Can Polkadot solve the major existing problems of DeFi once and for all?

Building Manta on Poca’s parallel chain can effectively solve the current privacy, throughput and interoperability issues of DeFi.

On June 7 at 8:00 pm, we conducted the third session of Polkadot Big Talk: Bifrost and Manta, with guests Lurpis, Co-founder of Bifrost, and Holly, Head of Marketing of Manta Network China.

Building Manta on the PoC parallel chain effectively solves the current privacy, throughput and interoperability problems of DeFi. Manta’s infrastructure must meet three characteristics, and PoC meets these needs perfectly.

First, a fast operating environment is required. Second, what is being built is a Layer1 solution that can take advantage of the benefits of a fast consensus protocol. Finally, Polka’s parallel chain architecture allows Manta to achieve interoperability.

–Holly, Head of Marketing, Manta Network China

Bifrost will start bidding from the first slot and always use the Bifrost mainnet for Kusama => Polkadot bidding, BNC will act as the mainnet governance token as a Kusama bidding incentive with an incentive rule of TGE 50% + linear unlocking of the remainder in 48 weeks. Over 40,000 kusama addresses have been successfully reserved on the official Bifrost auction page ksm.vtoken.io, representing 40% of the total number of Kusama addresses.

–Bifrost Co-founder Lurpis

The following is the original interview.

01
Introduction

Vernacular Blockchain: Welcome to today’s Vernacular Big Talk AMA, first of all, please say hello to everyone, and briefly introduce Bifrost and Manta respectively.

Lurpis: Hello, I am Bifrost Co-founder Lurpis. Bifrost is positioned as a Layer1 network for providing liquidity for pledged assets in the DeFi base protocol in the Boka ecosystem, which provides the invocation of Wasm smart contracts in the Bifrost network by casting interest-bearing assets.

Bifrost offers two main types of derivative assets: 1. vToken for PoS networks, such as vDOT vKSM, vETH. 2. vsToken for slot bidding, such as vsKSM and vsDOT.

Bifrost was also one of the first projects to receive a Web3 Foundation Grant and join the Substrate Builders Program, receiving millions of dollars in funding from HyperSphere, CMS, NGC, DFG, OKEx and many others.

At the same time, Bifrost launched vETH, a derivative asset for ETH 2.0 minting, which has already exceeded $60 million in size, and these assets will be the first cross-chain assets in the PoC ecosystem to enter the PoC parallel chain ecosystem.

As the Kusama slot auction is approaching, Bifrost has opened a reservation for Kusama slot auction first. As of 12:00 yesterday, 42,200 KSM addresses have been successfully reserved on the chain.

Holly: Hi everyone, I’m Holly, Head of Marketing for Manta Network China, Manta is a privacy-protected parallel chain on boca, based on zkSNARKs technology, which provides privacy protection for DeFi activities such as transfers and transactions on boca. We have two early applications, MantaPay for privacy payments and MantaSwap, a privacy Token exchange protocol.

MantaPay is a 1:1 privacy encapsulation of the main crypto assets on a boca that can be cast into privacy Tokens, which can then be used for payments and storage. is unique in the DeFi world and is of great interest to many people.

With MantaSwap, we hope to solve the current problem of transparent decentralized platforms, and as DeFi is recognized by more and more traditional finance, we think the scale of privacy Dex may surpass that of Uniswap in the future.

In the future, we will also gradually launch more products, such as privacy debit, privacy synthetic assets, privacy insurance, etc. At the same time, we also cooperate with many boca project parties to provide them with plug-and-play privacy protection services, and our long-term vision is to provide privacy protection infrastructure for the whole DeFi world.

Our team has top blockchain and cryptography experts from Harvard University, MIT, Algorand, etc. Meanwhile, Manta also completed a multi-million dollar funding round led by Polychain with the participation of Three Arrows Capital and Multicoin earlier this year, and is the only all-Chinese team project led by Polychain this year.

02
What are the special advantages of Polkadot Eco’s future?

Can Polkadot solve the major existing problems of DeFi once and for all?

Vernacular Blockchain: Bifrost and Manta are both Defi projects on the PoC ecology, and it seems that the DeFi ecology on Ether is unique at the moment, so may I ask you both, what is the basis for choosing the DeFi application on the PoC ecology? What do you think are the particular advantages of the future of the Polka ecosystem compared to other public chains?

Lurpis: The performance deficiency of Ether has already attracted a lot of attention from the Ether development team, because Ether is not a layered blockchain network, and the framework of mixing the settlement layer with the application layer leads to the slower processing speed and higher gas fee of the settlement layer the more applications Ether has.

In addition, smart contracts are not “smart” enough, and their code logic can only be passively triggered, not actively executed, which also limits the development space of smart contract-based projects.

Boka has learned from the shortcomings of Bitcoin and Ether early on, and has been clearly positioned in terms of basic performance at the beginning of construction. In terms of project developers’ personal experience, we at Bifrost found out the shortcomings of Ether-based single-chain smart contract development before we started, and it was difficult to replicate this model to multiple chains.

After technical research, we found that the combination of Polkadot relay chain and Substrate development framework can solve this hard problem very well, which is why Bifrost was born.

So now we are developing based on Substrate 2.0, which has the features of Polkadot such as no fork upgrade, heterogeneous cross-chain, shared security, etc. We have many custom modules such as EVM, Swap, vToken Mint, etc., which can be used in Polkadot shared security to complete a variety of smart contracts for derivatives, DEX, Staking liquidity, etc. Holly

Holly: Although 90% of DeFi products are currently built on Ether, the current network congestion and high Gas cost of Ether will make the user experience much more costly, which is the reason why many privacy projects on Ether are currently in a development bottleneck.

We believe that building Manta on the PoC parallel chain can effectively solve the current privacy, throughput and interoperability problems of DeFi. In order for the transaction to be both efficient and private, Manta’s infrastructure must meet three characteristics, and Polka meets these needs perfectly.

First, we need a fast operating environment. Using zkSNARK ensures that transactions on the chain with privacy features are completed smoothly. While the verification process is relatively fast and inexpensive in newer zkSNARK solutions such as Groth16, it still consumes a lot of computational resources and has a “taxing” effect on other blockchains. substrate uses a WASM-based runtime environment and this runtime environment can This makes Substrate much more efficient than EVM.

Second, in order to provide the best user experience for our decentralized platform with privacy-preserving features and transaction functionality, we needed a fast consensus protocol. We want to de-trust by decentralizing. Therefore, we are building a Layer1 solution that can leverage the benefits of a fast consensus protocol, and Poca’s GRANDPA consensus protocol is currently one of the fastest consensus protocols on the market at this stage.

Finally, Poca can implement different functions through various parallel chains, and by exchanging information through relay chains, Poca’s parallel chain architecture enables Manta to achieve interoperability. In this way, any parallel chain assets can interoperate through the Manta interface, and Manta can also provide plug-and-play privacy protection services to other polka projects, which presents a huge opportunity to develop the Manta ecosystem.

03
Bifrost: The Role as a DeFi Foundation Protocol

Vernacular Blockchain: There is no doubt that the market is looking forward to the polka ecology, and the advancement of parallel chain slot auctions may usher in a period of rapid development for the polka ecology. bifrost, as a DeFi base protocol for the polka ecology, strives to be the infrastructure for providing liquidity for pledged assets. So, what model will Bifrost use to achieve this goal? Can you share with us specifically?

Lurpis: After Biforst gets a slot in the parallel chain, our role as a DeFi base protocol will be fully realized. staking derivatives will become a common DeFi asset passed between parallel chains, and we will first go live with SALP business to aggregate derivatives liquidity in slot bidding by releasing pledged liquidity for other parallel chains. Initially, we will establish a boca derivatives market.

At the same time, various functions of the Bifrost main network will be opened through the governance module referendum, such as BNC transfer, etc. After the vToken minting function is launched, the advantages of Bifrost derivatives will be officially launched. vToken can be made into cross-chain interest-bearing assets through the advantages of parallel chains, and through the built-in bidding ranking mechanism, providing users with the possibility of higher staking revenue. The possibility of higher staking revenue.

vToken is compatible with any DeFi product and can be used for DeFi play while receiving staking revenue. For example, vToken can be collateralized by other DeFi parallel chains to leverage staking revenue.

04
Manta
Privacy Protection

Vernacular Blockchain: Manta Network is known to have conducted a survey on the need for a privacy-protected decentralized platform. A cryptocurrency privacy report was written, which mentioned that 70% of users have concerns about transaction privacy, and over 80% of users are concerned about wallet address privacy. So it seems that privacy is a very important concern, what will Manta do to address this?

Holly: First of all, the need for privacy has always been there, especially for DeFi. A simple example is that you don’t want your bank account assets and transactions to be known, but in the DeFi world all financial data is transparent and not really anonymous.

For example, many people like to track the address of some large accounts on the chain, which is equivalent to telling others about their operations and positions at any time, and can easily be sniped by hackers or counterparties.

I believe that not only the big investors, but also more and more people will realize the importance of privacy in the future as DeFi becomes more popular and comes out of the circle, which of course requires us, the project owners and the media, to work together to do user education.

In addition, in the decentralized platform, the transparency of blockchain brings the opportunity to grab the deal and become a paradise for scientists. This is also a very important point that needs to be solved for decentralized deals at present.

Manta wants to solve these problems by improving the privacy of the blockchain. The cryptographic solution we use, zkSNARK, brings privacy to every transaction and user identity. While users themselves can still look up their transactions, they no longer have to worry about others being able to monitor those addresses.

05
Parallel Chain Slot Auctions
What has Bifrost done to prepare for this?

Can Polkadot solve the major existing problems of DeFi once and for all?

Vernacular Blockchain: The long-awaited parallel chain slot auction will finally be officially launched soon. What preparations have Bifrost made for the upcoming Kusama slot auction? What are the unique competitive advantages or strategies?

Lurpis: Bifrost’s product features are designed to provide liquidity to all locked-in assets, and of course slot auctions are no exception. We have designed the SALP (Slot Auction Liquidity Protocol) for slot auctions to reduce the opportunity cost of the asset during lock-ups. This protocol will be deployed for the first time at a Bifrost slot auction and will help support Bifrost users with a “no lock-up” service.

Bifrost will start bidding from the first slot and always use the Bifrost master network for Kusama => Polkadot bidding.

BNC will act as the mainnet governance Token as an incentive for Kusama bidding, with an incentive rule of 50% of TGE + linear unlocking of the remainder in 48 weeks. Over 40,000 kusama addresses have been successfully reserved on the official Bifrost bidding page ksm.vtoken.io, representing 40% of the total number of Kusama addresses.

Bifrost’s Slot Auction Liquidity Protocol SALP will provide auction liquidity services to other parallel chains after Bifrost goes live on parallel chains, meaning that bringing together more parallel chains will increase the overall volume of derivatives and create a derivatives market with deep liquidity as slots are auctioned. This will be the new Token usability of KSM above Staking and parallel chain pledging.

Vernacular Blockchain: Recently many boka eco-projects have been announcing their Kusama slot bidding strategies one after another, and it looks like the rules of participation are dazzling. What do you think you should focus on as an average user? What is the most appropriate way for the average user to participate?

Lurpis : Boka can be said to leave all the innovation and imagination to the projects themselves, but the cleverness of it is that it can promote competitive relationships between different projects. So the reward mechanism for different parallel chain auctions is customized by the project owners themselves. The main points that users need to consider are.

  1. whether the project uses the first network to participate in Kusama bidding. The concept of advance network is similar to Kusama, with a real Token economy model, which can be regarded as a functional test network for the main network of the project, but its market value is much lower than the main network.
  2. Advance networks are often designed to have more Token issuance. However, since the market value will be much different from the main network, its long-term value needs to be carefully considered by users, after all, most Token distribution models require linear release. Of course, the proportion of parallel chains that can be released immediately can be compared for reference. 06
    Manta
    Privacy Computing Technology Alliance

Blockchain in vernacular: On April 19, Privacy Computing In China (PCIC), the first decentralized governance organization in the field of blockchain privacy computing in China, announced its establishment. It is understood that Manta Network is one of the founding organizations, please give us a brief introduction of this alliance? What are the future goals of this consortium?

Holly: PCIC (Privacy Computing In China) is a joint initiative of Manta Network, Oasis Network, CertiK, Phala and other 9 active builders of the privacy computing track. PCIC members will take on the responsibility of organizing and managing the community, and regularly deliver the latest voices and topics in privacy computing to the market.

At the same time, we will work together with all members to actively organize AMA, summit conversations, interview content, popular science content, online activities, offline activities and other forms of activities to achieve the purpose of ecological building.

In the future, PCIC will bring together experts and scholars, research institutions, leading technology companies, investment institutions, KOLs, technology developers, and traditional Internet companies in the field of privacy computing to popularize technology principles, explore high-quality projects, train developers, and develop technology application scenarios.

PCIC will be committed to promoting market education, resource copolymerization and industry innovation in the field of privacy computing, and to greeting the more frenzied privacy computing market wave in 2021 with an authoritative, open, inclusive and cooperative posture.

As an active builder of the privacy computing track, we hope to bring together the resources and strengths of the industry through the technology alliance to promote the development and growth of the privacy computing ecosystem.

07
Manta
Compliance

Can Polkadot solve the major existing problems of DeFi once and for all?

Vernacular Blockchain: With privacy and anonymity deals, is there some friction in the face of regulation, such as compliance issues because of opacity? What are your considerations in this regard?

Holly: First of all, I think the most important thing about blockchain in the Web 3.0 era, besides being non-permissive and censorship-resistant, is privacy, such as Manta, which uses the algorithmic solution zkSNARK to bring privacy to each transaction and user identity. While users themselves can still check their own transactions, no one else can monitor it.

But at the same time, these features undeniably present additional regulatory challenges in terms of AML and protecting investor rights. In addition to some regions banning all crypto activity altogether, some regions will have more refined compliance requirements and policies, which makes the application of cryptocurrency scenarios more varied from region to region.

For Manta, we are working closely with a number of legal advisors and are closely monitoring the regulatory environment in this area. We are working with law firms that have many years of experience in cryptocurrency operations, such as Paul Hastings, a firm that has been with Coinbase since its inception, and Horizon Laws, a firm that has worked on projects such as Solana.

We recognize the importance of regulatory compliance and believe that it does not come at the expense of privacy; rather, the two can coexist.

In addition, Manta is not a dark pool or coin mixer or anything like that, it’s just about protecting address privacy and not about coin mixing like some anonymity solutions, Manta’s privacy solution is auditable and third parties can look up transactions with the id provided by the user, which ensures that transactions are auditable.

08
Parallel Chain Slot Auctions
Impact on the whole blockchain industry

Blockchain in Vernacular: It is said that the auction of parallel chain slots will mean that the boka ecology starts to really come to fruition. What do you think will be the direct impact on the blockchain industry after the auction of the parallel chain slots is over or when the polka ecosystem really gets off the ground?

Lurpis : Bitcoin’s original intent was to create a peer-to-peer electronic cash system, and while it didn’t deliver on that vision, the features of blockchain applications can solve the biggest problem in human society: trust. Blockchain development has evolved to the point where the biggest problem to solve is how to create a de-trusted application system with high performance at the same time, from a single chain of ethereum to many multi-chain blockchains.

It is not a blockchain that integrates the data transmission and settlement layer with the application layer, but it tries to make the settlement layer lighter, leaving the rest of the imagination to the blockchain that can be connected with the settlement layer, and at the same time, it connects the public chains that have already established the ecology to form a truly layered “ecology “structure.

So the milestone of Polka will be officially opened after the bidding of parallel links into it, and Gavin wood also said: it will be linked into Polka by the Alliance, and the emerging road of blockchain will not be the unity of all chains, but the interoperability of cross-chains.

Holly: As a representative of cross-chain projects, Poca is known as a blockchain project that can be compared to Ether. The auction of parallel chain slots is an important milestone in Poca’s roadmap and also the highlight of Poca this year, which means its cross-chain vision will start to fall into place.

Gavin Wood has said that one of the biggest goals of Poca in the future is to build chain bridges with other blockchains. The current blockchain world is more like a data island. If Poca can bridge to mainstream blockchains such as ethereum and bitcoin through the transit bridge, then in the future, it will realize the communication and interoperability of data and assets between different blockchains. This will be of great significance to the Poca ecology, and the blockchain ecology as a whole.

For project parties, successful auctioning of slots to become Poca parallel chains will be able to share the consensus and security of Poca network and enable business sharing and interaction while realizing their different business lines, which is a great advantage for project parties.

The slot auction is an important part of the Poca ecology, but how the project will be implemented to bring real valuable applications is what we should focus on. Getting a parallel chain slot is only the first step for Manta to develop in the future, but the future goal is to make Polka and the projects on Polka that really need it develop together through Manta privacy protocol.

How to get the real projects with long-term value and demand through the Pokka Token holders in their hands is the issue that Pokka and the whole ecology need to focus on.

09
New layout and plan

White Talk Blockchain: Finally, I would like to ask what new layout and plans you have for the future development of the project, share them with you.

Lurpis : If 2019 is the year of laying the foundation, then in 2020, we have completed the basic frame structure of the house, and in 2021, we want to complete the soft and hard decoration of the house and open the living function. So we launched Bifrost Dapp Beta in 2021Q2, opening up our product operation functions for users to experience and providing a convenient page for vToken exchange.

At the same time, we closely arranged the work related to the launch of parallel chain, completed the development of parallel chain crowdfunding and SALP module to provide liquidity scenarios for users participating in parallel chain crowdfunding; bid for Kusama parallel chain card slot first, and Bifrost main online.

Secondly, open BNC transfer and mint incentive function through referendum after the main online launch, and gradually open BNC value capture. Finally, test cross-chain collaboration related functions based on Rococo, a test platform for Boka parallel chain, and bid for Boka parallel chain slots in due course.

Through market activities and business expansion, we will promote the casting of vToken, develop the usage scenarios of vToken and increase the liquidity of vToken. We will let the new features go live on the main network step by step, steadily. in the second half of 2021, Bifrost will continue its efforts and work on providing liquidity for pledged assets. Creating a new landscape for DeFi!

Holly: The Manta team has been hard at work preparing for the launch of the beta network, and we have completed and benchmarked a prototype of our privacy DEX MantaSwap product, which has shown excellent performance.

At the same time, our first privacy payment product, MantaPay, has been officially integrated with the Polkadot.js web application, and the initial prototype has been completed and is expected to be available soon.

After the beta site is launched, we have some bounty programs for user experience, and we will also announce the specific Kusama slot auction strategy soon, where we will give up to 30% of the Calamari Network Token (KMA) on Kusama to users who participate in crowdloan. incentive.

We will have early liquidity Token incentives and minting incentives when the parallel chain goes live. There will also be more governance incentives in the future to make the project more decentralized.

10
Community Q&A

Can Polkadot solve the major existing problems of DeFi once and for all?

1、Who are Manta’s institutional investors and what is the current funding situation? Do you have any plans to get more investment in the future?

Holly: These are our investors, Manta has previously closed a multi-million dollar seed round led by Polychain with participation from Three Arrows Capital, Multicoin, Alameda, Hypersphere, Manta is also an official Boca Web3 Foundation grant recipient, a member of the Substrate Builder Program, and a member of the Berkeley University Blockchain Accelerator. Substrate Builder Program member, Berkeley University Blockchain Accelerator member.

2、Bifrost on the derivatives track, what is the different experience for users?

Lurpis : By sharing Polkadot consensus security Bifrost will say that the derivatives casting will be done through XCMP, the assets are more secure and the cross-chain experience is better.

3、What are the privacy highlights of Manta?

Holly: Manta is based on zk-SNARK to design a series of Defi privacy protection protocols. zk-SNARKs are proven to be relatively safe and efficient privacy technology, which can achieve end-to-end complete anonymity, and the sender can prove the legitimacy of the transaction to the verifier without revealing the amount, address and other details of the transaction. And among current DeFi products, MantaSwap is the only privacy DEX that uses zk-SNARKs technology.

  1. What are the improvements and innovations in the overall ecosystem and what are the advantages of Bifrost? Lurpis: Referring to this chart, the biggest advantage of Bifrost is the native interest-bearing assets, while building DeFi business in PoS consensus, Staking derivatives are an indispensable asset attribute, thus solving the problem of conflicting Staking returns and DeFi returns.

5、What are the differences and advantages of Manta’s privacy mechanism and cosmos eco-SECRET?

Holly: The underlying technology is different, SECRET is based on TEE, Manta is based on Zk-SNARK, which is completely cryptography-based technology.

6、What mechanism will vToken use to attract investors? What factors will enable late stage investors to actively join in and believe in a long term project that will further drive the ecological development?

Lurpis: 1. vToken itself has minting and usage scenarios, such as solving user liquidity, lowering the threshold of Staking, solving DeFi revenue conflicts, etc.; 2. in order to expand the market, Bifrost will launch a minting incentive mechanism for vToken, which will expand the scale of vToken minting faster; 3. vToken will be a chain-native asset that will be efficiently integrated into the development of Dapp (DeFi, NFT, Game, etc.) by the Bifrost Wasm contract.

  1. In what way can Bifrost generate profit/revenue to sustain your project and what is its revenue model? How does it make it a win-win situation for both investors and your project? Lurpis : Bifrost vToken is an interest bearing asset, the interest comes from the inflation of the PoS network (PoS network security maintenance cost), so as the size of Bifrost vToken minting increases, both the users and the network will get a significant return, and Bifrost will take A portion of the commission will be used to feed BNC.
  2. What are the similarities and differences between the Manta and Phala projects? Holly: Phala is based on TEE and favors hardware, while Manta is based on zk-Snark and protects on-chain data.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/can-polkadot-solve-the-major-existing-problems-of-defi-once-and-for-all/
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