Recap of ONION MIXER AMA event held at AMA LOVERS CLUB
Date: Tuesday, 18th May, 2021
Time: 14:00 UTC
1st Segment: INTRODUCTION
Q1: Can you please introduce yourself and your background, also introduce the team working on ONION MIXER?
ANS: Hello everyone, me, an Onion! You can think of me as a person or as a team, and we’re made up of a group of geeks, experienced defi players and developers who admire and advocate true decentralized world and privacy protection in DEFI!
Our Onion members are mainly senior programmers from Funderclub, Personal Capital, Xapo, Blockai, Microsoft and other well-known blockchain enterprises. We are a completely decentralized organization.
Onion Mixer is the first decentralized protocol for anonymous cross-chain transactions on BSC.
Onion Mixer adopts a coin mixing approach that combines CoinJoin and zero-knowledge proof. It supports anonymous token transactions on both Ethereum and BSC. And by enabling liquidity mining, it also provides extra revenues for users.
The name “Onion Mixer” is to pay tribute to TOR (The Onion Router), the origin of cyber anonymity.
The word “mixer” vividly describes the working mechanism of Onion Mixer, that is, to mix transactions in the contract so that the links between deposit addresses and withdrawal addresses are cut off.
In this way, Onion Mixer manages to deliver private transaction services for users.
Q2: Can you introduce ONION MIXER,what critical problems does it solve that existing solutions are not solving and what’s the competitive advantage?
I want to explain this in simpler terms: the entire crypto world is actually recorded on chain, and we don’t know each transaction comes from who.
But there are a lot of centralized institutions and organizations in the world, such as centralized exchanges, such as some DEFI software, or some agencies, they will match our transactions with real people, trying to identify traders.
Some people are upset about this.
Most big whales keep worrying about being monitored by the market, more and more exchanges are associating an address with a person, and even using big data technology to track and analyze transfers from that address to see if that person has the potential to do or done something bad
This will bring distress.The crypto world, which is supposed to be decentralized and free, is being monitored by more organizations than ever before.
That’s why we exist!
Onion Mixer is based on the idea of mixing in Coinjoin, and the privacy of mixing coins is enhanced through zero-knowledge proof.The Onion protocol solves the problem of the lack of anonymity and privacy of crypto assets in the current blockchain.
You may have heard of other mixed currency projects in the market, which can be broadly divided into two categories — managed and unmanaged.
However, many managed coin-mixing services have all but disappeared after being fined or even arrested by the FBI and other agencies in the United States because their services are manipulated and help some bad economic activities.
But are coin-mixing services really just for illegal crimes?
Of course not.
According to our research, only 2.5% of mixing services from 2018 to 2021 are related to illegal activities. Most people use coin mixing services for the purpose of protecting their privacy.
Q3: Can you give brief description of your partnerships thus far?
TBH, we are deeply engaged in privacy transactions, so the partner is not particularly important for us, we need to let more people know about us, because we are solving the privacy transaction problem of hundreds of billions of dollars per year.
However, what I can disclose at present is that we have contacted the top DEFI platforms in BSC, such as DODO, DEGO, Pancake, etc., and have reached in-depth cooperation with them and they are very optimistic about our development and planning.
We are going to do a series of interesting market movements, please follow our official channels on Twitter and Telegram, so you don’t miss a lot of interesting events.
Q4: Can u explain more on zero knowledge proof ?
The implementation of zkSNARK zero-knowledge proof in the Onion Mixer protocol is as follows:
After the user puts the asset into the Onion Mixer pool, a string will be generated to the user ( the “zkSNARK proof”). Then, the corresponding hash value (or the transaction voucher) will be sent to the smart contract of Onion Mixer, combined with the user’s deposit.
After receiving the deposit, the smart contract will add the deposit certificate to the list of deposit users.
When the user needs to withdraw, he/she can perform the withdrawal in the smart contract’s deposit list by providing the zkSNARK proof.
The use of the zkSNARK technology satisfies the need of no disclosure of transaction details and the exact deposit amount. Even if the content of the transaction voucher is accidentally leaked, a third party wouldn’t know the source of the withdrawal.
Finally, the smart contract will transfer the funds in the account to the designated withdrawal address by verifying the zkSNARK proof provided by the user.
Zero-knowledge proof is a cryptographic proof that allows one party to prove it possesses certain information (or assets) without revealing that information.
For Onion Mixer, it is to prove that the user has deposited an asset in the smart contract and has never withdrawn the asset, and the proving process will not reveal the specific asset.
The zero-knowledge proof adopted by Onion Mixer relies on Merkle Tree to save commitment (the user transaction voucher).
The zero-knowledge proof code generated by the user’s transaction is represented by Note, including the transaction amount V and a random number. Note has two forms of expression:
one is commitment and the other is Nullifier. Commitment and Nullifier are both generated through different Hash functions. Commitment represents a deposit, while Nullifier represents a withdrawal.
For each Note, its Commitment and Nullifier are unique.
Because Commitment and Nullifier are the results of Hash, even if these two data are public, others cannot infer the connection between Commitment and Nullifier.
This is how to use zk snark proof to realize mixer.
Onion Mixer composes all Commitments (cm) into a Merkle tree When a user needs to withdraw a certain cm, a zero-knowledge proof must be provided to the Onion Mixer smart contract. Put more specifically, the user has a Note which can generate a cm, and this cm is on the Merkle tree with rt as its root. The same Note information can generate a Nullfier which has never been generated before. When withdrawing, the Sender sends the zero-knowledge proof to the Onion Mixer off the chain, and the Onion Mixer submits the proof-related information to the smart contract, once the smart contract verifies the information it would make transfer to the Receiver.
Q5: Can you give an overview of your Tokenomics, and the UTILITY of the ONION MIXER?
ANS: OMT is Onion Mixer’s governance token.
It serves the following purposes:
1. reward users
2. improve functions in the protocol
3. deployed on new public chains
4. adjust protocol fees
5. community governance
There are 100 billion OMT issued in total. The distribution plan is as follows:
1. Anonymous mining 70%: to reward users use Onion Mixer for coin mixing.
2. Liquidity mining 10%: To reward users who provide liquidity for OMT transaction pool from a third-party platform.
3. Team rewards10%: To rewards the team and products improvement as well as development, The probability of staying locked is high.
4. Presale investors 7%: To reward Onion Mixer’s early investors and TVL partners. 5% unlocked upon listing. The rest 95% will be released on a daily basis for 6 months.
5. Airdrop and marketing 2%: To support the ecosystem development and external collaboration. Unlocked as needed.
6. IDO crowdfunding 1%: For users participating in OMT crowdfunding.
In fact, our private investors’ unlocking rules are very harsh. But the fact that people are still investing in us speaks to the confidence that institutions have in us. We’ve just done a multi-million dollar private placement round these 2 days. IDO and INO will be launched soon.
2nd Segment: LIVE Questions
Q1: I think the Security is very important. Do you think #ONION MIXER system is secure enough from hackers? Does your project have a program that rewards individual vulnerability detection of the system?
ANS: Currently, our contract is in the audit process of Certik
In addition, we will set up a security reward when we go online,
These rewards will come out of our marketing partner budget, which can be followed by our announcements and community.
We are absolutely safe, and I say this with confidence because we have had a very successful experience.
Our code is tested by practice and time!
We have a lot of technical experience in previous projects, and we once launched an experimental product that reached $500 million in trade in two weeks without any publicity.
This experimental product has never encounter any problems, and we have all taken multi-signature wallets
It is difficult for hackers to steal assets
We will have a special section on our Gitbook to introduce our security. At the same time, we welcome the partners with technical strength to join us and contact us.
Q2: Marketing is a central element for every project, so that everyone knows the potential that a project can bring is vital to achieve the goals set. What is ONION MIXER strategy to attract new users and Investor to ONION MIXER and keep them long term?
ANS: Our economic model is more reasonable, and we have designed this model very philosophically. We are not a short-term shitcoin combined with the punishment mechanism of community consensus. We’ll cross more chains. More convenient and varied.
Our mixing effect is better, because our anonymous transaction mining reward = users’ daily transaction amount/total transaction volume.
In order to increase the share, users will repeatedly swipe transactions, which will help increase fee income.
Onion Mixer’s anonymous transaction mining mechanism is similar to the one in traditional exchanges. That is, every transaction made by a user on Onion Mixer will be rewarded by percentage of OMT tokens.
After each coin mixing service, Onion Mixer will charge a fee of 0.1% to 1% per transaction depending on the chain. 50% of this fee will go to the team, and the remaining 50% will be injected into the OMT transaction pool.
Anonymous transaction mining will encourage users to use Onion Mixer protocol more often for coin mixing. For a mixing protocol, high-frequency transactions mean higher anonymity; the fees charged from high-frequency transactions will be reinjected into the mixing pool, which contributes to improving the depth of the mixing pool and enhancing the anonymity effect.
In addition, unlike traditional transaction mining, Onion Mixer’s “anonymous transaction mining” incorporates an exit penalty mechanism to effectively curb the speculative behavior of short term traders and further guarantee the safety of transaction mining. This penalty mechanism also contributes to maintaining a stable market performance of OMT, guiding users to rational and sustainable investment, and guaranteeing the continuous and steady revenue growth of investment.
Q3: I could not see any information about your team on your website. You probably preferred your team to be anonymous. Is there a valid reason for your preference in an environment of increasing suspicion of anonymous teams?
ANS: We are in the development stage, and the official website will be online this week. No need to worry about our quality, we will publish the contract address as soon as possible. Currently, we have established contract audit cooperation with Certik, a well-known audit agency.
After the contract audit is completed, we will open GitHub and online IDO.
We expect to complete the first and second phases in 2021. 2022 Q1 to achieve the third stage, of course, there are DAPP using our agreement to mix the currency is also possible, but in 2022 Q1 we will let the Onion agreement and DAPP better link to improve the efficiency of DAPP developers and financial personnel.
We also had a conference call with Dodo today. We are preparing a whitelist activity plan, and users can get more credit for completing some tasks. The date is currently tentatively set for June 7. There will be LP mining rewards on Dodo for a while, and Dodo will offer rewards to Oionmixer fans.
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