Introducing the first S-DEX: Interview with CryptoArena’s CEO
Despite the spectacular collapse the entire cryptocurrency world had to face last month, the popularity of cryptocurrency is far from behind the scenes. While banks may be more cautious while offering this asset to their clients, some of the most vivid representatives of the American and global financial system are planning to launch a technical unit dedicated to the most talked-about technology of our time – blockchain. Once again, this exemplifies the extent of popularity due to the opportunity stored in decentralized assets and their technical backbone, that no price collapse can take away now, really.
New solutions are proliferating on the market, and innovation is flourishing in DeFi as in no other industry. Now, it’s time for the new phenomenon to come into the light – the so-called “Self-Decentralizing Exchange” (or S-DEX, simply), brought on the market by CryptoArena, a pioneer in this field. Aiming to build public benefit global infrastructure, this company developed an approach to what we know as a decentralized exchange: the key to this lies in its “predetermined behavior”, an immutable process of revenue distribution among all platform’s users, by which the company itself transitions into a non-profit. Profitis generated through fee-bearing activity and publicly distributed through game-like points awarded for platform activity, like trading. Through the automatic distribution of incremental shares of revenues, as well as through extra performance rewards and incentives, the users are guaranteed to receive 100% of profit generated on the platform.
First of all, what makes CryptoArena unique?
We call it the 1st “self-decentralizing” exchange. That is a regulated platform that distributes revenue back to its Users, through a game-like points scoring system.
More points = bigger share.
Users generate points based on the value they provide to the network through their fees and activity, and those points determine individual shares at the end of each period.
There are many other ways to get points: referrals, competitive events, through our advanced copy trading, and more, as we are developing a variety of complementary products and services.
But really, the best part is that the proportions distributed increase over time, all the way to 100%, as a consequence of our unique “self-decentralization process”, through which we transition into a fully self-sustained non-profit.
All the way to 100% of revenue? How can you prove it?
Yes, once self-decentralization is completed. It begins at 25% on Launch and grows over time.
We achieve this transformation transparently with our custom consensus protocol PoRD (Proof of Revenue Distribution), which combines probabilistic finality and deterministic proof into proven finality to generate new, valid blocks.
It is, in essence, an accounting & distribution layer 2 protocol tailored to the specific purpose of making sure the correct amount of money goes where it should, when it should.
How do you make money?
Mostly through the time component.
In simple words; our Security Tokens offer a trade-off: greater rewards during the time it takes to get there, in exchange for everyone's predetermined and immutable consensus to achieve the same objective, self-decentralization, at a specific point in time in the future.
But really building a project of this kind, decentralized public benefit infrastructure, gives us the opportunity to develop a whole ecosystem of products, services and entities, all of which contribute to our network’s economy either in whole or in part.
Further, the Company distributes net revenue, after costs, tax and retained earnings, and also benefits from the time difference between when money is generated and when it needs to be paid.
We also have very interesting utility tokens with a ton of potential. Their main use case is as multipliers - kind of like a power up, for the points earned on the platform.
Tell me more about your Copy Trading system. You mentioned it is “Advanced”?
Yes, it is very interesting: it allows anyone to trade like a pro without being one.
There are two user categories, with a few segments each, the “Patrons” are the ones copying and the “Champions” are the traders offering their expertise for a fee.
We call it advanced because it is a non-custodial interaction ruled by an ad-hoc smart contract negotiated and deployed by the two parties involved.
Also attractive is that you don’t need to know how to code; by integrating Zenroom, this smart contract is negotiated and deployed entirely in natural language - plain English text, through our front end.
And very importantly, this solution is embedded within the greater system of revenue distribution, meaning that both categories, Patron & Champions, earn more points through cooperating than they would making the same trades on their own.
Taking the words from your website, you are the “first S-DEX, delivering what a decentralized exchange should be”. Does that mean you do not believe decentralization has not yet been delivered?
That’s right, we believe that “decentralized” should also mean “free of special interests”, whether owners, large miners or others.
Blockchains were born for the stated purpose of replacing cumbersome and expensive intermediaries, and instead what we get is an endless wave of more or less reputable artificial scarcity schemes, only meant to enrich their creators.
But there is often little talk of what they should be replaced with; this is what we aim to introduce: fully owner-less, public benefit infrastructure, available everywhere.
What are the biggest advantages of CryptoArena? What is your plan to stay relevant and competitive?
Our biggest advantages are the distributions and the symbiotic relationship between all the components that make CryptoArena unique.
The platform distributes revenue as incentives and rewards to promote further activity and behaviors that are beneficial to its economy, such as cooperation between Users.
All Users participate by being active in a bunch of different ways, no opt in is required, and there will be no limit to the amounts you can receive through distributions.
CryptoArena distributes incremental proportions of revenue through this system, all the way until 100% is permanently destined to distributions. Nobody can offer more than all of it, and also importantly, established platforms can’t replicate it, due to the fact that the only way of achieving it is by binding it through custom predetermined clauses and processes, and they are already bound to different rules having distributed equity to shareholders.
Your project is the first S-DEX of its kind. What motivated you to follow and implement this idea?
Centralized exchanges are by far the largest players in the industry, and one of the biggest problems. I’m a (former) disgruntled customer aiming to do it better.
From hacks to negligence, from “maintenance” gone wrong to collusion and wash trading - there have been a lot of issues with exchanges through the years.
And that, really, is just scratching the surface of the problem. Blockchains were born for the explicit purpose of disintermediating gatekeeper entities that cripple the economies of the world.
Yet, anyone that wants to access crypto has to go through exchanges, for profit entities, usually operating from tax havens - exactly the kind of middlemen this tech was supposed to get rid of.
What about DEXes like Uniswap? How are you different?
Very different. DEXes settle transactions on-chain and get rid of order books through automated market making protocols. This provides a number of great benefits, but also shortcomings and added costs:
DEXes are truly great for certain things, like being censorship resistant and free of human-imposed barriers, such as bureaucracy or bias. Further, Uni v3 introduces major improvements to the capital efficiency of liquidity providers, and has an overall great offer for LPs.
However, DEXes feature more costs in the form of slippage and gas, and being censorship resistant also means being inundated with bad, scammy projects.
We achieve frictionless, unlimited scalability by settling transactions off-chain and maintaining on-chain data integrity through a network of oracles, and using our unique systems to distribute the proceedings. Further, we aim to become a fully regulated & compliant securities broker, enabling us to offer tokenization & STOs, unlike others.
With the recent announcement of the presale of your native token - CATS, could you please elaborate on its use cases?
CATS stands for CryptoArena Tokens, they are the ERC20 utility tokens of our ecosystem and can be used in several different ways, but the main case is surely as “multipliers” to the glory points earned by trading on CryptoArena.
These points are automatically used by our systems, at the end of each period, to determine individual shares of platform profit distributions. It’s kind of like how a temporary “power up” works in a videogame - you use it and make more points for a period of time.
This is already a lasting utility of its own, due to the fact that the desirability of the asset is bound to the revenue, generated from all sources, being distributed by the platform. The more money goes around, the more a multiplier to getting a bigger slice of the pie becomes worth, and the distributions of CryptoArena increase both as a direct consequence of business success, and of time going forward.
Other uses cases are plenty interesting too:
- Discount access to competitive events (e.g. trading tournaments)
- VIP access to pre-IPO (but post-audit) security token sale
- Staking for weekly rewards & governance privileges.
- Stake 50k+ to get rights to an NFT Arena Node!
Tell us more about your future plans at CryptoArena - and how are you planning to bring your vision into practice?
We are a garage startup and grassroots community sprouting independently through the strength of our ideas. We bootstrapped with the support of our people and have/are building complementary side products modularly to create early revenue streams to sustain our growth as we negotiate institutional support.
These early products include:
Gas Tracker: a mobile app (Android. Apple soon) to track the ever-unpredictable cost of gas, and to set customizable notifications, so that you never miss low gas again. Free w/ ads or paid pro version. Holding $CATS unlocks the pro version for free while you maintain the minimum balance.
NFT Impact: a unique mass or targeted marketing tool capable of delivering millions of NFTs for negligible costs while targeting specific attributes. Turns ads & newsletters from a cost into a revenue stream by creating a resale market!
NFT Arena: a dapp-powered Trading Card Game using NFTs as game assets. Play for fun or to win NFTs from your opponents! Use any NFT of yours, or buy them from their marketplace.
Our current focus is to consolidate our position, grow our audience, hire more staff and to establish solid and lasting relationships with the best projects in the industry.