DamoTalks Interview #20 Recap: O3 Swap — How to make assets silky smooth across the chain?
DamoTalks Issue 20
Topic: O3 Swap — How to make assets silky smooth across the chain?
Guest: Caroline, Operation Manager O3Labs
Moderator: Luffy— TokenDamo Co-Founder
Live Streaming Translation Assistant: Ling Ling
Live Streaming Time: 12 May 2021 15:00 pm
Cross-chain asset trading has always been a hot topic in the Dex track and an immediate need for users in the Defi space! O3Swap is currently the star project to solve the cross-chain asset trading problem.
O3 Swap is the first cross-chain aggregation protocol that enables free trading of native assets between heterogeneous chains, providing users with a one-click cross-chain asset swapping experience by deploying “aggregators + asset cross-chain pools” on different public chains and Layer2 networks. It is currently connected to networks such as Ether, BSC, Neo, Heco, and is expanding to Solana, Polygon, Polkadot and other ecosystems.
TokenDamo is honoured to have Caroline, Director of Operations at O3Labs, as our guest for the 20th edition of DamoTalks, and share how O3Swap makes asset swapping across chains as smooth as silk.
The following is a compilation of the interview on 12 May at 15:00 pm.
Q & A Text and image content
Luffy Q1: When we first came across O3Labs, we were very interested in the name O3. We all know that O2 means oxygen, why did you pick the name O3?
Caroline: People were really curious about the name O3, in fact it was a simple name, we thought it would be easy to remember.
There’s no special meaning to it, it’s all about remembering it.
Luffy Q2: We see that Neo, a well-known public chain, is very close to O3 Labs, what is the relationship between O3Swap, O3Labs and Neo?
Caroline：O3Labs was founded in Tokyo in 2017 and can be said to have originated from the Neo community, being one of the first developer communities on Neo.
The core team members are from Tokyo, New York, Singapore and Taipei. The core product, O3 Wallet, has a good user reputation in the European, US and Japanese crypto markets and currently provides digital asset management services to 150,000+ crypto users.
O3 Swap is a cross-chain aggregation protocol/cross-chain aggregation trading platform incubated by the O3Labs team, which aggregates the liquidity of leading DEX on different chains and allows users to complete free trading of cross-chain assets through cross-chain trading pool links. It solves the current problem of fragmented liquidity on various mainstream blockchains and makes it no longer difficult for users to trade assets across chains.
Luffy Q3: Cross-chain aggregation trading is currently being done by many projects, what are the advantages of O3Swap compared to other trading aggregators, such as 1inch?
Caroline：1inch is a well-known transaction aggregator on Ether. Compared to aggregation trading platforms on the market, O3Swap’s core is cross-chain aggregation, dedicated to linking liquidity between different networks, not just aggregating liquidity between different protocols on a single chain.
1inch is a well-known transaction aggregator on Ether. In contrast to the aggregation trading platforms on the market, O3 Swap is at its core a cross-chain aggregator, dedicated to linking liquidity between different networks, not just between different protocols of a single chain.
The first is the first to use the creation of a cross-chain transaction pool to link liquidity between assets on different chains, which will allow the exchange of major assets across multiple blockchain networks and provide a single-coin mining experience for multi-chain assets.
Users will be imperceptible to cross-chain transactions, with no need for asset form conversion or replenishment, significantly lowering the threshold for users to operate/trade and truly allowing them to trade assets across different chains with a single click.
O3 Swap combines liquidity aggregation and multiple mining experiences, not only providing users with the best trading rates and routes, but also allowing them to participate in the O3 Swap ecosystem.
Luffy Q4: How does O3Swap enable cross-chain asset exchange? What is the principle of implementation?
Caroline: The main functional modules of O3 Swap include a transaction aggregator, Aggregator, and a cross-chain transaction pool, Pool.
O3 aggregators on each network help users find the best, efficient price and trading paths in their corresponding trading networks; the cross-chain trading pool Pool provides users with cross-chain asset trading services and supports users in selecting single coins of assets on different chains to add liquidity, thereby earning cross-chain pool fee revenue and O3 rewards.
For example, if one wants to exchange BNB on Metamask to HUSD on MDEX, the above path is the centralised way and such a transaction route is a complex and tedious process. The trader would need to deposit the asset to a centralised exchange, execute the transaction twice via KYC and verification, and finally withdraw it to a decentralised wallet.
In the O3 Swap decentralised route, we offer a one-stop trading experience through aggregators and cross-chain pools, allowing traders to simply exchange multi-chain assets within their wallets. There are no account and amount limits on the whole process. You can think of it as something like 1inch for multi-chains + Curve for cross-chains.
Luffy Q5: Curve has very low fees and slippage when doing cross-asset trading, how does O3Swap address the loss of cross-chain asset trading?
Caroline: Our fee for cross-chain pool transactions is 0.04 %, which, like Curve, is currently among the very lowest in the market.
The cross-chain fee is mainly determined by the current network fee of the target chain and is intended to help users achieve successful transactions on the target chain.
Other than the above fees, there is no wear and tear on assets crossing the O3 chain.
Luffy Q6: Can you give a brief overview of the current token economy of O3? Also what is the role of tokens in the project ecosystem in O3Swap?
Caroline: In O3 Swap’s economic model, users are rewarded for early participation in product testing and community contributions through airdrops; for trading in O3 Swap, they are rewarded for mining transactions; and for providing liquidity to the cross-chain pool, they are rewarded for mining O3.
In terms of the economic model, firstly, users need to pay a 0.04%-0.3% fee for trading cross-chain assets via O3 swap, and the platform will periodically make up O3 from the fees earned in the open market, part of which will be distributed to O3 holders and part of which will be used for DAO management.
Of course, at the same time, users who have traded on O3 will receive O3 as a reward and subsidy, thus greatly reducing the cost of transaction fees; in addition, if you are an LP of O3 Hub, you will also receive cross-chain transaction fee rewards.
Luffy Q7: O3Swap has already started its first version of functional testing at the end of April, is the team satisfied with the progress so far? Will there be any airdrops for users to participate in the beta?
Caroline: The O3 Swap pilot version has so far launched with 230,000 trading addresses and 340,361 cross-chain aggregation transactions completed. The full release will go live in mid-May, along with the release of the O3 token and economic model, plus transaction mining and other community incentives will start soon. We plan to complete the deployment of the second layer of the network in Q4 this year.
Luffy Q8: Can the fundraising and institutional information of O3Swap be disclosed to the public? How have they helped in the development of O3Swap?
Caroline: Last month, O3Swap closed a $2 million round of funding with participation from NGC Ventures, OKEx Blockdream Ventures and others. Recently Softbank (Singapore) has also become an investor in O3 Swap.
They are all excellent partners and have provided a lot of constructive help to O3 Swap’s development.
Cross-chain is a very important track as the immediate need of blockchain, and O3 is an innovator in this track, so I believe we can work together with our partners, towards a common goal.
Community Free Q&A Session (3–5 questions, guests will be free to choose their answers)
Alpha Meow: Which public chains or Layer2 ecosystems does O3 Swap currently integrate with and which ones will it continue to expand to in the future? Does it support FTM.MATIC and if not, when will it support it?
Caroline: Layer 2 projects are our next focus.
youyou: Cross-chain transactions are becoming more and more frequent, but there are many rivals, how is O3 going to expand its ecosystem and stand out in the future?
Caroline: Unlike other cross-chain projects on the market, O3 is the first in the industry to enable free trading of native assets (no mapping, deposit, etc.) on different chains.
Compared to the aggregation trading platforms on the market, O3 Swap’s core is cross-chain aggregation, dedicated to linking liquidity between different networks, not just aggregating liquidity between different protocols.
Time to Cook: The O3 Swap cross-chain aggregator enables cross-chain operations, allowing different digital assets to be exchanged for exchange rate equivalents, but can the O3 Swap cross-chain aggregator still give fair and equitable exchange rate equivalents in the face of dramatic price changes in the digital asset market?
Caroline: What we do is an AMM cross-chain pool that stores stablecoins from different chains, there is no exchange rate issue, and as mentioned above, O3 integrates Curve for an efficient, low slippage stablecoin exchange experience, as well as a low risk fee income for market makers (lossless mining)
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