Welcome to another exciting chapter of Satoshi Club AMA series. Today we would like to tell you about the AMA session with our friends from LEVEL 01. The AMA took place on August 29 and our guest was the founder, @jonloiyk.
The total reward pool was $600 and it was splitted into three parts.
In this AMA Recap we will try to summarize some of the most interesting points for you.
PART 1, INTRODUCTION AND COMMUNITY QUESTIONS
Serg | Satoshi Club: Hello dear community! Our guests today are from @level01io Welcome!
Irina K. | @satoshi_club: Hi everyone and welcome to another day of AMA’s on Satoshi Club.
J L: Hi everyone!
Irina K. | @satoshi_club: Hi Jon, thanks for joining us. For a starter, please tell us a few words about yourself.
J L: Thanks Irina, hope everyone is well too. I’m Jon and founder of Level01. It’s a decentralized platform for derivatives.
Serg | Satoshi Club: Can you tell us a bit about your background?
J L: Have been in product development for more than 15years, mobile technology and recently 3 years in decentralized finance.
Serg | Satoshi Club: How was the switch from mobile technology to decentralized finance?
J L: I like to hands on with the projects I’m working on. Mobile tech to DeFi was a new thing, as the field is also relatively upcoming. However, my background is computer science so the important thing is to have good team/consultants for the finance part.
Serg | Satoshi Club: Yep, usually a good team makes the differences. the more brains involved, the better.
J L: We have a strong team of developers and quants. Advisors are from Thomson Reuters, now Refinitiv.
Q1 from Bitcointalk User linderm
Level01 is an exchange which is both centralized and decentralized. How did you implement that? Is it like Binance and Binance Dex? do you have your own chain for the dex or it operates on an existing blockchain?
J L: Level01 allows trading of derivatives contracts, and settlement is on the Ethereum blockchain. We do not focus on spot asset trading which involves only cryptocurrencies, but rather derivative contracts trading which allows users to trade the underlying asset, in markets like forex, commodities as well as cryptocurrencies.
Serg | Satoshi Club: For those who read and don’t know, can you explain a bit about derivatives?
J L: Derivatives are a multi-trillion industry. Derivatives are contracts between parties that represent rules/agreements of settlement between any party regarding the price/market movement of any underlying asset.
Irina K. | @satoshi_club: Sounds like a perfect fit with smart contracts.
J L: So in layman terms, an agreement of, example: what Bitcoin price will be like 1day from now.
Serg | Satoshi Club: I think you explained very clearly for people who didn’t know what that is. Thanks.
Q2 from Bitcointalk User yongthanyee01
I was reading the disclaimer on your website https://level01.io/download-apk-2/ that state. All settlements are conducted on Ethereum Ropsten (Testnet) as is the hosting of in-app blockchain wallet…. So my question is the wallet app is still in testnet mode? If yes, what is the timeline to mainnet deployment?
J L: Currently the Google Playstore version is in testnet (demo) mode for users. We have deployed mainnet versions to various trading groups to gather feedback. The mainnet version will launch on 10/10 (OCT10).
Serg | Satoshi Club: what’s the feedback so far? Btw, on that date is the birthday of my mother. 😁
J L: Generally good, some adjustments required to accommodate the increase in Ethereum gas costs. Great, will remember to wish her. 😀
Irina K. | @satoshi_club: That’s interesting. How do you plan to handle the high fees on the network?
J L: We will deploy a solution to offload certain parts of the settlement to private side chains. The main settlement will remain on the main network.
Irina K. | @satoshi_club: And as a result the price will be lower, right? Gas costs I mean.
J L: Yes, our gas cost will be lower and we can sustain the whole system.
Serg | Satoshi Club: Interesting why uniswap or other similar dex don’t do that?
J L: Users pay gas cost for Uniswap.
Irina K. | @satoshi_club: Yeah, but a lot of the times high gas costs discourage small users. It’s a good thing that you’ve thought about that. Who is your ideal customer by the way?
J L: We’re open to both single users, and institutional users. There is no limit to contract size.
Q3 from Telegram User @gruvv
Tradeline, within the Level01 App, is the platform’s native method of instreaming assets from a user’s private wallet into the platform to facilitate and fund trades. What do you mean by instreaming assets from a user’s private wallet? Do you have access to them?
J L: The Tradeline is an integrated smart contract escrow system linked directly to a user’s wallet, and can only be accessed by the user. The Tradeline ensures both parties of a p2p options trade will not default halfway through the trade. This is important because the platform is decentralized and has no control over a user’s wallet. Example: Bad actors might withdraw all funds before a trade maturity and default.
We do not have access to a user’s Tradeline. It is a special smart contract which secures funds on behalf of the user and communicates this with another trading counterparty
Irina K. | @satoshi_club: Can you share if the smart contract is public? Can it be audited by those interested? Or maybe it would help if you could elaborate how Tradeline works/ operates.
J L: It will be audited by very reputable parties. User allocates a quantity of funds that he wants to use for trading into the Tradeline. The funds can then be used by the system to create contracts or buy contracts. The Tradeline funds never leaves the users control until it is used to create a trading contract, or buy a contract.
Irina K. | @satoshi_club: This will increase the trust of the community in it.
J L: Yes, this will be announced to public, along with results of the audit.
Q4 from Telegram User @hadrianus14
I see that you are not only a crypto exchange but also other things as well. Can I trade Oil, Tesla, Gold? What would be the fees? When was the oil crisis for example, there were exorbitant fees for oil trading on etorro.
J L: Yes you can trade all supported markets on the platform, not just cryptocurrencies. The platform derives commissions from the contract value, and both traders pay 2%. Fees are halved to 1% when using LVX to denominate trading contracts. Example for a $100 contract, issuer will pay $2 for fees and person that buys the contract will pay $2 for fees. This becomes $1+$1 when using LVX.
Serg | Satoshi Club: I know that on forex/etorro there are daily fees for keeping a position open. Do you have such things? or this kind of trading is not available on Level01?
J L: There is no holding fee for our trading contracts. There is a specific maturity to the contract so the settlement date is known. I think this applies to perpetual contracts, which settlement time is unknown.
Irina K. | @satoshi_club: But it can be closed before the maturity date, right?
J L: The contract cannot be closed before maturity, because you’re matched with another person p2p and not the platform which can act as a market maker. We will however provide the capability to resell the contract (with some discount) to another person in a secondary market.
Serg | Satoshi Club: Would it be possible to resell it infinite times or only the second time?
J L: Once you sell it, you no longer hold a position in the contract.
Irina K. | @satoshi_club: I have one more question regarding this. The fee of 2/ 1% is fixed? Or it changes based on the amount of traded value?
J L: It is based on the total notional value of the contract. A contract has a fixed total value when issued.
Irina K. | @satoshi_club: But it stays at 2% or 1%, no matter if the notional value is 100$ or 100k$?
J L: Yes it stays the same.
Q5 from Telegram user @nyo_cant
P2P trading is a well-known tool, but this is the first time I read about P2P options trading. How will it exactly work? What are the terms for users wanting to set a P2P agreement for options?
J L: In the App, first you select a market that you want to create the option in (example: Gold). Then you create the option contract by defining the parameters such as expiry, strike, buy/sell direction and total value of the contract. The contract will then be issued into the market for traders to buy. Counterparties take the opposing side of the trade.
Q6 from Telegram User @Jonahapagu
Level01 uses an Artificial intelligence algorithm known as Fairsense can you explain how this algorithm works and how it benefits Traders using Level01?
J L: FairSense provides real-time risk/reward probabilities for the user when they are creating or buying a contract. FairSense balances the price of the contract so that when someone buys a contract even after some time has passed and there is market movement, both parties are getting the fair value of the contract according to the current price during matching.
Means if the contract has been unmatched for let’s say 5mins, and the market price moves against you, the buyer has to pay more for the contract and will also get less profit.
PART 2, TELEGRAM COMMUNITY LIVE QUESTIONS
The chat was open for 80 seconds; a lot of questions were posted by Satoshi Club community. Our guest chose some of them.
Q1 from Telegram User @kaltumia
As a community driven project; how can I contribute my quota to your success? Do you have a Global Ambassadorial Program or Referral Reward System? Do I get any benefit from holding $level01 in long-term?
J L: Yes we will have upcoming ambassador programs, pls contact level01 telegram admin for application details. Our platform and indeed all defi projects specialize in creating opportunity for the masses. Holding level01 token (LVX) is a choice for any upcoming wealth creation opportunities because of its usefulness to traders.
Q2 from Telegram User @jobel4
Can you explain more about the peer to peer decentralized platform without having a Middleman in Level01? What is the process and structure? What is the pros and cons?
J L: The pros are that users get the most profit margin, safety and transparency because all parameters including data sources are transparent and auditable.
Q3 from Telegram User @lampung21
Is Level1 supported worldwide? Does this mean that anyone from any country has an account at Level1 and how to deploy your project to both cryptocurrency and non-cryptocurrency users?
J L: Yes Level01 is supported worldwide, with the exception of certain minimal restricted countries. We will have fiat onramps because currently that is required by users not familiar with cryptocurrency, so they can use their cards to onboard the platform.
Q4 from Telegram User @Nickkiii
I’m a developer, and I’m interested in contributing to Level01, do you have any Bug Bounty to check for vulnerabilities on your platform?
J L: Level01 is a growing ecosystem and all feedback is welcome. We do not as yet have an establish bug bounty program, but will welcome all proper and helpful feedback with special incentives.
Q5 from Telegram User @abowhasebe
What is LVX and its use on the Level01 Exchange?
J L: LVX has is designed to have special integration with the Level01 platform. It provides constant liquidity for LVX denominated trading contracts, halves fees, supplements Tradeline gas costs, and will be used to host trading rooms in the future. We will eventually also have staking mechanisms for LVX.
Q6 from Telegram User @Albert3990
I see in the site the Level01 App will only accept LVX, ETH and stablecoins (USDT/TUSD/DAI). Have any perspective to insert more coins and tokens in the next days?
J L: Yes we will gradually be adding more stablecoin options in the near future. Currently looking at DAI and TUSD.
Q7 from Telegram User @Jackluckysomuch
What are LEVEL01 plans to grow internationally, what are you currently focused on, developing or listing more markets, or creating your ecosystem or marketing and partnerships?
J L: We are currently focused on product development and building more markets onto the platform. marketing efforts and major partnerships are also underway. These partnerships are part of our ecosystem and helpful for all users of the platform.
Q8 from Telegram User @Gejwany
What is the structure of the company, is it a decentralized, open sourced protocol where everybody can contribute? If so, how does the governance plan on being handled?
J L: The company is a private holdings company, with the platform itself transparent and decentralized. This structure is optimal for the product because everyone is contributing to the project in a managed and structured development manner.
Q9 from Telegram User @YasueSama1
How does yr order book handle flash crash? If d price is 100, and I place a stop loss at 80. And it crashes to 10. Will my stop loss be executed? Say market crash in 15 mins.
J L: The platform is currently not dealing with spot trading, rather you create an option contract with specific parameters and await settlement of the contract. Upon contract maturity if the market price is in your favor, then you profit.
Q10 from Telegram User @captinbro
Can we monitor all transactions on the #level01 infrastructure and off-chain? Is it possible to monitor user transactions on the network? How do you ensure privacy and anonymity?
J L: Yes it is possible to monitor transactions on the Ethereum blockchain through appropriate blockchain explorers. This is to ensure transparency and users retain their privacy. Nobody knows the origin of ownership of the wallet(addresses).
Q11 from Telegram User @aturinarrsh
Currently your app is only available on Android, are you planning to launch it on iOS and add some new functionality?
J L: We will launch Android and then web-based version. iOS users will be able to use the web-based version. The iOS App will be launched after.
PART 3, QUIZ AND INFO
As usual, for the third part, Satoshi Club Team asked the chat 4 questions about LEVEL 01. A link to a Quiz form were sent into the chat. Participants had 10 minutes to answer. 300$ were distributed among winners.
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