MiniSwap AMA Recap

MiniSwap AMA Recap

CryptoDiffer team

Hello, everyone!😁

We are glad to meet here 

Chief Scientific Advisor of Miniswap (Jiangshan)

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

Hello everyone!

CryptoDiffer team

Let`s start with 3 intro questions from our team:

The first question from us is:

1) What is Miniswap about? Is there any advantages beyond Uniswap? What do you think are the weaknesses of Uniswap right now that Miniswap is doing better can beyond Uniswap?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

Let me answer them in three parts. I will first give a brief intro about MiniSwap, then talk about the potential problems and concerns of Uniswap, and finally how Miniswap is better than the existing ones

MiniSwap is a decentralised exchange (DEX) platform. It aims at enabling a connected network of DeFi ecosystems. MiniSwap provides a decentralised platform for exercising financial products across different blockchain eco-systems. The main challenges MiniSwap aims to address are sustainability and interconnected ecosystems.

Now, for the potential problems and concerns of Uniswap, I would like to talk about two aspects. The first one is that Uniswap lacks of quality control for the tokens available on Uniswap. That is, any token, no matter they are a scam or not, can become available for trading on Uniswap. This would lead to risks for users and investers.

The second problem is the sustainability. Uniswap leverages liquidity mining. Roughly speaking, it rewards liquidity provider rather than the trader. This may result in the lose of liveness (so sustainability) of the system.

As mentioned in the first point, Uniswap lacks of quality control of the tokens. So, once there is a system that provides a better user experience with better trading environment (including the quality of tokens), traders would go to the new system as they have no incentive to stay with Uniswap. This will reduce the total amount of reward to the liquidity provider. Thus, liquidity providers would follow the traders to the new system. Thus, there will be very limited number of traders and liquidity providers in the Uniswap and it will eventually die.

Now, lets talk about the advantage of Miniswap.

There are two aspects, amoung many, I would like to particularly talk about. First, the MINI token has its intrinsic value. The intrinsic value is vital to any blockchain ecosystem. MINI token will be leveraged to empower society management, global price oracle (for cross-chain communication), and to enable some other DeFi services.

There are two aspects, amoung many, I would like to particularly talk about. First, the MINI token has its intrinsic value. The intrinsic value is vital to any blockchain ecosystem. MINI token will be leveraged to empower society management, global price oracle (for cross-chain communication), and to enable some other DeFi services.

This is also related to the sustainability, which is one of the key challenges for DeFi protocols. Sustaining the long-term incentive and operation of a DeFi protocol is in particularly challenging. When the incentive mechanism provides tokens as reward to its participants, the intrinsic value of the token itself becomes the key factor for providing sustainability. MiniSwap introduces voting power as the first value (in a queue) of the MINI tokens, providing a transparent and accountable decentralised management service.

With this transparent and accountable decentralised management service, we will be able to provide a good auditing and managing process to improve the quality of products available on the miniswap.

To furtuer improce the sustainability, Miniswap also introduces the hybrid sustainable mining model. It would also help to bootstrap the miniswap ecosystem. For the bootstrapping process of a DEX, it is relatively easy to provide liquidity. However, attracting more traders are difficult. That is why Miniswap uses trans-fee-mining to bootstrap the system. Once the system is bootstrapped, we will reduce the amount of reward to the traders (according to our game theoretical analysis) to make it stable. However, traders will still gain a better revenue than in other platforms.

Now, as we solved the problem of attracting traders, the liqudity provides will follow the traders as we have a higher trading volume and the liqudity provides would gain more profit. This makes the ecosystem sustainable.

CryptoDiffer team

2. It was recently announced that Miniswap had a strategic partnership with blockchain security company Anchain.Ai which would further enhance the security of Miniswap by undertaking a code review and issuing a full audit report.  Miniswap will launch after the review process is completed.  Miniswap could be seen as taking security very seriously. What does professor Yu think of the current code vulnerability problems in the DeFi projects and what role does code auditing play in project?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

well, the code vulnerability and auding is a well known problem in both academic community and industry. It is needless to say that they are critical to any computer program including DeFi protocols.

First of all, you should all know the Patch Tuesday, which was introduced by Microsoft (MS) in 2003. Basically, every month the second Tuesday MS will release some patchs to the newly identified vulnerabilities to their Windows users. Other famous companies, such as SAP, Adobe Systems, and Flash Playe, they all follow the same rule. Of course that they provide non-open source products with very experienced developer team. Still, there are countless serious bugs identified regularly.

Now, this is the same for open source software. For example, Heartbleed on OPENSSL, which was a shocking news as attackers are able to steal all the secret info (password, session keys, or even TLS keys) from the servers.

For blockchains, there are way too many identified vulnerabilities, this can be as simple as the classic overflow or underflow, or could be the blockchain-specific reentrance attack. The latter leads to the DAO Attack where the attacker stole 3.6 million ETH, worth approximately 1 Billion USD today.

As a computer scientist specialised in system security, I personally have identified severl key vulnerabilities in the existing blcokchain systems including Monero, ByteCoin, and DigitalNote and many more.

So we know that no matter how good the idea is, without a secure implementation we may have a damage that we cannot afford on the good services we aim to provide. Thus, security and code auditing are vital to Miniswap, and they are always sit in the heart of the team.

CryptoDiffer team

And the last one from us, before we open the chat for community questions: 

3.There are some concepts of mining in Defi, (Trading as Mining) concept is no longer new as usual. However, relevant case in the past such as Fcoin basically failed and go burst. What demerits does Professor Yu think existed with these patterns in the past?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

It was introduced by FCoin in 2018. The main problem is that there is no mechanism in FCoin to prevent the speculators to create lots of (meaningless) transactions to only get the profit

With Miniswap, we introduced two mechanims to prevent this from happending.

First, there is a bound on the total rewad per epoch (e.g. a day)

Second, the reward to the traders will be reduced when the system attracted a good number of traders, in the way that it is still cheaper for the traders w.r.t. trans fees, but there is no incentive for them to create lots of (meaningless) transactions

CryptoDiffer team

Awesome, a lot of updates to come out!

Thank you for great answers!

I think it is time to start community questions round!

Cryptodiffer Community

•  Why do you charge fees if Miniswap gives us a 100% refund of transaction fees? Is the refund in $ETH or $MINI? Where does these funds come from?

•  The return percentages in Miniswap are great, 50-100%. How is this sustainable over time? How do these big returns benefit the ecosystem?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

Great questions. They are not fixed percents. If you look at our models in the whitepaper, they are adjustable with parameters. So they can be used to control the stability of the system

Cryptodiffer Community

What is this “NEW PRICE ORACLE” of MiniSwap?

Will it have BENEFITS to DeFi?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

Yep, it would enable the swap between different ecosystems, such as swaping between any token on ethereum and  anytoken on EOS

Cryptodiffer Community

DEFI being considered as the main TOPIC in the block chain lately, what’s HEDGET plans on DEFI SPACE ?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

for quality control, Miniswap will have a distribued community management system to evaluate each product before it is made available on Miniswap.

Cryptodiffer Community

Trust is very important in business. So, what makes investors, customers and users feel safe when working with MINISWAP? And how will you get the trust of many users that have negative thoughts about Blockchain?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

we rely on transparency — we are reporting our progress weekly. Later on after the bootstrapping phase, the management will be run in an automatic and decentralised way as well.

Cryptodiffer Community

Miniswap, Uniswap, Justswap… So many swaps. Why should we choose you?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

We are simply better 😊 We have a great team with better design principles and products.

Cryptodiffer Community

Who can Become the Liquidity Providers, What are the Requirements?

What are the main Benefits they will get ?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

any one can be LP, checkout our web interface with detailed instructions — every LP will get rewards to thank their contributions

Now, there are many questsion about quality control — we will have a decentralised management community to vote on each of the candidate product (like tokens) before they are made available

For the incentives, please take a look at our whitepaper — essencially, traders, liquidity providers, and coin holders will all get a share of the rewards (associated to the transaction fees)

Due to the limited time, pls check out the whitepaper for  detailed explainations

Cryptodiffer Community

How does Miniswap intend to support technological innovation while protecting the interests of investors?

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

for the bootstrapping, the team has reserved tokens and have attracted investors. Later on, this would come from (a part of ) trans fees

I also received several private messages askign for collaboration. Thanks for your interests. I will refer you to to @MiniSwap for any colllaboration discussions

Chief Scientific Advisor of MiniSwap, Jiangshan Yu

Thank you:)

Invest on Uniswap ONLY ONE official Address:0x4d953cf077c0c95ba090226e59a18fcf97db44ec

About MiniSwap; https://www.miniswap.org/why-winiswap.html

Website;.  https://www.miniswap.org/

Etherscan;  

https://etherscan.io/token/0x4D953cf077c0C95Ba090226E59A18FcF97db44EC

MiniSwap whitepaper;   https://www.miniswap.org/files/whitepaper.pdf

twitter: https://twitter.com/Mini_Swap

telegram: https://t.me/MiniSwapCommunity

Website: https://www.miniswap.org/

Medium: https://medium.com/@miniswap.lab

Reddit: https://www.reddit.com/user/MINISWAP/

Github: https://github.com/MiniswapOrg

And join our COMMUNITY: https://t.me/MiniSwapCommunity

Cryptodiffer TEAM

Thanks for your time Jiangshan ! It was great session!

Thank you everyone who took part today, great questions!

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