AMARush Recap: HurricaneSwap
In order to connect Avaxholics with Avalanche-based projects, Avaxholic honorably represents AMA Rush Campaign. This is a big chance for Avaxholics to directly interact with and understand deeper about Avalanche projects, whether top tier projects or newcomers. For the fourth AMA, we’re proud to have HurricaneSwap as our guest.
“Avaxholic — together we BUIDL”. Besides updating news, we’re upgrading more about data analytics — real time data and research about projects to help investors always be confident when investing in the Avalanche Ecosystem.
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Avaxholic: We’re proud to be one of the biggest Avalanche Ecosystem Community. “Avaxholic — together we BUIDL”. Besides updating news, we’re upgrading more about data analytics — real time data and research about projects to help investors always be confident when investing in Avalanche Ecosystem.
Let’s welcome our guest today: Hunter Cheung — CTO of HurricaneSwap.
To start off, can you tell us a little bit about yourself and HurricaneSwap team?
Hunter Cheung | HurricaneSwap: Hi, I’m Hunter from the HurricaneSwap team. I’m the tech leader of the team, and in charge of the development of HurricaneSwap version 2.
Avaxholic: Oh version 2! We’d love to ask more about that later! Can’t wait to jump into the first part to learn more about what you guys have been working on.
1. HurricaneSwap is the first Cross-chain Liquidity DEX in Avalanche. Does the team plan to cooperate and expand to platforms like Celo, Fantom or Polkadot in the future? If YES, can you share your plan?
Hunter Cheung | HurricaneSwap: So if you understand the infrastructure of HurricaneSwap, the LP cross-chain bridge is all about bringing more assets from other chains to the Avalanche chain.
So we will choose the chain which has the most user activity and hottest assets, like the BSC chain. According to our plans, the next step probably will be Ethereum instead of the other chains.
However, in the future, we will let our users decide which chain we should deploy on.
Avaxholic: Great! We’ll make sure to announce to everyone asap when HurricaneSwap bridges to Ethereum. Hope to hear great news from you soon.
2. Hurricane Swap’s using LP-Bridge mechanism (Roke Protocol) as core technology, why does it make the project stand out from the current DeFi projects?
Hunter Cheung | HurricaneSwap: I’m so glad you mentioned Roke Protocol, and yes, it’s our core technology and killing part compared to other DEXs. The whole point about HurricaneSwap is that we are not cross-chaining the actual token itself, we are using LP token to cross-chain the price movement of that asset.
And because we are cross-changing the price movement instead of the token itself, the whole process will be much faster. It takes only 2 to 3 seconds for the price movement to be transferred from the original chain to the target chain, according to our testnet result.
The other amazing advantage of LP-bridge is, we can ensure the security of users’ assets. The assets staked on the BSC chain could only be unstaked and sent back to the original staking address. The whole process works exactly the same as in Uniswap V2 because we just simply forked it to the BSC chain. So no matter what happens, the users’ assets on the BSC chain will be 100% safe.
As for the minted aToken on the Avalanche chain, we use Chainlink’s PoR service to make sure nothing is overminted.
Avaxholic: So I’d say that speed and security are some of the top features that make Roke Protocol hence HurricaneSwap stands out.
Hunter Cheung | HurricaneSwap: Exactly.
Avaxholic: FYI, Hunter Cheung is the first author of Roke Protocol. Such an honor to have you here today.
3. Recently in the market there have been many attacks related to Defi and SECURITY is important with every project and platform. How do you maintain security from attacks and what efforts can you make for the progress of this very good project?
Hunter Cheung | HurricaneSwap: I agree with you, security is always the first rule, especially speaking of DEXs. Like I mentioned in the last question, we have seriously considered security at the very beginning. That’s why we create a new mechanism to make cross-chain transactions.
And as you may know, Ted, the co-founder of Avalanche, is our chief advisor, he is really supportive and gives us lots of help. He also shares some ideas about how to avoid attacks and what we should do in case of any emergency.
Also, you could check the security audit report if you’re interested: https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-HurricaneSwap-v1.0.pdf
Honestly, we could launch our mainnet on October 1st, but we purposefully delay the launch date for around 10 days in order to do a full-scale stress test. We’ve invited some famous white-hat hackers in this industry to do the test.
And if anybody has experiences in the DeFi project testing, feel free to DM this Telegram account: @hunterhaonan. If we think you are eligible to do the stress test, you will be invited and there will be HCT tokens to reward you.
Avaxholic: Wow, the dedication! Everyone, you all have his words. I hope after today’s AMA, there’ll be some Avaxholics grabbing this chance and contributing to develop this potential project.
4. What do you think about the options for trading, will HurricaneSwap add derivatives and margin trading into its exchange? If so, when can we see this plan’s release?
Hunter Cheung | HurricaneSwap: The answer is no for now.
The first step after we safely launch the mainnet is to launch the DAO feature of the HCT token, adding more value to the HCT token and giving our users more choice and freedom in the HurricaneSwap ecosystem.
However, I am an active trader myself, so there is no problem for me or our team to add more derivatives on HurricaneSwap in the future.
Also, as you may know, we are funded by many CEXs, like Huobi, KuCoin, gate.io, MEXC and ZB. Meanwhile we’re working with more exchanges, like Bybit, to see how we can collaborate. So if one day we decide to add more trading functions, we can get lots of help and resources.
Avaxholic: I see. We’d love to see the DAO feature of HCT token as well as partnership announcements from you soon.
5. Your testnet gives me a great experience. Can you explain why you conducted testnet and what is the next big step for your project?
Hunter Cheung | HurricaneSwap: I mean, currently, you can only have a glimpse of what HurricaneSwap Version 2 would look like by using the testnet. Only 30% of all the unique features were released on the previous testnet version, which is HurricaneSwap Version 1. I believe once the HurricaneSwap version 2 is launched, you will be more surprised.
Avaxholic: Wow, that’s intriguing! Can’t wait to see the version 2 launch!
6. Your project receives interest from many investment funds. Can you share more about the use of this capital?
Hunter Cheung | HurricaneSwap: We hired many experienced developers in this industry and hired a strong marketing team as well. We also plan to use a portion of the capital to become the initial liquidity provider on the BSC chain. So our users could have a much better experience on HurricaneSwap once the mainnet is launched.
We will also use this capital to reward people who choose to actively involve in the HurricaneSwap’s ecosystem, like the stress test.
The first goal of HurricaneSwap is to be the №1 DEX in Avalanche. But personally speaking, I think HurricaneSwap could be more than that. So it’s a long term project, we must make sure we can keep it running even if the market gets so bearish someday.
Avaxholic: That’s indeed a very clear allocation to grow HurricaneSwap. Hope to see more HurricaneSwap’s explosions soon.
7. Each project has interesting stories before it is created. So can you tell people about the story, problems, difficulties, that gave you the motivation to build and develop “HurricaneSwap”? Simply put, why do we have this name?
Hunter Cheung | HurricaneSwap: We use “Hurricane” because both “Hurricane” and “Avalanche” are natural disasters. Besides, Hurricane means a storm. We’d like to make it become a true storm in the crypto market. From the perspective of the idea itself, what HurricaneSwap provides has never been done by any other DEX on any network.
I believe professor Emin Gün Sirer once said, all transactions shall migrate from the chain with high fee and high latency to the chain which has low fee and low latency. So I think there is no better chain to build a transaction-based DEX like HurricaneSwap than the Avalanche chain.
And, I mean, we are talking about crypto currency right? Nothing gives the Avalanche’s ecosystem more confidence than the skyrocketed price of AVAX itself.
Avaxholic: That’s a reasonable and interesting explanation! And I believe that’s what we all want.
8. What is the role of your token and project in the entire ecosystem? We have up to 2B $HCT?
Hunter Cheung | HurricaneSwap: There are three practical ways of HCT I can share with you guys right now, and the HCT tokens will have more functions in the future.
First is that some portion of our transaction fees will be used to purchase AVAX to airdrop to HCT holders and HCT pool liquidity providers as well.
Secondly, if you pledge some HCT, you could become a verification node of HurricaneAlliance in the future, even if you only pledge a small amount, you can still get a small share of that verification node’s profits.
Lastly, in the future, we will add DAO feature to the HCT as well, so users could choose which original chain they want us to cross-chain to the Avalanche chain and what assets we should bring from that chain.
Avaxholic: I see. Thanks for your detailed answers. I believe everyone has had a better understanding about HCT token functions. To everyone, if you have any more questions about this, prepare to raise in the live AMA part.
9. Is there any possibility that the HurricaneSwap smart contract got exploited. Therefore, the Verification Node issued a false call which made the system issue more Assets on the Avalanche chain than on the source asset?
Hunter Cheung | HurricaneSwap: No, there is no possibility of HurricaneSwap being exploited. We actually corporate with Chainlink, HurricaneSwap is integrating Chainlink price feeds on Avalanche mainnet. And also they provide us with a unique feature called PoR (Proof of Reserve).
Basically, what PoR does is to check if the aToken was minted on a 1:1 ratio, if not, the whole contract will return and fail. Therefore, the attacker could not issue more assets on the Avalanche chain than the source chain.
You can get more information about this in our announcement: https://hurricaneswap.medium.com/hurricaneswap-is-integrating-chainlink-price-feeds-to-close-cross-chain-price-gaps-proof-of-85cc721641d
Avaxholic: Glad to hear that confirmation! I’m sure users can totally feel reassured about the blazingly fast speed and security of HurricaneSwap after today’s AMA.
10. How do you plan to spread awareness about your project in different countries? In some countries, there is a huge Crypto community like Vietnam, Korea,.. How can they better understand your project?
Hunter Cheung | HurricaneSwap: Yes, Vietnam, Korea, and also Turkey, Indonesia and so on. Since we launched testnet, we could see there are over 100K users from 160+ countries and regions participating in HurricaneSwap. So we realized that it’s not enough to do English promotion only.
Then we started to work with community ambassadors, all of them knew HurricaneSwap at the very beginning and being very supportive. They come from different countries but they know HurricaneSwap pretty well and they could promote HurricaneSwap in their own language to their own people.
In the case of China ambassador, Richy, he helped us to build over 30 Chinese communities in wechat, almost 2,200 Chinese in those groups. He even reached out to some China-based crypto media for us, like BlockBeats, ChainNews. So now many Chinese know HurricaneSwap.
So now we’d like to work with more community ambassadors from different countries and I believe we could make HurricaneSwap amazing.
Avaxholic: So far, I can tell that HurricaneSwap is totally user-centric. I think that’s one of the key points that make HurricaneSwap attractive and will be thriving.
Thanks for your great answers. And those are the top 10 questions we’ve collected from the Google Form. Let’s move to the second and also the last part: live questions from the community. Hunter Cheung will choose the best 5 to answer.
1. Will HurricaneSwap burn every few months?
Hunter Cheung | HurricaneSwap: Straightforward question. Right now we plan to use some portion of the transaction fees to buy back AVAX to reward the HCT holders. In the future, we might plan to use some portion of the platform’s revenue to buy back HCT. It is just like how Binance buys back BNB. However, the rules are not set yet, so you will be informed more in the future.
2. I see that HurricaneSwap has plans to incorporate loans, insurance, asset management in the future. Does that mean that there may be a super app like Wechat or will you work with another Avalanche project that specializes in that sector? Does this indicate that you will integrate Decentralized Finance with Centralized Finance in the future? Giving out microloans to those in areas that are unbanked?
Hunter Cheung | HurricaneSwap: There are indeed some interesting plans for HurricaneSwap in the future, including loan, leveraged trading, and vault in the future. However, the current plan will be to safely launch the HurricaneSwap Version 2. But we are not aiming to build HurricaneSwap to be a super app. All the functions we add in the future will be trading-related and trading-related only.
3. How HurricaneSwap tries to handle and reduce the impermanent losses in LP pools?
Hunter Cheung | HurricaneSwap: We are bringing some assets that have not been traded on Avalanche ever before. According to our closed beta test of HurricaneSwap Version 2, the LP reward should cover the impermanent loss in almost all circumstances in any cases. So LPs should not worry about this at all.
4. Can you briefly explain what “HurricaneAlliance” is? How does it work? What are the benefits of using this kind of mechanism?
Hunter Cheung | HurricaneSwap: It is basically just a simple arbitrage machine built on-chain. It will be used to eliminate the price difference between the two chains and make Avalanche users more willing to trade those cross-chain assets because they won’t have to pay any premium for that.
5. Liquidity should be the first principle of any financial product if it really wants to continue to remain in business. To what extent is Hurricane swap focusing on how to improve liquidity and high capital efficiency, which leads to low slippage for traders, and lower cost to provide liquidity?
Hunter Cheung | HurricaneSwap: In my opinion, the best strategy is the product itself. So when we design HurricaneSwap at the first place, the problem of liquidity and slippage has been considered.
What do users need most when they use a cross-chain swap? More valuable assets.
What do LPs need most when they want to provide liquidity and earn profits? Fewer steps, higher benefits.
All of these needs can be satisfied on HurricaneSwap. For LP providers, when you provide liquidity on HurricaneSwap, you don’t even need an AVAX wallet, just as simple as any non-cross-chain DEX no matter which chain you are using.
And because of the original validator alliance mechanism of HurricaneSwap, we call it HurricaneAlliance, which will continuously narrow the price gap through arbitrage if there is, so the LP you pledge may not even have any impermanent loss (because the number of token pairs on both sides and the pledge time are similar or even the same, therefore, there will be no impermanence loss under the X*Y=K mechanism).
Avaxholic: Great AMA. Thanks Hunter Cheung so much for spending time with us today. With such visions and orientations, I believe HurricaneSwap will launch great products and grow stronger and stronger. Congrats HurricaneSwap on your public sale achievement so far!
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