Loki Now on Binance DEX

Binance Dex Lists Loki

We’re extremely excited to announce that as of today (like, right now), Loki is listed on Binance DEX

That’s awesome! How’d you do it?

Glad you asked. To make it work, we’ve created B-Loki, a token on Binance Chain which is specifically engineered to provide a smooth and fast DEX experience where all trades are executed on Binance Chain. 

What’s the difference between Loki and B-Loki?

Good question. While we’re proud that Loki is fungible, private, and secure, B-Loki doesn’t maintain all of these properties. Rather, its main purpose is to allow trading on Binance DEX.

Cool. Can Loki be swapped for B-Loki?

Yes! Through the brand new Loki Bridge, which allows Loki to be exchanged for B-Loki (and vice versa) on Binance Chain. Functionally, the bridge lets you send Mainnet Loki coins and specify a specific Binance address where you will receive B-Loki. 

Okay. But is the Loki bridge secure?

Loki Bridge has been built with security in mind, and uses a mixture of best practice techniques to match the security of many of the top exchanges in the cryptocurrency world.

Phew. So how does the Loki to Binance bridge work?

Like an exchange, when you deposit Loki into Loki Bridge, you’re relying on that exchange to credit your account in order to trade on it. However in this case, as the bridge is crediting your B-Loki or Loki Wallet, you only have to trust the bridge with your funds while a swap is in progress. As soon as the bridge has finished swapping your coins, you have full control of them in your nominated wallet.

And it’s trustworthy?

We’ve sought legal advice on the creation and listing of B-Loki in order to make Loki Bridge as trustworthy as possible. After assessing the available options, the Loki Foundation has contracted the operation of Loki Bridge to a third party provider, Lunar8. JP from Lunar8 is one of our earliest investors and is a trusted member of the Loki community who has advised and supported us since Loki’s inception (in fact, before Loki was even called Loki), and currently runs several Service Nodes.

The Loki Foundation maintains full rights to audit the bridge at any time, and works with the service provider to ensure that the correct amount of B-Loki and Loki is being held on the bridge at any given time. The service provider may never use the Loki held on the bridge for any other purpose than usage on the bridge (except for fees), and must adhere to strict security policies set by the Loki team.

Great. How long does it take to swap Loki to B-Loki? And B-Loki to Loki?

On average, swapping Loki to B-Loki should take about an hour. This is how long it takes for 12 chain confirmations on the Loki blockchain, plus a processing period to confirm everything on the backend. This time may reduce after checkpointing is enforced on the Loki mainnet and has proven itself to be reliable.

Swapping B-Loki to Loki should be much faster and take about half an hour. Since Binance Chain has a low blocktime, it reaches finality very quickly. However, there will be some lag due to processing time on the backend of the bridge. 

It’s worth noting that not all processing happens automatically: the bridge operator can choose to investigate swaps as they happen to ensure that incoming and outgoing balances match. This may add additional processing time beyond the normal period – as much as 24 to 72 hours.  

Is Loki Bridge decentralised? 

No, however once you’ve crossed the bridge and have B-Loki or Loki, you have full control over your funds again with your own private keys. The only centralised part of the process is the swapping mechanism.

Hang on. Is this some grand plan for Loki to switch to Binance Chain?

Not at all. We’ve built Loki Bridge to allow users to access Loki from additional places (including Binance Chain), however Loki will continue running on it’s own mainnet – it is critical to keep the Service Node network functioning. 

We hope Loki’s listing on Binance DEX is music to your ears. It’s another step forward for us in offering the best experience for our users, providing another place to acquire Loki, and adding to our growing list of integrations and features on offer. Check out Loki Bridge here.

If anyone has trouble using Loki Bridge, please head to our Telegram or Discord for support.

Loki Foundation: Service Node Policy

At the latest board meeting of the Loki Foundation’s directors, I put forward a motion to increase the number of Service Nodes that the Foundation operates. Currently, the Foundation runs 15 Service Nodes, which accounts for ~3.3% of the total nodes on the network.

I have been doing some calculations regarding the long term viability of the Foundation’s current funding model, and by extension, the Loki Project. In my estimation, it’s possible the Loki Project could survive beyond its current funding based on the rewards it receives from the 5% block reward. However, in order for that to occur, the market conditions would have to be extremely favourable.

To reduce our dependence on extreme market performance, I believe the Foundation needs to have a larger pool of Loki that can be utilised in the long term. Our current $Loki assets are not very significant compared to the overall supply, and it gives myself and the board uncertainty over the viability of the current model. In order to address this, the Foundation needs to increase the amount of $Loki it earns over time.

Instead of simply increasing the Governance reward, I instead recommended to the board that we implement a policy of running Service Nodes. This way, the Foundation also provides the network with additional nodes to increase the overall capacity of the network, and is actually working to earn these rewards just as everyone else would. However, there are transparency issues around this approach, so to avoid misleading the community the board has decided that we will be changing our documentation to reflect the actual overall proportion of the block reward that the Foundation collects.

The Board has unanimously approved a policy to run up to 10% of the Service Node network on a 30 day average basis. For example, if there are 450 nodes on the network on average over the last 30 days, the Foundation will run no more than 45 nodes. This limit effectively means that the Foundation will be collecting 10% of the block reward, between its 10% share of the Service Node network, and the standard 5% governance reward. We will alter our existing documentation to reflect this policy update so that new Loki users are accurately informed on how much $Loki the Foundation collects.

If you have any ideas or concerns about this policy change, you can email the foundation directly at [email protected] or join us on the #governance channel on Discord.

Regards,

Simon Harman

Project Lead, Foundation Director