Post

AMA Highlights – Vite

By 16-Feb-2020 February 27th, 2020 No Comments

AMA Highlights – Vite

By Daniel Dal Bello, Director.

February 17, 2020 – 7 min read.

On Friday 14 February 2020, we welcomed Richard Yan, COO, and Allen Liu, Engineering Director of Vite into the Hillrise Capital Telegram chat for an AMA.

Vite have created a high-performance decentralized platform utilizing an asynchronous DAG-based architecture. The company have launched several products including a multi-token wallet with zero transaction fees, and a decentralized exchange (‘ViteX’). Vite’s technology provides for fast confirmation times and zero-fees. The Vite Mainnet was launched in September 2019.

In this post, we have compiled key questions and answers from the event.

Daniel Dal Bello
Welcome guys, Richard, could you give us some background into the motivation to found this company?

Richard Yan
Vite Labs was founded to create a blockchain that solves the scalability problem of infrastructure for decentralization. We made engineering choices that delivered a free and fast smart contract platform that now powers ViteX.

@Moony127
Which areas are Vite focusing on at the moment, and which projects or products are you developing to support it?

Allen Liu
We are focusing on VitePlus, a high-performance blockchain specifically for enterprise and government. Vite 2.0, the next generation of the Vite public chain, and of course making ViteX a better DEX [decentralized exchange].

Richard Yan
We are also building Vite 2.0, a Vite-based interoperability solution; and Vite Plus, a Blockchain-as-a-Solution service to government and enterprises.

Daniel Dal Bello
You spoke about ViteFi. How will this work?

Richard Yan
A lends VITE to B. B mines VX by staking VITE to ViteX. B pays back interest denominated in VITE. This works well for A if A doesn’t want exposure to VX, and works for B if B is only interested in collecting VX. By holding VX, one is entitled to sharing proceeds from ViteX. These proceeds including listing fees and trading fees collected by ViteX.

Daniel Dal Bello
It might be useful to clarify the difference between them just for those who don’t know (VITE and VX).

Richard Yan
VITE is the coin for the underlying chain. VX is a token issued on Vite-chain (like an ERC-20) that is the benefit token of the ViteX exchange.

@syrexpro
As there are many new decentralizing exchange as well as many famous old crypto exchanges facing liquidity problems so how ViteX solve this liquidity problems and ensures that users get good liquidity?

Allen Liu
We have made a better economic model – VX. VX is the platform token on ViteX. Holding VX enables you to benefit from 100% of dividends from ViteX fee income. We deliver these dividends on a daily 1% basis of the entire dividend pool. Second, VX must be mined and can only be mined by trading, market-making, and staking VITE on ViteX. At the moment the ROI is very high, varying from 30% to 130% per year. I think this helps make a better liquidity and trading volume on Vite, not simply by volume washing.

Come and try ViteX and earn VX tokens!

@syrexpro
Do ViteX users need to perform KYC to be able to trade on ViteX? This is a feature which made trading on DEXs like IDEX less popular.

Allen Liu
No. KYC is not the purpose. ViteX won’t do KYC, as it is truly a DEX. People can freely trade on ViteX without any authorization but just a VITE address and wallet!

@Moony127
Maybe in the future you will need KYC?

Richard Yan
Our users operate in jurisdictions that do not require KYC. So, no.

@walkeremperor
Are there any limits for withdrawing and trading? What about any concerns of money laundering?

Richard Yan
No limits on withdraw/trades. What you said is outside our scope of control. If you don’t KYC, you can’t control such acts.

Daniel Dal Bello
Is there any need for consideration around legality of ‘dividends’ in the form of the fee income?

Richard Yan
We issue in-app warnings to folks in jurisdictions with tight security laws or a crypto-unfriendly stance.

Daniel Dal Bello
Ok, so it’s more or less left to the user to behave appropriately with respect to that fee distribution?

Richard Yan
Yes, that’s correct.

@toanphamhd
Allen, what are the difficulties you have been faced during the development of Vite? How many products have integrated the protocol? What are some insights gathered from the members?

Allen Liu
Resource limitation. As you know we have created so many products at the moment – Vite public chain, HD Wallets (supporting GRIN), explorer, ViteX, VitePay, VitePlus, DeFi, Vite2.0, and we absolutely will do more in 2020. We are ambitious. We need more talented people working together with us.

@syrexpro
Over the past few months, we have seen several hacks of cryptocurrency exchanges. Do you have security measures to avoid this and convince your customers? Is the ViteX DEX really safe from hacker attacks?

Allen Liu
Very safe. To hack ViteX, they have to hack a public chain, geared with super secure encryption/signature algorithms. We employ Blake2b as hash function, which is famously fast and secure. We employ ED25519 as a signature algorithm, fast and secure too. Maybe the gateway is one point currently. We already have a Vite 2.0 plan to upgrade the gateway in a more secure, decentralized implementation.

Daniel Dal Bello
As an infrastructure project I’m always curious about your plans for growth. How do you attract developers to build on Vite given that you have very strong competition in the likes of Ethereum and others?

Richard Yan
We haven’t been aggressively recruiting developers. Besides a few platforms (Ethereum, and maybe Tron), it’s hard to get developers. And apps developed tend not to attract or retain users anyway. We’re focused on delivering stuff in-house now, things that people will use. Wallet, DEX, payment.

@Isacjohn
How is the current status of blockchain and cryptocurrency in China now? Will it affect Vite’s progress?

Allen Liu
Very promising. Thanks to the latest policy of the government, we are expanding with more and more business in China right now, especially with government and large enterprises.

@Moony127
Can we see LTC, DASH, or Dogecoin on ViteX?

Richard Yan
Sure. We have an open operator model. One can apply to become a DEX operator, list those coins and enjoy the listing fees and a portion of the trading fees as a result.

@fluffhead2
Can you provide any metrics about the number of these applications, or how many operators are ‘in the pipeline’? Does the DEX seem to be growing along a similar trajectory that the team had anticipated?

Richard Yan
We have 11 apps on our mobile wallet, including the DEX. We are working with American city of Syracuse to deliver a tokenized coupon app built on Vite (whitepaper on vite.org). We have four operators now (although some are more active than others). DEX’s growth is healthy.

Daniel Dal Bello
What’s your core revenue model for the business? Are you profitable at the moment, and how much runway do you have from your prior fundraising?

Richard Yan
Core model is making VITE useful, and getting more people to use the coins. We have a healthy runway, at least 18 months. This fluctuates with the value of ETH (we raised in ETH).

@syrexpro
The two biggest obstacles to forming exchanges are easy access and transparent communication, which builds trust. What do ViteX do to overcome these 2 challenges and really provide a quality experience for users?

Richard Yan
Great UX [user experience], low fees, fast transactions, true decentralization. We hit all these points with ViteX.

Daniel Dal Bello
Have you left your funding in ETH? At the moment are there any revenue generating products from Vite?

Richard Yan
There is a fee on ViteX, and that generates a healthy amount of revenue. Much of our funding is in ETH, yes.

Daniel Dal Bello
Why does Vite need its own blockchain instead of using other blockchains like NEO, Ethereum, Binance Chain, etc? What is the technology Viteis using?

Allen Liu
Doing your own chain is always better than using ones provided by others, especially when you have got better technology, better security and can spot a lot to improve based on current public chains. Vite is known as the first public chain of DAG + Turing-complete smart contract. It’s secure, fast, and more importantly, it’s completely free!

Daniel Dal Bello
Is there some token holding/staking requirement to put through ‘free’ transactions?

Allen Liu
Not at all.

Richard Yan
You don’t even need to hold VITE to enjoy free transactions. But to get higher TPS [transactions per second] beyond a baseline, you would need to stake some VITE.

@syrexpro
Vite has created its own DEX, but DEXs historically become illiquid in the long-run, how are you planning on ensuring your DEX is not illiquid in the long-run?

Richard Yan
Centralized exchanges, when not regulated, have all kinds of problems. Users don’t custody their own assets, exchanges impose arbitrary withdrawal freezes, “hacks” – DEXs don’t have these issues. We are hoping that more incidents with CEXs will persuade folks to use DEXs.

Daniel Dal Bello
Good points. I think the usability and familiarity of a ‘centralized’ exchange is too attractive for most at the moment. I think there is definitely a certain level of accountability that users like when trading on a centralized platform. DEXs are in general more difficult and involved to use, so until that gap is closed, DEX will be difficult to build to a comparable level to CEX.

Richard Yan
Agreed. In terms of liquidity, ViteX doesn’t compete at the levels of Binance or Coinbase. However, in terms of UX, it is very much on par. We have a mobile wallet, and trustless transactions settle instantly.

@toanphamhd
What are the benefits and adoption of VITE compared to the Ethereum network?

Richard Yan
Zero fee transactions, fast settlement. Also speedier development time. Ethereum team is moving very slowly at development. Twitter-sphere has been poking fun at Ethereum for not matching Tron in execution

Allen Liu
In addition to Richard’s answer, Ethereum smart contracts have security flaws, which make them vulnerable for attack – this has been proven many times in the past. Thanks to the asynchronous design and better security implementation, Vite’s smart contract doesn’t have these flaws. It’s safer for developers to host their dApps on Vite.

The text in this summary has been edited to correct grammatical errors and for presentation purposes. We thank both Richard and Allen for joining us for this AMA. For more information on Vite, visit https://vite.org/.