Dive into the exciting world of SORA Synthetics! This AMA recap shines a light on key takeaways, particularly the integration of Band Protocol’s price feed on the Sora network. Learn about the upcoming milestones of this dynamic partnership directly from Mathieu, the Tribe Leader at SORAMITSU, during the recent AMA session.
For a more comprehensive understanding of this AMA session, you may refer to the original recorded video: Link
* Some parts of the following transcript have been edited for clarity while ensuring the original meaning is preserved
Find out more about Band Protocol’s integration with the SORA network here: Link
QUESTIONS AND ANSWERS IN LIVE AMA
Leon: Good day, everyone! I'm Leon, a community moderator at Band Protocol, and have been for several years. I'm thrilled to host another exciting AMA session today with SORA, a powerhouse within the crypto ecosystem. Joining us today is Mathieu, a technical contributor to SORA. Mathieu, welcome! Before we delve into SORA, could you briefly introduce yourself? How did you find your way into the dynamic world of crypto?
Mathieu: Thanks for the introduction! I'm Mathieu, originally from France and Switzerland. My journey into crypto began around 2018 during my bachelor's thesis. I was fascinated by the idea of using crypto to tokenize virtually anything, especially a system that could reward societal contributions. Although this concept didn't become the focus of my bachelor's thesis, my interest shifted to AI in subsequent years. By the time I reached my master's thesis, I blended both AI and blockchain, exploring how artificial intelligence, particularly reinforcement learning, could optimize the tokenomics of an ecosystem to promote growth. That’s how my deep dive into crypto began.
Following that, I joined Sora Mitsu, a Japanese company and a primary contributor to SORA. Currently, I serve as the Head of Product at Sora Mitsu.
Leon: For people tuning in, could you explain what SORA is and what you’re trying to achieve, what’s the vision here?
Mathieu: Yeah sure! So SORA is pretty huge. So overall SORA is more of a new economic system that is aimed at creating a self-custodial financial system that would enable and foster sustainable growth. One of the central ideas is based on an economic theory by Richard Werner. It’s called the quantity theory of disaggregated credit. We do encourage you to read about this if you’re interested in economics, the TLDR is when you create new money in the economy, this obviously creates inflation because you increase the money supply. What Professor Richard Werner found out is that depending on the reason why you increase the money supply this has different consequences on the economy. Overall there are three ways or reasons that you could create new money;
You could create money to foster, for example, consumption. This is what happened during COVID-19 in the United States. Printing money to enable people to consume.
You can also create money for speculation on financial assets and this leads to asset price inflation and bubbles.
Both of these 2 create bad inflation. And the third reason is you create new money to fund projects that want to create new products or services. In this way, you create new money in the system so you create inflation but on the other side you add value to the economy hopefully you know by providing new goods and new services. So the idea of SORA is to, first of all, provide the financial infrastructure to have a self-custodial and decentralized economy where teams or builders can make proposals to create or produce new services that would add value to the economy. From those proposals, it’s then for the SORA community to vote on where they want to fund to create new money to fund those new products and services. That’s the main idea.
Leon: Thank you so much for the explanation, That’s an ambitious vision! Now that we covered the formal intro. Let me do a brief overview of the integration between SORA and Band Protocol as a whole. Band protocol has been a forefront oracle solution for quite some time now and happy to be helping out SORA with their SORA Synthetics asset launch on Polkaswap.
SORA caters to Band’s oracle feeds for accurate price data on the underlying asset of their synthetic tokens. This is obviously a crucial step in enabling synthetics on Polkaswap. For people that do not know what synthetics are, mind explaining this to our audience Mathieu?
Mathieu: Yeah of course! So on SORA Synthetics assets are assets that are pegged to an index and are fully collateralized on the chain. The index to the peg of the synthetic assets is the index that we receive from Band Protocol. So I think we can go over some of the indexes that we receive a bit later. Then all of those synthetic assets are backed by 1 token, which is our platform token called XST which stands for SORA Synthetics.
To give an example; if you have 100 synthetic dollars, those synthetic dollars are then pegged to the value of the US dollar. But it doesn't mean that you can redeem 100 XST for 100 USD dollars. It means that you can redeem the 100 XST USD for a hundred dollars worth of XST, which is the platform token.
Leon: Totally clear, thanks for the explanation! You know how Ethereum has a synthetics platform called Synthetix, it’s nice but it costs a lot in terms of gas fees and runs slow. Great to see alternatives being built here where we can help in shaping things moving forward. I know that this has been in testing for a long time, so glad to see it finally being in production. Any talks on how the implementation went between both teams involved?
Mathieu: Yeah! I think it went pretty great between both our teams. Early on we had a talk with some of the Band team to agree on the basic terms and contracts for the implementation. The Band team then provided us with all the details of implementation that we should do on our side to support and receive the oracle feed. The back-and-forth communication was very friendly and easy. This helped streamline the implementation and fix some issues. Obviously, we’re all doing new technologies so we cannot get everything.
Leon: Coming back to the integration between Band Protocol and SORA, can you share with the audience the next milestones the SORA team is planning to work alongside Band?
Mathieu: Yeah that’s a good question. We briefly discussed it with Ben and Shine today when we met. Well, I guess the lowest hanging fruit let’s say in terms of the next steps together would obviously be to expand the offering of synthetic assets that we provide. We’ve already added 13 new synthetic assets and we gathered some really cool propositions from our community about which synthetic assets they eventually would like to see on Polkaswap. This is definitely something we could look into to add new synthetic assets even if they are not available yet on the BandChain then we discussed how we could support your team to help us provide those new synthetic assets.
SORA is a new economic order for the world, aimed at high growth and empowering human progress. The SORA network includes interoperability with the Polkadot and Kusama networks, as well as the capability to bridge external blockchains (like Ethereum) to the Polkadot ecosystem.
SORA 𒀭 Community:
About Band Protocol
Band Protocol is a cross-chain data oracle platform with the aspiration to build high-quality suites of web3 development products. The flagship oracle solution aggregates and connects real-world data and APIs to smart contracts, enabling smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle.
More about Band Protocol: Linktree