This voice AMA with Tribe3 team was on Discord on 17 August 2022.

This a transcript recap of all the questions and answers from this AMA. There will be 3 separate recap for these 3 sessions.

AMA Sessions:

1. Tribe3 Introduction
2. Pre-selected Questions from Community (Current Session)
3. Live Q&A Session

Speaker:

• Leo - Founder
• Jeff - Product Lead
• Jo - Growth Lead
• DavN - Moderator

Session 2 - Pre-selected Questions from Community

Q1: What sort of protection mechanism does Tribe3 offer for its users? What happens if someone manipulates the floor price of NFT? How do you get the floor price?

Leo: Good question. One of the big issues in the NFT market is the inherent risk of floor price manipulation. Let’s take a step back. I want to explain to the Tribe3 community how we have designed the system. But if this AMA goes into details, it will take me probably an hour just on this question alone. I'll very quickly go through the intro of our system design. Later on, we're going to publish our documentation. Then we can have another follow-up call to specifically discuss the system design and hopefully address a lot more other questions as well on a more technical basis.

Quick Overview: The testnet that OG members will be testing out and trading will be on a what we call the Virtual Automated Market Maker (in a short form vAMM). Many of you might be familiar with Uniswap, which is based on an AMM system (Automated Market Maker system). Our system is a virtual version of that which enables leverage and require no liquidity providers. For People who are not as familiar with De-Fi, I would simply use an analogy of vending machine.

In the stocks/crypto/NFT exchanges that use an orderbook system, when a trader trades, there need to be two different parties:

• The buyer and the seller at the same time on an agreed-upon price.
• If you want to sell a BAYC at 80ETH, you need a buyer who will be willing to buy at 80ETH at the same time and then a transaction can be triggered.

Imagine if we build a vending machine that allows any trader to trade both ways - so that instead of the need of matching bid and ask, the vending machine allows buyers and sellers to directly trade alone with this vending machine at any moment in time. For example:

• If you are looking to long a BAYC contract and the base currency of that is ETH, you will go to this vending machine and long a BAYC Futures Contract (like buying a can of coke)
• If BAYC prices at 100ETH, you will put in 100 ETH into the vending machine, in exchange, you will get exposure to 1 BAYC Futures Contracts.
• The more traders buy the BAYC contracts, the price of the BAYC future contracts in the vending machine will automatically adjust upward and vice versa.

Any user can directly trade through the vending machine and as a result, prices are adjusted based on demand and supply. In short, vAMM is a native price discovery system in which price of BAYC futures contract is determined through traders making trades in the vAMM system.

In that sense - traders cannot manipulate the futures price directly through manipulation of the spot market. If they wish to influence prices in the futures market, they will have to put in trades in Tribe3 themselves.

Given the vAMM price is native - there will inevitably be times where the vAMM price deviates from the spot market price. Just like perpetual futures in crypto (which has a funding rate system), our system has mechanisms in place that will help converge our vAMM price with the spot market price.

For the calculation of funding rate, our system will use a spot oracle price which is calculated on a rolling 6 hour basis in 10 seconds increments:

• Every 10 seconds, we will collect open platform floor prices and do a time-weighted average of it on a rolling 6 hour basis
• When you think about manipulation, it's very easy for traders to manipulate BAYC floor price by one second because you can simply list BAYC at a very low price.
• But it gets very difficult and extremely costly if you try to do that for any meaningful timeframe. Even if you manage to do that, your cost will be extremely high because you will be selling your BAYCs at a very low price.

There are other mechanisms that help bridge the gap between vAMM price and oracle price, which we will discuss in a separate AMA / event.

Our job at Tribe3 is so much to solve the inherent problem of manipulation in the NFT market but prevent a case where traders can easily take advantage of the manipulation problem and profit from the Tribe3 system at the expense of other traders. I think this design at the moment is a pretty good compromise in terms of increasing the cost of price manipulation.

The vAMM system is also a compromise because we do think time is required to build scale and also do user education for the NFT community on the concept of futures trading - and the ability to instantly trade against a vAMM is important. Once we have achieved a certain level of user education, liquidity and scale, our plan is to eventually migrate to the orderbook system later either on mainnet or v2.

Q2: Is there a reward for testers who will test the test network and write their feedback on the test network? And if there will be a reward - what kind and for what exactly, can you elaborate on this?

Jo: Of course there will be rewards for our testers. First, there will be the trading competition that we have shared information before and there will be our prize pool for the participants. There will also be more trading related campaigns. We also want to get more testers feedback on how we can improve our platform and also have some rewards for users. In terms of what the rewards are, there will be for sure stable coin like USDC and another possible one would be our tokens. As you know, we will have NFT avatar so the last possible rewards could be something exciting about NFT avatar for our early testers. Stay tuned, do more testings, and you will know.

Q3: Will the project have its own token and if so, what name is planned for it and on what exchanges is it planned that it will be sold, what will it have supply?

Leo: Yes there will be.

For the trading platform, we believe it makes the most sense and it's the most user-friendly if we allow users to trade different NFT collections futures on its native currency. So for example for BAYC futures, users will be able to pledge their collateral and trade in ETH.

But the battle feature and the avatar feature / trading of in-game items will be using Tribe3 native tokens. So anything outside of the trading platform will be using Tribe3 tokens.

There are a lot of other questions like its name etc. I think we have to keep it a secret for now but definitely the team is working on not just the name but also tokenomics and the other additional utilities.

Q4: What can you tell in detail about the future privileges for early participants?

Jo: One privilege may be some special rewards on the NFT avatar side to reward our early supporters. Also in the future, early supporters can have a higher chance or whitelist to participate in all our upcoming campaigns.

Q5: Is the project set up only for the NFT direction? Or is it planned to expand in the direction of cryptocurrency tokens in the future?

Leo: Without a doubt, Tribe3 is a platform focused on the NFT native ecosystem and we are focused on the NFT ecosystem with no intention to branch out into a crypto trading firm etc. We believe in staying focused in the space that we are passionate about. What we are excited to disrupt is the space that we are a huge part of and love, which is the NFT side of things.

Q6: Will this platform be in the web version or will it be adapted into a mobile version or maybe a mobile application?

Jeff: At launch we are focusing on web version but it will be adapted into a mobile version - we are opened to developing a mobile application as long as we can find solutions that allow us to remain relatively decentralized.

Q7: Are you planning to verify the user's identity? If so, how will this happen?

Jeff: No we will remain a decentralized platform. Respecting our users’ privacy is one of our core values, so we won't be planning to verify users’ identity.

Q8: Can you briefly describe your current PARTNERSHIP and upcoming partnerships?

Jo: Early before the AMA starts, we announced a partnership with CyberBox. They are actually a project focusing on NFT analytics tools. In terms of marketing, we would have a lot of things to work with them. In the user's point of view, what we imagine is when you are trading a token, you can have so many things to look at, e.g. whether the coins are going or down, trading volume etc. But for NFT futures, this is kind of a new thing in the market. We believe that empowering users to trade and they could be back with a powerful tool for sure. I would say this is just one of the partnerships that we have right now. So we'll be announcing more in the future.