Thank you for this detailed contribution. As far as I can judge, I'm pleased with Terablock's interest in the Hive Blockchain. As mentioned in the post, your product is already in daily operation in a prominent DApp on Hive, namely Splinterlands. I also view a successful and well-maintained bridge with the main tokens HIVE and HBD as highly valuable (assuming we're talking about the main tokens and not second-layer solutions like Hive Engine, etc.).
However, what surprises me is the need for an upfront grant from the Hive community. Your services, bridges, and swaps are not free, I assume that you'll be charging fees after implementation. Here, I see the risk being shifted onto the community.
As you've demonstrated with Splinterlands, you've been able to generate substantial revenue from fees. That should be motivation enough to include HIVE/HBD as tokens and as part of the blockchain.
Moreover, if this were an open-source protocol that could be maintained by the community post-development, I could understand better. For a closed-source system, this seems a bit too much to spend.
As a final point, I'm curious about how you plan to attract sufficient liquidity. As far as I understand, there's no way for users to participate in the pool. Or am I misunderstanding this? Can an external liquidity provider also participate? This would be very interesting if, by holding your tokens, one could support the protocol and potentially earn a share of the fees.
Hi mangowambo, @mangowambo
Thank you for your insightful and constructive feedback on our TeraBlock CrossDEX proposal for the HIVE blockchain. We appreciate your recognition of our efforts and contributions to the HIVE ecosystem, mainly through our successful integration with Splinterlands.
Your concerns regarding the upfront grant and the nature of our services are valid and deserve clarification.
Upfront Grant Justification
The request for an upfront grant from the HIVE community primarily covers the initial development costs, including technical staffing, security audits, infrastructure setup, and extensive testing. While it's true that our services generate revenue through fees post-implementation, the initial phase of integrating a complex system like CrossDEX requires significant resources. We aim to build a robust and secure standalone platform that benefits the entire HIVE ecosystem, and the grant would enable us to allocate the resources needed for this ambitious project without compromising quality or security.
Open-Source vs Closed-Source Protocol
Given their transparency and the opportunity for community-driven development and maintenance, we understand the community's preference for open-source protocols. Our approach with CrossDEX is to ensure the highest security and efficiency standards, which sometimes necessitates a closed-source system, especially in the early stages. However, we are open to exploring ways to involve the community more directly in the future through specific open-source components or community governance mechanisms.
Liquidity Attraction and Participation
Regarding liquidity, our plan involves creating attractive incentives for liquidity providers to participate in our pools. We aim to integrate mechanisms that allow and encourage external liquidity providers to contribute to the ecosystem. This approach will help ensure a healthy and sustainable liquidity environment, which is crucial for the success of any DeFi platform.
The integration of CrossDEX with HIVE will bring substantial long-term benefits to the ecosystem, including increased liquidity, enhanced user experience, and expanded DeFi capabilities. Our commitment to the HIVE community is unwavering, and we are dedicated to delivering a product that aligns with the community's needs and expectations.
We hope this addresses your concerns and are open to further discussions and suggestions from the community. Your input is invaluable to us, and we are committed to transparency and collaboration throughout this process.
Thank you once again for your engagement and support. 🙏
This is quite alarming to me. The idea that being open source helps guarantee security unless simply the knowledge of how it works is enough to break it, which is not good either way. I think you should at the very least publish a detailed process for how it is secure. It is quite suspect to require this kind of technology and the only safe assumption I can make is that this is 100% centralized and reliant on TeraBlock to operate truthfully. Considering there are decentralized alternatives being worked on already, I'm not sure why the community would support such a proposal and especially the amount this proposal is asking.
Thank you for your response. It feels somewhat rude and disappointing simultaneously. This reply appears entirely AI-generated, and I'm uncertain if you've personally read it. If someone is requesting over 250k USD from the DAO, I would expect them to engage in a real conversation.
How do you plan to address this? Where are the concrete answers? None of my concerns were answered. This is just one instance, and I'm hesitant to engage with Terablock if I'll continue receiving similar AI-generated responses.
Hey @mangowambo
I recognise your worries and appreciate your transparency. Let me elaborate on how artificial intelligence is used in our conversations company wide.
Using AI technologies does not imply that we are not contributing to the discussion. We utilise AI to assist us in organising our ideas and make sure we're concisely addressing every key subject matter. Similar to utilising a digital whiteboard during a brainstorming session, the technology assists us in better organising and presenting our thoughts.
Having said that, I want to reassure you that we carefully consider and approve each communication before sending it. It is our duty to make sure the data we disclose is true and accurately represents our goals and objectives.
Let me clarify the differences between what we've already built and what we're proposing with the CrossDEX on HIVE:
Existing Bridges: Currently, we have six custom-built bridges for SPS & DEC tokens, including BSC <> HIVE, ETH <> HIVE, and BSC <> ETH. We also have the Swidge Protocol for SPS & DEC tokens.
CrossDEX on HIVE
• Expanded Blockchain Support: We plan to add over 10 blockchains, including both EVM and non-EVM chains.
• Fiat Gateway: This will include both on-ramp and off-ramp functionalities.
• Extended Liquidity Pools: Beyond HBD & HIVE, we aim to list various EVM & non-EVM tokens.
• One-Click Swidge: Seamless switching between all supported blockchains.
• Standalone Platform: CrossDEX will have its own dedicated domain, distinct from our current interface.
• Web2 User-Friendly: Account abstraction for easy onboarding, automating complex Web3 processes to present a simple Web2 frontend.
• Diverse Wallet Connectivity: Users will be able to connect various EVM and non-EVM wallets to the DEX.
• Liquidity Staking Provision: A key addition is enabling users to provide liquidity in these pools, which is a major draw for DeFi enthusiasts and can significantly boost user engagement.
Building on Existing Foundations: Our work with Splinterlands and the upcoming GLS lays the groundwork for creating a DEX on HIVE. This move is strategic for attracting liquidity from leading chains and simplifying Web3 onboarding.
In essence, while our existing products have laid a solid foundation, the CrossDEX on HIVE is a significant leap forward, offering broader blockchain integration, enhanced liquidity options, and a more user-friendly experience, especially for those new to Web3.
Hope this clears things up!