Thank you to everyone who joined AMA Blockelite x Peanut on 14th January at 3:00 PM UTC I 10:00 PM UTC+7. Here is the recap for those who missed this AMA.
Our special guest today is Alex – CEO of Peanut, Roman – Community Manager of Peanut
Segment 1: Introduction about Peanut and Alex – CEO of Peanut, Roman – Community Manager of Peanut
Q1: Can you briefly introduce yourself as well as the Peanut?
Alex – CEO of Peanut: My name is Alex Momot and I’ve been in crypto since 2013, Ethereum ICO participant and serial blockchain entrepreneur. From 2014 I’m in the Bitcoin Foundation of Ukraine and many other activities in the space including building miners equipment and several startups. Currently I am leading the Remme company that builds distributed Access Management solutions eliminating passwords and today would like to tell you more about my second passion – Peanut 🙂
So the idea behind Peanut came to me after I’ve noticed how Uniswap works and how big Impermanent Losses could be… The problem with AMM is that you always suffer from slippage – sometimes low if pool size big enough and sometimes big if there is small amount of liquidity provided.
We’ve made a research about users’ losses size and were impressed – $300 millions each month for Uniswap only! https://medium.com/peanut-trade/how-to-turn-uniswap-slippage-into-profit-for-liquidity-providers-552517234b8e
That’s why we have decided to fix that and create Peanut to reduce losses of users and liquidity providers.
So what exactly is Peanut. Long story short – Peanut is an advanced price balancer tool.
Let’s imagine: every time a trader swaps between tokens using an AMM, the price of the tokens in the pool changes. This affects the value of the pooled holdings of all liquidity providers. When one of the tokens in the pool spikes or crashes in price, as can frequently happen, liquidity providers suffer what’s known as impermanent loss. As a result, when they go to withdraw their assets from the pool, the value of their holdings has diminished.
Peanut balances prices after each trade to reduce slippage and helps liquidity providers to earn more.
If you like I can share the detailed description of our tool 😉
Here is the detailed explanation of how our balancing mechanism works:
So here is how current flow works without Peanut:
User buys Token A for ETH on Uniswap and creates a slippage. Let’s say 2%. So he will receive 98 tokens instead of 100.
Next user buys Token A for ETH on Uniswap and creates an additional 2% slippage and he will receive 98-2%=96.04 tokens.
So slippage will be accumulated for each next user.
If arbitrage bots work on this token then part of slippage will be drained making slightly better rate for next user but creating impermanent losses as a result.
In both cases users and LPs will receive less.
Proposed flow with Peanut:
User buys Token A for ETH on Uniswap and creates a slippage. Let’s say 2%. So he will receive 98 tokens instead of 100.
Peanut balancing the price by moving liquidity from other exchanges to Uniswap making price 99 and providing part of profit to LPs covering impermanent losses.
Next user buys Token A for ETH on Uniswap and creates an additional 2% slippage and he will receive 99-2%=97.02 tokens.
Peanut balancing the price again by moving liquidity from other exchanges to Uniswap making price 98.01 and providing part of profit to LPs covering impermanent losses.
So slippage will be lower for each next user in comparison to flow in the first example.
In both cases users and LPs will receive more.
Q2: How does the Peanut platform work? What values can Peanut provide to the end-user?
Alex – CEO of Peanut: Peanut is an advanced price balancer tool. As a good example, every time a trader swaps between tokens using an AMM, the price of the tokens in the pool changes. This affects the value of the pooled holdings of all liquidity providers. When one of the tokens in the pool spikes or crashes in price, as can frequently happen, liquidity providers suffer what’s known as impermanent loss.
As a result, when they go to withdraw their assets from the pool, the value of their holdings has diminished.
Peanut balances prices after each trade to reduce slippage and helps liquidity providers earn more.
Q3: Can you give us a little insight into future NUX Token utilities, features, and token economics?
Alex – CEO of Peanut: Peanut is powered by its own ERC20 utility token, NUX. In order to add liquidity to the Peanut pool, users will need to deposit some NUX tokens. Otherwise, Peanut’s algorithms won’t be able to conduct operations with the user’s liquidity.
NUX enables our algorithms to work with any assets. Liquidity provider (or regular user) should have enough NUX on the balance for the Peanut balancing mechanism to start operating on their liquidity. Once profit is earned fee will be taken from the NUX tokens too. Once the large-scale distribution is achieved and governance best practices proved, we’re planning to use NUX utility token for the governance purposes.
Let’s use as example to understand in a better way:
REM/ETH pool on Uniswap now has ± $30k total liquidity.
Let’s imagine all liquidity is provided by one person and he wants to have a part of the slippage and IL back.
For the Peanut DEX-CEX balancer to work they should put 10% of the pool value into our custody.
$30k*0.1 = $3k (DEX on-chain balancer don’t require balance)
Then they should BUY & STAKE $3000 in NUX token to unlock use of the balancing algorithm.
REM slippage on Uniswap was $16k (August, September, October).
If we will be able to catch 1% of slippage only, it will give $160 during these 3 months and $640 per year (21.3% annual yield).
If we can catch 5% – $800 and $3200 respectively (106.6% annual yield).
From all the profits Peanut will take only 10% as a commission.
Blockelite Host: You need 50% USDT and 50% NUX to use it, right?
Alex – CEO of Peanut: no, just NUX
But you will need 10% from your original Uni pool to be staked at Peanut
Q4: What decentralized exchanges do Peanut support? Do you have planning to expand to other blockchain platforms such as Tron, Binance smart chain, Polkadot… in the future?
Alex – CEO of Peanut: We will support Uniswap, Curve, Sushi, Balncer at the start. Uniswap is done already. You will have two options – create a new pool on Uniswap through our solution. In that case 90% of liquidity goes to Uniswap and 10% go to Peanut as an additional balancing pool. Or you can create a balancing pool for existing Uniswap pools. The same scheme will work for other DEXes.
Since 90-95% of all liquidity now on ETH network we are starting there. Once there will be at least 5% of RTH cap on other networks we will start supporting them
Q5: What is Peanut’s marketing strategy and community plans for 2021?
Alex – CEO of Peanut: Expanding community into many SEA countries 🙂 Stronger community means benefits for all token holders. Most of LPs and active DEX users should be aware about Peanut so we will put significant efforts into marketing
Blockelite Host: Will you develop local community?
Alex – CEO of Peanut: Yes, now we are planning activities for several local communities growth
Segment 2: 5 best questions from Twitter
Q1: What are wagering requirements? What is daily profit? And specifically how much? Is there any lockout period for withdrawing my assets? And to receive the bonus, do I need to pay any extra fees?
Alex – CEO of Peanut: Well, we are not gambling so we can`t predict exact numbers. If you are LP at Uniswap we will reduce impermanent losses to some extent
Q2: One of Peanut’s goals is to “Automate profits”. How much can this feature increase the APY for our investments?
Alex – CEO of Peanut: I can give example of one of our trades:
0.19 eth to 2.86 eth = 2.67 eth profit
such a big difference could be because of big buy order on one exchange and fragmented liquidity across crypto market
not all trades such profitable but in crypto it could be often 🙂
Q3: I’m interested in investing, though I missed the Presale round, Do you plan to have a public sale soon? If yes, how many rounds you’ll have, what’s the minimum and max cap?
Alex – CEO of Peanut: Yes, we will have public round in 2 weeks approx. end of January or first days of February
It will be Dutch auction with $0.35 lowest price and $2.5 highest. Higher amount we will gather – faster unlock will be for token holders
Listing in two weeks after, 20% of raised funds we will put in liquidity on Uni
Listing will be not lower than $0,75
Blockelite Host: If i buy with price 0.35$, is the token locked?
Alex – CEO of Peanut: yes, exact lock will depend from total funds raised but could be 20% unlock at the beginning and the rest will be unlocked in equal parts during 500 days
Q4: In the event of a sharp drop in one of the investment assets, how quickly will it be replaced? How flexible are your tools to make these decisions quickly?
Alex – CEO of Peanut: for DEX on chain part it will be balanced in one Ethereum block – 16 seconds 🙂 , for CEX-DEX part it will take few minutes
our back end should make estimations during milliseconds to be enough fast
Q5: Do you have any Coin Burn / BuyBack systems or any Token Burn plans to increase the value of Token & attract Investors to invest?
Alex – CEO of Peanut: yes, our buyback program (10% from profits) launching from the day 1 after listing
Segment 3: Live questions.
Q1: If there is a mistake in the smart contract that leads to a big security breach, would the project be completely destroyed because the smart contract cannot be modified?
Alex – CEO of Peanut: No, part of our balancer is closed, it`s not typical one day project in DeFi
Q2: How many wallets that can support $Your Token until now? And do you have any plan to build your own wallet?
Alex – CEO of Peanut: Any ERC-20 wallet, so quite a lot
Q3: Many projects rug pulled and exit scam recently. Why should investors trust your project not to do the same?
Alex – CEO of Peanut: We have established team and building products in crypto since 2014. We have built Auth, Keyhub, Swapy and we have great expertise in building cyber sec products and has proven that by ongoing contracts with Globalsign, ACT Government and others. Our products were checked many times by Security tops of USA, Australia, New Zealand, Singapore, France and other countries and companies
Q4: What is the main Role of $Nux token in Peanut trade platform? How important the token role to run the Peanut trade platform!?
Alex – CEO of Peanut: To use Peanut protocol you need to have some NUX on your ERC20 balance. It’s used for balancing price and burning both fees. Fees for transactions and service will be withdrawn in NUX tokens.
Q5: The idea of the PEANUT project is really unique and incredible, how did this idea come about?
Alex – CEO of Peanut: So the idea behind Peanut came to me after I’ve noticed how Uniswap works and how big Impermanent Losses could be… The problem with AMM is that you always suffer from slippage – sometimes low if pool size big enough and sometimes big if there is small amount of liquidity provided.
Q6: Partnership seems to be very important in every project’s journey, can you share with us the status of Peanut partnership you have formed recently?
Alex – CEO of Peanut: Peanut is highly supported by the Curve team and I work closely with Michael Egorov, CEO of Curve.
They have already mentioned about us in their twitter:
Q7: What are the Peanut biggest challenges in blockchain in the future? And how are you going to solve it?
Alex – CEO of Peanut: Currently fighting with MEV. Frontrun protection is finished. Frontrun is a situation when smb’s trying to steal your txs and profit by reading it from mempool and creating the same tx with higher gas so miners will take such a tx earlier. We have implemented several types of protection for that already. MEV – it`s a unfair behavior of miners when they could take preferable tx with lower gas before your tx
Q8: You comment that the Peanut airdrops will not be distributed all at once, but will be divided into 25 equal parts and distributed monthly. Does this mean that after month 25 you will stop doing them and implement other types of rewards?
Alex – CEO of Peanut: No, we have special token allocation (10m NUX) for liquidity mining program beyond 25 months
Q9: From your website :The Peanut hybrid system monitors trading operations on major DEX and CEX platforms. This allows our set of smart contracts to balance prices after each trade among Uniswap, other DEXs, and CEXs. How can this be explained to a non Crypto user or Crypto user with less technical knowledge?
Alex – CEO of Peanut: we will buy cheaper, sell higher and share with you part of profit if you will hold token and use it
Q10: What is the real goal that Peanut is pursuing? How does the community help you achieve that goal? Who are you aiming Peanut?
Alex – CEO of Peanut: Fix AMM 🙂 all LPs and users of DEXs
Q11: Why did you need to build your project on a blockchain infrstructure? What are the advantages and unique functionalities that the blockchain provides, because from where I see it – it would have worked better with a “classical” tech solution?
Alex – CEO of Peanut: We are fixing fully distributed blockchain solution (AMM) with hybrid system that has benefits from both worlds – classic and blockchain
Q12: Instead of simply focusing on the short term price of the TOKEN, let’s focus on the real long term value the project has to offer. Can you please give us some reasons, motivation or advantages investors would get in the long term?
Alex – CEO of Peanut: long locks and real working token economy from day 1
Q13: What is your top 3 things for priorities in 2021? Could you share some plans for the upcoming year?
Alex – CEO of Peanut: Yeah, we’ll soon announce a partnership with one of the biggest DEX liquidity pool. I think those who follow us already know who we are talking about 😉 Also right after public sale we’ll activate NUX buyback from Peanut alpha/beta products profits. Here is our preliminary roadmap:
– NUX buyback from Peanut alpha/beta products profits
– Impermanent Loss Reducing Platform for Uniswap High-Liquidity pools (ETH / USDT / DAI / WBTC)
– Analytics functionality
– Trade functionality
– Smart decision advising algorithm
– Impermanent Loss Reducing Platform for Uniswap Low-Liquidity pools
Q14: There is fierce competition in the finance industry. Obviously, there are other projects that look like you. How will PEANUT deal with its rivals? Do you have details to guide users to you?
Alex – CEO of Peanut: There is no need in creating one more “Uniswap killer” and try to attract LPs. That’s not our way. Bancor, Mooniswap, Dodo trying to solve this problem and attract liquidity but Uniswap, Curve, Sushiswap and Balancer have x50 total value locked. Peanut is like an additional pool for Uniswap and others. We’re not going to compete with Curve, Uniswap etc our main goal is to reduce slippage on any DEX platform. We will support Uniswap, Curve and a few other AMMs at the start. Uniswap is done already. You will have two options – create a new pool on Uniswap through our solution. In that case 90% of liquidity goes to Uniswap and 10% go to Peanut as an additional balancing pool. Or you can create a balancing pool for existing Uniswap pools.
Q15: Typically, investors buy tokens that are likely to increase in price in the future. I saw that, total supply of the token is huge. So, do you have any plan for burning tokens in the future to reduce the supply of the token and increase its investment attractiveness?
Alex – CEO of Peanut: Our initial circulating supply will be one of the lowest on the market – few %% at the end of first month. And we have buybacks from day 1
Q16: Is PEANUT PROJECT open source and public? If I may know, does Peanut conduct IDO or IEO event at this moment, am I late to join ?
Alex – CEO of Peanut: You will be able to join during public round. There is Dutch auction for public sale. The idea behind auction is that demand will be balanced so listing prices will be reasonable and higher. We are considering both options, platforms & self-deployed contracts but you can find out about our solution very soon in our telegram group @peanuttrade 😉
Q17: Smart contracts is needed for every action in Peanut trade platform,. Most of the time the efficiency and slow Transaction speed is the problem when there is too many request in the smart contracts itself. Can Peanut trade platform provide any solutions?
Alex – CEO of Peanut: we can`t fix ETH network itself but we are very fast in comparison to other market players
Q18: Where do I get information about your team? Why do you prefer to be anonymous? Do you have a plan to identify your team later?
Alex – CEO of Peanut: I`m not anonymous since 2013 🙂 Our team building products in blockchain since 2014
Q19: From a startup project to a mainstream project, being a pioneer in the industry, does the team anticipate that how many new startups will show up and compete?Projects that are not traded on major exchanges remain unnoticed. What does you think about listing the token on the leading exchanges?
Alex – CEO of Peanut: Sure, we are working on it to be listed on big exchanges
Q20: fake token contract is happening allot and cause many issues in the smart contracts trade recently, did Peanut trade have any solutions for this problem?
Alex – CEO of Peanut: Yes, we have implemented few different types of protection for it. And soon we will have special solution from our partners to identify any troubles with token just after it happens
Q21: Can I stake $ NUX token. What are the Staking criterias ?
Alex – CEO of Peanut: yes, we will have special staking program for our liquidity pools on DEXs with lowered impermanent losses and 10-15% of interest as liquidity reward
Q22: What exactly is impermanent loss? How does a liquidity provider encounter impermanent loss? What are the major factors that can influence the impermanent loss that a liquidity provider may experience?
Q23: It’s fantastic that you are interested in solving the problem of slippage and Impermanent Loss suffered by liquidity providers by ensuring that only 90% of liquidity goes to Uniswap and 10% go to Peanut protocol to serve as a price balancer. This balancing pool is to be used for an automatic price balancing between DEXs and CEXs. At what point is the transaction within the balancing pool initiated? Also, what is the guarantee that after this transaction, there will be sufficient clearing income generated to dampen the effects of the price movement from large DEXs trades which usually lead to this Impermanent Loss?
Alex – CEO of Peanut: There is almost 100% possibility for succesful deal for DEX on chain part and 80-90% for CEX-DEX. Trade initiated in milliseconds after our back end identifying opportunity
Our AMA session is now over !!!
More information about Peanut