Lattice Exchange AMA w Benjamin Jorgensen and Mateo Gold at t.me/amaroom
Eric: Hi @benjorgensen @mateogold thanks for taking the time! Can you please introduce yourselves first to the crowd?
Benjamin: Yes. Hello! I am Ben Jorgensen and one of the founders of Constellation Network and Lattice Exchange.
Mateo: I’m Mathias COO and Co-Founder of Constellation and Lattice. I’ve been in crypto since the early days of BTC. And have a career as an entrepreneur, investor, and fortune 500 behind me.
Benjamin: We are a US-based company (Silicon Valley) and Lattice Exchange is the first application built on Constellation’s scalable, secure, and decentralized network.
Eric: Can you tell us more about your careers and what led you to crypto?
Benjamin: What a fun question! Give me a second.
About 5 years ago I sold an advertising technology company and decided to do a search fund — my thesis was a) to understand myself as a leader b) could I invest in my network c) what was the next best technology and project to jump into.
John: Hi everyone. This is the tech lead of the project John.
Benjamin: Then I learned in 2017 that there was a potential to evolve blockchain technology to something that was used by every developer… and that current protocols were limiting in scale (technology couldn’t work in real-world applications) and Ethereum, was built with fees hardcoded into their network which prevented economics from scaling.
Crypto was the renegade industry that I had always been looking for. A new culture and a new revolution with more upside than SaaS.
Crypto challenged every archetype for business and socioeconomics that I could imagine. And where the dreamers build and exchange…. is where you want to be
Mateo: Sure. I always like to look beyond the horizon and look to connect things that many people overlook. I also like to take unconventional paths. With that mindset, I worked for the European Central Bank in their IT department as well as auditing multi-billion USD real estate and money market funds with PwC at major European banks. Built my own business to 1m ARR in the first year and then move to the US where I started investing and co-founded Constellation.
I discovered crypto when I was looking for better ways to send money around the globe and found a very early BTC forum. ETH cam into my vision while brainstorming on digital identities and a world without borders and shortly after I found devcon 0 on youtube and was sold immediately.
The rest is history.
Eric: Great backgrounds there. How about you @BkHDF. what's your background?
@benjorgensen tell us about this new project with a great name — Lattice. what is this about?
Benjamin: Lattice — is all about geometry and math — a famous Italian mathematician. Constellation is all about math. So one of the interesting things we wanted to build out and build a new company, was to tackle the decentralized finance space and apply data integrity and our vision around data to the crypto space
A lot of people think that Constellation is just about enterprise adoption and use cases. In fact, we are an ecosystem that has low transaction fees and is technologically scalable and working with the largest data producer (US AirForce).
Lattice Exchange is a company built on Constellation.. not because we built Constellation, but because it is the only live network that could process a ton of data and tackle the issues of decentralized finance: High transaction fees on ETH, impermanent loss, isolated liquidity pools, and no complex algos for trading.
Lattice is a revolution is not only decentralized finance but in the blockchain space.
While Constellation is all about real-world adoption. The aim of Lattice is to bridge crypto asset trading with traditional securities. Our aim is to support multiple AMM’s and aggregate liquidity pools. Our future is to embrace complex trading algos that merge traditional securities with crypto trading.
The only way to do that is on a network that is highly scalable with near-zero transaction fees.
John: Hi, I am a maths background and have started my career after my graduation in 2017 directly in the blockchain industry, after I was so attracted by Nakamoto’s original whitepaper. Then I have been blockchain engineers and blockchain tech leads in several projects, including some early DeFi (Back to that time there even is not the term DeFi lol). So basically these years I just kept learning new blockchain tech things and keep programming. Now it’s time to build Lattice.
Eric: Nice to know more about you John.
@benjorgensen How does this work exactly > Support multiple AMM’s and aggregate liquidity pools?
Mateo: So the buildout of Lattice will happen in multiple stages. In the first stage, we will pool liquidity similar to a 1inch exchange while testing more complex AMM on the Ethereum EVM. Going over to cross-chain liquidity with the DAG/ERC20 ecosystem in stage 2.
In the final stage, we will run the entire operation of instant trade settlement and near-zero fees on the DAG Hypergraph. The Hypergraph allows for more complex algorithms than the EVM and that’s where the full power of multiple pluggable AMM algos come into play.
Eric: On the final stage, from a user perspective. they just see a faster erc20 based lp-based exchange, right?
Benjamin: Eventually yes. Absolutely. Trade settlements will be faster and more accurate and cheaper
John: Technically, we will build a set of proxy smart contracts to connect to those AMMs that we want to support. And the on-chain proxies will query the best rates for the user and use that information as an input to find the best route to execute a transaction among these AMMs.
Benjamin: In deploying technology, we first work with ethereum as that has the largest ecosystem. Our focus is to capture market sentiment and trading interests. Then port over to DAG.
Eric: So how big is the team right now?
Benjamin: Currently we have about 6 people working on this and we are growing.
We started this about 1 month ago and announced it on Tuesday with a press release.
Eric: How is the dev bandwidth handled between Constellation and Lattice? There are concerns that Constellation development will slow down.
Benjamin: We have completely different teams for Constellation and Lattice.
Lattice is building out its own team with direction and oversight from some of our lead engineers so that we can build out the multiple phases.
Mateo: The core infrastructure of Constellation is right on track and actually a little faster than anticipated regarding state channel support, open SDK, and several other features of the core infrastructure.
Eric: Nice. So what is the role of the token?
Mateo: The LTX token is a traditional governance token as is the case for many defi tokens. It allows holders to determine the important aspects of platform governance.
Additionally, the token is issued for liquidity providers providing pool liquidity as we have seen it in many other defi platforms.
Benjamin: The fun thing about governance is that Constellation’s community understands governance and organizational pursuits.
Mateo: Now, imagine a cross-chain DAG/ERC20 that brings interesting additional functionality to both tokens
Benjamin: We have a lot of experience around this.
Eric: Are there no fees from the LP exchange to be earned via the token?
Benjamin: Could you clarify?
Benjamin: I don’t think governance is totally understood until you build a base layer protocol and a decentralized network from scratch.
This is where we will accelerate.
Eric: Some of the tokens of dex allows some % of the earnings of their product for holders.
Others also let the token be used as a cheaper gas.
But I guess these can be proposals LTX holders can vote for.
Mateo: We are considering the different aspects but haven't committed to the final scope of functionality at this point.
Benjamin: Great question. In phase three of our buildout, we will port the platform over to Constellation and it will basically be free transactions.
Eric: But are there enough Constellation based tokens for people to trade on by then? Most volume will be for erc20 tokens.
Benjamin: This prevents liquidity from being permanently being locked out as in the case of a potential black swan or market crash.
Benjamin: LTX will stay an ERC 20 token.
People on DAG will be able to stake DAG for liquidity.
Mateo: We anticipate a lot of DAG to be locked up in liquidity pools earning LTX. But there will always be enough liquidity for trading.
Eric: How far along is the product? any important release dates?
Benjamin: We have been working on it for about a month, but have had the idea for a bit now.
In October we will be launching the token and shortly thereafter we will be launching Phase 1 in aggregating liquidity pools and releasing multiple AMMs.
Mateo: So we started only a couple of weeks ago. We are wrapping up the private sale as we speak (we have received a ton of interest) and are looking for the public sale at the beginning of October.
The product v1 will be released in Q4 2020 with stage 3 coming in Q1/Q2 next year.
Eric: That's a very aggressive timeline. Confident that the team can met that with no issues.
Mateo: hehe, so if you know dev work and constellation is that we are quite careful with timelines.
Benjamin: Not at all! We have spent 2.5 years building Constellation and know how to navigate technology and teams.
Eric: We will open the floor for community questions. Please be on standby for 3–4 minutes, then you guys pick and reply after.
Q: Can anyone list their tokens too, or, you have to manually screen and add them?
A: We will take existing pairs and consider a community-based screening process to build more trust in the ecosystem.
Q: There are lots of Exchanges coming these days & The Main problem with many projects is Adoption, Why do you think that LatticeExchange will Achieve Mass_Adoption?
A: Great question. There is a potential of another black swan event or market crash. At that moment, people will be trying to get liquid and cash out. Because ethereum is not scalable, network bandwidth will be tight, and high gas fees will prevent small retail investors from pulling liquidity.
Additionally, Constellation is basically free to transact, so people will build on Constellation and use Lattice because it is cheaper, faster, more secure, and more accurate.
We have an extremely loyal and active community that is currently scaling for DAG. Lattice is the flagship product on the open Hypergraph ecosystem. More and more people learn and understand the power and flexibility of the Hypergrpah with its forward-looking trajectory. That means we are only at the very beginning of an overall ecosystem spanning growth curve for lattice and dag.
Q: Can you explain in more detail the role of HGTP and DAG in the operation of Lattice?
A: HGTP will be the tx and settlement layer for the platform.
Q: I am already using other Trading platforms. Why should I Move to LatticeExchange Platform? What Main benefits will I get on the LatticeExchange platform?
A: We will be more accurate, cheaper, and faster network. Eventually, we will be able to support complex trading algos (they are rather simple now) — this will invite more complex trading solutions. We will also be able to oracalize data on constellation’s network. Lattice will then take oracalzed data to create better trading solutions with more data.
Q: How actually you security system works? How Secure is the #lattice ecosystem?
A: The security lies in the base layer protocol of Constellation — because Latice will use Constellation’s Hypergraph. Constellation uses concurrent consensus mechanisms and mathematical proofs to validate data (transactions). This allows us to topological organize the network leveraging our reputation model. All of these layers create security beyond cryptography.
Q: What are the features of Lattice that make it unique from other similar projects? In what ways does Lattice innovate?
A: Great question:
- Smart Trade Routing (Aggregating the liquidity across platforms to offer the best price to users)
- Advanced Matching Algorithm (pluggable institutional-grade order matching algos)
- Lattice Governance Token allows for decentralized governance of the project and participation to guide the future of the company.
Q: VitalikButerin and other developers continually alert to the risks of DeFis, liquidity pools, and other innovations, so I would like to know how security matters to you in your protocol?
A: many of the risks in defi are based on the behavior of people and to another extent on the tech itself. Rugpulls are not technical problems. A faulty and flimsy smart contract or lax opsec are also dev and people problems. Then there are systemic risks for capital in the ecosystem in the case of black swans….many facets here.
That said we alleviate the fee trap in event of a black swan by having a scalable infrastructure with near-zero fees.
The hypergraph allows for proper oraclization where the data is actually validated before it enters the ecosystem. Contract code audits etc are ofc standard.
Q: Can you share with us some of the future plans, such as the marketing development plan and recent activity plan for the #lattice exchange?
A: We have brought on a powerhouse of marketers that are veterans in the crypto space. I can’t divulge a lot, but we have an incredible lineup of opportunities in front of us. Additionally, our DAG community is the best community in crypto and works hard to create an organic self-governing community. They understand how to weave the story between Constellation and Lattice and are an aggressive group of people that won’t stop!
The marketing of lattice will include a lot of influencers, content, and community growth. We will paint a vision on not only how we can expand the DeFI space, but how we can tap into the $30 trillion traditional securities market as well. THAT IS BIG!
Q: I am reading your project and it is fabulous. But it concerns me to ask what will be the role of the community in the development and future of Lattice?
A: Our community will help evangelize constellation and can potentially be the first people to provide interoperability between other blockchains at scale.
Community is one of the core values we as a team and community hold. In that manner, people of the community are the first users and governors of the platform.
Q: In what way do you see Lattice innovating/impacting in the trading of traditional securities?
A: Just answered this in one way. Our vision is to truly oracalize data on DAG and in a scalable way. We want to take data from around the world and allow people to create complex trading algos (like traditional securities hedge funds do) with data. We will be the first to oracalize data in a decentralized way and allow people to create their own trading thesis and solutions. This will capture the $30 Trillion Traditional Securities markets that are already using a lot of data to create competitive trading of securities.
There is a visionary trajectory here. We can imagine not only improvement s for “traditional securities” through leveraging the hypergraph and showing what is possible and how one can build on the Hypergraph BUT also think about the new derivatives and securities that the Hypergraph enables. that’s where we ultimately want to move. Think: Data derivatives on top of our state channels.
Benjamin: Thank you all for the time! This has been great and a completely new community!
Eric: Please invite everyone to your TG and twitter.
Benjamin: @ERCSU You have been an awesome host with a great community. Amazing questions and a very natural cadence.
Mateo: Yes, you are all welcome in the Lattice and Constellation community! Thank you for the great questions and excitement!
Benjamin: We absolutely will share the transcription of the AMA with our community and invite everyone. The Lattice community is already over 700 people in just a few days and no marketing.
Eric: Awesome. I will surely be tracking this one. The fees at uniswap are now $15–20.
Benjamin: Ouch. That doesn’t seem scalable? Hahaha