{"id":2625,"date":"2020-10-30T09:23:57","date_gmt":"2020-10-30T06:23:57","guid":{"rendered":"https:\/\/esatoshi.club\/?p=2625"},"modified":"2020-10-30T09:24:00","modified_gmt":"2020-10-30T06:24:00","slug":"momentum-x-satoshi-club-ama-recap-from-26th-of-october","status":"publish","type":"post","link":"https:\/\/satoshi-club.esipick.com\/index.php\/2020\/10\/30\/momentum-x-satoshi-club-ama-recap-from-26th-of-october\/","title":{"rendered":"Momentum x Satoshi Club AMA Recap from 26th of October"},"content":{"rendered":"\n

On October 26 Satoshi Club held an AMA\nsession with our friends from Momentum<\/a>. Our\nguest was @alex448844<\/a>.<\/p>\n\n\n\n

The total reward pool was 1500$ and\nwas divided into three parts. In this AMA Recap we will try to summarize some\nof the most interesting points for you.<\/p>\n\n\n\n

\n\n\n\n

PART 1, INTRODUCTION AND COMMUNITY QUESTIONS<\/strong><\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>Hello, Satoshi Club! We are happy to\nannounce our AMA session with Momentum! @alex448844<\/a>\nwelcome to Satoshi Club.<\/p>\n\n\n\n

Alex: <\/strong>Hey everyone. 👋<\/strong><\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>Happy to welcome you here. And could\nyou please introduce yourself and tell us how did you start with Momentum?<\/p>\n\n\n\n

Alex: <\/strong>Great, I’m excited to be here and\nanswer your questions today. My name is Alex, I’m a software developer with a\nbackground in full stack web development and a strong interest in\ncryptocurrency \/ decentralized technology for the past 2 years. I got started with\nMomentum back in early July while watching and analyzing deflationary tokens.\nThe idea of a dynamic deflationary token peaked my interest and over the\nfollowing weeks I spend hours each day crafting ideas and ultimately building\nthe core concepts for Momentum. All that has lead us to where we are now, an\nactive community interested in a fully realized project.<\/p>\n\n\n\n

D. | Satoshi Club: <\/strong>Great! tell a bit about your project,\nwhat is it purpose?<\/p>\n\n\n\n

Alex:<\/strong> So originally the project aim was to\nbuild on deflationary index funds. The idea being to use a deflationary token’s\nDEX liquidity token inside a Balancer pool to force constant trading pressure\nand constant burn. I was motivated to create a deflationary token that would\nproduce a more effective overall burn rate. Two index funds have been set up\nand since then we have partnered with DeFiat to utilize their PartnerStake\ntechnology. Part of our ongoing plan is to explore yield farming options and\nworking with DeFiat has been a huge step in the right direction. We also have\nan engaged community who are regularly contributing ideas toward best next\nsteps for the project.<\/p>\n\n\n\n

Q1 from Telegram user\n@dashinberlin<\/strong><\/p>\n\n\n\n

I have tried to find information\nabout your team everywhere but couldn’t. Maybe I didn’t search properly? Please\nshare with me information about the team. It is important to gain the trust.<\/em><\/p>\n\n\n\n

Alex:<\/strong> The team originally consisted of a software developer\n(myself) and a creative manager. Since launch there are now many more\nindividuals assisting in community support and design\/development contracts. We\nare remaining pseudonymous for the time being. The ethos of the project and\nfurther development is technical trustlessness and decentralization.<\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>So, you plan to stay anonymous?<\/p>\n\n\n\n

Alex:<\/strong> For the time being yes.<\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>And your community has to trust your\nsmart contracts first.<\/p>\n\n\n\n

Alex:<\/strong> Of course, and getting a successful\nsecurity audit was a big step toward building on that trust.<\/p>\n\n\n\n

Q2 from Telegram user\n@balabas4bounty<\/strong><\/p>\n\n\n\n

Long momentum and\nshort momentum are 2 main features of your app. Please explain exactly how do\nthey apply and what do they mean.<\/em><\/p>\n\n\n\n

Alex: <\/strong>The long momentum and short momentum\nessentially act as running averages of recent transfer sizes. They are used to calculate\nthe transfer fee based on the size of a transfer. If an incoming transfer moves\nthe long and short momentum further apart, a higher ‘destabilization fee’ will\nbe calculated and applied to the transfer. If the transfer brings the two\nmomentum values closer together, the minimum transfer fee will be applied as\nthe transfer is considered to have stabilized the momentum.<\/p>\n\n\n\n

D. | Satoshi Club: <\/strong>So momentum is some new technology\nfor DeFi? some tool? I\u00b4m not quite sure that I\u2019m understand how it works…do\nyou have a simple explanation for dummies? 😁<\/p>\n\n\n\n

Alex:<\/strong> I think the\nmomentum values and mechanism can be a bit tricky to understand. They will\nfluctuate with the history of token transfers to provide a rough understanding\nof average tokens transferred across a recent period of time. The intention\nhere was to have a non-oracle based, contract held understanding of token value\nperceived through how many are being bought, sold, transferred.<\/p>\n\n\n\n

But ultimately they are best understood as averages of\nrecent token transfer activity.<\/p>\n\n\n\n

D. | Satoshi Club: <\/strong>Well it’s an interesting concept, not\neasy to understand (for me) but interesting. 😊<\/p>\n\n\n\n

Alex:<\/strong> One of the\npositive outcomes of this has to do with how weights are used to update the\nmomentum values. The weights will tend to move the short momentum below the\nlong momentum. This has the effect of making smaller transfer sizes trigger a\nhigher transfer fee and larger transfers generally pay the minimum transfer\nfee, ultimately producing a balance of absolute tokens burned across the range\nof transfer sizes.<\/p>\n\n\n\n

Q3 from Telegram user\n@anacruzz<\/strong><\/p>\n\n\n\n

As <\/em>I noticed, the transfer fee is around 0.7% or so. Isn’t it quite big? For\n1000$ I have to pay 7$ to make the transfer.<\/em><\/p>\n\n\n\n

Alex:<\/strong> Yes that is the case. Momentum\ndeflates with every transfer and the minimum fee is ~0.75%.<\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>Isn’t it more profitable to transfer\nsmaller amounts?<\/p>\n\n\n\n

Alex:<\/strong> Not exactly, smaller amounts will\ntend to pay a higher fee. I think right now, based on the momentum values,\n$1000 would trigger the minimum fee and $100000 could be a little bit higher as\nthat is a very large outlier compared to average transfer sizes.<\/p>\n\n\n\n

Q4 from Telegram user\n@anditgoestome<\/strong><\/p>\n\n\n\n

The audit from quill have found that\nthere are a number of issues to be tackled in the medium level severity and low\nlevel severity, code is readable but can be improved according to the\nSolidity’s style guide which is recommended to be fixed before implementing a\nlive version. Have you implemented the changes which were advised to be made?\nalso, which were the vulnerabilities they have found?<\/em><\/p>\n\n\n\n

Alex:<\/strong> The Momentum smart contract was\ndeployed as a non-upgradable contract. The hopeful outcome and purpose of the\naudit from QuillHash was to show that no critical errors exist. Fortunately the\naudit report determined that this was the case. There are no critical errors in\nthe contract. Some medium and low level issues were found in their report.\nThese issues mostly have to do with code style, software development standard\npractice and deployment optimization. An audit company usually expects their\nclient to be able to respond to all issues presented, however since Momentum\nwas already deployed and non-upgradable, I am unable to address these minor\nissues. The most important takeaway from the audit process was that no critical\nissues were found.<\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>Also, in final disclaimer they gave\nyou advise to run bug bounty program, do you plan any?<\/p>\n\n\n\n

Alex:<\/strong> We don’t currently have a bug bounty\nprogram but open to that for sure. With the exception of the momentum values\nand all the math in there, the token contract simply performs basic erc20\noperations. (edited for clarity).<\/p>\n\n\n\n

Q5 from Telegram user @bitalik_vuterin<\/strong><\/p>\n\n\n\n

91% of initial total supply provided\nas liquidity and locked until December 21, 2021. I am curious what happens\nafter that? You will get out all the liquidity?<\/em><\/p>\n\n\n\n

Alex:<\/strong> To inspire confidence in the team\nand project, we locked the initial liquidity for 16 months during the early\ndays of the project launch. This time frame could have been arbitrarily smaller\nor larger but this is what we landed on. My main concern presently and going\nforward is the health of the project so when December 21, 2021 rolls around, it\nis highly likely that those liquidity tokens will be sent to another time lock\ncontract unless there is some consensus around using these liquidity tokens in\na more beneficial way.<\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>Did you had or plan to have any kind\nof token sale?<\/p>\n\n\n\n

Alex:<\/strong> There was no plan for a token\npresale. We chose to go with a Uniswap ICO and lock that liquidity.<\/p>\n\n\n\n

Q6 from Telegram user @mr_putin_v<\/strong><\/p>\n\n\n\n

I’ve read your roadmap carefully but\nit ands on December 2020… What happens after that? What are the next steps\nfor 2021?<\/em><\/p>\n\n\n\n

Alex:<\/strong> So currently our roadmap has scoped\nout the rest of this year. The next steps involve more active research and\ndevelopment, which I’m very eager and excited to get in to. We haven’t exactly\nmapped out what 2021 looks like but I will for sure be continuing to work full\ntime studying and building. Roadmap updates can be expected in the coming\nmonths.<\/p>\n\n\n\n

Mary | Satoshi Club: <\/strong>Btw, will XMM have any governance\nfunctions?<\/p>\n\n\n\n

Alex:<\/strong> We do actually have governance setup\nthrough Snapshot, so we’re ready to pass any proposals to the community. This\nwas actually another contribution from an engineer in the community.<\/p>\n\n\n\n

\n\n\n\n

PART 2, TELEGRAM COMMUNITY LIVE\nQUESTIONS<\/strong><\/p>\n\n\n\n

The\nchat was open for 80 seconds; a lot of questions were posted by Satoshi Club\ncommunity. Our guest chose some of them. <\/p>\n\n\n\n

Q1 from Telegram User @Nickkiii<\/strong><\/p>\n\n\n\n

Do you have any tutorials on how to\nuse the XMM\/ETH liquidity token XMMx in your Balancer Pools?<\/em><\/p>\n\n\n\n

Q2 from Telegram User @rockmorti<\/strong><\/p>\n\n\n\n

The golden ratio is part of my best\nmemories studying basic math. Why did you choose the number \u03c6 as the central\nrule of tokenomics?<\/em><\/p>\n\n\n\n

Alex: <\/strong>Coming up with the ratio between the\nweights took some trial and consideration. Originally I was focusing on more\nflat values like 10\/20\/40 but after spending time thinking of the ‘best’ ratio\nit hit me to use \u03c6 and upon simulating the momentum updates, it felt like the\nperfect choice.<\/p>\n\n\n\n

Q3 from Telegram User @AugusS7<\/strong><\/p>\n\n\n\n

On its website it says that the\nMomentum contracts “were audited by QuillHash and no CRITICAL PROBLEMS\nwere found”, but common or NON-Critical problems were you found? And\nreally what problems are “CRITICAL” in contracts?<\/em><\/p>\n\n\n\n

Alex: <\/strong>Critical issues in a contract have to\ndue with major code errors that affect the safety of funds or a contracts\nfunctionality. The absence of these critical errors is the key ‘checkmark’ a\nproject is looking for when getting a security audit. The Momentum smart\ncontract is an erc20 token contract and what was key to pass the audit was\nverifying that all the standard token functions work. The less critical issues\nwere to do with code style and deploy optimization, ends up I could have saved\nsome money on the deploy. 😐<\/strong><\/p>\n\n\n\n

Q4 from Telegram User @Alika061<\/strong><\/p>\n\n\n\n

DeFiat\nStaking on #Momentum and Collection of prize bets have been created for\n#Momentum, is there a minimum or maximum to stake $XMM tokens?<\/p>\n\n\n\n

Alex: <\/strong>There is no minimum or maximum to\nstake in the DeFiat pool. However, the amount you stake will determine how many\nrewards you receive over time. This also depends on how many other tokens are\nstaked in the reward pool by other parties over this period of time.<\/p>\n\n\n\n

Q5 from Telegram User @KevSalom<\/strong><\/p>\n\n\n\n

All this behavior of the price range\nbetween SM and LM, and its influence on the cost of the rates is quite\ninteresting, but where did you get this method? Did you invent it? Did you\nperfect it from a previous idea? Or is it a concept that is already in the\nbooks of mathematics and economics?<\/em><\/p>\n\n\n\n

Alex: <\/strong>I came up with this mechanism between\nearly July and August this year. The final product is the result of iterating\nover multiple other solutions and testing how they would perform based on\ntransfer sizes interacting with the momentum values.<\/p>\n\n\n\n

Similar\nconcepts may exist elsewhere, but I did not model it off any known products or\ntheories.<\/p>\n\n\n\n

Q6 from Telegram User @jpsarmah<\/strong><\/p>\n\n\n\n

Why does the graphical representation\nof the mathematical formula of Destabilization fees = ~ 0.75(1+ln(P\/2)) involve\nlogarithmic function and not any Polynomial function or Exponential function?<\/em><\/p>\n\n\n\n

Alex: <\/strong>A logarithmic function is more\nappropriate for modeling a diminishing effect, in this case a gradually decreasing\nfee applied to destabilizing transfers. Exponential functions would be far too\nharsh for outlier and larger transfer and are more appropriate for different\napplications like a bonding curve.<\/p>\n\n\n\n

Q7 from Telegram User @Angieleal<\/strong><\/p>\n\n\n\n

What\nrelationship does Momentum have with DeFiatCrypto? Is it possible to get\nrewards in $DFT through $XMM? How does this staking system work in Uniswap?<\/p>\n\n\n\n

Alex: <\/strong>We are using DeFiat’s PartnerStake\ntechnology to issue XMM rewards for staking XMM\/ETH Uniswap v2 liquidity\ntokens. Staking in this pool will not yield any DFT, however this pool uses DFT\nboost where staking DFT in their core pool will boost your rewards by up to\n100%.  I would highly recommend DeFiat\nfor any project owners looking for yield farming options.<\/p>\n\n\n\n

Q8 from Telegram User @Winterkom<\/strong><\/p>\n\n\n\n

Will there be a limit to token\nburning or will it be done indefinitely? Do you have any established range? How\ndoes this favor token holders?<\/em><\/p>\n\n\n\n

Alex: <\/strong>XMM will burn with every transfer and\ndeflate indefinitely. This will favor holders by ensuring that their portion of\nthe total supply will gradually increase over time.<\/p>\n\n\n\n

Q9 from Telegram User @AmirJosh<\/strong><\/p>\n\n\n\n

There are 3 separate weights that\nwill be used to compute new Momentum values. Please explain the difference\nbetween these 3 weights and when will each be use for computation.<\/em><\/p>\n\n\n\n

Alex: <\/strong>There are 3 separate weights. One is\nused to update the short momentum and two are used to update the long momentum.\nWhen a transfer size is less than the short momentum, a heavier weight is\napplied to the long momentum and when a transfer size is greater than the short\nmomentum, a lighter weight is applied to the long momentum. This has the effect\nof producing a wider range between the momentum values where the short momentum\nis typically below the long momentum. Ultimately this makes small transfer\nsizes incur a higher transfer fee and larger transfers incur the minimum fee\nmore often. This produces a balance of absolute tokens burned across the\nspectrum of transfer sizes.<\/p>\n\n\n\n

Q10 from Telegram User @tungvodoi206<\/strong><\/p>\n\n\n\n

As you mentioned on the site, 91% of\ninitial total supply provided as liquidity and locked until December 21, 2021.\nWhy did you decide this? So how is the remaining 9% used?<\/em><\/p>\n\n\n\n

Alex: <\/strong>The goal was to provide as many\ntokens as possible for circulation while still maintaining enough funds for\nproject development. The remaining 9-10% is being used for design\/development\ncontracts, marketing and reward giveaways.<\/p>\n\n\n\n

Q11 from Telegram User @warny<\/strong><\/p>\n\n\n\n

Most deflationary token models burn a\nconstant amount, but Momentum takes a different approach, can you explain how\nthis model to us?<\/em><\/p>\n\n\n\n

Alex: <\/strong>Well I think one of the core\nmotivations was to build something more novel and having a different effect\nthan a constant transfer fee token. Many projects are already employing this\nsolution so finding a way to stand out was important.<\/p>\n\n\n\n

I may be\nbiased, but I do believe this approach is better. Take for example two constant\nfee deflationary tokens, with 1% and 3% transfer fees. <\/p>\n\n\n\n

The 1% token\nwill have a small fee incurred across all transfers, not necessarily bad but\npredictably small, especially when the average token transfer sizes are small\nrelative to the total supply. <\/p>\n\n\n\n

Now take the\n3% token. The overall rate of deflation of this token would presumably be\nhigher, but relatively large transfer sizes would be feeling the pain big time\nwith this transfer fee and may want to avoid it completely.<\/p>\n\n\n\n

XMMs dynamic\napproach provides the best of both worlds, allowing relatively large transfers\nto incur a more reasonable fee and small transfers to incur a higher fee closer\nto 3%. This ensures better usability while still providing an attractive rate\nof overall token deflation.<\/p>\n\n\n\n

Q12 from Telegram User @chelyabinsk_crypto<\/strong><\/p>\n\n\n\n

What kind of APYs are there currently\non your Pools? Why percentages are not shown on the website?<\/em><\/p>\n\n\n\n

Alex: <\/strong>On average we’ve seen the APY for our\ncurrent reward pool around 100% – 200%. This data is calculated by DeFiat’s\ncontracts and displayed on their UI for the time being. I think some updates to\ndisplay that on our site will be underway soon.<\/p>\n\n\n\n

Q13 from Telegram User @nyo_cant<\/strong><\/p>\n\n\n\n

Some\nBalancer pools with deflationary tokens were drained due to flaws not so long\nago. How will Momentum protect their assets to avoid such incidents?<\/p>\n\n\n\n

Alex: <\/strong>This exploit occurs when a\ndeflationary token is directly used in a Balancer pool. We will never create a\nBalancer pool that uses XMM in it. Instead the XMM\/ETH Uniswap liquidity token\nwill be used to produce a similar effect. This token is safe to use in Balancer\nas it is a very standard, non-deflating erc20 token.<\/p>\n\n\n\n

Q14 from Telegram User @Gutike95<\/strong><\/p>\n\n\n\n

You say that “We believe that\ntransparency is the key”, right? If so, in case of presenting any problem\nwith contracts or with exchanges or liquidity and its blockage, who can I\ncontact to solve it? I was looking for and on your website there is no\n“Technical Support”, don’t you have it?<\/em><\/p>\n\n\n\n

Alex: <\/strong>Transparency here is referring to the\nsmart contract code being verified and proof of the liquidity being locked. I\nam always available on Telegram\/Discord for technical support if an issue were\nto arise.<\/p>\n\n\n\n

Q15 from Telegram User @CElllIFE<\/strong><\/p>\n\n\n\n

I am confused about Momentum pools. I\nwould like to get an explanation about farming and getting XMMx and XMM tokens.<\/em><\/p>\n\n\n\n

Alex: <\/strong>So there are 5 pools currently. The\nfirst two are uniswap pairs for XMM and XMMx (XMM\/ETH Uniswap liquidity token).\nStaking XMMx in DeFiat’s reward pool with yield XMM as rewards. The other 2\npools are balancer pools that use XMMx along with other common crypto assets.<\/p>\n\n\n\n

\n\n\n\n

PART 3, QUIZ AND INFO<\/strong><\/p>\n\n\n\n

As usual, for the third part, Satoshi\nClub Team asked the chat 4 questions about Momentum. A link to a\nQuiz form were sent into the chat. Participants had 10 minutes to answer. 800$\nwere distributed between the winners. Please check the winners list here: https:\/\/t.me\/Satoshi_club\/365245<\/a> <\/p>\n\n\n\n

For more information and future AMAs, join our Social Media\nchannels: <\/strong><\/p>\n\n\n\n

English Telegram\ngroup: https:\/\/t.me\/Satoshi_club<\/a>\n<\/p>\n\n\n\n

Russian Telegram\ngroup: https:\/\/t.me\/satoshi_club_ru<\/a>\n<\/p>\n\n\n\n

Spanish Telegram\ngroup: https:\/\/t.me\/satoshi_club_spanish<\/a>\n<\/p>\n\n\n\n

Telegram Channel:\nhttps:\/\/t.me\/satoshi_club_channel<\/a>\n<\/p>\n\n\n\n

Website: https:\/\/esatoshi.club\/<\/a><\/p>\n\n\n\n

Twitter:\nhttps:\/\/twitter.com\/esatoshiclub<\/a>  <\/p>\n\n\n\n

Our Partners: <\/strong><\/p>\n\n\n\n

XMM \u2013 Momentum: https:\/\/t.me\/xmmtoken<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

On October 26 Satoshi Club held an AMA session with our friends from Momentum. Our guest was @alex448844. The total reward pool was 1500$ and was divided into three parts. In this AMA Recap we will try to summarize some of the most interesting points for you. PART 1, INTRODUCTION AND COMMUNITY QUESTIONS Mary | […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"_links":{"self":[{"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/posts\/2625"}],"collection":[{"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/comments?post=2625"}],"version-history":[{"count":1,"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/posts\/2625\/revisions"}],"predecessor-version":[{"id":2627,"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/posts\/2625\/revisions\/2627"}],"wp:attachment":[{"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/media?parent=2625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/categories?post=2625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/satoshi-club.esipick.com\/index.php\/wp-json\/wp\/v2\/tags?post=2625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

Alex: <\/strong>We have created a Medium article for\nthis! https:\/\/medium.com\/@xmm.momentum\/balancer-pooling-tutorial-935478d0f424<\/a>\n<\/p>\n\n\n\n