AMA Recap Crypto Library with ROXE


On 18th June 2021, ROXE conducted an AMA in the Crypto Library Community. Our guest is Josh Li. Lots of questions as usual from the Community about ROXE progress. The ROXE team took part in a very interesting AMA session which included introductions, questions from twitter, and a live AMA session with the Crypto Library community. If you missed the AMA in person, read this recap for a deeper insight into ROXE.

Let’s take a look at the most interesting points of our conversation.

Crypto Library Team : So, before we start the AMA could you please introduce yourself to our community?

Josh Li (ROXE) : Hi everyone, I’m Josh Li and I am the Chief Business Officer for Roxe, where I lead our go to market teams.  Previously I was the Chief Operating Officer for Selfiecoin, and before that I was an executive at Google and Google X, where I held roles across diverse businesses and geographies. Prior to Google, I held management roles at RichFx, nMatrix, Avery Dennison and Accenture. I have a BA degree from Harvard University in East Asian Studies and an MBA in Marketing from the Anderson School of Management at UCLA.
Crypto Library Team : What is the Roxe Payment Network? Can you describe its purpose?

Josh Li (ROXE) : Roxe provides a comprehensive infrastructure and rich ecology from the consensus layer to the application layer. Currently, it includes a B2C product, Roxe Pay, and two B2B products, Roxe Commerce and Roxe Instant Settlement Network (RISN), as well as the underlying Roxe module protocols and the hybrid chain Roxe Chain.
Roxe Pay is a smart payment wallet based on blockchain technology that provides users with optimal path payments, real-time cashback, deposit and debit, peer-to-peer real-time remittance, and crypto-IM pay-as-you-go micro-payments. Roxe Commerce is a merchant service platform that provides merchants with SaaS services such as e-gift card issuance, cross-border payment, and T+0 settlement, aggregated cashier network, and merchant management platform. Roxe Instant Settlement Network (RISN) is a peer-to-peer real-time clearing network consisting of banks, cross-border transfer (remittance) companies, payment service providers, digital asset exchanges, and Central Bank Digital Currency (CBDC) issuers. Our infrastructure is supported by Roxe Chain, a hybrid chain with high-speed, low-cost transfers, fast clearing, and cross-chain, cross-asset performance. Roxe Chain uses closed smart contracts to provide the corresponding clearing protocol and middleware components. Currently, Roxe Chain can confirm a block every 0.5 seconds, i.e. confirm a transaction as fast as 0.5 seconds. It can support at least 2,800 transactions per second and 240 million transactions per day. Currently, the maximum daily transaction volume of traditional payment is around 20 million, which is sufficient for the current Roxe network to support. For some of the technologies on the chain, Roxe has also applied for relevant patents.

Crypto Library Team : There are many blockchain projects in the field of payment and remittance. Taking a star project like Ripple as an example, what are the differences and advantages of Roxe compared with it?

Josh Li (ROXE) : Roxe has done a lot of precise research in the payments track, Ripple is a payment network controlled by a centralized node, and remittances are exchanged multiple times using XRP as the intermediary medium. Because of the over-reliance on centralized nodes (such as cryptocurrency exchanges), XRP may be at risk of being delisted because it is defined as “security”. The Roxe RISN business uses the CBDC model currently endorsed by regulators (e.g., the Office of the Comptroller of the Currency (OCC)). The remitter hosts the fiat currency in a local settlement node, minting a stable coin anchored to the local fiat currency and acting as a vehicle to complete the transfer, exchange, and settlement of assets on the Roxe Chain. For example, for the USD, the Roxe stablecoin that is minted is called “roUSD”.  The final redemption of stable coins and the “Last Mile” settlement of fiat currencies is done through the local settlement node in the recipient’s country. In addition, compared to Ripple’s use of XRP as an intermediate currency and the risk of foreign exchange loss caused by its price fluctuations, the Roxe network is based on the Roxe set of stablecoins (ie roUSD) as the remittance medium, backed by fiat currency 1:1, ensuring that users will not be affected by the risk of foreign exchange loss.

The part of the exchange occurs on the Roxe Chain main chain and the FX oracle engine does the price execution, feeding prices from the mainstream global forex market without the layers of markups from intermediate FX brokers, making Roxe products cheaper. Specifically, our pricing is divided into three parts: Send Fee + Currency Swap Fee + Destination Delivery Fee. Take the example of a “USD to Mexican Peso” transfer. The Send Fee is priced at $1.50 per transaction, the Currency Swap Fee is 0.08% of the send amount, and the Destination Delivery Fee is 15 Mexican pesos. If we send $500 USD, the total cost is only about $2.65 USD. This cost optimization is due to the reduction of foreign exchange fees and fixed costs for clearing services, and the data in-chain storage dramatically reduces the cost of data reconciliation and audit compliance. If you are interested in a deeper understanding, take a look at this article:
Crypto Library Team : I learned that Roxe also has many DeFi modules? Can you tell us more about them?

Josh Li (ROXE) : Here is a diagram of Roxe’s remittance path, and I will explain three of the modules in more detail.
  • Module 1: Roxe Payment Protocol
In the “exchange” business scenario of cross-border remittance, we adopt the Automatic Market Making (AMM) mechanism and borrow the Order Book model to upload the foreign exchange market price directly through the oracle engine, avoiding the intermediate markup of FX brokers and making the cost of currency exchange more favorable. At the same time, the exchange of one fiat currency with another is realized, and the liquidity of the exchange pool comes from the local settlement nodes and Roxe Corporation. roUSD is directly used as a settlement currency for payment and transfer business within the ecosystem.
  • Module 2: Gift cards, collocation, and micro-payment agreements
Roxe Chain technology powers the circulation of gift cards & points without any barriers in the Roxe Pay application. One feature of the Roxe Pay app is an innovative “gift card” grouping functionality using a smart contract to collect money. All information is available on the chain and is open and transparent. In addition, it also creates a micro-payment business scenario, for example, watching VIP videos, which can be charged by the minute through smart contracts and booked on the chain through the set of passes, and all the rights and interests in Roxe Pay are obtained by paying ROC. Finally, the Roxe Earn function on the app is actually LP mining.
  • Module 3: Daollar Protocol
Daollar is the world’s first self-contained blockchain economic system and truly stable central bank algorithm stablecoin protocol, a fundamental component of payments, as a universal medium for free, frictionless, real-time exchange and free global payments with national fiat currencies. The core of the Daollar protocol is to maintain price stability by adjusting the smart contract of the supply and demand algorithm to automatically expand or tighten the money supply, while Daollar is managed by governance token ROC holders. ROC holders in the community can perform community governance of the Daollar protocol, thus ensuring the stability, transparency, and efficiency of the protocol.

Crypto Library Team : What is the current progress of Roxe’s business?

Josh Li (ROXE) : Roxe’s business partners are primarily banks, cross-border payment, and remittance providers. Currently, Roxe has partnered with ECS Fin, a top banking technology service provider, to provide clearing systems for its bank clients. ECS Fin, founded in 1999, is a fintech company focused on process optimization, holds a SWIFT service license, and is one of the largest banking technology service providers, serving more than 220 banks. In addition, Roxe has signed formal partnership agreements with regional top partners such as IPay Remit, N2Xpress, BuyUcoin, Fairexpay, and Aberdeen to provide real-time remittance services. Roxe has also partnered with custody providers such as Onchain Custodian to explore the Roxe series of stable coins to explore more application attributes. In the future, our business team globally will continue to sign high-quality institutional customers. Currently, Roxe already supports real-time remittances in USD, HKD, and GBP, and will complete the connection to the Nigerian and Philippines markets soon.

Crypto Library Team : We see that there are multiple digital assets in Roxe’s business logic or in the entire Roxe ecosystem, can you tell us about these digital assets and how they are connected?

Josh Li (ROXE) : There are three types of digital assets within our ecosystem.
  • Roxe Cash (ROC) is the only token and governance coin of the Roxe Chain, and ROC is the only token that generates the algorithmic stable coin DO.
  • The Roxe version of a fiat currency is the fiat value carrier in the Roxe network. For example, roUSD, 1:1 mapping to USD, and roEUR is 1:1 mapping to EUR, etc.
  • Algorithmic stablecoin DO is issued only through pledged ROC, and maintains price stability by adjusting the supply and demand algorithm’s smart contract Daollar Protocol to automatically expand or tighten the money supply, while it’s pegged to USD stablecoin roUSD and pledged ROC and can be interchanged on the chain, mainly used as an intermediary medium for remittances in foreign exchange restricted countries.
These three assets have different roles within the Roxe ecosystem and serve different Layers. ROC serves as the consensus layer of Roxe Chain’s Gas, supports public chain operations, and is used in the creation of underlying Roxe business accounts and node elections. In addition, ROC is the only asset that generates the algorithmic stable coin DO, which is a functional stablecoin used in Roxe products, and can be used in Roxe Pay and Roxe Commerce as a payment currency, deposit, remittance broker, and enjoys platform privileges. In addition, we often use an interesting analogy when designing the project, ROC is like US Treasury (United States Treasury Bond), and DO is like US Dollar. Currently, ROC Token can be traded on several exchanges such as Bittrex, Bluehelix BHEX (formerly Hobbit HBTC), BKEX Global, Bilaxy, Uniswap, and Mercurity.Finance.

Crypto Library Team : How does ROC Token work? Are there any institutional investments? How is it distributed?

Josh Li (ROXE) : ROC Token is partly issued on the Roxe Chain public chain and partly issued on the Ethereum chain.
The total circulation of ROC is 100 million, 35 million of which are issued in Roxe Chain, 15 million of which are used for supernode pledge; 20 million are used for contract pledges and main chain operations. The remaining 65 million are ERC-20 Tokens, which are circulated in the secondary market, of which 25 million will be released gradually in the first 12 months. 40 million will be released after 12 months. The Daollar contract will execute the release, releasing 50,000 hardtops per day. The release of the contract is triggered by the market price, with an increase in price triggering the release and a decrease in price not triggering the contract. Currently, we are circulating in the secondary market with ERC-20 ROC, with 18 institutions participating, we will announce the specific investment institutions afterward. Please follow our telegram @RoxeChainGlobal to get first-hand information.

Crypto Library Team : What are your thoughts on the future of cross-border payment networks and what are your plans for the future of the Roxe project?

Josh Li (ROXE) : Roxe provides cross-border remittance services, creating data-based value for customers, reducing costs from 7% to less than 1%, improving the FX rate, and adjusting transaction time from 3–5 days to real-time. Cross-border or not, there is no difference at Roxe, it’s all about the peer-to-peer optimal path to real-time transfers, not just exchange rates. The same goes for the payment field, we combine the payment business with consumer cashback, social grouping; making payments more convenient, cheaper, and smarter. In addition, we have thought deeply about Roxe’s business. In fact, there are many additional points that we have not mentioned so far. Here is one example.  The Roxe ID is designed so that every customer using in-network payment and remittance has a unique identity that cannot be tampered with, replacing the complex and cumbersome messaging transmission in traditional business. Rather than perfecting the functionality of existing financial systems, Roxe has spent nearly two years building Roxe into a new, flexible, and highly scalable next-generation payment network. In the future, Roxe will continue to explore the flexibility and optimize pluggable interface technology based on the improvement of the functional modules mentioned above, so that traditional financial institutions can easily access and do not need to touch any cryptocurrency. Currently, our Roxe Instant Settlement Network (RISN) product is already live, and the Android version of Roxe Pay is inviting internal testing which will go live for public testing in Q2 2021.
Crypto Library Team : At present a lot of blockchain projects in the field of payment and remittance. Taking a star project like Ripple as an example, what are the differences and advantages of Roxe compared with it?

Josh Li (ROXE) : I think there are 3 main differences.  The 1st is that Roxe is faster than Ripple.  Let me find the details. My understanding is that Ripple has a TPS of 1000, where Roxe's TPS is 2600-2800. Ripple generates a block every 3 to 5 seconds, where Roxe generates a block every 0.5 seconds.
The 2nd difference is in the cost. Ripple partners need to pay a setup fee and annual maintenance fee, whereas Roxe does not charge our partners for that. In terms of the cost per transaction, we design Roxe to be very low cost, so the cost for our partners to send a payment on behalf of their customer should be less than 1% of the sent amount. The world's average is about 6.75% cost. The 3rd area is that using XRP, there is FX risk, since partners have to buy XRP in one currency, and sell it in another currency. For Roxe, we tokenize the world's fiat currency, so it's backed 1:1. For example, the USD fiat is tokenized as roUSD token. As a result, there is no chance for FX risk.

Crypto Library Team : Would you tell us which business scenarios can Roxe support now? In what industry can we see a mass adoption of Roxe technology in the near future?

Josh Li (ROXE) : Roxe is designed to be an alternative to the SWIFT network, so it can be used by any partners who send payments or remittances cross the world. Let me tell you about some of the business use cases. For a bank partner, they can allow their customers to send a cross border payment to other countries around the world. Today, users would need to use SWIFT, which takes 4-5 business days, and cost $25-$45 USD, which is slow and expensive. With Roxe, the payment should take seconds, and cost <$3 USD. We also work with remittance partners, as well as with B2B Payment Service Providers, so they can use the Roxe network to allow their customers to send payments. Finally, we are talking to Central Banks about using the Roxe network to issue their own CBDCs, which would help their economy grow, and bring financial inclusion to their citizens.
Crypto Library Team : Many projects rug pulled and exit scam recently. Why should investors trust your project not to do the same?Many projects rug pulled and exit scam recently. Why should investors trust your project not to do the same?

Josh Li (ROXE) : I think one reason to trust Roxe is the strength of our team. We have executives from top companies from around the world joining our company. The second reason is the strength of our partnerships. For example, a lot of the partners that we signed are "SWIFT Service Bureau" companies, where they provide a core banking application to banks and financial services companies from around the world.

Crypto Library Team : In the short term, we are continue to build out our partnerships from around the world. We've signed 19 partners globally, and will continue to expand that number. In the long term, we have lots of new product announcements, and we hope to partner with Central Banks to have them use our platform to launch their own CBDCs. One advantage of using our platform is that the CBDCs are interoperable.

Josh Li (ROXE) : What can we expect to see from this project in the short-term (at some point in 2021) and 2022 and beyond (long-term goals)?

Crypto Library Team : Focus on building and developing or getting customers and users, or partnerships?

Josh Li (ROXE) : Good question. We have different teams of people working on both. As you recall from the first image, Roxe has 4 layers. Two of the layers are B2B layers, where we work primarily with partners. The top layer is the B2C layer. So our BD team works primarily to sign up partners, while our B2C marketing and sales team work on acquiring end users.

Crypto Library Team : One of the tools that Roxe will have will be to be able to send money from anywhere instantly and at half price, could you tell us from which countries you can send and receive the money? Will it be possible to transfer Fiat and cryptocurrencies? What will be the percentage of commissions?

Josh Li (ROXE) : We are working hard to open up as many countries as possible. The initial focus countries are USA, Canadan, Mexico, Brazil, UK, EU, Nigeria, India, Philippines, and Singapore. However, some of our partners can cover other countries in Africa, Asia and South America. We can open those countries soon after, but our top priority is the first list of countries I mentioned.

Crypto Library Team : Can you list the killer features of #Roxechain  that make it ahead of its competitors? What is the competitive advantage your platform has that you feel most confident about?

Josh Li (ROXE) : The most important feature of the Roxe Chain is that it was designed and optimized for cross border payments. So the # of transactions per second is 2600 to 2800, and a block is generated every 0.5 seconds. This enables transfering tokens between nodes in the network at a very fast rate.