MonoX AMA Highlights: A Conversation with BTSE on August 12, 2021

On August 12, 2021, MonoX co-founder Hugh Flood and product manager Calvin Wei joined the BTSE Exchange Telegram chat for an AMA.

MonoX is a multi-layer, multi-chain protocol with the objective to create a new design for capital inefficiencies caused by liquidity pairs by using a single token pool model. MonoX achieves this goal by grouping deposited tokens into a virtual pair with the vUSD stablecoin instead of using liquidity pairs.

Having already launched its testnet, MonoX plans to launch its mainnet in Q3 2021, as well as introduce derivatives trading and auction + margin trading in Q4 2021 and Q1 2022, respectively.

Here are the highlights of the AMA in case you missed it.

• • •

Introduction

BTSE Moderator:

Hello everyone, and welcome to another exciting AMA at BTSE. Let’s welcome both Hugh and Calvin. Please go ahead and introduce yourself.

Hugh Flood:

Hi, I’m Hugh, the co-founder and head of Growth at MonoX. I’m a two-time blockchain project co-founder, ex-banker, and former business manager and community lead at ConsenSys. I have expertise in business management, growth marketing, and token launches (4 in 2021), with experience in venture capital. I have been involved in crypto since mid-2016.

Calvin Wei:

My name’s Calvin. I’m a product manager at MonoX. I’ve been investing in crypto since 2017, and I’ve worked in traditional tech companies for close to ten years now, including past roles at Lending Club, a fintech marketplace lending company.

• • •

About MonoX

BTSE Moderator:

What words would you use to characterize MonoX, and why?

Hugh Flood:

MonoX is a multi-layer, multi-chain protocol with the objective to create a new design for capital inefficiencies caused by liquidity pairs by using a single token pool model.

MonoX achieves this goal by grouping deposited tokens into a virtual pair with the vUSD stablecoin instead of using liquidity pairs.

Calvin Wei:

We’re so excited to introduce Monoswap, the first product of MonoX. Project owners can list their tokens for free without the burden of capital requirements and focus on using funds for more important aspects of their business (marketing, engineering, etc.) instead of providing liquidity.

Hugh Flood:

A bit more about us and why we are excited about what we are building:

1. Single token liquidity pools — we’re introducing a new stable coin vUSD backed by assets in our pool

2. 100% capital saving for new projects — trustless listings due to single token pool

3. Saving on trading fees for our investors — trading fees saving by avoiding lengthy transaction path (multiple pool pairs) vs. traditional AMM, e.g., Uniswap

4. LPs are more profitable — Lending and swap share the same pool, boosting LP profits.

5. Removing the need for double collateralized tokens. If you have aETH, ETH2X-FLI, etc. — tokens that already have inherent value, we’re the only capital-efficient solution for innovative and already collateralized tokens

Calvin Wei:

Most of all, we want to help build and shape the new world of DeFi, while having a positive impact on the community. We believe we can be the home to new innovative projects and tokens that are otherwise illiquid due to already being collateralized. We aim to make it easier to launch for DeFi projects and easier for investors to find awesome new projects.

• • •

What Problems Does MonoX Solve?

BTSE Moderator:

What is the primary issue that the core team is attempting to resolve?

Hugh Flood:

The way current DEX’s work is that they cause capital inefficiencies for all participants (traders, LPs, and projects) due to the fact they use liquidity pairs.

Calvin Wei:

It’s expensive, intensive, and also results in siloed capital.

BTSE Moderator:

How is the team approaching the problem?

Calvin Wei:

We solve this problem with single token liquidity pools — grouping deposited tokens into a virtual pair with vUSD allows for very innovative use cases.

• • •

Investors & Partners

BTSE Moderator:

Please share with us about your investors and partners!

Calvin Wei:

We have some awesome strategic partners that we’re so excited to share with you but are not yet public (stay tuned!). We can share Polygon, as we were given a grant, and will launch with them as well when we go live. Also, SIL, which is a single-sided yield aggregator.

Halborn is our security partner and will provide us a thorough analysis and comprehensive audit of smart contracts to correct design issues, errors in code or identify security vulnerabilities on a monthly basis. We’re also partnered with Peckshield, an additional security partner — we take security very seriously here at MonoX.

Hugh Flood:

We were also in the CoinList Seed Spring 2021 cohort, which was a great experience to meet other startups and up-and-coming projects, as well as connect with investors.

We are excited to share more of our partners and investors in the coming weeks…so keep an eye out!

• • •

The Next Generation of DeFi Liquidity

BTSE Moderator:

Now, let’s talk about the solution of your project. Your website stated that MonoX will bring the next generation of DeFi liquidity to life. What does that mean?

Hugh Flood:

This simply means that our new protocol design is a first for DeFi.

There are other projects also working on solving the liquidity pair problem and capital inefficiencies with DeFi 1.0. However, we are the first project to offer both single-sided liquidity and permissionless listing of new tokens.

BTSE Moderator:

Which feature of MonoX are you most excited about? Tell us why.

Calvin Wei:

At MonoX, we believe that 2020 showed the world what the baseline for value creation is regarding DeFi protocols. However, DeFi 2.0 will see projects like MonoX find ways to improve and optimize the inefficiencies of current protocol models.

Our innovative new protocol design has the potential to change a lot of the capital inefficiencies with DeFi 1.0 DEX models.

The killer use case here is to launch with zero collateral. With Uniswap, you have to put in $1 million of ETH if you are launching $1 million of ABC token. With MonoX, all you need is your own ABC token. That’s 0 collateral, or 100% capital savings.

This is especially valuable if you are working on innovative projects or when your token is already backed by another asset.

As an example, AAVE’s interest-bearing token aETH on Uniswap has extremely low liquidity. Why? Because aETH is already backed by ETH. Making every single aETH tradeable would require 2ETH worth of value on Uniswap and other traditional AMMs. The first ETH is spent converting to aETH; the second is building the pair to make it tradeable.

Like aETH, if you’re building any financial derivatives, game tokens, synthetic tokens, or innovative tokens, we are the best platform to make it possible.

BTSE Moderator:

Do you feel that single token liquidity pools will inevitably replace what is currently available in the market?

Hugh Flood:

Yes, we certainly do. Our model is more capital efficient for traders, liquidity providers, and also projects launching their own token. It’s a win-win-win for all participants.

• • •

How MonoX Helps New Projects Launch

BTSE Moderator:

MonoX allows projects to launch new tokens with ZERO capital. Is that true? How does that work?

Hugh Flood:

So, as explained above, with DEX’s that use liquidity pairs such as Uniswap, you’d have to deposit $1m of ETH if you are launching $1m of your ABC token. The liquidity pair is 50% of your token and 50% to create the pair. This is pretty expensive for projects looking to launch their token in a decentralized way.

However, with MonoX, all you need is your own ABC token. That’s zero collateral. All you need to do is set a starting price and list your token on our exchange. This means with our platform, projects get 100% capital savings.

• • •

MonoX Tokenomics ($MONO)

BTSE Moderator:

Tokenomics! Tell us about your token.

Calvin Wei:

$MONO is a governance token for MonoX. $MONO holders will have ownership in the treasury and also be able to vote on protocol TX fees, treasury revenue, prospective new features, etc. $MONO holders will also be able to vote in official pools as well

BTSE Moderator:

Ok. For those interested in becoming a $MONO holder, where and when will the project launch the native token?

Hugh Flood:

Stay tuned for our TGE details. We are going to be able to launch in Q3 2021. We might have some news on that shortly, so keep an eye out on our socials for updates.

BTSE Moderator:

For the people who want to learn more about the MonoX token, where could they find more information?

Hugh Flood:

You can learn more here.

• • •

Solving Liquidity in DeFi

BTSE Moderator:

In solving the dilemma of liquidity on DeFi, how does MonoX fit into this?

Calvin Wei:

At first, our core features will be trading ERC-20 tokens, but our protocol also creates opportunities for additional DeFi features such as lending and borrowing, derivatives markets, and offers a more capital-efficient way to trade ‘innovative tokens’ such as NFT shards, synthetics, gaming tokens, and insurance tokens.

While simultaneously providing a robust stablecoin that is backed by multiple assets in MonoX

BTSE Moderator:

Very cool. How does MonoX compare to competitors?

Hugh Flood:

We know that there are lots of AMMs and the space is very competitive. However, we are the only DEX that offers both single token liquidity and permissionless listing of new tokens.

• • •

Questions from Community

Vie Silva (@vivie69azha):

What makes MonoX Finance convenient for being integrated into the Polygon network, and how about probability for other blockchains in the future to make a stronger ecosystem?

Hugh Flood:

When we launch, it is true that we will be launching on both Ethereum and Polygon. This is because Polygon offers increased scalability, low gas fees, and faster transaction speeds. In the future, we will also be launching on Solana and BSC.

• • •

True Love (@ChristianeTrue):

Do the token holders have the right to participate in the governance of the project? What kind of decisions can they vote on about the project?

Calvin Wei:

Yes, absolutely. We’ll have a DAO where $MONO holders will be able to own the treasury and will be able to vote on protocol tx fees, treasury revenue, official pools, and prospective new features.

• • •

Jami (@fuel4mindd):

What is your primary future goal to achieve? How will your project achieve that? And what’s the current status of that right now?

Calvin Wei:

Our ultimate goal is to make it easier for innovative projects to bootstrap funding and for investors from everywhere to be able to find these new innovative projects — all in a capital-efficient manner.

• • •

Waugh (@DorseyWaugh):

What is your strategy for building a strong community? Do you agree that the power of community will lead your project to develop globally? What services do you provide to the community?

Hugh Flood:

We recently launched our Ambassador program. Our community is a global one. So far the strong our community members are organizing events in Kazakhstan, Russia, and there was also a MonoX meetup in Uganda recently!

If you want to learn more about our Ambassador Program, you can get started here.

• • •

Stu Fuk (@hoahonggai1):

How secure is your smart contract’s code? Did you ever audit it via any third party? What has been the biggest challenge you have faced in your project’s development?

Calvin Wei:

We’ve partnered up with two companies — Halborn and Peckshield. Anytime we make changes to our smart contracts, they get audited. You can find more info here.

In terms of the biggest challenge? We want to do it all, but we’re only human. For now…

• • •

Twitter Questions

BTSE Moderator:

Q1 — How will you manage your platform when something surprising occurs in the future, such as a hack? What processes are in place to prevent this from happening, and what would be your team’s potential response/course of action?

Hugh Flood:

Security is our top priority for our end users — we do full regression testing before every deployment. We’ve automated our QA testing to pair with our manual testers, and on the front and back end, we’ve recently implemented unit testing. If something goes wrong, we will do our best to rectify the situation, and we will have an insurance pool just in case.

Calvin Wei:

Also, as I mentioned earlier, we’ve partnered with Halborn and Peckshield to make sure our smart contracts are up to scratch. Any time we make changes to the code, we go through the auditing process.

• • •

BTSE Moderator:

Q2 — Can you list 1–3 killer features of this project that make it better than its competitors? What is the competitive advantage your project has that you feel most confident about?

Calvin Wei:

We touched on this earlier, but we can’t stress these killer use cases enough — single token liquidity is a game-changer

First, projects save tons of money by listing their token via Monoswap. Then, instead of needing to match a token pair with equal value, they can save that $200K+ on a smart contract developer or on marketing, for example.

Second, tokens that already have inherent value are now tradeable. Instead of needing to pair 1 aETH to 1ETH (2 ETH of value in total), they just need to provide 1 aETH for liquidity, and it’s immediately tradeable.

Lastly, single token liquidity as a model truly opens up a wide range of use cases that aren’t possible with traditional AMMs.

• • •

BTSE Moderator:

Q3 — You claimed that MonoX’s two-tiered pool system for Official Pools and trustless listing pools makes it harder for rug pulls and scam token listings to operate. So, how does your pool system actually counter rug pulls? Can you please explain how it will stop such scam tokens?

Hugh Flood:

Here’s how a normal rug pull works on Uniswap:

Step 1 — Build a new token (ABC) and list it on Uniswap using a pair of, say, $100,000 ABC and $100,000 ETH.

Step 2 — Start trading/marketing, so this token gets lots of traction and a very high APY. Also, many attackers choose to do liquidity mining, so users will deposit their LP token to earn ABC token or some BCD tokens.

Step 3 — Users purchase ABCs and deposit ABC-ETH pair using their own ETH. At this point, the price of ABC went up, and the ETH balance went up.

Step 4 — Attacker mints additional ABC and sells them on Uniswap, draining the ETH in the pool.

As you see, in this scenario, in Step 3, users won’t be depositing vUSD. Instead, users will only be depositing ABC. So, the vUSD balance doesn’t change at all, and the attacker won’t be able to drain the user’s ETH.

In our case, with MonoX, we have a tiered pool system.

Official pools are actually pools that are trusted by the community and/or pre-vetted. Eventually, we aim to have official pools voted in via DAO.

In terms of unofficial pools, the vUSD balance can never go below 0. Therefore, every time a token is bought, vUSD is minted, and every time a token is sold, vUSD is burned.

Because the vUSD balance of a pool can never go below 0, there’s a built-in mechanism to limiting the effects of rug pulls.

We also have features and warnings in place to protect our users and make them aware of any funny business regarding token addresses.

• • •

BTSE Moderator:

Q4 — Is MonoXFinance a global project or a local project? At present, which market do you focus on, or is it focused on building and growing to gain customers, users, and partners?

Calvin Wei:

MonoX is a global project in the truest sense of the word. The core team is from all around the world: Turkey, Belarus, Hungary, America, Vietnam, China, Malaysia, Singapore, Romania, Costa Rica, India, Nepal, and I’m sure I’m missing some here (and hoping to add more to this list in the future!)

Our community members are organizing events in Kazakhstan, Russia, and there, our first MonoX community meetup was recently held in Uganda!

Because of our awesome community, we want to open up MonoX to the world. That’s why our next deployment will include non-English language support for: Spanish, Russian, Chinese, Turkish, and Korean.

We’re also looking to implement Ukrainian, and if other members of our community are interested in helping translate to their native languages, our Ambassador program is open!

• • •

BTSE Moderator:

Q5 — I read that you currently run the MonoX Monogenes Ambassador Program, which is constantly acquiring ambassadors. So, could you tell us what the role of an ambassador is? How can we participate in this program? And what benefits does it provide?

Hugh Flood:

Of course!

Our Ambassador program is open! We’re looking for some amazing folks in the following channels:

● Tech projects and product

● Events and Meetups

● Content and Branding

● Social Media and Outreach

You can find more details here about how you can participate and the benefits it provides.

It’s a meritocracy in the truest sense of the word, and we recognize great content and thoughtfulness. So, we hope some of the great BTSE community that we have met today will join us!

BTSE Moderator:

Awesome! Thank you for answer the questions from the community!

Hugh Flood:

We thank the community! Fun questions

Calvin Wei:

Thanks for having us; it’s been a blast

• • •

Future Plans & Developments

BTSE Moderator:

Please share any possible developments, partnerships, or listings!!!

Calvin Wei:

Our beta is currently live! We’ve deployed on both Kovan (Ethereum) and Mumbai (Polygon). We already did a bug bounty last month for users to test the product.

You can test it here.

We can’t announce too much more, but we do plan to build on Solana and BSC as well in the future.

BTSE Moderator:

Any current plan that you could share? Please tell us a bit more about the long-term objectives.

Hugh Flood:

Let me share a bit more of our roadmap:

COMPLETED

● Q2 2021 — Testnet Launch

● Monoswap and vUSD launch on Ethereum V1 Kovan + Polygon Mumbai with full swap and liquidity features.

UPCOMING

● Q3 2021 — Mainnet Launch — Monoswap and vUSD launch on Ethereum V1 mainnet + Polygon with full swap and liquidity features.

● Q4 2021 — Lending & Derivative Launch — Trading of derivatives of ERC20 tokens and lending/borrowing on both L1 and L2.

● Q1 2022 — Auction + Margin Trading — Decentralized trading using leverage.

Our long-term objective is to become one of the top-tier DeFi projects.

BTSE Moderator:

How are you trying to advertise MonoX so that people are knowledgeable and prepared to invest in it?

Hugh Flood:

Part of our go-to-market strategy is the fact that we are an agnostic blockchain protocol. Our key killer use case is that new projects and developers can launch their token without the burden of capital requirements due to our single token pool. We are perfect for scaling emerging ecosystems (like Solana), as we can help projects launch quickly and economically.

We are also working with our global strategic partners and VC network to raise awareness for MonoX in different parts of the world and different communities.

BTSE Moderator:

What should the community anticipate in the near future for events?

Calvin Wei:

Our public sale and product launch are our most anticipated events that will soon be available for our community. Stay tuned!

• • •

MonoX’s Social Media

Find out more and connect with MonoX through these channels:

Twitter: https://twitter.com/MonoXFinance

Website: https://monox.finance/

Telegram: https://t.me/MonoXOfficial

Discord: https://discord.gg/Kyv5RFQu

Beta: https://bit.ly/3l21Fq2