Projects
![]()
No projects found
Investors
New
DAO Treasuries
DATs
Lend / Borrow APRs
Chains
Categories
Spaces
Decentralized Market Making on SUI with Lotus Finance
Recorded: July 4, 2025 Duration: 1:12:21Space Recording
Short Summary
Lotus Finance is launching as a decentralized market maker on Sui, offering innovative yield strategies and aligning user interests with a performance fee model. The platform is currently in a liquidity bootstrap phase, collaborating with DeepBook to enhance trading efficiency.
Full Transcription
Thank you. you
that's one two three can you hear me yeah sure Jim coffee Jim Billy Jim everyone Should we resume the Hippo? Just add a new now or two. One minute.
We can wait. Just maybe a minute or two.
Alright. Hello, Hippo.
I think we're just waiting around a couple minutes just to let people file in.
We'll start soon. Thank you. Thank you. Thank you. Okay guys, I think we're good to go.
Jim everybody, Jim Hippo.
Thank you all for joining us.
Can you do the mic check again, Hippo?
Coffee, Mike, clear?
Yeah, all clear.
Hi, uh, oh, I think, yeah, Hippo was requesting.
Oh, okay.
Yeah, yeah, okay.
Okay, mic check, Hippo.
We'll start. Right now. Yeah. Yeah. Okay. Okay. My check. Oh, we'll start right now. Hey, hey guys. Nice to meet you here. Yeah. Jim hippo and thanks everybody for each trip. Yeah, Jim.
GM. Thanks everyone for joining us and today we're focusing on Lotus and how the Yield Vault,
build on Sui. We will dive into their strategies and securities and risks,
the security measures they take for what they're building on CIVI and what this could mean for users and investors as well.
So right away, we would like to know more about Lotus Finance and the story behind it.
You could share a bit about the team behind the project as well.
We would love to, you know, get to know more.
Hippo?
Hippo, can you hear me? Wait oh he's a listener again see oh i'm not sure why he's getting i think it might be a bug with x because he's a speaker here like i can see him as a speaker
but really yeah i can see him as a speaker, but really yeah, I can see him as a listener
Yeah, let's say let's give a hippo a few minutes to sort out
technical issues sometimes you have to disconnect and connect
We yeah, we have those issues once in a while
Yeah, sure. msgm everybody hopefully everybody's doing well While we wait for the coffee, while we wait for HIPAA to rejoin, let's go over what we have seen for Lotus Finance from our end.
We're excited.
It's, I think, the first decentralized market maker on Deepak and Sui.
I think that's a really big deal for Sui and
on Solana something similar doesn't really exist.
Like Radium for it to work you need to have really big liquidity
and on Sui basically they're able to do things that are not technically possible and so on,
because of the number of accounts you get, you get handled per transaction.
So I'm really looking forward to hearing more on the technical side where they are.
Yeah, absolutely.
Yeah, and here he is.
Welcome back, Hippo.
Hello.
Hello.
All right, seems like we hear you.
Jam, Jam again.
Jam, Hippo again. I think this happened sometimes with X. So
Hippo we're excited about what Lotus is building on Sui and we would like to
learn more about what you're building and the idea behind what brought about the project
and the people behind it. Just a little bit of what you can share about the team and the
project itself. Hippo can you hear me?
I can hear you absolutely.
Okay.
And I do see Hippo as a speaker so.
Yeah sure.
Just so we can debug this on the fly,
Hippo, are you using a phone
or are you on a desktop? Because a desktop is not as reliable.
If you are on a desktop,
mobile devices
usually work a little bit more reliably.
Oh, yeah, he's got bumped down as a listener again
hopefully we will be able to fix these uh these issues Anyway, thanks for sticking around, everybody.
No, this is not the start we want, obviously, but but move on Thank you. so for those who are not
yeah just just wanted to
for those who are not part of
Grape or not on grape discord
Feel free to you know join great discord and it could be eligible for some vine which is
our incentive for active participation during calls like this.
And we often have DAO calls on Tuesdays and on Sundays.
So on Sundays, we have that at 3 p.m. UTC.
And on Tuesdays, at around 6 p.m. UTC. So what we do is, you know,
aside how to DAO, we also cover ecosystem updates,
not limiting ourselves to just Solana.
Great projects, great stuff have been built around ecosystems
like Lotus that we have today.
So I think it's amazing to be part of a platform where you learn a lot.
And so that's it guys for those who are not on the great discord.
Hey guys, you hear me now?
Loud and clear.
Wow. Sorry, there's a now? Loud and clear. Wow.
Sorry, there's a hiccup for the network, maybe.
And yeah, I heard about your question.
And I'm really glad to be invited here and share a little bit about what we're building on Lotus Finance and on SWE.
on Lotus Finance and on Sui.
And, you know, Lotus Finance is designed to do the market making for globdex,
that's other bookdex.
And with the emergence of the high-performance blockchain,
like Solana and Sui and other blockchains,
it made it possible to build other bookdex on-chain
that was previously not feasible on traditional blockchains.
But the problem comes that for other book decks,
it is not that easy to do market making on it.
So the existing decks like DeepBook and Sui,
and there are a lot of other club decks on Solana these days,
started from CRM, and now it's OpenBook. are a lot of other club decks on Solana these days.
It started from CRM, and now it's open book.
And those decks, they have to hire
some traditional market makers or centralized market
makers to run strategies and high frequency trading
strategies on it.
So that is not a DeFi way to do it and the community can't get involved into this
market making uh procedure you know for uniswap in some other very traditional amm the key to success
is uh that they involve the community that they provide an opportunity for the community to
provide liquidity as well as earn the profit from
doing so.
So Lotus Finance is going to fill in that gap that Clubdex is not born with an LP token.
So Lotus Finance is like the LP token to debug as a native LP token for Uniswap.
the book as a native equity token for a Uniswap.
And more than that, we are building a more general trading layer
that will enable a lot of trading algorithms and strategies
to be executed on ClubDix,
including some DCA and some momentum-based strategies and some other quantitative strategies.
So basically, we are building a layer upon Clubdex to do market making and strategy
and enables the quantitative trading strategies in high-frequency market making on it.
trading strategies in high-prequency market making on it.
That's pretty interesting.
And talking about strategies,
help us understand what makes Lotus different.
Like whether you're using smart strategies
such as arbitrage or helping traders go through
through market making,
how that could actually lead to better returns compared to other platforms.
So what kind of strategies are we talking about that Lotus makes use of
to actually also grow liquidity in their yield vaults on Sui?
And how does this stack up against other DeFi platforms?
Like, how do you generate this high APIs as well?
Because users will be interested in that.
So how do you do this on your Sui club decks?
Cool, cool.
That's a good question.
And for strategies, there's a lot of strategies out there.
And for some traditional AMM, we know there is an augmentation to the LP procedure that we can use a centralized liquidity.
That is called a CLMM here and we can just narrow down our liquidity provision range the covering price range within a limited
limited span and that is the strategy we call in traditional AMM literature but for
other book decks things are a lot more different That you can do strategies with more degrees of freedom.
You can introduce your temporal variable into it.
That means you can buy low, sell high.
You can use more active strategies.
You can place buy orders lower, and you can place sell orders higher.
That is called a spread on other book literature
and that this will make make the majority of our profit and other than that we are also having some
some traditional ways of getting profit is that getting rebate from placing maker
orders and that is pretty much the same with the traditional AMM and the third
part of profit comes from the incentives we are now getting a special incentive
scheme from a SWE ecosystem that will boost the adoption of club decks
and liquidity provisioning in club decks.
And more than that, we are going to enable more strategies
on using this uniform trading layer
that we can enable momentum strategies
that will get you a much more higher yield when it comes to a trending market.
And we have fixed grid strategy that helps you buy low, sell high around a fixed range.
And that will get you a very good yield in a sideways market.
get you a very good yield in a sideways market.
And there will also be some DCA-based strategies
that help you buy spot as time goes.
And that will be useful in the long term.
Very cool.
Hey, Hapok, GM. So I have a few questions. So the strategy vary, and also the
strategy APR varies greatly. I noticed, like, for example, SWE USD pool has like a 85 strategy apr and then there's a sui deep it's like two percent or
something like that can you like just like um is there a breakdown and in terms of what's the
difference what kind of strategies like do you choose like how do you choose the strategies how
how well you know how do you uh adopt the apr for each pool, etc., etc.?
Cool, cool.
For example, let's take the SWE USDC pair.
And I think that there are a lot of, I think,
like three or four valves or pool in that pair.
And each of the pool has a different parameter,
which means they cover different price range
and they have different density in their orders
that in our literature,
it is a number of levels for a fixed grade strategy.
So they are just suitable for different market conditions.
For example, when the volatility is small and we have seen some very high frequency price fluctuations.
And in that case, we should choose a tighter range and a larger number of grids but when the price quality is high
you know when sometimes the uh sweet price will go up and down like 10 or even 15 a day
we're gonna choose a much higher uh much larger range and much fewer number of grids.
So that will be different for each of the pools here.
And for some of the pools, when they choose a parameter
that suits the current market situation,
you will see the APR will boost a lot more in that situation.
For example, the ones you see, they have a strategy
like the buy low, sell high strategy
that will contribute to the total profit in like 40% APR,
while the incentive APR takes up the rest of the 30% APR.
takes up the rest of the 30% APR.
You can click into the valves or the pools here for more details,
and there's a breakdown in the composition of the total APR
in green text if you visit our website.
Yeah, I noticed that, and that's where I saw the performance here.
Is there, so for example, like in the, like I haven't personally used Lotus Finance yet.
So when you deposit, do you select a strategy?
Like which strategy and then there's a corresponding APR or does like your bots or whatever, you
go into this pool and it will select the strategy based off of the marketing conditions.
Like how does it work?
Well, it is really hard for a retail user to get the perfect parameter for current
marketing condition.
So what we, what our users do is they will choose the highest highest return vaults from the pairs
they want to choose for example they hold their believer of uh sweet token itself they will hold
sweet token so they will choose uh to provide liquidity for a sweet token itself so uh in that
case they just focus on the sweet usdc pairs and they will choose the highest APR these days the highest APR vaults will change during the market condition
because for example for today I think the the larger the larger price range
walls will have a higher APR but for some very normal days, there's not much volatility.
The other vault might pump out and they can have a much higher APR within the last 24
hours.
So the users can choose between those vaults and they can just flexibly deposit into the
vaults and withdraw from them.
And there's an early withdrawal fee
if you, that makes sure you will deposit
and stay for more than one day before you withdraw it.
So yeah, basically user will choose from different vaults
and different set of parameters.
And we just recently released our creating vaults and different sets of parameters and uh we can we just recently released our
creating vaults uh feature that you can just uh if you are a pro in trading if you know a lot more
things in quantitative trading you can you'll feel free to just create your vault in the farms tab
and you can choose a pair and you can tweak your own parameters
and you can also update your parameters as time goes.
So yeah, that's basically what's happening.
Oh, fair enough.
And do these strategies and whatnot,
do they do anything to protect yourself
in terms of like impermanent loss
or kind of getting out of range?
Does the pools automatically get you back into range
or you have to like manually adjust those,
you know, once you're in it?
Yeah, that's a good question.
Quantitatively speaking,
the only way you will have a realized asset loss
is due to the rebalancing procedure.
It's basically like a CLMM that you have an upper range and lower range to provide liquidity.
So when the price goes below your lower range,
and you will hold 100% position in that token itself.
hundred percent position in that token itself and when the price goes down again your total asset
will will will go will go down in a usd value that is called a inventory loss in a market maker
market making literature and in that case that we believe that is a permanent loss when you have to rebalance after the price goes out of your
range say for example you are providing liquidity for sweet token from three dollars to four dollars
and three just go down below three dollars and that goes to like 2.5 and you are holding your tokens, you are holding all 100% SUI tokens at price of three,
and it goes down to 2.5,
and you have to sell part of your,
and now say you want to rebalance to the current range,
you have to sell 50% of your SUI token at 2.5,
and you will provide liquidity to this range again so this is the only way
when you are running fixed grid strategy you will suffer from a realized loss so yeah that's
pretty much tricky and i need more quantitative uh strategies to just choose between
to just choose between ranges.
And, you know, it appears to me
there are two extremes in the spectrum
that to the very left end of the spectrum,
you will not frequently change your range.
You will just very seldomly rebalance your range.
That means you will have to cover a very large range.
Say for SWE, the range should be something like $2 to $5.
In that case, you are expecting like half a year to rebalance it once.
So the employment loss should be very much lower on this situation.
The downside for this is you will have a much lower APR for providing liquidity here.
And to the very right, sorry?
No, I'm just agreeing with you.
Go ahead.
Yeah, cool, cool, cool. And to the very right side of the spectrum, it is the highest frequency.
You rebalance it.
You are just providing liquidity in a very tight range.
Sometimes it's like $3 to $3.05.
And in that way, your orders will be very dense
and your turnover rate will be really high,
sometimes like 50 times volume versus your capital to the capital.
And that is more like what is trendy these days,
like in private AMM or in Solana, it is SoFi.
They're doing that.
So that's the other end.
And you have to choose between it.
And there is a lot of empirical factors.
You have to do your experiments and you don't know what's going to happen before you actually try it out.
and you don't know what's going to happen before you actually try it out.
So currently, we're just striking a middle range in that spectrum.
So we have a moderate vault and we have moderate parameters.
But you just feel free to test out your own ideas on it.
Yeah, I mean, somebody somebody who has experimented with LP vaults and getting, unfortunately, 100% one-sided on your pool when you're too concentrated or the price moves, I mean, I'm certainly, you know, where let's say I'm more of a spot buyer and whatnot.
And when you want to accumulate a position,
you would start an LP vault, an LP position,
and then slowly accumulate and get the fees on top.
And if you want to start slowly selling out of a position,
you can kind of do the same thing
and create positions on both ends
when you're selling and buying,
and then you can collect fees.
That's an interesting idea.
But in terms of your,
your structure in terms of Lotus finance, you have pools and farms.
So what are the difference between pools and farms?
I noticed there's a different APR associated to each.
Yep. For, for farms,
farms are basically where you can receive incentives.
And for pools, pools are running strategies and receiving incentives from farms.
So that's why you see different APR there.
And basically what you see on farms, APR is purely the incentives.
on farms apr is purely the incentives so when you pick a perfect range by you can have a 50
apr strategy and you pick a 30 apr farm you will you create your vault you create your pool from
that vault of from that farm you will have a 80 APR in total.
That's interesting.
And yeah, I mean, I have a question about like the impermanent,
like in terms of impermanent loss,
like one more thing about when you, like as a newbie, right?
You would probably advise somebody who's kind of new to LP to have a wider range, would that lessen the IL there?
Yeah, definitely.
To avoid IL, you can just choose a larger range.
So no rebalance, no other range,
you will not have an improvement loss in this situation.
It is pure profit when the price goes within your range.
Either you will earn your tokens or either you will earn your USD valued position.
Thanks so much.
Yeah, and talking about bots, since these bots are sort of meant to be user-focused, knowing how to work, can a user actually work tweaking these bots to actually earn more? Is it possible?
Yeah, yeah, definitely. For now, we are offering a parameter update feature for the Vault creator. That when you create your vault, you see the market situation change or price change,
you can just update your parameter as a bot creator and uh more more than that if
you are a more professional trading company that were a market maker we even have a more customizable
form for you to just uh trade any anyhow you like you will have the uh trading cap for uh the the vault the cap here is a capability
so we move that if you hold that capability you can do certain uh privileged action and uh we will
grant that uh capability for a strategy firm and they can just uh carry out their own strategy. That might be very risky, but high efficiency.
And they can use the community's capital to carry out their strategy.
And we are actually working with some trading firms out there.
And this feature will launch shortly.
Oh, that's awesome.
That's awesome.
And going over to security issues and how it is with DeFi platforms and bugs and how
users will be concerned about smart contracts being safe.
users will be concerned about smart contracts being safe.
So what steps is the platform taking to place some form of reassurance to the funds of users?
Cool, cool.
I think for a lot of finance, we have quite a lot of security measures
to try to make the highest security level as we could.
And for example, we have carried out three audits there.
And there are three top security firms reviewed our contracts and just stamped their name onto it. And for the contract itself,
I think we are just using a sweet move
that is a very secure language
that in the terms that the protocol,
they just doesn't, they don't only,
doesn't they don't only they don't only carry out your binary code or binary commands there
instructions there they will as a advanced as a more than language they will the compiler and
the runtime will help you examine what is happening there and help you do some type checks and help you do some address checks that will help the programmer to prevent a lot of issues there.
In the language low level features, it's just keep the existence and prevent the double spending things at a very low level feature.
So the programmers don't have to rely, don't have to keep that in mind.
And that is by default kept safe.
And that is by default kept safe.
And for Lotus Finance, we are having more security measures
that we are just using a double layer security measure
that we will help users to store their asset
into DeepBooks Balance Manager.
And that is also very intensively audited code
that is better proven to be secure.
And your asset is stored there.
And we also have an accounting system
that will limit how much user can withdraw from our vault.
And the amount will just change as the vaults will trade the asset
and the user's share just changes.
And we're using a better proven share based system that will help account the user's
asset. And that architecture is proven to be working in a lot of smart contracts in Ethereum in ethereum and solana so i think uh it is very secure in uh to to the extent we we can make it
and and and that that brings us to uh the question like what are the rules for uh
locking of this assets and uh how knowing things like uh how long your phones are locked, if there are any withdrawal fees, and how this could help investment plans for people listening.
So what are the rules for locking in and digging out your phones from Lotus?
And how do these rules actually make it easy for users to access their phones?
Cool, cool. it easy for users to access their phones. Cool.
I think for the fees, we are having an early withdrawal fee just to prevent arbitrage against
the pool itself because we are using Oracle price as a factor to determine how much share
you're going to take within a vault.
So that will incur some high-frequency arbitrage risk
if we don't limit the early withdrawal things.
So we're not relying on it.
We don't profit from it.
But we have that fee to just prevent the arbitrary risk.
That is for the security for the majority of the assets stored in Lotus Finance.
And the protocol just take a performance fee.
That means when your position is in net profit in USD level measured, we will take 5% from your yield.
And if your total position, whether it is IL or just due to the token depreciation,
if your total asset is in net loss in USD measured, we won't take any fee from you.
asset is in net loss, USD measured.
We won't take any fee from you.
So that's alignment, that's a line of interest
that we will help you, we'll try our best to help users
to just make a profit in USD measured.
And there's a new fee structure introduced
in our mainnet version that we will share
part of the performance fee with a strategy provider.
And in this case, it's the vault creator that we're going to share the profit yield with
a strategy provider for they are tweaking the parameters they're just updating it
to make it within range and in some other cases the strategy providers will just send more low
level instructions like the buy sell or a kit position so in this structure, we're going to incorporate more smart traders or genius traders and the trading firms into this ecosystem to help our users to earn more profit.
Yeah. And from what I see, you just talked about price articles.
you just talked about price oracles.
So how do you help to maintain this price accuracy
considering the discrepancies in real-time pricing?
So how do you use live data of pricing from,
I don't know, makers of PICE, I guess,
to help this smooth trading on these platforms?
Like, how does it work?, to help you know, this smooth trading on these platforms, like how does it work?
And also curious to know
since you're involved
with Dbook, so how do you connect
with series Dbook and
what does that mean for people
trying to earn using
other ecosystems
like Ethereum
and Solana.
So what is the unique feature that you believe traders would want to actually come to Sui
and experience what you're building with Debook?
Cool, cool.
It's quite easy how we get connected to three ecosystems.
It's quite easy how we get connected to Sui ecosystem.
I'm personally a code contributor to Dbook code base.
So we fix some, when just integrating with Dbook,
we fix some of the issues when a third-party protocol
is going to integrate with them in a contract level.
So I have some pull requests merged into it,
and that's how we're going to very close with the DeepBook team
as well as the suite ecosystem.
And I think for developers from Solana,
it's quite easy to migrate to move
because I will personally regard move language
as a dialect for Rust.
So if you're a pro in Rust,
you know how to program,
you know the syntax.
It's quite easy to just migrate to a move.
And I have to say, the development experience
on using move is quite good
because it is more than language,
the compiler and syntax will help you handle a lot of things.
That previously you'll have to handle yourself from an application programmer level,
which is not favorable in modern language literature.
And what was the first question?
Sorry.
The first question was basically about the price oracle and how you handled this different
price discrepancies to keep the trading smooth on the platforms.
Cool.
For Oracle, I think it's quite universal across different blockchains. We're using Peace.
And Peace was a very famous Oracle across a lot of chains, including Solana. And we are just having a very low time up span for price.
So that will prevent some time-based temporal arbitrage that will make use of short-time price frustration. from depositing or withdrawing when we detect some very large fluctuation or some price failure on
the ecosystem for example when the the ecosystem has a lot of has a multiple multiple oracles and the oracles have a price discrepancy and when there's a
large D-pack situation happening like the staked suite well D-pack from suite
or the USDC price will D-pack from USD so in those, we will help the protocol from just entering and withdrawing.
So that will prevent the majority of the users from losing their asset due to some extreme situations like the price failure.
Yes, I like the price for you.
Yeah, and circling back to ecosystems, I've been making use of Radium since I think 2021,
and they have this same thing with the book.
And for instance, on Tulana, you sort of need, there's some criteria, like let's say Radium
requiring 50K in USD for providing liquidity.
So what are the, should I say, limitations and the range of what it takes to actually
have this on Lotus?
Well, I think for the implementation of the other book, I have actually dived really deep
into the book's implementation.
So I think that is the state of the art implementation because they use a very advanced structure
to build their other book, which makes it highly efficient and makes the capacity for that really
large. And previously, when we were building other blockchains, we noticed that even if there are some club decks
running other book on chain, it has a lot of limitations.
Like the total number of open orders within the other book.
Like the total amount, the maximum amount of orders to be filled within one transaction.
Say, for example, if you have like 100 million US dollars worth of buy order,
you place it in the market price,
and you will least likely go over all the open orders on the audiobook,
like 100 or 1,000.
But for other blockchains they will have a limitation that will limit how much orders you can feel within a transaction
but for sweet for uh date book those limitations are much more higher than other blockchains so
higher than other blockchains so uh so i think that is uh uh that is the uh um that's the reason why
something some some uh dexes like radium they have a lower limit for deposit your uh
for depositing your liquidity.
And actually for the public beta version for Lotus,
it was the same.
We'll have the lower bond for depositing your asset
to create a bond.
But for our mainnet version,
we actually have a pooling feature
that if you don't have that much amount of asset trying to deploy, you can choose from other users what you can deposit into it.
So you won't have to place a lot more orders onto the other book.
So, yeah, I think those are the two reasons why we don't have a large lower amount for depositing your asset into it.
That's pretty much awesome. I think it's part of the measures you're taking and that's pretty cool.
taken and uh and that's pretty cool and the the question i i personally uh would love to ask is
what is the you know like ranging from beer market times to you know potential bull markets
and uh very promising months how would you rate the the yield firm performance on a scale of 100?
Like, I would like to talk about past performance records of Lotus,
and especially considering market downturns and how reliable your returns are during this period.
Cool, cool.
You know, I personally, I'm very bullish on the total market, whether it's Bitcoin or SWE. And I have a very large, long position nowadays because I think the mass adoption is going to happen and there's a very large pump season just ahead of us.
And if you are just holding position on Lotus, I have to say, because we are running a spot only,
whether it's wild or it's a strategy, we're spot only.
And you have to suffer from the, the uh you have you have a positive
exposure you are in that position uh so uh for so so currently uh if you have to believe market goes
up and uh you will uh you will also be awarded from the market bet. However, when our next version release,
we will integrate with a lending protocol
that you can deposit USD into Lotus,
and we can help you lend the tokens
you want to do market make on.
And you will have that uh token as your debt so if you
are if you're not that bullish on the current market or you just want to market make something
while keeping a market neutral uh market neutral position you can use that feature in some later time. And for now, I'm personally very bullish,
and Lotus will just support the spot-only positions nowadays.
And of course, when we are integrated with Lending Protocols,
we will offer opportunities for you to use leverage to do market making.
Say your strategy is like 30% APR, and you want to go super bullish on that token
you can just feel free to add a 3x leverage and then you will have 100% APR for doing that market
making strategies alone so yeah there's a lot more flexibility in some future releases.
Yeah, that's really cool.
I mean, we have Kai Finance that kind of has leverage tools, right?
So do you see yourself like kind of integrated with them or you kind of like you'll launch your own product?
Oh, yeah, that's a good question.
Kai Finance is a class.
It's a very good coder.
And we actually used one of their open source modules on SweetMove.
And I think maybe we're going to integrate with them.
So the only point why we are not integrated with them for now is we are not using LP token for the vaults
because the vaults currently, you know,
we have to have dynamic typing in the Lotus protocol.
Say you're going to create your own vault here.
And if you want your specific LP token type
for this specific vault, you will
have to create a type at this protocol execution time but this is not possible on suite
on solana is quite easy you can spin off a a ran an arbitrary token type at runtime but for suite
you have to determine your type when you deploy the contract.
So that means if you want to create a SWE USDC vault on Lotus, you will have to determine
the type when you publish the contract.
So you will only have one vault for SWE USDC pair.
That is not what we are looking at in the business business logic and Lotus so that's the reason why
we don't have a LP token for each of the vault and without an LP token we can't integrate with
Kai finance and other pulling or or yield aggregator protocols out there.
So it is a pity,
but we will just try to spin up more features in our future release.
And definitely we would love to
if we can integrate with Kai Finance.
Nice, nice.
Just the one comment.
I mean, when I was looking into the farms, you know, when you add liquidity, I really like the feature of you can see the candle graph and then you can see the ranges and you can manipulate ranges and you can see it based off the graph, the chart, sorry. And that's really cool. I like that UI feature. So I haven't really seen that too often. So really cool
on that end. In terms of the current pools in the farm, like I've noticed that the highest TVL one
is a stable coin pair, was a USDT and USDC. Now your competitors in terms of similar kind of pools, like the APRs are
quite low. So is that kind of like a teaser to get people in? Is that like a promotional
APR at the moment offering about 16%? For competitors, what kind of APR are you
talking about? So the WSDT and the USDC pool,
you have the highest TPL there at the moment.
So I've seen kind of on Steam,
see this one that the APR actually is quite low.
And I noticed your APR is quite high.
Is that like a base of high incentives at the moment?
Cool, cool.
Yeah, for this moment it's based on high incentives at the moment? Cool, cool. Yeah, for this moment, it's based on incentives
because we're actually in a liquidity bootstrap phase.
That means previously, those pair,
even if it was deployed quite a long time ago on the book,
but there has been zero trading volume
until we bootstrap the liquidity in it. Can you imagine that on other book, but there has been zero trading volume until we bootstrap the liquidity in it.
Can you imagine that on the other book, DX,
the most advanced other book, DX,
you have a 10% spread on those stable coin pairs.
So you're going to buy USDT at 1.1 USDC per USDT.
That's beyond your imagination.
So it is when we come, when we, Lotus just first integrated with the book, we just revived
that tool.
And when we just make this very tight, it's within 10 bips and the aggregators will just route start routing their retail users
demand through the books pair stable pairs so at this phase we call it a
liquidity bootstrap that will involve more efforts to just get more liquidity into it. And after this phase, when more organic and native adoption comes into the book,
we believe the more transaction volume
will generate more strategy yield for the liquidity providers.
Even it's still in a very tight range,
a very tight spread.
So maybe later we're gonna have a much lower incentive
level for those stable pairs.
But for now, it's very useful for the whole market,
for the ecosystem.
So we have a little bit higher yield for the stable pairs.
Yeah, that's pretty cool.
And I do like the, like, for example, if you want to avoid the bad spreads,
you do offer, if you have USCC only, you can enter the pool.
And I guess Lotus would create the liquidity pool for you just using USDC, which I do like a lot.
Because you don't want that kind of loss trying to get wormhole USDT.
And so that's really cool.
Actually, I might participate that personally in my own personal wallets.
Now, I do notice that in terms of there are something called verified by Lotus pools, and then there's others who are not in the incentive range, and then there's others who are not verified.
Now, the non-verified, is that created by other users, like the liquidity pools that are users?
other users, like the liquidity pools that are users.
And can you go into the differences between Lotus verified,
not in the incentive pool, and then the ones that are not verified?
Cool, cool.
For the verification, we are now having a very rough procedure
of verifying the creator that we will
confirm with them personally that they will have to try their best to keep the
vault in position when the price goes out and um and they will uh they will use their own trading skills to help the stakers into their vaults to have the best yield.
And for some future times, I think we should have more advanced mechanism for getting the vaults verified. And for the in-range batch, we are just,
for our mainnet version on Lotus,
we have a feature that will zero out the incentives
for those out-of-range vaults.
So if you want to loot our incentives you have to stick
your position into an in range vault so those are basically the usage of the
badges and you want to if you if you want to deposit your tokens into it, you want to choose the in range and the verified batch vaults.
Nice. Interesting. And sorry, and so the ones, okay, and you said, okay, so that's the one with
the kind of warning sign that are not in range. And how about the ones that don't have any kind of label right now?
Let's say, for example, there are a couple, right?
L, B, T, C, and U, S, C.
What are those?
Sorry, if you explain that to me, I apologize.
I didn't get it.
Get it.
Catch it.
When you see there's no badges, it means we don't know the creator and we haven't confirmed
the creator that they have to keep it in range.
Oh, I see.
I see.
Okay.
So I can come in and create my own pool, right?
And just be unverified?
Yeah, definitely. You can just ping us from a backend in the community and we just make
sure you will keep your vaults in range and get it well maintained. And you can create your own
vault, you can verify it, and you can earn performance fee share from users who have their realized profits.
Nice. Interesting. So Lotus is a relatively new product. Is that correct? I mean, when
did you guys go on Mainnet?
We just go on Mainnet for a few days.
Okay. Yeah, that's what I thought. So welcome. Definitely cool. Kind of an interesting UI. And like I said, I like the UI around the farms.
Now, of course, in terms of like all new protocols and whatnot, I'm going to have to ask this.
You know, is there any announcement yet on like a potential TGE?
You know, is there kind of an incentive on that? Like what kind of strategies? If you do go down that road,
do you have any alpha in terms of how you'll kind of incentivize the community
and whatnot to use Lotus?
And in what way do you want to do that to kind of earn potential incentives
or rewards in the future?
Cool. For now, we don't have
a very specific TGE timetable.
What are we going to offer to our users?
These incentives, tokens,
we are currently releasing.
More things to come for sure.
But there is nothing guaranteed at this time
okay so uh what's the deal with uh lbtc and uh when it comes to the incentives for market making
like uh we're asking to understand how it's designed like the reward system for the future and now,
and you know how it is with tokenomics
and having a solid ecosystem adoption.
So can you, you know,
since you're already talking about that,
share a bit more on it?
Well, you know, there's a very specific
and standalone incentive schemes for LBTC because currently BTC5 is on the trendy topic on SWE ecosystem as a whole.
And we also get covered from the SWE Foundation's recent list of BTC5 project collaborates.
And I think it appears to us that BTC5 is the first time to enable strategy trading yield on Lotus
in a 100% on-chain native way. The BTC will be cross-chain to SWE using a native bridge or interoperability layer.
And we'll be running on a fully on-chain order book deck.
That is a deep book.
And we'll be strategy trading yield farmed from Lotus.
And this is the whole tech stack is 100% on-chain
and 100% safe for the native Bitcoin holders.
So this is the first time we enable trading yield for btc5 you can't imagine you trade from uh uh in a profit from a
price volatility on bdc chain itself so uh i think it's quite uh innovative here and for uh
now that we're doing a you know the weighted thing and uh the sweet equals whole ecosystem is focusing on this BTC file.
We got a very special incentive structure for Bitcoin related valves here.
And what's more than that is we actually listed that LBTC pair on DeepBook. And it is the only pair related to BTC
that has a positive trading volume nowadays.
So we're being quite unique here.
And you can expect more for being that first mover
on BTC5 on DeepBook en suite.
Yeah, sure.
And I see it's talking about perspective
for small investors
and having the same chances as big players.
I think Lotus seems to be focusing on,
you know, having it right with the community
from small investors to big players.
So how do you focus on building
blocks to help every investor when it comes to liquidity competing with big institutions?
Well, for DeepBook, they have been hiring a lot of centralized market makers to trade on it.
And it is the first time that retail users could get involved in market making on DeepBook.
So I think we are just providing a lot of alpha here.
adding a lot of alpha here. And we are also talking about more incentive plans that will
help promote this democratization procedure that previously is privileged to centralized
traders institutions. And now it's more democratized. We all believe that market maker is the last mile for uh d5 we have dexes
we have uh decentralized uh uh whole stack is decentralized except the uh market making
strategies so lotus finance is going to fill in this uh very last mile here and for retail investors
previously say for example you have a lot of people just taking 10
us dollars or 100 us dollars into lotus finance so can you imagine that a retail investor will spin
up their own uh trading script trading bot and have rented a a server that ran 24 by 7 and get a latest price feed and just update their strategy within all around the day.
You just can't imagine that to be fulfilled in $10 or $100 investment a month.
But we are just making
these things happen in Lotus Finance.
Quite a few users
just deposited $10 with us.
And it's the first time
for $10 investors you can
just join the liquidity
provisioning for AutoBookDX.
Very nice. very nice.
Thanks so much for the kind of insightful answers.
We definitely learned a lot.
Definitely not, you know, like LP protocol,
like providers and whatnot.
These are kind of not, you know,
the little more on the technical side.
So I really appreciate you breaking it down
and give us more information.
Now, briefly for about five seconds, if anybody quickly have any questions,
you could raise your hand now.
If not, we'll wrap it up.
Okay, doesn't look like it, but I think things were well covered, Hippo.
So I really appreciate your time here.
And thanks for telling us about Lotus.
I think it has a lot of potential.
And I think a lot of people are bullish on DeepBook.
And you integrating with DeepBook is really something interesting.
And I'll definitely be taking a closer look as a personal kind of investor in Sui.
a closer look as a personal kind of investor in SWE.
So thank you so much.
So thank you so much.
And on behalf of GREAT, Protocol and Christcode and myself and everyone here, thanks for joining
And yeah, take a look at Lotus Finance a little more.
And if anybody's interested in joining GREAT DAO, we're kind of an open-ended DAO that is taking more steps to learning more and
integrating into the SWE ecosystem.
We're always interested in various protocols like Lotus, and feel free to come in.
And if you do join our Discord, just go to the great X handle and join our Discord, and
x handle and join our discord and you just shout us out say hey you got us from the spaces
you just shout us out, say, hey, you got us from the spaces.
we'll we'll give you some bind that can give you the ability to to potentially earn a few fun tokens
like bonk and and jupe and whatnot and hopefully we'll we'll add some sui sui tokens as that that
as well but thank you so much for everybody joining uh have a lovely day and a happy uh
4th of july everyone take Take care. Bye-bye.
Thank you. Thank you for joining us.
Thank you for having me here.
Yeah, thank you, Hugo.
Thank you, everyone. It's been great.
Thank you. I appreciate it.
Take care. Thank you.
