Key takeaways
- Roseon Exchange is launching a perpetual derivatives DEX with governance token and plans to support up to 50x leverage for traders.
- The platform is migrating infrastructure to Arbitrum layer 2 to reduce fees and improve transaction speed for derivatives trading.
- RoseonPass NFTs will provide utility including fee discounts, avatar support, and higher referral commissions on the exchange.
- Token swap from original Roseon token to new governance token is planned within three to four weeks with platform launch within four to six weeks.
- The shift to a derivatives exchange addresses revenue challenges from the previous DeFi staking model and allows trading during bear markets through shorting.
From DeFi aggregator to derivatives DEX
Ashton Addison: For those unfamiliar with Roseon, what have you built and why did you change direction?▶ 00:46
Allan Ta: We met in 2021, when we launched the Roseon app. The idea was a mobile, user-friendly DeFi aggregator. DeFi was new back then and quite dangerous, so we wanted to bring all the legitimate DeFi applications and services into one mobile app. Two years on, we've fully developed the app and met all of our roadmap commitments. Then came the fall of FTX, which dragged the entire market down. We love to build applications and communities, but our community and our investors were hurting, and we wanted to do something different. So we saw the opportunity to build a decentralized exchange. We're introducing a new token to replace the old one, and the launch should happen within weeks.
Ashton: What is the positioning of the new exchange, and what do traders want from a DEX right now?▶ 02:52
Allan: There are two key parts. The first is governance. Our current Roseon token is just a utility token, which is why we're swapping to a new governance token. We want to give power back to our community. For example, we launched over 30 IDOs on our Launchpad last year, and we wish we could have created a DAO that let the community vote on which projects appear. The second is that we're launching the perp first. It's a derivatives platform, so you can long and short. In the 2022 bear market our revenue was very little, because we were a DeFi application based on staking, which is very passive. We wanted something more active that can weather a bear market. If it's a bear market, you can keep shorting and make money, and while you're making money, our platform makes fees. And if the bull market is coming, people can keep going long, and you can leverage your long at 50x, so you can borrow as much as 50x of your original position.
If it's a bear market, you can keep shorting and make money, and while you're making money, our platform makes fees.
Why Arbitrum, and when it ships
Ashton: Why Arbitrum, and how do you keep fees low for smaller traders?▶ 06:10
Allan: The landscape has changed. The L2s have proven themselves. Polygon has done very well, but then Arbitrum came out of left field and took everybody by storm. Because we're doing perp trading, every second counts. Fees on Arbitrum are extremely low and the chain is extremely fast at executing transactions, so we decided to move in that direction. We've already moved our mobile app and our infrastructure to support Arbitrum, and once the exchange launches within a few weeks, it will support Arbitrum immediately.
Ashton: Is there a specific launch date, and what is the timeline?▶ 07:54
Allan: We'll be making announcements this week about when the platform will be ready. I would say we'll be ready within four to six weeks. The new token is already going through audits, so the swap should happen within three to four weeks. We'll publish the full timeline this week, and I believe once everybody knows we have things in place, it will bring a lot of confidence back to the community.
Token swap and the Roseon pass
Ashton: What is the Roseon pass, and what value does it give holders?▶ 08:47
Allan: If we launch or sell any NFTs, they have to have utility. Roseon has two applications: the mobile app, which is a DeFi aggregator connecting to DeFi services, and now the perp DEX. The pass gives you access and fee discounts. It will support NFT avatars, and it brings referrals and affiliates with higher commissions. There's a lot of utility, and you should be able to use it across both applications.
Ashton: How will the swap to the new token work for current holders?▶ 10:35
Allan: Every token holder gets a one-to-one swap. We always think about our original investors and our community first. If you hold your tokens in our mobile app, you don't need to worry about anything. If you're staking in the app, it happens automatically and your rewards are updated with the new tokens. If you hold tokens in your own wallet, we'll provide a guide so you can use our swap portal to swap manually. We're also working closely with the exchanges that list us, such as MXC, Gate and KuCoin, to make it seamless. The key benefit of the NFT pass and the new token is higher APR when you stake. If you're already a holder, you probably have VIP status in our current app, and that carries over. We don't forget that you were VIP one, two, three or four.
Because we're doing perp trading, every second counts.
Building through the bear market
Ashton: The app is available in the app stores, which is unusual for a DeFi project. Who is using it?▶ 13:06
Allan: It's on the Apple App Store and on Google Play. We have more than 300K downloads and a 307K user base, all over Southeast Asia and all over the world except the US. We've been around for a while, and I think that's why we had such a positive reception from the Arbitrum community. They had never heard of us, but when we committed to joining their community and they read our background, they said these guys have been around forever. During the bear market we were heads down, building and building. We did not give up. We've seen many cycles, so we anticipated this and made sure we played the long game.
This interview has been edited for length and clarity. Recorded March 2023.
