Starcoin AMA on 9 PM February 1, 2022, EST
Guest: Tim, Westar Labs co-founder
Question 1: There are some stablecoin projects available on the Starcoin testnet. What is the difference between them and other stablecoins in the industry, and what is the next plan?
Tim:There are two well-known types of stablecoins. One is fiat-based stablecoin, such as USDT, USDC, etc. The other type is collateral-based stablecoin, including DAI, backed by some crypto assets as collateral.
The stablecoin projects on Starcoin, including Fai and Wenwen, are the latter. It is a decentralized mechanism that will not interfere with a central party or other regulators.
Fai and Wenwen are all finished developing and available on the Barnard testnet and ready to launch on the mainnet right now. They may be used on token swap or stablecoin swap scenarios and basis for other protocols.
Questions 2: When will Starcoin support STC liquidity mining DEX online? What is the APY likely to be?
Tim: Most DEXes support yield farming, including Starswap.
I had a meeting with the Starswap team last week. I learned that they’re adding staking functionality for the governance token right now, which will decrease the volatility of the governance token and make the farming earning more stable. I believe the final development for Starswap will finish in two weeks.
For the farming APY, it’s impossible to predict an exact number right now. Because it depends on the token price and how many funds (TVL) participate in the protocol. However, the most popular DEXes earnings are between 20%-100%. Therefore, I believe Starswap will also be in the same range after the protocol becomes stable.
It will be higher during the launch period. But I have no guarantees about it.
Question 3: We have learned that Starcoin has developed the bridge for a long time and is still not launched right now. What is the difficulty?
Tim: A Cross-chain bridge is essential for a new public chain and its ecosystem. So we began our bridge voyage several months ago.
We tried different solutions, including routes from custodial wallets or exchanges, but we figured out a decentralized bridge was the right way for us.
There are indeed some difficulties for those non-EVM chains. These problems need to solve independently, such as proof, chain fork, billing, and other details tech issues.
Most of the problems listed above are close to being solved, so we don’t need to have a decentralized bridge very long.
Question 4: What is the progress of Starcoin’s Layer 2 plan? Is it significant for Starcoin?
Tim: Starcoin has researched and developed Layer 2 technologies for years. Including lightning extension on Bitcoin, state channel, and rollups on Ethereum. We will give more information on our layer 2 evolution on the Medium posts.
In 2020, we began to develop Layer 1, which is the current mainnet of Starcoin.After half a year of development, we have added application and protocol development support. This year, we decided to focus more on layer 2 on the chain infrastructure.
Now Starcoin Layer 1 can provide hundreds of transactions per second, not satisfying the future growth demands. In our vision, Starcoin should handle thousands of TPS in the next year’s version. As we mentioned in the white paper, layer 2 is the solution to our scalability vision and is significant to our project.
Question 5: Now meta has sold Diem. What is the impact on Starcoin?
Tim: Yesterday, a CoinDesk report said that Diem is sold to Silvergate Bank, and Diem itself will be shut down shortly. I don’t think selling Deim is a bad thing. Diem reached the launch state from a technical point of view long ago, but it cannot launch due to regulatory concerns.
When Diem is handed over from Meta(Facebook), Silvergate Bank can operate the network more independently, and it will encounter less regulatory attention because it is not a tech giant.
So the subsequent development of Move can also be carried out more smoothly for the actual needs.
Since Diem is the most mature stablecoin protocol so far, I am still optimistic about the future development of the Move ecosystem. So this is the comment for the Diem selling.
Question 6: When Will you update the Website? It is not current and out of date.
Tim: For the website, we’re redesigning the website by a global team right now, the new website include video introductions, tutorial and developer tools for new users.
But you know, we can see it until it goes online. The scheduled launch date is about next month(March)
Question 7: Who would trust in WenWen or Fai? They are tiny non-backed projects. Why should this excite us?
Tim: The DeFi protocol is controlled by code(Smart Contract), which is open source, and developers also cannot change the behavior of the protocol, such as transferring the collateral funds.
But the protocol needs to upgrade. Some people may have security concerns about the process. In the future, its DAO will govern the upgrade.
Question 8: Can you share some information about the Starcoin grant system? What is the total amount for the incentive?
Tim: There is no exact amount for the incentive now, but according to our economic white paper, 8% of all Starcoin tokens will be used for the ecosystem.
So that the grant amount could be as much as 250 million $STC, We will give more information about the grant system next week.
📌 For more info about Starcoin:
Website: https://starcoin.org/
Telegram: https://t.me/Starcoin_STC
Medium: https://medium.com/@starcoin
Twitter: https://twitter.com/StarcoinSTC
Discord: https://discord.gg/starcoin
Github: https://github.com/starcoinorg
