Plasm and Reef Finance — AMA RECAP
On Nov 12, we were pleased to have the CEO of Plasm, Sota Watanabe, along with our CEO, Denko Mancheski join us for an AMA with our community.
Reef Finance and Plasm work together for the development and enhancement of Reef, and bring DeFi to the mainstream.
Two months back, Reef entered into a collaboration with Plasm to deploy quality DeFi products in the Polkadot ecosystem.
Plasm makes DeFi transactions cheaper and faster through its unique Layer2 technology and on August 21, became the first Parachain in one of the Polkadot Parachain test networks. Stake Technologies, the creators of Plasm, boasts one of the top technical teams in Asia.
Admin: Hello Community!
We have Sota Watanabe, CEO of Plasm & our CEO Denko Mancheski for the joint AMA session.
Sota Watanabe: Hello
Thank you for having me today.
Denko Mancheski: Hi Sota! Happy to have you here.
Admin: Hello, Denko and Sota
Sota: Hello, Denko
Q — Admin: We are ready! Let’s start our AMA with the first question.
(to Soto Watanabe) Could you give us a short introduction about yourself, what you did before starting your project, how you got into Crypto, and a little bit about yourself?
A — Sota Watanabe: Thank you all for having me today!
I am Sota Watanabe, the founder of Plasm Network. Before establishing the company, I used to work at Chronicled, a blockchain company in San Francisco. After coming back to Japan, I became a blockchain researcher and started Plasm Network with CTO. He is selected one of the 16 best engineers by the government and he was making own blockchain from scratch at that time. We have started making Plasm Network since 2019 May. Plasm was a pallet but now we are building a smart contract platform on Polkadot supporting cutting edge layer2 solution. Plasm Network is faster, cheaper and Ethereum compatible smart contract platform. And now I am also a part of Trusted Web (Web3.0) council task force member led by Japanese government now.
Glad to be a part of this community.
Q — Admin: Nice. I’m personally a big fan of Layer 2 solutions. Would love to know more about Plasm.
(to Sota Watanabe) What exactly is Plasm? Could you please give a brief introduction to the project?
A — Sota Watanabe: Cool! In one sentence, Plasm Network is a faster, cheaper and Ethereum compatible smart contract platform on Polkadot supporting cutting edge layer 2 solutions. Polkadot Relaychain doesn’t support smart contract by design so all people need at least one smart contract platform and when it comes to smart contracts, scalability is the top issue we have to solve.
You can check our builders deck from here and please join our Telegram if you are interested — https://t.me/plasmofficial
Q — Admin: Absolutely, I would love to. Thanks for the brief introduction :)
Let’s move onto next question!
(to Denko Mancheski and Sota Watanabe) What are the major milestones Plasm & Reef Finance have achieved so far? What is expected to come in future?
Sota Watanabe: We have been developing our platform for a while but Substrate and our platform needs to be more mature. Right now, we are using our testnet and try to deploy solidity smart contracts on our platform!
Denko Mancheski: Reef’s goal is to deploy the infrastructure to as many ecosystems as possible. Plasm is the first parachain, and they have a stable EVM pallet as well as support to use native Ethereum wallets. Also, there are great synergies between the teams!
Sota Watanabe: Yeah, we support both EVM and WASM. So, you don’t need to change solidity contracts.
And we are trying to make Rollups. If ZK Rollup is ready, we will support Zinc VM made by Matter Lab
Hope we can get the 7th grant!
Denko Mancheski: Impressive
Sota Watanabe: Once we are ready to support Reef, we are eager to support the team and project!
Q — Admin: (to Denko Mancheski and Sato Watanabe) Please explain the partnership between Reef Finance & Plasm. How is this partnership beneficial for both projects?
Sota Watanabe: If you want to make a DApp on Polkadot, you have 2 ways, making a Parachain from scratch or making a DApp on a Parachain. I think the former one takes a lot of time and Parachain slot is limited. So only selected project can connect to Polkadot. We are building a Parachain platform so that Reef can focus just on application instead of focusing both.
Denko Mancheski: Besides the reasons I mentioned in the previous answer (support for solidity smart contracts and use of native ethereum wallets), on Plasm the fees are way lower so we can finally compose multiple financial primitives in which the retail investors can actually participate since it doesn’t cost 10% of their investment size.
Also, the scalability is next level.
Sota Watanabe: Yeah, we plan to make it fastest and cheapest platform for application builder!
Fastest means TPS and cheapest means transaction cost.
Admin: Whoa! That’s pretty amazing! There’s a BIG usecase in this partnership. Eagerly waiting to see how future developments of both projects
(to Denko Mancheski) According to the official announcement, “When Reef uses Plasm, the project will be able to use the Optimistic Rollups, a subset of OVM Technology”. Could you throw more light on OVM Technology and explain to our community members how this actually works?
Sota Watanabe: Of course. OVM stands for Optimistic Virtual Machine. This is a unification for all layer 2 protocols. This mean that you can build any layer 2 solutions on OVM such as Rollups and Plasm. OVM is a subset of Optimistic Virtual Machine. In addition to that, we will make ZK Rollups as well.
Denko Mancheski: Not to mention that OVM smart contracts scale with a few lines of code and no changes to your workflow which is really great.
Sota Watanabe: Rollups might be a bit tough to understand. To make it short, Rollup is the first layer 2 solution for smart contracts in addition to transfers.
Denko Mancheski: While the security is still inherited by the main consensus layer.
Sota Watanabe: Exactly!
Admin: Interesting! I will definitely read more about OVM. If you have any documentation, feel free to share it with our community.
Sota Watanabe: Cool!
Admin: (to Denko Mancheski and Sota Watanabe) Final Question. What are your future plans for this partnership?
Sota Watanabe: We aim to be one of the first Polkadot Parachains. Once we became a Parachain, Reed can make an interoperable smart co tracts easily! To make it happen, we need to make Reef on our testnet first! Our testnet became the first Polkadot testnet Parachain!
Denko Mancheski: Our goal is besides deploying the contracts which are used to aggregate different defi financial instruments, to actually deploy few financial primitives ourselves on Plasm and attract Ethereum users who are already used to those mechanics to start participating and see the improvement of the speed/scalability. Additionally, this opens the door for existing DeFi users to join the polkadot ecosystem with ease.
Admin: Great! Thanks to both of you for answering questions briefly!
It’s time for Community’s Questions. I’m opening the chat, be ready.
Q — Telegram User @smithshanny: What are your most important next priorities until the end of 2020? Are the fundamental tools sufficient to achieve these goals?
A — Sota Watanabe: Ethereum compatibility!
Q — Telegram User @kintrzis: All platform that use a SWAP mechanism, must affront 2 issues, the low Liquidity (that cause Big spreads between orders) and Slippages, so can you tell me how you will solve the intrinsic limitations?
A — Denko Mancheski: The liquidity aggregator splits your orders and sends them to multiple DEXs. Additionally, by plugging CEX liquidity (Q2 2020), we will have access to the exchanges’ liquidity through prime brokerages and plugins such as Binance Brokerage. This will allow you to get into the positions with the least possible slippage
Q — Telegram User @JesusFre1tes: What will be the quality products that the partnership between Reef and Plasm will bring to the ecosystem of Polkadot? As PLASM is part of the Substrate Builder Program and the Substrate Delivery Partner Program, how will this help the joint goals of the platforms?
A — Denko Mancheski: We have a lot of knowledge on Substrate and Reef doesn’t need to catch up all Substrate updates since we are doing so.
Q — Telegram User @zzcuna: Over the past months we have seen many yield farming projects that are just clones or copies with a few changes to Yam or sushiswap. What is your plan to attract liquidity from the mainstream yield farms that have launched to date?
A — Denko Mancheski: We are launching pre-TGE bootstrap program as well as after TGE. We will actually allow basketizing existing positions which will allow REEF token to be one of a kind to have a projected price. What exactly projected price means will be announced on our blog.
Q — Telegram User @Gbasdfg: Since Plasm is compatible smart contract platform on Polkadot. Can You serve smart contract to the ethereum and polkadot networks at same time?
A — Denko Mancheski: Yes
Q — Telegram User @kuhlmangregoria: Asides professional traders, can crypto noobs make use of Plasm Network? How easy is it for those with little experience of blockchain technology?
A — Sota Watanabe: Our main clients are application builders but by making applications on Plasm, the price of PLM token will be increasing and we will see a lot of trading applications!
Q — Telegram User @chaiuzbui: How will you prevent “copies” of tokens from being included for the purpose of defrauding users? Do you have a system to remove these tokens from the pool?
A — Denko Mancheski: We have mechanisms which are filtering out a lot of DeFi instruments. They have to meet certain criteria in order to become part of the analytics engine.
Q — Telegram User @britneymorisset: Could you please elaborate more about your tokenomics? What’s the total supply and what kind of plans do you have regarding the token unlocks in the future?
A — Denko Mancheski: You can check Reef’s tokenomics here: https://reef.finance/tokenomics
Q — Telegram User @zzcuna: Big problem for a lot of Defi projects seems to be that when farming starts, the price goes down because people unload to put liquidity into the farm. Will there be an incentive to hold and not just farm and dump?
A — Denko Mancheski: Yeah, we have lockup periods.
Q — Telegram User @handgrace: Many projects DeFi list for now, is Plasm Network interested in DeFi ecosystem? And how does DeFi compete with other projects?
A — Sota Watanabe: Yes. First, we will support as many DeFi projects as possible. Second, we will make DeFi application on Plasm! Uniswap will use Optimistic Rollups. Curve is using ZK ROLLUPS. We will have both! And make a DEX.
Q — Telegram User @asalas95: One of the reasons Reef expressed that motivated them to work with Plasma was that it makes DeFi transactions cheaper and faster. Could you give us some numbers on approximately how much users would save between each transaction on your platform after the partnership between the two projects is consolidated?
A — Denko Mancheski: Let’s put it this way — you will not have to worry about gas costs ever again. The amount will be so small that you won’t care.
Q — Telegram User @benedictmedhurs: When organizing I believe that Plasm Network wants to share a lot of project information with the community. How can our community help Plasm Network? What role can communities play in the Plasm Network ecosystem?
A — Denko Mancheski: Please build applications on Plasm Network!
Q — Telegram User @chaiuzbui: Do you have any reward programme event ongoing or upcoming, please give us details & do you have any ambassador program also? Many community organize event for attract more people. It is also main thing for attract investors.
A — Denko Mancheski: We are preparing both ambassador programs as well as bounty programs.
Admin: I think all best questions have been answered! Thank you so much Sota Watanabe & Denko Mancheski for this great AMA session. Those who would like to learn more about Plasm can join their Telegram Community https://t.me/plasmofficial
Denko Mancheski: Thanks everyone!
We would like to thank everyone for their participation in our AMA. Please stay tuned for more such AMAs.