Welcome to the Live v2 AMA everyone! It’s the first time we’re holding an AMA like this on Telegram. It will look like this:
- I will ask the questions from the community to the various team members
- After this you have the opportunity to ask your remaining questions live, the team will answer 3 of them
- And finally: I will announce 4 persons who will win 200 XFT for the question they submitted (3 people who submitted their questions in advance + 1 lucky person who submits a question during this AMA)
Offshift v2 AMA Recap
June 23, 2023
Yesterday the Offshift Dev Team hosted its Live v2 AMA in the Offshift Telegram. As always, we recieved lots of great questions from the community, and we answered as many as we could (while keeping the AMA to about an hour and a half). The devs even answered a few follow up questions after the AMA concluded.
Our next Live Dev Update & AMA is slated for Thursday, July 20 in Telegram as well. You can expect a lot more updates then, as we’ll be less than a month out from the Offshift v2 CLI Testnet Release, scheduled for the week of August 14.
If you missed yesterday’s AMA, you can catch up below, or in the Offshift Telegram itself if you prefer. As always, feel free to come by and ping us with followup questions from the AMA or anything else that’s on your mind.
S
Sebastiaan
Okay, without further ado, here we go!
The first couple of questions are about the basics and functionality of Offshift v2.
The first question is for you @nXoFoTb:
What are the technical characteristics of the Noir language developed by Aztec that makes it more suitable for coding the platform? I mean, what does it have that other programming languages lack and how does it contribute to reducing fees of using the platform?
What are the technical characteristics of the Noir language developed by Aztec that makes it more suitable for coding the platform? I mean, what does it have that other programming languages lack and how does it contribute to reducing fees of using the platform?
TO
T O
Noir implements the most cutting-edge proving schemes, such as UltraPLONK. Additionally, the Noir development team is constantly pushing new updates to their middleware to allow for more efficient integration into user-facing apps such as Offshift.
S
Sebastiaan
This one’s also for @nXoFoTb:
Could you explain to me like I’m five, the difference between v1 and v2, please?
Could you explain to me like I’m five, the difference between v1 and v2, please?
TO
T O
Using the analogy of dollar bills: v1 makes everyone have the same size bill, v2 lets people have different size bills.
S
Sebastiaan
@GreybeardXFT is next:
How do Offshift v2 zkAssets maintain their pegs without tokenizing them?
How do Offshift v2 zkAssets maintain their pegs without tokenizing them?
G
Greybeard
Similarly to v1, we use a Chainlink oracle for our pegs. The difference in v2 is that zk assets will not require additional liquidity pools.
S
Sebastiaan
@GreybeardXFT,
Offshift v2 allows for carrying out shielded transfers as well as partial asset withdrawals, but technically speaking how could that be possible if the platform uses a merkle tree structure? If the value, the asset, and the price oracle are the elements encoded into the commitment and a user performs a partial withdrawal or shifting, it no longer has the same value or price originally encoded, so how is the ownership of assets proven?
Offshift v2 allows for carrying out shielded transfers as well as partial asset withdrawals, but technically speaking how could that be possible if the platform uses a merkle tree structure? If the value, the asset, and the price oracle are the elements encoded into the commitment and a user performs a partial withdrawal or shifting, it no longer has the same value or price originally encoded, so how is the ownership of assets proven?
G
Greybeard
Similar to Zcash/Monero, a UTXO style system is used. We can nullify spent outputs and generate unnullified replacements. Past this, it's a membership proof like usual.
S
Sebastiaan
The next one is also for you @GreybeardXFT,
Can I shift to zkBTC but withdraw as zkETH?
Can I shift to zkBTC but withdraw as zkETH?
G
Greybeard
Assets leaving the system are withdrawn as anon assets, but yes, you should be able to exit in the tokenized asset of your choice, similar to v1 but with added privacy. XFT -> zkBTC -> anonETH is a valid flow.
S
Sebastiaan
@GreybeardXFT, get ready for the following question:
You have implied that zk and anon assets will be able to be swapped 1-1. Does this mean that they will not need to be transferred back through XFT? Acting sort of like an atomic swap that was first put forward in the original white paper.
You have implied that zk and anon assets will be able to be swapped 1-1. Does this mean that they will not need to be transferred back through XFT? Acting sort of like an atomic swap that was first put forward in the original white paper.
G
Greybeard
Once you're inside the system, or are entering the system, you have the option of using either XFT or an anon asset as your deposit/withdraw currency. It's not quite an atomic swap since there's no human counterparty, but functions similarly.
S
Sebastiaan
Here's another one for you, @nXoFoTb:
Can you explain the process of making shielded transfers within the Offshift v2 platform?
Are there any fees associated with shielded transfers or partial asset withdrawals on the v2 platform?
Can you explain the process of making shielded transfers within the Offshift v2 platform?
Are there any fees associated with shielded transfers or partial asset withdrawals on the v2 platform?
TO
T O
Shielded transfers will be achieved by redeeming commitments for a given sender and then issuing new ones for the recipient. Gas fees for these transfers will come when inserting the new commitments into the Merkle tree and when verifying zkSNARK proofs on chain.
S
Sebastiaan
I've got another question lined up for you, @GreybeardXFT:
How do anonAssets function alongside zkAssets within the Offshift protocol and ecosystem?
Are there any limitations or restrictions on the interchangeability of values between anonAssets and zkAssets?
How do anonAssets function alongside zkAssets within the Offshift protocol and ecosystem?
Are there any limitations or restrictions on the interchangeability of values between anonAssets and zkAssets?
G
Greybeard
You can think of the two pairs as interchangeable parts of the same underlying backed value. Anything "on the outside" is a tokenized anonymous asset, and anything inside the fully shielded system is a zero knowledge asset. As far as we can tell right now, there won't be any limitations introduced when swapping between the two at a 1:1 rate.
S
Sebastiaan
I'm directing this question to you, @nXoFoTb:
The Offshift v2 platform uses commitment-only assets. So, will the platform offer users the ability to shift to any asset they like since the only requirement is the Chainlink price oracle or there will be a limited number of assets available that the team or the community proposes?
The Offshift v2 platform uses commitment-only assets. So, will the platform offer users the ability to shift to any asset they like since the only requirement is the Chainlink price oracle or there will be a limited number of assets available that the team or the community proposes?
TO
T O
Exiting the protocol still involves minting ERC20 tokens (either XFT or anonAssets), so volatile pairs still pose a risk of hyperinflating the supply of XFT. It is feasible technically to add new pairs via Chainlink but the question ultimately becomes one of tokenomics.
S
Sebastiaan
@nXoFoTb, another interesting question for you:
In the litepaper you mention a few positive points about possible Typescript integrations. Can you give some concrete examples of the advantages it offers?
In the litepaper you mention a few positive points about possible Typescript integrations. Can you give some concrete examples of the advantages it offers?
TO
T O
Proof generation is done off-chain on the client side to preserve user privacy. End users are most likely to interact with the SNARK proving scheme via an in-browser application. Noir's package installations also include proving backends that compile into Web Assembly (WASM), with Typescript interfaces for developers to use inside browser applications. Long story short: these integrations make it straightforward to let users generate proofs in their browsers' frontends.
S
Sebastiaan
@GreybeardXFT, the next one’s yours.
Can you give an estimate of the height of the gas fees involved in Momiji commitments vs. the v1 anonAssets shifts?
Can you give an estimate of the height of the gas fees involved in Momiji commitments vs. the v1 anonAssets shifts?
G
Greybeard
We have some positive news to share with regards to gas costs, but we're not quite ready to share yet :)
S
Sebastiaan
@NEO_XFT, here comes your first question of this AMA:
What is the solution of the Offshift team to "replay attacks" on Merkle Tree signatures?
What is the solution of the Offshift team to "replay attacks" on Merkle Tree signatures?
N
Neo
We will have rigorous checks implemented in our contracts, so this attack vector is very unlikely
S
Sebastiaan
The next few questions are about the future of Offshift v2.
@GreybeardXFT, I'd like to get your perspective on this next question.
Is it possible that Offshift v2 could be added into DEXes on Ethereum, meaning Offshift or a rebrand can run on a DEX page where people can swap ETH into anon assets burning XFT under the hood without even knowing about Offshift?
Is it possible that Offshift v2 could be added into DEXes on Ethereum, meaning Offshift or a rebrand can run on a DEX page where people can swap ETH into anon assets burning XFT under the hood without even knowing about Offshift?
G
Greybeard
Sure, it would be possible to silently integrate offshift into other protocols or dexes. Our end goal is to make it easy to integrate into the deployed privacy layer.
S
Sebastiaan
@GreybeardXFT, a short one for you:
How quick is the onboarding of new assets on v2?
How quick is the onboarding of new assets on v2?
G
Greybeard
As quick as v1, but without the overhead of managing additional liquidity pools. Once an asset is deemed stable enough, we can launch it relatively quickly. We've built out our tooling with the goal of expediting the launch of new assets in mind.
S
Sebastiaan
Another query for you, @GreybeardXFT:
Are there any limitations or constraints to the types of assets that can be supported by Offshift v2's synthetic asset model?
Are there any limitations or constraints to the types of assets that can be supported by Offshift v2's synthetic asset model?
G
Greybeard
Relatively stable assets are preferred, and is one of the most important aspects of selecting new synthetics, since XFT liquidity is backing them.
S
Sebastiaan
@NEO_XFT, I'd like to ask you something else:
Are there any plans to introduce additional features or functionalities within the Offshift v2 platform in the future?
Are there any plans to introduce additional features or functionalities within the Offshift v2 platform in the future?
N
Neo
In the end it’s just with erc20’s mostly, and anyone would be able to integrate their own product since it’s an open protocol
S
Sebastiaan
@GreybeardXFT,
Will creating asset contracts be something the community can actively participate in since liquidity is not needed?
Will creating asset contracts be something the community can actively participate in since liquidity is not needed?
G
Greybeard
Once OffShift eventually transitions into a DAO,, all decisions currently left to the team will be in the hands of the community.
S
Sebastiaan
And @GreybeardXFT, what are your thoughts on this:
Will the v2 contracts be upgradeable by the team? Does the team plan on renouncing contracts at some point in future to eliminate the associated risks?
Will the v2 contracts be upgradeable by the team? Does the team plan on renouncing contracts at some point in future to eliminate the associated risks?
G
Greybeard
We'll be launching v2 with training wheels like most platforms, with the end goal of being a fully decentralized autonomous system with the wheels off when the technical work is deemed complete. So, yes, eventually the contract will be unowned and upgraded purely by its DAO through the community.
S
Sebastiaan
We have one question which relates to the basics of Offshift:
And I'm directing this question to you, @GreybeardXFT:
What is the flex fee mechanism employed by the Offshift v2 platform, and how does it incentivize restoring the price peg?
What is the flex fee mechanism employed by the Offshift v2 platform, and how does it incentivize restoring the price peg?
G
Greybeard
Our v2 flex fee works identically to the original flex fee in v1, and you can read about the details on our website for the full scope of information on how it incentivizes a re-peg. Nothing will change in that regard, for now.
S
Sebastiaan
The final questions relate to the future of the Offshift platform as a whole.
Another question for you, @NEO_XFT:
Why wait till August to start on the new UX and design? This can be designed and tested and get community feedback to perfect this over the next couple months without code using Figma.
Why wait till August to start on the new UX and design? This can be designed and tested and get community feedback to perfect this over the next couple months without code using Figma.
N
Neo
The new UX design is being worked on right now, we will update the community regularly with every milestone we reach, we meant finally release in august, also we aren’t using figma since it’s a closed source product owned by adobe, we use penpot which offers the same functionality.
S
Sebastiaan
And @NEO_XFT,
Will the team be collaborating with the community to get the best possible ideas and outcome for UX in the future upgrade?
Will the team be collaborating with the community to get the best possible ideas and outcome for UX in the future upgrade?
N
Neo
Community feedback is always welcome and we are looking forward for any opinions regarding the UX since it matters for us and the community. Plus we will be opensourcing our prototypes and components so anyone is welcome to submit a PR.
S
Sebastiaan
Here comes another query for you, @GreybeardXFT:
It's nice to see the new litepaper that's out. A question I've been thinking about is: it seems the entire Offshift Ecosystem is dependent on the liquidity in the ETH/XFT pool when you want to redeem your synthetic assets. Will there be any function in the future to send ETH itself that wouldn't be traceable but can easily be redeemed into a fresh wallet with whatever amount the wallet chooses to withdraw?
It's nice to see the new litepaper that's out. A question I've been thinking about is: it seems the entire Offshift Ecosystem is dependent on the liquidity in the ETH/XFT pool when you want to redeem your synthetic assets. Will there be any function in the future to send ETH itself that wouldn't be traceable but can easily be redeemed into a fresh wallet with whatever amount the wallet chooses to withdraw?
G
Greybeard
No. TornadoCash exists, and we definitely do not want to directly compete for that market share.
S
Sebastiaan
@GreybeardXFT, the last question of this section is for you:
How are you guys thinking about integrations of anon and zkAssets into other protocols if at all? Similar to Lido's success of their LSTs integrating with other major Defi apps to create a moat, if anon/zk-assets integrate with premier borrow/lend platforms on Ethereum and elsewhere, it would boost Offshift's network effect and moat.
How are you guys thinking about integrations of anon and zkAssets into other protocols if at all? Similar to Lido's success of their LSTs integrating with other major Defi apps to create a moat, if anon/zk-assets integrate with premier borrow/lend platforms on Ethereum and elsewhere, it would boost Offshift's network effect and moat.
G
Greybeard
We're currently focusing our efforts on developing our core technologies. Once that is completed, we'll have time to work with integrators. We always have integrators in mind when building, and we try to develop in a way that makes it easy to integrate with us.
B
Biski
What advantages does the v2 platform offer in terms of shielded transfers within the system and partial asset withdrawals compared to the previous version?
A
Acnes mo
Do you have any instructions or anything that would make it easier for a new investor to pick up if I wanted to invest in OffshiftV2? What promises or guarantees do you have for those of us who will invest that the projects we invest in will be successful and worthwhile?
G
Gustavo winter
Hello guys, I have a question
I don't know much about zkSNARK, and zkAssets and stuff, How does the team at Offshift deal with someone like me?
I don't know much about zkSNARK, and zkAssets and stuff, How does the team at Offshift deal with someone like me?
A
Artur
What are the factors considered in determining the price peg for synthetic assets in Offshift v2, and how does Chainlink's price oracle play a role in this process?
N
Na mo
What part of the project are you most focused on right now to sustain OffshiftV2? What is the current revenue model. I want to ask, Which is most important to you in developing the community and increasing the value of the project? Which will you do first?
R
Roy
Give me your top 3 features why investors should invest in OffshiftV2 ?
F
Fledgeling
How does Offshift balance the need for privacy and anonymity with the need for transparency and accountability in decentralized finance?
T
Tomy
What are the key differences between the privacy layer "Momiji" in Offshift v2 and the previous zkSNARKS and MiMC-hash Merkle tree implementation used in the anon platform?
G
GOBHUI
What are the plans to educate and increase awareness and adoption among the people to make more people understand Offshift V2 easily?
K
KIN
Why did OffshiftV2 choose Ethereum gas settlement so high, how to solve it?
S
Squid
How does the integration of Typescript interfaces in conjunction with the Noir domain language in Offshift v2 enhance testing, version control, and open-source development on top of the platform?
M
Marc Anlene
We all are well aware that a vast majority of people are yet to go into crypto. How do you aim to enlighten them to accept to make use of crypto on your platform , as this is impertinent to building an impressive customer base? How do U cope with the challenges of convincing a total crytpo novice to embrace your platform for purchase of physical items?
S
Sebastiaan
Okay, thanks guys.
Now’s the time; what do you want to ask the team at this very moment? Please type your questions now!
Three questions are chosen and answered by one of the team members; one of the people who submits a question now will also receive a prize of 200 XFT!
Now’s the time; what do you want to ask the team at this very moment? Please type your questions now!
Three questions are chosen and answered by one of the team members; one of the people who submits a question now will also receive a prize of 200 XFT!
B
Biski
Could you explain how the Merkle tree implementation and zero-knowledge proofs are used for note deposits and withdrawals in the v2 platform?
F
Fledgeling
How does Offshift balance the need for privacy and anonymity with the need for transparency and accountability in decentralized finance?
A
Artur
In terms of privacy preservation, what benefits does the Offshift v2 platform offer compared to other private cryptocurrency protocols that only allow transfers of native tokens?
K
KIN
Right now, all tokens are dropping in price even with great partnerships, hype, marketing and working products etc. So, what are the challenges and plans to make the powerful OffshiftV2 popular? Do you see it as an opportunity while the market is currently declining?
T
Tomy
How does the Offshift v2 platform utilize zero-knowledge proofs to ensure privacy while allowing for the creation and transfer of synthetic assets on Layer 1 Ethereum?
T
Timmy
Why should we choose OffshiftV2 ?
S
Squid
What are the future plans and roadmap for the Offshift protocol and ecosystem, particularly in terms of further advancements in on-chain privacy, synthetic assets, and user experience?
B
Blink
Do you allow suggestions and feedback from the community? Were we allowed in the decision for Offshift V2, did you consider the community?
A
Alice
Security and anonymity have always been prioritized by the BlockChain project in the project's platform and technology development. So does OffshiftV2 have a solution or technology plan to increase user confidence in this issue?
B
Biski
Could you elaborate on the Noir domain language used in Offshift v2 and its cryptographic primitives such as BN254 curve and hashing algorithms?
A
Artur
How does the flex fee mechanism implemented in Offshift's anon platform help maintain the price peg and prevent potential protocol manipulation or destabilization?
T
Tomy
How does the synthetic asset model employed by Offshift v2 facilitate private exposure to popular off-chain assets, such as Bitcoin, Gold, the US Dollar, and a privacy-preserving version of Ether, while remaining on the Ethereum blockchain?
S
Squid
Can you explain the role of the "flex fee" mechanism in Offshift v2? How does it help maintain the price peg of anonAssets and incentivize market makers?
A
Alice
According to the roadmap, what are OffshiftV2's next most important priorities?
p
W
Wndrx
How does a shielded transfer inside the v2 privacy system look like on the public 0x side? Is it visible at all?
W
Wann0
Can you shed some light on the development of partnerships from the referral program?
K
KIN
Now the biggest problem in crypto is security, in recent times there are many projects that have been hacked that have taken away the user's resources.
So how do you ensure the security of your project? What are you doing for the security of your platform? Tell us about the security of your Project?
So how do you ensure the security of your project? What are you doing for the security of your platform? Tell us about the security of your Project?
G
Greybeard
Gonna wait a second for the crazy inflow to trickle
A
Acnes mo
What are the advantages of using OffshiftV2?
F
Fledgeling
How will the introduction of zkAssets, fully private synthetic assets on Layer 1 Ethereum, change the landscape of on-chain privacy and the use of synthetic assets
N
Na mo
Right now the crypto world has lot of project with the same vision as yours.
What makes OffshiftV2 stand out from the rest?
What makes OffshiftV2 stand out from the rest?
M
Marc Anlene
What your plans for the Offshift V2 to move towards a more decentralized, permissionless and trustless solution?
A
Arslan
Can you explain the process of shifting from the Offshift native token, XFT, into private synthetic assets within the Offshift v2 platform?
B
Biski
Could you discuss the role of the Offshift community in the development and growth of the platform? How can users contribute and participate in shaping the future of Offshift?
SC
Serina Califa
Are there any limitations or constraints to the types of assets that can be supported by Offshift v2's synthetic asset model?
S
Sebastiaan
Thanks for the questions everyone. We will now give the team a moment to answer three of them! (I’ll mute the chat again for a moment)
G
Greybeard
In reply to this message
A global anonymity set, which confers greater privacy. You can transfer assets from person to person inside the system with complete privacy (like zcash or Monero but with synthetics). There's also no set denomination, and all types of assets enhance each other's privacy by increasing the privacy set.
TO
T O
In reply to this message
It will be visible to an extent, but the publicly viewable data will be in the form of commitments and/or nullifiers that blind the data used to create them. Not entirely dissimilar to what we see in Offshift v1, but with more data to be encoded.
G
Greybeard
In reply to this message
zk and anon assets are meant to be analogous, with one offering full privacy and the other being existing dex friendly. The goal is to have the two types of assets share identical financial features, which includes the flex fee.
S
Sebastiaan
Thanks everyone.
I'm going to the last part of the AMA: the winners!
It was great to read through the high quality questions, thanks to everyone who submitted one (or more). But only four (!) can win:
I'm going to the last part of the AMA: the winners!
It was great to read through the high quality questions, thanks to everyone who submitted one (or more). But only four (!) can win:
@Mouh104
@Downandupwards
@Blobbybobman
And the AMA live question winner is:
@pluto_cat
@Downandupwards
@Blobbybobman
And the AMA live question winner is:
@pluto_cat
Congratulations! Please DM me an Ethereum address to receive your prize.
Okay, that wraps up our Live v2 AMA. Thank you all for participating. We're curious what you think of this new format, let us know below 👇 Until next time!