AMA Theme : All About LeverJ
Event Date: August 22, 2020 Organized By ID Crypto Official
Speaker : Bharath – CEO Founder & Swapman – Core Member
Session 1: Project introduction
ID crypto : Before we go to the first session, I will ask a little about yourself.
My name is Bharath Rao. My background is in Wall Street and technology. After working for 10 yrs on wall street, the 2008 collapse had shaken my faith in the financial system and I moved to San Francisco from New York and ended working for Motorola Labs (later Google labs).
Then I discovered bitcoin in 2011 and saw this as the solution to the issues of the traditional financial system.
The first thing I realized was that Bitcoin was perfect for derivatives trading and tried to build a trading system on it. At that moment the tech state was such that we could only do semi-noncustodial system, which we launched in 2016.
We were the first project to use crypto addresses as keys, first to use signatures as verification, first to store all user funds verifiable on chain, first to use zero knowledge auth instead of passwords … The product was cool but ahead of its time and bitcoin fees made it uneconomical.
We then realized with ethereum we can make the product completely non-custodial…. so we rebuilt everything with leverj
ID crypto : a very impressive experience, I hope this experience will be useful for all of us.
ID crypto : next we want to know about your background, can you tell us a little about your background @swapman ?
yes sure! so I got into bitcoin about 2012 while I was still working in the traditional financial system. I had worked in different jobs with investment banks and consulting firms after i received my graduate degree in econometrics. Mostly I was focused on making trading systems, risk models, and analysing huge datasets from different markets. I first saw bitcoin and crypto just as a hobby…buthen around 2015 I was focused less and less on work at my real job, and more and more in my freetime trading in crypto and getting involved with different projects in crypto, so I went full-time into crypto.
as I got into crypto full-time i became more and more irritated with the banking system, as they would regularly close my accounts for engaging in crypto transfers. this motivated me though even more to help build stronger systems in crypto, and mosre specifically to get involved with decentralised exchanges (DEXes) that could not censor in the way that banks do. so, I created different communities online to organise traders so that we could hold exchanges accountable and argue for what traders want in different products and services. at the time, it was common for exchanges to be hacked or do “exit scams” and so it was important for traders to be able to talk to the exchange operators and build trust. very similar to your community here at ID Crypto, which is why i think it’s great what you guys are doing here.
I got most interested in crypto-based derivatives like futures and options, because this was a way that crypto traders can manage risk vs USD without actually having to hold USD in bank and such. So since 2015 I have worked with a number of different exchanges to develop out risk systems for futures and building out products that were powerful and user-friendly, and that’s how I met Bharath who was at the time making a bitcoin-based decentralised exchange Coinpit.
however due to congestion and fees on Bitcoin, the project moved on to LeverJ which runs on Ethereum which has the scripting capabilities to facilitate spot and derivatives trading in Plasma sidechain to maintain trustlessness while having speed similar to centralised exchange.
ID crypto : Could you Explain to Us, What is LeverJ?
Leverj is also the first product on the Gluon network. The gluon network is a high speed L2 network on ethereum that enables you to transact without ethereum gas costs. We envision other L2 products on Gluon such as uniswap-like AMMs.
LeverJ is the world’s first plasma sidechain based spot and futures exchange on Ethereum. It allows users to permissionlessly access markets on Ethereum and perform numerous trades between assets without paying high gas fees each time like on many other DEXes.
Plasma is a “Layer 2” technology which is one of the most promising solutions for scaling on Ethereum, touted by thought leaders like Vitalik and Gavin Wood and others.
Working with ConsenSys, LeverJ’s plasma model combines the speed that you can get from centralised exchanges with the trustlessness you get on pure DEXes. As of now, a trader interacting with markets on Leverj trade products on a real orderbook and all of the trades and transfers that occur on LeverJ are visible on the Gluon plasma explorer which you can see on our website
Product-wise, LeverJ offers spot trading of Ethereum assets, and will soon be launching Futures products with up to 100x leverage. This will allow users who are fed up with high Ethereum transaction fees to engage in trading on Plasma and be able to significantly reduce their trading costs. And we are currently partnered with Maker to help facilitate liquidity and additional product innovation on the platform.
So put simply, LeverJ solves the problem of expensive, slow DEX like Uniswap, and the issue of needing to trust and provide documents to a centralised exchange: a fast, trustless hybrid DEX.
ID crypto : Currently, what features are available at LeverJ?
Leverj has spot and futures trading with market,limit,stop market,stop limit orders. Leverage can be adjusted per position, 1 click buy allows you to quickly get in and out of the market.
You can play with it on our live mainnet and testnet (risk-free) — it will remind you mostly of a centralised exchange with some DEX qualitites (for example you need to use MetaMask to move funds onto Plasma layer2 sidechain to trade from the layer 2)
ID crypto : I see that LeverJ has its own token, could you please explain about the token? what benefits can we get when we hold the token? and can it be traded?
LeverJ has a token LEV which is used as the governance token for the LeverJ exchange system.
You can stake LEV on-chain through our platform and vote on proposals with LEV and earn a stream of income that the exchange generates from spot and trading activity.
At the moment, LeverJ has 0% fees on the live platfrom https//live.leverj.io/spot/ETHDAI , so there are no benefits from staking. But as we launch the Futures products and add fees for spot and futures trading there will be a stream of income that LEV token stakers can access.
As part of governance, users can vote on what apps to run on gluon network, whether to allow specific upgrades, validate transactions and secure the network. The fees collected from trading are disbursed proportionately to stakers.
ID crypto : For now many exchanges have many interesting features or interesting programs, such as affiliate programs in groups or a community. does LeverJ have such a program?
As we are a hybrid DEX which does not require e-mail address to register, just MetaMask, there is no affiliate program. However we are in the process of developing solutions to incentivise people to refer other traders to the platform. At the moment we are more focused to drive more traders to the platform where LEV stakers can then benefit from fees from revenue.
Affiliate program is still in development as of this time.
ID crypto : This is last Question, What will LeverJ target to realize at this time, and also what things will LeverJ realize in the future, for the Exchange itself or the token later?
Leverj is the team that delivers:
Sep 2018 1st Exit game free L2 chain
Feb 2019 1st L2 spot exchange
Oct 2019 1st Multi-chain L2
Aug 2020 1st L2 futures exchange
The leverj gluon network is the cheapest L2 network and compatible with ethereum. So any and all projects on ethereum can work on gluon to save gas and congestion.
In the future we plan on innovating on a series of derivatives products:
- Index futures
- Options contracts
- More potential for users to contribute liquidity easily to markets
- More benefits for LEV holders as the governance mechanism of the Exchange to realise.
Session 2: Questions From Website & Twitter
Q1 : From @JakariahAngga
LEVERJ is the first exchange built on Plasma technology .. What are the highlights and advantages of this plasma technology?
As you know, layer 1 has scaling problems that have been noted since 2015. There have been many attempts to solve it. One of the earliest proposal was sidechains and on ethereum, a paper called plasma was published by Buterin and Poon. We had been researching this same problem and have implemented this. An L2 network has fixed interactions with the parent network — basically deposits and withdrawals and occasional commitments of state. This way inside the L2 plasma network can have theoretically billions of transactions and you would not have gas cost on main chain. The main chain wouldnt even notice these transactions. The important feature is that users would still be in control of the coins using their private keys. This enables creation of products with centralized feel and speed without the gas cost of ethereum.
I would add that anyone who is using Uniswap or other on-chain exchanges on Ethereum notice how expensive it is to move ETH or ERC20 tokens around.
It costs $2-5 for normal transaction, up to $50 for smart-contract transaction — it’s important that solutions on layer 2 like Plasma on Leverj are here to make it cheaper for traders!
Q2 : from @jonass
What are the major milestone or achievements that LeverJ already achieved from the time it started? Maybe how many users or clients you already had in your platfom?
Sep 2018 1st Exit game free L2 chain
Feb 2019 1st L2 spot exchange
Oct 2019 1st Multi-chain L2
Aug 2020 1st L2 futures exchange
We are pre-launch and therefore we only have a few hundred users at present.
Yea it’s currently early in the product cycle, we started simple with spot (no fees atm) and the big point of LeverJ (which is said “Leverage”) is futures and other derivatives, which we are very soon to launch.
Q3 : from @Wimuza
How important is the community to the LeverJ Project? and how can we collaborate or help LeverJ for the development of the project?
the community is everything in LeverJ, without the community LeverJ is nothing
the team has developed the tech but it is governed by the LEV token holders eventually so this is what matters most. the people who invest their time, money, effort into believing in the project will get the benefits and power in the technology.
many community members already have spent time testing the product, making suggestions to improve it, and helped spread the word to their friends. you can always join our telegram group to get involved and help however you can.
The value of a network is simply the value of its community.
Q4 : from @sailormoon
Currently futures or margin trading is in high demand. Does the Exchange leverj also have it?
and I see that Leverje has its own token, namely LEV, what is the advantage of LEV holders, can it be for exchange fees, etc.?
and are you interested in making LEV a defi token because currently the defi project is in great demand?
thanks for the good question(s)
- we are very close to launching futures trading (ETH/DAI, BTC/DAI pairs, using DAI collateral) — you can already play with it in our testnet client (join our telegram to get involved) and see how it works
- the LEV token will give an advantage to holders by allowing them to stake and receive the fee revenue which the exchange generates. this will be totally owned by the community in proper governance token fashion
- i would argue that LEV already is DeFi token in many ways — there are certainly improvements we can make but the plan is to make this fully community-driven very soon with some changes that are being made to token contract technicals and the token distribution
stay tuned as there will be many exciting developments in this area after the futures product is launched.
LEV is defi because: There is gamified yield farming by staking LEV.
In addition, future products such as AMM will enable defi projects on top of gluon network.
Q5 : from @jhonsmith
Is the security system used by Leverj Exchange safe? Is there insurance in case of theft or hacking of user assets?
Leverj is one of the most secure sites in industry.
- We use a very strict content security policy and our securityheaders rating is A (many defi sites have F)
- We have a secure firewall and the servers do not even have a shell, eliminating many shellcode exploits
- The smart contracts have been audited by Blockchain labs and bounty is open for any bugs
- At this moment we do not have insurance on smart contract exploits, its something we can explore as the project gains traction.
Session 3: Questions From Community
Q1 : from @Pemyla
Hello, How does your exchange run the KYC verification system? Is KYC mandatory?
Since Leverj is non-custodial, there is no KYC at the moment.
Q2 : from @QuyTND
What is your business model? Compared with similar projects like YFV.Finance, what difference does APY.Finance have to attract investors and users?
No project can survive on its own. Can you tell us some of your partners and who you plan to collaborate with, in the nearest future?
This is the most important question I think!
LEV is a token for the community which stakers can then access the fees generated by the LeverJ platform.
It’s a pretty standard governance token approach where community retains control and helps push development forward. As the exchange succeeds, the community succeeds through LEV token involvement and staking.
We will continue to develop out this aspect of the system.
we have worked with many key firms worldwide since the beginning.
ConsenSys was instrumental in working with us in the beginning on contract mechanics and such
One of the largest crypto firms in japan, SmartContract has been instrumental in helping source liquidity early on.
Now adays MakerDAO is providing much of the liquidity on our platform and we are a big supporter of using DAI tokens in our spot and futures markets
And we are about to close on a big marketing partner soon which we will announce in the coming weeks!
Q3 : from @Tranah01
We all talk about Positive points/Pros/Good Points & Features of any Project, no one Project tell about there Cons. So can you tell us Honestly the Cons & Lacks of LeverJ?
At this moment, leverj can only work on ethereum network. This means assets such as bitcoin need to be wrapped on ethereum (WBTC) before use on leverj. This is something we plan to address using validator network that uses MPC to enable most blockchains.
These are some really good questions from you guys…the energy and knowledge of this community is very impressive!!
Q4 : from @MaulanaRizal7397
What is your long-term vision of the industry where the Leverj works? Are you afraid that one day there will be another project with more innovative technology that can replace Leverj ?
Yes. But we will have already innovated further than them. Note that we have been ahead of every project since we started in 2016
We hope so. We are not afraid of competition. We learn from them and they learn from us.
Q5 : from @Alika061
I usually consider 3 things on blockchains: flexibility, cost and security. How can you guarantee me that these 3 things are available on LEVERJ?
This is basically what we try to maximise in the plasma experience on Leverj:
- flexibility so you can use many different assets to trade on the platform
- lower cost because once you’re on layer 2 plasma then you can easily trade around without more on-chain fees
- security because the contracts have been heavily audited and tested now for years.
Great question guys. Although we cannot answer all of them right now, we will make an effort to answer them in a medium blog post.
Session 4: Quiz about LeverJ
- Why is leverj faster than other DEX?
- What is the benefit of staking LEV tokens?
- Whats the name of the sidechain tech that leverj uses?
- What types of trading products are on leverj?
- What are the trading fees on leverj spot?
correct and fastest answer
- The gluon network is a high speed L2 network on ethereum that enables you to transact without ethereum gas costs. We envision other L2 products on Gluon such as uniswap-like AMMs @drzy16
- Stake LEV To get share of trading fees @DdMHNDra
- Gluon @prandeepkmr
- Spot and future @landikakurniawan
- 0% @MsKiwi206