AMA Recap: Developer from XVIX
Uniswap Detective:
Hello, welcome to The Selective — thanks for joining us today! We’ve checked out your project ourselves, and it sounds really interesting — I’m looking forward to presenting it to the community.
Deg3nDev:
Thank you very much for checking us out and hosting me.
Uniswap Detective:
Glad to! Alright, let’s get to the first question…
Q1) Can you start off by giving us an overview of the project, are there any projects that it shares a lot with, and, if so, how does it differentiate itself from those projects?
Sure, so XVIX is a token that has a few unique properties.
One of them is conditional rebasing, so 0.02% of tokens not in Uniswap pools get burnt every hour which incentivizes LPs without any selling pressure.
The other main feature is the price floor. Price floors are not entirely new, but the way we do it is different.
Uniswap Detective:
Ok, so you’ve created a protocol where holders are forced to participate?
They either add liquidity or suffer a daily burn.
Deg3nDev:
Yes, that’s right.
Uniswap Detective:
This means that the liquidity vs market cap ratio will increase due to this. I like that a lot.
How does the floor price work for XVIX?
Deg3nDev:
So, most projects I know of, use Uniswap pools to create a price floor but for XVIX, we have an independent savings fund that creates this price floor and we can do some new things with it.
For example, when the price of XVIX is increasing, the protocol allows new tokens to be minted with ETH. The price to mint is calculated such that, any minting increases the price floor so it saves and absorbs value, for a rainy day.
Uniswap Detective:
A new approach. Seems like takes some of the concepts of CORE + AMPL and then adds a burn for people outside the LP pool.
You mentioned the distribution method — “XLGE” — how exactly does this work?
Deg3nDev:
Yes, we got inspiration from CORE and AMPL.
For the XLGE, as you mentioned it’s a twist on LGEs. To me, the drawback of LGEs is that your funds are permanently locked and it can take a really long time to earn back the capital, let alone any profit.
So our twist is that funds are only locked up for 1 month.
Uniswap Detective:
Yes, I’m not a fan of that. CORE was the first mover and that’s why LPs made money but it just takes far too long for me and new protocols can’t get the same traction as CORE.
Ok, and how will it work following this month?
Deg3nDev:
I joined some too, and had the same experience haha
So during the 1 month, people can buy/sell XVIX from the pools and as long as the price of XVIX increases slightly the amount of ETH in the pools will also increase beyond what was contributed.
At the end of 1 month, XLGE participants can withdraw their LP tokens but they only get back the capital + profits + fees in ETH and DAI
The tokens from the XVIX side are permanently burnt.
After the 1 month, they can withdraw in part and at anytime
Uniswap Detective:
Ok thanks for the great explanation👏
Q2) I understand there are a lot of interesting mechanics to pump the price, can you go into more detail of how some of the ones unique to XVIX work?
The component for this would be the price floor of XVIX. We want it to be this force that pushes the price of XVIX up continuously and it this does through 2 main ways.
Tthe first is increasing the savings fund as mentioned earlier and the second is reducing the supply of XVIX.
There is a 0.43% burn on every transfer of XVIX, so arbitrage, buy / sells, adding/removing liquidity would all result in this burn and of course the 0.02% burn per hour as well.
Since the price floor is calculated just as (total savings) / (total supply). We have the design in place to push this value up.
Uniswap Detective:
Sounds really well thought out and pumpamentals are definitely there to support long-term growth.. What was your inspiration for this? Why XVIX?
Deg3nDev:
When I first started on this project, it was because I felt sad seeing all the rugs on Uniswap and Isaw a lot of projects that had their price pumped up only to dump very quickly.
I personally bought a few of them haha
Uniswap Detective:
Yea..there was a period of time there where scams were rampant. Hurts to see.
Deg3nDev:
Definitely, so I wanted to design a token that retains value when its price goes up. That was the original direction.
Went through many ideas and iterations, some discussions with the community and especially orangexbt.
Uniswap Detective:
Yea it seems many focus on the initial pump but long term it’s just not sustainable.
Deg3nDev:
So the name is from VIX and in the volatility index. I added the X because this token takes advantage of the volatility.
Uniswap Detective:
Awesome and I understand you also built Latte right. I actually know the DEV know tested that app and he was impressed also.
Deg3nDev:
Oh yes, I started with Latte, because I thought food coins were still cool but then decided to rebrand
Ah yes, from LK3r (I have a bag). Very friendly dev, we talked a bit
Uniswap Detective:
Yes, SoSolidity. Smart guy and super friendly so was good to see he knew of your project.
Q3) So for you XLGE. How is this currently going in terms of contributions?
What will the listing price be after the XLGE?
For the XLGE, we have 22 ETH contributed currently and this ends on Tuesday. The total supply is 100k so 0.00022 ETH per XVIX.
Although it will be slightly more because some tokens will be burnt during the transfer to the Uniswap pools.
Uniswap Detective:
How does the distributed work if the total supply is 100k? will be divided between whoever contributes to the XLGE?
Deg3nDev:
Yup, so they will own a proportion of the pool of XVIX or rather, a proportion of the profits from the sales of that XVIX.
Uniswap Detective:
Ok, great. Do you have any link on how to participate in the XLGE?
Deg3nDev:
Yup the link is https://xvix.finance/distribution.
Q4) Security is always a big topic of discussion in this space: what have you done to assure investors that your project is safe?
We did a lot of testing. The repo itself has 80+ detailed automated tests
to check that everything works as expected Bes we don’t want funds getting stuck somewhere
The other thing we did is testnets on the Ethereum Ropsten Network. Testing the full flow from XLGE to its end, to LP unlocking and I manually tested trading.
After that, we did an audit with Vidarr.
Uniswap Detective:
Ok so you have done a lot of automated tests, tested on Ropsten Network and Vidarr has recently completed your audit also?
Deg3nDev:
Yes, that’s right.
Uniswap Detective:
Ok. The only concern I was looking at is the flash loan vulnerability. Do you see this as an issue and if so are you doing anything to mitigate this risk?
Deg3nDev:
Yes, so the main concerns I would have are design vulnerabilities, whether the system can be gamed, exploits made possible by flash loans.
So to analyze this we listed the possible interactions, all the things that could change and then we considered all the possible sequences..
The main point was to see if we could have a path where we enter with some ETH, and exit with more ETH. Assuming access to an unlimited amount of ETH.
Uniswap Detective:
Yea that’s the concern right. So what did you find?
Deg3nDev:
I didn’t find a path that could be exploited
It’s something that keeps me up though and whenever I can I think about this. How to game the system but since it's new, there will always be that risk so we put that warning on the distribution page as well.
Uniswap Detective:
Ok, well a lot of testing has been done, Vidar has complete an audit but as we have seen there is always that risk even with larger firms auditing. Look at FARM or YFV/VALUE for example.
But it seems like security is the main concern and you’re doing as much as possible to mitigate this risk.
Alright, we’re moving onto the last question, after which we will open it up to audience questions. Please have your questions ready to go for when we unmute the chat.
Q5) This coin is quite experimental, and has a lot of very interesting ideas built into it. What do you see as the future of the token/project? Do you foresee some of the mechanics — be it XLGE or having no passive holders — being replicated in other projects?
I don’t really like clones, but I guess it’s an honor in a way haha.
I personally feel that the format of an XLGE is my dream format. There’s no whitelisting, KYC, no dumping by participants, no rush to join, no locked up capital.
So for sure, if other tokens are interested to reuse it, I would be glad. I’m sure it could be improved further as well for the future of the project.
Uniswap Detective:
Yea I like the idea, to many times pre-sale will dump within hours of listing and it doesn’t recover.
Your system means you’re incentivized to buy into the XLGE but also initial buyers can feel safe and not be immediately dumped on right?
Deg3nDev:
Yes, they will never be dumped on by XLGE participants, even after 1 month.
In 1 month, when XLGE participants withdraw their profits since XVIX is burnt, it actually ends up increasing the floor price.
Everything Imentioned has been implemented but this is just the first chapter and I have a plan for the next stage.
This I’m very excited about, I think it has the same level if not more innovation as the first part
Uniswap Detective:
Really interesting… Seems like a flexible version of $CORE where you’re not locked in for good, still has a rising floor price but with AMPL mechanics and a burn to ensure participation.
Deg3nDev:
I plan to work on it and get it on to the testnet in two weeks or so.
Uniswap Detective:
The next stage?
Deg3nDev:
Yes, the next stage building on top of XVIX.
Uniswap Detective:
Awesome. Really looking forward to seeing that.
Alright, so I was actually really enjoying asking a few questions regarding XVIX so we are pushing time. I’m going to open it up to you guys now but perhaps we covered everything.
Let's get some questions over. Knowledge is wealth!
Section 2: Community questions
Q1) All project’s coins have their main Utilities & real-life use! So, Can you tell us what the main role of your coin is in your ecosystem? Explain its Utilities & Real-Life use cases? and Why should i invest in your coin for the long term?
Ah yes, that’s tied to the second stage actually. I have it in mind, but it is not fully planned
I think if we just look at what’s currently there then the coin is an interesting store of value.
Q2) I see XVIX token currently depends on the Ethereum platform! However, as we all know, the Ethereum blockchain currently has a lot of scalability issues! Then, what are the main reasons behind choosing Ethereum, not another blockchain, and will the XVIX token also use another blockchain in the future?
It’s possible, I like working on Ethereum though, hopefully, more L2 solutions gain traction.
Q3) Following your XLGE will you be listing on Uniswap on the same day?
Yes, will follow immediately actually as it’s just one transaction to do it all.
Uniswap Detective:
Our community really appreciates your time, the more we know the better decisions we can make and it’s one of the most interesting AMAs we have had for sure.
Thank you so much for your time @Deg3nDev. Feel free to drop in anytime, I’ll wrap this up in a recap article, and let's stay in touch pre and post-launch 👊
Deg3nDev:
thank you 🙏🙏
Important links:
XVIX:
Website: https://xvix.finance/
Github: https://github.com/xvi10/xvix-contracts
Telegram: https://t.me/XVIX_Finance
Medium: https://xvix.medium.com/
XLGE Link: https://xvix.finance/distribution
The Selective Ape Community
Telegram Chat: https://t.me/TheSelectiveApe
Telegram Announcements: https://t.me/TheSelectiveApes
Twitter: https://twitter.com/ApeSelective
