16th November 2022 / 09:00-11:00AM (UTC-5) 

ATTENDEES

Council: Elation Studios, PG Bao, Ryan, Rebecca Zhu, Song Sjun, Infi, Sash, Jingyu, M&N

Secretariat: Cassie, Greg

ABSENTEES

Strawberry Council, Phantz

AGENDA

  1. Bridging protocol Axelar
  2. Update for all active proposals
  3. Minutes review

REPORTS

1) Axelar – Ryan

  • They are a cross-chain bridge which is pretty well-known and respected in the bridging space.
  • A terms sheet has been shared.
  • https://axelar.network/ is the infrastructure, https://satellite.money/ is the bridge.
  • They need 10 projects using their assets as per the initial terms – we don’t have that but negotiations can take place.
  • ShadowTokens is not profitable, it’s not very stable either. But it is exploit free. And we are relying on a multisig.
  • They are looking for incentives from the ecosystem projects and/or foundation. There doesn’t appear to be a deployment fee.

Comments

Sash – The connection with Axelar actually came from e-money. How difficult would it be to move all the liquidity from Axelar assets?

Existing liquidity would need to move all off-chain before returning using Axelar or another tool to return.

Sash – Is there a risk the liquidity leaves and never comes back.

The current situation is that the liquidity is so thin that users can get trapped by the minimum values moveable and the fees for transfers.

Song – It’s a good thing to have multiple bridges. What is the cost of adding a new bridge? Liquidity pools, deployment, etc. He will look into the terms sheet.

M&N – Good connection to Cosmos and Mb has used the bridge and it’s a good protocol.

Song Sjun – ShadowTokens is using the lowest cost mechanism. Axelar would be generating another swathe of assets. The fragmentation risk for confusing the user-base is significant.

Circle are actually looking to create an “issuance chain” for USDC with Axelar: https://www.circle.com/blog/composable-usdc-seamless-multichain-ux-by-axelar 

A snippet from the article above:

Song – Are they issuing a version of USDC?

Yes it would be the Axelar version of USDC but native to all the chains that Axelar supports.

Sash – it’s also a messaging protocol and allows for cross-chain calls so dApps can interact cross-chain.

Yes this is true and a further strength.

Will e-money still want to integrate Sash? Using their stablecoin offering.

DR – It might be that having Axelar, ShadowTokens, Elk AND Emoney would be spreading the liquidity too thin.

Sash – USDC seems to be the leader for stablecoins right now. E-money stable offerings gives an option for preference for users.

The flexibility is lacking right now with the liquidity issue. But making USDC the main stable might be advisable. E-money would be a separate set of services and we’d need to hear the costs, timeline and possibilities for their offering.

Would Song be happy to adjust the current ST bridge to improve it.

Song – happy to take suggestions on board to improve the bridging.

Sash – making the fee a fixed amount not a percentage of the total sent would solve the problems currently existing.

2) Proposal tracking update

  • Tracking document shared with the council.
  • Cassie ran through the recorded progress to ensure it can be understood.
  • The document in question contains all the details that Cassie outlined today.

Comments

Sash – Emoney delivery has been disappointing, they decided to universally not build a bridge this year and partnered with Axelar for security reasons, Shalini then introduced myself and Elavation to the team (Ryan gave an update on where this is). The general thought is this would be the fix for this proposal.

3) Chainge – Sash

  • Community question about what is happening with Chainge app.

Comments

Sash – Some queries have come up about the progress with Chainge and ESC.

Ryan – Essentials are looking to integrate Chainge API for swaps but there is a liquidity pool issue. It seems like they need LP on Fusion chain for ELA-USDT. This does not exist.

4) Minutes Review from last meeting

Completed and sent for publishing.

AOB

Kairon Labs and market making considering the recent events in crypto – Elation

Elation gave an update that they are working closely with Kairon to manage counterparty party risk versus exchanges in light of recent FTX events. This level of engagement has been in place since day one, with heightened monitoring around relevant news cycles/rumors.

The Council had questions around how MM liquidity is held in custody, moved between exchanges, and how the decision making process works. Some takeaways regarding whether multi-sig wallets can be employed in the rare event that MM liquidity is temporarily moved off/between exchanges; this is being followed up on.

ACTION ITEMS

  1.  Review minutes