AMA Summary held on Jan. 14, 2022

7 min read

Update

Since we launched cBridge 2.0 out of the gate, you are probably seeing that we have picked up the pace of partnerships. New chains and new tokens are added to cBridge on a daily basis. In fact, we have more than double the number of chains supported and 5 times the number of tokens supported in just last month. We will for sure continue to push on this front. With more partners, comes more usage. 

https://cbridge-analytics.celer.network/

You guys can check out this analytics page, we are probably going to cross the $2.2 billion mark this weekend. TVL on the network has also increased 7 times since the last time we did the AMA.


Liquidity Mining Session 2 is beginning in just a few hours. The biggest change we made in this session is to significantly boost the Optimism and Arbitrum rewards, because we are seeing a lot of feedback that if the liquidity is moved to Optimism and Arbitrum, the farming rewards are low. Therefore, Liquidity Providers are hesitant to provide liquidity on these chains. Or even provide liquidity in other chains with the concern of migrated liquidity. So hopefully this will resolve that concern!

Also related to this topic, we have recently launched on Moonbeam and we are running some collaborative liquidity mining with our friends at Zenlink. DYOR of course, but https://twitter.com/CelerNetwork/status/1481832508442300419

If you haven’t tried the Moonbeam ecosystem yet, that’s quite new, but one of the first operational polkadot parachains, so that might be interesting to take a look at.

For now, the most exciting thing that happened in the last month in our opinion is the Celer Inter-chain Message Framework.


https://twitter.com/CelerNetwork/status/1481674717786304516

It completely transforms how multi-chain dApps are built and used. From a high-level, it can allow a user to sit on one chain and interact with dApps (or other part of the same dApp) on a completely different chain. We believe this is the direction of an inter-chain future where users don’t really need to worry about the underlying blockchain but will just be using dApps. Their funds are automatically transferred to where they need to be and their interactions redirected to the target blockchain.
This will completely change how the “switch network and use some gas fee” UX that we all hate today works. Celer IM is going to enable a lot of exciting things like cross-chain dex, governance and much more. Check out this blog for more details:
https://blog.celer.network/2022/01/12/celer-inter-chain-message-framework-the-paradigm-shift-for-building-and-using-multi-blockchain-dapps/ , try out this demo here https://interchain-swap-demo.celer.network/#/transfer or watch this video recording that is awkwardly made by me https://www.youtube.com/watch?v=Q6Ehe5Bi7-4&feature=emb_title

cBridge Questions

What is your take on Vitalik’s opposition towards cross-chain bridging for security reasons and does this apply to Celer? If it does apply, how do you and the team plan on further securing cBridge to provide a competitive advantage in the marketplace?

The short answer is that I simply don’t agree with his argument. Let’s first talk about Vitalik’s argument here.

What Vitalik is saying is that it is fundamentally bad to mix “security levels” of different blockchains. So basically if you have a bridged fund that lock up AVAX on Avalanche and minted WAVAX on Ethereum. If that AVAX lock-up transaction on Avalanche is reverted due to a 51% attack, then the minted WAVAX = 0. Therefore, we should not cross-mingle assets between different chains.

Now that argument has a fundamental flaw in it. It assumes that the “security level” of a transaction on any blockchain is at a static level. Well, it is not.

It may be fair to argue that a transaction with one block confirmation on ETH is more secure than a transaction with one block confirmation on ETC due to the mining hash rate differences. However, it is simply not true to argue that a transaction with one confirmation on ETH is more secure than a transaction with 1000000000000 confirmation on ETC. I am using exaggerated numbers, but the point here is that the security level of a blockchain’s transaction changes as the confirmation number accumulates.So the argument that cross-mingling the security is bad, is just not valid.

Now, how does this affect the bridging system: same thing. In Celer cBridge and Celer IM, the security level is the same of Cosmos blockchain because the SGN underlying uses the tendermint construct. Therefore, adding a bridge in between is equivalent to mingling the “security model” between blockchains, which is not a problem as long as we have sufficient confidence in the statistical finality of a transaction in a block.

Does general messaging enable cross-chain loans for lending protocols like Aave? I think they are working on their own solution but just curious.

Yeah it does, check out this example:

Today, if a user provides collateral in a lending protocol on one chain, they can only borrow assets on that same chain. In order to borrow assets from a different chain, they have to withdraw their liquidity, manually move it to a different chain, then provide liquidity in the new chain’s collateral pool. 

Celer IM enables a new kind of inter-chain lending where a user is able to seamlessly move their collateral from a liquidity pool on one chain to a pool on a different chain, all in a single transaction. Then, they can directly borrow assets on that new chain. With this functionality, users will have a simple and clean UX that lets them accomplish what they need to without having to leave the lending application!

In some cases, users do not even need to move their funds, only their borrowing powers are fine.

AAVE is hand rolling this themselves, and will likely encounter a lot of issues. However, we will help a lot of lending platforms to be just cross-chain in nature.

Will the NFT bridge be integrated in the cBridge or will it be a different product next to Layer2.Finance and cBridge?

NFT bridge will be part of the Celer IM architecture. The UX is definitely different compared to cBridge asset bridge, so might not be the same UI, but underlying all utilizing Celer IM architecture.

What is the process of adding Solana to Celer? How far are you with the implementation?

Terra and Solana are both scheduled to be released on Q1 and one other major non-EVM chain.

Any chance for adding more rebate programs throughout the year?

This is possible, we will gradually roll this out to a community/governance decision.

Even though top Bank executives, VC’s, etc are highly interested in Top chains like Solana & Terra where Both chains have TVLs locked in Billions why is it they are not the first priority Bridges built?

They are already on the list and quite high priority.

Is it possible to have a more detailed analytics page, like, split upt chains, tokens, etc. ?

Good suggestion, that is on the roadmap just not that high priority yet.

When can we expect celer token to be added to cBridge (BSC, ETH)?

Yeah, we will enable a liquidity pool for CELR between BSC and ETH, it seems to be quite a popular request.

Since we have Cross chain messaging for Nfts, is it possible to build a cross layer NFT purchasing platform, the same way we have cbridge. The nfts would be listed very similar to any other NFT site, but the bids can come from all supported chains. We seem to have the tech for it, why not build the dapp for it to be utilized.

Quoting from the blog:

NFT Marketplaces

Today, if a user wants to participate in an NFT auction, they must have funds on the blockchain where the NFT exists. It excludes people who would normally partake in the auction, but don’t have funds on that particular chain. When a marketplace like OpenSea is deployed on a chain like Ethereum, a good chunk of the audience that is on other chains are excluded due to the complicated bridging operations and high gas costs.

Celer IM can help to expand NFT marketplaces to reach a wider audience. An auction will have the ability to take bids across chains other than where the NFT was initially minted. On top of this, there isn’t a need to make any individual cross-chain fund transfers before the auction results are finalized. This significantly reduces the costs of participating in an NFT auction, decreasing the barriers to entry and enlarging the trader pool for the marketplace as a whole.

exactly the kind of use case and yes, we will be reaching out to developers to build this. We are not going to build specific applications on Celer IM, but will build an open ecosystem that is easy for developers to build.

Why can’t we reload transaction and gas fees ( slippage ) like swap platforms do instead of having failed transactions when the gas price changes?

This is something we can consider to build, but different from swaps, it is not just happening on one chain, so the internal logic and interactions are more complete.

What is the benefit for Harmony ONE partnering with Celr and what is the benefit for Celr partnering with Harmony ONE?

It allows users from other 15 chains to bridge to Harmony easily and give cBridge more users.

Is there any way we can speed up bridging eg. reduce the time? What are the biggest bottlenecks except smart contract execution/validation on source/destination blockchains?

The bottleneck is to wait for confirmation and good economic finality. cBridge cannot simply bridge the token over with just one confirmation of the original transaction on the source chain. So usually, sufficient wait time is needed to ensure the security of the system.

When can we expect to bridge NFT’s?

Will work with partners on this, no promises, but it is not hard to build with Celer IM!

What are plans for keeping liquidity past the LM event periods? Basically how to avoid liquidity locusts from just moving on to the next greener pasture

Again, Celer IM is a very very flexible framework that opens a new dimension for new kinds of inter-chain dApps.

Great question. Now first a fact: the one-month APY for just fees (mind you, just fee, not LM) for some of the larger LPs are running at 11-12% APY now.

Which is actually quite significant already

So with continued growth of the multi-chain ecosystem, we expect the cross-chain transaction fee itself will be sufficient to keep the liquidity around.

Layer2.Finance Questions

Celer was mainly known for its special Layer2.finance technology, with unique features that set it apart from other competing projects. But we have not heard from this serious distinction for months. I remember you said you would work on it more, but I would like to get a more detailed answer, as an investor, to know if the project I have invested in will go its own way or take some priorities or issues off its agenda. When will zk-rollup technology come to Celr? And in general, what is the status of the Layer2.finance?

Thank you for that question. We have not forgotten layer2.finance if that is what you are asking. We are hoping to push out the ZK version testnet soon and also a OP version of layer2.finance 1.0. Right now, our priority is on cBridge to get the inter-chain application adoption, but again, we will shift resources to layer2.finance in due time.

General Questions

What are the plans to reduce the costs associated with staking on SGN?

When the SGN 2.0 initially opens, it will still be on Ethereum, however, in the future, we may use cross-chain staking as well.

Is it planned or would it be possible to allow CELR SGN rewards to be automatically added to the staked amount to take advantage of compounding APY during the upcoming SGN upgrade?

Right now not in the spec, but in future iterations possible.

Is it worth staking on SGN right now or better to wait for the release of the new version, any way we can get a date?

You can stake now for sure, but we expect to complete the upgrade in Q1 to the 2.0 SGN.

When will hosting a SGN validator node be possible for the public?

After the Q1 upgrade.

Celer IM messaging tech seems cutting edge, is there anything else like it in the market?

Not at this moment.

Can you tell us something about the number of developers you currently have in your team? What is the prioritization within the team in regards of adding new partners for cBridge and working/advancing on the core features of the Celr platform

We have developer relationships + a developer team, they are separate teams. For core devs, we have ~30 people. We are actively hiring and expanding our developer and partnership relationship team. If you are interested, please let us know.

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