On October 15, 2020 at 14.00 UTC / 21:00 WIB Indonesia Time in the Cryptowid Telegram Group, AMA started with Lattice Exchange. Mr. Ben Jorgensen (CEO of Constellation Network (DAG) and Co-Founder of Lattice) and Mr. Mathias Goldmann ( COO and Co-Founder of Constellation Network and Lattice exchange ) as guest speaker and MC from Cryptowid as moderator. When campaigning, 10 lucky AMA participants when asking questions on Twitter and AMA sessions will get a total prize of $100.
The following is a summary of AMA questions and answers announced by the moderator and guest speaker:
before we start the first session of today’s . I will ask a little about your background.
Can you tell us a little about your background in the blockchain industry and how you got started on this Obee Network?
Mr. Ben Jorgensen My name is Ben Jorgensen and I am the CEO of Constellation Network (DAG) and Co-Founder of Lattice.
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.
Mr. Mathias Goldmann : My name is Mathias Goldmann and I’m the COO and Co-Founder of Constellation Network and Lattice exchange
Mathias Goldmann - Co-Founder & COO - Lattice Exchange | LinkedIn
View Mathias Goldmann's profile on LinkedIn, the world's largest professional community. Mathias has 12 jobs listed on…
In gerneal, 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.
[Sessions 1 QNA]
Q.1. Please tell the community what is Lattice Exchange in detail ?
Mr. Ben Jorgensen : Lattice focuses on the DeFi space by aggregating liquidity pools, providing low fees, and multiple automated market making algorithms leveraging Constellation's scalable network, Hypergraph. Lattice will connect the DAG ecosystem with the ERC-20 ecosystem, paving the way for new financial products built on the Constellation Hypergraph. Lattice combines the best in class of the DeFi space on a scalable protocol with lower and consistent fees that will allow active users to create predictave revenue/income models.
Lattice came about as a thought exercise with the core Constellation (DAG) team as we were looking to establish ourselves in the cryptocurrency space and showcase our core technology and mainnetwork. After watching the DeFi space take off, we saw a positive trend and new utility of cryptocrurency. We saw an opportunity to highlight the strengths of the Constellation Network - speed, security, and scalability through Lattice.
Q.2. What is the background of Lattice Exchange?
Mr. Ben Jorgensen : lattice came about as a thought exercise with the core Constellation (DAG) team as we were looking to establish ourselves in the cryptocurrency space and showcase our core technology and mainnetwork. After watching the DeFi space take off, we saw a positive trend and new utility of cryptocrurency. We saw an opportunity to highlight the strengths of the Constellation Network - speed, security, and scalability through Lattice.
Our aim was to introduce Constellation as an ecosystem where developers could build applications (like Ethereum did for Smart Contracts) - but our vision was that Smart Contracts couldn't build real businesses. So we saw an opportunity to build Lattice as a framework for how developers can build businesses that scale on top of a scalable protocol. A lot of the issues with DeFi (scalability) are not only technical but economical scalability. Transaction fees are programmed into the base layer protocol of ethereum - with Constellation and DAG we are zero transaction fees. This opened up a whole new potential for scalable DeFi applications. Hence Lattice
Q3. As we know, every serious project always have their own roadmap. Could you please explain Lattice Exchange's roadmap and also what phase is currently ongoing?
Mr. Mathias Goldmann : We are in the last few weeks of deploying our MVP (and Phase 1) - we are very close to getting this out the door and in the hands of Lattice followers. We aim to have our MVP launched at the end of October. This is a rather aggressive timeline, but we have a big vision, team, and experience to do this (We already built a base layer 1 protocol). In the first buildout step we will be based solely on the ethereum ecosystem. We will aggregate liquidity like 1inch and introduce our own pools.
In the beginning of November, we will provide an LTX Airdrop to holders of our Molly Wallet 2.0 (We will be releasing this in the next couple of weeks).
In phase 2 towards the end of this year we will introduce phase 2 with a cross-chain bridge to the erc-20 ecosystem and in Q1 2021 we will route trades through the Hypergraph to save on fees and increase speed.
In terms of speed, the acyclic nature of DAG accommodates for faster tx speeds and you can test it for yourself when you send transactions between our wallets. It’s really fast. We have published a video on our twitter a while back showcasing the speed.
Q4. We are so curious about LTX. Can you tell us about it from the total supply, the features, and where it is available to buy?
Mr. Mathias Goldmann : The total supply is 100m. We closed the private sale this week on monday. We were oversubscribed multiple times over and the sale was filled very quickly. We will be looking at the TGE and a Uniswap listing at the 30th this months in accordance with our MVP launch.
Q5. what is the Lattice Exchange strategic plan to go forward ?
Mr. Ben Jorgensen : Great question. Our strategic plan is to really focus on bridging the digital asset ecosystem (cryptocurrency) with traditional securities. We aim to do this by oracalizing complex data structures (off chain data) with trade data to create complex AMMs. This will introduce a new wave of utility from advanced traders to retail traders. Our goal is to not just take market share from the $10B DeFi space - but to further expand the industry into the $30T traditional securities markets. DeFi has a lot of potential to disrupt traditional financial services.
Mr. Mathias Goldmann : We have a tight roadmap that moves from the MVP which erc20 based to the full integration with the Constellation Hypergraph. This will reduce trading fees and optimize for faster settlement, cross-chain liquditiy and all the benefits of having the connection between two major liquid ecosystems.
I want to shed some light on why Lattice is special as well:
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.
So with all these features and the roadmap in place we want to attract traders and liquidity providers and create a basis for future novel financial products based off of the Hypergraph and Lattice.
[Sessions 2 Question From Twitter]
Q1. From @batuhandogus6 For each exchange, the factors that attract more users are: low transaction fees, high levels of security, and ease of operation. Can lattice Exchange ensure these requirements for users?
Mr. Ben Jorgensen : Absolutely. That is why we are building on Constellation's Hypergraph - it has multiple layers of security built in on the base layer.
Having sat back and watched the early entrance of DeFi, we were able to do research and learn what was successful and where we can improve
Mr. Mathias Goldmann : Being a defi product security needs to be addressed in several different forms that are different than a CEX:
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. 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. 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.
Q2. From @cryptoenr1que It was recently announced that the Alphabit and FBG Capital funds will be sponsors of Lattice. What impact do you expect this to have on the growth of your project? in what way will it influence your development?
Mr. Mathias Goldmann : 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. Lattice is thus fully supported with their deep expertise and their wide network in the industry
Mr. Ben Jorgensen : In the early stages of putting Lattice together, Alphabit and FBG really came to the front and center and saw a ton of potential in the Constellation protocol and our vision with Lattice. This was pretty incredible as it takes a bit of vision to see what we are doing and how we can become the default protocol in the near future.
They have helped us tap into new communities and tell our story to appeal to new markets. Their knowledge of DeFi and the crypto space has really come through.
Additionally, we have brought some other very large and familiar digital asset funds. DeFi is just getting started and many of the big funds sat on the side lines to see how the space progressed and to see early prototypes of DeFi get launched. The space is just warming up and there is a lot of institutional backers with sophistication coming into the space - and Lattice is their flagship.
Q3. From @deloper68 Can you explain how LatticeExchange has been successful to be hack-free and how it innovates to the market demands of DeFi and NFT hype and becomes a market leader and top popular crypto exchange?
Mr. Ben Jorgensen : This is a good diagram to show how Constellation adds multiple layers of security beyond double spend attacks. Using a graph based database (DAG) has many advantages to organizing data. Our consensus mechanism is the secret sauce to create immutability and auditabilty around complex data.
Lattice will set precedent to DeFi solutions by aggregating the best in class of DeFi solutions on a scalable protocol. Lattice really highlights how Constellation is an ecosystem or "operating system" and is just one application that can be built that surpasses other applications by having an improved base layer protocol.
NFT is around the corner and will need protocols that have very low transactions fees (like Constellation's zero transaction fee) to scale. Think about it this way - no one wants to pay a huge tax for acquiring a unique asset (especially if you pay a lot for that asset).
Q4. From @y1sus_afp The fundamental issues facing DeFi applications are found in the base layer protocols. How does the Constellation Hyper-Graphic Transport Protocol (HGTP) provide a solution to this reality and help create an easy-to-use, scalable and sustainable DeFi?
Mr. Ben Jorgensen : Constellation’s Network, Hypergraph, is a resilient decentralized network that is globally distributed and is built to cryptographically secure big data making this the first scalable cybersecurity solution for big data processing.
Hypergraph is built using an architecture called DAG (directed acylic graph) and provides a base layer 1 protocol built to process complex data structures (vs. ethereum and simple numeric data structures). The Hypergraph is the largest distributed decentralized mainnet (nearly 45 nodes today and adding about 50 more in the next couple of months).
The Hypergraph is an ecosystem play (like an operating system) that will allow developers to use the HGTP (hypergraph transport protocol) to build robust applications and businesses that are interoperable with centralized data storage solutions, data management solutions, and other blockchains. The Hypergraph is governed is by concurrent consensus mechanisms to a) validate blocks on the graph b) validate the global state of the network. This ensures speed and scalability. Lattice's core functionality will be built on the Hypergraph leveraging the HGTP - for example, trade settlements, staking, deposit and withdrawls, and complex AMM's will be supported here.
Q5 From @geraldvinos About Lattice Exchange developing Yield Farming,a lot of tokens are offering rediculously high APY on liquidity staking. How does the Lattice Exchange Technology compare,and why would a investor choose it over other yield farming opportunities?
Mr. Mathias Goldmann : Tokens on DefI face the same dynamics and problems like they did in 2017. Back then they were called mining rewards, now they are farming rewards. They are governed by the rules of adoption vs dilution.
That means we will be taking a more measured and longterm approach to rewards in order to ensure that the token model is viable in the long run while driving adoption and usage.
Mr. Ben Jorgensen : Just like we observed v1 of DeFi solutions throughout 2020, we are doing the same as we create the models for yeild farming. We are actively listening to our advisors and backers - some of the best in the space - to implement best practices that scale for the long term. Many of the high APY's are not sustainable for the future.
The mix of Constellation's engineering team and Lattice's engineering team have created some incredible thought leadership in the space. The conversations going on behind the scenes are revolutionary and will drive innovation in the space.
[Sessions 3 Question From Free Asking]
Q. 1 : How do the AMM algorithms of Lattice Exchange differ from those of other platforms? How does it provide a faster and less expensive settlement that is attractive to users?
Mr. Mathias Goldmann : We will be aggregating best in class solutions while building Lattice out to a full Hypergrgaph integration - at which point active traders will automatically be drawn to Lattice due to lower fees and less systemic risk while being fully cross-chain liquid with all other ecosystems out there
Q. 2 : What decisions will the holders of LTX governance tokens be able to make on the Lattice platform? How far will the power of the users who have them go?
Mr. Mathias Goldmann : 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. 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.
Q.3 : KuCoin was recently hacked,
How will LATTICE EXCHANGE secure its users from getting hacked ?
Mr. Mathias Goldmann : Smart contracts will be audited. The Hypergrgaph comes with very high security standards.
Q.4 : How does Constellation Hypergraph Transport Protocol Connects real world applications? How does it solves real Problems?
Mr. Mathias Goldmann : By using existing and well used programming languages and by using a consensus that can validate tons of data and data streams which no other solution can do at this point
Q.5 : How Lattice Exchange plans to utilize interoperability between ERC-20 Network and Constellation’s blockchain for success with Lattice Exchange?
Mr. Mathias Goldmann : cross-chain wallet and cross-chain interoperability through the Hypergraph