AMA Recap MCDEX (MCB) & Arbitrum One
OKExHere are the highlights of the Ask Me Anything session at OKEx Telegram community with Jayden - head of communications at MCDEX and Nina Rong - Arbitrum China community manager.
On September 16, Jayden - head of communications at MCDEX and Nina Rong - Arbitrum China community manager, joined AMA at OKEx Telegram community and answered participants' questions. The purpose of this event was to introduce both projects to OKEx users.
Here's how the AMA transpired.
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Admin: Please welcome our Guests: Jayden - Head of Communications at MCDEX and Nina - Community Manager of Arbitrum China!
Jayden: Hey everyone! Glad to meet you all! Thanks for having me here.
Nina: Hi Okex community :) Happy to be here today!
Admin: Big Hello from all of us to you! Great to see you today here!
For those who are not yet acquainted with these amazing projects:
- Arbitrum One is a market-leading Optimistic Rollup scaling solution to bring Ethereum Layer 2 scaling directly to our users.
- With complete EVM compatibility to the bytecode level, Arbitrum has attracted 350+ projects to its flourishing ecosystem.
- MCDEX is the first fully-permissionless DEX for trading perpetual contracts, powered by MCDEX's revolutionary AMM technology
Part 1
Admin: Now, lets begin the AMA and welcome OKEx Director Lennix, who will be moderating todays AMA 1st segment.
Lennix: What are the latest updates of Arbitrum since the launch? How can users and developers interact with Arbitrum?
Nina: Arbitrum is now fully open to users and developers!
Users may use our official bridge(https://bridge.arbitrum.io/) to move supported assets between Ethereum and Arbitrum. Third-party bridges such as Connext, Hop and Celer are also available and more are coming online soon. The Arbitrum portal (http://portal.arbitrum.one/) is a good place for users to find live projects on Arbitrum to interact with. We are excited to see projects going live everyday for the past two weeks.
Developers can freely deploy projects on Arbitrum mainnet. To ensure all projects have sufficient time to determine whether they want their token bridged across as a Standard ERC-20 or another implementation bridging L1 tokens to Arbitrum requires to be whitelisted until Oct 22nd (https://offchain.medium.com/?p=42a94b054560), and it will be permissionless after that. We are on the way to fully decentralized and permissionless L2.
Lennix: Awesome can you let us know how gas fees in Arbitrum is calculated?
Nina: Gas fees on Arbitrum can be splitted into 2 parts: L1 fees and L2 fees.
In rollups, calldata for all transactions are posted in batch to L1 to ensure the security of the rollup chain while the executions happen on L2. The L1 fees are the majority of the cost for most transactions. Because we post calldata in batches, part of the L1 fees can be amortized as more people are using Arbitrum.
In L2, users pay a small fee for servicing the transaction itself which is metered by how much computation and storage capacity the transaction requires.
Lennix: Great!!! And how will Ethereum 2.0 impact Arbitrum?
Nina: In short, the answer is that Ethereum 2.0 and rollups are best friends.
ETH 2.0 will bring massive cost reduction for rollups. Most of the cost of using Arbitrum is paying for posting transaction data on Ethereum. While our current product fulfills existing demands, our plan is for Arbitrum to migrate over to using data shards for all our data availability as soon as we can. We plan to seamlessly migrate Arbitrum One over rather than launching a new chain so that all current users will start benefiting immediately! This is consistent with Vitalik's vision which he wrote in a blog post one year ago about ETH 2's rollup-centric roadmap. In short, Eth2 and rollups are very much complementary and both an important long term component of Ethereum scalability.
Lennix: Thanks Nina. Great to know all about Arbitrum one project. Now let's move on to some questions for Jayden. Jayden, could you guys briefly introduce the audience about MCDEX ?
Jayden: Yeah sure. MCDEX is the first fully-permissionless DEX for trading perpetual contracts that is capital-efficient with top market liquidity and up to 15x leverage.
Our fully decentralized trading platform, powered by AMM, allows anyone to create a contract, which dramatically increases market diversification.
Just in case that some may not be familiar with the concept - Perpetual contracts are one of the most popular derivatives, as they have no expiration date, support margin trading, and the prices are soft-pegged to index prices.
Now, with MCDEX, anyone can create and trade perpetual contracts in a fully permissionless fashion.
Lennix: There are some competitors out there, what do you do differently to gain an edge?
Jayden: Yeah the perpetual swaps track actually is quite trending recently. I can share how MCDEX is differentiated from the others:
1.Market-top liquidity - we’ve been working hard on the innovations on AMM, which we believe is a hardcore competency. Whether liquidity providers can make money and whether the slippage is small enough to trade all depend on AMM pricing formula. The V3 AMM will be 1000 times better in terms of capital efficiency.
The methodology is similar to Uniswap V3 - Concentrate more liquidity around the index. For example, in our current USDC pool, we got two trading pairs - ETH / USDC and BTC / USDC. If there are $80M USDC in the pool -which is easy once the liquidity mining program is live, trading 7000 ETH / 300BTC without any slippage at all ( spread 0.2%).
2. Market diversification - anyone can create any perpetual market. This is crucial because when a new DEX born, one of the key competencies is to have some markets that other exchanges don’t have yet. So permissionless is the key. We are empowering individuals/institutions to fulfill this mission together.
Lennix: Wow thanks for this explanation and now what to expect in the future for MCDEX?
Jayden: The most exciting news is that we just enabled the trading mining program - 200% trading fee rate. That means that we will rebate the transaction fee paid by traders with the form of $MCB.The rebate rate is 200% in the first epoch.
For example, if the trader pays $10 trading fee, we will distribute $20 worth of MCB to him. The total incentive is 13650 $MCB, which is about $700k value
The goal is to attract more real traders to help us testing our AMM model. Wash trading, for example, opening positions and closing instantly, won’t be profitable here.
Lennix: Great!!! We have prepared some questions from our collected from our community for both of the projects. Let's go back to Nina first.
Nina can you let us know - What is unique about Arbitrum that makes it stand out in the competitive L2 market?
Nina: Arbitrum is unique because it is the first and only 100% EVM-compatible L2 scaling solution. EVM compatibility to the bytecode level allows developers to seamlessly deploy their products on Arbitrum as if they were deploying on Ethereum. This really allows project owners to spend their precious time on what they are best at - whether it’s DeFi, NFTs, Wallets etc. -, instead of re-designing their products to deploy on L2.
On top of EVM-compatibility, we are delivering not only a single L2 scaling solution, but at the same time a flourishing ecosystem of DeFi products and middlewares. We believe composability is the essence of the crypto world and our ecosystem of 350+ projects shows endless possibilities for innovations.
Lennix: Does Arbitrum have any token (governance, utility)? If not, how will Arbitrum L2 users pay and how much will that be?
Nina: Arbitrum currently do not have any tokens and do not have plans to issue tokens. I would like to use this platform to remind our community ANY Arbitrum token you see today is a scam.
Gas fees on Arbitrum are paid in ETH. While the user will see a single fee denominated in ETH, under the hood gas fees on Arbitrum can be logically split into 2 parts: the L1 gas fee and the L2 gas fee. Together, a simple transaction costs about 1/10 of what L1 would cost.
Lennix: Now to Jayden - can you tell us what are the oracles from which MCDEX takes price data for its perpetual contracts?
Jayden: MCDEX is the first fully permissionless perpetual protocol in the space, which empowers anyone to create any perpetual market permissionlessly. The creator of the perpetual market, aka operator, is the one that choose the oracle for the market.
We’ve been working with basically all the top oracle teams as supplier of the price feeds, including Chainlink, Band, etc. Oracle is crucial in our mechanism, we’ve kept doing tests to make sure to mitigate potential risk.
Lennix: Will MCDEX allow leverage trading on Arbitrum Blockchain ?
Jayden: For sure. The key feature of perpetual swaps is to enable trading with leverage. Currently on MCDEX, leverage is up to 15x.
Lennix: And the last question I have - Is MCDEX a validator in the Arbitrum Blockchain ?
Nina: MCDEX is currently not a validator but we are looking forward to them joining as a validator soon, if they would like to, of course.
Jayden: Would love to:)
Part 2
Live session
User 1: I am a professional web vulnerability finder, Do you think your Project system is safe enough from hackers? Do you have a reward program for detecting system vulnerabilities?
Nina: Hi Taylor! We are confident that we are able to protect users' assets. At the same time, we would like to invite programmers around the world to a 1M USD bug bounty https://immunefi.com/bounty/arbitrum/.
User 2: Can you talk about the advantages of MCDEX's management token MCB? What benefits will MCB bring to those involved in governance? How will we participate in the MCB-based MCDEX DAO?
Jayden: $MCB currently is the governance token only. $MCB holders can govern on issues include - how to use the funds raised and gained in the DAO treasury, how to distribute newly minted MCB etc. We will add more utilities of $MCB in the near future based on some advices from layer too.
User 3: What is your most ambitious goal of Project? We would appreciate it if you could share with us any Upcoming Updates?
Nina: Our slogan is "Scale Without Compromise". We want to make crypto accessible to everyone without sacrificing the security of Ethereum. We will continue improving user experiences while keeping users assets safe :)
User 4: Are you planning to promote your project in countries / regions where English is not good? Do you have a local community for them to better understand your project?
Nina: I am the Community Manager China, so I think this answers the question. We believe in that the blockchain has no border. As our community grows, we will be providing supports in community across the globe.
User 5: Some people believe that composability is the future of DEFI. What is your opinion？
Jayden: We do. That is actually one of the reasons that we choose to work with arbitrum team. DeFI has its own way to grow. we shouldn't follow what CeFi do. We are working with other protocols that can build on top of us to bring more trading volume. Meanwhile, we are also incubating some projects that can bring value to MCDEX ecosystem. This is the current focus in a short while.
User 6: Does MCDEX already have copy trading? in order to make it easier for people to copy
Jayden: For now nope. But that's exactly what I just mentioned - we are collaborating with some other projects which does cory trading. We don't need to do it by ourselves, just by collaboration will be good. This is the magic of composabiltiy. After that. we will be able to onboard those who don't know how to trade by simply copy tradings.
User 7: Collaborations and partnerships are some of the most important cornerstones to help improve adoption. Can you tell us about your current partners, plans for partnerships and what everybody stands to gain from these partnerships?
Jayden: Yes! Here is a live list of projects that are in our ecosystem. http://portal.arbitrum.one/
User 8: Total supply of MCB 10,000,000 So what is the reason for issuing 1 MCB for 1 USD captured by the MCDEX DAO treasury? How does the issue encourage the community?
Jayden: The issue rule of $MCB is the fastest speed that we can issue $MCB. Whether mint them, will go through the governance process.
User 9: Liquidity, Transaction fees and slippage are always important factors in Finance services. How does MCDEX solve the above problem to attract users?
Jayden: Exactly, those are the pain points for traders, and those are the problems that we are trying to solve by our V3. Improving the capital efficiency of AMM - the logic is similar to Uniswap V3. With decent liquidity in our AMM, trading 5000 ETH will enjoy no slippage at all.