On February 18, 2021 Hxro co-founder and CEO Dan Gunsberg took to the new Hxro Network Discord server to host an Ask Me Anything (AMA) session, answering questions from the community about Hxro Network’s conception and roadmap! Here’s a recap of that first AMA.
Derek Silva, community manager for Hxro Network, kicked things off stating, “I think the biggest question people have on their mind is, ‘why?’ Why build out the Hxro Network? What's the goal?”
Dan responded saying, “historically Hxro has presented the market through a more gamified UI/UX, however since we've started, we realized the engines that our products are built have use-cases that extend well beyond what we initially created. We feel strongly that the real value proposition is not necessarily in the way the markets are presented, but in the product engines that power the platform. Our vision is to expand Hxro from a single platform into a fully decentralized trading network powered by protocols that simplify and solve the complexities of trading. As we do this, we will set forth a path to progressively evolve the network away from a single point of control, risk and failure (our team) into an open, censorship-resistant trading network that is governed by the community of builders, operators and users.”
Dan elaborated that the goal is to build out a series of light exotic and, eventually, vanilla options protocols and that Hxro envisions the majority of the option protocols that will be rolled out on network will be some form of non-linear derivative; vanilla options, and to which an end-user or operator will be able to easily create a liquidity pool with the backing of a custom automated market maker (AMM) that will soon be proposed through the Hxro forum.
Jonathan Byers, from Aegis Studio, asked if there was a whitepaper he could read. Dan said that a whitepaper was forthcoming.
Ghoul wanted to know what benefit there is to owning HXRO tokens. The answer was that HXRO will be utilized for staking to the network, network incentive rewards, and for fee payment discounts. Additionally, staked holdings will also determine someone’s voting weight in governance polls, and that anyone can read and comment on the initial staking proposals that were posted by Delphi Digital and Arca on the forum.
Noxemo asked, “Is HXRO labs working closely with Alameda and FTX?”
Dan replied saying, “Yes. Alameda is a significant investor and liquidity provider with Hxro. FTX and Hxro partnered to create two of our options markets, TIX and WIX. These are being built into protocols and will be available on network as well.”
Derek asked Dan to “elaborate a bit on why you've chosen to have this built on Solana? I suppose Ethereum gas prices might be a motivator, but I imagine there are many other forces that influenced that decision as well.”
The answer was that, “fees definitely had some weight in the decision.
Ethereum's gas prices are a real problem. Me and my co-founders’ backgrounds are in proprietary derivatives trading. We realize very clearly that you cannot sustain a market at fee levels currently imposed on Ethereum-based exchanges.
Solana is built to support a robust exchange-based network. Near immaterial network fees, 400ms blocktimes, and 50k transactions per second. At these frequencies it allows us to build out the infrastructure of our protocols in a way that can give end product builders, operators and other network users the proper tooling at scale needed to create a commercial grade ux for the user-base.”
Dan followed up about Serum, an existing decentralised exchange running on Solana, stating “We have been super impressed with what has been created thus far with Serum. We view what we are building at Hxro as the counterpart to Serum. Like, they are building the base layer that spot, perpetuals, and futures markets can be scaled on. [Hxro is] doing the same for light exotic and vanilla options.”
Jonathan asked another question, wondering if there was a roadmap or a general timeframe for a secondary market to sell contracts. Dan told him that “this is all in the roadmap. We are working on a very unique AMM solution to address liquidity that we are super excited about!”
Derek closed the session by asking, “You mentioned voting weights earlier. [Hxro] launched a forum just before we opened up the Discord. Could you elaborate on the amount of influence HXRO token holders will have in voting and governance?”
Dan answered with, “Sure. So first, as we reach sufficient decentralization, it is important to note that the full value of the network will vest back to the token. Your participation in network value (i.e. fees, etc) will be determined by your staked HXRO. Additionally, your participation as a liquidity provider, trader, operator, oracle, etc. will all offer different incentives and rewards.
Our intent is to eventually reach a point where token holders will 100% influence the network. However ,we do realize there needs to be a careful balance in order to make sure the path of the network is moving in a way that mitigates unnecessary network risks.
It's been great to watch projects like Compound, Synthetix and others decentralize transitionally so we have some level of precedent to work from. I'd be lying if I said it isn't tricky!”