How on-chain Forex can help onboarding more users

Transcript

hi everyone sorry for the delay for this morning a series of insane coincidence made me late so today i want to explain you how does on-chain forex market can help us to onboard more user within defile my name is pascal talaridar you can follow me on twitter just remove all the voil so p clt and i'm sharing many informations about what we do regarding our on-chain forex market use cases a few sheet posting but yeah it's mainly related to a forex on the blockchain

okay so before to start i just want to explain you a bit uh the vision that we have how do we envision defy so in our case we see defy as a very good back end for financial services so you may all know revolut everything has a back end with revolut you can pay you can send money you can maybe some some someday make some lending they are using a lot of servers a lot of employees i mean they have a very expensive backend such as also binance and so on so on the cool thing for me with d5 is that it is a backend that you don't need a developer to maintain it's entirely running on the blockchain and it's a plug-and-play back-end so you can

for example have ave if you want to do lending you can have uni swap if you want trading you have requests if you want to pay with invoicing on chainsaw and so on and what i like is that you can combine all those protocols at their smart contract level and to build an ap an application on the top of it and you can provide your user with services and again you do not need a huge team to maintain everything all this in the blockchain the only thing that is missing for us on this backend is an on-chain forex and i will explain you today how for us the missing piece for user adoption uh and and to ease onboarding and to have

many use cases real use cases which are powered by blockchain lays in as launch of a non-chain forex market so first i will explain you the virtual circle of an enchant forex market so basically what use cases it can enable then i will quickly go over a few models that exist so uni swap curve and so on they actually somehow are doing on-chain forex market and of course i will explain you how do we work and what are the use cases that we have powered so first maybe you are not super familiar with forex so it's a market it's actually the biggest market in the world it's

decentralized there is no centralized authority and it has many use cases but there is one use case that i want you to understand so you can understand the point of an enchant fox market it's access to liquidity so let's say you are in europe and you want to invest in apple stock or in a toyota stock i don't know if you know but you cannot buy those stocks with euros you have to buy them with dollar or japanese yen so here you will need the forex not to buy the assets but to access to the liquidity of the currency so for example if you want to buy apple stock you first need to swap your euros for dollar and then with the dollar you can buy apple stock or anything of course which is denominated

in dollar and this is the thing forex is a ramp to liquidity so for crypto the thing with crypto is that as you may know everything is around the dollar liquidity integration and so on and so on if he wants to buy bitcoin if he wants to buy any token you will always have a better price if you use dollar rather than another currency you can try you can go on kraken and you can try to buy one bitcoin and you will see that if you pay with euro or swiss franc or whatever and then you do the conversion you will see that actually you end up paying more if you buy with euro rather than if you buy with dollar and i'll let you imagine for other currency like brazilian real for example or mexican peso it's even worse

so the idea of an on-chain forex market is basically to access this on-chain liquidity of the us dollar so the idea is that you have uh so so you can create non-usd stable coins like euro swiss franc british pound and so on but instead of spending time money and resources to build the liquidity to allow people to swap those stable coins for another asset the idea here is that you have to actually swap them for a usd stable coin which is way more liquid and then use a usd stablecoin to exchange them for another asset it is a more efficient

approach rather than yeah okay it is a more efficient approach rather than if you are building yourself the liquidity uh so for example for user onboarding this could be a use case for on-chain forex so you can go from brazilian real to a stable coin which is brz which is a fiat backed stable coin backed by brazilian real and if he wants to buy bitcoin with his brazilian rail you don't have to exchange directly the real for bitcoin you first have to exchange it for usdc and then use the usdc to change it for bitcoin and it's same thing for remittance when you want to send money from one country

to another one if you want to send money from brazil to europe you first use an on-ramp in brazil to exchange your fiat for the stable coin then you swap the two stable coins between each other so brazilian real one for euro and then you off-ramp in euro uh so do i have time to uh no okay i finished sorry ah first thing okay so uh so there are a few more there so i will just quickly explain you what within 30 seconds so jarvis we do many different stable coins they are synthetic which means that they are collateralized with another cryptocurrency as a matter of fact we use usdc but the cool thing is that you

can always exchange one of our stablecoin for example euro so j euro for usdc or busd at the chaining price feed and without price impact so let's say you have one thousand dollar of euro or juro you can receive 1000 usdc back and forth and basically the idea is that we can build very cool use case to unboard more users so we work with montperin which is a swiss fintech entity which allows to go from your bank to the blockchain without any fee so let's say you have ten thousand euros or swiss franc you can you you can use them to acquire ten thousand j euros and because as i said you can convert the j euros for usdc at the training price field and without price impact you can

basically swap the ten thousand juro for 10 000 euros worth of usdc and then you just acquire the bitcoin you can of course build an application on the top of it in order to hide all this complexity so basically you could leverage defy to buy bitcoin or any token which is listed on an mmm using any fiat we are already doing it we have processed so far 25 million of transactions since last year where people seamlessly send fiat and receive crypto uh and maybe last year's cases uh it's uh uh maybe not this yeah so remittance

yeah remittance so we also power uh transfer of funds between two countries so for example this year we have helped people to move funds between europe and brazil between europe and nigeria canada and so on and the way it works it's uh so first someone in brazil has real they exchange it for a stable coin fiat backed by a real then we have a pool with this stable coin and with our stable coin on curve or ellipses as a matter of fact here so people can swap the brazilian real stablecoin for hours and then they can use our own engine forex to swap the real for juro and then j04 euro and this is how we moved funds across countries

and that's all