Why DEXs Are Eating the World

Transcript

are you guys enjoying um ecc good first time how many times you guys came like second time twice three times once cool cool um yeah so my name is julian butulu i've been in space for quite some times some time and so i'm involved in curve finance which is probably the biggest auto market maker for stable coins i'm also involved in wrecked the news you guys know rekt nice nice nice i got i got a surprise for you guys um blackpool which is also like um one of the biggest nft quantitative

hedging trading firm we um the biggest one on survey axe infinity top three like pretty big and also stake down which is providing the best apy in the ecosystem so the the topic of this uh this uh pound this stage was about um auto market maker why they eating the world and uh well as mentioned curve is between 8 and 10 billion tdl making 250 million u.s dollars between 250 million usd to 1 billion usd volume per day and then we

have like other market makers that are using a different um a different um like formula like uni swap sushi swap and other stuff but before we get into that and then go into questions i think what i want to do i want to show you guys the video it's a video that will bring you into um like the vibe of this ecosystem i'm sure you guys have been inside this ecosystem for for a long time or for the new ones that are just join i just i think that direct opium video will give you an introduction of what is blockchain and this new revolution so if you can send the video now it's about like 10 12 minutes

and then we can have questions and a question about um auto market maker curve any and technical questions you guys want or more uh business and diplomas like like governance worldwide governance and oysters can we send the video opium diaries dystopian dreams in which our anonymous author takes a trip through time looks the zeitgeist in the eye and sees the narrative of the new financial world being carved out in zeros and ones the fire grows hotter

visionaries who kindle the early flames are not surprised to see the turning heads of the once doubtful elite the stubborn few still remain with their backs to the blaze seemingly prepared to stay that way until they are engulfed by the advancing inferno yet again voices cry out that we are at boiling point that now is the time to rise from the ashes and let loose the financial revolution but is this level of optimism deserved burnt by the growing heat of the technological furnace the closest skeptics melt away sneers turn to self-seeking strategy

and cynics cry for redemption or amnesia as they shun their past beliefs and join the line to fuel the fire bullish news updates span the flames of this new financial era but can the light shine through the peaks and troughs of this dark and volatile market the inevitability the race for digital currency has reached a governmental level behind the scenes the united states europe and china are scrambling to understand and regulate this technology whilst fighting to not get swept away by the flow of innovation to maintain a competitive edge existing financial systems

have to accept some loss of control and swim with the current rather than fight to close the floodgates as the world realizes the redundancy of the greedy middleman empowerment will flow across all industries as unprecedented forms of monetization emerge a new generation children born into the uncertain era of the coronavirus will reach adolescence in a strange new world one of invasive and total monetization the whole media industry will be overtaken and empowered by social tokens bringing a breath of fresh air to the creative industries

which depend so much on the online followings to succeed in the modern technology the greatest challenges are psychological as the undisciplined mind is easily lost to social media endlessly scrolling into the unknown global politics will become increasingly polarized yet the invincibility of uncensorable code will appeal to libertarians and bohemians alike with shrewd investments from industry leaders innovative development continues the cycle of change becomes tighter and technological advancements accelerate

a new economy will arise self-started careers will flourish and increased remote working combined with globalized currencies will begin to level the playing field as a technological meritocracy becomes the economic standard the altruistic applications of web 3.0 will change the public perception of charity and matured daos will become household names just as non-governmental organizations are today however not all dao activity will win the approval of the public governance protocol wars will scale drastically

and as the battle for power between banks big tech and governments becomes more aggressive we will see complex game theory being utilized as a weapon to manipulate not just protocols but entire democracies the tension between the us china and the eu will escalate and decentralized currencies increase in stability as countries lose control of their printing machines china will be quick to tokenize iran and issue it on chain forcing the us to adapt or get left behind governments will have to

incentivize their citizens to use their native currency over the decentralized alternative some will enforce this by law while others will take a more liberal approach but an alternative global economy will develop regardless during this radical transition some citizens will suffer while their neighbors prosper as different leaders take their own approach to regulation and apply different limitations upon their people those who allow for total financial freedom still face dangers as the unexpecting public become exposed to the experienced attackers

and slick arbitrages of the decentralized underworld nations will not only be forced to create and adapt to an on-chain economy in their own country but also learn to defend themselves against interference from attacking states which try to disrupt and influence their politics by any means necessary certain governments will restrict or eliminate tools of our industry which are most exposed to regulation such as stable coins or centralized exchanges users of coinbase or tether are at the mercy of the corporations which own them and ultimately the governments which regulate said corporations

fanning the flames we'll look back on defy summer with nostalgia a naive but entertaining time where we forged gamified concepts that later became utilitarian applications bitcoin faded away during the birth of d5 but it never lost its status its return to the limelight was inevitable and the global turmoil of 2020 only strengthened the appeal of btc as an investment with the benefit of hindsight we'll see that d5 summer brought increased liquidity and volatility to the markets capturing the attention

of some larger players who use their influence to turn the eye of the market onto the large cap currencies where they feel most comfortable optimism around bitcoin and ethereum continues to rise triggered in 2020 by bullish news from established financial institutions such as jpm square and microstrategy those who are bold enough to look the zeitgeist in the eye and place their bets accordingly will reap huge rewards over the coming years as the narrative of the new financial world

is carved out in zeros and ones a tokenized world unfortunately tribalism never fades away entirely conflict-loving maximalists will always try to smear the work of others but as cross-chain interoperability and tokenization becomes commonplace the arguments will become less passionate the quality of bitcoin on the ethereum network started to increase rapidly in 2020.

by the third quarter it had increased by over 13 000 percent from 1100 wrapped bitcoins in january to 150 thousand in late october we now look back on 2020 as a tipping point for tokenization not just a bitcoin but of real world assets as ftx offered trading of tokenized tesla shares on chain for the first time the ability to tokenize physical assets results in financial ruin for the less disciplined gambler as they are able to use their real-world assets

as on-chain collateral court cases will be opened in the hundreds or thousands as the prices of private companies stocks are copied onto the blockchain allowing speculators to trade the volatility in a mirrored financial market that pays nothing to the middleman bitcoin treasuries in publicly traded companies will continue to grow with square's purchase of approximately 4709 bitcoins at an aggregate purchase price of 50 million dollars being one of the most eye-catching announcements of this kind

in 2020 with an economic environment prime for inflation jack dorsey saw a growing role for bitcoin and he was not alone in doing so when publicly traded companies purchase bitcoin it is a treasury management decision not speculation post 2020 having some percentage of the company treasury and bitcoin becomes a common promotional narrative encouraging other businesses to invest for the publicity as well as the potential profit dollars and cents learning in public will become a widely recognized form of

career progression and numerically minded auto deducts will thrive as the multi-million dollar hacks and exploits that are so common in cryptocurrency start to reach the mainstream news ambitious students willing to bend the rules will start to choose computer science and software development over accounting or business studies however white hat hackers will also be in high demand and as hacking or exploiting grows harder over time and new standards emerge the safety of the entire industry will improve multiple billion dollar companies will be founded

by small teams of young developers working from only a laptop and thus the balance of power will shift the non-stop globalized nature of this new open financial industry will encourage companies to geographically diversify their workforces and skills or experience will be valued over qualifications kovid 19 has had a lasting impact on the global economy and some industries will never recover some jobs will be lost to the new technology as wherever profitable the inefficient human

employee is replaced by a sophisticated smart contract or well-trained ai a human employee is costly and unpredictable but code operates as instructed the d5 market cap may fall it may even drop by 80 or more but the best projects will inevitably come back stronger eventually banks will race to use defy if not for the yield and merely for the savings on their daily transactions when the first western high street bank begins to offer defy level interest rates to their customers

the floodgates will open and all banks will implement the technology shaking up councils and governments across the world decentralization will be measured on a spectrum with full d5 providing little to no safety net in the form of customer service or refunds and their centralized counterparts providing a more familiar safer space but with less flexibility and control over the user's funds jumping the hurdles progress will not be linear there will be hurdles restrictions scams and market crashes however the assured vision is key this

industry and the desire for financial freedom is not going away the only uncertainty is how not if we will arrive at our goal of mass adoption a world based on maths code and binary liquidation is not for everyone and watered-down aspects of d5 will be provided for those who are uncomfortable with smart contracts by etherscan centralized entities will remain for those who are uncomfortable with the risks and responsibility of owning your own private keys and the spectrum of defy

will expand to cover the entire financial system the flame that burns twice as bright burns half as long we must focus on the trend and not the volatility our goal is not to light up the room but to illuminate a path to a new financial system that the entire world can follow let's not build more experience for the experts but instead create tools that welcome newcomers that invite them in and provide a better future that empowers us all nice nice

because um give like some uh shiver down your spin right like uh that's good because the market is down today like got pretty pretty savagely smashed but when you watch this you understand that the future is really bright um yeah so i think that was just i thought like instead of giving a slide and deck about auto market maker and how this is actually transforming the world this video gave you a good introduction to the space and how finance is getting disrupted by defy and how like small projects such as curve or rv landing market trading are

basically completely taking control or replacing traditional finance but um i think we can go because i don't have much time so i think we can go like some for some questions like if you guys have questions from the audience tell the the story yeah yeah so um so on an auto market like like for example like like curve the story is in this space what would be more important than money is actually lobby and lobby comes with governance so basically the idea was

knowing that for example in auto market maker in traditional finance for example the fx is doing six trillion us dollars volume a day so if you think about it and you're like kirk for example is doing between 250 million up to one million volume a day if we take like one percent or ten percent of the entire volume on the traditional finance market like fx we're talking about billions are we talking like it could potentially do like 100 billion volume a day and it seems like what you realize is those different protocols what would be more important is not actually

putting money and being a liquidity provider is actually being a governance being a lobby so you can actually control what kind of assets you can add on the top of of curve for example and you can also like incentivize those different stable coins and rate showed that stable coins are becoming the most important bit like the most important part one of the most important part in d5 because it's a war on nation state when you control the money you control the the power and you can actually distribute your own money across the globe

and as soon as people start using your money you basically have the the lobby you have the power to do whatever you want like price uh a burial of oil or send some communities across the globe and everyone start pricing your assets in a in a national currency so what i'm trying to say is on curve we have like now a wall that is going we have asia europe and us that all fighting like we're talking about millions of us dollars to get their stablecoin on the platform because when they get on the platform we incentivize them it means that they actually print cash it's like it's a

it's a cash machine and for example like usdc usdt all those different assets now they have a good portions of control globally on a defy space and now we have other assets like euro or en or whatever that are coming on board and so stake down was a project that the goal the initial goal was to control a little bit of the voting power so we got waitlisted in curve and now what we do is like using this percentage of power we can boost our strategy and if you go online and you check that's the reason we don't provide many different strategies but we provide

four of them euro us donors btc and ease and they are the best api on the market and we do that because we use our boost and we don't build too many strategies and um answer your questions yeah so then you have like in this war you have like three different projects that are trying to compete i mean at the end of the day we're all friends because it's not who who win at the end of the day curve wins so the auto market make her win so we are like why earn convex and stake down they all they're fighting each other to get the most voting power but then this will move into new projects or i mean existing projects like ave basically like trying to compete for the voting power because when you have power you have you have control on the money

and the market and um i just mentioned like direct video was built in six months by a very small team of three people and i think this is pretty impressive yeah all the stuff that you see on the video each 10 seconds it's actually a piece of art it was designed put together the music the voice you got some caviars inside if you if you search really deep cool another questions [Music] yes hello hey julian um i wanted to ask your thoughts about how do you think we can bring a mms and taxes basically mainstream of course you just said that because

euro and cny maybe in usd might also want to onboard into curve and amms but i'd also like to know if you you've thought of alternatives as in fired on-ramps or banks offering services through the 3d5 to customers it's difficult to hear you i'm not sure the voice yeah is this better yeah yeah good yes so i just wanted to know your thoughts on how amms and x's can grow and reach mainstream uh adoption apart from the euro cny usd whatever joining actually curve and amms thank you the question is about like

making new payments on top of curve yes about how how do you bring more users and more tv out yeah i think like as you see in like the the entire world is now fighting to get control of of blockchain i mean if you take a look to the en the paper a couple days ago they said that bitcoin blockchain cryptocurrencies they were like fraud scams there's not like this is this is this is not good ethereum is not good but they're building their own coin at the end of the day and they actually might use ethereum that's that's why it's actually funny but the things like i see like central banks all those big institutions since now they understand that it's a

technology that cannot be controlled is accessible by all and built by everyone at the end of the day if they don't actually start using the or building their own technology then we'll be taking over their business and what they're trying to do right now is trying to build for example like fab uh facebook with libra or like all the other um central bank and nation states this that's actually what they're doing and i'm sure that in china now like apparently by next year a huge portion of population they're saying that would be actually using the digital yan and this will it's actually kind of like dangerous in the sense because they have like i like national identification system mechanism that they can track

everyone but every company like people people now you can actually cash out you can buy crypto but also sell cryptos to the platform so all those biggest companies are actually coming on board and they are providing their own technology which is a little bit censored but for us is a good opportunity to just make it like like broader and more and spread the word about it the technology you know and i mean stablecoin is like it's how you can build any technology right now if you stablecoin in your business then you can just sell it across the globe another questions hey julia i hey julian thanks

um do you think stable coins are a special case of do you think the winning platform that wins stable coins is also going to win the rest of synthetic assets or do you think you know 10 years from now the uh synthetic equities or something else can be traded on a different platform than stable coins good questions i mean centitex is the it's the biggest market in the world you know like uh we're talking about trillions um coin like like like on curve it's not like necessarily just currencies it can be any assets it just depends how you price them so for example on curve you have ease and btc so there's just like normal asset that volatility i said but because

inside the pool you have different way different oracles or different way of building those assets if you put them into your same pool then they are stable between each other so that's what that's what actually make we can see real estate bonds national debts all those different things coming but the centitex market derivatives market is like it's way bigger than the the fx market and this will think about having on those auto market maker the ability to add in less than 10 second any asset in the world and then we won't be talking about 250 million or one billion us dollars volume a day we'll be talking about trillions volume a day

and this will be completely accessible to anyone in the world but i'm sure like governments banks hedge fund like they will actually fight to not for this to not happen because right now if you think about it you can make a trade of 100 million us dollars for example on curve it will take less than 10 minutes we'll have the almost no sleep edge and zero cost like zero point like like zero point five percent fees if you will to do that in traditional market like my background used to be like quant i used to like like high frequency trading and all these things if you do

that in traditional market it will take months because you need to do like um see collateral party sign sign a deal between banks between lawyers it will take three months well here what we can do is like you know like we saw like the the emerging of like revolut transferwise all those different platforms that were offering swap but charging a high fees and you need to kycml and all the stuff here you can just like do a massive swap from u.s dollars to euro or euro from en soon without asking any one question and without paying any fees almost and the fees that you're paying actually be distributed to the people that are providing liquidity which is like yeah but the the the

derivatives scientix markets it's um i think when we get into that we won't realize but it will be a completely different defined space hello yeah hey julian um thank you so much and i definitely agree with a lot what you're saying um one i you kind of answered the question i'm gonna ask now but i mean other smart contract risks and sort of governments and and sort of trying to stop this what other risks do you see um sort of for everything that you're saying right what other things do you think that will sort of stop or impede the growth um because i definitely think one of the biggest ones

is sort of government's not allowing it but yeah well it's um aml kyc what people are trying to um institutions governments are basically now saying let's see if you saw like the news on the a couple months ago the sec said the the biggest risk of the us is not actually war or countries in the world that are um either attacking or they they're going after the business capitalism and old stuff it's actually crypto it's actually stable coin because it completely changed the monetary system worldwide it's not like central banks um like printing money and then selling to commercial banks and then they actually distribute in terms of debts

but what's happening is now what they're doing is they said like anyone that was in their fats fats documents they said that what they want is anyone building smart contracts or anyone just doing providing liquidity on an auto market maker or landing platform such as rv they need to be regulated which is like kind of like impossible like saying that it's just like they don't understand the technology because you cannot stop or regulate i mean we need regulation but that's what they're trying to do because now they're scared they're just trying to completely stop it and use the technology for themselves and then make money without giving the the back to the people on the ground but yeah they're just like completely

trying to stop i think the biggest risk for us is is right now it's it's like lobby lobbying yeah it's not necessarily government school the government is just listening to lobbying but lobbying right now they're just trying to take control of it yeah and then stop you from using the technology or this for example i got um three days ago i got three three of my bank accounts got shut down like because apparently i was sending money or receiving money from from some exchanges so they're attacking they're just coming but the thing like if you look at the story of bitcoin um i mean ten years later people were saying like there was a scam a fraud like massive banks gp morgan said it was biggest fraud in history it's a bubble and all this stuff was still alive they couldn't stop it

and now they're trying to start using it so why they're saying it it's kind of dangerous i mean but as long as you build and provide utility for people actually you shouldn't be afraid of the regulation trying to stop you because this will happen anyway anyway good no more questions that's it thank you guys you