Flux AMA with CEO Peter Mitchell: What’s Happening Behind the Scenes at Flux?

Community Team
November 11, 2020

On 11 November, 2020 Flux CEO Peter Mitchell hosted a low-profile AMA in the Flux Protocol official Telegram group. As one of the most overlooked AMAs to date a number of extremely important updates on the development of Flux were dropped by Peter: don’t sleep on this one - it is as hype as it gets! A brief overview of the most important points discussed is outlined below, while a full transcript of the AMA is included at the bottom.


Trending Prediction Markets

The AMA kicked off with Peter talking about the recent traction seen around prediction markets especially during the presidential election in the United States. He mentioned that it’s been awesome to see prediction markets take the main stage in the election. Moreover, Peter is excited for the future of markets around politics, and the strong position of Flux in this industry.


“After building in the space for a couple years it was really awesome to see prediction markets take the main stage in be featured so prominently in the US election. I think this is only the beginning and there were a lot of hindrances holding back serious usage, but I think Flux will be primed for upcoming markets around politics.”


Real Money

While categorical and binary mechanics are already live on Flux mainnet today, scalar markets (prediction markets with numerical denominators) are soon to be implemented as well. With scalar markets, one is able to start a prediction market, for example, on how much airline stocks would go up by the end of Q4 2020. With this new feature, new types of prediction markets can be set up. “Testing with actual money starts on Friday 13 November 2020” Peter casually dropped. “At the beginning it will be capped usage to ensure we can refund any funds that could be at risk”, he added.


Quantstamp Security Review

A few issues with varying levels of severity were found during the security review. These issues have been resolved in the meantime. Furthermore, the engineers at Flux are finishing up rewriting the code base. They’re doing this to include better documentation so the protocol is easier to build on, and effectively reduces the time needed for future iterations and audits. Upon completion of these fixes, Flux will be primed for public launch, and ready to scale across prediction markets!


Pressure from competition

Notably, Peter was asked if he feels any pressure from competitors in a way that makes him feel the need to move faster. To this he replied:


“At the moment the market is so young that I think all competitors have the same goal which is to bring in mainstream users. This is a net positive over all for crypto. I think competition will heat up more in roughly 6 months as usability increases and more users begin to enter into crypto. This will then center around a permissionless nature, cheap transactions and the most sticky UX.”


With their current team and roadmap in place, Flux Protocol is by any measure, well on its way to position itself nicely within this industry.


Behind the Scenes

To any Flux community member, it was apparent that the Flux team limited their engagement with the community over the course of the last couple of months. The reasoning behind this is that there were many fake Flux Tokens listed on DEX’s with legal concerns capable of interfering in project development.


“We have been purposefully toning down community engagement as so many Flux Tokens were listed to impersonate the project, so we decided until initial launch we would maintain a lower profile. Now that we are heading to mainnet with the full product for testing we will also begin to have our development and team updates live to bring more transparency”


Until the initial launch—which is what they have been busy preparing for in silence—the team has been maintaining a lower profile: However, such engagement levels are expected to change as the team is heading to mainnet with the full product cleared for final testing. Flux will also begin to publish protocol development and team updates to provide the community with more information and insights into the growth of the protocol.


Full Transcript of the AMA


When moon?


No comment lol


What are your thoughts on the traction seen around prediction markets during the election?


After building in the space for a couple years it was really awesome to see prediciton markets take the main stage in be featured so prominently in the US election. I think this is only the beginning and there were a lot of hinderences holding back serious usage, but I think Flux will be primed for upcoming markets around politics


Release date for scalar markets?


Categorical and binary mechanics are live on mainnet today and testing with real money starts on Friday. The scalar mechanics are very simple to implement so likely over the next few weeks to get that live.


Wow, testing with real money on Friday?


Yes at the beginning it will be capped usage to ensure we can refund any funds that could be at risk


Will you have any form of incentivized testnet/ community participation ?


There will be incentives for early usage of the Flux App on mainnet


What was the result of the Quantstamp security review?


The security review found a few issues with varying levels of severity that are resolved now. Our engineers are finishing up rewriting the code base to include better in code documentation so the protocol is easier to iterate on top of. This will reduce time in future iterations and audits


Do you feel any pressure from competitors in a way that you need to move fast(er)?


At the moment the market is so young that I think all competitors have the same goal which is to bring in mainstream users. This is a net positive over all for crypto. I think competition will heat up more in roughly 6 months as usability increases and more users begin to enter into crypto. This will then center around a permissionless nature, cheap transactions and the most sticky UX


So I assume that Flux is moving from building quietly to full speed ahead? Marketing, bizdev, etc etc?


Yes, we have been purposefully toning down community engagement as so many Flux Tokens were listed to impersonate the project, so we decided until initial launch we would maintain a lower profile. Now that we are heading to mainnet with the full product for testing we will also begin to have our development and team updates live to bring more transparency.


What will be the initial liquidity programs on Flux?


We are launching with several liquidity mining programs. The first program designed for short term liquidity management will be a KPI based program that rewards LPs for the time and amount of liquidity they provide. We will announce more details over the next couple weeks on the launch of this program, but so far we have $5m in committed liquidity from investor and community participants.


When are tokens to be available for purchase?


The tokens aren’t available publicly yet, but its likely our distribution event will mirror $UNI more than a token sale


The political main event is over. Do you think politics will have decent volume until the next major vote?


I think this was the big event, but I don’t think that volume will entirely taper off. In such a turbulent time I think that we will continue seeing decent volume and usage surrounding politics. I think markets around the transition from Trump to Biden, corona virus, medicare, senate / house elections, supreme court decisions, and maybe a Trump arrest.. will have a lot of trading activity


What will be the initial liquidity programs on Flux?


We are launching with several liquidity mining programs. The first program designed for short term liquidity management will be a KPI based program that rewards LPs for the time and amount of liquidity they provide. We will announce more details over the next couple weeks on the launch of this program, but so far we have $5m in committed liquidity from investor and community participants.


How can new users get DAI on NEAR. I have my funds on Ethereum and want to use this on NEAR?


There will be two options for users to get DAI on NEAR.


Example — I’m a user on Ethereum and my assets are there


The bridge will allow existing users to bring their crypto from Ethereum to NEAR and will be possible in a super easy swap interface similar to Uniswap


Example — I’m a new user and have no crypto yet


NEAR wallet will feature a range of onboarding options like Wyre and Moonpay. New users will have the option to buy DAI and USDC directly on NEAR without leaving the Flux App.


Will there be any upcoming hackathons that you will sponsor?


Yes we will be announcing more hackathons soon and are also working on partnering with a “no code” platform which would allow users to build with the Flux SDK using drag and drop software to make apps, opening up Flux to non devs and designers.


What markets are you excited about and what apps are launching soon?


@EthanChiasson and @bridgecraven are going to be launching their initial products soon on Flux Testnet. ARterra allows any esports team to create markets and reward their users with NFT for participation. Stake.gg has created fully automated esports markets that allows users to input their game IDs automatically and resolve markets automatically. This is especially cool because markets are automatically market made on the users win to loss ratio. In addition to esports I think a huge market will be around wall street bets


These users spend all day speculating on the price action of stocks and Flux will allow these users to create individual markets on different aspects of companies. An example of this is: a user wants to go short on Tesla hitting their monthly production goal for vehicles


Is Flux hiring developers to work on the protocol?


Yes we are actively hiring engineers!


Here is a list of open positions https://www.notion.so/fluxmarket/Open-Positions-d850f1ecee4c413b80ec9f18f03bc61b


Check out our website here https://www.fluxprotocol.org/about


When can "The public" participate in the protocol?

- start making prediction markets

- Bet on a prediction

- Provide liquidity

- Other?


We will likely stress test the protocol for 1-2 weeks while slowly ramping up users — starting with Flux team, then NEAR team, then existing investors. Then we will onboard approx. 100 people in a batch. The idea is to make sure we can refund this liquidity if something goes wrong with the NEAR wallet or the bridge, etc. Once this process is finished we will start onboarding users and make it open to sign up. We just want to make sure the User Experience is optimized so everyone has a great trading experience 🙂


The steps required to get to Phase 3 are to release the token for governance while doing one more full audit which will take approximately 1 month to complete. From here we will then have a community vote to upgrade to the Flux Oracle and token.


Can you ELI5 what you mean by trading? Prediction markets, we predict and what do you mean by trading in this context?


In this context trading is taking one side or the other of a market. Let’s say the market is “Will trump concede the election?” by trading you are buying either yes or no shares in this market



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