Q: So first, let’s get to know you and a bit about your project, can you tell us how you got into crypto and where the idea came from for Algodex and tell us about your core team members and their background?
A: I originally got into crypto in 2011 when I bought some Bitcoin, and dabbled in it off and on since then. My background is that I’m a professional software engineer, and I left my day-job last year in 2021 to start Algodex, after I saw opportunity in the Algorand blockchain, which I thoroughly researched and could tell it’s the leading proof-of-stake blockchain on a technical level. My partner, Alykhan, is an experienced entrepreneur whose background has been in creating monitoring software for the oil & gas industry. My wife, Ramya, helps out on the business side and has experience in software sales and customer support. We currently have a diverse team of 11 full-time staff (including ourselves), mainly engineers, who are located in 5 countries.
Q: Could you please tell us the strategy to attract new users, motivation and benefits for traders & investors to hold $ALGX token for long-term? We’d love to hear more about the utility of the $ALGX token
A: Our biggest priority right now is getting more usage on Algodex. To do this, we have to make it easier to trade and have more liquidity and thoroughly filled order books. We are actively working on trading bots that can access the platform and add liquidity to it. After that, it will be a great alternative to the AMM model, as limit orders give more nuance over trading and can facilitate large amounts of money to be traded without affecting the price, which is useful for thinly traded assets. We will also continually market the platform to get more users, and the ALGX token helps towards this. The token will eventually give rewards from trading fees on the platform and serve as a form of governance.
Q: The Algodex platform will also become an aggregator such that it selects the best price from a number of other DEX’s. We also may integrate the ALGX token into Algodex Mailbox, our other DApp, but need to figure out a good way to do it. The token will also serve as a governance token eventually.
A: We have also begun on a stablecoin platform, where users can create, redeem, or trade our own stablecoins on the Algorand blockchain and will leverage Algodex’s technology.
Q: Can you briefly shed some light on the Algodex Mailbox. Also, what happens to tokens sent to recipients who have not opted-in?
A: When recipients have not opted-in, Algodex Mailbox sends the tokens into a smart contract that holds them in escrow. The recipients can later access Mailbox and redeem them. This makes it easier for the distributor to send out tokens since they don’t have to wait for the recipients to opt-in before sending. Mailbox will prove to be a very useful DApp as it solves the dual problem of bulk token distribution and opt-in coordination.
Q: From your whitepaper, to place trades, even sell orders, you will need to maintain a minimum balance of algos in your wallet at all times due to the Algorand protocol. Does UI currently warn you of this? Also, What is the minimum ALGOs you need to keep in your wallet?
A: Yes, the UI shows you a minimum balance where you are placing an order, and will not let you trade if your balance falls below it. The minimum amount of ALGOs varies depending on how many other assets and smart contracts your account has opted into, and the minimum balance goes up with increasing numbers of those.
Q: Can you briefly describe the order book mechanism for limit orders?
A: The order book mechanism is very similar to a centralized exchange – however, our technology is decentralized. Basically, when you place an order, it first tries to match it and execute to an existing limit order. If none exist in your price range, it will instead create a new order that will exist on the order book. On the blockchain, it effectively creates a smart contract escrow and puts your tokens into it. Other people can then execute against it at the price of your choosing and trade.
Q: Can you tell us how much you charge per transaction currently? Also, can you give us a breakdown of how the allocation or usage of the trading fees will be like once you launch your second Mainnet of Algodex or when trading fees are implemented?
A: The transactions are currently free except for some negligible blockchain network fees, which are about 0.004 algos per transaction. As mentioned previously, the trading fees will go into reward pools that the people keeping liquidity on the platform will be entitled to. A portion of all rewards will go to the ALGX holders who keep liquidity on the platform (a form of staking).
Q: Can you enlighten us on the purpose of the Algodex token, ALGX to holders and its relevance to your ecosystem?
A: The token rewards people who keep liquidity on the platform (via orders), which will first be done through airdrops, and then later by integrating it into the smart contracts. There will eventually be rewards pools for each trading pair, which trading fees will go into, and the holders of the token will get to collect rewards from these pools. It will also serve as a governance token and allow voting over changes in the platform.
Q: Can you enlighten us on the airdrops and rewards your community will receive in terms of percentage after 12 months, 24 months, 36 months and 48 months in that order?
A: We have yet to calculate exactly how the rewards and airdrops distribution will be calculated and vested. However, it is based on the quality, amount, and time that you have kept liquidity on the platform as a market maker. We will use a blockchain indexer to automatically rate the quality of liquidity of every wallet that used the platform, and then from this calculate the rewards that each wallet is entitled to. We will also create a webpage that has an airdrop signup and shows your vesting schedule.
Q: Can you tell us a little bit about your tokenomics and also in the next 5 years, where do you envision Algodex?
A: Our tokenomics basically has a 2 year vesting schedule for investors, and the team’s share is first vested after 24 months. We will also give rewards tokens to the users of the platform, first via airdrops, but carefully calculated such that it incentivizes usage without harming the token price. In the next 5 years, Algodex will become a cornerstone of the Algorand ecosystem. It will be a trading platform that has both limit order and AMM integration, onramps, our own stablecoins, 1-click trading, and other utility apps (Algodex Mailbox is our first). It will also be integrated into other trading apps such as Defly via our SDK. Algodex is also one of the only DEX’s that allows for NFT trading, and we will make this feature more prominent.
Q: Is there any bullish information that hasn’t yet been made public that you can share with our community for ‘exclusive’ news before we wrap up and offer the floor to the audience?
A: Next week, we aim to release the beta release of our trading SDK, and in a few weeks hope to have the market maker bot fully working on Mainnet. This will allow lots of liquidity to go onto the platform. We are also actively working on our stablecoin platform which is a new application that hasn’t been announced or shown yet to the community. This will eventually be a platform to create new fiat-backed stablecoins on the Algorand blockchain in multiple foreign currencies via onramps, and allow trading between them via Algodex.
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