AMA Summary held on Dec 3, 2021

8 min read

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Update

cBridge has been live for 2 weeks now. Based on the community feedback, we have done a successful upgrade to better support some super cool new features.

The first one is that Celer’s cBridge now supports “canonical bridging” functionality. Why is it useful? So, say if you are a project that originally issued a token on Ethereum, but want to have a new deployment on BSC. But BSC does not really have an official bridge to Ethereum and in the case of Avalanche, it takes a lot of time to get listed on the official bridge. So what do you do here?

Well, you can now simply use cBridge. State Guardian Network will create a “mapping” of the original token on BSC. When a user wants to bridge from Ethereum to BSC, his original token is locked into a vault and the mapping token is minted on BSC. This allows many different projects to expand to multi-chain space quickly.

This feature will be visible to users pretty easily as we onboard partners who use this kind of model in the following weeks.

Now, onto the big thing here, in the upgrade yesterday, we did some message compatibility upgrade and in that upgrade we made cross-chain message passing and cross-chain dApp logic much, much simpler. Around the end of this month, an iteration feature will be available (no need to do a liquidity pool contract upgrade anymore!), that enables some super exciting features.

Some examples are:

Cross-chain native dexes: a user starts with asset A on chain M and swap to asset B on chain N. If liquidity permits, bridge asset B back to chain M. Users just need to make one transaction on M, no gas token needed on N.

Cross-chain NFT state synchronization: in a gaming application, one NFT can be moved from one chain to another chain via our canonical bridging model (lock up original and mint new). The newly minted NFT’s properties might be changed after the bridge. When the reverse bridge happens, state can be synced between the mapped version and the original version.

This will allow the metaverse to be truly multi-chain.

Cross-chain loan: a user can lock up a certain amount of collateral in the form of token A on chain M and borrow token B on chain N (without bridging the token to N) and his collateral can be liquidated on M and sent to N if collateral ratio is reached a critical point.

Cross-chain governance: a user holding governance token on chain M should be able to vote for proposals for the protocol on chain N without even moving the token at all.

Cross-chain ZK-enabled privacy transaction functionality: developers can build a cross-chain version of tornado cash so privacy is preserved when the bridge happens (one cannot see the destination address).

And you know what, the above are just simple examples and the direction of cBridge is to build a multi-chain operation system that enables an entirely new class of application that is simply not possible today.

We are working on the SDK to enable this and will have a much more detailed blog about this soon as well.

Now, on a closer horizon.

Liquidity mining schedule will be announced next week along with the first batch of user incentive rewards. Liquidity mining should be available after that with some time for folks to know about the upcoming mining session.

We have been holding off on adding new chains and tokens this last week due to the upgrade and liquidity pool migration. Now we are done with the upgrade, new chains and tokens will be added in batches and we will announce the support soon!

Now if you still have liquidity in a pool that is not migrated, please do that ASAP to make sure that you don’t miss the liquidity mining campaign!

With cBridge 2.0 live and liquidity mining on track to be launched, we are also starting to work a bit more on layer2.finance. Right now we will hold some suspense there, but we hope that we can share some news on that soon!

cBridge 2.0 has also been growing quite steadily and we truly thank our community’s support for that. Again you guys are awesome!

We hope with deeper liquidity and liquidity mining, we can see some exciting growth going forward!

cBridge

Will Celer delegators make more money from the new CBridge 2.0 implementation? If so, is there an estimate on how much more delegators will get?

For stakers and validators participating in State Guardian Network with CELR, there are two utilities:

Value capture: In return for their active services and roles in supporting cBridge 2.0, PoS stakers and validators in the SGN directly capture the value of cBridge via fees paid to the block producer facilitating user’s bridging requests. This is very much like the fee being paid for any PoS blockchain validators.

Governance: Various system parameters including pricing curve, fee percentage, and more are governed through a decentralized governance process built in the active service SGN. The current fee share is around 15% to 20% and that will be governed by the governance later on as well.

Now, aside from liquidity or token bridge fees that are shared between liquidity providers and SGN CELR stakers. For general message passing, the fee entirely goes to CELR stakers. We believe that we are going into a multi-chain future and the general message passing is possible to become an even larger portion of fee source. You can basically visualize Celer as an orchestration layer connecting all the chains and their apps together so users can have smooth UX.

In phase 2 one of the goals is user acquisition and awareness campaigns. Can you say anything more regarding these campaigns? What can we expect?

Details will be announced soon, but we try to gamify it and make it fun! These campaigns will not be one-off and we plan to design a lot more campaigns to engage with real users (not the ones that are just trying to get airdrops and sell).

Is there a possibility of a timeframe for SOL, LUNA, Cronos and near?

Cronos and NEAR Aurora are right in the line of being supported, probably within a month.

SOL and LUNA support is being developed right now and we are looking at early Q1 next year.

Any major bugs found through the bounty bug program so far?

Nope!

Any information possible on the Self-managed Liquidity Mode?

The self managed model is still being developed.

Is it possible to share a list with chains that are added or planned for the future, like a greyed out below all active chains?

I can say that a lot more chains are going to be added in the coming weeks. Stay tuned for that!

Is it possible to get a % of fee’s/volume shared to SGN stakers from cBridge? Can we already make an estimated calculation?

We will make some kind of table to make it easier to estimate. So here is a napkin paper calculation:

2,000,000,000(daily volume)*0.0008(fee percentage)*365(days in year)*0.2 (CELR staker transaction processing fee portion) / Total Amount of CELR staked (maybe assume 30% of circulating supply), you will get the cBridge fee based APY. This is in addition to the block reward basically.

I think this is a rough estimation and you can plugin numbers here. I’m not sure if I did anything wrong or not here. In a way, it is basically the same as any PoS public blockchain out there where transaction fees are paid to the stakers. So the estimation method is also very much similar.

What is the current protocol for adding additional assets to be bridged?

After this upgrade, we will enable voting for new assets to be added. If there is enough liquidity and interests, we will add them in and ask users to provide liquidity for them.

Will a protocol with its own token ever be able to be added and bridge permissionless, assuming there is liquidity provided?

For sure, we will open that functionality. There are still some DAO’s governance processes involved because the system needs to confirm what is the corresponding token on one chain in another chain (in terms of smart contract addresses).

cBridge was a first-mover supporter of Arbitrum, which led to the initial explosion in bridge activity. This month, ZK-rollups StarkNet and zkSync have deployed their mainnet. When can we expect cBridge to connect to these rollups? Are we likely to be a first mover in enabling them?

We have been in talks with our friends at Starkware and zkSync and have been our target support as well! Once zksync is on mainnet with EVM support, we will add support there

Continuing on rollups, are there any plans to connect cBridge to dYdX or ImmutableX? If so, when can we expect the connections to these?

Not at the moment, we are not prioritizing application specific chains, but trying to prioritize general purpose chains first.

On the date that liquidity mining launches this month, will bridge fee accrual to CELR – earned via staking – be launched at the same time?

Will be separated into stages. Staking will be enabled around the end of this month. Now, we also understand that there might be a concern about how much tokens we are giving away and therefore will pose any liquidity pressure on the market. So we are designing the mining schedule carefully so that the first session will give out a reasonable amount of CELR as reward for the first month so there is a good balance between creating good liquidity depth and not giving out too much celr and after the new staking launches, it will be dependent on governance process. CELR will have increased block mining reward + fee split from the system as well.

Remember that you can still staking CELR today, just not in a very pretty UI.

For cBridge liquidity mining, where are the CELR rewards getting distributed from?

For the first session , ETH (I know, fees..), but we are considering other chains depending on how some of the partnerships go. If we see a lot of volume and community demands for certain chains, we will shift the mining reward there. It is super flexible.

In a previous AMA, you mentioned that Solana bridging can be integrated for users via the same mnemonic seed phrase. However, Solana users commonly use a Phantom wallet with a different address to their Metamask. How would this work with cBridge? Would you consider enabling dual-connect wallet?

Yup

Any plans for DOT support?

Moonriver is coming!

State Guardian Network (SGN)

What will the unstake/re-stake procedure be with the SGN upgrade, how long will the process take?

A governance process will be made to reduce the unbounding time. And the migration should be very smooth after that.

Since Celer’s goal is to facilitate multi-chain interaction (and CELR can be sent to any chain?), it would be cool for CELR to be able to be staked from any chain. Will it ever be possible to stake CELR from any chain? Why or why not?

Yes, it would be possible to do. Need some time to implement.

General

What are the marketing strategies and product visibility moving forward? Can we expect some promoted marketing after cBridge and layer2.finance are fully live?

For sure.

Are there plans to give CELR more utility in the Celer ecosystem? Why are we not given the option for liquidity providers to need to pay fees in Celer or people to pay for their bridging fees in Celer?

We are one step away from implementing this. Right now it is paid in various tokens. If the community demands and proposals are made and approved, a simple feature can be implemented to convert all fee tokens to celr and pay out to stakers and LPs.

This is really up to the governance and every one in our community has a role in this.

Now another aspect I wanted to mention, for general message passing, it is likely that the fees will be paid in CELR in the first place. It’s more like a subscription model where a user or a dApp developer deposits a certain amount of CELR and that CELR can be used to pass messages cross-chain. Like a prepaid card.

Starting projects in a bull run is much more profitable than a bear cycle. How will your project stand the test of time, in a bear run where most projects fail and sometimes fade into oblivion? What strategies does the project use to reduce potential losses?

To be honest, most of the project could have survived the bear cycle. Many of them went out of existence simply because the team fell apart. We do like bear cycles because this is a test of whether a team is just in this space as an opportunist or a true believer and doer that has a love for this technology and wants to do their part to make it happen. Happy to share that all four founders are still building hard and crunching out 120+hour work per week. I think we all witnessed a fair amount of founder departures over the years. But fortunately our belief and determination kept strong and we keep delivering!

Why are there not much collaboration with other projects? Especially conferences like the Solana conference or the Fantom Conference etc. As the more collaboration the more the network effect & growth.

For sure, as we switch focus to cBridge more, we hope to work with more projects towards a multi-chain native future.

It’s clear that the Celer team remains dedicated to building out its products. However, I’m curious to know if the team remains incentive-aligned. All Celer team tokens were fully vested this year; does the team continue to hold its tokens while building towards its vision?

Most of the team tokens are in staking pools today 🙂. Team tokens were fully vested last year actually, but we keep building even through “bearest markets”. We have endured the deepest winters and we firmly believe it is our mission to bring blockchain technology to mass adoption. It’s our dream and passion.

Today’s transaction volume is 3 times the usual transaction volume. Any info on this?

Ah so that is because of the liquidity migration, but indeed, there is steady volume increase day over day.

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