ViteX AMA Video Transcript 3/3
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The final part. Enjoy!
L = Luke Kim, Vite Labs CMO
R = Richard Yan, Vite Labs COO & Co-founder
A = Allen, Vite Labs Technical Director
L: As we talk about scalability though and expansion we have to address this question:
The main problem today with DEXess is an issue of liquidity and so for us, how would we solve these issues, what are they in the first place, and what other DEXs would be able to connect with ViteX in order to provide liquidity. What do you think Richard?
R: This actually is sort of similar to another question that was asked earlier. Essentially that's sharing and volume increase. So I think that DApp sharing has a lot to do with future BD (Business Development) efforts. If we were to get other centralized exchanges to also deploy their DEXes by using our protocol then there could be some kind of DApp sharing. In terms of the volume increase I think the participation has to do with the fact that the VX coin holders will be receiving all the proceeds from the exchanging fees and incomes which is a very attractive point. And remember the VX coin itself has no pre-mining nor public or private sale. There's a finite amount. There's zero inflation. And they'll all be distributed within two year's time. So I think that people want the VX coin and the way to get them. One of the most prominent ways is to trade and so this is going to get people to participate.
L: So on the topic of VX. We have a distribution timeline for VX and a question for you Allen:
Once all the VX have been distributed, all the tokens have been released, then how can our DEX get quota, how can our DEX contract get quota?
A: Yeah, definitely this is a good question. Yeah, I can answer that. After all the VX has been mined, that means 100% of it is distributed. We will definitely work together in a way with the ViteX community to work out a new plan. The basic idea is to take out a part of fee income to reward who stake quota for the DEX. But as I said, we are only responsible for bringing the proposal and will let the whole ViteX community to make the decision. This is sort of governance of ViteX.
L: So given that we have a DPoS, or delegated proof of stake consensus model, and given that we are like a representative democracy, a blockchain in which there's a representative democracy to control, and the technical logic of trust and consensus, given all of that, the question is:
Will it be possible to build a completely independent DEX in the future which is not even operated by the Vite team which might be inspired by and of course built upon the code that we release, would that be possible? This is a question for you Richard.
R: The question seems to me, how do we build upon this DEX for other decentralized systems.
L: Also that, and would any party, any entity be able to create a completely independent DEX that is not operated by the Vite team.
R: Oh I see what you are saying. So a couple of things: at the beginning, this project is developed through a centralized effort for better organization and efficiency in development, so we don't fall into the Ethereum 2.0 development trap where there's no developers, nor innovation. But over time as the technology matures I'm sure that we're going to give the power of development back to the community. In addition, because the code is completely open source, others are free to just take the code, either implement for the benefit of another decentralized exchange or just develop it independently as a new exchange. So all three different avenues are possible.
But essentially, for someone that wants to contribute to this codebase independently and for the Vite team not to be involved in the future that is definitely a possibility.
L: Absolutely. Now back to trading and traders I have two questions actually on the live stream. First, many exchanges are excluding US customers in order to avoid certain legal issues.
What are our thoughts on this and how would this affect ViteX? And then secondly, would ViteX require KYC for large volume withdrawals?
And so these are two questions I feel we could address and they actually are related to another question raised by a couple of our community members, which is:
Do we have plans to allow margin trading on ViteX? In terms of trading and traders would we allow margin trading on ViteX and what would we do with US customers, and what would we do about KYC?
R: Okay, in terms of US customers, we want to be fully compliant with all the laws for every country that where we are operating in. But first of all, I want to point out that ViteX is a piece of code. It's something being deployed on a platform. There's no custody of assets. As such, we're just providing a platform and not actually running an exchange. That being said, it is possible for the regulator to be interpreting the exchange as more than just a platform so we will be providing geofence for countries that do not allow access to this kind of trading activity. So that means a company like us will be providing some kind of restriction. In terms of margin trading, that's not something in the plans right now. Margin trading can be extremely attractive but it just increases the volatility of your return, so it can be a tricky subject. That's not something that we are exploring right now. Was there another question?
L: I think you basically covered it but it was what will we do about US customers and KYC.
R: So I think the KYC would be conducted by the gateways themselves. So if you were to do a large deposit or withdrawal of VITE native coins, there's no KYC associated with that, but for the gateway products that will have to be something undertaken by the Gateway, that would be a policy left to the Gateway.
L: So actually let's bring it back here, speaking about gateways and also relatedly zones trading pairs, so we have a question:
Is there a clear indication of which trading zones and trading pairs are operated by ViteX and which are operated by external operators? Would we have that publicized somewhere in an easy-to-read manner?
R: The answer is yes. There will be. I think the interface will be, if you were to hover your mouse over the trading pair, or there might just be an indication right next to a trading pair which zone that trading pair belongs to. There will be no confusion as to which zone the trading pair belongs to.
L: Perfect, so actually we're at the final question submitted to us by the community so we can answer this one and maybe if the live audience has any burning desires, curiosities you can field those questions here and I'll make sure that they're addressed.
But the final thing that our community asked us:
**What are our funding sources for VX's future development and how do we plan to get users onto the platform, so what is our strategy for getting trader adoption on ViteX, what is our strategy for getting DApps and getting projects to list on ViteX, and what is our strategy of course for getting operators to operate cross-chain gateways for our DEX.
Many, many things here, so feel free to take your time on this. Richard you can start off and Allen of course you can jump in at any point.
R: Okay right now the development of ViteX is funded by the Vite Labs foundation, so it will be capital that we raise. And as a point that I alluded to earlier, we basically spend the capital that we raise on actual development. It's a huge amount of effort both in terms of engineering and operations to roll out a heavy-duty DApp like this, so we're very proud that it's finally live. But in the future in terms of maintenance and upgrades we'll still be footing the bill for developing and operating this DEX.
And in terms of getting more users and participation, I think we have a few different strategies. The number one is that VX is a coin that allows its holders to share in the benefits of the exchange. So I think this in and of itself is already a huge attraction point.
Number two is that our DEX is now live. I think we have more bargaining chips and perhaps just more visual outcome that we can use in our BD efforts; so that others might become interested in using the protocol, running either as a centralized exchange that wants to offer decentralized exchange as an additional product, or someone who just wants to develop a decentralized exchange independently, or an existing DEX that wants to basically share liquidity and depth with us. These are all possibilities.
And I think maybe the last point is just that as more centralized exchanges run into problems, namely you know the 7,000 Bitcoin loss by Binance. There was a tweet that I sent out about four weeks ago about how a centralized exchange in Ireland, one in Singapore and yet another one in another country, they all got hacked or had their founders run away with the money, all within a matter of weeks. As centralized exchanges' problems get exposed more and more I think there will be a lot more attention on decentralized exchange. And then, the fastest, the cheapest, and the decentralized exchange with the best user experience would naturally stand out. And this would be perhaps the third prompt of the strategy in terms of acquiring customers.
L: Amazing, so this time I want to start with you Allen so Allen, Richard, then me. Final questions:
What is the thing you're most excited about ViteX? Why is it exciting to you personally that we're releasing ViteX?
A: ViteX has its benefits. First it's built on the Vite blockchain that is super fast and free. Free transactions is attractive because it is helpful for lowing the cost of traders. Another point that I feel exciting is that ViteX is an open platform. Operators can build their own DEXs on ViteX. Like I said, ViteX has provided APIs and SDKs. Everybody can plug-in to share the same order book and order matching engine but also keeps their own style of website UIs. For the users, the operators build entirely new DEX on their own but in the meantime share the order book and liquidity of ViteX of all operators. This is very attractive especially for those who are not able to develop a DEX from the bottom-up. Building a DEX is not easy because of technical barriers. I believe this is the most exciting place for me.
R: Okay, for me, we've obviously touted many benefits of Vite and ViteX throughout this whole interview. I think some things that have been understated or unsaid are two things I'm really excited about.
Number one is our team and number two is our community. I'm excited about this team because every day I come into work I get to work with amazing and intelligent professional individuals. And it's a lot of fun. And then the second thing about our community is just that I want to say thank you for all of your support from all around the world and for paying attention through all of our products for using them, telling others about them, and for giving us critical feedback. So these are the things I am most excited about.
L: So well first off I love Vite Labs. It's my favorite company that I've ever joined. We're all good friends in the company, by the way, like our CEO Charles and Allen, they were like on the same bed bunks together in college and smoked cigarettes together for the first time. Like, Richard Yan just had a baby and I watched as that happened.
I mean we're meeting milestones not only in professional life but personal life. So first off, we're all friends here and we do want to create something cool. Look at this slogan [points to shirt]. But what makes me excited about ViteX is honestly it makes our ecosystem a full harmonious Zen circle. As in many, many, many, many companies have specialized in one product or another product: we have the best X, we have the best Y.
But for us we are offering an ecosystem, so with the invention of ViteX, what happens is a team can go into Vite, use our public chain, build something amazing with no fees, no transaction lag, completely scalable. And then this team can list their own tokens on Vite and then of course same team could also decide they're gonna stake tokens or mine.
They may also decide that our wallet is bthe est to use and then GRIN can also be stored in our wallet. So the wallet for independent individual users, the DEX for traders, and for those who want to list their projects, our public chain for people who want to make projects, the ecosystem is completed. And so it brings together three segments of blockchain, there's the trading, trading world, and so that's tokens.
But then there's also the software business world which is independent of trading and tokens. If you've got a good blockchain and it's a good enterprise software or governmental software, it'll be used.
And then there's also the world of DEX so that's the hackers, developers, and so we can bring together the tech who create value. The software business model which actually scales the use of blockchain into legacy systems all over the world and then we can also incorporate traders and those who just are excited to make money on tokens.
There's nothing wrong with trading by the way, I trade too. So we're gonna bring together all three. This is a harmonious circle or ecosystem. It's complete and it's feeless. So I don't know about you, but it's about the best FinTech that I could ever imagine.
We're done here, is there anything else, Richard, Allen?
R: I think we're good. Thank you very much Luke for hosting. And thank you Allen, it is now 1am in China, so thank you for staying up. Thank you for our entire community for watching this video so we're gonna say our goodbyes now and then we can say goodbye on the side chat as well. Thank you so much for making all this happen.
Team: Bye bye, thank you.