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This week, Bin Lu (A.K.A. Gulu), the founder of KEY GROUP, which is behind the layer 2 Decentralized Exchange DeGate, held an AMA session with a leading crypto publication Globalcoinresearch. Global Coin Research is a global crypto community that provides access and research to top executives, investors, and the media. The community is tokenized and gated with a $GCR token.
During the AMA, Gulu spoke about his background in crypto, the activities of KEY GROUP, and the vision to make decentralized exchange (DEX) mainstream with the layer 2 based DEX- DeGate.
Gulu has been in the crypto industry since 2011 and is one of the leading Ethereum evangelists in China, translating the Ethereum Whitepaper to the Chinese language in the early days of Ethereum’s inception. He believes that DEXs are a natural continuation of Ethereum’s ethos. Although the current DEX space is crowded, rollup-based layer 2 solutions are going to be a game-changer in the evolution of decentralized exchanges.
The team behind DeGate, KEY GROUP, has been pushing mass adoption of blockchain for years. The group runs the most prominent Chinese crypto community Bihu, which has around 1 million users and is a combination of Reddit, Twitter, and live streaming service. While Bihu is for mass education, another product of KEY GROUP, MYKEY, a smart wallet implemented on multiple chains- is dedicated to enabling average users to easily enter the crypto space and enjoy a good user experience. Contrary to typical crypto wallets, a user is unlikely to lose private keys on MYKEY as there is a social recovery mechanism to protect average users. This idea was borrowed from Vitalik Buterin, who promoted it back in 2014/2015.
Today, the KEY GROUP team focuses on the continuation of its mission and aims to make the use of decentralized exchanges mainstream. According to Gulu, the inspiration to build DeGate is the same one that inspires everybody in the space, which is the ethos that blockchain itself embodies.
DeGate stands by the culture of openness and transparency: everything it does can be verified publicly. DeGate is a DAO-centric protocol of the community, by the community, and for the community. The owners of DeGate’s DG tokens will participate in the decision-making process and shape the protocol’s future.
Gulu strongly believes that DAOs are the future and a natural next step after DeFi. He says that DAO is a native organization on blockchain and is better-suited to control and manage a blockchain protocol. In this way, money flow and access authorization can be easily and naturally controlled by a DAO.
DeGate is a rollup-based L2 DEX, which will offer much lower trading fees and high volume liquidity, providing low-friction service to traders: Gulu expects the trading volume to increase ten times. For the orderbook module, DeGate is likely to deploy the 0x-like mode: orders will play off-chain until they get matched and then settled on-chain. AMM, orderbook trading, and leverage trading will be the big main functionalities. DeGate will likely work closely with a lending protocol partner, such as Compound, AAVE, or Cream for leverage trading. Moreover, DeGate will offer fiat on/off-ramps to L2, which means that it will provide a direct exchange between L2 stable coins and fiat currencies.
DeGate has already launched the L1- L2 asset bridge testnet: it aims to use the DeGate Bridge for fast withdrawals, acting similar to Curve.fi. DeGate plans to launch the AMM DEX on testnet in Q2 2021 and launch the mainnet on L2 with liquidity mining in Q3 2021.
Among the upcoming plans of DeGate within the next month are a social media-based token offering and a Liquidity Bootstrapping Pool on Balancer. The upcoming offerings are all public; there are no private offerings in order to honor a fair launch process.
DeGate invites the community to try the L1-L2 testnet on https://degate.com/ and follow news of the protocol!