If you want to know more about pursuit of privacy :
Discord > https://discord.gg/3vHm7JzH
Telegram > t.me/pursuitofprivacy
Mr Kwibs (Pursuit of privacy) : Can you briefly explain the history of Haven and its manifesto?
xKleinroy (Haven): Haven was started in early 2018 by two anonymous developers with the aim of delivering a stablecoin that offers user privacy.
The codebase was forked from Monero, which is considered to be the gold standard of privacy coins. The development reached early testnet where they came up against challenges beyond their knowledge.
The project was briefly abandoned before a group from the community stepped up to take over the development work. It included several highly experienced mathematicians and developers who, after 18 months of hard work, delivered the world’s first (and only) private stablecoin to mainnet in July 2020.
This is the core product of the Haven ecosystem and is under continuous development and refinement as the network and crypto evolves.
Haven continues to be the only network of privacy focused stable assets available and is driven by a highly committed community of like minded people who believe in it’s importance.
Mr Kwibs : Thank you Roy.
Q2: What are your thoughts on privacy, and how can Haven be part of the answer to this issue?
xKleinroy : Privacy is about power. The power to share your information with who you want, when you want. It isn’t about evading membership to a functional society and avoiding social systems.
It’s about choice. It’s also a human right.
It’s also one of the biggest challenges facing crypto today! We don’t want to sound like we’re catastrophizing but a lack of privacy could cause significant disruption to mainstream projects like ETH, that is unless they respond to the issue of complete immutable transparency.
There is currently less privacy in crypto than in the traditional financial systems – Think about this – Your bank provides more transparency than most blockchains.
This leaves you open to overreaching regulators and scams, and even being penalized in the future for something which is okay now, but becomes prohibited in the future.
A lack of privacy is dangerous, it really is that simple. But you guys know this, we’re preaching to the converted.
Haven takes the need for privacy one step further and combines Monero-based privacy with a suite of xAssets that track the price of their original counterparts.
The most widely used of these assets is xUSD. It provides a safe and private storage of value, without the volatility associated with crypto price swings.
You can also mint xAU, xAG, xBTC, xUSD, xEUR, and more, in the privacy of the Haven vault.
The vault provides unlimited liquidity without slippage.
Mr Kwibs : Yeah thats right, Im glad to read we share the same goals regarding privacy. I find the idea of private stablecoins very interesting. Lets dive more into that.
Q3: Decentralized stablecoins, and even more so if they are completely anonymous, include significant risks of price and supply manipulation. What means have been put in place to combat these risks?
xKleinroy : The Haven project has a community lead, decentralized working group that discusses and recommends changes to the tokenomics that support the mint and burn process.
This was put into action recently with changes to mint and burn lock times and which price a user gets when they convert xAssets in the Haven vault.
This team is super smart and acts in the interest of the project.
Mr Kwibs : Thanks once again.
Q4: I think decentralized stablecoins are still in the experimental phase. Don’t you think the story that happened to LUNA/UST can also happen to you? A discreet but major manipulation, an attack on the XUSD and an uncontrolled increase in the supply of Haven and finally a suppression of the price of XHV?
xKleinroy : Of course, the whole of crypto is still very much in the experimental phase (even Bitcoin). Haven has it’s own set of challenges with regards to potential inflation and manipulation but also has some key differences from Luna/UST.
Firstly, the ‘risk-free’ 20% APY that was being offered on Luna was obviously not a sustainable financial model and is something that is not available on Haven.
There is no arbitrary cap on minting for Haven, that in turn incentivizes traders to always arb the peg back to around $1.
In combination with long lock times for conversions that help protect the network from quick bank runs as well as utilising a 24MA for conversion rates it reduces the likelihood of Haven repeating the unfortunate collapse of Luna/UST.
We are, of course, actively discussing the Luna situation and looking at any potential refinements that could be made to further strengthen Haven.
Any recommended changes will be presented to the community for feedback before being implemented.
Mr Kwibs : Thanks for explaining that. I’ve seen a lot of FUD going around lately. Pretty sure many people we’re looking for these answers.
xKleinroy :Hopefully we can spread the word.
Mr Kwibs : We will for sure👍
Q5: Can you explain to us how price oracles work on the Haven Network? It seems to me that the price is provided by Chainlink. Wouldn’t it be more interesting if the Haven nodes could transmit this prize oracle? Are you looking for a way to stop depending on Chainlink?
xKleinroy : You’re right, we use Chainlink to get average prices from our exchange partners.
Chainlink provides a great product right now but there is always the potential for the community to decide they want to incorporate another oracle as a backup or even as the primary option.
Mr Kwibs : Q6: The price variations of XUSD are large compared to other (centralised) stablecoins and the transaction volume low. What means can you put in place to encourage the adoption of XUSD and limit price variations?
xKleinroy : xUSD has not seen the same level of adoption as UST. It did not make wild promises about guaranteed APY and beyond storing value, it is without significant utility right now.
Our launch on the THORChain decentralized cross-chain swapping service will change all this. It will make passive income possible by providing staking and pooling opportunities.
That’s the real goal right now.
We also have a WooCommerce plugin for HAVEN xUSD and we’ve been added to Cryptocurrency Checkout. As more users start to hold, more merchants will accept it, giving more users a reason to hold, and so on.
Network effects at their best.
Reach is important too, and we’re working hard to share the Haven message to bring users to the protocol.
Haven’s goal is to provide a long-term solution for private wealth storage and as such it is no surprise to see a slower, more organic growth than many other protocols.
Mr Kwibs : Of course this one is a bit ironic regarding UST currently😆
xKleinroy : Just a bit, lol. We are however very much looking for the right kind of adoption.
Mr Kwibs : So many projects think its a sprint. Glad to see you guys are running a marathon.👍 Sustainability is all
xKleinroy : Definitely.
Kwibs : Q7: Creating a decentralized and anonymous stablecoin is one of the major and most difficult challenges in cryptocurrencies. When we see the collapse of the Luna/UST and the major risks for the market (even if it is an algorithmic stablecoin). It’s very complex: adjusting the economic model (tokenomics supply), guaranteeing anonymity with exceptional developers. What skills do you have in the team, and how do you plan to develop the team, improve the network effect to attract the best to the Haven project?
xKleinroy : We have a broad range of skill sets among the contributors.
The core code has been open sourced in order to allow more eyes on the project and for more developers to be able to contribute.
We are in the process of building a jobs board and Haven Improvement Program in order to attract more developers.
There are many different aspects to the project and a large number of community members have already stepped up to form working groups, contributing to future governance, economic modelling and other development goals.
Mr Kwibs : Professionalising all the way I see. Great.
Q8: What is the reason Haven chose to fork from Monero over other privacycoins? Could the decentralised stablecoins feature be built directly on Monero?
xKleinroy : Monero is widely considered to be the gold standard for privacy coin projects.
It has a long history and a large contributor base that Haven can benefit from.
It was felt that Monero’s approach to privacy with L1 private-by-default was the most effective to protect Haven users from malicious actors.
In order to build a stablecoin on Monero directly, you would need to be able to pull a price feed from an oracle in order to price peg it.
This is what Haven has done so I’m not sure there would be much benefit to Monero doing it in the future.
Mr Kwibs : Q9: We often talk about the risks of attacks of low capitalization POW projects. What are the defenses implemented to avoid attacks on the mining network and that the exploit you suffered some time ago does not happen again?
xKleinroy : We are currently reviewing our mining algo, and we are hoping to make it more resilient and to be ASIC resistant.
I will have to come back to this question in more detail as I’m not an expert in this field.
Mr Kwibs : Thats alright. Thanks Roy.
Q10: Governance is a complicated point in crypto projects. Between « corporate » projects and « community » projects, it’s almost philosophical. Can you tell us about the history of this process of establishing community governance, and where you are currently in the working groups?
xKleinroy : Decentralization is not binary, there is a scale. From community anecdotal community consenses to completely decentralized DAOs. Even with DAOs such as DOT committees exist at the top of the with the power to delay and even stop the desire of the holders. Projects also become centralized around key opinion leaders and influencers. Put simply, decentralization is not simple.
Haven has been on a journey with this and would not have survived if members of the community had not chosen to put themselves forwards to support the project in a way that at times may not have been comfortable for fans of decentralization.
In this respect, we’re the same as almost all coins at a similar stage in their lifecycle to Haven.
Up until mid-2021 decisions were made through informal and anecdotal processes with the Haven community. The project’s influencers and contributors would listen to community feedback, make recommendations and enact them if consensus was obvious from the holders.
The project has a good track record of this. If holders disagreed, the option remained to vote with the order book and sell (or simply not buy).
In mid-2021, core community members and contributors started to formalize this process.
The first steps were formal off-chain votes, where holders could register to vote (anonymously) and vote for the option that they believed was in the interest of the protocol. Since then, the decentralization process has made significant steps forwards.
There are several working groups in effect that are comprised of community contributors and devs, such as the Outreach working group, the tokenomics working group, and the decentralization working group.
Importantly the decentralization working group is creating more robust structures, systems, and processes to define how the decentralized organization should happen.
The documents to support this are due to be released very soon.
Mr Kwibs : Thanks for your extensive answer Roy. Decentralisation is not a simple task to accomplish indeed. Im looking forward to the documentation that is about to get released.👍
Q11: We dream of being able to pay directly in stores with anonymous crypto, without anyone being able to know everything. Without KYC. What are the solutions currently offered by Haven and does this actually allow you to be untraceable? Is it an impossible dream?
xKleinroy : Yeah, as we said earlier, we already have a Haven WordPress WOOCommerce Plugin (for those that don’t know WordPress is one of the most widely used website builders in the world).
We’re also up and running on Cryptocurrency Checkout.
Personally, I don’t think it’s an impossible dream.
It’s simple commerce, where goods are exchanged for a promise of value. The challenge is to match two parties who agree to this promise.
As adoption starts, on and off ramps will be more available, and swapping services and exchanges will add Haven to their networks. Opening the door for digital, private transactions.
This is part of the dream – Let that sink in.
A currency that holds value that can be used as a recognized tendor for the exchange of goods and services.
All in private – No one is going to know!
Mr Kwibs : Yeah especially the off-ramp is an issue for many privacycoins (even XMR). Hopefully we can have a proper infrastructure regarding non KYC on- and off-ramps in the near future!
xKleinroy : The more adoption privacy coins get, the easier it will be.
Mr Kwibs : Working together with companies like CC Checkout is key to adoption. So very pleased to hear you guys work together with them.
Now lets move forward to a question regarding THORchain. Guess a lot of people are curious about that.
Q12: You are currently working on an integration with the ThorChain project. What is the strategic objective of this integration for the Haven network?
xKleinroy : You can ask Eric Vorhees about this.
THORChain and Haven working together is one of the most exciting concepts in crypto today. »
This statement is not a shameless shilling. It’s a simple fact.
It will enable easy swaps, with good liquidity into a private stable coin.
Despite its failures for reasons unrelated to Haven, LUNA/Terra showed the unimaginable excitement and demand for stable coins. Imagine the uptake for this with the extra security and privacy features.
The supply of xUSD is linked to the mint and burn process, and as such, as the demand for xUSD increases, so does the demand for XHV, and we all know what happens when demand increases: the network prospers.
It’s a magnificent thing. THORChain will enable the project to service the demand.
THORChain could also offer a pooling opportunities various assets. For example xUSD:RUNE pairs would yeild good rewards, without the risk of price swings
Mr Kwibs : Q13: Do you already have development goals for the end of 2022 and so on? What are the next big things in the pipeline for Haven?
xKleinroy: The main focus for the project this year is the integration into the THORChain network.
For anyone who doesn’t know about THOR, they are building a native cross-chain swapping protocol and this will allow anyone to swap from say BTC or ETH into xUSD (Haven’s USD stablecoin).
This will open up huge opportunities for the entire crypto space to be able to simply access a private stablecoin from a wide range of other cryptocurrencies.
We are actively working on the governance and decentralisation of the project and already have several active community working groups looking at a range of aspects of the project to help strengthen and grow it. We plan to have a Council based governance in place by the end of 2022.
We are also about to start on the dev work for a wrapped token on the BSC chain.
We hope this will increase awareness and utility for the project and is part of the longer term vision for making Haven much simpler to access.
Mr Kwibs :Thank you Roy. Im surely going to follow the ThorChain x Haven collab closely over the next couple of months.
Then we move onto the last question already!
Last but not least:
Q14: The privacy sector is very competitive, like all crypto sectors. What is, for you, the place of Haven in this sector, what is the long-term strategy of the project to continue to exist as you have managed to do so far?
xKleinroy: The crypto industry experiences forces and cycles like any industry.
As the market has developed, there has been a rush of interest, and talent and investment have streamed in promoting hyper-digital-innovation, but the reality that this is not an easy industry has disenfranchised an investment generation.
The recent macro market activity has literally set the wider space back a year.
Like a living organism, the Haven project has taken the steps to survive these hard times.
It continues to develop and grow during these tough times because of the principles that have always guided the project.
Private, Stable, Decentralized Money.
This really is a unique project, full of potential, Haven really can change the world.
Mr_Kwibs : Thank you Haven team for your precious time and all the extensive answers you’ve given us. It was a pleasure to have you guys as our guests.
Now, @tappyoak will ask 4 questions, person who answers correctly first on each question will win $50 worth of xUSD.
You’re only allowed to send your answer just once, people who spam will be disqualified and eventually banned.
IMPORTANT: After this there will be room for questions from the community. The Haven team will try to answer as many as they can.
The chat will be unlocked shortly.
Best of luck to all guys!👊
raja patel : As we know the conversion charges which are live on your main net ( such as XHV to xUSD) , my question is are you guys planning to reduce it
xKleinroy : The fees are already quite low, at 0.5%.
We would love to reduce them further, but this is the only source of income for the entire operation of the project.
Once the project is in better shape and hopefully larger investors come on board, we will be able to lower the fees.
Arne : What are the current partner exchanges for the price feed?
xKleinroy :We only use Chainlink for now, but we will be looking at alternatives.
Gomu Gomu No Mi : Why not build it on DERO ? Could even eventually build another type of private stablecoins with a olenthora of HE assets to back it up
xKleinroy :Dero is a project that started after Haven, they are completely separate from us.
There are no plans to collaborate.
Shaun Neal : I see, so your argument is that the utility of stablecoins is to facilitate money laundering? I think we kind of already know that, right?
xKleinroy : Not at all, we don’t encourage that, and we don’t encourage not paying taxes either.
There is a big difference in being able to do something privately and being watched by everyone.
Just because you have nothing to hide doesn’t mean that your life should be exposed for everyone to see.
And this is the TG for « pursuit of privacy », right?
This is what it’s all about, privacy, nothing else.