Swingby AMA with Swingby CEO Yusaka Senga at t.me/amaroom

Swingby Labs is a Singapore-based company founded in 2018. They are a group of cryptocurrency enthusiasts who joined forces to develop solutions to connect Bitcoin with other blockchains. Now, during final preparations for our launch sequence, they are developing a protocol that moves assets quickly between blockchains, named Skybridge, and a few other projects… all using the most cutting-edge technology and research.

Eric: Our next great AMA will be with Swingby!

Hi @Swingby_Senga and @GugaTheCollector Thanks for coming by to do an AMA session with us!

Swingby Senga: Good evening everyone.

Eric: Please introduce yourselves to the AMA Room community.

Guga The Collector: Hi everyone, thanks for having us :)

Swingby Senga: Hi, I am Senga the founder and CEO of Swingby Labs — the company behind the Swingby Protocol that facilitates interchain swaps.

Eric: So tell us, whats your background story and how did you discover crypto?

Swingby Senga: I have been working in crypto since around 2016 in Japan and I worked closely with Ethereum. Before i worked with Gnosis and then I moved to Singapore and started Swingby in 2018.

Eric: What was your work with Ethereum about?

Swingby Senga: I was working before as an Ethereum developer and with the company gnosis, on many things to help bring Ethereum more forward and works on smart contracts — this is where I had the idea for Swingby in the first place and it is why we got the grant from the Ethereum Community Fund.

Eric: So what is Swingby Protocol?

Swingby Senga: Swingby Protocol is a project to bring interchange swaps to the blockchain space in a trust-less and decentralised way that requires no third party and no custody.

As we see more chains start and people lose the ability to move between them easily, Swingby is a system of nodes that can bridge these chains to unlock liquidity across them — and it does all of this without any third party or custody, it is all just using the latest cutting edge cryptography code.

Eric: Very much needed as the industry fragments. So what does the token do?

Swingby Senga: Yes and also with the rise of DEXes.

The token is required to stake on nodes in the network. The network runs on nodes — the system requires “m of n” nodes to sign the swaps using TSS. The network is entirely proof of stake and the nodes share the swap commissions. The tokens then allow you to run nodes on the system and earn the commission fees

Eric: Very cool. What is the status of project in terms of launching these nodes?

Swingby Senga: As of now we are running very well on testnet. That is testnet BTC and testnet BEP2. We have swapped over $15 Billion of volume over our testnet bridge.

We continue to stress test and security test the code,

You can test it yourself at: https://skybridge-testnet.swingby.network/

We hope to move this to a live Chaosnet in Q4 of this year and full mainnet in Q1 2021

Eric: Awesome. i hope some of our people here help stress test this.

How big is the team right now?

Swingby Senga: We will be running a competition on this, we will announce next week — that is an exclusive bit of news for you haha.

As of now I think we are around 10–12 people split all over the globe. Mostly in Singapore and Europe for now.

It is great that the decentralised team has meant that Covid has not hurt our productivity

Eric: Nice!!!

Swingby is commonly compared to Thorchain, what are some differences between the two projects?

Swingby Senga: Let me start off by saying, we’re big fans of what Thorchain is doing. We really love the vision they have and what they have been able to build.

This question comes up a lot, and the key differences are in the way the swaps are handled.

Thorchain has an intermediary step between swaps and the swap transactions require building first.

Swingby is a much simpler swap process with no middle step and works natively with any wallet.

What’s great for example is you can send BTC on BEP 2 into the skybridge address, with the BTC chain output address in the memo, and the skybridge simply processes the swap and sends out the BTC. For the sending party, it’s just like any normal transaction.

Eric: If i’m a user and want to swap ETH to BTC, where exactly did that BTC come from? And how is the exchange rate determined?

Swingby Senga: So currently in the SkyBridge we have for now, its not possible to swap between assets, only between chains.

So BTC on Binance chain < — > BTC on Bitcoin chain.

We have plans for some really interesting cross-asset swaps later that involve a really smart approach of tapping into existing liquidity pools rather than trying to bootstrap our own pools.

For example, we’re working on things like being able to add Lightning network BTC into the Binance DEX by using the SkyBridge to execute trades.

We see the difficulty in building liquidity pools and seek to avoid that altogether by plugging into existing ones as the way to go. Swingby will in the end be like the USB of chains — works in all kinds.

Eric: Very smart to consider this,

Why did you choose to launch on Binance network as opposed to Ethereum?

Swingby Senga: Binance chain is a mature chain with features that make it suitable for exchanging tokens, for example sub-second blocks, one block finality, and good liquidity.

By choosing Binance chain, we think Skybridge will be a useful tool from start while we also get an opportunity to prove our technology.

The Ethereum space is crowded and we felt that starting on a less crowded chain would give us a differentiator.

We are focusing hard on the ETH chain now, and having covered Binance Chain first, we think we will be well placed to offer some of the first ERC20 < < — >BEP2 trust-less swaps which is really cool.

Eric: With the number of new mainnet tokens launching on the market, what is your plan to make integrations as fast as possible?

Swingby Senga: Making integrations fast and easy is our 100% main focus.

Most projects are ECDSA and so it’s easy to build in.

We will be working hand in hand with project developers. Integrations shouldn’t take too long

Eric: Can you give some use cases for swingby outside of consumers just wanting to swap between 2 assets? You think exchanges can also use this technology?

Swingby Senga: Oh, yeah, there are many great uses besides simple A< — > B chain swaps.

It is the resulting increase in compatibility that we really are looking for, rather than the swap itself.

Using the cross chain swap protocol, users can trade on both ERC20 and BEP2 dexes from a single overview for example and benefit from arbitrage opportunities or increased liquidity.

Exchanges can use the extra liquidity given from the Skypools when they choose to use our services.

We are working now with a peer-to-peer exchange that requires wrapped BTC to integrate with their escrow functions, this limits their market to those holding wrapped BTC.

By plugging into our protocol we can enable users to seamlessly send in BTC and the platform to handle the wrapped BTC without the user ever knowing.

This enables millions of dollars a year of volume on our protocol without the end users ever even realising.

Eric: Can you talk a bit more about the recent partnership with Elrond? What exciting things can we expect from that?

Swingby Senga: Elrond is incredible, isn’t it?

They’ve really been a rocket ship in this whole space and we’re delighted to be working with them.

They key things we are working with on Elrond is bringing this same interchain swap functionality to the Elrond chain.

That can be from simple things like building a bridge for users to swap between mainnet and BEP2 ERD tokens, to… , well I’ll let the audience imagination think where else that can go

Eric: So Swingby listed at Bitmax, whats the next step on that front?

Swingby Senga: We had a great launch with BitMax, they have really seen some great IEO’s this year and we’re delighted to be among them.

I think the next step is probably to roll out a few more exchange listings, probably a DEX listing, and bring some other pairs online like ETH and BTC pairs.

We have been inundated with Exchanges asking us to list with them, but we’re taking a little step back and making sure to list in the right exchanges at the right time.

We had a huge demand on Bitmax, it overloaded their auction.

Community AMA

Q: Partners in every project play a huge role as backup and support at every start of a project/company, so my question is What role do your partners play in the ecosystem of #Swingby and what benefits do they have for being a partner?

A: As i sort of mentioned earlier, we’re leveraging partnerships to get liquidity up high over the network. The peer-to-peer exchange is a great symbiotic example.

We get more volume over our protocol and more fees for nodes
The exchange gets native BTC support in a trust-less way, which leads to move volume.

We’re finding more partnerships with mutually beneficial integrations

Q: The principal limitations of all swap models are the spreads and Slippages between orders, so How you solve these issues?

A: In asset-asset swaps there is no slippage as it is a 1–1 swap so no pricing slippage.

As for solving the price oracle problems, we have some tricks up our sleeves but they’re not ready for public release yet unfortunately.
But it’s a subject we have spent a lot of time and effort thinking about.

Q: How does SwingPool work? Where do the funds from that pool come from? Are they introduced to the Swingby ecosystem or is it the pool of other Dex’s?

A: The current bridge it is company funded float pools that provide the liquidity and the float pools are topped up by the company as and when needed.

For more advanced swaps later, as I said, we intend to use existing liquidity pools and providers rather than attempting to build our own liquidity pools — that’s too much of a crowded space and we are better focused on our strengths than funding liquidity pools.

Q: Can you list 1–3 killer features of swingby that makes it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?

A: 1. We are chain agnostic. We will integrate as many chains as possible and won’t play favorites.
2. With our recent release of GG20, we believe we are the fastest protocols out there, running instant swaps.
3. Our current staking rewards is among the highest available in the space — up to 67% APR. we want to encourage everyone to participate.

Q: Blockchains are written in different programming languages, how does SwingbyProtocol deal with these differences?

A: Our protocol doesn't need a lot of deep chain integration as it is more about taking in assets from one side and then releasing them on the other chain.

The protocol magic is in the TSS between the nodes.
We don’t need any special transaction types or detailed transaction building — this makes it easier to integrate on many chains.

Q: Do you plan to become a Defi project? If you don’t How would you make a user of Defi projects feel just as safe or more with your project?

A: We consider ourselves to be part of #TeamDeFi as our protocol facilitates DeFi applications and offers interest yield on our pre-staking and variable yields on our mainnet node staking.

Q: Can you explain more about the “1-to-1 supply-peg swaps” mechanism? What are the benefits of it and why did you choose Binance DEX to start implementing?

A: The 1–1 swap is the same asset on other chains so BTC on Bitcoin chain and BEP2 chain, but this removes any need for pricing as the ratio is always 1:1. I think we already spoke about why Binance chain.

Q: Why does SWINGBY choose to ONLY support staking on BITMAX, which is a 3rd Party and can’t guarantee security, also why do you give 67% APR, don’t you think it will have adverse effect on project price?

A: We support staking on our own portal: stake.swingby.network.

We are happy that Bitmax support staking on their exchange and hope that other exchanges will follow suit. BitMax is an exchange of reputation, and we believe they are protecting their user’s assets as their own.

If a person does not feel comfortable staking in a centralised 3rd party, you can also stake from your own private wallet as we encouraged before.

We want the current staking program to be an opportunity to educate and encourage people to be a part of our ecosystem. show-casing how easy it is to stake from your own private wallet.

Q: Is there any tend to burn some tokens of supply in the future to stabilize the price?

Do you intend to expand in the Middle East?

Will the currency be included in more platforms soon?

A: The current plan is that the pre-staking rewards are reduced by 0.25% per week for each mainnet pair we bring online. Once that gets to 4 pairs the pre-staking will be over and we encourage users to stake nodes to earn real staking rewards. At that point, the current plan is to burn the remaining “Staking Rewards” pool that has not been used. This is around 30% of total supply.

We’re global from day one and we’re happy to work with local teams and partners in The ME or anywhere else.

We cant talk about exchange listings, but of course we do plan to list in more places to give more opportunities for people.

Q: One of the problems with swaps projects is that they are not later integrated into daily use wallets. Swingby is working with wallet programming companies for integration?

A: Swingby works with every single wallet from day 1. It just works.

No additional working with wallet providers needed.

Q: 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 #SWINGBY?

A: I think a honest con at the moment is that the Binance chain hasn't boomed as much as we perhaps thought it might last year when we started. This is perhaps as DeFi projects have really hit Ethereum hard and are growing there — we do believe this is only a matter of time though.

Q: The Threshold Signature Scheme (TSS) is a protocol where private keys, and therefore cryptocurrency addresses, can be created by multiple parties. Who are those parties? How is it completely secure for users?

A: This is a technical one to answer but the TSS is very cutting edge cryptography. It allows the nodes to agree and sign an outbound x without any node seeing the full key.

The amount of nodes needed to compromise to get a full key from them is the barrier that protects the network. It is more than a 51% attack, you would need to compromise 2/3 of the diverse network in order to corrupt it.

This is further secured with the POS of nodes staking a large number of tokens and thus $ at risk.

Q: How to connect between two blockchains with different transaction speeds? example ETH vs TRX?

A: So we already do this with bitcoin chain and Binance chain.
It just means the slow chain holds up the faster one.

BTC chain we wait for 2 confs, which means the Binance chain tokens are not released until then.

On the opposite way, we release the Bitcoin chain really quickly as the BEP2 has <1second and 1 conf finality.

Q: What is minimum and maximum stake requirement for the BNB Staking competition, also do I need to send my BNB to a third party or lock them up outside of my personal wallet for staking?

A: We haven’t finalised the stake amounts yet so I don’t want to give a figure and have the community shout at us later if we change it .

Closing Remarks

Eric: Ok. its a wrap!

Swingby Senga: Some I need to check with the dev team on.

Eric: @Swingby_Senga Please invite everyone to follow your channels.

Swingby Senga: Thanks everyone, really interesting questions, really made us think

Be sure to join our telegram on https://t.me/swingby to continue the great conversation and questions there with our team!

We apologize if we didn’t get to your questions at this AMA, however, please tune into @Swingby and ask your questions there.

Eric: Thanks @Swingby_Senga and @GugaTheCollector!

Guga The Collector: Thank you everyone for participating in this AMA, and thanks for the support!

If we didn’t answer your question, please reach out to us through @Swingby or Thank you everyone for participating in this AMA, and thanks for the support!

If we didn’t answer your question, please reach out to us through @Swingby or twitter.com/swingbyprotocol :).

Carpe Punctum! Seize every moment.