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Hi Andrea and Michele, we are glad to have you here today! Could you introduce yourself and pNetwork?
Andrea: Hi there! My name is Andrea and I work as biz dev for pNetwork. We are a cross-chain liquidity protocol integrating 10 different blockchains and safeguarding about 75M in TVL so far.
Michele: My name is Michele Montecchi and I am project manager from Eidoo Wallet. My background is from traditional finance, before coming to the amazing crypto world. I oversee different areas inside Eidoo company. Eidoo has recently launched the only layer-2 debit card in the crypto space, with the best cashback program available. At the moment, we can onboard users only from the EU and UK. Eidoo and pNetwork are part of the same bigger reality which is the Poseidon group and they share the PNT token.
Q1. The introduction of pNetwork describes “The Heartbeat of Cross-Chain Composability”. Can you please explain to us how this is possible? Can PNT be stored on another blockchain?
PNT is an ERC-20 token that can migrate to any chain with the same approach we use for any other token (by “wrapping” it to a pToken). This approach is particularly good because it gives you the flexibility of solving the liquidity fragmentation problem in different ways.
With one approach, the pTokenised version of an asset is adopted on the new chain and it can always be redeemed back and forth without ever being stuck.
The other approach is to perform an immediate swap between the pTokenised asset and a supported asset (like for our Curve pBTC pool), which can be automated through a smart contract. So compared to other bridges, we have the flexibility to chose case by case.
The other really interesting use case is with metadata transactions. In a nutshell, we allow a swap to carry metadata and inherit a state/behavior. Think NFT portability (a token can inherit the img path) or liquidity extension in a trade (part of a trade is filled on one chain, another part is filled on another chain, cause you attach metadata such as asset and max slippage and the bridge does the rest). These are features not available to any other solutions.
Q2. Which are the chains that pNetwork supports for cross-chain composability till date and others which we can expect in future?
You can check every bridge available following this link https://dapp.ptokens.io/
At the moment we are connecting: BTC, LTC, ETH, xDAI, EOS, TELOS BSC, POLYGON. Algorand is coming. We are #1 project in all the crypto space for a number of blockchains integrated. It is quite easy for us to implement new bridges, given our technology and our approach to the matter (metadata approach).
Q3. What advantage does pBTC have over wrappedBTC?
WBTC is a centralized solution. This means you have to trust third parties, namely the merchant and the custodian, for the exchange and the custody of your BTC. pNetwork has implemented an open-source and decentralized in principle solution. This means that everything is managed by smart contracts. Pegging 1 BTC to pBTC is extremely fast and automatic and you can choose directly the blockchain where you want your BTC to go. Also WBTC is live just on Ethereum and Tron. We are live on many more chains with pBTC.
Q4. When we convert 1 BTC to 1pBTC, you’ll lock the 1 BTC there. Do you have any business plan to lend it to borrowers and pay a fixed percentage of the interest to the actual pToken holder? Or do we have an option to stake with any pToken instead of just PNT?
This is extremely interesting and something we are thinking about but almost certainly this will be a decision submitted to the DAO. Also because we have to define together which ratio of this liquidity can be invested and which percentage could be returned to whom. Staking with other tokens aside from PNT would remove value to the token and to the token holders. PNT is the coin of our ecosystem.
Q5. Do the token holders have the right to participate in the governance of the project? What kind of decisions can they vote on about the project?
Absolutely! Token holders can and should participate in the governance of the project. The DAO has been implemented exactly for this reason. At the moment proposals come directly from the team. Anyway, there is a dedicated forum (https://forum.p.network/) where every user can submit new topics and raise interest on a given matter. We encourage you to join the discussion!
Q6. One of the current financial problems of decentralized borrowing and lending is the high spread. How does the pNetwork fix this gap, bringing these rates closer?
DeFi protocols are spreading interest payments from takers of liquidity to all liquidity providers, even if all liquidity is not used. If all liquidity would be used, the spread between supply/borrow rates would be much tighter. One of the main purposes of pNetwork is to facilitate cross-chain liquidity. Obviously, the more assets are liquid and the higher the usage for them the less is the spread. But there is also a “structural” problem that has little to do with pNetwork, I would say.
Q7. Apart from rewards any strong reason to become a validator of pNetwork?
pNetwork nodes will earn pro rata the peg-in/peg-out fees, aside from staking rewards. Each time a peg-out occurs (that is a pToken is redeemed for the underlying asset) a 0.25% is kept as an incentive fee by the system. There’s no fee on peg-ins at the moment, to incentivize TVL, but fees can be changed by governance voting. In the past two weeks periods, nodes earned anywhere between 10k and 50k. You can check the exact amount in our open-source analytics https://pnetwork.watch/d/ven8sqrGz/pnetwork-nodes-fees-accrued?orgId=1 . Other non-financial reasons are to double-check that no tampering is occurring within the peg-in/out mechanics as node operators act as witnesses for the bridge.
Q8. What are you trying to achieve in EDO to PNT migration phase? How that will impact the investors who have invested in PNT? Will it bring EDO holders also to PNT ecosystem? If so, how this will impact the tokenomics adopted by PNT?
The migration already happened. All EDO holders became automatically PNT holders. Thanks to this upgrade EDO token holders have seen the utility of the token improve and strengthen. The introduction of the DAO and Nodes has given PNT much more utility than before. With these 2 components, DAO and Nodes, there is a great incentive to stake the token and make it more scarce on the market. This translates obviously into greater chance of appreciation.
Q9. What is your ultimate goal for this year? And what will your Roadmap for 2022 look like?
We are rolling out a few big updates later this year for both the pNetwork and Eidoo wallet. pNetwork v2 will be a big infrastructure update, that will hugely shorten our maintenance time for each individual bridge (+60 atm) and give our devs more time to focus on new integrations. Eidoo will implement a brand new version which will expand the defi protocols available and provide a cleaner look. As for 2022 we are focused on a few big milestones, the first of which would be to port our oracle solution on top of the pNetwork, to allow data feed to live and move directly on top of the bridge.
Eidoo will do a major upgrade. It will be really a quantum leap, in terms of UI, blockchains supported, fiat service integration, and so on.
Q10. Quoting from PNetwork Litepaper – “The pNetwork will not be burden for pToken users as they are not required to interact with it (unless they wish to)”. Can you elaborate on this fact?
This simply means that a user can freely use pTokens and pNetwork technology and bridges, without participating in the DAO. Whoever wants to participate and vote is more than welcome to become a PNT holder and stake in the DAO. On the other side, the person who wants to just use the technology is more than welcome also to do it.
Q11. Can you share a little bit more about the PNT tokenomics?
Yes sure. PNT is a utility token that can be used: 1) to set up a node (and you receive rewards from the DAO and from network fees) 2) to stake in the DAO and receive rewards 3) Also you can receive cashback rewards from the same staked token with the EidooCard 4) PNT is also used to propel liquidity pools for key pairs on the pNetwork.
It is also our governance token that helps set the future direction of the protocol by voting. Max supply is just less than 88 million and 20 PNT are burned every time a basic card is ordered. We will have an inflation of 21% going on from August 2021 for one year. This inflation is the reward for DAO members. So now is time to join!
Q12. Are every multi- blockchain financial transactions through PNT being fully audited? How?
Every contract is audited and we adopt an on-going audit process which you can read about it here https://medium.com/pnetwork/pnetwork-security-and-progressive-decentralisation-c5552216ca23
Q13. Will PNT support all across blockchains in the future or any restriction is there? Is it also scalable?
PNT goes where user interest is. Version 2 of the dApp will allow any token/coin to go to any other chain without coming back to the native one. Yes, it is scalable as there are no limited number of nodes.
Q14. Most of the investors just focus on the price of tokens in short term instead of the real value of the project. Can you tell us the motivation and benefits for investors to the PNT token long term?
More adoption -> More bridge volume -> More fees -> More rewards for nodes -> More PNT staked -> Less PNT available in the market.
Q15. What is the best thing about pNetwork that makes it better and from other networks and technologies?
We are much more scalable than others. More bridges, more chains, faster approach, more use cases, metadata approach. We are decentralized. We have a history and great experience.
Q16. How can NFTs be incorporated into PNT?
This is a really nice question. Only the future will tell us but our NFT bridge involve PNT in its functioning. Reach out if you are a project interested in the tech.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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