The DeFi Download

Radix DLT

“The DeFi Download” with Piers Ridyard, CEO of Radix DLT. Join the leaders of the Decentralised Finance industry as they discuss all things DeFi: Its workings, user acquisition and go-to-market strategies while simultaneously re-inventing one of the world’s most important industries. read less
TechnologyTechnology
Liquity: A new king in the decentralized stable coin arena?
Oct 13 2023
Liquity: A new king in the decentralized stable coin arena?
This episode of the DeFi Download with host Piers Ridyard features Robert Lauko, founder and head of research at Liquity. Tune in to discover how Liquity is addressing the stablecoin trilemma and reshaping the crypto space with game-changing innovations ranging from principal protection to improved peg stability. SummaryLiquity is a pioneering DeFi protocol that is reshaping the DeFi and stablecoin landscape with its innovative approach. At its core, it prioritizes stability and scalability while maintaining decentralization. It achieves this through groundbreaking features such as principal protection, which ensures users can confidently redeem their assets at or above their principal value, and a tighter peg to minimize deviations from the dollar value. A hybrid stability pool, a ground-breaking feature that not only supports the loans but also acts as a backup for the reserve, highlights Liquity's commitment to stability even further.Robert Lauko takes us on a deep dive into Liquity's mechanics, shedding light on its inner workings, from its liquidation mechanism to its impressive growth, including the endorsement of Justin Sun, who injected over a billion dollars into the nascent protocol.Robert and Piers delve into Liquity's unwavering commitment to decentralization and transparency, alongside its reliance on ETH as collateral in its V1 version. Additionally, they explore the formidable challenges faced within the stablecoin landscape and the ingenious strategies Liquity has employed to overcome them.Looking forward, Liquity V2 takes center stage. Robert introduces the concept of a decentralized reserve mechanism and emphasizes the vital role of a decentralized Peg-Stability Module (PSM) in maintaining a stablecoin's peg. Liquity V2 sets out to redefine the stablecoin trilemma by demonstrating that resilience, scalability, and decentralization can harmoniously coexist.Tune into this episode to find out how Liquity offers stability and leveraged upside, potentially revolutionizing lending. You'll also gain an understanding of principal protection and learn about Liquity's stability pool, which uses staked ETH to deliver attractive yields and security.Key takeawaysLiquity balances the stablecoin trilemma by addressing stability, scalability, and decentralization by introducing a strong arbitrage mechanism and a hedging product with principal protection and a tighter peg.Liquity V2 targets a tighter peg and more attractive borrowing through potential collateralization ratio reductions.Principal protection fosters trust, enabling users to redeem assets at or above the principal value, while Liquity V1 and V2 offer choices for varied risk profiles alongside the liquidity-boosting stability pool.Chapters[01:15] Introduction to Liquity and its unique approach to loan-to-value ratios[04:32] Liquity's efficient liquidation mechanism and incentives[08:29] Liquity's meteoric rise: A billion dollars in 10 days to 2.5 billion in two weeks[10:28] Lessons from Liquity: How its launch attracted whales and big players[12:01] ETH-exclusive V1: Exploring the early design decision and future considerations[12:41] How Liquity ensures a liquid and useful stablecoin[15:19] Liquity's strategies for establishing partnerships and integration[17:48] The stablecoin trilemma and Liquity's approach to resilience, scalability, and decentralization[20:17] Innovation in action: The vision behind Liquity V2[22:35] Rebalancing stablecoin supply and demand: The role of a decentralized Peg Stability Module (PSM)[26:27] Liquity V2's strategy for tightening stablecoin bands and reducing volatility risk[33:13] Navigating ETH volatility: Liquity V2's strategy with principal pr
MLABS - Building dApps on Cardano, Polkadot, Solana, and Radix
Sep 15 2023
MLABS - Building dApps on Cardano, Polkadot, Solana, and Radix
In this episode of the DeFi Download, Piers Ridyard is joined by Ben Hart, CTO, and Amir, blossoming Scrypto developer at MLabs. Ben and Amir share their experience with different programming languages and platforms, such as Haskell, Plutus, Rust, and Scrypto. SummaryMLabs is a Haskell, Rust, and Blockchain AI consultancy working with various industries, such as fintech and blockchain. MLabs is also the developer of the Plutonomicon library, a major contributor to it, and one of the main contributors to the Plutarch eDSL version of the Plutus smart contract language.Key takeawaysBen came across Radix at Consensus 2023 and was impressed with the thoughtfulness and organization of the Radix team and builders. He found it easy to jump into Scrypto because of his previous experience with Rust. Amir found Scrypto to be easier to learn and use than Plutus because it abstracts away some of the lower-level details and has well-named concepts and design patterns. Amir was able to quickly understand and experiment with Scrypto by reading the documentation and the community examples that are available.Radix’s guardrails and intent-based transactions make programming and building applications easier and safer, unlike Ethereum’s state-based transactions. It is difficult to explain Radix’s advantages to someone who has not faced Ethereum’s challenges.Chapters[01:01] The story of MLabs' founding[03:33] What are Haskell and Plutus, and how did MLabs get their team up to speed with these languages?[08:04] Advantages and challenges of using Plutus for building applications[10:18] Haskell's reputation as a secure language and the difficulty in finding and training new Haskell developers—has MLabs encountered this?[11:32] The philosophical and principles-based approach of Haskell and Rust advocates who are willing to change careers to write production code in these languages[12:40] How and why did MLabs expand to Rust, a language that is ideologically similar to Haskell?[13:42] How did the MLabs team learn about Radix and Scrypto, and how has their experience been so far?[16:03] When and how did MLabs begin developing on Radix with clients from other communities, such as Cardano, and bringing that functionality to the Radix network?[18:38] From Haskell and Plutus to Scrypto: Amir’s journey and insights[20:03] Amir's favourite aspect of Scrypto and what he has built up to this point[22:06] The need for critical tooling in an ecosystem: how DAO tooling enables governance features for DeFi applications[23:20] Amir’s insights on building governance functionality in Scrypto and the benefits of the platform[26:30] What are Amir’s timelines for testing and deploying the governance tooling, and when can people start using it?[27:42] How does Ben, as CTO, use Scrypto to plan and implement MLabs' application architecture?[31:35] The inverse relationship between speed of development and security[33:09] What new Scrypto developers or those considering a move to the Radix ecosystem need to know[35:42] How open-source repositories can aid in learning Scrypto, despite being outdated[37:35] Radix’s goal to have the best crypto documentation and match Web2 standardsFurther resourcesWebsite: mlabs.city Twitter: @MLabs10
Swaap: Making Liquidity Provision Profitable in DeFi.
Sep 1 2023
Swaap: Making Liquidity Provision Profitable in DeFi.
In this episode of the DeFi Download, Piers Ridyard interviews Cyrille Pastour, co-founder of Swaap. Cyrille and Piers discuss the inner workings of the automated market maker that is designed to protect liquidity providers by dynamically responding to the market.SummarySwaap provides yield to liquidity providers by utilising cutting-edge market-making models developed in collaboration with mathematicians. They use oracles and dynamic spread to ensure real and long-term yields. Swaap's algorithm determines what pricing it will provide to the market on a per-swap basis and includes safeguards to limit damage in the event of a hack. It is designed to safeguard liquidity providers against impermanent loss and ensure that returns are greater than hodling.During their discussion, Piers and Cyrille clarify the difference between exchanges and market makers. They analyse the problem Swaap seeks to address and the role of market makers in mature versus immature markets in determining price. They also touch on issues with Uniswap v2, in which liquidity providers are perpetually behind the information curve and unable to rebalance themselves, whereas arbitrageurs can make risk-free profits by manipulating the market price.Key takeawaysSwaap v2 is a new iteration in terms of infrastructure that aims to be more flexible and have better performance than Swaap v1.Swaap v2 has a hybrid infrastructure consisting of both on-chain and off-chain components. The off-chain module operates the quotation system to provide faster price information, and the on-chain verification module prevents extreme events and ensures a trust-minimized environment.Swaap is available on both Ethereum and Polygon, with Polygon being a preferable option for smaller portfolios due to its lower gas fees.The Swaap protocol enables DAOs to create liquidity against volatile assets, and the team is working on establishing partnerships with a number of DAOs.Chapters[01:05] What is the problem that Swaap is looking to solve as an automated market maker in the DeFi space, and why is it important to separate exchanges and market makers when considering liquidity providers and users?[03:59] The Uniswap conundrum: How inexperienced traders create risk-free profits for arbitrageurs[05:49] The role of market makers in mature vs. immature markets for determining price[08:38] Uniswap v2 liquidity providers are behind the information curve, while arbitrageurs make risk-free profits[12:02] The roles of exchange venues and market makers in financial market liquidity and market-making success factors[14:54] How Swaap differs from other market makers[18:54] Swaap's solution to sophisticated market actors exploiting liquidity providers [28:25] How Swaap's algorithm guards liquidity providers against hacks and impermanent loss[31:29] What's next on Swaap's roadmap and what to get excited about after V2[33:43] Where can people find out more about Swaap, and should they start on Ethereum or Polygon?Further resourcesWebsite: swaap.finance Twitter: @SwaapFinance Discord: discord.com/invite/vMNHgz7bMU
PsyFi: Best-in-class financial products & tools – built for everyone
Aug 11 2023
PsyFi: Best-in-class financial products & tools – built for everyone
In this episode of the DeFi Download, Tommy Johnson, Core Contributor of PsyFi, joins Piers Ridyard to discuss their two-sided DeFi marketplace for structured products, which allows users to earn yield on their assets and traders to hedge or leverage their portfolio.SummaryPsyFi offers products such as covered calls, secured puts, and spread structured products, which PsyFi wraps up and tokenizes. The PsyFi team is developing a market-making vault product where users can deposit two-sided liquidity and earn fees based on participating in and providing liquidity for trades.Piers and Tommy explain what a structured product is and use covered calls as an example to discuss how the PsyFi platform works. They discuss the risks and rewards of PsyFi's covered call options compared to over-collateralized borrow-lending products like Aave. They also discuss the market need for a riskier product like PsyFi and the usefulness of buying covered calls or secured puts for market actors who have a directional view or want to hedge their positions.Key takeawaysPsyFi is a decentralised finance platform that allows users to trade options on Solana.A covered call is a selling strategy in which the user sells calls week-to-week, taking the position that the price of the underlying asset will not cross the strike price by the expiration date of the call.PsyFi's covered call options provide a 0.35% weekly return and 12% APY but can result in users making lots of money or suddenly losing money depending on the volatility of the asset. They are riskier than over-collateralized borrow-lending products like Aave.PsyFi's structured products provide an opportunity for people to earn impressive yields on their assets, but they require a directional view and are not a leave-it-and-see-what-happens kind of product.Buyers of PsyFi's structured products include speculators with market opinions and more institutional market makers who may be hedging across their book.Chapters[01:07] The definition of structured products[02:15] How a covered call works on the PsyFi platform[04:42] Does the trader's profit from a PsyFi covered call come from the user's Solana?[05:22] Selling volatility and making money through covered calls on PsyFi[06:21] What is the expected return on a two-week covered call on Solana?[06:50] The risks and rewards of PsyFi's covered call options compared to Aave's over-collateralized borrow-lending products[08:02] Why does the market need a riskier product like PsyFi?[09:20] What functionalities do buyers of covered calls or secured puts need, and why are these products necessary?[10:50] Using covered call options for asset exposure and risk hedging in DeFi[14:03] Are people primarily using the PsyFi protocol for hedging or speculation? [15:41] How does collateralization work in PsyFi's covered call scenario, even if a portion of assets have been sold?[17:20] Capital efficiency in options markets and borrow-lend protocols[20:12] How a high-interest rate environment has affected the market for structured products in decentralised finance[21:34] How has PsyFi responded to the higher yield environment created by the Fed?[24:23] Democratising market maker returns in DeFi with a delta-neutral vault[26:11] How does PsyFi evaluate market makers before granting access to capital?[27:43] PsyFi’s launch date[28:03] Where to find out more about PsyFiFurther resourcesWebsite: psyfi.io Twitter: @PsyOptionsDocumentation: docs.psyfi.io
Raft: an LSD inspired stable coin
Jul 28 2023
Raft: an LSD inspired stable coin
In this DeFi Download podcast episode, Piers Ridyard interviews David Garai, founder of Raft. Raft is a stablecoin protocol similar to MakerDAO, but it is backed by liquid staking tokens. Piers and David talk about the potential of liquid staking and its role in DeFi, as well as concerns about centralization.SummaryRaft is a decentralised stablecoin protocol that uses liquid staking tokens (LSTs), such as staked ETH, as collateral. Raft requires a collateralization ratio of 120% compared to MakerDAO’s 175% and charges a one-time fee rather than an ongoing APY.The protocol manages risks associated with using fewer liquid tokens as collateral through its liquidation mechanism and position and protocol level caps. Raft also employs a redistribution mechanism to socialise losses and ensure that the protocol remains overcollateralized.Raft charges a variety of fees, including liquidation fees and flash minting fees, and is integrating with other DeFi protocols to create use cases for R stablecoins. The potential use cases for Raft stablecoins include spending and short-term trading, and the possibility of onboarding other stablecoins as collateral in the future.Key takeawaysRaft is an LSDFi protocol. LSDs (liquid staking derivatives) are ERC20 tokens issued by liquid staking platforms to represent the staking share in that particular platform. They are also referred to as liquid staking tokens.Raft’s lower collateralization ratio and one-time fee differentiate it from MakerDAO.Raft aims to create an even playing field for users to select their preferred staking provider and encourages competition in the market.Chapters[00:00] Introduction[03:02] Raft's motives to enter the market for decentralised stablecoins backed by liquid staking tokens[05:08] Does the use of LSTs in DeFi applications accelerate Ethereum centralization and increase risks?[08:23] What differentiates Raft from MakerDAO[11:35] Managing risk while using less liquid underlying assets and reducing the collateral requirements[18:46] Raft's second tier of defence[26:35] Raft's strategies for integrating its stablecoin with other DeFi protocols[30:39] Raft's focus on spending as a growth market for its stablecoin[36:41] Where to learn more about RaftFurther resourcesWebsite: raft.fi Twitter: @raft_fi Discord: discord.com/invite/raft-fi Documentation: docs.raft.fi
Rarimo: an interoperability protocol for the decentralized social identity
Jul 28 2023
Rarimo: an interoperability protocol for the decentralized social identity
In this episode of the DeFi Download, Piers Ridyard talks with Lasha Antadze, co-founder of Rarify Labs. They explore the growing value of identity across digital ecosystems, the challenges of portable identity in the crypto space, and the benefits of Rarimo's interoperability protocol for application builders.SummaryRarify Labs focuses on creating and implementing interoperability protocols for identity and reputation. Their goal is to make identity portable across ecosystems and layer-1 protocols, allowing users to carry their reputation with them when they move between different applications. To accomplish this, they developed Rarimo, an interoperability protocol that provides identity primitives supported by the ecosystem, enabling users to transfer their reputation across different chains and dApps.Rarimo enables the movement of reputation and identity components across different ecosystems. It integrates with various identity providers, making it easier for developers to incorporate identity and reputation standards into their dApps. The protocol emphasizes the need for end-to-end flow and demonstrates how it tangibly improves the user experience. Developers are expected to start building on top of Rarimo by the end of the summer.Key takeawaysThe concept of portable identity is difficult to solve because identity evolves and is not just a token, but a token with history associated with it.Rarimo aggregates various identity components that exist across different forms and allows for full control and management of this entire interaction on-chain via smart contracts.Rarimo is expected to launch with partnerships with the ten largest identity providers, and a beta mainnet will be available by the end of the summer.The best place to get started with Rarimo is to read through the documentation available on their website, docs.rarimo.com.The development of identity space and standardization will require time and upbuilding, but Rarify Labs is committed to delivering tangible and user-centric demos to address these challenges.Chapters[01:08] Why is identity becoming an increasingly important topic in the Web3 and DeFi space?[03:14] Is identity interoperability the missing Holy Grail in the crypto space?[04:00] Managing multiple identities across different platforms in the digital space using blockchain and Web3[06:28] What is Lasha Antadze's background in identity and what makes him interested in identity today?[10:47] COVID-19's impact on digital identity in the crypto and Web3 space, changes making identity more portable and creatable on ledger, and how this applies to businesses in the crypto ecosystem[14:41] What is Rarimo doing in the identity space?[18:46] The challenge of portable identity in the crypto space[21:38] What benefits does Rarimo integration provide for application developers, and when should they consider using Rarimo's tools?[24:43] What identity providers is Rarimo integrated with?[26:58] What is the expected launch date for Rarimo and how can people get involved?Further resourcesWebsite: http://rarimo.com/ Discord: https://discord.gg/Bzjm5MDXrU
Bittrex Global - Lawyers, the SEC and running exchanges
Jun 26 2023
Bittrex Global - Lawyers, the SEC and running exchanges
With Oliver Linch, CEOIn this episode of the DeFi Download, Piers Ridyard talks with Oliver Linch, CEO of Bittrex Global, about the advantages and disadvantages of centralised and decentralised exchanges, the company's history of operating in the cryptocurrency market, and its legal challenges with the SEC.SummaryBittrex Global is a successful cryptocurrency exchange that grants global users access to over 650 tokens. However, the company is currently facing legal challenges from the SEC, despite being regulated in Liechtenstein and Bermuda.During the discussion, Linch and Piers talk about the future of the crypto industry and its regulation. They argue that a balance between regulation, security, and innovation is necessary. Both centralised and decentralised exchanges have a role to play. They also touch on the challenges of verifying smart contracts and the significance of trust in both systems.Key takeawaysDespite being regulated in Liechtenstein and Bermuda, Bittrex Global is facing legal challenges from the SEC.Oliver Linch, CEO of Bittrex Global, believes that a legal framework is required to ensure that people can engage in commercial activities with confidence and that regulation is critical when things go wrong.Centralised and decentralised products can collaborate to create something more productive than destructive, and there will always be a place for both centralised and decentralised products in the crypto industry.Regulation will have an impact on the crypto industry's future, and the next ten years will be crucial in determining how the industry will evolve.Bittrex Global is primarily focused on regulation, security, and innovation, with a particular interest in the tokenization of real-world assets.Chapters[01:18] Oliver Linch’s unusual for a crypto exchange CEO background as a lawyer [02:08] The story behind Oliver Linch's journey to becoming CEO of Bittrex Global[03:49] How is Bittrex Global handling the SEC's lawsuit while building its business? How are they considering the US regulator while operating globally?[07:42] Why is Bittrex Global being sued by the SEC despite providing services to non-US citizens from a regulated jurisdiction?[10:36] The implications of the SEC's lawsuit against Bittrex Global for the crypto industry[11:39] What is Oliver's opinion, from a jurisprudential perspective, on the impact of regulation? Is regulation entirely beneficial or only partially so?[13:15] The necessity of a legal framework in facilitating interactions between people[15:18] Is regulation in crypto necessary only when something goes wrong?[17:19] Trust-minimization and transparency in DeFi: Are decentralised finance (DeFi) and decentralised exchanges (DEXs) a threat to centralised exchanges?[20:01] How does trusting a regulated process differ from trusting a coder for an exchange regulated in a different country than the user's residence?[23:14] The risk of internal fraud in regulated crypto exchanges[24:08] The trustworthiness of banks regulated in different countries[24:30] Verifying entities in the crypto industry: Smart contract audits and auditor reputation[25:29] The importance of validation and auditing in both centralised and decentralised exchanges[29:05] The future of the crypto industry and Bittrex Global's next stepsFurther resourcesWebsite: global.bittrex.com Twitter: @BittrexGlobalOliver Linch’s Twitter: @OliverLinch
Carbon: an order book like DEX that actually works
Jun 16 2023
Carbon: an order book like DEX that actually works
Mark Richardson, the project lead at Bancor, joins Piers Ridyard to discuss Carbon, the next stage in DEX evolution, in this episode of the DeFi Download. Carbon provides order book-like functionality on-chain and has already seen over 100 strategies created since its launch on April 20th.SummaryFrom Bancor V1 to Uniswap, the evolution of cryptocurrency liquidity provision has been characterised by significant innovations that sparked DeFi Summer. Although the Automated Market Maker (AMM) was a game-changer, Bancor is turning away from the AMM, recognising the complexities involved in providing liquidity.Carbon, as an on-chain order book functionality provider, offers greater flexibility and control over liquidity provision than traditional AMMs. Carbon's app runs in the user's browser using an open-source software development kit (SDK), which is lightweight enough to run smoothly on a smartphone.Key takeawaysCarbon is a gas-efficient, lightweight DEX that prioritises efficiency while still executing swaps trustlessly.In retrospect, some of the most significant innovations appear obvious, but until an innovation is defined and described, it may not be immediately apparent. The irony of invention is that it is only apparent after it has been discovered. Previously, it may have been unclear why others were not in the right frame of mind to make the discovery themselves.Carbon's development priorities include identifying the demographic that uses Carbon, exploring other blockchain ecosystems, and supporting features that did not make the critical path for the MVP but still need support.Chapters[01:12] What killed the AMM, and what comes next in the world of DeFi liquidity provision?[07:05] How providing liquidity can align incentives and create a social basis for market making in DeFi[10:45] What is the simplest way to describe impermanent loss to someone in the context of AMMs?[13:37] Impermanent loss in liquidity provision and missed profit opportunities[16:02] What are Mark Richardson's thoughts on how Bancor's Carbon can contribute to the concentrated liquidity pools model, and what is the next step in liquidity provision?[18:21] What is a short gamma option, and why is it called that?[23:53] The rise of constant function AMMs and the naive phase of decentralised finance and crypto[26:50] What are the limitations of the Automated Market Maker (AMM), and why is it not the ideal financial instrument for liquidity provision in DeFi? How does Carbon solve these limitations, and what does it do differently?[29:20] Carbon's customizable "buy low, sell high" strategy execution[33:39] Is it possible that CLOBs lack statefulness and a concept of time, resulting in only valid or invalid orders and no if-then statements?[35:27] How does Carbon solve the challenge of creating order book-like functionality and making it easy for users to buy within a certain range without having to pick specific orders, while still maintaining the ability to put trades on in microseconds or nanoseconds and avoiding potential performance issues with state-based logic in order matching engines?[38:59] The genius of Carbon: a simple on-ledger solution for order routing[43:29] Does using the SDK in Carbon for executing positions trustlessly while still submitting the execution to the ledger raise concerns among decentralisation maximalists?[46:37] What are Carbon’s plans for the next 6–12 months?Further resourcesWebsite: bancor.network Twitter: @Bancor Discord: discord.com/invite/CAm3Ncyrxk
Astrolescent: the first fully collateralised stablecoin launching on Radix
Jun 9 2023
Astrolescent: the first fully collateralised stablecoin launching on Radix
Michael Videtto, co-founder of Astrolescent, a decentralised exchange aggregator, is Piers Ridyard's guest on this week's episode of the DeFi Download Podcast. Piers and Michael discuss the launch of USDA, the first fully collateralized stablecoin on Radix.SummaryMichael Videtto, Astrolescent's co-founder, has a background in physics and electrical engineering, as well as 15 years of investing experience in both crypto and traditional finance. He has an interest in macroeconomics and aims to further his knowledge in the field.Astrolescent intends to bring Radix into the mainstream by combining DeFi and traditional finance through four financial products. Their first product is a decentralised exchange aggregator, which will be followed by other products that will use the aggregator to provide users with more options and flexibility. Astrolescent seeks to mitigate risk by looking into partnering with multiple banks rather than just one. In July 2023, they plan to launch USDA, an audited and fully-backed stablecoin issued in the US on Radix, along with other products.During the discussion, Michael emphasised the importance of crypto industry regulation to prevent scams and build trust. He also discussed the stability of stablecoins such as USDC, as well as how well-regulated and diversified companies like Circle can recover from losses and continue offering stablecoins. Michael also highlighted the importance of transparency and proof of reserves in stablecoins. Astrolescent will use a KYC verification token to ensure the security of their DeFi products and to track token ownership on the network.Chapters[01:05] Michael’s view on the impact of the Silicon Valley Bank USDC wobble on stablecoins[02:28] Are decentralised stablecoins the future of DeFi in light of the recent events?[03:39] The importance of stablecoins for DeFi and public ledgers[04:39] The founding of Astrolescent and their first product[06:23] Michael’s background and interest in crypto and finance[07:09] Did Michael initially become interested in crypto through his interest in finance and macroeconomics?[08:39] The challenges of launching a stablecoin in a mature market issued out of the USA: Astrolescent's approach with USDA[10:38] Launching the first stablecoin on Radix[11:45] Using Radix-specific features for USDA launch[12:59] A new emerging narrative in DeFi: Is building on-ledger applications that are transparent, leverage smart contracts, and are also compliant becoming a big growth area for DeFi?[14:10] Astrolescent's plans for the liquidity around their first product, the USDA stablecoin[16:03] Astrolescent's challenge with state-by-state banking regulations in the US[16:59] The global availability of USDA and who can use it[17:54] Can USDA be freely transferred after purchase or is it subject to restrictions?[18:42] Astrolescent leverages the powerful rule set associated with tokens in the Radix engine to future-proof their stablecoin and build a product that works for both DeFi and traditional finance.[21:04] Hybrid permissioned and permissionless systems, regulation, and innovation in DeFi[24:45] What is the most useful thing that the Radix community can do for Astrolescent right now?Further resourcesWebsite: astrolescent.com Twitter: @astrolescent
Journey to the Radix Revelation With Will Jones
Jun 2 2023
Journey to the Radix Revelation With Will Jones
SummaryOn this episode of the podcast, Piers talks with Will Jones, founder of Paper Street Capital, about his experiences with Scrypto and the future of decentralised development. Paper Street Capital is a crypto investor who came from TradFi and follows the same fundamental principles that worked in the traditional space, but now in Web3, betting on people.From his admiration for Radix to his experiences with Solidity and Scrypto, Will shares his insights into the challenges and opportunities facing developers in the crypto space.During the discussion, Will and Piers talk in detail about Scrypto, a Rust-based programming language for Web3 development. They discuss the importance of asset handling and security, the user-friendliness of Scrypto, and the challenges of code reusability in public ledger code. They also explore the potential for blueprints and components to incentivize creativity and reward developers with royalties.Key takeawaysScrypto is a Rust-based programming language for Web3 development that emphasises asset handling and security, user-friendliness, and code reusability through blueprints and components.Radix has implemented a system of micropayments for useful actions on the ledger, with delegated fees allowing third parties to pay transaction fees on behalf of users.Scrypto is intuitive and rewarding, with the use of polished blueprints and components lowering the bar for entry-level developers.The transaction manifest simplifies the process of composing smart contracts and allows for greater composability.A blueprint is a piece of functionality that you want to instantiate on the Radix ledger, while a component is the functioning smart contract on top of the ledger. They allow for safer and cheaper instantiation of code and easier code reusability for building more complicated applications.Chapters[01:09] How Radix's presentation and focus on pain points in the crypto industry impressed Will Jones[03:08] Scrypto's technical features: a bowling alley with gutter guards down[04:48] Radix's story of creating Scrypto, the secure and user-friendly Rust-based programming language for Web3 development[12:00] Will Jones's experience learning blockchain programming: Solidity vs Scrypto, and blueprints as Lego pieces for Web3 development[14:25] Radix's blueprint and component system: safer and cheaper instantiation of code and easier code reusability in public ledger development[23:05] How blueprints and components in Scrypto can incentivize creativity and reward DeFi developers with royalties[24:30] Incentivizing useful code: how Radix is using micropayments and delegated fees to accelerate their ecosystem[28:42] The benefits of Scrypto: lowering the bar for entry-level developers, saving time and stress in Web3 development with components and blueprints[30:52] Avoiding Ethereum's risks: the benefits of Radix and Scrypto[35:03] Efficient development using the tools and components of the Radix marketplace[36:09] The power of coordination layers: standardised building blocks for innovation[38:06] The role of components in the Radix ecosystem[40:11] Building dApps with ease and efficiency, low barrier to entry, and polished, easy-to-use components and blueprints[43:12] The benefits of Radix's transaction manifest for smart contract development[48:38] Simplifying DeFi: how Radix is improving user experience
Transforming Web3 and why NFT2.0s are more than just Monkey Pictures
May 19 2023
Transforming Web3 and why NFT2.0s are more than just Monkey Pictures
In this episode of the DeFi Download podcast, Piers Ridyard and Bruno Škvorc, the founder of RMRK, delve into the RMRK NFT 2.0 standard and the Singular marketplace, which is designed to showcase the possibilities of NFT 2.0s. They also talk about marketing challenges and Bruno’s hope for widespread technology adoption. SummaryRMRK (pronounced “remark”) is a collection of smart contract standards and building blocks that allows NFTs to be infinitely extended and exist as NFT2.0s. It runs on the Kusama blockchain, Polkadot's canary network, without requiring parachains or smart contracts, and aims to elevate NFTs beyond just monkey pictures.Key takeawaysRMRK is a protocol created by a team of developers who are working to establish a new standard for NFTs. This new standard enables more complex data structures to be used.The RMRK team has created a marketplace called Singular that showcases the possibilities of the NFT 2.0 standard and allows artists and collectors to trade NFTs 2.0. Singular is very much like the OpenSea of NFTs 2.0.NFTs can be used to represent anything from music tracks to financial instruments.Adopting a new idea, even if it's a really good one, can be difficult. To capture the popular imagination, it's important to create a narrative around a new technology.The RMRK team has struggled with marketing their technology, but they recognise that it is necessary to build familiarity through exposure.Chapters[01:06] The origin story of RMRK[02:52] The journey of RMRK: from hacking NFTs on layer 1 to building robust cross-platform standards[06:46] Game equipables and the power of NFTs owning NFTs and equipables[10:35] Examples of combining fungible tokens with non-fungible tokens to experiment with data structures in a decentralised way[13:01] Exploring the boundaries of NFTs: Should chat history be an NFT?[14:06] Is the creation of identity and reputation as on-ledger objects leading to lighter front ends?[15:52] NFTs owning NFTs and fungible tokens: how does it differ from a wallet?[18:02] Social media and finance are converging on Web3 and DeFi, but there may also be a convergence with gaming. Will game skill sets be the next big thing in DeFi?[24:24] Does a large number of generative arts need to be involved in making two pieces of artwork together in NFTs and making a new collection compatible with equipables?[27:20] Younger generations have grown up with digital gaming and missions, which can be applied to the DAO economy and lead to interesting developments. What are some examples of groups understanding and using the RMRK standard?[28:39] The value of reputation in building successful Web3 communities: lessons from Web2 communities like Reddit[30:23] What is the new marketplace that Bruno is building besides RMRK?[32:57] What defines success for Singular? Is it having many RMRK-standard marketplaces or becoming the main NFT2.0 trading platform?[34:29] Overcoming the challenges of introducing a good idea to the world and the road ahead for RMRK[36:03] The importance of narrative in NFT 2.0 adoption — RMRK's nestable NFTs and Radix compatibility[38:00] Navigating the RMRK and Singular ecosystems: where to start?Further resourcesRMRK Website: rmrk.app Singular App: singular.app Twitter: @RmrkApp Bruno’s Twitter: @bitfalls
Zerion - creating a web3 wallet for the mass market
May 12 2023
Zerion - creating a web3 wallet for the mass market
In this episode of the DeFi Download, Piers Ridyard and Evgeny Yurtaev, CEO and co-founder of Zerion, discuss the importance of smart wallets that help users avoid mistakes, the upcoming Zerion extension release, and the challenges of designing a user-friendly onboarding process for Web3.  SummaryZerion is a Web3 non-custodial crypto wallet and asset management platform. It is designed to provide users with a seamless and secure experience when managing their digital assets. The Zerion Wallet has gained over 100,000 users and facilitated more than 600,000 transactions with over $1.5 billion in volume since June 2022.With the upcoming release of the Zerion browser extension, users can expect even more features and functionalities that will enhance their experience. For instance, the extension will offer transparency during transaction signing and website validation. Zerion has a large and active Discord community and an API for Web3 developers.Key takeawaysSeed phrase-based wallets are currently the most accessible and easiest to use, and Zerion is researching account abstraction and multi-party computation for better user experience and security.The upcoming Zerion browser extension will offer transparency during transaction signing and phishing website checks.Web3 can enhance finance and internet user experience by focusing on the user's data. Wallets must provide a good user experience to promote free competition and enable users to choose the best wallet interfaces.Chapters[01:25] The user experience of crypto wallets and recent hacks, as well as the idea behind Zerion and why it was built[03:35] Zerion’s key insights and unique selling proposition in the crypto wallet market[06:21] The reasons behind the poor user experience of crypto wallets and the importance of fixing it[08:14] Web3’s role in enabling flexible user experiences for crypto wallets, Evgeny’s views on its impact on business opportunities, and Zerion’s competitive advantage[11:07] The future of crypto wallet user experience, according to Evgeny: specialisation and personalization, similar to operating systems[12:51] The role of crypto wallets in the industry compared to messaging, decentralised social media, and file storage and their potential expansion to include such services[15:57] Current availability of the best possible public-private key infrastructure, the bifurcation of the crypto wallets between authentication and asset control vs. all-in-one services, and the thin versus fat stack debate[18:25] How Zerion helps users avoid losing assets through blind signing mistakes[20:09] The problem of seed phrases: the anti-seed-phrase movement, Zerion's standard form using private keys, and their plans for social recovery[22:26] The benefits of account abstraction, its integration into the Radix ledger, and the challenges of user onboarding[25:04] The challenge of being backwards compatible with past technologies and the advantages of a new ledger like Radix[25:38] Zerion's goals for 2023[27:23] The Zerion Browser Extension[28:48] The best place to get started with Zerion[29:32] The first thing to do after downloading the Zerion WalletFurther resourcesWebsite: zerion.ioTwitter: @zerionEvgeny’s Twitter: @evgeth_Discord: https://zerion.io/discord
Keyrock: Keeping crypto liquid and the future of DeFi
Apr 28 2023
Keyrock: Keeping crypto liquid and the future of DeFi
This week’s DeFi Download Podcast features Juan-David Mendieta, co-founder of Keyrock. Piers Ridyard and Juan-David discuss Keyrock's market-making services and the potential of DeFi to create a more equitable and accessible financial system.SummaryKeyrock is a market maker that facilitates the adoption of tokenized economies. It trades on over 85 exchanges and in 500 markets, with a trading volume of billions of dollars. Juan David Mendieta is Keyrock's co-founder and Chief Strategy Officer.Key takeawaysJuan-David questions the traditional economic model and how it relates to Bitcoin, suggesting that Bitcoin could be a viable alternative to the traditional economic model.Piers and Juan-David discuss the differences between a store of value and fiat currency, as well as the impact of a deflationary asset such as Bitcoin on debt and interest rates.Because rising asset values might result in higher interest rates, the deflationary nature of Bitcoin can have an impact on debt.Juan-David suggests that in the future, we could live in a world where all value is held in digital assets, and we would no longer need a separate exchange asset. He uses an example of headphones with an NFT (non-fungible token) to illustrate how this could work.Chapters[01:14] The source of Juan-David’s passion for cryptocurrency[02:51] The unique perspective of a central banker on Bitcoin's potential value[05:30] Differences between fiat currency and store of value: impact on debt and interest rates in a Bitcoin-based hard money system[08:55] Piers' thoughts on Juan-David's thesis that all value can be held in digital assets without the need for a separate exchange asset and blockchain's potential to facilitate value exchange with a time component[12:55] Piers and Juan-David discuss a universal method for exchanging cryptocurrency, mentioning Bancor's ICO and expressing admiration for Carbon, an AMM developed by Bancor DAO contributors.[14:35] Juan-David's idea that everything has a value and can be traded for everything else — Keyrock's role and thoughts on the current and future importance of token liquidity and market making[19:37] The differences between market making and the Uniswap model — When should a project move from a bootstrap liquidity model to a market maker?[25:54] The Keyrock DeFi team and its unique approach to market making, focusing on both centralised and decentralised exchanges[28:48] The Keyrock team's research findings on up-and-coming DeFi companies, specifically GMX [32:52] The GMX protocol for advanced capital providers allows for selective positioning and efficient price discovery.[35:13] Upcoming developments in the DeFi space, such as Carbon[37:41] The potential of derivatives on decentralised exchanges: incorporating pricing models into derivatives[41:43] How projects looking for a market maker can get in touch with KeyrockFurther resourcesWebsite: keyrock.eu Twitter: @KeyrockTradingJuan-David’s Twitter: @JuanDMendietaLinkedIn: linkedin.com/company/keyrock/
DappRadar: The World’s Dapp Store
Apr 23 2023
DappRadar: The World’s Dapp Store
In the latest episode of the DeFi Download podcast, the CEO and co-founder of DappRadar, Skirmantas Januškas, was interviewed by Piers about the origins of his platform and the challenges of tracking dApps in the ever-changing landscape of the blockchain industry.SummaryIn recent years, the industry of Web3 decentralised applications (dApps) has exploded, reaching a tipping point of mass adoption with millions of users and hundreds of billions of dollars locked up in DeFi protocols. DappRadar pioneered reliable on-chain metrics and became the primary dApp discovery destination. DappRadar is evolving into the World's Dapp Store and introducing the RADAR token to reward user participation and contributions.Key takeawaysDappRadar is a comprehensive source of information on dApps across multiple platforms (and will soon include Radix). This is a crucial feature as it allows users to have a one-stop shop for information on different dApps available on different blockchain platforms and saves them time and effort in searching for information on different platforms.DappRadar is a significant player in the DeFi space, with ambitious goals and a community-driven approach.DappRadar has ambitious goals and is constantly striving to grow its user base. Its goal is to have millions of owners and billions of users, and there are currently half a million monthly active users on the platform.Chapters[01:14] When was DappRadar founded?[03:04] Skirmantas was captivated not only by CryptoKitties but also by the idea of using blockchain technology for purposes other than simply storing value in Bitcoin. He was particularly intrigued by the concept of smart contracts, which enable trustless logic execution. He also saw how blockchain technology could aid in the prevention of scams in activities like online poker.[04:26] Why Skirmantas chose to build DappRadar[06:27] The challenges of keeping data up to date in the DeFi space[09:09] Major trends for 2023 based on DappRadar’s experience as a comprehensive gateway to Blockchain information[12:22] Speculations for the future of play-to-earn (P2E) games in the year 2023[14:09] The shift in focus in the Web3 games space from speculation on assets to user-focused services, the challenges of building a successful game economy, and the experimentation that is taking place in this area[15:48] Gamification of non-gaming activities such as CrossFit and the potential for creating economies[18:09] Skirmantas’ hardest lessons in building a business and user base[20:48] Linking audience engagement, dApp tracking, and the RADAR token[22:56] While some dApps are simple to track on the DappRadar platform, others necessitate more effort and communication with developers. The platform relies on community contributors to assist with this process and to strengthen the overall dApp store. What role does the RADAR token play in this process? [24:04] Using the RADAR token to incentivize community contributions[27:37] DappRadar's monthly active users and token holders, as well as its strategy for reaching millions of owners and billions of users[30:32] The number of DappRadar contributors [30:53] How to participate in the DappRadar communityFurther resourcesWebsite: dappradar.com Forum: forum.dappradar.comDiscord: discord.gg/4ybbssrHkm GitHub: github.com/dappradar Twitter: @DappRadar
Dappnode and how to empower anyone to run a professional validator
Apr 14 2023
Dappnode and how to empower anyone to run a professional validator
In this episode of the DeFi Download podcast, Piers talks with Pol Lanski, Project Lead of Dappnode, about the benefits of running a validator node in a decentralised network like Ethereum or Bitcoin, and how Dappnode makes it simple for anyone to do so. SummaryDappnode is a platform that allows users to run validator nodes and participate in decentralised networks without needing technical expertise. It promotes network security and decentralisation while supporting economic accessibility through its liquid staking derivative (LSD) networks and other tools.Key takeawaysRunning nodes in decentralised networks is critical for ensuring decentralisation and contributing to network security. There is a push toward economic accessibility, which Dappnode's liquid staking derivative networks and other tools can help with.Users can drop their ETH into liquid staking derivative (LSD) networks and receive a derivative of that ETH, which can then be deployed into validators on Dappnode.Dappnode is a platform that allows users to easily run their own nodes as an alternative to relying on third-party services. It also enables users without technical knowledge to participate in these networks and manage their validators.Monitoring staking performance is vital for users, and Dappnode provides integrated open-source dashboarding tools for this purpose.Dappnode is an open ecosystem, which means that anyone can contribute to and build on it. It provides solutions for people who cannot afford the 32 ETH required to run an Ethereum validator to participate in the decentralised revolution.Chapters[01:09] Why is it important that anyone be able to run a validator node?[04:15] What is the intellectual leap from using IPFS for file storage and website hosting to running nodes on Ethereum?[09:10] Piers highlights the importance of syncing up with consensus in decentralised networks and explains how Infura offers a useful solution in this context. [15:18] Piers discusses Ethereum's shift from proof of work to proof of stake, emphasising the importance of decentralisation in Ethereum's design and mentioning that running a validator node with at least 32 ETH can earn fees and contribute to the security of the network. Dappnode is a way to make running a node easier. What was involved in running an Ethereum node before Dappnode came along?[24:25]  What kind of guarantees are there around the software being up to date and running once installed?[25:40] Within what timeframe does Dappnode typically do the updates?[26:47] Piers emphasises the importance of users being able to monitor the performance of their staking. Has Dappnode developed any dashboarding solutions for this purpose?[30:36] The staking amount required for Ethereum's validator software has decreased from 10,000 ETH to 32 ETH. While this is a significant reduction, 32 ETH remains a considerable amount of money. Are there any solutions provided by Dappnode for individuals who wish to participate in the decentralised revolution but cannot afford 32 ETH?[34:50] Piers mentions the debates surrounding the use of Delegated Proof of Stake (DPoS) versus Proof of Stake (PoS) in blockchain technology. When can we expect Dappnode to make this technology available for those who want to get involved but don't have a large amount of capital to invest?[39:39] Where can you find out more about Dappnode and how to get involved?Further resourcesWebsite: https://dappnode.com/ Discord: https://discord.gg/dappnode Twitter: https://twitter.com/DAppNode
FLUID.finance and how AI can improve investment returns in DeFi
Feb 24 2023
FLUID.finance and how AI can improve investment returns in DeFi
In this episode of the DeFi Download, Piers Ridyard interviews Ahmed Wael Ismail, Founder and CEO of FLUID, an AI-based liquidity aggregator for CeFi and DeFi. In the interview, Ahmed discusses FLUID's liquidity aggregation platform and how it works to solve the problem of highly fragmented liquidity in the crypto market.SummaryFLUID is an AI-based liquidity aggregator for CeFi and DeFi. The platform provides a seamless and efficient solution for users to access multiple liquidity pools and execute trades at the best available prices. FLUID offers transparency and security. In addition, the FLUID team is working to expand the range of supported assets and liquidity sources, so that users can benefit from an ever-growing ecosystem of financial opportunities.FLUID is primarily focused on institutional clients and exchanges, but also has a B2C strategy in place. The company plans to launch a token for retail users and expand into futures, options, and tokenized markets.Key takeawaysLiquidity refers to the availability of tokens to purchase on exchanges.Liquidity aggregation solves the problem of highly fragmented liquidity in the crypto market, leading to market inefficiencies and high costs for buying and selling crypto assets.Smart order routing looks at all the order books to get the best possible price and the least slippage.FLUID uses AI to predict market latency and provide optimal execution by analysing complex and unstructured data.Best execution is a concept in financial markets that focuses on getting the best possible price for the investor.The accuracy of FLUID's AI-based strategies can predict BTC and ETH in up to 8 seconds with 99.5% accuracy and up to 30 seconds with 95% accuracy using hybrid models.FLUID's target users include institutions, exchanges, and retail markets.Chapters[01:03] What is a liquidity aggregator and why do we need one?[03:53] How does FLUID's liquidity aggregator work?[08:38] Why does FLUID use AI in its liquidity aggregation?[12:17] Why doesn't the FLUID team trade on it themselves?[13:56] Why FLUID's type of liquidity aggregator is needed in the market[15:21] Liquidity in decentralised vs. centralised exchanges and the role of liquidity aggregation in making execution more efficient[19:09] The potential problem of liquidity aggregation in tier 3 and 4 exchanges: Liquidity mirroring and circular reasoning[25:10] Who takes the execution risk when a price is quoted on FLUID? Is the exchange obligated to fill an order or is it just an offer that they will do their best to fulfil?[27:23] Potential issues with executing transactions on decentralised exchanges: Delays due to Ethereum finality and the possibility of front running[30:07] Status of development and launch timeline for FLUID[31:50] FLUID's vision for the future of liquidity aggregators[34:36] FLUID's customer base and how retail fits into the company’s vision[36:55] Piers' closing remarks and expression of excitement for FLUID's potential value for the industry[37:33] Where to find more information about FLUIDFurther resourcesWebsite: fluid.financeTwitter: @FLUID_liquidityAhmed’s Twitter: @AhmedWIsmailTelegram: t.me/FLUID_liquidity
Omar Yehia: Venture Capital and the importance of decentralisation
Feb 10 2023
Omar Yehia: Venture Capital and the importance of decentralisation
With Omar Yehia In this episode of the DeFi Download, Piers Ridyard discusses investing with applied mathematician Omar Yehia. They explore issues in academia, the importance of trust in crypto, and how to approach investing by examining personal assumptions and moving away from biases, while considering the trade-offs of decentralisation and the concepts of ease of use, robustness, and elegance in systems.SummaryOmar Yehia has a background in science and applied mathematics. He is an expert on building successful primitives while avoiding common mistakes. Omar has done extensive research in the field of rocket science and photonics. Fascinated by the mathematical principles behind these fields, Omar became drawn to a reductionist approach to life and eventually went on to study applied mathematics. Key takeawaysAcademic institutions and government bureaucracies share parallels. The current academic system is inefficient and misallocates resources. The private market for distributed ledgers and blockchains has contributed to a recent acceleration in cryptography, with more breakthroughs in the past four years. The majority of individuals are uninterested in decentralisation despite its evident advantages. At the heart of almost every financial crisis is misplaced trust.Constantly examining hypotheses is vital, especially for concepts that have never been tested in the wild and that you got from someone else. In order to fulfil their obligation to their investors, capital allocators must abandon their personal biases and be patient as they refresh their information and worldview. Chapters[00:53] Omar’s background[03:50] Omar's response to Piers' thesis on misaligned incentives in academia and their resemblance to communism.[10:32] Philosophical and practical issues pertaining to the crypto industry's balancing of long-term incentives[13:17] Benefits and limitations of the private market[14:48] Examining Omar's foray into crypto[20:56] Omar’s journey from the Ethereum yellow paper to investing[22:03] Omar's key insights from the evolution of cryptocurrencies from 2017 to the present day[23:26] The Faustian pact of Web2, sacrificing privacy for ease, and the Faustian pact of Web3, centralization in exchange for convenience.[26:26] Innumeracy regarding the law of statistics[27:21] Fundamentally misplaced trust as the root cause of the FTX, Three Arrows, and Celsius tragedies[29:22] The most crucial next steps for crypto and Omar's investments[32:34] Decentralisation, usability, and robust elegance [38:55] Omar’s investing philosophy: Investing in what you believe will be most profitable vs the future you wish to see Further resources: Omar’s Twitter: @0xomaryehia
Parallel Execution: the Radix approach vs Solana/Sui/Aptos/Fuel with Alliance DAO
Feb 3 2023
Parallel Execution: the Radix approach vs Solana/Sui/Aptos/Fuel with Alliance DAO
With Mohamed Fouda, Alliance DAO ContributorIn this special edition of the DeFi Download, Piers Ridyard is joined by Mohamed Fouda, the head of research at Alliance DAO and co-founder of Volt Capital, as well as Matthew Hines, Chief Product Officer of RDX Works. The focus of the discussion is parallel execution within the realm of decentralised finance. SummaryIn today's episode, Piers, Matt, and guest Mohamed Fouda talk about parallel execution in blockchain and smart contracts. They discuss methods for identifying independent blockchain transactions and analyse their benefits and drawbacks, offering examples in AMMs and Ethereum. They cover Radix's parallel execution design, system design layers of abstraction in Cerberus and Babylon, and the drawbacks and implementation complexity of parallel execution. They also discuss the state bloat problem, ways to reduce blockchain history and the pros and cons of horizontal scaling in blockchain technology.Alliance DAO is a blockchain-based platform that aims to support and invest in promising projects and entrepreneurs in the space. It runs a cohort program for founders and is always looking for smart and passionate individuals who have a long-term commitment to the space.Key takeawaysEthereum, the most well-known blockchain for smart contracts, operates using a single-threaded processor. The limitations of single-thread execution in Ethereum have opened opportunities for other protocols to offer better solutions.There are two main approaches to identifying independent transactions in the blockchain. The first approach, where the smart contract defines the state and identifies which transactions have access to which part of the state, was implemented in Solana and the Sealevel execution environment and in Sui (object). The second approach is called "optimistic execution" and is adopted by Aptos.It may be necessary to use Optimistic Execution in certain circumstances, but it has its limitations. A benefit of Optimistic Execution is that it pushes the problem to the validator and away from the developer, and hides the complexity from the developer.The Radix approach is a hybrid solution that starts with the idea of assets as important and fundamental to the network, with everything represented as resources.Parallel Execution can remove the bottleneck of serialisation but can lead to centralisation.Chapters[01:53] Mohamed describes parallel execution in the context of blockchain and smart contracts.[05:14] Single pipeline in Ethereum: A dramatic design choice with compatibility Implications[08:07] Identifying independent transactions in Blockchain: An overview of two approaches[13:56] Optimistic model:  Advantages, trade-offs, and examples in AMMs and Ethereum[16:05] Analysis of public ledger usage on Ethereum: Interactions with smart contracts and critique of Optimistic Execution[20:54] Radix’s design philosophy for parallel execution[28:36] Layers of abstraction in the system design of Cerberus and the Babylon network[31:12] Disadvantages of Parallel Execution[35:14] Implementation complexity[37:26] The state bloat problem in Blockchain technology[40:47] Techniques for reducing the size of the Blockchain history[42:52] Advantages and disadvantages of horizontal scaling in the network[46:56] Information on Alliance DAO and Mohamed FoudaFurther resourcesAlliance DAO Website: alliance.xyzMohamed’s Twitter: @MohamedFFouda Mohamed’s Medium: @fouda
Matty at Sino Global Capital: Macro markets, launching crypto in China & Tornado Cash
Jan 20 2023
Matty at Sino Global Capital: Macro markets, launching crypto in China & Tornado Cash
In this episode of the DeFi Download, Piers Ridyard is joined by Matthew Graham, founder, and CEO of Sino Global Capital, to discuss macrotrends, the significance of the Chinese market for cryptocurrencies, the repercussions of GitHub's ban on the Tornado Cash code, and the struggles and opportunities arising from de-globalization. Chapters[01:03] How did the Matty Sino story begin?[02:55] What was it about Ethereum that convinced Matthew that it was a once-in-a-generation opportunity?[05:10] When was Sino Global Capital established?[05:44] How and why did Sino Capital choose to focus on China?[07:52] According to Matthew's experience, how has China changed in terms of foreigners working there and establishing a successful foreign enterprise in the Chinese market?[09:30] What does Matthew recommend to his portfolio companies in terms of entering the China markets, which most people find terrifying?[11:40] What is the company's general thesis?[13:19] What distinguishes Matthew from other crypto fund managers?[14:16] What are the recurring macrotrends from previous historical periods that Matthew believes will be important in the next 5-10 years?[16:33] What Matthew sees as likely bright spots for the next wave of DeFi applications[19:17] Browsers, a piece of software that people had never used before and had to be taught how to use in order to access the internet, were required for the internet’s widespread adoption. Are we going to need something similar for crypto?[20:39] What is Matthew's general outlook on the current events in the market and how they are affecting crypto?[22:11] Many people are concerned about China's shadow banking system and the potential collapse of its property markets, which could have repercussions elsewhere. Is Matthew concerned about a China collapse in the property or financial markets in the next two years?[24:15] Why should the crypto industry care about de-globalization?[25:17] An example of internet balkanization, the Great Firewall of China being primarily a trade rather than an information barrier, the effect such barriers have on the survivability of local businesses and the birth of local innovation, and how a global business would benefit from internet balkanization.[28:13] The information barrier as experienced by the average Chinese person and the middle-class, and the decline in interest in using foreign services as a result of the proliferation of domestic alternatives[31:01] What does Matthew think about Tornado Cash's censorship in terms of government intervention in markets?[32:43] What action should the US government have taken instead, and what should be done in response to people removing Tornado Cash code from GitHub?[33:43] The Napster example of file sharing and copyright infringement facilitation: Are we transferring the same concept to a new platform?[37:27] The crypto industry's failure to engage regulators[39:01] What impact will the Terra Luna collapse have on the regulatory response? [40:54] What, if any, good can come from Terra Luna's collapse? [43:16] Will there be a self-regulator for the cryptocurrency industry, like there is for the pharmaceuticals industry?[44:03] Is there a future and a place for centralised finance (CeFi)?[45:29] Where can you learn more about Matthew and Sino Global Capital?Further resourcesWebsite: Sino Global CapitalTwitter: @SinoGlobalCapMatthew’s Twitter: @mattysino
Scaling Axie Infinity to 2.7 million daily active users with Aleksander Larsen
Jan 12 2023
Scaling Axie Infinity to 2.7 million daily active users with Aleksander Larsen
In this episode of the DeFi Download, Piers Ridyard chats with Aleksander Larsen, co-founder of Sky Mavis, makers of Axie Infinity, the largest blockchain game to date, which at its peak had over 2.7 million daily active users. Discussion topics include the criticality of the social aspect of gaming, the challenges of creating an interoperable world within the same IP, and the revolutionary potential of NFTs.Chapters[02:33] The backstory of Axie Infinity and Smooth Love Potion[05:09] Aleksander's background[06:31] If everything had already been made and discovered in the gaming industry, why would Aleksander want to get involved? Just what was it about making video games that still interested him?[07:18] A consumer's natural tendency is to look for faults rather than the things that make a product great. You can't fully appreciate the effort and ingenuity that goes into building something until you switch roles from consumer to creator. Was Aleksander's experience as a game developer reflective of his prior sentiments toward games as a gamer?[10:48] In what ways did Aleksander find CryptoKitties to be flawed?[16:02] What changes have occurred in Axie Infinity’s vision as time has progressed? How similar is the current artwork to the original?[17:52] How does Axie Infinity's approach differ from something like Flow Blockchain?[21:46] How did Aleksander maintain his optimism and motivation through Axie Infinity's low points, when the company had only a month's runway, the market was in the middle of a bear run, and members of the community were leaving in droves?[25:28] Why, in Aleksander's opinion, will the introduction of NFTs and the ability to own digital property have such a profound effect on society at large?[27:48] Web 3.0, DeFi, the NFT space, and the gaming industry all place a greater emphasis on achieving community product fit before product market fit. How did Axie Infinity achieve it, and what is the formula, according to Aleksander's knowledge?[30:01] Beyond not being present, what are the most common causes of failure when organising a new community?[33:48] How did Axie Infinity find product market fit, and what factors were instrumental in turning it from an interesting concept into a viable product?[37:31] What happened internally when their own blockchain Ronin was launched, and the number of daily users increased by the thousands?[41:45] How did Aleksander and his team decide what to prioritise when they first started scaling?[45:41] Important lessons[48:33] Aleksander's top tips for entrepreneurs considering developing an NFT-based gameFurther resourcesWebsite: axieinfinity.com Twitter: @AxieInfinity Aleksander’s Twitter: @psycheout86 Discord: discord.com/invite/axie