Hey, hey. Thank you to everyone who came. We did it. Finance is emerging on the blockchain. We worked 10 years to achieve this, right?
At least 10 years of continuous effort developing smart smart contract technologies, distributed ledgers, and now finance is emerging. If you look at RWA, there are already about 31 billion on the blockchain. If we include stablecoins, we have $400 billion . This is impressive. This is such a big step forward for this industry and we have worked so hard to achieve this.
But the big problem is that all this happens on many blockchains. All this money, all this value, ends up in the protocols of dozens of blockchains. And now it's getting even more complicated it's getting even more complicated because these big banks, BlackRock, Franklin Templeton, they're all creating their own permission systems. So now this fragmentation is becoming even more complex on many different levels. But don't worry, we'll figure it out.
I think it's really important that we just be grateful that these things are happening. And I know that right now in the DeFi space...Oh, everything is fine there, right? There is a strange gap between DeFi and TradFi, but it hasn't really reached its goal yet, and we are trying to solve something. But in reality, we have all the tools and all the knowledge to figure this out .
If you look at the fragmentation of stablecoins, 95% of it is happening, um, like all these movements are happening, um, on Ethereum L2, and 30% is on the base. This is madness. But it's the same dollar. And if you look at the fragmentation of stablecoins, we're looking at hundreds of different stablecoins, and it's going to get even worse when other countries pick up on it. When other countries find their own regulatory frameworks, likely similar to the Genus Act and Mika Regulations, for issuing stablecoins and allowing local financial systems to build on them.
So, potentially we are looking at thousands of stablecoins around the world, and this fragmentation comes at a cost. This comes at a cost to developers, first and foremost. Developers choose a blockchain to deploy their smart contract. Sometimes several, but like in the go-to- market phase, you just want to choose one ecosystem, and that's already a huge bet, right? Choosing an ecosystem because liquidity in DeFi, at least, was self-serving.
We have seen this rotation of capital over the past 5 years: today it's abstract, tomorrow it's mega ETH, the next day it's stable assets, the next day it's Plasma. There are so many hyped blockchains whose liquidity is spinning, and projects deployed on the latest hyped blockchains are left with only small bags. And this is not how it should be. So developers spend time improving user experience so that it doesn't matter where the user is from or where they store their funds. They want to make it easy to use their decentralized application, regardless of where the liquidity is located.
And this again takes time away from creating the product itself. User adaptation should be simple. Then the user pays. The user pays with time, money, and dust. So, the user has to figure out what systems exist, how to combine them, how, um, how to assess the risks when using certain things.
And I mean, a lot of whales that I've talked to over the last few years, they've said, "I'm not going to leave Ethereum L1. I don't trust any bridge, not even the native one." Right? So, so much liquidity is stuck in certain isolations and it's not moving because this fragmentation is alarming. And the user pays so much time for research.
Luckily research. Luckily , there are platforms like jumper.exchange where you can essentially exchange and merge into any ecosystem, but it's still hard for users, and often they're left with dust that's like little money trails because they needed some random gas token for some random chain. And it's not great, and users are left with only one verdict: cryptocurrency isn't ready yet. And now the institutions.
Institutions are not going to place billions on 40 islands. They will choose their ecosystem and be dedicated to it. They'll most likely have their own because they want to maintain the customer relationships they've built over the last 30-40 years, right? So there is a strong economic incentive to have not only your own stablecoin, but also your own blockchain. And of course, that makes sense for many reasons.
But we need to solve the fragmentation problem from the user's perspective. If you use the Internet, you simply type in the address. You don't care what DNS system, what DNS system, what ISP, what, uh, what infrastructure or data center is inside, you don't care. You just want to get something from the internet. You are result-oriented.
And that's really all it's about . We need to understand that it's not about one blockchain winning. It won't be one blockchain just for physical reasons. And also, it's not about one blockchain winning, because there is a strong economic incentive. So, it will be multi-blockchain.
Um, and this is where we change the paradigm from the user having to choose a certain solution and own a certain token to get from point A to point B. We make it outcome-oriented. We make it intent-based , where we just say, "I want X, and this is the capital I have capital I have , and then it happens." This is important not only for users, by the way users, by the way , but also for the next wave of users who are AI agents, right? They will be getting data about user paths because we are talking about LLM, so we need a way to communicate on the chain or with the chain using natural language.
And that's exactly what we've been creating with LiFi. LiFi spent 5 years aggregating everything responsible for accessing and moving assets, exchanging them, the best bridge to find the best route, the best decentralized exchange (DEX) to get the best price. All of this has become available, and we have over 1200 applications that use us for every use case use case . There are wallets, there are liquid funds for portfolio rebalancing, there are payment solutions, neobanks. For all these types of applications, we abstracted this system, um, these complex systems that exist, and now we're essentially not only providing, not only providing access to all these different trading platforms and bridges, we're also opening up this space, opening up the supply side of trading platforms for market makers and problem-solving systems , and for other trading platforms to connect, provide their liquidity, provide their capabilities, and our system is so modular that we can not only serve DeFi like we've been doing for the last 5 years, but we can actually serve TradFi because the whole system is modular, and if you need something more compatible, if you need individual liquidity, if you have certain service level agreements, um, outcome guarantees, best price execution, uh, whatever it is, we can help you and plug these individual modules into the system and provide exactly the automated execution flow that you need for your use case, and that's what's so special.
And we don't stop there. I think access to all marketplaces marketplaces is great, but what we really need is, again, what I've been saying, right? We need to be able to communicate with the blockchain. We need to make it very, very simple, and we shouldn't have to write our own smart our own smart contract code just to move our users from point A to point B, just to use LiFi. We want something simpler, and that's why we developed composer.
Composer is an absolute innovation in this field. This is a virtual machine that runs on the blockchain. It expresses a domain- expresses a domain- oriented language in TypeScript. So you can type end-to-end user paths in TypeScript only. And it is compiled into compiled into bytecode on the blockchain and executed atomically executed atomically .
So this is really a game changer because now we no longer have to worry about blockchains, infrastructure, gas tokens, or wrapping, deploying anything. All of this is abstracted to the point where we can literally take user streams and just get atomic execution. And this is really a game changer, and it allows you to essentially, if you're a storage provider, allow users to take any assets that they have on they have on any chain, and we just exchange them, bridge them, and deposit them directly into the storage. If you're a payment solution provider, if you're a card provider, if you're Visa, if you're MasterCard, and you need pre- funding, you can allow users to take any assets they have on they have on any chain and pre-fund the card in a single transaction. This way, the user journey becomes seamless, and it’s really the next step this industry needs for wider adoption wider adoption .
And we do all this on infrastructure that truly scales truly scales . Over the past 4-5 years, we have processed over $80 billion, over 90 million transactions. Last year we grew 7x, and in May of this year alone, over 1,200 partners use us. So it's not 1200 applications that were ever registered. There would be several thousand, but many in the industry have closed in the last few years.
Last month alone, 1,200 partners made multiple transactions with LiFi. And, most likely, all of you have already used our services. Among these 1200 programs, there is MetaMask, there is Phantom, there is Rabby, there is Binance, Kraken, Coinbase, there is Circle, there is Hyperliquid, there is Pendle, there is Brave browser, Fireblocks, etc. All of these big programs, somewhere on their list, already use our services. And now I want to go back to the problem of fragmentation for a second.
If we see how many billions in value are coming onto blockchain, and on how many blockchains it's happening, it should make you realize how big the tax our industry actually pays is. This fragmentation tax is growing exponentially . So my only request here is, only request here is, instead of trying to reinvent the wheel reinvent the wheel , use the market that we've created in recent years. No matter what you supply, contact us. We already have distribution capacity.
If you are dealing with the release in any way, please contact us. We have a distribution and can make all your resources available from day one for over 1000 applications. Hmm, if you are creating an application, contact us. Don't reinvent the wheel. If we keep reinventing the wheel reinventing the wheel , you'll be busy not only with implementation and research, you 'll be busy with maintenance.
By homogenizing data By homogenizing data , giving it meaning. It's not just about implementing APIs, but also about thousands of edge cases. It's about billions of open telemetry data points that we've collected over the last 5 years to optimize routing around the world, and you don't want to reinvent that . Hmm, focus on building awesome apps, focus on your users, focus on your market share, and grow Li.Finance.
Ultimately, we all want this space to grow, so it's important to focus on what matters. And we are the ones creating applications creating applications that show the world that DeFi makes sense. It makes life better. This makes finance more accessible. And yes, let's stop paying taxes.
Find us at lido.fi. Find us at @lifeprotocol on Twitter. And thank you very much for staying here and listening to me. See you next time.
Automatic transcript — names and jargon may be misspelled.