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HydraDX & Basilisk AMA

Published date: September 22 2021
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We are happy to conclude that the AMA session was a great success and we are looking forward to a next one. For those who have missed this one we have prepared this summary.

Q: Listing of BSX & HDX on centralized exchanges?

A: We are not actively seeking listings because we don't want to donate any bags to exchanges. If they decide to list us it’s fine.

Q: Why Polkadot & Kusama?

A: General smart contract platforms such as Ethereum can’t serve DeFi, they get congested with transactions. App-specific L1 chains on Polkadot & Kusama allow for long-term scalability, cross-chain transfers (future is multi-chain) and shared security.

Q: How does Basilisk help HydraDX?

A: Basilisk AMM pools filter new assets by allowing them bootstrap liquidity before entering the HDX Omnipool. If a “bad” token enters the HDX Omnipool directly, it could pose a security threat allowing malicious actors to withdraw liquidity.

Q: How is the team growing?

A: We started off with 4 people, now we have 18-20 in the core team. Most recently, we hired an A-level Lead Researcher. We are lucky to have sourced great talent from the community in all areas from dev to operations.

Q: How is Basilisk LBP different from existing LBPs?

A: We found ways to improve the design of existing LBPs. To give an example, the Basilisk LBP contract will update the weights for every block. Doing this using an Ethereum contract would be expensive.

Q: Is the planning for the BSX LBP event stil realistic?

A: It is realistic but also constrained within the “expect chaos” philosophy of Kusama. We have to see how the network will handle the second batch of parachains.

Q: What will be the BSX LBP starting price?

A: The point of departure is the opportunity costs of the KSM staked in the crowdloan (~15% of 222,222 KSM). We will start price discovery in the LBP at a price several times higher than that initial valuation which will drop until a floor has been found.

Q: What will the first Basilisk pools be?

A: KSM-BSX and kUSD-BSX. We realized that it would be especially interesting for projects to raise KSM in order to minimize the costs of obtaining their own parachain slot.

Q: What is the relationship between the HDX LBP and the XYK pools to follow?

A: BSX pool will start as an LBP which will gradually evolve into XYK pools after sufficient liquidity has been bootstrapped.

Q: How will you design a balanced liquidity mining scheme?

A: Many projects start with high initial rewards to attract participants, after which rewards drop and tokens are dumped. We want to do it the other way around - start with low rewards which increase the longer you stay.

Q: Besides Karura, any other cool partnerships we can expect?

A: Moonbeam, Snowfork and Zeitgeist are on our shortlist. We try to be frens with everyone (most recently Bifrost). Oh, and we are just about to announce a massive collab with Composable Finance! More hot info soon

Q: How does your team split the time between HydraDX and Basilisk?

A: We have people dedicated to tasks in both projects. To a large extent, the learnings from one are transposable to the other. The experience with the Basilisk crowdloan will help the HydraDX crowdloan.

Q: How will the HydraDX elections play out?

A: We hope that the community will vote for the most dedicated council members who will represent the interests of the tribe. In the long term, the community should project enough leaders who can replace us (the founders).

Q: Which criteria would apply to a token transitioning from a Basilisk pool into the HydraDX Omnipool?

A: Not set in stone. Perhaps some price discovery mechanism or allowing HDX token holders to vote.

Q: Wen Smartboy NFTs?

A: We first need to conduct the BSX LBP and launch the regular pools. Smartboy NFTs will come right after that, by the end of the year. There is also another kind of NFTs coming for LBP participants, but hey - we were not supposed to share that yet.

Q: What’s your marketing budget?

A: That’s what other projects ask us all the time. $0, we are all organic.

Q: How about the BSX airdrop to KSM wallets?

A: Some KSM wallets which we consider as active will receive a BSX airdrop. Not all KSM wallets - this is fake news. We don’t want to share the criteria for the BSX airdrop to not allow people to cheat the system.

Q: How do you take security?

A: Seriously. We want to execute 3+ audits before Omnipool goes live, combined with extensive community testing. Same applies for Basilisk, where we just finished the first audit

Q: How are you planning to select Basilisk collators?

A: We will launch with our own set of collators until the network is live & stable. After that, we will elect a limited set of collators (50?) which will be selected among the most active and reliable community members.

Q: How is the Basilisk roadmap prioritized?

A:

  1. BSX LBP 

  2. Claim tokens

  3. AMM pools

  4. NFTs

  5. More AMM pools

  6. Collabs

Q: How will the HydraDX project pay for itself?

A: All contributors to the protocol will be paid from the Treasury, which will be partly be financed by small trading fees which incur in the Omnipool.

Q: Is there any way to avoid the malicious validators who cheat with their commission?

A: Yes, we are now transitioning to decentralized governance and you can submit a proposal to be voted on by the community. This will allow us to find an agreed approach and take the right action against these cheaters.

Q: Is there a way we can limit the commission validators can ask?

A: It’s more of a UI issue. Polkadot.js doesn’t show the scammers because they found a way around it. If we can build a better staking UI and make everyone use it, I think this will not be an issue.

We are thankful for the overwhelmingly positive response to AMA! Looking forward to a next refreshing and hydrating AMA session soon!

Much love Hydraheads✌️