Thank you to the NanoNews Community for participating in Ask Me Anything (AMA) with Jarvis on July 3, 2020. This guest star CEO Jarvis Network, Pascal Tallarida . If you were unable to join the live AMA, no worries, here comes our 24th AMA recap
We are glad to meet here:
Pascal Tallarida, CEO at Jarvis Network
Vsevolod, Community Manager at Jarvis Network
For taking your time out from busy schedule for the AMA!
Q1: Can you introduce yourself to the community? What is your background and how did you join Jarvis Network Project?
P: Hi everyone, I am Pascal 🙂 I am a French senior Forex trader and entrepreneur. I actually am trading for the past 14 years now and for the past 10 years I have been developing companies in the retail trading industry (prop trading firm, trading arcade and trading school).
This activity led me to 2 cool things:
1- it allowed me to become known in France, recognized by my peer, and to gather a community of +34k French speaking traders.
2- it also brought me into crypto: 3 years ago, I started trading and investing in crypto, and fell in love with Blockchain so bad that I decided to quit my previous company (I am still a shareholder there) and focus my energy and my resources on building Jarvis. I “joined” Jarvis since I founded it 🙂
V: I am the community manager at Jarvis Network, originally from Russia moved to Bulgaria. Met Pascal while attending tutorial sessions of his other firm, where he introduced me to crypto and Jarvis itself, Been working at Jarvis ever since
Q2: Can you briefly describe what is Jarvis? and what makes Jarvis different from other competitors?
The idea behind Jarvis is to universalize and uberize financial markets. We want to provide to everyone the access to any financial market (hence universalize) and we want to give the opportunity to anyone to provide such access against a fee (hence uberizing brokerage).
The same way Uber is the largest taxi company but does not have any taxi, Jarvis network wants to be the LARGEST broker in the world without being a broker.
The $JRT token is designed to govern this network, collect its fees, and secure it thought staking.
a bit more concretely Jarvis network is a set of protocols allowing anyone to gain exposure to the price of any assets, against liquidity pools supplied by other users. So it is a bit like Uniswap, but for any financial market, and without AMM or impermanent loss. You can trade Forex, Stocks. Crypto etc.
We try to solve few problems.
- for the people well-born in countries with a banking infrastructure and who can easily access to financial markets, we are enhancing their user experience: with a single wallet they can access any financial market, no need anymore to open multiple accounts, they can access their funds at anytime etc.
- for the people who were less lucky and live in country where there is a high inflation, or not an easy access to traditional financial market, Jarvis provides them this access as soon as they have an internet connection.
- Also, Jarvis solves the counterpart and impermanent loss issues with liquidity pools: liquidity pools gained a lot of traction but LP supports all the risks and may suffer from losses; in Jarvis, LP can remain market neutral and only earn fee without being exposed on the market. This will help Jarvis to scale fast since there is way less risk to supply liquidity in our protocol.
We do this through two protocols:
- Margineum: a trust-minimized off-chain trading protocol, which is a hybrid solution: half centralized, half decentralized, so we can be scalable yet trustless.
- Synthereum: a protocol to issue and convert synthetic assets backed by DAI without the need of over-collateralizing them
Q3: What are Jarvis Network’s Progress from the beginning until now?
- Margineum v0 (without relayers yet) is on the mainnet and already $23.5M have been traded there through an early-stage trading interface (closed beta)
- Synthereum v1 has been launched on the Kovan testnet and the first EUR. CHF. GBP and GOLD have been minted 🙂
- JRT reached 2.8M in liquidity across 3 DEXes (Uniswap, Bancor, and Balancer) which allows JRT to have 0 slippage for order below $30k
- Our private sale was a success; the project finally has the funding it deserves (we even had to decline a lot of VC offers) and we raised $1.3M
- JRT price breaking a psychological resistance level of $0.1 (currently 0.13)
- we have a wallet on the mainnet where almost 40k USD worth of crypto bought with fiat and with 0 FEE
- we have various FARMING program with Aave, Uniswap etc. which attracted a lot of people and a lot of money
- the number of addresses holding JRT has increased by 70% since 2 months
- Update new UI for Jarvis Market on the mainnet
- Uniswap-like UI for Synthereum
- Security audit for Synthereum and launch on the mainnet
- Listing on bigger and more reputable CEX
Q4: What technology stands behind and What are its advantages?
For Margineum, we are building our own technology but we also relies on other technologies like IPFS and there are still a lot of RnD on how we could use ZK technologies instead of our own sidechain, and how to leverage from Kleros to resolve dispute in our system.
For Synthereum we are built on the top of UMA and Compound (for now, but we will be using AAVE soon): UMA is an incredible protocol to issue synthetic assets without any on-chain price-feed (so no need for an oracle as ex) which allows to have real-time price feed for synthetic assets; our assets are backed by cDAI (Dai in Compound) and soon aDAI.
apart from that, we are developing a sidechain (network of Validators) for Margineum: remember that Margineum is an OFF-chain protocol, yet we want it to be trustless, so several nodes (Validators) will record all the activity and publish it on IPFS, and will also verify that all the trading data are correct and not altered.
we are also developing a network of off-chain order book and matching engine for Synthereum, the Relayers; Relayers are node which will match users funds with LP to mint synthetic assets.
This is how you do not need to over-collateralize your assets: users deposits 100% and LP 30%; the Relayers match these 100% with these 30% (remember there is no on-chain price feed in Jarvis so the contracts do not have access to any data)
on the top of these protocols, we are building 3 applications:
- Jarvis market: a trading platform
- Jarvis exchange: a dex aggregator powered by Paraswap.io technologies, a very powerful and very fast Dex aggregator
- Jarvis wallet: a contract wallet powered by Unilogin and Gnosis Safe technologies, using meta-transaction, ENS and multi-signature tech
Q5: What are the major milestones Jarvis achieved so far & what are in future pipeline?
Major milestones were to be able to launch on the mainnet and the testnet BEFORE our successful fundraising, so with very small budget actually.
For our future plans, apart from bigger listing, and the mainnet of Synthereum:
- we now hiring to scale the team (we have only 3 devs for now)
- we have started the work on the TRUSTLESS part of Margineum, to go from a v0 to a v1
- we have to finish Jarvis market, a trading platform to trade on Margineum; so you can deposit DAI and start trading crypto, Forex, or stocks with LEVERAGE
- we have to finish Jarvis exchange, a dex aggreator to convert at the BEST price any ERC20 including synthetic assets; so you can exchange wBTC for jAAPL, or USDT for jEUR etc.
- we have to launch our DAO and our staking mechnism that will give a lot of utility and value to the JRT
Q6: what is your opinion about DeFi? and do you think this DeFi user will always go up every time?
so, my opinion on DeFi first:
for me, and for now, DeFi is NOT for everyone. On Ethereum it is super expensive and it does not bring a lot of ROI if you do not have few thousands of dollars.
- it is still SUPER COMPLICATED and super RISKY.
But, we will solve the scalability issues; we will solve the risk and complexity issue. When these issues will be resolved, I think DeFi will NOT EAT CEFI, it will not kill banks of CEFI, no, it will just be a super VALUABLE parallel financial system, which will fill A LOT of gaps and eventually take some market shares
but then we will need to face a new enemy: regulation. So to conclude, I think DeFi will not kill bank but wlil grow A LOT, and your investment thesis SHOULD include DeFi.
For the second part of the question: I think so. The market is HUGE, but really HUGE and we are just starting.
we just need to wait a bit and do not go to fast before to try to reach a mass adoption
DeFi is not ready yet, and we will disappoint people now if they will come. High fees, highly unsecure, it is better to wait 1-2 years, to build strong basis, and then to go to conquer the world 🙂
Q1: Which target users does Jarvis Network aim to serve? How does your platform ensure that users experience simple, seamless and easy access to information in a transparent way?
Apart from crypto people, we actually are targeting non-crypto people. As I said before I have a 34k french speaking trading community and we want to provide them new solution, better than their actual broker. This is why we are doing a hybrid system, to remain scalable (they want to scalp, they want scalable platform) yet trustless.
To ease their journey, we are developing the Jarvis wallet, a very easy to use wallet. The idea is that even if we do a great trading platform or exchange you stlil need crypto to trade of exchange. Jarvis wallet is a wallet for ONBOARDING users into Jarvis: free fiat-onramp + meta-transaction + ENS + walletConnect
so to start trading or exchanging it will be like that: choose a ENS (deden.jarvis.ethf you have no crypto, connect your bank through API (it is poossible in Europe) or just use your debit card, and few seconds after you have jEUR, or jGBP, or jUSD etc.
Then you scan a QR code on Jarvis market or Jarvis exchange with your wallet, and BOOM you are connected 🙂 and you can star trading or exchanging
Q2: At present, I believe there are many Swap exchanges on the market that can solve similar problems, such as Chengelly, Changenow, etc., but can you explain the advantages of JARVIS SWAP in terms of technology and basics?
True. There are A LOT of swap exchange. But Jarvis Exchange is a dex AGGREGATOR. meaning that it connects to the other DEX. So actually the more DEX exists, the better for Jarvis.
We are not competing with other Dex. but rather connecting to their liquidity using Paraswap.io technologies. Paraswap tech allows also to connect to smartcontract of protocols like Synthereum. So to have a crazy liquidity on our synthetic assets it will work as follow:
If you have USDT, Jarvis exchange will do: USDT > DAI then DAI > mint jEUR or mint jAAPL and because Paraswap integrates with Curve.fi, Ren Protocol, Jelly Swap etc. you can even exchange BTC for jAAPL and do cross-chain swap
Q3: We all talk about Positive points/Pros/Good Points & Features of any Project, no one Project tell about there Cons. So can you tell us Honestly the Cons & Lacks of Jarvis tokens?
i like this question because yes, we only speak about the positive, but let’s speak about the negative So, first, Margineum is an OFF CHAIN protocol, meaning that the trust is brought by a network of Validators.
But what will happen if Validators create a Cartel to steal funds or misbehave? we have thought about this scenario and have few ideas how to prevent this risk, but it will reduce the user experience if this is happening too mch.
Imagine you are trading, and suddenly Validators are not reaching a consensus or try to regroup as a cartel: the DAO will have to pause all the contract functoin and no one will be able to trade or withdraw until the DAO resolve the issues
Synthereum relies on 3rd party protocol, like Compound or UMA. So if UMA or Compounds get hacked, so is Synthereum.
- Synthereum uses cDAI as collateral, so if one day there is a bank run on Compound (right now because of their $COMP farming there is only 21M dai left to be withdrawn, all the other Dai are borrowed) it is possible that you cannot redeem your collateral (you have jEUR you want to redeem your DAI but you cannot because the DAI is locked in Compound).
- Synthereum is an ONCHAIN protocol, so now, with the cost of the GAS, it is not easy to mint just 1 EUR (it will cost you a lot of money to do it)
But, these cons are fixable. It will take time but it is possible.
The worst CONS of Jarvis is that we are allowing people to trade the price of regulated assets (stocks, indices etc.) and if one day the regulation decides to attack these markets, either Jarvis will need to comply to it (KYC and AML which will kill the user experience) or will have to stop.
Q4: What makes the Margin Protocol and the Synthetic Protocol different? Can you explain the advantages and disadvantages of each?
so, i will try to do not get too technical
Our first protocol is the Margin protocol (Margineum), a trust-minimized off-chain trading protocol: you have the scalability of a Bitmex or of an Interactive Broker, but the trustlessness of a Uniswap. It is not decentralized, not permissionless and therefore it cannot be used as a building block in DeFi.
It allows users to open leveraged positions on many markets against liquidity pools, supplied by liquidity providers, who can, if they want, fully hedge their exposure on their broker or exchange (through API).
Liquidity providers have to run a DESK NODE (and stake JRT to do so) and have to pledge their candidature to the DAO (which will vote yes or no to accept this LP); the DESK NODE has to be linked to a REAL broker form where the price feed is taken, and which will allows the LP to hedge their risk.
Our second protocol is the Synthetic protocol (Synthereum) built on top of UMA. It is an on-chain trading protocol: you can use it in many other DeFi protocols, it can become an important DeFi building block but since everything happens on-chain it is limited in scalability.
It allows users to mint synthetic assets tracking the real-time price of any asset (fiat, crypto, stocks) without over-collateralization. For example, to mint DAI you need to overcollateralize at least 150%; to mint sUSD (Synthetix), you need to deposit 800% of collateral.
But our design is more elegant: users deposit funds in a pool, and their funds are matched with the pool’s funds to form a collateral and mint jEUR as an example, or jAAPL or jBTC. Users only need to deposit 100%, and the liquidity pool deposits the rest and takes care of the over-collateralization. So you just deposit 110 Dai, and you receive 100 jEUR.
Also, we do not use oracle so user can mint and redeem at the real-time price of the market, leveraging from the UMA’s priceless framework design.
Both protocols are complementary: jEUR, jCHF, jZAR, or even jAPPL or jGOLD in the future, could be used in the Margin protocol as a based-currency, which means that you could trade with leverage on BTCUSD (up to 20x for example) with an account in your local currency.
Another interoperable combination: the LPs in the Synthetic protocols, since they are the counterparty, can automatically hedge their exposure using the Margin protocol.
It means you can become LP, stay market neutral, and earn commissions without taking additional risks
Both protocols require Validators (for the Margin protocol) and Relayers (for the Synthetic protocol). We explained a bit earlier how do they work. Both Validators and Relayers have to stake JRT to align their incentives. They earn fees in Dai to provide such work.
Therefore the JRT is used to secure these protocols. But it is also used to govern them and to collect their fees: the Jarvis DAO welcomes all the token holders to govern the protocol, vote on updates, and collect all the fees generated by them.
Eventually the JRT is designed to capture the value of the protocols: Validators, Liquiity Providers and Relayers have to buy it to stake it, and the more the value locked in the network grows, the more JRT needs to be staked.
Validators and Relayers are paid with the fees collected by the protocols. So they will earn part of the trading fees, and so will the DAO member do: they can collect the fees generated by the trading activity
and Eventually, there will be some token burn mechanism: dApp built on the top of our technology can add custom fees. So if you are in a country and want to launch your own trading platform and broker you can using our tech, and you can add your own markup.but x% of this markup will be used to buy back JRT from DEX and burn them
Q5: DeFi and Dapps are 2 pillars primed to rule 2020 in crypto space so what’s your approach to DeFi and Dapps. What roles do they play in the innovativeness of DeFi and do you invite developers to build on JRT
our approach is very CONVERVATIVE because we don’t want to take risks with people’s money.
So as ex we wlil not open our protocol to anyone at the beginning: we will be the sole LP (with some partners) for the first 6 to 9 months. No one wlil be able to provide liquidity on Synthereum or Margineum but us and partners.
Like that we are the only one risking our money here, and we will run several audit, bug bounty, and try to hack ourselves. user will stlil be able to trade, mint assets etc. but again: only us will be a LP
then we will allow few addresses to become LP if they correctly answer some tests and questionnaire about the risks and about Jarvis, so we will only be agree to risk educated people’s money.
and only after that, we will be permissionless and open and everyone will be able to become LP so it is a very incremental and security-oriented approach, regarding the last question: how to bring people to build Dapp:
we will allow them to make a lot of money 🙂 as simple as that.
Partner fee: when a trade is open on Margineum, or when an assets is minted or converted in Synthereum, 3 kind of fees are paid by the user:
- protocol fee: goes to the DAO
- LP fee: goes to the LPs
- partner fee: goes to the dApp owner
so dApp owner can make money off Jarvis
There will be leaderboard, where we will track the value and commsisisons generated by all the dApps. And every month the DAO will distribute JRT to the best dApps, so the more a devs have a succssfull dApp, the more money they make, and the more JRT they receive
Q1: What is your strategy for building a strong community? Do you agree that the power of the community will lead your project to develop globally? What services do you provide to the community?
In my other company I have built a 34K trading community only with one tool: youtube video in which i give high value content. For free. No “i give you half of my knowledge and you have to subscribe to a newsletter or pay to have the other half”
When you give value to people, they start having a biases of authority, follow you, use your product etc.
So the only way to reach user is this + working with local trading communities who are donig the same.
we support all the Stablecoins from Aave: USDT USDC DAI TUSD BUSD and sUSD.
Simply go to https://sponsoring.jarvis.network/ and enjoy $JRT farming
Q2: Why Jarvis Doesn’t need use ORACLES like Chainlink or similar?
V: Synthereum uses UMA priceless solution, meaning if both parties agree on the price so you dont need on-chain data which greatly reduces costs and eradicates front-running. If one party is fraudulent you can call in dispute and ask for the on-chain price
Q3: Why does JRT have two types of tokeneconomics? What are the benefits of holding $JRT for a long time?
There is a tokeneconomic at the protocol layer and one at the dApp layer.
Protocol layer: governance + security + buy back and burn partner fees. These are coded within the protocol. It is what gives VALUE to JRT and this is how JRT can CAPTURE the value created by the protocol.
So the first tokeneconomic captures the value that Jarvis network creates. The second one is the dApp layer: this is a “stupid” tokeneconomic model based on a loyalty system. It does not create or capture value.
As ex it is: if you hold 10 000 JRT then you pay 0 commission on your fiat <> crypto conversion. Or Your trading fees are divided by 2.
The idea is that any dApp can do WHATEVER THEY WANT so it is not linked to the protocol. If a Dapp decides to add a feature like: if you hold 20 000 JRT you receive my newsletter for free, they can.
So it adds utility to the token, but it does not capture the value of Jarvis network
Q4: congrats on your listing on Bancor, can you please explain more about your $JRT farming program on Bancor, who can participate and what’s the benefit?
you simply has to deposit JRT and BNT on banco using https://paraswap.io/#/earn or 1inch.exchange/earn
Then you just wait everyday to receive your daily $JRT rewards 🙂 this is how you farm JRT on Bancor.
These farming program are also ran with Uniswap and Balancer and has a lot of value: it helped JRT to gain $3M of liquidity, and now the JRT is super liquid
Q5: In blockchain industry, one of the most difficult things is generating revenue, regardless of the technology that the project develops, how does Jarvis Network makes revenue from its tech?
V: So few things:
- as a Company, we hold JRT, so we will derive value from it by participating in the DAO, and earning fees.
- as a Company, we also are providing liquidity for the system: in the Margin protocol the two first LP are maintained by us (or to be accurate other companies that we control); we will also be interested in being Validators and Relayers, so we will generate revenue from that.
- as a Company, we also will have our own dApp, one being a wallet as an example; the wallet will generate revenue on its own; as example, last month, we generated our first $1k thanks to our integration with Aave.
- as a Company, we can also sell consulting services to companies who would want to set up a market-making infrastructure to safely provide liquidity on the protocol.
Companies, Dapps etc. that are using our protocols need to have the agreement of the DAO, and in exchange, they would need to buy back JRT from the open market with part of the revenues they are doing using us.
So our first revenue (around 1.1k to be accurate) will also be used to buy back some JRT and eventually burn them
This has nothing to do with the token economics of the protocol; it is more a business decision that the DAO will have to take, in order to create more value for token holders.
Q6: Liquidity providers are responsible for facilitating access to the interbank market for a lot of brokers, financial institutions and traders, usually these are usually large banks. What bank or financial institution is your liquidity provider? How do these make Jarvis’s platform more attractive? How high are the spreads?
so as you said, LP faciliate the link between the legacy market and the blockchain. They can work with ANY broker or banks, we do not have a control over it. So it is hard to answer you.
However, I can asnwer you for the actual LP.
The actual LP that we are now onboarding is opening brokerage account with Interactive Broker, Exante, GCEX and maybe IG, and will mix all these prices into Jarvis.
Q7: I saw that max Circulation of JRT is 66M. So, will you conduct token burning in the future to reduce the supply of JRT and increase its investment attractiveness?
V: Total supply will increase next year to around 500M, short answer: yes we will have burning mechanisms (a company will buy back the tokens with some of the profits and burn them). We already burned unsold ICO tokens.
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