Recap of AMA with Centaur Team
Thank you for being a part of the AMA with Centaur’s Co-Founder Sean Kor yesterday.
For all those who couldn’t join us for the AMA, please find the transcript of the AMA.
Please note: Apart from the order of a few questions & minor spelling corrections, the rest of the text of the AMA remains unchanged.
[Transcript: Update From Sean]
Sean: Hey hey everyone, welcome back to another bi-weekly AMA. I’ll start with some quick updates and we’ll take your questions as we go along yeah!
Things have been busy on our end, much more attention placed on the CeFi side recently as we’re ramping up into it. The regulatory landscape is shifting too but we’re still hopeful about the circumstances we’re in. Anyway lets start with Centaur Swap yeah.
Sean: So for Cswap, we’re looking at doing the first token listing early next week. Initially, we were thinking of putting it up to a governance proposal but due to the limited scope of the existing price oracles that overlap between Polygon and Ethereum. We’ve decided on USDC as the first token to list. Of course, the governance process can override this or make suggestions in future.
We’re about ready on the tech side but still in talks with some KOLs to help with news distribution. Tentative launch is on Monday and we were supposed to do the announcement tomorrow but I thought I’d drop the teaser in during this AMA first.
Sean: Some quick points then:
1. We’ll list USDC on BOTH versions of Cswap (Ethereum and Polygon)
2. There will be a WHEY farm for USDC, with a weight of 100 (same for all the other trading assets)
3. The USDC farm will not have an impact on the emission schedule, instead, it will be added to the existing distribution of WHEY
Sean: I’d say that from the interactions thus far, there’s definitely keen interest in this space and Centaur as a vehicle for entry. However, the general mentality is that it’s still fraught with risk and bad actors, and that’s something that we’re working on changing.
Core DeFi concepts such as algo-stables, rebase coins, yield farming and the aggregators have all been pretty difficult to translate though but we’re working on it.
Question: “Due to the limited scope of the existing price oracles that overlap between Polygon and Ethereum”. Interested to know the workarounds that DeFi projects normally use when this situation occurs.
Sean: To my knowledge, there’s a limited number of DeFi projects that work with oracles due to the complexities involved. One such mitigation factor is our ongoing collaborations with other oracle providers who are specialising in different sectors. In our current model, we’re working with Chainlink and they have the best-in-class solutions for price feeds that are decentralised and stable, however they are focusing on the large cap assets only, most likely for security reasons.
We’ll continue working with them for Cswap v1 but moving forward, we’re looking into other oracle providers that may be focusing on the long tail segment of the crypto market, which would open up more options for listings.
Question: Would also like to ask what are current plans for adding more features to Centaurswap. Something like a single-sided WHEY autocompounder would be pretty sweet.
Sean: Part of the v2 development that we’re looking at is liquidity repurposing (i.e. staking of underutilised liquidity into other safe protocols such as money markets) and cross-chain swaps. Both are still quite far into the pipeline though but they are definitely on the horizon for us.
Question: Would the repurposing lead to a higher yield payout on the utilised liquidity side?
Sean: Yes of course! The idea is closer to that of traditional banks where you have a floating balance and the rest is re-invested. I’d say it’s better suited for the DeFi space as the underlying assets and leverage ratios are completely transparent as they are onchain.
Question: What is centaur main goal moving into the new year and there are rumors about a crypto winter is coming, will any initiatives be rolled out to insulate centaur from the impact if it comes?
Sean: Into the new year, we’re solidifying the foundations for Centaur. In fact, we’re working on getting as much out of the CeFi integrations as possible before EoY as institutional money slows down significantly as we transition into the holiday season. On the DeFi side, we’re exploring many more potential partners that can hopefully get us where we’re going in the long run. A big part of these partners are oracle projects but aside from them, yield and DeFi oriented ones are also sectors we’re looking into.
Question: Are we in talks with any potential Cefi partners? I’m hopeful, seeing that the project has clinched 4 DeFi partnerships lately
Sean: Yeap yeap, there’s quite a number of them that we’re in discussion with. The current profile ranges between banks, payment providers, non-profits and insurance brokers. As well as development teams of course.
Question: Any update on the progress of Cswap V2 development?
Sean: Yeap, I think we’re about done with the testing on our end, mostly working on the integrations with the oracle partner right now. I think gas efficiency is something we’re trying to work out together, especially when we’re trying to work with a broad spectrum of cryptocurrencies that may fluctuate between double digit ranges.
Question: Can you discuss a bit of the vision for the inter-organization messaging and payment system? As in how the business model will work and what the CNTR token will do within it…
Sean: Ah, the messaging and payment system we’re looking at is similar to the SWIFT payment network used by banks to route payment instructions. In the current design, we’re looking at setting this up in the consortium chain first, with long term plans of decentralising it. This would allow transactions to be routed between participating institutions in a borderless manner while being completely verifiable onchain and settled instantly. The CNTR token will be used for gas payments and part of the consensus mechanism for tendermint.
Question: Shifting back to CentaurSwap, can you discuss a bit of the vision of how the Hadar App might or might not be getting an update to coincide with CS V2?
Sean: For Hadar, we’re setting up a dedicated dev team to work on it and if possible, we’ll definitely include Cswap natively within the DeFi functions.
Question: I think there is a section talking about how Bancor V2 implements IL protection in the doc. Wondering if you could share your thought on how CS’s IL prevention is compared to that of Bancor V2. Even better, if there are any parts that CS is superior at, regarding that aspect.
Sean: Bancor does not eliminate IL, they provide insurance for it
What this means is that the underlying technology, due to its utilisation of a x * y = k curve, still faces impermanent loss when prices are adjusted. However, the platform subsidises the IL faced by LPs through the trading fees incurred, and BNT is minted and disbursed if the trading fees are insufficient.
By comparison, Cswap uses oracles for price derivation of relying solely on the curve, which means that IL is eliminated as arbitrageurs do not have to adjust prices by trading in the target direction
Question: Curious to get your take on one of the larger narrative waves in the broader industry might or might not have a future for CentaurSwap — a DAO — maybe with treasury, proposals and voting aspects…maybe in Version 3.0?
Sean: I think we’re headed in that direction. The proposal and voting aspects have been functional thus far and the treasury address can be verified on-chain. We’ve been thinking of putting the treasury to work for a while now and if there’s strong support for any of the proposals we would definitely execute on it.
Question: So basically Bancor will try to make IL loss into 0 loss (via fee +/or BNT). This means that LP will not benefit from the swapping fee at all and the only benefit comes from the APR/APY of staking alone?
Sean: I think the first cut of the swapping fees is going to be put towards IL reimbursement before distributing the balance to the LPs. But yes, my interpretation is the same as yours.
So that means that IL still exists, but is reimbursed by the platform when faced. This works because the staking is done with a single asset but BNT is minted to set up the “pair”.
Question: Would a new partnership be presented to us today?
Sean: Not today, we’ll be dropping an announcement for USDC listing tomorrow though.
Thank you everyone for attending today’s AMA I hope all of your queries were answered succinctly!
Thank you for being a part of the Centaur Community.
By combining the best elements of decentralised finance with measured regulatory control, Centaur is bridging DeFi and traditional finance. For more information, please visit our website, join our Telegram community discussion group and announcement channel.