30 Aug 202022:08
Peanut AMA Recap
Cryptodiffer TeamHello, everyone!😁
We are glad to meet here
Alex Momot, CEO of peanut.trade, (@AMomot)
Alex MomotHello and nice to meet you!😀
Cryptodiffer TeamLet`s start from the introduction questions!
Q1: Can you introduce yourself to our community?
Alex MomotMy 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 :)
Cryptodiffer Teamthank you!
Q2: Can you briefly tell us what is Peanut in 3-5 sentences?
Alex MomotSo 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 ;)
and the last question from us
Q3: Let`s now talk about the milestones you have achieved so far and about your upcoming plans
Alex MomotOur CEX-DEX balancer is live now (in close mode). DEX onchain part should be launched during several weeks. Just finished frontrun protection and working on MEV protection/mitigation.
MEV - it`s a unfair behavior of miners when they could take preferable tx with lower gas before your tx. We don't have exact figures about what percentage of ETH hash rate involved in MEV, but a week ago we have finished new version of our DEX onchain balancer and it works fine despite MEV.
Total trade volume since September is $20m and now our monthly revenue about $80k
Cryptodiffer TeamIt is time to move to the community questions part.
Let's remind AMA rules to the community😊
Cryptodiffer CommunityCan you tell us how you came up with the idea of creating the Peanut solution? Was it due to impermanent loss or some similar personal experience that made you understand that there would be room for such solution?
Alex MomotYes, it was my personal experience after creating REM/ETH pool on Uniswap. I`ve started digging what is impermanent loss and why there are no built-in mechanisms for price balancing inside Uni. Then we made a research and figures of losses were incredible
Cryptodiffer CommunityAs crypto users we don't want to lose our assets to some scam projects that run away and disappear with our money so why should we invest in the Peanut as a long-term investment?
Alex MomotWe are not anon team. I`m in space since 2013. We started Remme 5 years ago and have built several products - Keyhub, Auth, Swapy. Our tech team has 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
Cryptodiffer CommunityNUX tokens will be unlocked during 750days in equal parts each second but will this not really affect directly the value of the NUX tokens in the market, through the continuous increase in supply in each unlock?
Alex Momot40 million NUX will be minted at genesis. But circulation after the sale will be very low on day 1, and few percents on day 30.
It's a very good figure cause now most of projects do partial unlock up to 30%. Our schedule is much better and will help avoid dump on the start and should help a lot with token performance once algorithms will start buybacks.
Cryptodiffer Community1. Since all actions are performed on a smart contract level and knowing fully well that they are a bit slow, how can you work fast when the network is overcrowded and bottlenecks appear bearing it in mind that Lattency is essential in what you're trying to do?
2. Is there a way that you can show users how efficient your arbitrage method works?
Alex Momot1. Yes, sometimes network works slowly and we can`t do anything with that right now. I believe Layer 2 solutions, upcoming ETH 2.0 and other initiatives will help with that. But now gas fees and network problems - it`s just few % from total operating time so can`t be considered as huge problem
2. Here is the screen with one trade example showing giant gap of prices between CEX and DEX exchanges allowing our protocol to catch the difference:
From 0.19 eth to 2.86 eth in one trade means giant inefficiency of current AMMs and great revenues for our algorithms and NUX holders as a result
Cryptodiffer CommunityWhat is your vision of the future in integrating and interacting Peanut with the rest of the digital economy? How are you going to market and create demand for your CEX-DEX balancer product in this competitive crypto space?
Alex MomotMost projects try to solve IL problem but their decisions are either limited to one specific pool or very limited in liquidity. We have chosen another way - build universal protocol for all leading AMMs and operate with $3,5b liquidity pools (Uniswap, Curve, Sushiswap, Balancer) so gains for our users will be much higher just because of higher volumes. Peanut is a very flexible tool that can be implemented with almost any pool. Our internal tests have already shown effectively work with such giants as Uniswap, Curve and SushiSwap.
Cryptodiffer CommunityIs Peanut a fork of an existing protocol, or have you prepared it from scratch?
Alex MomotWe have built it from the scratch or better to say we used our existing product Swapy.app back end that analyzes orderbooks and finds best route to perform a trade across CEXs and DEXs
Cryptodiffer CommunityYou said in your website: “when large trades are placed on Uniswap, the Peanut pool automatically makes a corresponding trade on CEX or other DEXs. Since the Peanut pool is already connected to these platforms, orders are executed super fast” I guess you are connected trough API, how can you guarantee that the API connection will never fail?
Alex MomotIt fails quite often so sometimes we have trades with losses. Moreover, there are some troubles with fake token contracts, withdraw/deposits limitations from exchanges and many others. So our system is quite complicated and still need a lot of attention to support. But there are no such problems in DEX on chain part.
Cryptodiffer CommunityCan you explain the conception of the "perfect token" ? What do you think makes a perfect token, and will this vision materialize soon or will it need more time for further development?
Alex MomotPerfect token - it`s a token with real working token economy powered by revenue/profits/utility. Unfortunately it`s rare situation in crypto 😂😅
Cryptodiffer CommunityWhat are the specifications of your project that makes you unique and different from others? Why should we buy/use Peanut instead of other projects?
Alex MomotToken economy via buybacks from day 1. Great room for growth with AMMs volumes rise. Real use case and high need for users with proven market
Cryptodiffer CommunityCan Holders of a small number of NUX tokens vote on management proposals?
Alex MomotYes, we are planning to introduce a governance mechanics over time, but other ideas on the markets looks not very efficient (Uniswap) so we should spend more time evaluating all options and ways how to create working governance system based on fair token distribution model
Cryptodiffer CommunityWhat do you think is the biggest problem Peanut will solve which is not solved by other projects and why this is the problem important?
Alex MomotFundamental AMM problem with huge price difference over different markets and architecture drawback based on price determination by pools ratio
Cryptodiffer CommunityWhich area are you currently focusing on? (DeFi, Stake,Dapps..) and what's your goals in this year ?
Alex MomotYeah, 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
Cryptodiffer CommunityHow is the NUX token used and used in the Peanut platform? What policies will you have to encourage what NUX token holders to hold for a long period of time and help them understand the profitable value of that hold?
Alex MomotPeanut 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.
We will have liquidity mining on our own pools with reduced impermanent loss, buybacks from day 1 and real token economy based on trade algos
Cryptodiffer CommunityHow do you plan to show the world that your product is not just useless blockchain solution to a non-existing problem?
Alex MomotTotal losses from slippage for Uniswap users is more then 1.5 billion dollars and growing. I think this figure is enough big for paying attention to this problem 😀
Okay guys, thank you for your questions!
Cryptodiffer TeamThanks for your time @AMomot
Thank you to everyone who took part!