Stay up to date on all things crypto and blockchain

Token Daily is a place to discover trending news and products in crypto and blockchain.

Q&As with Joey Krug, Co-CIO at Pantera Capital

Pantera Capital's Joey Krug (who's also an Augur co-founder) will be answering questions at 11:30am PST.

posted 10 months ago

with or if you'd like to join the discussion.
Andrew Macdonald
What sort of liquidity can Pantera commit to offering on the marketplace in the first month after go-live?
8
pkan21
@macdonaldcrypto @joeykrug makes sense. By that logic, is it in Pantera's best interest to draw users to the platform?
1
Joey Krug
@macdonaldcrypto Depends how much is available on the other side + our infrastructure, etc. unclear even to me at the moment! We're all entering uncharted waters here
0
Andrew Macdonald
@macdonaldcrypto @joeykrug Thanks Joey. It's definitely a chicken and egg type of problem - users want liquidity to participate, and platforms need users to create liquidity.
0
pkan21
@macdonaldcrypto @joeykrug why not make 2 sided markets and be the liquidity provider on either side? much like a market maker does in traditional markets.
0
Joey Krug
@macdonaldcrypto @pkan21 Sure, just saying it doesn't make sense to put $1M in orders if there's only $250k at demand, gotta scale up
0
Yasmeen Drummond
@macdonaldcrypto @pkan21 That's a cool idea. Not sure if they do that.
0
Myles Snider
When will Dai be added as a currency on Augur?
4
Joey Krug
@myles_snider Hopefully in v2 release!
1
Soona
Thanks for joining us today, Joey! Going to kick off the thread with a common question people have about Augur - what have been major bottlenecks in getting the product launched?
3
Joey Krug
@soonaorlater Basically building on such a nascent infrastructure has taken a lot of time. In 2015 we published an alpha, in 2016 we published a beta, and in 2017 everything on the contract side had to be rewritten because we found a bunch of vulnerabilities in Serpent. Another factor is writing secure dapps on Ethereum is *really* hard. It's like if NASA had to publish all the code for its rockets out in the open, and *anybody* could try to send commands to their rockets mid flight. So we've taken a lot of time to do a lot of audits, bounties, static analysis, etc. of the augur contracts. Afaik we have the largest bounty for a critical vulnerability of anyone, in crypto and outside! A final bottleneck is making a decentralized UI is *really* hard without actually compromising on decentralization. And on top of that, augur is just a complex venture. It's a market platform that allows other people to create their own markets, speculate on not just long/short but also multi outcome events, and a solution to the oracle problem. It's a lot of work! It took Robinhood 3 years to release a web UI, and they didn't have to build the financial infrastructure from the ground up doing so [I love Robinhood btw]
4
Dave Goldblatt
@joeykrug is there anything on the ether roadmap to ease writing secure dapps on Ethereum? Seems like a large issue - not sure if ether core is thinking about this
0
Blain Rethmeier
Hi Joey! Where can people go to download Augur and start making markets, participating?
3
Joey Krug
@BlainR augur.net + click get started! It won't truly be live until later this evening though once the rep migration finishes
0
nic carter
Is a hot dog a kind of sandwich?
3
Joey Krug
1
PA
@nic__carter do you eat a hotdog like a sandwich?
0
nic carter
0
Uliana Musikhina
Hi Joey, thanks so much for taking the time and making this Q&As! I have a question for you: at a high level, what problem is Augur solving?
Thank you!
2
Joey Krug
@ulianamusi Augur is a platform for people to create prediction markets --- https://medium.com/@AugurProject/augur-master-plan-42dda65a3e3d goes into a lot more detail on that
0
Dennis Stücken
How is the amount of staked REP thats distributed to the "winner" exactly calculated?
2
Yasmeen Drummond
Where is the best place you recommend people buy rep?
Where is the best place to store it?
2
Joey Krug
@Yasmeen-Drummond Best place to store it is cold storage / a hardware wallet like ledger or trezor
0
schlegde
Hi Joey,
Looking forward to actual using a proper dapp! 2 Qs:
- Will there be a smooth integration with Dapp Browsers like Toshi and Status, when?
- How is it planned to handle transactional capacity limits on Ethereum short and long-term?
2
Joey Krug
@schlegde

- Yeah eventually, not sure on timeline. Augur requires running an additional augur node, which toshi/status don't at the moment
- 0x style trading is one approach, longer term we need real scalability tech, which is a couple years off IMO. We're looking at platforms like Thunder as well
2
Twigwam [Ether.gush.hose]
What are you most concerned about in regards to releasing a decentralized prediction market to the masses?
2
Joey Krug
@twigwam Security of the software to be honest, which is why we have such a large bug bounty program!
1
Twigwam [Ether.gush.hose]
Can/Will Augur use Layer 2 tech like Plasma?
2
Joey Krug
@twigwam Yeah, we're looking at a lot of scalability tech both from Augur, and also investing in it from Pantera
1
Shiv
How did Augur manage the capital raised during the ICO? How much is still in ETH and how much did it sell to cover expenses?
1
Toni Gemayel
Do you think Prediction markets *have* to be decentralized to succeed?
1
Joey Krug
@tonigemayel Yeah I do. I think there's not any way to get them cheap enough, open enough, global enough, and for people to create their own markets without a ton of work w/o them being decentralized.
1
Shiv
What contributions to the greater ETH development community (if any) were made during the development of Augur in the form of tooling/libraries?
1
Joey Krug
@theshivpat Solidity compiler audits, Serpent compiler audits, keythereum, a bunch of the ethereumjs tooling / rpc stuff, ethrpc, tons of pyethereum bug fixes / improvements / maintenance, the initial ethereum gas limit of pi million [augur contracts wouldn't fit with an only 1M gas limit], and a ton of other stuff I'm probably forgetting at the moment!
2
Vance Michael
Beyond how markets are broken down on the platform, what does your segmentation of end markets/use cases/customers look like, how has that evolved over time, and how do you allocate time/resources/liquidity to pursuing these opportunities?
1
Vance Michael
Are you pitching institutions to bring liquidity to the platform? What does this pitch look like when these institutions are SMEs and likely to start evergreen markets vs. bringing liquidity to pre-existing markets?
1
Joey Krug
@Vance-Michael No, that'd be up to market creators who are actually creating prediction markets using Augur. Augur itself is more like bittorrent / Ethereum. It's a protocol and the Forecast Foundation simply develops it. For profits on top could do things like this, or go after end markets /use cases / consumers, etc. but the Forecast Foundation itself doesn't
0
Erik Torenberg
How do you think about go-to-market?
1
Joey Krug
@eriktorenberg I think it'll be slow in the beginning and grow as Ethereum scales, right now Augur can't handle high trading throughput because Ethereum itself is pretty slow.
0
Brett L
Do you think there will be a winner-take-all prediction market application? Please discuss your views on barriers to entry and the potential for network effects.
1
Joey Krug
@lyonsbr2 Probably there'll be winner take all apps on top, I think markets in general have naturally strong liquidity effects which lead to strong network effects because liquidity begets liquidity. So for Augur the protocol, it's a global trading platform, most platforms have segregated liquidity
1
Brett L
@lyonsbr2 @joeykrug Thanks Joey - I agree. How likely do you think it is that Augur creates a network effect? Do you have views on how strategy (at Forecast Foundation and broader community) can help drive a network effect? (e.g. marketing, product updates, being first-to-market)
0
Ankit
What are your views on recent Crypto Ban in India? Do you see the same happening in any other major economies by the end of this year?
1
Joey Krug
@Ankit-Kumar-Singh No strong view on it, I think some countries will either ban or view blockchain as a competitive advantage and let it flourish, and a majority of countries won't do anything
0
Joey Krug
Heading out! Feel free to ask additional questions in discord
1
count bitcoin
how does the mainnet launch effect rep token holders who want to bet on prediction markets in augur?
0
count bitcoin
what are some examples of high volume predictions? which predictions standout from what youv seen in the test markets?
0
Edward Swanson
When will the non-rep holding public be able to start making bets?
0
Joey Krug
@Edward-Swanson This evening
0
Varun Deshpande (Nuo)
If the peers dispute the occurrence of an event which is being predicted, how would be a peer to peer oracle solve that dispute. Wouldn't the peers vote for what profits them instead of the truth?
0
Joey Krug
@thebitsian There's not a great short answer to this question, http://www.augur.net/whitepaper.pdf has the long answer. A sort of tldr is that there's a larger financial incentive to vote for the truth than what profits one side in an individual market
0
Varun Deshpande (Nuo)
Why was there a token migration for the mainnet launch if REP is still ERC20 and Augur is built on top of Ethereum. This was quite confusing.
0
Joey Krug
@thebitsian Because the mainnet rep used in augur is more complicated than just a simple erc20 token
0
Varun Deshpande (Nuo)
Thanks for the answers. Huge fan of products that eventually go live on mainnnet ;)

On a side note - we do decentalised peer to peer lending using https://lend.getnuo.com (mainnet). Can a loan repayment/default event become a prediction market on Augur.
0
X