SEDA Community Call: Token Upgrade & Use-Cases

In this episode of SEDA Protocol which took place on April 5, 2024, Tiago Vasconcelos hosted Jasper De Goojier, Peter Mitchell, and Matt Peters to discuss strategic developments, upcoming launches, token upgrade initiatives for SEDA, security, user guidance, and more! Read our notes below to learn more.

Background

Tiago Vasconcelos (Host) – Head of Community at SEDA

Jasper De Goojier (Guest) – Co-Founder & CTO at SEDA

Peter Mitchell (Guest) – Co-Founder & CEO at SEDA

Matt Peters (Guest) – Head of Marketing at SEDA

Update on Network Progress, Token Upgrade, and Pre-Launch Preparations

Jasper acknowledges a productive month, mentioning the finalized audit for their network and token upgrade, which will be announced soon. He highlights the onboarding of over 40 validators on Testnet, with more expected before the mainnet launch. Jasper highlights the development of monitoring tools and successful low-risk issue resolutions from the audit.
Jasper notes that they have been testing the chain extensively, including dry runs and stress tests, to ensure stability. He mentions working on an explorer to support token upgrades and the creation of custom fast-sync accounts for the data network. Jasper expresses excitement about focusing again on core products and upcoming Testnet deployments.
Peter advising on guides for creating an address on SEDA for token holders on Ethereum and other chains. He reminds users to bridge their tokens back to Ethereum for the upgrade and reassures them that the upgrade will be available for at least one year, with no rush to participate immediately.
Peter urges caution regarding official communications and links, warning against potential scams as they prepare to announce the network launch and upgrade event. He says that detailed documentation will be provided to help users understand token upgrades and address creation.
Jasper says that at the launch of the Oracle modules, data requests will be relatively fast but not as rapid as some might expect. He explains that SEDA has optimized for accessibility, which includes decentralization and cost-effectiveness, over speed.
He adds that despite the slower speed at launch, the permissionless nature and customization of the feeds allow for a wide range of use cases, making SEDA suitable for most applications that other Oracles serve and more, with certain exceptions like perp DEX.
Peter explains that inflation will initially be set to zero at the launch of the chain to ensure a healthy distribution of tokens among validators.
He says that inflation is likely to be introduced as network features go live and become audited and tested, aiming to align the inflation rate with network activity and data request demand.

Redefining Value Metrics for Oracles: From Total Value Secured to Trackable Value

Tiago asks what the narrative should be towards maximizing integrations in oracles, leading to increased app usage and rewards for Oracle token holders, and seeks the right metric for this.
Peter says that while total value secured was previously an important metric for oracles, it now seems more like a meme and not a direct reflection of the value an oracle creates.
He exemplifies that a protocol using a data feed might secure a large value but pay minimally for the data, suggesting a disconnect between the value secured and actual revenue to the oracle.
Peter says that the total value secured can indicate network health, using an example where a secure value requires a significant purchase of tokens to manipulate price feeds, which becomes costly, adding security to the network.
Peter says that the true value for oracles comes from trackable value, where price updates allow for arbitrage opportunities, highlighting a situation with a liquidation that led to significant value lost to validators rather than benefiting MEV bots.
Peter discusses how his team’s research and observations on MEV suggest it’s a crucial metric, indicating about $100 million per month lost to validators, which impacts network health.
Peter explains how data providers, like Amberdata, can scale efficiently by deploying data feeds across new chains without recurring costs, providing a comparative advantage in network operations and cost efficiency.

SEDA’s On-Chain Data Integration, Security Measures, and Token Upgrade Process

Jasper adds that while TVL is a good metric for measuring trust, it doesn’t directly measure value. He says that other metrics like data request volume and average query per integration are more indicative of potential revenue.
Tiago asks how the apps they’ve discussed are finding the setup useful, and what concerns they have.
Jasper says that selling their product has been easy due to the strong need for on-chain data. He notes a variety of use cases for their technology, from chain abstraction to lending protocols, and highlights the simplicity and broad appeal of their pitch.
Jasper explains that security concerns are addressed by using a proof of stake chain combined with data attestation machines, which ensure a high level of security. He discusses cost and speed efficiencies gained from their specialized network design.
Peter highlights the enthusiasm from layer-1 and layer-2 protocols for SEDA, pointing out the competitive advantage of being able to immediately support new chains.
He says that this alignment positions SEDA as an essential part of these chains’ ecosystems, facilitating the development of applications from day one.
Peter asks Jasper to provide a high-level overview of the token upgrade from a technical perspective, mentioning the upcoming release of detailed documentation and the public GitHub repo with a Trail of Bits audit.
Jasper explains that token holders will send their FLX to a contract, which will burn the tokens and notify a wormhole contract on Ethereum about a bridge transaction.
This transaction is then confirmed and relayed to the SEDA chain with proof that is verified, resulting in the tokens being transferred to a SEDA address. He highlights the process’s simplicity and straightforwardness.
Tiago stresses the importance of safety during the token upgrade and following only official channels. He highlights community engagement opportunities like quests and climbing leaderboards on Discord.

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Show Information

Medium: YouTube (Video)

Show: SEDA Protocol

Show Title: SEDA Community Call: Token Upgrade & Use-Cases

Show Date: April 5, 2024