Eyes Raise at the Hillrise AMA

On October 6, 2020, several members of the Constellation Network and Lattice Exchange made a special visit to the Hillrise community for a compelling AMA with Lattice Co-Founder and CEO Ben Jorgensen. Both the Hillrise and Lattice/Constellation friends and family spent an hour with Ben sharing their remarkably intelligent questions.

Please enjoy this text-recap from the live event and be sure to join us on social media or telegram for one-on-one interaction with founders and staff.

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Hi Everyone! Looking forward to this.

> Ben Jorgensen

> Hi Everyone! Looking forward to this.

Welcome Ben, ready to get started now if you are?

Today we are joined by Ben Jorgensen, co-founder of Lattice Exchange and CEO of Constellation Network. Unfortunately Mathias Goldmann is not able to attend today.

Everyone in the room is welcomed and encouraged to ask questions, don’t be shy! We ask that you please be patient and do not spam questions.

The Hillrise Capital team are here to moderate. The event is scheduled to be approximately one hour in duration.

Let’s begin.

Connect with Constellation

http://constellationnetwork.io

https://twitter.com/Conste11ation

https://t.me/constellationcommunity

/pin

Great! Yes. Ready to go.

Thanks for joining us Ben, we have been looking at organizing this on and off for a few months now!

We had a little intro to you earlier today in the chat so I won’t ask you to send that again. Today we were keen to focus on the Lattice Exchange more so than Constellation because this is a significant development of late in the ecosystem.

So, from what I’ve read this is your play into the DeFi world, however it is separate from Constellation Network.

I’ve seen that you’ve raised funds to support this project from FBG Capital and Alphabit Fund. It’s also of interest as this stands to be the first major application built on top of the Hypergraph Network — which is a big deal, congratulations.

Can you talk to us about what the Lattice Exchange is, what the relationship is exactly to Constellation and how you position yourselves among the growing numbers of DeFi products and exchanges in the market?

To everyone in the room, please jump in if you have questions… everyone is welcome to put your questions forward to Ben

HI! Yes — great to meet you all and be a part of this community. Really exciting time to be in crypto.

yes — let’s dive in. So the goal with Constellation was to provide an ecosystem where web 3.0 businesses could be built on top of. Our focus from the beginning was to enable developers to build on a decentralized platform and merge web 2.0 applications with this decentralized and tokenized web 3.0

As such, Lattice is the first application that is to be built on the base layer protocol — Constellation’s Hypergraph. We wanted to provide the first hello world application for people to have a framework to build off of.

Only one question:

When moon :wink:

> Kieren

> Only one question: When moon :wink:

yesterday.

> Kieren

> Only one question: When moon :wink:

:neutral_face::sweat_smile:

Not NASA here :joy:

edited

DAG seems to be stagnant. We heard last year that 2020 was going to be something big yet the price now is the same as what it was last year at this time? Is there going to be another exchange dag will be on to help push this project?

> Daniel | Hillrise Capital

> Thanks for joining us Ben, we have been looking at organizing this on and off for a few months now! We had a little intro to yo

The DeFi space is rather crowded right now as many of the solutions are band aids on a faulty infrastructure. As such a lot of projects are presenting solutions that are rather simple but come off complex. Our focus is to create Lattice — an aggregation of many projects in DeFI but to be built on Constellation’s base layer protocol.

One of the key advantages to building on Constellation was that we have a fee-less ecosystem — which allows anyone to incorporate a flexible economic model and application on top of it.

“We actually have one of the largest institutions in crypto backing us (which we haven’t mentioned).” — Will you be announcing this today?

Hello Benjamin, why did you guys choose for another token?

> Ben Jorgensen

> The DeFi space is rather crowded right now as many of the solutions are band aids on a faulty infrastructure. As such a lot of p

Thanks Ben, I think the last part there is the pertinent point… nice

> Ben Jorgensen

> As such, Lattice is the first application that is to be built on the base layer protocol — Constellation’s Hypergraph. We wanted

Hey @benjorgensen

Great to see the developments with Lattice. Also great to see your AMA on Hillrise!

Do you expect Lattice to also integrate with your current work with the DoD and other partners?

> Don Bluto

> “We actually have one of the largest institutions in crypto backing us (which we haven’t mentioned).” — Will you be announcing

We aim to announce this next week as a few more institutional backers have come on board just this week. There is a huge appetite to see the DeFI market expand into traditional securities markets. Additionally, there are few projects out there that have already built crypto related businesses and understand the facets of a crypto business.

I will say that one of the backers is the largest liquidity makers in the industry.

> Don Bluto

> “We actually have one of the largest institutions in crypto backing us (which we haven’t mentioned).” — Will you be announcing

We welcome any exclusive announcements :innocent: haha

> JSP

> Hello Benjamin, why did you guys choose for another token?

We chose another token because the Ethereum ecosystem is a great on and off ramp. We wanted to capture liquidity and trading where volume is being created.

Yes, fee-less ecosystem sounds nice, can you discuss other competitive advantages you see with Lattice Exchange?

> Ben Jorgensen

> We chose another token because the Ethereum ecosystem is a great on and off ramp. We wanted to capture liquidity and trading whe

Maybe this ties in here somewhat…

I’m always curious — aside from the exchange product itself — to know how you plan to attract users. This is compounded by the fact that this is the first big app on your network so from my perspective there is a lot riding on the success of Lattice. What’s the strategy to bring active users to the exchange?

> Dr Todd

> HEy @benjorgensen Great to see the developments with Lattice. Also great to see your AMA on Hillrise! Do you expect Lattice to

Great question. Our work with the Federal space is somewhat isolated as it is a separate ecosystem build on Constellation. It is a completely different use case and different model altogether. Lattice is essentially the financial application built on the Constellation ecosystem. This is another use case and really highlights the technological and economical strengths of Constellation.

From @DonBluto

I came across this article the other day. What are you thoughts on this and do you see Constellation’s tokenization support playing a role?

https://ledgerinsights.com/sec-chair-stocks-become-blockchain-tokens/

> Nick Birnbaum

> Yes, fee-less ecosystem sounds nice, can you discuss other competitive advantages you see with Lattice Exchange?

Our MVP (we internally call Phase 1) is to create a competitive project to 1Inch and Uniswap. Uniswap has a nice UI and user experience — we want to keep that trend going and make it rather easy for users to work with Lattice. Our MVP will aggregate liquidity pools and introduce multiple AMM’s that are coin specific. Our MVP is scheduled to be released before the end of the year and we already have a completely new engineering team building it out.

Our MVP is to establish ourself in the market with a product that people know how to use and understand. In Phase 2 — we will being introducing trade settlements on DAG. Because of DAG’s fee-less structure we can incentivize volume trading by working with near zero transaction fees. This is going to be a huge leap in the DeFi and crypto space as we aim to provide cross chain liquidity between DAG and ETH — allowing DAG holders to stake DAG and earn LTX rewards.

Thank you for joining us here today! You mention in the white paper of Lattice exchange that the exchange will allow for the use of advanced AMM algorithms for both liquidity providers and users.

Can you share some more about these algorithms and how they give the exchange an edge?

> Daniel | Hillrise Capital

> Maybe this ties in here somewhat… I’m always curious — aside from the exchange product itself — to know how you plan to att

Great question — the aim is to set a foundation and flag in the Eth ecosystem (hence LTX is an ERC-20 token). This will allow us to easily aggregate liquidity pools and work where capital exists. The business competitive edge will attract more traders as well as a B2B angle with lattice where we work with exchanges to capture cross-flow (market trades that are routed to DEX’s) and use Constellation’s hypergraph because it is faster, cheaper, and built to scale.

Hey Big Ben, was wondering how phase 3 for lattice would be envisioned? Does this interoperability solution involve Overledger in some way? (Had to ask :)

:fire:

Well done, Ben and team. Could you expand on how lattice will allow $DAG staking?

> Ben Jorgensen

> Great question — the aim is to set a foundation and flag in the Eth ecosystem (hence LTX is an ERC-20 token). This will allow us

Great, thanks

> Daniel | Hillrise Capital

> From @DonBluto I came across this article the other day. What are you thoughts on this and do you see Constellation’s tokeniz

I saw this. One of the things with the SEC is that they actually really understand crypto — they have a rather large team on it. They are trying ot protect customers of crypto in the long run (holders of tokens). Being a stock trader since I was 15 and now being in crypto, it totally makes sense. Robin Hood as an application has done an incredible job of trying to introduce both of these worlds. It actually would make sense for stocks to be on the blockchain as some of the core functionalities and characteristics under ride the nature of stocks — classifications, immutability, and audibility. Owners of stocks have permissions to participate in a public company. Governance plays a big role in equities and it would make sense to use a blockchain to better regulate and open up stock markets.

> Ben Jorgensen

> I saw this. One of the things with the SEC is that they actually really understand crypto — they have a rather large team on it.

I agree, what do you think Mr STO? @RaySwayCX

Hey Ben! :wave:

From a user perspective, how do you envision the experience of using Lattice? Today many traders access Uniswap by connecting via metamask all within their browser, will lattice have a similar plugin for browsers or would it be used from within a wallet?

It wouldn’t be a stretch to see Lattice evolve to accommodate traditional markets.

> Ben Jorgensen

> Great question — the aim is to set a foundation and flag in the Eth ecosystem (hence LTX is an ERC-20 token). This will allow us

Just wanted to build on this Ben and especially as you mention working where the capital exists (important point). The documentation for the exchange highlights that a large portion of the LTX tokens minted will be dedicated to liquidity mining. Seeing how this has gone for some of the projects that want to attract users through token incentives. How will DAG tackle and balance the liquidity farming approach?

I shouldn’t really say DAG, but you know what I mean

> Ray Reijnders

> Thank you for joining us here today! You mention in the white paper of Lattice exchange that the exchange will allow for the use

Actually the updated white paper — we updated a few days ago on our website gives various details on our AMM MVP — the math behind it. go to www.lattice.exchange — there is a lot of detail in the updated white paper.

Our goal over the course of the next year is to introduce more advanced and complex AMM’s — methodologies and data science that is used in the Hedge Fund world (quants if you will). Right now, Smart contracts can only handle simple numeric values. With Lattice and through Constellation’s ecosystem — we will be able to cryptographically secure more complex data structures. Constellation set out to cryptographically secure data pipelines — be oracles of data and measure the veracity of data. How this transcribes into DeFi — oracalizing data that can be used to create complex trade algos. In 3–5 year vision this will become a marketplace of oracalized and validated data (external data sources as well) that can be blended to create advanced trade algos — like those seen in practice in traditional securities trading and strategies.

> Hey Big Ben, was wondering how phase 3 for lattice would be envisioned? Does this interoperability solution involve Overledger i

Great question — I just referenced oraclizing data above. This is where data science meets DeFi.

> Hey Ben! :wave: From a user perspective, how do you envision the experience of using Lattice? Today many traders access Uniswap by

Thanks Joey. In the next couple of weeks, Constellation will be releasing a metamask like wallet. This will be a more friendly addition to the Constellation ecosystem and will play nicely into the lattice vision. One of the things we love about Uniswap is how user friendly it is. Constellation isn’t user friendly today, but soon it will be more inviting for retail! Very excited about this new support and how Constellation weaves into Lattice.

> Ben Jorgensen

> Thanks Joey. In the next couple of weeks, Constellation will be releasing a metamask like wallet. This will be a more friendly a

Great to hear, nice

> Ben Jorgensen

> Thanks Joey. In the next couple of weeks, Constellation will be releasing a metamask like wallet. This will be a more friendly a

Oh wow, excellent! Barrier to entry removed.

> Daniel | Hillrise Capital

> Just wanted to build on this Ben and especially as you mention working where the capital exists (important point). The documenta

In our MVP pools will work on erc20 like we are used to. The difference is that we also allow for weighted pools and multi asset pools. We have our own pools and we aggregate existing pools leveraging the liquidity through smart routing — which ensures that a trader gets the best price at the lowest slippage.

As you are now both working in executive positions within the Lattice team, do you expect this to impact your focus on Constellation?

I’m also very keen to know if there are any other additions for the DAG ecosystem coming up

> Ben Jorgensen

> In our MVP pools will work on erc20 like we are used to. The difference is that we also allow for weighted pools and multi asset

With DAG we have created very powerful governance and explore really deep topics with our community. This is essential to Constellation’s success now and in the future. LTX — as a governance token — will also play an essential role into bridging the DAG ecosystem and ETH ecosystem. We are exploring some rather advanced ideas on how to incorporate LTX into our reputation based consensus model and LTX and the governance of it will play a role in how settlements occur. I can’t divulge more now.

A major reservation I have been having about crypto exchanges, defi ect, is the ability to hold people accountable should things go wrong. What is being done to make assets more secure? should systems fail, what policies would mitigate loss and what ability or plan does this exchange have to be held responsible?

> J.Melvin

> A major reservation I have been having about crypto exchanges, defi ect, is the ability to hold people accountable should things

Great question

I have seen other people mention concerns (and I myself would feel much better) about Mnemonic Seed restore capabilities for Molly. Do you have an estimate of when we can expect this?

Great question @RaySwayCX , also curious how your impact on Constellatio will be affected especially considering your other endevor MZ Dining Group

> Ray Reijnders

> As you are now both working in executive positions within the Lattice team, do you expect this to impact your focus on Constella

Great question — I was talking with Frank (our lead software engineer) about this today. Lattice is like the Excel on Microsoft. Constellation is like an operating system that you can build on top of. In order to understand how an operating system works, you need to have some prime examples so that it sparks people’s creativity. Microsoft has a suite of applications and tools and then developers build new applications and programs on top of this.

Lattice makes Constellation easier to understand and drives the vision overall. I will admit that it is a lot of work to build multiple businesses — but hey, this aint my first rodeo. This is fun and working on the application layer 2 level helps the productization of Constellation.

> Ben Jorgensen

> Great question — I was talking with Frank (our lead software engineer) about this today. Lattice is like the Excel on Microsoft.

Perfectly stated!

> Ben Jorgensen

> Great question — I was talking with Frank (our lead software engineer) about this today. Lattice is like the Excel on Microsoft.

Clear, thank you.:smile:

> J.Melvin

> A major reservation I have been having about crypto exchanges, defi ect, is the ability to hold people accountable should things

Ahhh. I love this — programmatic assurance and compliance is what I call this. The joys of coding is that you can program assurance and compliance. I think you run into a lot of issues if the core infrastructure is not scalable. What happens if it breaks. This is why we have taken our time to build Constellation and ensure that it scales. We even run concurrent consensus so that transaction speeds and security can scale: 1) for block validation and 2) for the global state of the network. LTX can play a role in #2.

One of the drawbacks of EVN and Solidarity is that there is very little in the way of developer support and quality assurance — this was the same issue in IOTA. We don’t release anything unless we think real world developers would naturally use this in their application and stack. This means a lot of testing, a LOT of testing and stress testing.

Constellation is truly decentralized, if the network goes down, any two endpoints could connect and transact. Centralized mainnets (master nodes) have this problem with going down — we took extra long to make sure we were truly decentralized so as to avoid this.

Just noticed STO was mentioned here. If tokenization of securities catches on… Will constellation be open to tokenizing a specific product or a share of the company?

> Ben Jorgensen

> Ahhh. I love this — programmatic assurance and compliance is what I call this. The joys of coding is that you can program assura

Last paragraph :+1:

If lattice offers a fee-less (or low) structure, how do holders of $dag or $ltx for example, make money?

> Nick Birnbaum

> Great question @RaySwayCX , also curious how your impact on Constellation will be affected especially considering your other ende

Ya. But I am not the Chef. I leave that to Chef Zimmerman. In 2015, I started a search fund to a) see if I am a good leader and entrepreneur by investing in other businesses b) did I have a strong network and c) what was the next big thing. I randomly got into fine dining as I love creativity and nuances of alternative businesses. My first restaurant investment I helped raise capital for and they got 2 Michelin stars their first year, top 50 restaurants in the world and 3 Michelin restaurants their second year.

I then met Chef Marc with MZ Dining Group and helped him expand his vision. He is the artists in that business. It is a rather different business with about 35 people on staff — we aren’t in the business building stage anymore. My time is with Constellation and Lattice. Food and Dinning is a completely different beast. With incredibly savvy and creative people as business partners — you can do anything. They cover my back when I am busy. When you have A-List founders, you can do so much more. I am not the bottleneck.

Excellent answer, thank you @benjorgensen

> Ray Reijnders

> Just noticed STO was mentioned here. If tokenization of securities catches on… Will constellation be open to tokenizing a spec

Yes — absolutely. It would be a great use case. Think of all of the different rights, data, and aspects that go into a stock (voting, permissions, price, etc.) there is no way that a smart contract could secure all of that data (and then to be able to trade that asset and know that all of those features and aspects weren’t tampered with as it exchanged hands). This is where Constellation will shine.

> Nick Birnbaum

> Excellent answer, thank you @benjorgensen

Absolutely. Thank you for bringing that up. My girlfriend would say otherwise! lol.

hahah

:sweat_smile:

Your profile says you are based in The USA. With the recent legal issues facing Bitmex CTO related to AML charges, do you have any regulatory concerns about Lattice and navigating the complicated relationship that America has with crypto?

> Erik

> If lattice offers a fee-less (or low) structure, how do holders of $dag or $ltx for example, make money?

Great question. If you create a SaaS (software as a service company) and want to acquire users, you make you either undercut your competitor or you make it free and then bake fees in over time once your product is super sticky and your users are loyal. Same thing can apply here. Because Constellation is fee-less, this means that lattice can implement fees on layer 2 at near nothing. It is a completely flexible business!

In another context, what if you went to a bank to secure a loan and they charge 5%. Then you go across the street to another bank and they charge 2%. Who are you going to go with?

Well, the second bank “gets” their money for way cheaper than bank #1. You are obviously going to go with bank #2. This is how we think. Ethereum has gas built into the base layer — it is variable as well. This is illogical. When Ethereum gets busier — it is more expensive. Lol. No other business operates this way — it is completely a-cyclical. Cloud Computing was introduced purely on this principle of shared servers.

> Alex

> Your profile says you are based in The USA. With the recent legal issues facing Bitmex CTO related to AML charges, do you have

We take extra precautions when building crypto related businesses. I spend most of my day with one legal team or another (we currently work with two legal firms). We have practice at this from 2018 in addressing DAG as a utility token. Our method is to always be compliant to the strictest laws and governing bodies. It is a rather tough space to be in in general.

Last one from me as we’re getting close to time…

It’s been several months now since the launch of the Hypergraph mainnet — again congratulations. It was many years in development and it’s always a big achievement to realize your vision and launch a network.

Would love to hear your thoughts on the journey to that milestone and how you’ve seen the space at large change and evolve over that time.

Do you think the attraction and I suppose “selling-point” of your network and infrastructure is any different to what it was when you started, considering all of the broader tech / ecosystem development in the past 6–12 months?

> Daniel | Hillrise Capital

> Last one from me as we’re getting close to time… It’s been several months now since the launch of the Hypergraph mainnet — a

Hahah. 1–2 Punch with this one. I could write a medium post on this. Give me 2 minutes.

> Ben Jorgensen

> Hahah. 1–2 Punch with this one. I could write a medium post on this. Give me 2 minutes.

:grin:

> Don Bluto

> I have seen other people mention concerns (and I myself would feel much better) about Mnemonic Seed restore capabilities for Mol

Not sure if we got to this one

> Daniel | Hillrise Capital

> Last one from me as we’re getting close to time… It’s been several months now since the launch of the Hypergraph mainnet — a

Every business evolves. Going back to my restaurant, we aimed to create a small 10 person restaurant for casual dining and only raise $500k… Then the first $500k came in and we said “let’s go bigger with the vision”. Every business changes its direction — part of entrepreneurship is fine tuning your intuition to accommodate trends and market shifts and evolve with the customer. If you don’t you fall flat…. and sometimes that is inevitable… but when you refine those muscles, you get better at adapting.

The largest story we evolved was our community and how we perceived the community and let them in. Most first time entrepreneurs make the mistake of not asking for help until it is too late. When we started asking our community for help and to help us evolve our narrative — we started learning about what they wanted and what they wanted to take part in. We let them in on trade secrets and what we were doing behind the scenes and they couldn’t believe it.

This had a 180 on our community and our trajectory with Constellation — if it weren’t for our community, we wouldn’t be where we are today and where we are going!

The messaging of Constellation has evolved dramatically. It is more sophisticated than ever and it is more humble than ever. Those are traits we value. As such, we have gotten a seat at some rather incredible tables (not meant to be a restaurant analogy). We are building standards in Space and the Federal Government and in the autonomous vehicle industry. When we started this journey, we had no idea that it would go this route — but we listen, evolve, and move our story and how we explain things.

The vision hasn’t changed, it has just gotten more real and intense. We are building Zero Trust networks with the Federal Government. This is a wild concept and something I had no idea I would even understand. But our north star has not changed. Not a bit… and we all have so much faith and have seen so much… this has helped us to be as resilient as our network… We are just getting started… Beginners mind is what we have to be thankful for.

> Don Bluto

> I have seen other people mention concerns (and I myself would feel much better) about Mnemonic Seed restore capabilities for Mol

Next couple of weeks we are making some dramatic updates to Molly.

> Ben Jorgensen

> Next couple of weeks we are making some dramatic updates to Molly.

Shall I say releasing.

Maybe one day I will have a “copy paste” AMA. Wow — incredible questions and so glad I had my coffee today.

The point of community is really important, it is everything in this world…

Thanks so much for the detail Ben, let’s end on that note

This messages concludes our AMA with Constellation

We thank our guest Ben for his time today and for being open to this unique dialogue with the community.

To everyone who joined us, thank you for being here… we host these events for you, the community.

Thank you!

Connect with Constellation

http://constellationnetwork.io

https://twitter.com/Conste11ation

https://t.me/constellationcommunity

> Daniel | Hillrise Capital

> The point of community is really important, it is everything in this world… Thanks so much for the detail Ben, let’s end on t

Thank you sir! Thank you all for the strong questions. Really great to answer with so much detail.

Great AMA!!!!

> Bazerka

> Great AMA!!!!

:pray::pray:

and a bit more on our vision of Constellation and Lattice:

Lattice Exchange: A best in class DeFi project built on Constellation’s Hypergraph: How Lattice will evolve Decentralized Finance (DeFi) with the most scalable blockchain infrastructure, Constellation Hypergraph.

Welcome back anytime Ben, feel free to stick around in the group!

[6:10:46 PM]BlockUnify:

> Ben Jorgensen

> https://medium.com/@benjorgensen/lattice-exchange-a-best-in-class-defi-project-built-on-constellations-hypergraph-fce5ca7706d9

Thanks Ben! Brilliant AMA, a lot to come from the team

> BlockUnify

> Thanks Ben! Brilliant AMA, a lot to come from the team

Thank you.

First class AMA like always.

Thanks :+1:

> Rubb:pig:

> First class AMA like always. Thanks :+1:

Much appreciated.

> Rubb:pig:

> First class AMA like always. Thanks :+1:

Thanks a lot, the guests and community make it what it is… we are just hosts

Takes a lot to host a good AMA. You did well and I enjoyed it. Definitely top AMA.

Great answers Ben! 🥳

> Lasse

> Great answers Ben! 🥳

Thanks boss.

-End-

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Welcome to the Hillrise Capital Community chat group. This is our official AND only Telegram chat group. We welcome you to join in on the conversation here, we’re friendly!

We’re an independent research house and advisory firm exclusively focused on blockchain startups and crypto-assets. Aside from our research and advisory work, we have a big focus on community and often host Telegram AMAs with executives from blockchain startups and the like.

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