AMA TRANSCRIPT — SPYKEFAST x LATTICE EXCHANGE
Date : 9 OCT 2020
Host : HunterX , GemFlair & Groot
Guest : Lattice Team ( Benjamin J Jorgensen , Mathias Goldmann , Alyze Sam)
Hello! Spykefastians & Blockchain Enthusiastic!
We recently hosted an AMA with Lattice Exchange , on 9 OCT at 9:30 AM PDT . So here we are up with AMA transcript, for those who missed the live session, this post will be saver & feeder of knowledge for them.
Round 1 — Introduction Questions Asked By Spykefast
Q1: By Gem Flair — Hii @benjorgensen , @mateogold and @AlyzeSam , lets start by introducing yourselves. Your individual roles in #lattice. Your experience in crypto and what led you to start #Lattice project?
Benjamin : Thank you! My name is Ben Jorgensen and I am the CEO of Constellation and am spearheading Lattice with @mateogold!
Back in 2016 I was CRO (chief revenue officer) for a group called Exo Works - we provided Fortune 500 companies with a playbook for adopting new technologies (AR, VR, Blockchain, etc.) I learned a lot about blockchain technology from an advisory standpoint. Living in San Francisco, I had first hand access to people building great technologies. This is where I met the co-founders of Constellation. I was serving as an advisor to a bunch of (normal) tech companies and this introduced me to a whole new world of doers! That is when I REALLY learned about blockchain (sans crypto). Consulting on tech is one thing, it is another to build something great and see people use it. Over the last 5 years I have made radical investments across several industries and with different stage companies. This has allowed me to explore real opportunities that are the future and work with a-list and creative minds.
Mathias : My name is mathias goldmann and I’m spearheading Lattice together with Ben.
I’m always looking for things at the frontier and what’s next. In that spirit I was looking for ways to transmit money globally without the delays and hurdles of legacy finance. I found BTC in an early forum in 2011 and got really excited. Watched the entire unfoldment since and got really excited when smart contracts were first presented - synchronistically that was when I was looking into global identity solutions - and now as Co-founder of Constellation and Lattice we are ushering in the third generation of Blockchain technologies centered around a new consensus algorithm and a mindblowingly different infrastructure logic - with tons of new applications and use cases.
Alyze Sam : Thank you. I’m Alyze Sam. I’ve been in blockchain for coming on 6 years. Authored the first and only texts on stablecoins and joined the Lattice team as a fan of Constellation. I’m the CMO and will sit here to support and watch our guys shine. :)
Q2: By Gem Flair — What are the core features of Lattice which makes it special in Defi space ?
Mathias — The unique thing about Lattice is that it is built on a groundbreakingly new infrastructure technology - The Constellation Hypergraph. The Hypergraph is a competitor to Polkadot and Ethereum. It features full horizontal scalability, near instant transactions and consistently near zero fees. It is an operating system that allows for the buildout of Lighthouse applications like Lattice. Lattice features best in class DeFi features like multiple asset specific AMMs, aggregrated liqudity pools, smart routing and cross-chain interoperability with cross-chain pools and rewards. There are not many functioning ecosystems out there that have a fully functioning mainnet running that can implement cross-chain swaps.
Benjamin — The DeFi space is rather special and starting out. We can bring more proessionalism to the space and focus on expanding to the traditional securities and financial markets. COVID has made us aware that centralized financial systems are broken and printing money isn’t just the answer.
Q3: By HunterX — What is hypergraph, what is the main role of Hypergraph in lattice ?
Mathias — The Constellation Hypergraph is a novel mainnet technology that features high throughput as well as economic and technological scalability. That means our infrastructure is meant to process high throughput and the throughput grows with the number of nodes on the network. We see it like a microsoft operating system. You have a powerful operating system as the foundation and now people want to see what you can do with such an operating system. So we are building lighthouse applications like Lattice to show what such an infrastructure can do. The same way Microsoft built excel, word and access as foundational pieces on top of their windows operating system.
Benjamin — So we are building lighthouse applications like Lattice to show what such an infrastructure can do. The same way Microsoft built excel, word and access as foundational pieces on top of their windows operating system. We anticipate that people will be starting to build their own solutions on the Hypergraph soon when they discover that they can scale their business model much easier than on ethereum and that they can integrate blockchain technology extremely easy into existing frameworks.
Thus as developer and user adoption are the goal for the Hypergraph and Lattice we expect another wave of applications and token raises on the Hypergraph. Scalability is not just about the technological progress, but the economical, social, and operational aspects as well: it needs to incentivize multiple layers, be easy to procure and consumer, and work with a multitude of use cases.
The hypergraph is a new layer that will weave the next digital world together - bridging Web2.0 to Web3.0
Q4: By HunterX — What is the main role of LTX token ? What are the benefits of holding LTX token ?
Benjamin — LTX is a governance token. It will let participants orchestrate the Lattice ecosystem and provide insight into how it operates. LPs will be rewarded in LTX. LTX will give them access to governance of the Lattice Exchange. We are exploring some really unique things around the governance of trade settlements and alternative business models.
Mathias — Our goal will be to give governance participants the ability to create scalable businesses out of Lattice. What we are doing here has not been done before. LTX could be used for fee rebates as well allowing holders to save on trading fees. DAG holders will benefit from LTX as they can get rewards for the liquditiy they provide on cross-chain pools.
Q5: By Gem Flair — Security is one of the main aspect that is very important at the enterprise level, how Secure #Lattice is?
Benjamin — Security comes baked in the Hypergraph and in Lattice through multiple angles. Security is one of the aspects why the federal government is working with the Constellation team to append security to data pipelines and comm channels. As we have done a thought excercise around black swan events - we believe that security fro users comes in by the fact that the Hypergraph on which Lattice functions is scalable.
With economic scalability, you can only build a business on top of a network if you can decide the margins vs having the infrastructure dictate it for you. We like our users and governance to have more control and freedom.
Additionally, we have put together this diagram to show how we have multiple layers of security. Beyond double spend, we have multiple (concurrent) consensus mechansims as consensus is one of the key features of a decentralized network and no network can optimally be run by one consensus. By using multiple conesus mechanisms, we assure speed and security.
Mathias — yes, and that means in a black swan event, when capital rushes to the exit in the entire market - people won’t get stuck in a smart contract because Gas fees are too high to withdraw or unstake. That means Billions of assets are at risk due to the non-scalable nature of the ehtereum infrastrcuture. It is real and we have seen frontrunning with cryptokitties and many uniswap listings. On the Hypergraph frontrunning as we know it will not be possible and creates a more fair market landscape. Fluctuating fees create a lot of uncertainty - so having fixed fees on lattice will improve the user experience significantly and derisk users.
Q6: By HunterX — As Lattice is using Dag Network , So what type of benefits Dag holder can expect from Lattice project?
Mathias — Good question. The biggest benefit for DAG holders is to supply their liquidity to cross-chain pools and be able to earn LTX tokens. That means the DAG community can be actively involved in the governance and growing the first lighthouse project on the DAG Hypergraph. This makes both DAG and LTX more interesting from an ecosystem and user perspective.
Q7: By HunterX — Who are the institutional investors of Lattice? How much fund you raised so far? & Any important dates for the Public sale ?
Benjamin — We have successfully complete our private main sale for Lattice (we were oversubscribed in a matter of days from our first post in Telegram and before we even officially kicked it off). We have some of the best in class when it comes to backers of Lattice including notable names in Asia and Europe. Our goal was to expand the story of Constellation through Lattice and widen our community reach. Over the next week, we will be making some announcements that highlight some household names in crypto - this will push us to the top of every conversation.
Round 2 — Questions Asked on Twitter & Telegram For Lattice Exchange
Q1: By @EndtimeProphet2 - How are you able to build on both Ethereum and Constellation, what advantages does using this dual chain bring and what’s your Comparative advantages in this DeFi season?
Mathias — We are able to build on both due to the fact that our keypair algorithm is compatible wit ETH and BTC already.
That means we already have cross-chain compatible wallets built into our infrastrcuture. As such that allows us to build and interact with both chains quickly and easily. We will build out Lattice in stages. V1 will be built on ethereum and we will move to cross-chain and cross-chain pools by our V2 and V3 early next year.
Benjamin — Eventually we will replace ERC-20 for our own DAG standard and allow developers to build their own token on our network in the same way that people do with Ethereum but in a more robust, scalable way.
Q2: By @HoffinRick - You’re currently running two projects simultaneously, Constellation and Lattice Exchange. Could it cause some difficulties for you considering that resources are limited? How will these projects supplement each other?
Benjamin — When you have incredible founders and a great team - you can move mountains. Lattice is a great way to show people the potential of our ecosystem and the features and functionalities of Constellation’s Hypergraph. Lattice is the financial arm of Constellation. Back to the operating system example - Lattice is like Excel. There is a lot of upfront work needed to highlight our operating system/ecosystem so that people understand the value and see the network effect in using Constellation. It is not an easy feat to build two different P and L’s but it just requires a lot of good people that are at the top of their game.
Mathias — It’s all about time management and resource allocation. Ben and I are spearheading Lattice but Lattice has its own dev team so we are not drawing away from Constellation core.
Q3: BY @annasmirnn - How does Lattice plan to make the UI/UX of the exchange intriguing enough that even the newbie investors could take advantage of the cross-chain swaps & liquidity pools through Lattice? Currently it’s rather complicated unless you’re really into the space.
Benjamin — It should be extremely easy - this is what we want to do - the user interface drives utility and adoption.
Since day 1 at Constellation we have been constantly tweaking our narrative to appeal to more people - this includes reimagining blockchain as a whole and its potential. This has helped Constellation build a core following - we educate our community to help us evolve our business and how it can be easily adopted. Making it super simple is what we are striving for.
Mathias — Blockchain and even moreso defi are very technical and hard to understand technologies. Having an easy UI and an infrastrcuture that is liquid with potentially all existing mainnets out there will help to drive user adoption. Addtionally we are very experienced in building thriving communties and governance already.While we are trying to make it as easy as possible defi has its very own logic that is a path leading into the future of financial applications on the blockchain. That means users really need to learn and understand how these mechanics work. Don’t interact with something you don’t understand.
Q4:By: @tv100029 - What are the Solutions to Improve AMMs ? Does Lattice support On-Chain oderbook ? How will Lattice deal with the Current Limitations of AMMs: Leverage, Shorts, and Impermanent Loss (IL) ?
Benjamin — At this point we will not be doing On-Chain order books. We are exploring this and are evaluating options in the future.
The massive value proposition to improve AMMs is that Constellation’s microservice framework will allow for more complexity in trade algos - using off chain data and blending it with existing AMMs. Smart contracts can’t do complexity - they can’t handle high computations - this is where we shine and why we have a team of incredible data scientists building a protocol that can evolve with 5g and advanced data complexity.
Mathias — AMM are rather simple and current AMMs are a shotgun approach. With custom AMM for specific tokens we can achieve an optimized environment with less slippage and better ROI. e.g stablecoins require differetn AMMs than utility tokens
with the limitations of the ethereum EVM we can’t really do super complex fucntions which is also another reason to use the Hypergraph.
Q5: BY:@regard94 - The United States government has been using Constellation’s technologies in recent months to create a trustless transaction system with secure tokenizing to DLT (distributed ledger technology). How can these technologies be led further and utilized by Lattice Ex .
Benjamin — The complexity of the Federal government and their use cases are basically training us for anything and we are learning how advanced systems (and NEEDS and Capabilities) work. The largest producer of data is the Federal Government and they are exploring and researching extremely advanced solutions that will make them competitive to other countries 5-10 years from now. Learning how their systems interoperate and scale is fascinating but it is also giving us building blocks for the financial frontier with Lattice. The Federal Government isn’t using Constellation for financial gain but more safeguarding the world’s information. The financial frontier is all about monetizing the world’s information - the two directly correlate to one another but with different OUTPUTS. Creating a financial layer further drives innovation (sometimes faster than security) - but the two help educate one another.
Q. 6 BY: @malachi456- Why do you use DAG as Layer 2 chain to solve the problem of the Ethereum blockchain upon which Lattice is also build, what Comparative Advantages does DAG give over oyejr layer 2 chain like Matic, chromia etc
Mathias — DAG is a layer one solution.None of the other solutions can run consensus over complex data types Addtionally we are a truly decentralized mainnet. Real consensus on a DAG without masternodes or the like.
Benjamin — Layer 2 would be Lattice and various applications. DAG is a layer 1 - we are not a fork of an existing base layer - we built it from scratch.
Q. 7. BY: @Nilwan-
✅ Increasing Token price
✅ make Token Valuable
✅ Building Community Trust
From 3 aspects above,. I want to ask,. Which one the most important for you??
If all above are important for you,. Which one that Will you do first??
Benjamin — I am going to respectfully decline on this.We want to build a valuable organization through the things we build.We are in the standards business - this takes trust, learning, and time - which will result in ubiquity.
Round 3 — Open Telegram Chat questions
Q1: By Jaki — What exactly is impermanent loss?How does a liquidity provider encounter impermanent loss? What are the major factors that can influence the impermanent loss that a liquidity provider may experience?
Mathias — Impermanent loss is basically another way of saying un-realized loss. YOu incur it if the underlying asset would moves faster than the farming pool position. Thus taking a position in a farming pool is akin to a trading position that can incur loss of the asset prices move.
Q2: By Taphasya — What is $LTX consensus mechanism or masternodes? Can you explain more detail about it?
Benjamin — LTX will be built on the Constellation Hypergraph in the last buildout stage. Check out the Constellation Whitepaper for our Proof-of-reputable-oberservation consensus.
Q3: By John — With Constellation being the only decentralized network that the U.S. Government has validated, how do you expect it to help with Lattice’s expansion in the U.S. as well? That’d surely be a huge advantage for Lattice’s global adoption!
Benjamin — Hi John - love the COTI logo.
We are focused on creating a standard across data colleciton and transportation. This is a rather new frontier as data storage has been the focus for a long time. In this new frontier, we are making inroads with multiple federal agencies that will use our standard for transporting data securely. Working with the federal government is just one path (think Palantir's strategy and how they started). The Federal government is known for driving research and exploration and many instituttions across the globe see the US government as validation. This validation is helping us create net new conversations with commercial entities and for profit organizations that are looking to create more robust data strategies.
Q4: By Aleksandr — Does Lattice have some sort of token burning mechanisms and are the tokenomics of LTX in general inflationary or deflationary?
Mathias- supply is fixed at 100m until that cap is fully distributed it acts infaltionary within a deflationary model.
Q5: By Dong — is an investor. I am very afraid to leave assets on the new exchange unsecured. Give me something to trust #lattice.
Mathias — smart contracts will be audited and the full buildout will reduce risk of assets getting locked in by means of a network congestion like on ethereum.
Q6: By Yvette — Do you create events that allow developers to come into the website to search for loop holes?
Benjamin — Not yet - but we have some things up our sleeves that will leverage our amazing community to help us kick start our developer initiatives that focus on building on Constellation’s Hypergraph.
Q7: By kaitlyn — What is your strategy for building a strong community? And how important is the role of the community to your project?
Mathias — As for community adoption we have ample experience on how to govern in a decentralized fashion, as we have proven with the Constellation governance board. Within that structure we have multiple sub-groups that are self-organizing - and were for example responsible not only for developer outreach but also the brand video you can watch on our website www.constellationnetwork.io
The minute you have a great value proposition and a proper SDK developer attraction is much easier and ties into our existing networks and outreach strategies.
Q8: By Antoneete — What are some of the major achievements that the lattice protocol has achieved and what milestones are planned in the upcoming months/years?
Mathias — MVP, V1 in November.
Q9: By CIO — There we see many projects that claims they are fully Decentralized. But they done their work in a Centralized way. How can we sure that LTX is fully Decentralized? Can you please tell us what’s $LTX working method?
Benjamin — I agree with this and why it took us about 2.5 years to build our protocol. We are truly decentralized - if Constellation were to ever go down, our community would be able to reconnect end-points and keep the network running. Our community support would also be in existence and would maintain the network. We are not a master node that connects to just light node - we have a manual and programmatic governance of the network to embrace true decentralization.
Mathias — LTX is built on a decentralized network that is run by the decentralized governance group of the hypergrpah node operators.
Closing Remarks :
Gem Flair — Wowww.. You have answered so many live questions. 👍👍
Thanks @mateo and @benjorgensen for taking time out of your busy schedule and for enlightening us in detail about #Lattice.
It was amazing conversation with two dashing founders of Lattice Exchange. 🙂
Benjamin — This was a great AMA - we would be happy to follow up later to answer your questions.
1) Lattice Exchange Website : http://Lattice.exchange
2) Telegram : https://t.me/latticeexchange
3) Twitter : https://twitter.com/LatticeExchange
4) Whitepaper : https://lattice.exchange/Lattice-Exchange-Official-Whitepaper.pdf
5) Spykefast TG : https://t.me/spykefastofficial
Contact Spykefast Group (TG Members — @realsch & @Gem_Flair) for promotions and AMA!!