?”, I would like to talk more about our innovation and advantages compared to cross-chain DEX.
The development of cross-chain bridges is relatively difficult and the mechanism of the cross-chain bridge itself makes it difficult to make profit, because once the handling fee is too high, users are unwilling to trade, and the extremely low handling fee will make the node unwilling to work.
The chain efficiency is reduced and the slippage is increased. Therefore, many cross-chain swaps on the market have essentially developed a cross-chain bridge and found it difficult to make a profit, so a swap was added.
A typical example is for the steps of LP. If someone wants to provide liquidity, he needs to pledge assets in the A chain and then go to the B chain to extract the assets, and then pledge. This is too complicated and unfriendly for the LP provider.
So when the APY of these swaps is reduced, it is foreseeable that TVL will also drop off a cliff. But HurricaneSwap is different. From the beginning of product design, HurricaneSwap thinks about the product completely from the user’s side.
What does a user who needs cross-chain swap need? More convenient and richer cross-chain high-quality assets.
What does an LP who want to provide liquidity for cross-chain swaps need? Fewer steps, higher benefits.
All of these can be met on HurricaneSwap. For LP providers, you don’t even need to have an AVAX wallet address to provide liquidity, just as simple as any non-cross-chain DEX on the chain where your assets exist. .
And because of the original validator alliance mechanism of HurricaneSwap, which will continuously narrow the price gap through arbitrage if there is, so the LP you pledge may not even have any impermanence loss (because the number of token pairs on both sides and the pledge time are similar or even the same, therefore, there will be no impermanence loss under the X*Y=K mechanism)
Yuno – Blockelite Host: Perfect, next question
Q3: How can users make profits from HurricaneSwap products?
Symington W. Smith – Founder of HurricaneSwap: Cross-chain Liquidity providers can obtain 0.3% of HurricaneSwap’s transaction volume as the reward for liquidity mining, which is higher than the common 0.2% to 0.25% provided by other DEXs.
Farm: At HurricaneSwap, 60% of the total HCT will be produced through liquidity mining. The ways to acquire liquidity mining reward include acquiring LP Token by providing liquidity in Swap and staking LP Token in farm and so on. Farm will display all liquidity mining pools and provide Multipliers for each pool. The higher the Multiplier, the higher the HCT profit.
HurricaneAlliance: earn HCT rewards by ensuring the correctness of cross-chain transactions as verification nodes, and arbitrage if there is a price gap. A node needs to stake a certain amount of HCT to join HurricaneAlliance. For now, this is only open for institutions.
Yuno – Blockelite Host: Next question
Q4: Security and safety are always of top concern to users. What security mechanisms will HurricaneSwap apply to secure user assets that will not become the target of hackers?
Symington W. Smith – Founder of HurricaneSwap: Our team realized the risk of single-token cross-chain very early on, and Roke Protocol, the LP-Bridge of HurricaneSwap, has inherent advantages over others.
Roke Protocol will mint an aLP on Avalanche from the LP on the original chain through HurricaneStation. LP is extremely secure on the source chain, so is the aLP as no one except for HurricaneAlliance has the authority to perform a single-token cross-chain operation. Therefore, if a hacker issues a cross-chain asset through an attack, there is no way to escape.
Besides, HurricaneSwap has a number of measures to enhance the security of assets.
Firstly, the code of HurricaneSwap was audited by the well-known blockchain security company PeckShield to ensure no vulnerabilities in the contract. You can check the audit report here https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-HurricaneSwap-v1.0.pdf
Secondly, HurricaneSwap is Integrating Chainlink Price Feeds to close cross-chain Price Gaps & Proof of Reserve for stronger Security. The Proof of Reserve service will obtain the amount of assets locked in the source chain and the amount of a-assets issued on Avalanche, and ensure that the threshold of the gap between the source chain assets and a-assets is 1%. Once the ratio is greater than 1%, it will trigger the fuse mechanism and veto any calls of a-assets to prevent malicious additional issuance from affecting the contract.
Thirdly, HurricaneSwap has established the HurricaneAlliance to eliminate the price gap between HurricaneSwap and other exchanges. With the permission of single-token cross-chain transfer, HurricaneAlliance can narrow the price gap by conducting high-frequency transactions through professional quantitative models and ensure the price consistency of original assets and a-assets, so as to avoid the losses to users due to the price differences.
And also, you can check our medium for our solutions to typical risks of cross-chain DEXs such as Fake Deposit, Multi-signature & Quota Vulnerabilities, Redemption Risk, Private Key Leakage, Flashloan Arbitrage, Keeper (Relayer) Replacement & Signature Forgery, etc.
Yuno – Blockelite Host: Thanks for answer
Last question in segment 1
Q5: What’s the next big milestone that HurricaneSwap is working towards?
Symington W. Smith – Founder of HurricaneSwap: We launched the testnet on 30th August, and now there are almost 200K addresses in HurricaneSwap testnet, this number is amazing as there were around 130K addresses altogether in Avalanche testnet at the beginning. So we could say, the market is confident in HurricaneSwap and so are we.
The next move is our mainnet will be launched at 10/10, before that we would announce the whole list of our strategic investors, which means HurricaneSwap officially closed private-sale fundraising. Also, our public sale(IDO/IEO) will start soon. For more specific information please follow our Twitter and there would be an official announcement soon.
Regarding a bigger picture of HurricaneSwap, being the TOP1 cross-chain DEX on Avalanche is our goal of this first phase, bringing more Avalanche X-chain users back to C-chain and blooming the AVAX ecosystem would always be our mission. In the future, we will release more features and functions, like vault service, cross-chain IDO and support leverage trading that kind of staff.
Yuno – Blockelite Host: We have finished segment 1, thanks
Are you ready for Segment 2 (5 best questions from twitter)?
Symington W. Smith – Founder of HurricaneSwap: Cool
Yuno – Blockelite Host: Our guest is ready, we will start Segment 2 right now !!!
Q1: How does HurricaneSwap deal with other DEXs currently obstacles to accessing DeFi services : high gas cost with on-chain transactions, liquidity being fragmented to various protocols and services, trade fee, subpar UI/UX and lack of efficient market-making mechanisms?
Symington W. Smith – Founder of HurricaneSwap: This is a great question but also a big question, so it may take some time to answer. Hope you guys have enough patience.
First of all, HurricaneSwap is based on Avalanche, compared with Ethereum, Avalanche supports a higher volume of concurrent users, which is one of their strongest advantages. Its transaction confirmation time is only 4 seconds and can process over 6000 transactions per second. It is highly scalable and decentralized, and thus can meet DEX’s requirements for security and high frequency transactions. Similarly, benefited from Avalanche, our gas fee is lower than most DEXs.
Different from other DEXs, HurricaneSwap achieves multi-chains transactions by establishing HurricaneStations on each source chain and creates a transaction pool on Avalanche. In other words, it shifts the liquidity of assets from the source chain to Avalanche and realize the seamless transaction of multi-chain assets through the setup of Stations. Users do not need to engage in complex operations like the cross-chain bridge, which makes the transaction process faster and more convenient.
As for cross-chain transaction fee, HurricaneSwap has two major advantages:
1) our unique “Roke Protocol” provides a new reward mechanism which allows nodes to gain profits from arbitrage trading. This mechanism could greatly reduce the cross-chain transaction fee, because it solves a main problem to all the DEXs —— how to sustainably reward your nodes. That’s the key point why most swap have expensive cross-chain transaction fee.
2) When nodes need to gain profits from arbitrage, the token price would be leveled continually, so that slippage wouldn’t be high.
Yuno – Blockelite Host: Next question
Q2: Crypto currency is so popular in Southeast Asia market, some countries like Viet Nam, Philippines and Indonesia,…Does HurricaneSwap have any plan to approach these countries which are so potential in crypto?
Symington W. Smith – Founder of HurricaneSwap: I agree that Southeast Asia has so much potential, and I’m proud to say that, according to the testnet data, over 30% of HurricaneSwap users come from Southeast Asia, mostly in Indonesia.
When we found that, we immediately crewed some community volunteers to help us to establish telegram groups in Viet Nam and other Southeast Asia countries. Also, as the first and only DEX invested by Avalanche, their Asia team supports us a lot, we would host some co-AMA together, and they will link us some local influencers as well.
We really need help and supports from the local community. I think that’s the spirit of DeFi.
Yuno – Blockelite Host:
Q3: HurricaneSwap is an DEX, it is important to attract liquidity and create a large pool, the more liquidity there is in the pool, the less slippage the orders will have. What strategies will you use to attract enough liquidity and thus counteract the slippage of orders?
Symington W. Smith – Founder of HurricaneSwap: We think the most useful strategy is the product itself.
As for HurricaneSwap, we are extremely friendly to LP providers as it only takes 2 steps to add liquidity, this trading experience is no different from trading in an ordinary exchange.
Bedise, how much profits a LP can get is associated with trading volume. However, the trading volume in a cross-chain DEX is very limited. Considering this point, HurricaneSwap would give LP a 0.3% rebate, which is the highest of any DEX.
Yuno – Blockelite Host: Continue with Q4
Q4: Everyone can & easily create tokens, but it takes professional intelligence to keep them valuable in the long run. So, what are your plans to keep your token valuable in the long term?
Symington W. Smith – Founder of HurricaneSwap: Firstly, HurricaneSwap is a long-term project, our team members are all experienced in crypto and mostly come from TOP CEXs. We are funded by worldwide capitals and supported by dozens of influencers on Twitter and Youtube. That’s because they think HurricaneSwap is a valuable project, and also our native token $HCT is a valuable asset.
Speaking of the tokenomics of $HCT, there are two main reasons why it’s valuable in long term:
1- HurricaneSwap is a cross-chain DEX, HCT holders could vote for new asset listing by burning $HCT. We will make it DAO.
2- Everyone who has $HCT is like our shareholder, so users can stake $HCT to earn commission reward. We will reward $HCT holders 1‰ of our daily transaction profit, which is huge and even more than rewards for LP providers given by some exchanges. And most amazing part of this, is that our commission reward would be $AVAX not $HCT. We believe this mechanism would stimulate more people to hold $HCT.
Yuno – Blockelite Host: Ok, last question of this segment, everyone please prepare good questions for segment 3.
Q5: As I know, strong backing and partnerships in the crypto market might bring huge benefits to new projects. During this point, can you tell us about the investors and partners of your project ? What benefits to the “HurricaneSwap ” ecosystem do you expect from them?
Symington W. Smith – Founder of HurricaneSwap: We haven’t officially announced the whole list of our investor and strategic partners yet, but at this point, I can tell you that we are funded and incubated by Avalanche Asia Star Fund(AVATAR Ventures), other crypto capitals includes A&T, JRR Crypto, LD Capital, etc.
Besides, I would like to highlight here, there are 6 investors who are labs/capitals in CEXs , including KuCoin, gate.io, MEXC and there are two more HUGE top exchanges that I can only mention after they make an official announcement. Please follow our Twitter https://twitter.com/HurricaneSwap and you can also get most updated information on our website: https://hurricaneswap.com
Yuno – Blockelite Host: You are awesome, thanks for answer all 5 best questions from twitter of my community.
Last Segment for AMA today, The guests will select 5 best questions from the community.
Symington W. Smith – Founder of HurricaneSwap: Thanks for those Twitter users, they got great questions
What are your marketing strategies and how will you have a global expansion and adoption fo your project where English is not spoken? What are your next upcoming priorities? What is in your roadmap?
Symington W. Smith – Founder of HurricaneSwap: As I said, I think the best strategy is the product itself. In the world of DeFi, I don’t think different language or country barrier would be any problem. I believe the power of community, so the most important thing about our global expansion is building up local communities.
We also created a Viet Nam group for you guys https://t.me/HurricaneSwap_VN (Viet Nam), welcome to join!
Many new projects initially developed well but were suddenly abandoned. How will you manage your project to get your position on the market and become the best project in the blockchain world?
Symington W. Smith – Founder of HurricaneSwap: I can’t say that we will be the BEST project in the blockchain world, but, I’d like to say we’re trying to be TOP1 DEX on Avalanche.
For now, we’re funded by many worldwide capitals and supported by dozen of influencers and communities like you guys. And regarding the numbers on our testnet, I’m confident to say that HurricaneSwap has lots of potential and that’s just the beginning.
Do you have any plan for community ambassador program to reward more users and create local community channel for those users who weak in English?
Symington W. Smith – Founder of HurricaneSwap: Yes, we do have the plan. And we already have a Chinese ambassador who helped us to establish a strong Chinese community, including 4 influential Chinese Crypto media who are our strategic partners, and over 30 Wechat groups.
We hope we can find more ambassadors like him and help us to build more communities.
Can you share some Details about Recent Major Achievements done by your project? Also, what are the Future Roadmap & Targets of your project?
Symington W. Smith – Founder of HurricaneSwap: We just finished the testnet event several hours ago, and share the information earlier.
Now I’d like to share some achievements about development. For me personally, the successful implementation of the LP cross-chain bridge in the v2 version is the greatest success so far. From the perspective of the idea itself or the developing process, what hurricaneswap does has never been done by any other dex on any other chain.
NFTs is hot trending now, Do you have a play to have NFTs in your platform? If so, can you tell us yhe plans of your project in NFTs?
Symington W. Smith – Founder of HurricaneSwap: Yes, we do have a NFT plan. The courage to try and implement new technologies is the spirit of blockchain. Not only trade NFT on our platform, but also create our own NFTs. It will be very interesting and has many features that other NFT do not have. We will do that later as we are focusing the development and optimization of Swap now.
Okay I think I finish all the questions today
Yuno – Blockelite Host: Thank you for joining today AMA! It was awesome! Would you like to address the community before we open the chat? 😉
Symington W. Smith – Founder of HurricaneSwap: It’s a pleasure to be here
You can also join our groups or follow our SNS to get the latest updates!
We also created a Viet Nam group for you guys https://t.me/HurricaneSwap_VN (Viet Nam), welcome to join!
Yuno – Blockelite Host: Our AMA session is now over !!!