Open Finance on Ethereum with Dharma, 0x, Maker, Compound, and Coinbase - ETHSanFrancisco

so everyone we are starting the I'm gonna be a project and be a little loud for the people in the back we are starting the building an open financial system panel but we are actually going to start by having presentations from the individuals that making up the panel and we are going to start with Sid from coinbase wallet [Applause] all right morning everyone thank you so much for showing up first thing in the morning very excited to do this excited to see all the hackers here I'm Sid Coelho I'm the product leader coinbase wallet and today we're going to be talking about building an open financial system we're pretty lucky to have a thing with me some of the pioneers of decentralized finance and so we go through each of these projects one by one and then settle in for some Q&A so let's start with going based wallet second so coinbase wallet is a user controlled mobile crypto wallet and it supports not just etherium but also digital assets built on top of etherium so ERC 20 tokens as well as ERC 721 collectibles it's also a dap browser where we try and a we try and curate the best the apps out there in the ecosystem but we use web 3GS so we're interoperable with any DAP so if you've built a DAP and it's mobile responsive it should work on corn-based wallet we we call Conway's wallet the consumer gateway to the decentralized web we were a mobile app once again available in the App Store if you haven't tried it you can go to the App Store the Play Store and check it out now the reason we built coinbase wallet at coinbase is that we feel it's going to help kick off the the second phase of crypto adoption so the first phase of crypto adoption as we see it is the investment phase and this was really about helping people go from Fiat into crypto and make it really easy for them to do that so our first few businesses were the consumer broker you probably used can be acecomm and then the exchange and then followed by a few other institutional focused businesses but we believe the second phase is what we're most excited about and that's the adoption phase and the the utility phase so that's where people are actually using crypto for things and in order to use crypto you need to have your own wallet another big reason that we built go and base wallet is that we believe that a wallet and crypto should be available to everyone and an open financial system by definition is available to anyone anywhere in the world and so that's why unlike regulated exchanges or regulated products with coinbase wallet anywhere in the world or if you lose go to the App Store download the product and you now have a wallet that you can access all of the crypto space and finally gaps right that's why we're all here today we've seen an explosion of building and apps read eighteen months ago there were almost no dabs now there's almost 2000 and we wanted to create a platform that lets you access these you know if you look at the dab space there's a bunch of different kinds of financial services Texas there's marketplaces there's social media there's jobs and underlying that there's a whole set of infrastructure which is different kinds of token standards protocol sidechains identity standards stable coins and what's what what's really missing is a really easy-to-use product then let's is a user who's new to crypto navigate all of this ecosystem if you if you go back ten years right we used to have phones and use them to make phone calls and then the iPhone came along and emerged as the portal to explore the new world of Internet connected mobile financial applications and really it changed what the word phone even meant and that's what we're trying to do with the wallet we're saying a wallet is no we're no longer just someplace that you store your crypto it's actually a portal into this whole decentralized web and the Gateway to access all of these applications we've also worked hard to make wallet as developer friendly as possible so if you're building an app at the hackathon we support the SMS we support custom tokens we use secure Enclave technology to safeguard your users private he's and so you know we've tried to make it really easy to build on we're also offering a prize so we have the coin base wallet prize a teeth SF for the best mobile friendly DAP it's a thousand dollar prize you it doesn't have to be a mobile only depth but as long as it also works on coinbase wallet and you have a mobile responsive front-end it should work and you should be eligible if you have any questions or you need help with laying just go to wallet coinbase comm we have a really user friendly guide written by Pete kam called building mobile apps we you can also reach us on wallet devs at corn-based comm or we have a discord so you can reach us there as well thanks very much and happy billing Thank You coinbase wallet up next is will from 0x protocol hello hope everyone's having a good morning so I didn't prepare a presentation for this event so I'm gonna use an older presentation and we'll try and get the the main ideas out there so 0x is an open protocol for a low-friction peer to peer exchange and why does this need to exist we believe that the world's value is becoming tokenized so all forms of value that exist in the world we will we believe will eventually be represented as digital tokens on public blockchains like aetherium so this ranges from traditional assets like fiat currencies stocks bonds prediction markets video game items software licenses really anything you can think of you know it makes sense that these assets are moved on to globally accessible open rails public block chains so if all of these assets are going to be tokenized you need a way to exchange them without diving too deep into how protocol actually works what does it mean that 0x is a protocol so zero X is not a decentralized exchange it is a protocol that allows people to build decentralized exchanges on top of it and it uses a method called off chain order relay so why build an open standard for decentralized exchange what's the benefit to doing this and the reason is because you know as we were already seeing today there's many many different decentralized exchanges that are being built on the etherium block chain we don't really need to have like 20 different smart contracts all doing the same thing it means that the users have to trust many different smart contracts with their valuable digital assets it means that there's duplication of effort and 20 times more opportunities for bugs and ways to attack these smart contracts secondly if you have an open standard for exchange it allows us to create a set of developer tools that are robust and provide a very good developer experience and if many real ayres so these entities that kind of shuffle orders back and forth between different counterparties if they're all built on top of the same exact open technical standard it allows them to share liquidity between them it allows the different decentralized applications to pull liquidity from these real ayres and it leads to a more liquid and deep market so this is pretty old slide but you know since we launched 0 X version one in October of 2000 August of 2017 there's been a variety of really cool decentralized exchanges that have been built on top of 0x and there's there continues to be a lot of really great development on top of Xerox today but what's really exciting is that we just recently shipped 0x protocol version 2 and 0x protocol version 2 opens up a ton of new possibilities for developers that are creating marketplaces or gaps on top of this area and the reason you know one of there's many many features that are worth exploring but because I have limited a time I'll just talk about one that's particularly exciting we 0x version 2.0 has a brand new smart contract architecture that supports ERC 20 tokens ERC 720 token 21 tokens and can also be extended to support any other token standard that might emerge in the future so we're very excited about the emergence of games virtual virtual video game items on the ethereum blockchain things like gods on chain loom network is doing some really great stuff crypto kiddies was a great first example of video game items on the on the blockchain so using 0x you can now trade these things with anyone in the world for close to nothing we have a booth in the back we also have a lot of materials on our blog and on our website that make it very easy for you to get started using 0x it probably takes no more than an hour to get a functioning relayer operating on the main net our at least to do some very rudimentary trades and we're going to be here all weekend to help you if you have any questions and we're also just happy to chat with you about anything you're interested in so thanks for having us and yeah thanks [Applause] Thank You 0x up next Andy from maker hello my name is Andy and I represent the maker Dow project and we seek to create a cryptocurrency called die die is a stable coin which means that it is a cryptocurrency with low volatility relative to the most the world's most popular fiat currencies and this makes it more useful as a form of digital money because as you know Bitcoin and ether and other fixed supply cryptocurrencies are famous for their insane sometimes almost reckless volatility and are not suitable for use in the normal world of business which has hindered mainstream adoption of these open crypto networks so dye and other stable coins seek to usher in the next wave of adoption and make crypto networks more suitable for use in business so how does dye work dye is issued dye can be issued by anybody in the world when they take one of their crypto assets such as ether and lock it up in the maker dow dye credit system smart contracts they lock it up as escrow or collateral and then issue die against it by borrowing it later when they want to retrieve their collateral they simply return the dye that they borrowed plus a fee based on how long it was outstanding this should this system of credit borrowing lending and returning plus a fee should sound very familiar to anybody who's ever used the traditional the world of traditional finance right so what we're doing is we're taking a very intuitive sort of recognizable idea and transplanting it onto the etherion blockchain so how does it work this system of collateral this system of credit right how do we know what assets can be used as collateral in the system this is decided by the owners of a second token called MK r MK r is the administrative or governance token of the network and its holders make decisions about what types of assets can be used as collateral in the system in exchange for their services and the work that they do managing the portfolio of collateral assets they receive the fee that died borrowers pay when they pay back that what they borrowed to retrieve their collateral and in this way the incentives are aligned where the maker holders basically work together to provide a service for the dye holders and back make sure that all dye is backed by high-quality valuable assets so on the flip side if they do a bad job then the value of MK r is tapped to back any any positions of borrowing that were backed by assets that were unfortunately valueless right if an asset suddenly goes to zero overnight then the value of MK r is used to to back down so there's sort of two sides of the equation on the one side if the MK r holders do a good job then the value of MK r should be expected to become more precious and then on the flip side if the MK r holders do a bad job and the value of m KR should be expected to depreciate so it's a very sort of simple system it's very it's one of the oldest etherion projects in the entire space we actually created the project before aetherium even launched we've been working for a long time and last year in December of 2017 we launched the first version of dye it's live today there are about 53 million died in circulation today and all of them are issued against eath this is because the first version of dye can only take eath as collateral but in the last over the last year we've been diligently hard at work on the next version of dye which we'll be able to take any type of ethereum asset as collateral which is a very exciting sort of next step in the overall stability of died right because you have many different types of assets backing die then that means if any single one of them experiences a sudden decrease in value then the other ones the value of the other ones can be used to protect the entire system right so we're sort of consolidating a lot of this risk so that's a very basic overview of the system like I said we just recently released the code for our next multi collateral version of the system which is very exciting we're hoping to launch very soon probably towards the beginning of next year if you have any questions about this because this is like a super high level overview i skiped basically every detail that there is in the system but if you want to come and poke holes in it and kind of figure out how it works then come find me afterwards or anybody at the Maker table down there and furthermore if you want if you have any use case for money in your gaps or your hacks here at each San Francisco then there is a prize that will be awarded to the best applications that use died in their system and also there will be another prize that is awarded to the best data visualization of borrowers in our system so that's all for me like I said super high-level overview but please come and try to poke holes in our system because it's always fun to do a little sparring back and forth when people try to kind of get to the bottom of this thank you very much thank you maker up next Robert from compound finance [Applause] all right you guys are a great crowd you're probably building some amazing smart contracts and some amazing dabs what compound offers is a series of superpowers for what you're building and before I go into those superpowers I'll quickly tell you about what compound is compound is a series of token money markets accessible to smart contracts on the etherion blockchain for every er c20 token that we support we offer an interest rate and we also offer the ability to borrow those tokens now why does anybody want to earn interest on a token and why does anyone want to borrow a token it's very simple most of the smart contracts out there have a balance of tokens most users have a balance of tokens in their wallets and most of those assets it completely unused with compound you can sweep assets into our money markets and earn a prevailing interest rate your smart contracts now have a business model that they didn't have before if you're building something today that's gonna have a balance of tokens you can upgrade your contracts and actually earn incremental returns the second thing we offer is the ability to borrow any tokens why is this important your smart contracts can borrow augur and participate in a prediction market without owning any augur your smart contracts can borrow 0 X tokens to trade with and pay fees with without owning any 0 X tokens your smart contracts can use any protocol without having to predict and buy those tokens ahead of time on demand the smart contract can borrow assets as they're needed in addition you get to borrow assets for financial reasons your smart contracts are the users of your smart contracts and gaps can actually borrow tokens to speculate with or to short sell it's incredibly flexible so as you sit down think about ways in which you could potentially monetize tokens or you could potentially borrow tokens that's what compound offers the smart contracts are deployed to rank B and as of a week ago to the etherium main net and everything is live if you build something with compounds we're not specifically offering a balanced e but we will take you out to dinner and celebrate you thank you so much and keep on hacking [Applause] thank you compound and up next the dove from Dharma hello everybody how's everybody doing so I'm gonna tell you guys a little bit about what we've been working on at Dharma so Dharma is a protocol that enables borrowing and lending on the etherium blockchain basically the way I like to think of Dharma is as this kind of global decentralized credit market and the kind of protocol that actually enables this credit market to exist is what we're basically developing so how does it actually work so there's kind of a few components of this whole system right so the first is what we refer to as Dharma protocol right this is just like a technical specification that defines this like message format for how you request loans and fill loans as a borrower or lender a layer above that you have a whole kind of suite of smart contracts and developer tools that actually enable these orders to be generated and filled and then kind of share it amongst different liquidity pools and then finally a layer above that you have what we refer to as real Ayres right and so you know we'll just came up recently and explained how the 0x protocol works this is a really similar concept in Dharma essentially relays are centralized order books that host these loan offers and loan orders and earn some sort of fee every time one of those loans are filled so in the end you kind of get this full stack decentralized peer-to-peer lending marketplace that is accessible from anywhere in the world is entirely permissionless so if you want to build some sort of application that plugs into this network you don't have to go shake hands with us or sign a contract with us or you know be a New York Stock Exchange member or something like that you just build it right away and then finally it's uncensor bull right so literally if you're in a despotic country or you you know for whatever reason are locked out of the traditional financial system you are able to access credit through this system so we've been live on the etherium maintenance since around May of 2018 there are three live businesses that are built on top of Dharma right now that are servicing peer-to-peer loans every single day we as far as we know are one of the first sort of implementations of a system that enables people to actually borrow and lend on the etherium blockchain in a global context so this is a really high-level glossy overview of how the protocol works but so I'm more than happy to dive into some more specifics afterwards if you're interested in learning more about what Dharma is how it works what people are using it for today and what we think they'll be using it for in the future come find us afterwards we have a table in the back over there we'd love to meet you also we are sponsoring up to $2,500 in API prizes so if you build an application that plugs into the Dharma Credit Network in any capacity be that you know literally building a peer-to-peer lending application or some sort of wallet that automatically pulls credit liquidity from the market we will be interested in awarding you with up to twenty five hundred dollars in prizes so thank you guys very much excited to speak with the rest of the folks on the panel in a second you can just you're gonna stick around and we'll have everybody else come up it's time for panel building an open financial system all right thanks guys those are amazing intros I'm just gonna do a quick recap you know I just took some notes on what each of these projects is for people that are new right will Warren found of 0x in exchange for a protocol for decentralized exchange and you know you read in the news every week about an exchange being hacked somewhere in the world the 0x protocol reinvents that architecture all together and it's just entirely creates an entirely more secure form of exchange then Andy CTF maked ow right maker uses a collateral pledging system to ensure that every die coin is always worth close to one US dollar so effectively creating a digital dollar with but with all the benefits of crypto trust lessness and borderless Ness and then Robert founder of compound makes it really easy for you to either lend or borrow on the blockchain and instead of having to go out and look for counterparties the smart contracts handled that for you so they're balanced supply and demand and all you do is if you're writing a DAP you just look up the smart contract deposit money or borrow money so that's great and then finally Nadav a protocol for tokenize debt with Dharma right anyone any way can just ish start to issue debt or accept that orders so you know really exciting and I think what's most exciting is how all of these products tied together right if you really want to illustrate what an open financial system is right anyone can install a wallet likes a coin base wallet fill it up with eats then they can go to zero extra layer convert that eats into die trust ously then I you know you can send that die to say my family in India and they can receive it and I and treat it just like as if it was a US dollar or I could take some of the die and go to comp to go to Dharma and either invest my money or issue debt or you know all or lend money to other people and so really all of this happens without we didn't do any business development agreements between each other we didn't have get any licenses we didn't have to build api's for you know for interoperability we just built products on shared common standards and things just work and that is that is what it means to have an open financial system so with that I just want to kick off with with a couple of questions right I'm going to start off with some stats right these are the sizes of the markets that you guys are targeting they're currently 580 billion dollars of US bills in circulation outside the US the global bond market is over 100 trillion dollars the global money markets three point three trillion dollars and global exchange revenues were 31 billion dollars last year and so these are just staggering numbers right like these are just mind-boggling numbers the size of these markets and that's what these entrepreneurs are trying to tackle so I guess the question is from where we are today and I'd love to hear from each one of you how do we get for each of your products to the first million users sure so the first million users is going to be the hardest million users after that it gets a lot easier with compound what's interesting is that anybody can build on top of our system and I think the first million users that compound are not going to come from a million different users interacting directly with our protocol it's gonna come from a million users using mobile applications or using any type of financial service that in the backend sweeps assets the compound or borrows from compound users won't even know that they're using compound indirectly yeah no I agree I think it's the on-ramps that are gonna be doing the hard work so you know things like coinbase wallet things like I am token these are the the ways that we're going to be getting taps into the hands of event users I think another you know kind of Trojan horse for getting crypto in the hands of end-users is again like video game items people love to play video games they love buying cosmetics skins and stuff like that and if there's a way for them to kind of buy and sell them trade them I think that something that people will get really excited about so I could see video games potentially being like one of the first use cases that gets kind of like mass adoption but we'll see one of my favorite things about protocol development whether it's from earlier stages of internet history or today is the fact that everybody's collectively working on shared resources that we all benefit from and could never individually invest the time or resources to create and so similarly I think that the rise of these crypto networks sort of democratizes the expression of transnational business so I think that like it democratizes ability to act internationally which has typically been only accessible to like the largest big business enterprises right and I think that like one of the biggest potentials for disruption is actually going to be in existing like small and medium enterprises have suddenly having access to like global liquidity and then global financial systems that they were simply like locked out of or were too small to access before so I think that getting the first million users is not going to necessarily be it's not gonna necessarily be taking crypto and putting it directly into the hands of people who might have otherwise never thought about it instead I think it's going to be going to existing businesses and saying look now you can act internationally and you can stretch your reach a lot farther than you could before and you can do that in a way where you don't have to invest a ton of resources and it's just like you get that right now because of all the work that we've been putting in for years kind of on your behalf so I think that actually it's going to be a really big sort of like efficiency play where these existing businesses can be presented with just a way to like reduce their cost and then get features that they never even one of us assumed are possible like for instance in our system die we offer sort of like high quality cost of capital that is really only accessible in the developed world today and so because it's an open permissionless system you can expect somebody in the developing world who might have never had access to borrowing rates of that caliber suddenly it's accessible to them and they can borrow at a rate that is comparable to like to develop the world and that's just huge for somebody who might otherwise have to go to like a loan shark for instance so I think that that like efficiency play is gonna be really really big for just getting crypto into the sort of like lower levels of the existing like supply chain business infrastructure and like global financial system so first of all I'd emphasize that I agree with all the answers that were given so far in that like yes absolutely like these decentralized financial primitives will why in service of at the end of the day like the two plus billion people that are unbanked the or even the just you know remaining 5 billion people that may not have access to the best financial services but would have access to better financial services if there is a singular sort of global accessible market for loans money markets etc where I would defer though and we're out kind of like push back is that I think that the given the sort of state of UX in this space right now using financial services that in some capacity interact with the blockchain is it has a lot of friction to it right like it's something that is like largely at least right now accessible to mainly technical audiences now that's obviously gonna change and like everybody here is making a bet on the fact that that's gonna change but I think that like the at least for the foreseeable future for the first million users or so it's more likely that those are gonna be people that didn't have access to whatever this financial service is in like the analog world then it is necessarily these people being like your average run-of-the-mill like consumer lending customer right and so I like the example that will gave where you mentioned kind of gaming as like a Trojan horse here and I think that's like a great example right or is like it's like if you look at these sorts of emerging economies in which they're just literally is no financial system that's where we have the best beachhead of making a difference because we don't have to compete with the existing us of the financial system right now and so while we're waiting for like wallet technology to catch up for the blockchains to scale themselves it makes more sense to tackle markets which just don't have any sort of financial system in them right now and I think that's reflected in the fact that when you look kind of when you look at all the lending protocols for instance or any protocol touches lending like the people who are who are taking out those loans for the most part are doing it for speculative purposes right like they're mainly right now doing it to either like short various assets on the etherium blockchain or to take some sorts of levered Long's here and the reason why I highlight this example is because the reason they're doing that even though it's like totally crazy insane UX to use a blockchain right now is that there's just not really good alternatives for these things like if you want to like short a random ERC 20 asset there's not really good established markets for that and so the the point that I would make is that I think that it's much more likely that the first million users come in from like the esoterica and they come in from the margins and like from random blending markets that didn't necessarily exist in the analogue meat world it's much more likely that that's gonna be the case than it is that like you know it's gonna be people doing kind of traditional meatspace like financial services directly on the blockchain yeah I love that answer and you know this is actually brings me the question I wanted to ask Andy which is do you're pointed out that sometimes the best places to launch a product are where people don't have access to that service and they really feel the pain and I know that makers been planning multiple like go to market initiatives what have you guys been doing the targets a developing market so places where you know a stable coin would really really help out the big announcement that we made this summer was with trade shift which is a supply chain platform is trying to digitize the very very analog process of the supply chain and I think that this is sort of like an opportunity that we're seeing right now which is supply chain finance so in the world of supply chain when you sell something when a supplier sell something to a buyer typically the buyer pays later sometimes 30 60 or even 90 days later after they received the goods that creates a huge cash flow problem for the supplier now that's usually fine for like a large player but like I was saying these small and medium enterprises have a lot of trouble with this cash flow because they have no access to credit especially if they're in like the developing world and so we literally see like coffee growers in Guatemala shrimp fishermen in Thailand having to go to local loan sharks and accept loans at like 300% interest because that's literally the only thing that they have access to and that's terrible you know it like breaks my heart to know that people are getting squeezed like that and so I think that this is like a huge opportunity that we're seeing on the credit side now on the stable coin side because we really have two things here right we've got a credit side the ability to borrow and then we've got the stable point dye which is the ability to exchange on the stable coin side I actually completely agree with it of and say that for users of blockchains and particularly taps there's just no good opportunity to like like for instance auger right you have to use each to pattern auger it's a very novel interesting system but the fact that eath is there just presents like such a UX headache for them and it's just not their core competency to create a stable medium of exchange so I think on the stable coin side it will a lot of it will be other interesting novel daps that should simply need die to even exist to even conceive of their own existence and Robert ended up you know we were talking about the difficulty of switching gears a little bit in lending markets creating liquidity by getting both sides of the markets so specifically around people that are actually looking to borrow what are some of the difficulties you're seeing there and how do you plan to solve it so a compound there are no counterparties to lending and borrowing the protocol itself is always willing to accept you are assets or it's always willing to lend to you and what that means is you don't have to find somebody with the exact opposite view of you at the exact same time so there's no duration that you have to agree to there's no interest rate that you have to agree to there's no counterparty with the exact opposite view of yours with the same credit parameters or collateral requirements as you you can simply call a supply function and it always works and you can simply call a borrow function it always works what we've done is we've eliminated all of the frictions and replace them with a very simple spot interest rate that's always available to you and so that's our approach to allowing a market to grow is making it always work instantly you don't have to wait for any other counterparty to come to existence and so it reduces the difficulty of scaling a two-sided marketplace yeah so I think one of the biggest so you're asking what the challenges is that correct yeah especially around liquidity on both sides yeah so I think I'll kind of address this question both in two parts so the first part is like challenges in secured lending so if we're dealing with collateralized loans so pretty much all lending that is happening in the decentralized financial space right now is like fully collateralized right so if you're a borrower you have to put up a bunch of dies collateral if you want to like take out a bunch of eath or you know what have you and in the collateralized lending realm I'd say the biggest challenge that I've seen so far is that there just seems to be a big supply side glut right so there seems to be a lot more people that want to lend out their assets and earn some sort of interest rate right now then there are that actually want to like borrow these assets to like short them or what have you and so we have a lot of ideas on how we want to like actually address that I think like there's it really lands like all over the place right like we need better UX at the end of the day borrowers need to like have a better experience when they're actually taking out loans there need to be like more flexibility in the actual terms of the loans that they're taking out in the collateral ratios that they have to like put up so essentially I think I think there's there's not one silver bullet answer I think there's a lot of things that need to be addressed in order to like get volume up on the borrower side on the unsecured side that there are enormous challenges right so if you want to do unsecured lending in which in which there isn't any sort of collateral that has to be put up by the bar which is kind of like the Holy Grail like that's like what we want right like that would be the dream if like anybody in like a developing world country or something could take out a loan and die and not have to put up any collateral for that we need good identity systems which have yet to been like really cracked yet there's a lot of smart people working on it but at least I haven't really seen anything come to market yet that's like gotten meaningful product market fit and then like the next step beyond that is having like good reputation systems right so like being able to essentially judge people's creditworthiness similarly really smart people working on that right now but it's super early and we haven't really seen that happen quite yet yeah identity stuff lots of people working on it you know you can see where it fits in with with unsecured lending what about with the exchange is identity important to the exchange space is identity important to the exchange space I think it will be for for assets like securities so if you want to issue an asset as a token on a blockchain and you need to comply with existing regulations you know compliances is critical you have to have identity there so there's a variety of projects that are working on kyc AML and identity you know which inherently require identity solutions that you know that we're pretty excited about 3 off the top of my head that are really cool are Harbor polymath and zeppelins transaction permission layer are all really cool so yeah I mean I think like for that specific use case of assets that are have been traditionally regulated then yeah that you know you're gonna have to have identity cool thanks so you know will I have another question for you which is that you know most like in traditional in in the past when entrepreneurs built businesses they built the entire business including going to customers and having an end user interface but you chose to build a protocol instead and so how does that affect your business strategy how you think about growing the business because you're operating a protocol as opposed to fold this end-to-end business yeah I mean I think it's not that different from a lot of other traditional businesses that are focused on developers so like devel or platforms like Twitter or things like that I would say that like one big difference is that because we still have customers right like our job our full-time job is to help developers and real ayres be successful and if we're not doing that then we're failing and so we're very focused on creating like great developer tools making it very like a pleasant experience to create gaps using 0x so we and so we have customers and we have responsibilities to you know serve them but on the other hand like with a traditional business you know you have investors and you have to be generating revenue and profits whereas you know with us since we're not like focused on generating revenue I think it allows us to be much more focused on our mission and we don't have to like water it down in order to like get you know our profit margins up or anything like that so I think it allows us to create like really just focus on providing the best tools for our users and developers and we don't have to worry about things like you know extracting rents from them or anything like that so you and then Robert you took a different approach right so you built both the the underlying smart contracts but then also the front-end and so can you tell and you you recently launched as well so left alone how is your post launch been what's your go-to-market strategy how do you plan to grow yeah that's a great question so at compound we built an underlying smart contract platform as well as the first interface on top and our vision is that over time more and more developers are gonna build smart contracts layers on top of compounds that monetize tokens or borrow from our protocol and there's going to be more and more developers that build their own interfaces for special use cases a great example of this is you know we expect developers to build systems that borrow from compound and trade on 0x simultaneously and so our go-to-market strategy was just having a minimum viable usable experience for a user knowing that most users you know don't want to wait for better systems to come out when we launched we wanted to make it as simple as any web 3 enabled browser wallet or meta mask enabled users to simply supply assets into the protocol or borrow from the protocol and over time we think that the ecosystem on top is gonna get better and better and better and so in the week since we've launched we have about three million dollars supplied to the protocol which is liquidity available to anyone who wants to borrow and we've had about 50 to 60 thousand dollars borrowed so it's a small and early start but the future is only bright also thanks so we have a bunch of hackers here today so I wanted to do a quick around go ahead and go around and see and ask you guys two things so first is what's the coolest thing you've seen built so far on your on your platform of protocol in general and then specifically what's on your wish list for each SF what's one or two things that you really want someone to build coming out of this hackathon so coolest thing you've seen so far just generally and then for this hackathon what do you want people to build so maybe we could start with the death sure the coolest thing that I've seen built this is so you have to understand a little bit about Dharma works in order to get this idea but basically in Dharma there's this concept of what we call underwriters who basically kind of like attests to the credit worthiness of a borrower in any sort of given transaction and so we had somebody at a hackathon once build a game of loans as in like you know a tongue-in-cheek play on Game of Thrones we're essentially like different underwriters compete over different loan offers and basically like bid against each other to like have the right to underwrite that offer with like their bid being like you know the amount of money that they want to charge and also you know what how good of a sort of credit rating will they give them so that was pretty interesting and it's a really really cool concept as for what we'd love to see built so again Dharma's live we have great developer tooling we have great developer documentation it's really easy to use and one thing that we really really want to see happen is people build a margin lending interface for augur prediction market shares just because I think it's like a big missing piece in the auger system and our two systems would slot together like really neatly so I'd love to see that bill sweet the two coolest projects that I've seen built on top of die are sitting to my left and right 0x is you know has created this like explosion of decentralized exchanges and there's just no doubt that dye is the most common quote currency on every single one of them and in fact the vast majority of volume I think you might agree that is traded against dye on all these different indexes and on the other side Dharma which is like a completely different approach to lending and borrowing a lot of times dye is either used as collateral or it's lent out and so this kind of just goes to show you that like all the work that we put in to our project just got us all onto this stage here sitting right next to each other so the other question which is what I would like to see here at ESF is actually liquidity analysis so liquidity is this very interesting Mirage kind of concept in encrypted networks in in the trading of cryptocurrencies because I mean due to many reasons all kinds of crazy watch trading and speculate speculation and all these different exchanges and it's very difficult to get a sense of what's real and what's fake and so we have like a huge like need at maker to do this liquidity analysis and so we are planning like a really sophisticated sort of strategy about how to discern what is real and fake liquidity but I think that it could be a really interesting hack here at the conference and just to kind of like make it a little bit more accessible and bite-sized the thing that I would like to see is somebody take point market cap data and then just subtract figure out a way to figure out whose just like a long term cold storage hold hold hold allure and then figure out like what's the float what's the actual trading float of these cryptocurrencies and then say okay what's the real market cap because we've got the float and then we've got the price and then we can see what is the actual real market cap of people who are trading this and just kind of discount the long-term hold lers because they're just like a completely different class of you know trader investor and when they take their stuff out of cold storage that's when it becomes sort of part of the market cap because it can affect the actual price so if anybody wants to do that you'll become my best friend I'll give you any prize you want and it's really really something because the corn market capita and the crazy crazy market cap valuations that we see on quite market cap are just fakeness they're not real in any way so I want to know what is the real market cap of these assets so I mean I I think a lot of the real layers it would be like foolish of me not to say that they're like building the coolest things on top of 0x but maybe like the less traditional use case for 0x that I thought was really interesting so I don't know if people here are like if they've looked on ether scan and they just have like tons of these like crappy tokens that have just been air dropped on them without like you don't want them but they just like we're sent to you so this project called open relay what they did is they did in airdrop but they use 0x in order to make it something that you have to opt into and so what they did is that created a 0x order specifically for every single account on aetherium so like 30 million 0x orders and people could go and fill them if they wanted to participate in the airdrop and if they didn't then they they didn't get the tokens in their wallet so I thought that was like pretty clever and it was like pretty fun to see as far as a use case that we're really excited to see at the hackathon so there was a team that I talked to yesterday that was doing something pretty cool they want to use augur plus 0x to create prediction markets but very specifically focused on like synthetic stocks so you know it's kind of shitty if you're not in the united states you're not able to access a lot of the publicly traded companies that are here which have you know traditionally done very well so companies like Google or Apple or Tesla it's very hard to access these things if you're not a US citizen so if they're able to create essentially like a synthetic version of these assets that are globally accessible I think that would be really powerful and you know potentially you know kind of serve as a quasi force so I think that's pretty exciting you know I want to see how it turns out so it's been about a week since compound launched and so far the most interesting things built on top of our system are actually informational dashboards we built one public informational dashboard we've had two developers launch really interesting dashboards on top they analyzed the markets and the liquidity and the health of the different assets and so that's been the most interesting thing so far the simplest thing that I would love to see built at at San Francisco is something that borrows from compound and immediately trades using khyber or 0x or any other trading protocol so one-click being able to short sell an asset or one-click being able to march and long an asset should be relatively easy to do if you have any questions talk to me afterwards awesome thank you and you know coming from the wallet perspective and from a mobile wallet perspective I can tell you that you know we've loved seeing the first like kind of the first era of daps where you know the full force of like what the protocol enabled was made available but what really will take off we feel what will really take off is when you have really really simple one or two clicked apps that let you achieve what the user's goal is in just a couple of clicks and you know I think compound achieve that with your first goal I was able to invest my money really quickly dy/dx they did it with Expo and so if anyone is trying to build on top of protocols if you can build something that it lets the user get to that destination in just a couple of flicks in a really simple mobile interface I think that's gonna be really know so you know with that I you know I think we're almost out of time if there's any questions from the audience we're happy to take him no questions come on gas [Laughter] that's fine you we're all gonna be around you know you can come and talk to us we're happy to talk to you if you're building any gaps or if you just want to discuss decentralized finance and what we've been building and what you've been building thank you so much guys this has been amazing thanks for joining us and everyone have a great day thank you [Applause]