Recap of AMA with Centaur Team
Dear Centaurians,
Thank you for being a part of the AMA with Centaur’s Co-Founder Sean Kor today.
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 AMA! Just a few short and quick updates today from our end so feel free to ask us any questions you have and I’ll do my best to answer them!
Sean: First on the list is Governance!
As promised, we’ve rolled out the governance platform (https://t.me/CNTR_ANN/180) for CNTR and WHEY using snapshot.org as a platform. You can access it either from our page directly or via the projects page on a snapshot. We’ve implemented three tiers of governance for it
Admins: Core team
Members: Centaurians
Public: Everyone else
Proposals can be raised by Members (our friendly Centaurians) so they will help to vet and structure the proposal such that everyone can make informed decisions when casting votes.
After our discussions, we’ve opted to focus the Cswap related governance roles to WHEY only to preserve its utility and in the interest of fairness to Cswap supporters and LPs. To be equitable to long-term CNTR supporters, we’ve adjusted some of the metrics for the airdrop and will strive to get it done soon. The airdrop will be done using Polygon network WHEY.
Sean: On the topic of Cswap, we’ve been making some headway into CNTR and WHEY staking and trading. We’re currently working with a close partner on the testnet version and it’s proceeding well so far. Once we’ve got it integrated, we’ll be sure to provide more updates! This would also mean that in the near future, we can expect greater support for more tokens and listings on Cswap!
Sean: Apart from these updates for the DeFi and products, the rest of the focus has been on the CeFi side. Activity levels have been high on the regulatory and compliance side as we witnessed the exit of Binance from the Singapore market. On our end, the impact has been more towards rising concerns of similar nature, although I’d say that we are still on track and the risks are lower as the products are planned to launch in a manner that is enterprise and institutional facing, instead of a retail facing.
Sean: Anyway the last update is regarding the whitepaper and roadmap. We’ve been tied up these past two weeks but we should be able to get the updates rolled out by next week so look forward to that too!
[AMA Transcript]
Question: Are there any updates about the Airdrop, i do remember the team mentioning planning it some time back.
Sean: Yeap yeap this is still in the works, we recently made some adjustments to the planned metrics since we decided to focus purely on WHEY for Cswap governance. Apart from that, there was also a liquidity issue as the airdrop is taken directly from the “dev funds” which are also emitted on a per-block basis from the farm. For the Polygon launch, we drew into these funds to provide the initial liquidity for the ETH <> Polygon bridge, and also to provide liquidity for the Quickswap pairs.
Question: Will these [CNTR & WHEY ] tokens are for both the swap and the farms?
Sean: Yeap for sure! Ideally, all farm tokens should be for liquidity provided to Cswap for the purposes of reducing the slippage faced when making trades. That would also mean that once its launched, the WHEY staking campaign would be adjusted to the future CS-WHEY LP tokens instead of directly staking WHEY.
Question: Are there any partnerships in the horizon that will be announced?
Sean: Yeap! Without giving away too much, there are already 3 partners that we are working closely with (one of which is the oracle network) and the other two are working on integrating with the upcoming Centaur Swap V2 (which will support a larger diversity of tokens).
Moving forward, the bulk of the partners we’re looking for would also be in the form of “listings”, with the goal of treating Cswap as something closer to a CEX while still being decentralised.
Question: I’ve noticed a big variance in swapping between pairs which seem to be a reversal of results from earlier tests I ran. In these early tests, the swap was of better value than QuickSwap etc, now it’s the opposite. What is the reason for this? My assumption is that it’s something to do with TVL
Sean: This is most likely due to the K-value of the curve algorithm, which determines how steep the curve is (and therefore the slippage faced). We’ll do a quick update on it after this AMA which should re-adjust the slippage. In the long run, this update would likely be a part of the governance decisions (in relation to how frequent the updates should be and possibly fully decentralising the process)
Question: I definitely don’t have a good understanding of this part (I skipped all the maths in the whitepaper) but could this not be automated?
Sean: This is pretty deep into the math behind Centaur Swap but the short answer is that automation of the K-value updates would mostly be defining a fixed period (every X minutes or blocks). If the update clashes with certain conditions, it could result in a liquidity debt which has the potential of being an attack vector. For now, we’ve opted to work with a manual update process but in the future, this could be something that’s worked into the governance with a multi-sig or voting threshold to execute, as long as the holders are reasonably familiar with how it works.
Question: So is it fair to say that there will be drift in the K value over time given certain conditions (which I don’t understand) and that manual ‘correction’ (whatever form this is undertaken) will be necessary for the foreseeable future? If this is the case then I wonder if the swap could lose a competitive edge if the K-value isn’t rebased optimally?
Sean: Nono the K value is a mathematical constant (you know the famous k in x * y = k). In most cases, it represents the TVL of the platform in a manner that isn’t denominated in USD but the total quantity of tokens, as such, it is inherently tied to the slippage calculations (higher k > greater TVL > smoother curve > larger area under the graph > larger volume).
In most pair-based AMMs, the K value is updated whenever liquidity is added or removed, which is relatively straightforward since liquidity is always added/removed in equal proportions. For Cswap, because staking and pools are managed individually instead of in pairs, K values have to be simultaneously adjusted to ensure the liquidity of the entire swap is balanced. This is fine in most circumstances but if the K value is updated while trade is being settled, it could lead to some rather risky interactions.
But yes, we will be able to semi-automate this process in the near future, though it isn’t an immediate priority. We’re currently looking at doing this after the v2 launch!
Question: As such will we be moving into a more Centralised form of governance like kyc or some form of increased compliance?
Sean: It will really depend, I think KYC for the projects that will be listed is definitely something we would do on our end, but KYC of the users is not part of the plans.
Question: I saw in chat a few mentions of the possibility of centaur moving towards increase interoperability amongst rust-based chains like Elrond and Solana. could you give more insight on this?
Sean: We’ve got the long-term goal of deploying Centaur Swap across all the different protocols and integrating all of them to make it protocol agnostic. This is going to be done in incremental phases, starting with deployment on these chains and gradually linking them one at a time. We’re starting with EVM compatible chains for now as they are easier to integrate with and the technology is battle-tested. Most oracles are also natively integrated with these protocols which is a key deciding factor on whether Cswap can be deployed there.
Thank you for being a part of the Centaur Community.
About Centaur
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.
Website | Telegram Group | Telegram Announcements | Twitter
Signing off,
Centaur
