DeFi LEGO-Builder — See how Blockswap integrate fixed-rate products with multiple DApps
Question1: Please briefly introduce Blockswap Network to us by using several keywords or sentences to describe the characteristics and features of your project.
Let’s invite Scott and Matt to answer this question and talk about what Blockswap Network is in your point of view.
Scott：I’m the COO and Commercial Lead of BlockSwap I entered the blockchain sector in 2014, I previously held the role of Director of Global Business Development at Wanchain Foundation, a blockchain protocol focused on cross-chain smart contracts.
Prior to BlockSwap I have been building and leading WeWork’s blockchain-focused incubator where I have been part of the growth in launching Labs into 86 locations across 19 countries. I helped to support 30+ startups in London in the areas of growth and operations including companies (MakerDAO, Celsius, Chainlink) and mentors from (Binance, Pantera, Tezos). Forbes
Matt: I am coming from a Blockchain architect who specialized in cross-chain, PoS architecture also headed the multi-chain asset tracking network DSCAN and Social money platform woolah prior to Blockswap.
Blockswap came from the right to exit as the ultimate freedom, our system is focused on giving 100% control to users on their money and they could move wealth from one chain to another. Since everything in blockchain happens within a “BLOCK” Blockswap seems to be perfect bringing SUPERFLUID Asset yield mechanism in a cross-chain narrative
Question2: Today we’ve got this chance to invite two of the main team members of Blockswap Network. Can you share more about some stories behind Blockswap with us? What brought you all together to become a team？
Scott: Matt and I met when WeWork Blockchain Labs was sponsoring a Tezos Community event. Matt was a speaker we got speaking about using PoS for long-term, fixed-rate and sustainable savings products and I liked the idea of having a decentralized product you can rely on even when the price of the crypto market falls.
Question3: In your opinion, what problems does Staking have in the DeFi space, why does Blockswap choose the section of fixed revenue?
Matt: We at Blockswap believe the mainstream adoption for Defi will be thru solving real-world problems of everyday users, the best way to do that is ensuring they have a safer and easier place to preserve and grow their wealth on-chain we do this in two ways, providing a non-speculative saving market-based PoS native yield while providing the user onboarding very easy and cost-efficient manner This is the crux behind Open Saver — as it named it is Open for everyone and inclusive in terms of 100% permissionless every Saver Account is completely collateralized with staked PoS asset and be available on-chain there is no uncertainty around lending and borrowing demand exist in current Defi.
Through Open saver we enable users to receive their native staking yield, in addition, they receive 10% APY on ETH by adding liquidity into the $aver pool.
Scott: It’s really interesting to look at the market. Defi TVL has grown by over +40x in the past 12 months and we have seen a flux of different tokens incentivizing short-term, super high rate yields. However, until now no one has been able to offer a long-term, fixed-rate, and sustainable savings product. This is where we are trying to focus. A Sustainable, stable yield source. Individuals and institutions can park billions if not trillions on dollars using PoS chains.
Question4: Fixed-rate loan is a very common type of loan in traditional finance, but it’s still in the stage of severe competition in the crypto world. Currently, some solutions such as Yield Protocol and UMA’s yUSD have gained certain recognition in the market, so what are the differences between Blockswap and those two projects?
Matt: UMA and YIeld protocols and so many others are trying to break in with Fixed rate products for DeFi; however, all these are susceptible to high-risk DeFi tokens. Blockswap fixed-income product suite is based on PoS L1 asset that carries native yield and a solid monetary base such as ETH2, ALGO, ADA, and DOT. In a nutshell, earlier examples are for high-risk traders with some stable base returns short-to-medium term. Blockswap is more for catering to everyday users who want a stable yield for a mid-long period and can cater to millions of users handling multiple billions without exposing their capital to risky bets.
Question5: Blockswap has designed a fully automated immutable smart contract that is based on an interdependent two token system (dToken/SLOT). Can you share with us its main functions?
Matt: BSN provides all of this 「on a fully automated immutable smart-contract」. The system is architected based on an interdependent two token system (dToken/SLOT). BSN has a specific type of onchain staking node called Stakehouses which holds a SLOT token — a perpetual bond token as equity of the node to incentivize Stakehouses for a continuous cash flow. This ensures the staking operations are taken care of and protects normal stakers from the slashing risk, who receive a non-slashable token 1:1 for their deposit on dToken that continuously accrue yield from staking rewards.
We focus on 2 types of users.
Users who want to stake their base native token and earn higher-yielding inflationary rewards.
Users who want to bring fiat and earn sustainable APY Savings without having to touch PoS themselves.
For stakers we have simplified the staking process and isolated the slashing risk where we enable stakers to bring 32ETH and join a specific onchain staking node called a Stakehouse.
In return for their 32 ETH, a user receives 24dETH with dETH being a 100% non-slashable 1:1 token to their undying stake (i.e liquid staked ETH) and 8 SLOT tokens which is the perpetual bond token representing the equity of StakeHouse node.
Question6: Open Saver is the first fixed revenue product of BlockSwap, can you briefly introduce it to us?
Scott: Our first anchor product, Open Saver, enables a permissionless Universal Basic Savings Account scheme on USD with an average yield of 7% accessible for anyone on an internet connection forever, which is fully backed by a PoS Bond Index. Meanwhile, the market opportunity for Open Saver services is practically limitless in the current near-zero interest world. BSN Open Saver Vault enables web and mobile apps to create USD depository accounts in a matter of minutes. With Open saver, any online startup from DeFi protocols, wallets to nimble fintech/non-crypto apps can incorporate DeFi enabled yield services into its offerings instantly and seamlessly.
Question7: What are the assets supported by BlockSwap? Are there any differences in the revenue of those assets?
Scott: Right now CommunityNet token is used to interact with our system and shall be converted 1:1 with the mainnet token.
10% circulating supply for the next 8–12months (CommunityNet Tokens).
Fully diluted tokens released over the next 5 years. Total supply is deflationary in its usage for the node running, saver minting, and commercial protocol fees.
MCap: Network price discovery shall happen at the time of the LBP*
Question 8: For value capturing, what is the tokenomics of Blockswap Network, and how do you stimulate the users to hold your tokens in the long run? What are some application scenarios of your token?
Scott: During this phase, users will be able to use the BSN CommunityNet token for accessing all our demo products and accrue incentives rewards for their participation. Furthermore, there shall be community-oriented incentives to propagate the protocol and its products to a wider audience.
CommunityNet tokens are redeemable 1:1 on the mainnet.
During the CommunityNet, users can use BSN products by holding our CommunityNet tokens. Activities include Staking for an LP share, governance-related incentives, and more; doing so, users shall earn more tokens.
Running Node on Compute Cluster for inflation rewards:
- L2 prover gadget
- Archival node (Arweave, Pocket network)
BSN token holders fee-earning options from Open saver:
- Minting fees from $avers
- Saverbond rebalancing swap fees
- Saverbond excess collateral early withdrawal fees Flashloan fee for using Bond Index asset and $averbond dtoken value for a fee
Question 9: Talking about the token, what are the value capturing procedures for the token of Blockswap Network? Do you have any plans for public sale recently?
Matt: As Scott said above. Public sale shall be in the next couple of weeks through a fair launch on Balancer then opening to Uniswap and other liquidity platforms like Sushi and Pancake.
Question10: Finally we want to drop this question to our COO Scott, what are the other plans Blockswap Network will do recently? When is the mainnet going online? Any new products being announced?
April — CommunityNet for ETH2 + Algorand
April — Balancer LBP + Uniswap for CommunityNet Token Launch
*BlockSwap is part of the Algorand EU Accelerator https://algorand.foundation/news/accelerator-europe
Then Launching Open Saver — Universal Basic Savings Account Scheme for ETH/ALGO. Next Chains (DOT, ADA)
We are launching our ETH2 CommunityNet (CN) through a protocol market fit exercise which is going live in April. The CN shall launch a unique token incentive scheme bootstrapping our genesis community.
~250,000,000 tokens will be distributed through an incentivized CN phase across 5 months.
For full details of the CommunityNet and Token here also 😁
CommunityNet is to drive a better alignment between users and our product's intended functional utility. We want to enable users to test our products in a safe environment and allow us to improve on the UI.
Users shall also learn how our AMM coordination layer works.
We reward users through CommuntiyNet token for their participation.
At the same time, we build a foundational user base for the mainnet going live in 6 months.
CommunityNet token is redeemable 1:1 with Mainnet token.
💙 Proof of Love — Join the Club! 💙
As part of the CommunityNet we are excited to give CryptoJ AMA participants here now access to join the CommunityNet by completing the Google Form.
The form shall remain open for 60 mins after the AMA ends.
Follow BlockSwap TG for updates — CommunityNet is going to be very exciting!
CommunityNet is through an interactive, gamified experience on Telegram and later Discord.