Parallel Execution: the Radix approach vs Solana/Sui/Aptos/Fuel with Alliance DAO

The DeFi Download

#Tech #Radix DLT #Finance #Business #Business Disciplines

40:34

We’ve turned intuition into a buzzword—flattened it into a slogan, a gut feeling, or a vague whisper we don’t always know how to hear. But what if intuition is so much more? What if it's one of the most powerful tools we have—and we’ve just forgotten how to use it? In this episode, I’m joined by Hrund Gunnsteinsdóttir , Icelandic thought leader, filmmaker, and author of InnSæi: Icelandic Wisdom for Turbulent Times . Hrund has spent over 20 years studying and teaching the science and art of intuition through her TED Talk, Netflix documentary (InnSæi: The Power of Intuition), and global work on leadership, innovation, and inner knowing. Together, we explore what intuition really is (hint: not woo-woo), how to cultivate it in a culture obsessed with logic and overthinking, and why your ability to listen to yourself might be the most essential skill you can develop. In This Episode, We Cover: ✅ Why we’ve misunderstood intuition—and how to reclaim it ✅ Practical ways to strengthen your intuitive muscle ✅ What Icelandic wisdom teaches us about inner knowing ✅ How to use intuition during uncertainty and decision-making ✅ Why trusting yourself is an act of rebellion (and power) Intuition isn’t magic—it’s a deep, internal guidance system that already exists inside you. The question is: are you listening? Connect with Hrund: Website: www.hrundgunnsteinsdottir.com TedTalk: https://www.ted.com/talks/hrund_gunnsteinsdottir_listen_to_your_intuition_it_can_help_you_navigate_the_future?utm_campaign=tedspread&utm_medium=referral&utm_source=tedcomshare Newsletter: https://hrundgunnsteinsdottir.com/blog/ LI: www.linkedin.com/in/hrundgunnsteinsdottir IG: https://www.instagram.com/hrundgunnsteinsdottir/ Book: InnSæi: Icelandic Wisdom for Turbulent Times Related Podcast Episodes: How To Breathe: Breathwork, Intuition and Flow State with Francesca Sipma | 267 VI4P - Know Who You Are (Chapter 4) Gentleness: Cultivating Compassion for Yourself and Others with Courtney Carver | 282 Share the Love: If you found this episode insightful, please share it with a friend, tag us on social media, and leave a review on your favorite podcast platform! 🔗 Subscribe & Review: Apple Podcasts | Spotify | Amazon Music Learn more about your ad choices. Visit megaphone.fm/adchoices…

2 years ago 49:12

MP3•Episode home

With Mohamed Fouda, Alliance DAO Contributor

In 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.

Summary

In 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 takeaways

Ethereum, 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 Fouda

Further resources

Alliance DAO Website: alliance.xyz
Mohamed’s Twitter: @MohamedFFouda
Mohamed’s Medium: @fouda

106 episodes

Parallel Execution: the Radix approach vs Solana/Sui/Aptos/Fuel with Alliance DAO

The DeFi Download

46 subscribers

published 2 years ago

MP3•Episode home

With Mohamed Fouda, Alliance DAO Contributor

Summary

Key takeaways

Ethereum, 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 Fouda

Further resources

Alliance DAO Website: alliance.xyz
Mohamed’s Twitter: @MohamedFFouda
Mohamed’s Medium: @fouda

106 episodes

#Tech #Radix DLT #Finance #Business #Business Disciplines

All episodes

The DeFi Download

1
Pyth.Network: Smarter Data for Smarter Contracts 28:14

24 weeks ago28:14

28:14

Summary Pyth is a decentralized data infrastructure designed to power the future of finance on chain. It functions as a data marketplace where providers can contribute proprietary pricing data to the Pyth oracle, which is then made permissionlessly available to developers. With over 80 supported blockchains and 500 price feeds, Pyth secures more than $5 billion in value on ledger and has facilitated over $900 billion in cumulative traded volume in the past year. Marc Tillement takes us on a journey through Pyth’s evolution—from launching on Solana in 2021 to becoming the industry’s go-to oracle provider. He shares how Pyth leveraged its early positioning to meet the growing needs of DeFi while addressing challenges like Solana’s downtimes and scaling to a cross-chain ecosystem. Marc introduces the concept of a pull oracle, a system that enables on-demand price updates, where the data is fetched or "pulled" by the application (or user) that needs it, rather than being pushed to the application automatically at regular intervals. This breakthrough not only slashes costs compared to push models but also ensures developers can build more efficient and user-friendly applications that are better customized for different use cases. Marc also talks about Pyth’s Oracle Integrity Staking (OIS), a feature designed to ensure the quality and reliability of data provided by its oracle network. The main purpose of Oracle Integrity Staking is to incentivize good behavior from the data providers and network participants. Listen to this episode to Explore how Pyth was created three and a half years ago to address gaps in the oracle ecosystem and how it aimed to compete with established players like Chainlink during the rise of DeFi. Understand why financial data, especially accurate and timely pricing data, is some of the most valuable in the world and how it impacts trading and market-making decisions. Dive into how Pyth attracted data providers and DeFi projects, creating a two-sided marketplace, and why timing played a crucial role in the platform’s success. Explore the challenges of Chainlink's push oracle model and why Pyth's pull oracle service offers a more efficient, cost-effective solution for high-frequency data updates. Examine Pyth’s rise as the leading oracle provider, its recent institutional adoption, and new innovations like Oracle Integrity Staking, positioning the platform for continued growth. Learn where developers can find the tools and resources to begin building with Pyth’s decentralized data infrastructure. Chapters 00:00 — Introduction 01:16 — The Origins of Pyth 07:42 — From Data Aggregation to the Pyth Oracle 15:24 — Convincing the Crypto Market to Care 22:35 — The Shift from Push to Pull Oracles 27:31 — Pyth's Token & Oracle Integrity Staking 34:49 — Getting Started with Pyth Further resources Website: pyth.network Documentation: docs.pyth.network Twitter: @PythNetwork Discord: discord.com/invite/PythNetwork…

The DeFi Download

1
Maple Finance: A Story of Redemption and Growth in Institutional DeFi 41:52

29 weeks ago41:52

41:52

Summary Piers and Martin dive into the world of Maple Finance and Syrup Finance, tracing their journey from the wild days of DeFi Summer to their current status in the crypto space. They talk about the benefits to using Maple's platform, particularly for borrowers leveraging ETH and BTC as collateral. Maple and Syrup are shaking up DeFi by making loans and investment opportunities super accessible, focusing on tokenization, which turns assets into tradable digital tokens. Tokenization is revolutionizing the borrowing and investing game, unlocking fresh liquidity through Maple's over-collateralized loans and boosting yield optimization with Syrup's accessible lending pools. As the conversation unfolds, Piers and Martin uncover the hurdles in attracting institutional users and stablecoin lenders, highlighting how Maple and Syrup keep a cohesive strategy despite running separately. They delve into the reasons behind Syrup's launch, distinguishing its unique perks compared to big names like Aave and Compound. Piers and Martin stress the need for innovative solutions that cater to the evolving needs of DeFi users and explore how these platforms are designed to support a diverse range of users. Looking ahead, they speculate on the potential impact of AI agents on the future of Maple and Syrup, while tackling critical issues like collateral illiquidity. Their insights touch on the historical challenges of real estate tokenization and potential pathways for improvement. Ultimately, they emphasize the transformative power of combining tokenization with borrowing, positioning it as a significant unlock for the DeFi ecosystem. Tune in for an engaging discussion packed with valuable insights, challenges, and future possibilities in the rapidly evolving world of DeFi! Key takeaways Maple Makes Borrowing Sweet and Simple: With tokenized assets, Maple is putting the power to borrow and lend right in users’ hands, making capital accessible without needing a million-dollar portfolio. Syrup Pools for the People: Syrup Finance focuses on building accessible investment pools, so users can start investing and lending alongside DeFi’s best—without needing to dive into complex financials. Tokenization: By tokenizing real-world assets, Maple lets users do more than just hold investments—they can leverage, borrow, and grow their portfolio faster than ever before. Tokenizing Real Estate: Real estate may be a tough nut to crack, but Maple’s approach is helping users start exploring the potential of tokenizing properties, making real estate closer to DeFi than ever. AI-Driven, User-Accessible Markets: With AI on the rise, Maple and Syrup are ready to make market knowledge accessible, letting users manage, trade, and invest as confidently as the big players. Chapters 00:00 — Introduction to Maple & Syrup 01:26 — From DeFi Summer to Building Syrup 06:25 — Why Use Maple? Who’s Borrowing & Why it Matters 10:09 — Who’s Borrowing Using ETH & BTC Collateral 11:52 — Challenges in Attracting Institutional Users 14:37 — Attracting Stablecoin Lenders 18:13 — Maple & Syrup: Separate Platforms, Same Strategy 19:09 — Why Syrup? The Story Behind Its Launch 22:51 — Syrup vs. Aave & Compound: What Sets It Apart? 25:53 — The Future of Maple, Syrup, and DeFi: AI Agents 30:03 — Solving Collateral Illiquidity: Insights & Risks 32:46 — Why Real Estate Tokenization Fails & What's Next 38:17 — Tokenization & Borrowing: DeFi’s Big Unlock 41:21 — Where to Learn More About Maple & Syrup Further resources Maple Finance Syrup @maplefinance…

The DeFi Download

1
SummerFi - $4.7Bn of Aggregated Crypto Lend/Borrow 41:15

44 weeks ago41:15

41:15

In this episode of the DeFi Download, Piers Ridyard interviews Chris Bradbury, CEO of SummerFi. They discuss Chris's journey from MakerDAO to SummerFi, and the development of user-friendly financial tools and innovative features aimed at making DeFi more accessible to a wider audience by automating complex financial strategies. Summary SummerFi curates the best dApps in DeFi to provide the simplest and easiest way to borrow and earn crypto. SummerFi currently manages over $4.5 billion in crypto assets across various DeFi protocols, and in the last 30 days, it has completed $663 million in lend/borrow volume and automated over $275 million in loan positions. Chris talks about his transition from MakerDAO's product manager to CEO of Oasis.app, which rebranded as SummerFi and focuses on trusted, curated DeFi protocols. Chris discusses SummerFi’s recent advancements and strategic vision, he elaborates on how SummerFi plans to simplify DeFi for a broader audience, and also highlights their goal of integrating DeFi with traditional financial systems to make these advanced tools accessible to everyday users, without requiring them to have deep technical knowledge or actively manage their assets. Key takeaways SummerFi integrates key DeFi protocols such as Maker, Aave, Morpho, and Ajna, with a focus on security and usability. It offers features like Multiply, which allows users to leverage assets in a single transaction, enhancing efficiency and safety. SummerFi's automations, such as stop loss, are designed to protect users by managing risky positions and reducing potential losses during market volatility. Automations are non-custodial smart contracts that trigger actions based on predefined conditions, such as closing a position when the loan-to-value ratio exceeds a set threshold. While automations mitigate risks, they are not risk-free and cannot guarantee optimal prices due to potential market slippage, oracle inaccuracies, or network congestion. SummerFi's launch of the $RAYS point system aims to incentivize user engagement and reward active management, paving the way toward broader adoption. SummerFi plans to expand and achieve mainstream adoption by also developing a new Summer Earn protocol that simplifies DeFi participation, offering users automatic yield optimization similar to traditional wealth management products. Chapters 01:27 — Chris's background and how he got into crypto 02:27 — Insights gained from MakerDAO and Dai 07:16 — Why was Oasis created & how it became SummerFi 14:23 — Protocols SummerFi currently supports 15:39 — The split of crypto assets under SummerFi 18:24 — Automations addressing volatility in leveraged products 22:21 — What is an automation and why is it powerful 25:21 — What stop-loss is for 29:23 — SummerFi's growth plans and the point-based system 32:07 — What does the product that 100 million people can use look like? 35:09 — What makes SummerFi Earn more viable than Yearn 39:58 — Find out more about SummerFi Further resources Website: summer.fi Twitter: @summerfinance_ Discord: discord.com/invite/summerfi…

The DeFi Download

1
Barter: powering the $100Bn decentralised order routing ecosystem 42:01

46 weeks ago42:01

42:01

In this episode of the DeFi Download, Piers Ridyard talks with Nikita Ovchinnik, Co-Founder of Barter, a smart router for DeFi swap routes. They delve into Nikita's foray into crypto, the inner workings of Barter, the MEV problem and its possible solutions, and the importance of market makers. Summary Nikita describes his journey into crypto, which began in 2017 after initial scepticism. He eventually joined 1inch as their first outsider employee. Nikita describes 1inch's explosive growth during the DeFi Summer, as well as its focus on integrating with wallets and navigating the fundraising landscape until eventually securing investment from FTX. The conversation between Nikita and Piers dives next into Barter, exploring its role as a smart router program in the DeFi ecosystem. Barter is a decentralized protocol that provides transparent trade routes across liquidity providers like CoW Swap and UniswapX, minimizing costs and maximizing efficiency. Barter has over $4 billion processed on Ethereum. Key takeaways Understanding MEV: MEV stands for "Miner Extractable Value" and refers to the profit that miners can extract from the reordering of transactions and other manipulations in DeFi protocols. It occurs due to the way transactions are processed and confirmed, which can lead to arbitrage opportunities that benefit miners at the expense of regular users and liquidity providers. MEV has become a significant concern in Ethereum and other blockchain networks where DeFi activities are prevalent. Efforts to Mitigate MEV: Platforms like CoW Swap and UniswapX aim to reduce MEV by implementing strategies such as MEV blockers. These blockers prevent transaction details from being visible in public mempools, thereby limiting the ability of miners to front-run transactions or exploit price discrepancies for profit. By managing how transaction orders are processed and confirmed, these platforms attempt to minimize the negative impact of MEV on users and liquidity providers. Challenges and Future Directions: While MEV blockers represent a step towards mitigating MEV, the challenge remains complex and ongoing. Solutions such as batching and matching user orders across different DEX platforms without tapping directly into AMM liquidity provide users with better rates and lower gas costs, thereby making DeFi more efficient and less susceptible to MEV exploits. However, achieving these goals in a decentralized and efficient manner without reliance on centralized systems remains a significant hurdle. The Critical Role of Market Makers: While the transparency and fairness of traditional market makers on centralized exchanges is under question, advancements in DeFi and AMMs like those on Uniswap are improving liquidity provision to cryptocurrency markets. Despite the fact that market makers are necessary for efficient trading, newer DeFi protocols are offering competitive liquidity solutions, potentially reducing reliance on traditional market makers. Chapters 00:00 — Introduction 01:33 — Nikita's background and journey into crypto 04:40 — Nikita's role and experiences at 1inch 09:22 — FTX's investment in 1inch 11:49 — What is a Smart Router program 13:47 — Barter swaps: Who submits the transaction? 17:02 — The journey from 1inch to Barter 21:57 — MEV: How CoW Swap and UniswapX reduce it 34:22 — Are Market Makers essential? 41:07 — Where to find out more about Barter Further resources Website: barterswap.xyz Twitter: @BarterDeFi…

The DeFi Download

1
Gnosis: the unsung titan of building crypto products with real usage 47:26

47 weeks ago47:26

47:26

In this episode of the DeFi Download, Piers Ridyard interviews Friederike Ernst, co-founder of Gnosis and Gnosis Pay. They cover Gnosis's evolution from foundational blockchain infrastructure like Gnosis Safe and CoW Swap, to user-friendly apps such as Metri and Gnosis Pay. They also discuss blockchain's potential to transform financial infrastructure with projects such as Circles, a blockchain-based UBI protocol. Summary In this episode of the DeFi Download, Piers Ridyard is joined by Friederike Ernst, the co-founder of Gnosis and Gnosis Pay. Gnosis is a group of projects centred around the Gnosis token, with a mission to bring all financial rails on-chain. They started with the highly successful Gnosis Safe, a multi-signature wallet that has now been spun out as Safe, securing over $100 billion in crypto assets. Additionally, their decentralized exchange, CoW Swap, has achieved a remarkable total volume of $45 billion. Friederike shares insights into these groundbreaking projects and discusses the future of decentralized finance. A physicist by training, she talks about the programmability of Ethereum that drew her into crypto technology, what prompted her to co-found Gnosis, and the strategies her team applies to expand distribution and adoption of their product and network. Key takeaways Gnosis was founded to create decentralized payment solutions and other infrastructure that provide tangible value and improve user applications within the Web3 ecosystem. Gnosis initially focused on developing internal-driven products such as Gnosis Safe, CoW Swap, MEV Blocker, and Gnosis Guild, building foundational blockchain infrastructure. They subsequently shifted to creating user-friendly applications like Metri and Gnosis Pay, aiming to offer a neobank-like experience to a wide audience new to blockchain. Blockchain technology can revolutionize financial infrastructure by cutting intermediaries, lowering costs, and improving access, similarly to how VoIP transformed telecommunications. Gnosis is a veteran in blockchain infrastructure with a strong emphasis on decentralization and scalability. Gnosis Chain, a decentralized Ethereum sister protocol boasting over 200,000 validators, offers robust security and scalability advantages over Ethereum's Layer 2 solutions, making it a promising choice for future-proof financial applications. Circles is a blockchain-based UBI (Universal Basic Income) protocol operating on a decentralized web of trust. It combines Bitcoin's algorithmic money issuance with a focus on equitable distribution, unlike Bitcoin's concentration among a minority of the global population, which would exacerbate inequality if widely adopted today. Circles, in contrast, empowers local economies and fosters community-driven adoption over time. Chapters 01:27 Friederike's journey from doctorate to DeFi 05:14 From prediction markets to multi-sig wallets 08:27 Keys to successful product development 13:34 Building products, from MVP to customer delight 15:41 Beyond a neobank-like experience 24:01 How Gnosis could leapfrog financial infrastructure 28:32 Towards a decentralized financial future 30:04 Ensuring global distribution of Metri 35:56 Introduction to Circles 36:44 The drive behind Bitcoin and the case for UBI 39:20 The Impact of Circles 45:43 Key takeaways and finding more about Gnosis Further resources Website: gnosis.io Twitter: @gnosischain Discord: discord.gg/xW3X5EreBM…

The DeFi Download

1
Synthetix: A journey through derivatives in DeFi and Synthetix's role in shaping the DeFi space 34:22

1 year ago34:22

34:22

In this episode of the DeFi Download, Piers Ridyard speaks with Noah Litvin, a Core Contributor at Synthetix. They talk about Synthetix's vision of revolutionizing derivatives trading in the crypto space by providing innovative solutions. Summary Synthetix tackles the challenge of trading derivatives in a crypto-native way, expanding beyond spot trading. Picture it as the derivative equivalent of Uniswap. Synthetix stands as one of the original crypto projects since 2018, playing a pivotal role in the early days of DeFi. It pioneered functionalities that are now commonplace in crypto and pushed the boundaries of what was achievable on public ledgers at the time. Noah Litvin has been actively working with the project for some time. He is currently a Core Contributor at Synthetix, having started as a community member and gradually progressed to become more involved. Noah and Piers explore the evolution of Synthetix, from its origin as Haven to Synthetix v3 and perpetual futures. They cover the challenges earlier versions of Synthetix encountered and the notable enhancements of v3. They also discuss Synthetix's future, its deployment on Base, and cross-chain interoperability. Key takeaways Synthetix aims to revolutionize derivatives trading in the crypto space, similar to how Uniswap revolutionized decentralized exchanges. It focuses on creating synthetic assets and perpetual futures markets on the public ledger. Synthetix addresses issues such as scalability limitations and asset price fluctuations by introducing perpetual futures, which allow for long or short positions without exposing liquidity providers to asset prices. Mechanisms such as funding rates incentivize market equilibrium, enhancing scalability. Synthetix considers itself as a liquidity protocol first, with the overarching goal of creating collateralized stable coins backed by decentralized collateral, supporting multiple liquidity pools with isolated risks. Synthetix aims to offer a diverse range of financial products and opportunities by bringing complexity to the blockchain as transparent tools, similar to the complexity seen in traditional finance managed by large hedge funds. Chapters 01:39 — Noah's journey with Synthetix 03:07 — A basic orientation on Synthetix 04:45 — Tokenized derivatives trading obstacles 08:53 — Improvements in Synthetix v3 10:43 — Perpetuals in DeFi 13:02 — Synthetix V3 user acquisition 18:19 — Synthetix perpetuals vs. competitors 19:44 — Why Synthetix deployed on Base 21:08 — Synthetix's Base vs. Optimism experience 21:50 — Coinbase's role in driving adoption 23:34 — Next steps for Synthetix v3 and project 24:37 — Stability, liquidity, and scalability 27:05 — Synthetix liquidity and TVL 28:05 — Synthetix's liquidity-protocol-first approach 30:19 — Leveraging collateral diversity 33:22 — Learn more about Synthetix Further resources Website: synthetix.io Twitter: @synthetix_io Discord: discord.com/invite/KVeCZe6ahW…

The DeFi Download

1
Kinto: Is a KYC L2 the way that institutional capital gets brought on chain? 43:46

1 year ago43:46

43:46

In this episode of the DeFi Download, Piers Ridyard speaks with Ramon Recuero, Co-Founder and CEO of Mamori Labs, which is developing Kinto. Tune in to learn how Kinto bridges TradFi to DeFi and paves the way for institutional adoption by introducing the first Layer 2 solution with chain-level KYC and addressing concerns about scams, hacks, and traditional financial institutions' perception of cryptocurrency as the "Wild West. Summary Join Piers Ridyard and Ramon Recuero as they explore the inner workings of Kinto, a groundbreaking platform that seeks to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi). Kinto's innovative approach addresses the longstanding issue of security in the crypto space by introducing the first Layer 2 (L2) solution with KYC at the chain level, revolutionizing user protection and trust within the ecosystem. Kinto's native account abstraction enhances security by requiring users to utilize account-abstracted wallets, preventing common scams seen on other chains. Ramon recounts his journey from the gaming industry to crypto and from the traditional finance sector to the realm of DeFi, fuelled by the realization of the disruptive potential of crypto. From his involvement in ventures like OpenSea, to founding Babylon Finance and recently Mamori Labs and Kinto, Ramon's experiences underscore the critical need for trust, security, and regulatory compliance in the crypto space. Discover why Kinto is gaining traction among major financial institutions like Franklin Templeton and BlackRock, indicating a significant shift towards institutional adoption. With a focus on crypto-native RWA protocols and diverse capital inflows from traditional funds like Skybridge and networks like Solana, Kinto is poised to revolutionize the DeFi landscape, catering to both seasoned investors and newcomers with enhanced asset accessibility and streamlined user experiences. Key takeaways Systemic Insurance Integration: Learn how Kinto integrates insurance directly into its system to address vulnerabilities highlighted by past hacks. Revolutionary KYC Approach: Explore Kinto's innovative permissionless KYC system. Chain-Level KYC Enhances Composability: Understand how implementing KYC at the chain level simplifies composability. Increased Institutional Confidence: Discover why institutions find it more secure to deploy capital within a chain-level-KYC Layer 2 like Kinto. Chapters 00:00 — Introduction to Ramon Recuero 01:06 — Ramon's journey to creating Kinto 07:17 — From game developer to crypto enthusiast 09:31 — Why Ramon built Babylon Finance 12:47 — Kinto's systemic insurance 17:48 — Revolutionary Ethereum L2 with on-chain KYC 20:42 — Why KYC at the chain level 22:28 — Kinto's strategy for institutional adoption 23:51 — Addressing regulatory issues & RWA Liquidity 24:57 — Kinto's advantages over existing providers 26:16 — Kinto's capital inflow source 27:47 — Natively-built account abstraction 28:58 — Institutional adoption possibilities 30:22 — Kinto's KYC: Threat to digital commons? 34:19 — Dealing with KYC & AML complexities 38:20 — Counterparty guarantees in tokenized assets 40:12 — Kinto's NFT and proof interoperability 41:28 — Kinto's unique edge 42:57 — How to get involved with Kinto Further resources Website: kinto.xyz Twitter: @KintoXYZ Ramon's Twitter: @ramonrecuero…

The DeFi Download

1
Will Woo: investing principles and finding your purpose. 56:06

1 year ago56:06

56:06

Summary Willy Woo is managing partner at Crest and SyzCrest, a fund that builds financial products to give higher yield than T-bills by harvesting the volatility in crypto. Willy Woo and Piers discuss various aspects of trading, covering topics like price predictions, the balance between intuition and data when building predictive models, and the social value inherent in trading activities. Their conversation extends to exploring the dynamics of DeFi and altcoin markets, drawing comparisons with TradFi, examining market manipulation, and emphasizing the crucial role of transparency in the crypto space. They weigh the pros and cons of transaction privacy in creating a fairer market and touch upon the impact of MEV, DeFi’s high-frequency trading. They explore the three forms of the efficient market hypothesis (EMH), hodling versus directional trading, and the fundamental concepts that are necessary for successful trading. They also examine the concept of purpose, discussing how it motivates individuals in their pursuits. Segueing into Radix, their conversation highlights the Radix team's dedication to their vision and integrity, rather than rushing launch and compromising for easy wins. They talk about compounding games and underscore the need for adopting a long-term view for achieving meaningful, lasting change. Chapters 00:00 — Introduction 01:01 — Willy’s predictions about Bitcoin 03:05 — Intuition and data analysis in predictive models 09:00 — Short-term vs long-term trading 13:33 — Social value of trading 19:47 — Transparency in crypto transactions 21:40 — Transaction privacy in DeFi? 27:12 — The 3 forms of the Efficient Markets Hypothesis 33:04 — Hodling as a strategy against volatility 37:15 — What to prioritise learning as a new trader 38:52 — Finding your purpose 46:46 — The vision and integrity of Radix Further resources Twitter: @woonomic Crest Fund: crest.fund…

The DeFi Download

1
Boson Protocol: The universal commerce layer for Web3 42:41

1 year ago42:41

42:41

Summary The Boson Protocol is a Web3 decentralized commerce layer that allows anyone to tokenize and exchange any physical thing as an NFT. Currently deployed on Ethereum and Polygon, they have recently signed a strategic partnership with WooCommerce, WordPress's eCommerce arm. Justin's journey into the DeFi ecosystem began with him wondering what happens when you transition from paper to digital to blockchain, what digitized physical assets look like on a blockchain, and what properties they have. He discusses his experiences revolutionizing digital transformation at Priority Pass while studying for a master's degree in digital innovation, digitizing physical products that significantly increased turnover, combining his interests in the physics of business and the blockchain, and developing the Boson Protocol. Key takeaways Platform Dilemma: Piers and Justin delve into the complexities of platforms like Amazon, and they question whether they truly benefit consumers or create walled gardens. Boson's Mission: Justin analyses how Boson removes the counterparty risk and builds an optimistic fair exchange protocol, solving two fundamental challenges – the fair exchange problem and the physical asset oracle problem. Techno-Legal Innovation: Justin describes the part of Boson's core innovation that allows the prescription of elements of variability. Configurability: Justin unveils how the Boson Protocol is designed for configurability, serving as a bridge between WooCommerce and the world of Web3. Chapters 00:00 - Introduction 01:11 - Justin's background 03:45 - The specific problems Boson Protocol addresses 07:42 - Solving the problem of discovery 12:19 - Efficiently matching buyers and sellers 15:41 - Trust-minimizing representation of physical assets on the blockchain 25:36 - Escrow, dispute resolution process, and game-theory-based incentives 27:56 - Boson's partnership with WooCommerce 34:31 - WooCommerce's Priorities 38:06 - Addressing the capital inefficiency in escrow 41:45 - More About Boson Further resources Website: bosonprotocol.io Twitter: @BosonProtocol…

The DeFi Download

1
Liquity: A new king in the decentralized stable coin arena? 47:20

2 years ago47:20

47:20

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. Summary Liquity 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 takeaways Liquity 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…

The DeFi Download

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MLABS - Building dApps on Cardano, Polkadot, Solana, and Radix 38:58

2 years ago38:58

38:58

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. Summary MLabs 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 takeaways Ben 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 standards Further resources Website: mlabs.city Twitter: @MLabs10…

The DeFi Download

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Swaap: Making Liquidity Provision Profitable in DeFi. 34:58

2 years ago34:58

34:58

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. Summary Swaap 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 takeaways Swaap 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 resources Website: swaap.finance Twitter: @SwaapFinance Discord: discord.com/invite/vMNHgz7bMU…

The DeFi Download

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PsyFi: Best-in-class financial products & tools – built for everyone 29:31

2 years ago29:31

29:31

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. Summary PsyFi 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 takeaways PsyFi 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 PsyFi Further resources Website: psyfi.io Twitter: @PsyOptions Documentation: docs.psyfi.io…

The DeFi Download

1
Raft: an LSD inspired stable coin 37:51

2 years ago37:51

37:51

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. Summary Raft 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 takeaways Raft 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 Raft Further resources Website: raft.fi Twitter: @raft_fi Discord: discord.com/invite/raft-fi Documentation: docs.raft.fi…

The DeFi Download

1
Rarimo: an interoperability protocol for the decentralized social identity 28:40

2 years ago28:40