Xave Recap

Greetings dear Satoshi club! 😊

Hey Satoshi Club community! Let's welcome our guest from Xave Project! It's great to have you here today. Let's get the AMA session started!🚀

Hey Satoshi Club, it's great to be here!

Excited to share more about Xave and answer your questions ✌️

Welcome to the Satoshi Club 🤗

Welcome to the Club Jordi😄

🔥

How's going?

Going great! Very busy as we get closer to the LBP on the 17th, onboarding new stablecoin issuers, a lot going on over here

To warm up, please tell us about yourself. How did you get into crypto, what got you interested?

We love LBPs❤️

So this is a big milestone in the history of the development of the project 🙏🚀

I've been full-time in crypto since 2015. I used to work in traditional payments, and when you learn how old the technology is you want to burn it all down and start from scratch. I stumbled into crypto, and then worked on launching the first debit card you could link to a Coinbase account. That was 8 years ago, and it has been amazing to watch the space grow in that time

100%

What's your position at Xave?😄

That is, you are a traditional crypto evangelist 😁

I'm the COO and Co-Founder at Xave. We've been working on this quietly behind the scenes for over a year, so thrilled to finally be sharing more publicly 🙂

we are happy that the choice fell on Satoshi Club 🔥

Bear market gave your time to build 😄 i believe bull market will appreciate your efforts

Jordi, could you explain to our members what is Xave? 😄

What is the essence of your project? It has been behind the scenes for a long time, we want to know the details😊

Xave is the FX market for DeFi. We build liquid FX markets by working with stablecoin issuers to bring FX on-chain. For context, FX (Foreign Exchange) is the largest market in the world at $7.5 *Trillion* per day, and it runs on old, outdated tech. We're bringing it into the 21st century !

Hm, sounds exciting! We definitely need FX in crypto space!

It's sounds amazing 🤩

Tell us more about the team behind Xave? I am sure you have a lot to tell about them😄

Definitely, it has been an amazing group to build with! Xave is built by people with deep backgrounds in the space: the founders were early employees at ConsenSys, Kraken, Coins.ph, and other globally recognized products. We also have backgrounds from the traditional financial world that help us bridge the TradFi -> DeFi world. We also worked on very early stablecoin/CBDC projects with the Asian Development Bank, so know that world well 🙂

Wow, i feel something big is coming 🔥

By the way, what does the name of the project mean, what do you put in the meaning of Xave?

There's actually no hidden meaning, we just thought it sounded nice lol

we have been waiting for something so professional in the crypto space for a long time🔥

It is pronounced "Zay-ve"

I love it 😁

It sounds👍

Thank you for this introduction Jordi!Do you feel ready to move to the questions from our community?🔥

Let's do it!

Q1 From Telegram User @Thisistoyin Greetings Xave’s Team! I’ve noticed on your Twitter handle that, after achieving over $51M+ in FX volume, your team has decided to unveil the launch of Xave’s governance token—an integral aspect of your ecosystem. I’m keen to learn more about the Tokenomics distribution of Xave’s token within your ecosystem. When is the scheduled launch date? Additionally, are there plans to list the token on multiple exchanges, and is there any opportunity for ICO/Presale participation for users within your ecosystem? I hope we are not too late?

Thanks for the question @Thisistoyin! Let's see here:

Most projects in crypto launch their token to raise money before they build their project, but Xave is a bit different. We wanted to make sure that we had product market fit before issuing a token.

Now that we’ve partnered with major stablecoin issuers (Circle, Stasis, etc.), protocols like Balancer and Avalanche + processed $50M+ of FX swaps, we’re ready to launch our governance token so that the community can grow with us.

Woops

1 second

😅

Try again

Jordi l Xave: We’re launching a small number of XAV tokens on December 17th to our early community. Because we’re such close partners with the Balancer ecosystem we’re selling XAV tokens via Balancer’s partner Fjord Foundry using their LBP (liquidity bootstrapping pool) platform. An LBP is a fair distribution mechanism to ensure that the supply isn’t bought by whales, and that everyone has fair access (please read the link below for more details of how LBPs work). 🚨Once the LBP concludes, XAV tokens will vest for 3 months, because we’ll be launching a series of IEO’s in March on several centralized exchanges. These IEOs will happen at a much higher valuation than the LBP price, which is our way of showing appreciation to our early community 🚨 XAV Tokens will list on centralized exchanges just as the IEOs end, which is when tokens purchased during the LBP will unlock for our early community 🙂 LBP Info: https://help.fjordfoundry.com/fjord-foundry-docs/welcome-info/what-is-a-liquidity-bootstrapping-pool-lbp-+-features Tokenomics info: https://docs.xave.co/tokenomics/xav-tokenomics

🙂

Sorry, our defence sometimes over defending

No worries! Hopefully my answer helps

Jordi, what we need to participate?

Which chain, do we need to hold some tokens or... ?

To participate in the LBP you just need to have USDC ready to purchase the token on Fjord. I'd definitely recommend reading more about Fjord in the docs linked above ^, and then be ready on December 17th-19th! The Xave LBP page will go live the day before the sale starts, and we'll share the link in our Discord + Twitter

The XAV token is launching on Avalanche

Lol, it's perfect time! Avalanche ecosystem is on fire now😄

Yep! We're very close partners with Avalanche. Their ecosystem funds (Blizzard) actually invested in us quite recently 🙂

https://twitter.com/XaveFinance/status/1731856894891880460

Any min/max purchase?

Nope, no min/max because we want to make sure that anyone can participate

it is fair.👏

Jordi, thank you for your answers! While i will be away to get some USDC to participate, may be you will answer second question?🤣

Absolutely, let's keep moving forward!

Thanks for the great answer to this important question. Are you ready for the next one?

💯

Q2 from Telegram User @Apelord_Ds Hello. Observing that your data feeds are constrained by oracles, particularly noting the Chainlink support, I wonder if this limitation affects the range of assets you can support. Do you utilize Chainlink exclusively, or do you employ custom oracles with a Monetary Authority of Singapore (MAS) approach? My inquiry revolves around your collaboration with Chainlink and other stablecoin partners for initiating new oracle feeds. Could you shed light on the current number of stablecoin partnerships you’re engaged in? Considering your focus on the Asian market, is there any integration with StraitsX, known for issuing stablecoins tied to the Singapore dollar and Indonesian Rupiah?

Oooh this is a *great* question

Right now we primarily work with Chainlink for two important reasons: 1. They are the gold standard for oracles (we only want to work with the best) 2. Because right now most FX (Foreign exchange) happens off-chain, that’s where prices are for these currencies. So we need to make sure the oracles used are linked to real-world FX prices, which is something that Chainlink is very good at.

That being said, it’s always good to have multiple redundancies, so we’re working with a few other oracle solutions right now to build more on-chain FX products. It’s still very early for on-chain FX, and we’re actually the first project doing this, so working directly with the oracle providers is a nice bonus that we get to do.

I would also add that we’re working on something ourselves for this, but that’s a few months away. More info coming soon 😉

In terms of stablecoin partnerships, we have a number that are already live, and dozens going live during the next few months. Live now: Circle (!), StraitsX, Stasis, VNX, PoundToken, BRLA.

We actually have a global focus, not just the Asia market. We already list several different EUR tokens, a GBP token, a Bazilian Rei token, with many more on the way. But yes, StraitsX is a very close partner of ours, and currently list their XSGD token with us (with their IDR token coming soon!).

There’s actually a lot happening on this front behind the scenes, which we'll share over the coming weeks and months

yes, it's hard to be a pioneer, but when the best choose the best, the result will not be long in coming👏👏👏

I am a bit afraid of stablecoins after bears🤣 how your pools will work in extraordinary situations?

It's important to note that we only work with regulated stablecoin issuers who issue collateralized stablecoins. We do not currently support any synthetic stablecoins, because we want to make sure that things always work as expected. Additionally, we're built on top of Balancer's tried-and-tested V2 vault. We wanted to make sure that we only build with the best.

This is a smart strategy.

We may offer support for synthetic stablecoins in the future, but that will be separate from the current stablecoin issuers we support

I will sleep tight, thank you 😄 ready for the next question?🔥

Yes!!

Q3 from Telegram User @Dalboto I am curious to know about the legal background of Xave protocol. Although foreign exchange is becoming popular, Forex trading is banned in some countries. Is your platform accessible to the citizens of those countries too? If yes, is it legal? If I live in a country where Forex trading is illegal and Xave is available, can I still use Xave without any hesitation?

This is an important one

Disclaimer: Xave should only be used by people according to the laws of their respective jurisdiction. Xave denies access to the platform for people from countries that appear on international sanctions lists, and/or where there are high levels of fraudulent activity. This is done using industry standard IP blocking techniques, and follows widely accepted best-practices used globally.

A non-exhaustive list of countries that are prohibited from accessing Xave include: Iran, Iraq, Somalia, Eritrea, Yemen, Russia, Afghanistan, North Korea, The United States, Cuba.

We're a serious project, and we take these things seriously.

No Ukraine i hope? Recently we found that our country banned from a lot of actions🥲

and it is absolutely justified.

If you are done with this question and do not want to add anything else, we can go to the next question 😉

Let's do it

Q4 from Telegram User @damzyleen Hello The “Xave’s Vote Escrow Model” was tagged coming soon. In this regard could you give a sneak peek of the “Xave Vote Escrow Model”; How does it work? What is the purpose the Vote Escrow Model? How is the Escrow vote planned, organized and executed to ensure a fair, flexible and legitimate voting model? Sight an example as regarding when the Vote Escrow Model can be used.

One of the nice things about working so closely with the Balancer community as we built Xave was getting to see how their vote escrow model works for the BAL token. The Vote Escrow model does a great job of aligning the incentives of everyone using a protocol, and helps to ensure the long-term stability of the token ecosystem.

This model has worked effectively at scale, and so we’re using a similar token model for XAV. This allows token holders to either remain passive (simply holding XAV) or participate in the ecosystem by locking their XAV to mint veXAV, which can be used for governance and a few other things. veXAV accrues a percentage of the fees for every swap that takes place on the Xave protocol. These fees are paid as a market making bonus to XAV:ETH LPs, and not paid to XAV holders.

We’ll be releasing more information about this prior to the IEOs in March, but in the meantime I’d definitely encourage you to read more about Balancer’s vote excrow model here: https://medium.com/balancer-protocol/unlocking-the-vemodel-f363d2d7bd91

An important point here

We've designed XAV with the Vote Escrow model to let anyone own a piece of the on-chain FX market

🙂

Don't miss Satoshi Clubber's important information 😊

You heard it here first ^

You talk about your project with such love that I want to join it 😁❤️

Ohhh, we love to be the first 🥇

Thanks for the tips 🔥

Thank you for the answers! Ready for the next question?🚀

Let's go!

Thank you very much for your answers. 😍

Q5 From Telegram User @DK177 Hello Xave Team! While most of the projects are now moving towards community centered approaches and allocating more funds to community members, Xave has reserved 25.5% from the total $XAV supply to the own team members. Is there a special reason for that? How do you ensure that the community members are not neglected and they will be treated property when distributing $XAV? Meanwhile, I noticed that there is an allocation of 14.5% for ecosystem rewards. What are the utilities of this portion and who are eligible to receive these rewards? Thanks.

The reason for the token allocation for the team as well as the ecosystem rewards is actually the same, and has to do with the way that Xave is different from most blockchain projects:

Most crypto projects are heavily focused on regular people, what the industry calls “retail users” (I hate that term, but that’s what it is). Think things like NFTs, or Web3 games, or even platforms like Curve that are for trading between tokens. These are things that are used by everyday people within the crypto world, and so the way they build their tokenomics is centered around a community of people using the product every day.

What Xave is going after something *much* bigger: we’re building for the largest liquid market in the world, the $7.5 Trillion daily FX market. This means that we’re building in a way that will allow not just stablecoin issuers to use Xave, but the sort of financial institutions that trade in FX. And so we’ve built our token model accordingly.

The reason we’re offering the XAV token to the general market is because it’s an opportunity for anyone to own a piece of this $7.5 Trillion/day market as that volume moves on-chain. And the team allocation reflects our desire to own a piece of that ourselves, because we believe that this will be incredibly valuable. How often do regular people (and we are definitely regular people here at Xave) get to be in on the ground floor of such an enormous opportunity?

In terms of who gets the ecosystem rewards, we’ll be using that to incentivize more and more stablecoin issuers to join the platform, as well as non-crypto projects, and this is an important point to think about:

We’ll be releasing an API next year that lets TradFi institutions and any organization plug into Xave to take advantage of our instant, ultra-low cost FX. This means that any company will be able to suddenly offer FX exchange in their product, and so we’ve set aside ecosystem rewards to help incentivize them to come on board. A key driver behind Xave is this link to bring the volume from the real FX market on-chain. We never lose sight of this goal.

Do you have any lockup period for the team?

Yes, of course! I believe that we've already published this in our docs, but there is a 6 month lockup period followed by a vesting period of 1.5 years for the team. Important to note that the lockup period + vesting begins after the token is listed on exchanges, *not* after the LBP

Yes. It makes sense.

Awesome! 👍

Thanks for the clear answer 😊

And now only one 6th question left for this part of our AMA 🚀 Jordi, are you ready?

Indeed 🔥

Q6 From Telegram User @MudaraSilva Greetings Xave Team! I am eager to learn more about your partnerships and collaborations. I have observed the allocation of 10% from the total $XAV supply for partnerships. Could you share details on your current partners and their role in shaping the future of the Xave platform? Additionally, I am interested in your future partnership plans and the criteria you consider when teaming up with others. Could you outline the partnership application process? Given the significant allocation of 10%, who holds authority over these funds and manages partnership-related expenses? How do you ensure transparent handling of these funds? Lastly, a brief overview of the benefits users derive from Xave protocol’s partnerships and collaborations would be appreciated. Thank you.

Dear community, we will open the chat soon. Please prepare your questions. Xave Team will select 10 of them. Please remember the rules ❗️❗️❗️ - Only genuine questions will be rewarded. Copied questions will be disqualified - Read the rules here (https://t.me/Satoshi_club/1292777) - For Part 2 of the AMA, every user will be allowed to post maximum 3 questions. One message should contain maximum 1 question. If you post more than 3 questions, you will not receive the reward if selected. Thank you for understanding and good luck!😉 - Also, don't forget to join Xave Discord - https://discord.com/invite/cZAEQpt4uG to be eligible for rewards

Absolutely, let’s see if I can shed some light here!

The partnership application process is geared towards onboarding the sort of organisations that are able to help us link the traditional financial world (where $7.5 Trillion of FX volume happens every day) and the on-chain world.

We have a number of different partners across the spectrum, everyone from oracle providers like Chainlink to bigger ecosystems like Balancer and Avalanche, as well as a few emerging stablecoin + RWA industry groups. We’re also speaking with a few foreign exchange market participants from the traditional financial world that are interested in helping move real-world FX markets on-chain.

It’s also worth noting that right now we’re focused on working with regulated stablecoin issuers. This is important, because we want to make sure that we have deep relationships w/ the projects that are (already!) bringing the TradFi FX market into DeFi, and are going to bring all of that volume to Xave.

It’s important to have a supply of XAV to help kickstart early incentives to grow the ecosystem, and one of the reasons we’re employing the Vote Escrow model for XAV is that this ensures the longer-term growth of the ecosystem.

The team controls the distribution of ecosystem rewards/incentives. We’ll publish the address controlling these funds so that the community can have full transparency into what’s going on there 🙂

Whew, that was a lot of typing lol

Btw, we can't find what is total supply of XAV?🤦

Ah, there will be a total supply of 100M XAV

2M will be sold during the LBP

Nice numbers 😀

Jordi, it was excellent first part🔥

Do you want to add something or we can start with the second, live part of our AMA?🚀

Yes. I agree, it was incredible ☺️

For example, links to your social networks

Ah yes, here are some helpful links: Twitter: https://twitter.com/XaveFinance Discord: http://dsc.gg/xavefinance TG: https://t.me/xave_finance

Thank you very much 👏👏👏

https://twitter.com/XaveFinance/status/1730387390299029775?t=fRCS5ViUFi6wJDNSzc1xGQ&s=19

Satoshi Club, don't miss this important event 😀 or cry later 😉

@JordiBlock ready for the storm of live questions?😀

🙏

Let's do it

Let's go🚀

omg where to even start haha. Thank you all for these questions! I will try to choose ten that cover a broad range of subjects.

Could you delve into the specific technologies and strategies you are implementing to optimize this process and how these improvements compare to traditional remittance solutions in terms of speed, costs

This is agreat questoin because it dives into real-world use-cases, so let me answer here

Since Bitcoin first emerged everyone has said that blockchain was going to "solve remittances", or "uppend the cross-border payment sector", and so far it has not. The Xave team has been working in both crypto and TradFi, and when you dive into *why* blockchain hasn't yet disrupted all of the cross-border use cases (of which remittance is a big one), the answer is clear:

Underneath all cross-border money flows is FX. You need a liquid FX market in order to have all of these cross-border money flows (like remittances) be fixable with blockchain

Only in the last 1.5 years have we seen the growth of non-USD stablecoins. First it was USDC and Tether, but today we're seeing more and more of the world's currencies issued as stablecoins

So as Xave builds this liquid FX market, suddenly anyone can tap into it and use our instant, ultra-low cost FX

And this means a lot of things will be build on top of Xave and our FX liquidity

Remittances

B2B cross-border payments

Traditional FX swaps

That's how we bring the $7.5 Trillion daily FX market on-chain.

Xave is definitely not going to be the one building the next remittance app, or the next B2B payments company. But those people who will be building thos products will plug into us, behind the scenes, to power their FX

That's the vision we're building towards. And that's why we've been so quiet as we built this last year, focusing on signing partnerships and working with real companies

Obviously there is a lot more here, but I think that's a solid start for an answer 🙂

On to the next question!

What unique features makes your project stand out when compared with other projects?

This is anice broad one that lets me dive into our tech a bit, so let's have a look here

A really important point about Xave is that we are not just another DeFi AMM. We are purpose-built for FX, because FX has a number of distinct requirements

We use a unique curve that we call the FXInvariant to facilitate FX trades. I won't go into the technical details, but you can read about this in our docs: https://docs.xave.co/product-overview/fxpools

The main point here, that I think I've been making over and over today, is that Xave is specifically designed for FX. Not just in the partnerships we have, but in the product itself. And we didn't want to just build everything from scratch; we wanted to make sure that we used technology that is already tried-and-tested. That's why we decided to work closely with Balancer from the beginning, and build our FXPools on top of their v2 vault.

In general, something that makes use unique is the background of the team. We have deep backgrounds in DeFi and crypto, but also in the TradFi world. And you need that in order to speak + work with both groups. We can only change the world, and bring FX on-chain, with participation from both groups.

That's why most people haven't heard of us. We've been heads-down building the product and signing partnerships, and not focusing on marketing or social media. We're only just going public now as we get set for the LBP and IEOs 😄

Hey ✨✨✨ In the emerging landscape of on-chain FX, how do you see the integration of multiple oracle solutions enhancing the reliability and redundancy of price data, and what challenges have you encountered in this pioneering endeavor?

Oracle questions are super important, so let me answer this!

A really unique thing for on-chain FX is that, unlike for cryptocurrencies, the prices are actually off-chain and moving on-chain. This is why we've started with Chainlink, because they are the best, and they have links to the off-chain, traditional FX markets

Sometimes we work with brand new stablecoin issuers, and actually introduce them to Chainlink in order to spin up new price oracles. And that's great, because we get to work hand in hand w/ Chainlink, and the stablecoin issuers, so we all grow together

Over time, of course it is best to have multiple options, tohave redundancies. And so we're speaking with a variety of other oracle providers to see how we can work together

And we're also working on something ourselves. Which we're not sharing anything about just yet, because it's sensitive and highly technical. We have our eyes on the long-term with Xave, and our partnerships, and so it's only natural that as we all work together we also build new solutions together

But more on that in 2024 😉

Ok, that's all that I'm allowed to say about that for now. More to come!

Time for the next question

How does the bonding curve ensure that the liquidity pool remains healthy and attractive to liquidity providers, especially when compared to traditional constant product curves used in other AMMs?

This one is a bit technical, but let's dive into the FXInvariant to discuss how this works...this also goes back to the earlier question about what makes Xave's product unique

We've tried to build a product that mimics real-world FX markets, and market economics. And we do this by using a curve specifically designed for FX, which we call the FXInvariant. The blue box is what we can the "FX Accurate region", where traders buy/sell for the accurate real-world FX rate

As demand pushes the makeup of the pool towards Point J, the pool becomes unbalanced. We want the pool to remain balanced, so as soon as the pool moves past Point J what happens? Incentives and penalties come into play. We let real market dynamics take over

Traders pushing the price past Point J get penalized w/ fees, to the point that it becomes uneconomical to keep trading in that direction. And at the same time, incentives come into play. Anyone trading back into the the FX Accurate region gets a nice little bonus, and as we've seen happen countless times (because our product is *actually live*), this works

Again, I would definitely encourage everyone to read our docs in-full, and ask questions in our Discord!

I hope that helps to clarify things 🙂

Next question!

I would like you to tell us what significant features does Xave have that will make it gain more traction in 2024 or stand out amongst others?

This is a broad question that actually deserves a very specific answer

A lot of products in crypto try to do a lot of different things, and they try to gain users and volume from the same core group that is *already using crypto products*.

The crypto market is big, but at the end of the day it is not that big.

Xave is build for one specific thing: on-chain FX.

We're trying to actually change the way FX happens across the world, because FX underpins almost every part of economic life. Most people don't think about the role that FX plays, in the same way that most people don't think about crypto. At the end of the day, most people don't know (or care) about how most things work. They just want them to work.

So we've build a product that, sure, anyone can use (that's the beauty of DeFi!), but is really targeted at stablecoin issuers and enterprises. You know? Because that's also what the stablecoin issuers are building for. Stablecoin issuers are slowly becoming the new verison of banks. And so to actually answer this question: Xave is the only on-chain FX solution today. And we're going to maintain our command of the space by making sure we're partnered with the major players

The stablecoin issuers

There are more and more stablecoin issuers every day

And they're coming to Xave

So we build for them, and with them. And that;s how we win 😉

Thanks for bearing with me everyone, I know I'm writing a lot. But this is important, and we care about what we're doing

Next question! Omagawwd ! On/off ramps arguably represent the biggest bottleneck toward mainstream blockchain inclusion across retail banking ecosystems internationally. Is Xave collaborating with any fiat integration partners to build customized localized gateways targeted at high growth mobile-first countries?

This is such a crucial question, and shows a nice understanding of how things work. Bravo for asking this 🙂

I've already talked about this a bit so won't repeat too much, but we really believe that nobody cares how things work, and shouldn't have to. We're building the FX market for major volume to plug into, so even though Xave will be powering FX in major products that people use, they won't necessarily know that's happening, as it will be behind the scenes. Just like when you take money out of an ATM in a new country, you don't know what processes happened behind the scenes.

Here's the beauty of what we do: the stablecoin issuers that we are parntered with *are the on/off-ramps*

I already mentioned our focus on regulated stablecoin issuers. And how they are (in our opinion) slowly becoming a new type of global bank

Well, these issuers already own their own on/off-ramps. And so they are incentivied to make those on/off-ramp fees 0%

And they already do this (that's why if you on/off-ramp USDC from Coinbase it costs $0 to convert into fiat)

So Xave doesn't have to deal with on/off-ramps directly ourselves, which makes life much easier for us