Use UMA's Token Builder to Tokenize Anything by Regina Cai of UMA

I Regina this is a universal working and today I'm going to be talking about since I'm attorneys why are important and I feel the thought of each other Foster so we're going to go through what some of it to the car ride reporting in a demo how you can actually use our synthetic to bewilder and on Tessa I would be to build your own and then lastly talk a little bit about what you can do is another to witness if you call it starter ideas there are general types that's right so there anything about peg to a particular price effects examples this is make your dog's diet and you know the great example actually where someone has deposited to create synthetic you have see that's backed by a portion of that meat so what you created is you created synthetic USD tokens backed by ease in fact over colada lies might be but all you've said is that each of those die is supposed to be pegged to make ricin traps about the price effective and the really important reason that we care about with other tokens is that you never have actually own USD you never have to owning Bitcoin interaction to own an opportunity stock index in order to actually get price exposure to those indices great so this is why do you think they're super interesting because you can imagine that normally when we wanted three different types of assets we have to hold them in order to actually buy and sell them with each other in the real world right but was it synthetic the whole idea is that we can actually still treat caption move money around based on the price of those other things you care about for this concepts without actually having to have any of us ever older customer well so that's why I say that synthetic tokens are in this general class of things because there's hope in terms of where the family with associated them comes from in this price feed and that person could be any number and it basically gives them a lot more flexibility to have different kinds of cameras so who might impact back in March or so created a synthetic US stocks to it Susumu that was backed by time and if I were flies by time but the amount of vitamins back that have been fluctuated with we're at this u.s. stock index was the US stock index was at say 2500 there'd be 2,500 dive back a token if it went up to 3,000 Americans $3,000 and so it's really cool you've freed a token that when we trade it with other people how's that value equal to this random crazy things I know this actually have to actually own actually restaurant so we've created a tool that lets you create tokens like this so what you're going to do is deposit it or to die we're going to posit die and to this what we're calling a token facility [Music] and so a portion of that is going to be used it's back in Platteville just in addition you can be required to have at least a requirement level so you have to have total in excess of that you have to exceed a total fired model for your total facility this looks a lot like a major CP and is open to make your CV we have is you have piece a portion of that piece right represents vacuum collateral from your die but you always have to maintain at least enough feet to match you to make shape make sure that your multiple other lives right ready it's right you have at least one hundred and fifty percent die that might be visitin out and then you have a little bit of extra cushion on top so that your over cloud rise to beyond here of the rotational matrix so the same idea here but what we've done with Emma is instead of depositing a volatile asset like these then a borrowing and stable asset like die you're going to deposit a stable asset like die and then borrow a volatile asset so that vault okay to keep track of the price of Bitcoin and die or the price of Tesla dollars but we just use Diane's with dollars or it could even track the numbers turn followers so you can have a synthetic token where the number of die of back that tofu is equal to the number of Twitter followers so you can do all these things what I meant when I said that it makes me very flexible it just allows you to create tokens whose value is whatever you want all right so we can accept this is a lot like your CDs naturally the question is what happens I there's not enough collateral when the total collateral is less than the requirement level and just like under performance there is a Liberty to process associated with these customs and other programs so what I'm just drawn here is that let's say the total collateral right everything in here it's actually less that be required by law so you've got this short all in red so what's going to happen is a portion of the over polarizations it's going to be assessed with a penalty and that's going to go from worker owns that to have been presented to the people over little innocent cemeteries so a portion of that is paid from the took a facility owner to the orders of some activities so it's what they different from makers TVs for a portion of that feeds into page weather by contrast great bye sweetie but it is somewhat similar in myself that there's a penalty comes dust and the whole thing kind of eliminates in myself so that's the overall idea if you guys have more questions other person we're still shooting but the last point I want to mention about these synthetic tokens is that unlike maker unlike other synthetic tokenization platforms these documents will have an expiration time stamp this is important for a couple of financial engineering reasons like also go into more detail about but I just want to give you guys a heads up but after expiration after that expiration time stamp the amount of vacuum RL is fixed and anyone under holding those tokens can redeem them before the vacuum clause and so in a way it says if you were economic risk at that point after expiration stop if you helped one of these synthetic tokens that was a number of Twitter followers and your yang has after expiration the number of dire candy addicts are deeming that jovian is just fixed it doesn't it's an update for Lena's price that it had the latest numbers right [Music] then in this diagram any excess platter will be on the back collateral will be paid back to the Turcan facility before expiration the only difference is up that only the token facility owner can review his tokens against being a facility so it has to be for example to put this back in to make their CDP turns only the CDP owner close up his name okay so how do we create synthetic toe business I'm going to do a quick demo now of how you can use either a synthetic took the builder also put a link to this in the yes that is work but I will say one thing about this I have to be a repeat that's kind of an amazing thing and you also have tests that even have to die in order to use so in my case I read have untreated but I want to show you how to use this app and will create I am yeah yeah so I already have to set even s it die I'll show you if you look at this you'll see it's us with every feet pocket what you you repeat and then to get more Tufts of died once you have that East Pap tests that eat to pay the gas to get your tests that die go ahead that's right let's open the token facility so this is at this stage we're actually just creating the facility that we're going to use to borrow dividends so right now we're setting up the facility so what assets should be trapped or what place someone picks something up okay wonderful so we're basically saying we're going to now create a facility unfinished if that's going to give us the ability to create some other tokens that track am i right let's take an x-ray be perfect okay we basically at you mud curated this list of expirations so that it's easier to sort of aggregate you could it be another one kind of notice that these are the regular dates that are gonna expire so October and so here we've got a summary right we're gonna launch this token facility it's gonna track CMI gusty we're gonna have to over plow rise it by two percent just small because seeing my own ski is not very common it's going to expire or settle on October 31st and then this is just the contract names of it spit out my on page operating and name and the Chobe symbol and I'm okay with these let's go ahead and create the facility okay great now our facilities fit right so that box so I had it in that diagram tops down benzina now I have to authorize it to actually fund it and to the end issuing synthetic tokens worthless it's going to authorize that so now we're going to actually begin to funding that facility in this case we can see the current price of seeing my USD this is the price of one Chinese famine in USD so let's say that I wanted to create ten tokens that means that I would need 1 point for dive right in Italy so let's put in five guys just being like over clockwise and you'll see it calculates for you that the max number of tokens you can safely create is 34 so I know that I have been well over clockwise borrow these tokens so now I'm on the stage where I have begun funding it sighs why are you guys so now I've actually put in all Taekwondo and it's telling me that of course I have the backing cotyledon for ten tokens I'm also over priced we that 102 percent ratio and I also know you're in there 10 out so I had I posted five so I put in five died and now I know that I only needed like 1.4 die to have an effective model this is one point four nine are going free ten some sediment see my tokens each of those differences Birds white one more time so now let's see what I did so I've created this token facility and what it's telling me is I have a certain facility if I actually short those tokens but I also barns as trophies myself myself so I longed with tokens exam exactly exactly so I'm shortage okay but to myself great so it's tell me again I have ten tokens race in total exposure is ten and then I own all ten so they'll get out to zero if I went ahead and gave these tokens to someone in the room this number would go down but this number would not right because the total number of tokens of this facility things are outstanding is ten even if I give away like five million mm okay they gonna make you go away making manage this position rapes it just like a CV I can borrow our job is it just like borrowing or die I can repay the debt by sending back some of my tokens again because I'm in shipping facility honor I can redeem my tokens against my own facility and then here great I've never withdraw or deposit some additional dye to make sure that I'm always over collateralized exam cool so that's how the synthetic token other works if you guys have questions that I use in it definitely aspects in this corner office I went for the last couple of minutes just talking about what you can do with these tokens and why they're important so I said you know a lot of flexibility with soybeans right now is that the main and describing but the reason because these are three examples of applications that you wouldn't be interested in so with us another token builder we could build this synthetic Chinese from you right and lucky do you do that you could create a trading strategy company with wallet for Chinese industry so normally we're really focused on it saying like giving people wallets that have either died or other staple pointees in US dollars but again now you can create stable coins denominated other currencies you can now create localized products for this audiences you could also create synthetic bitcoins and if you sell them other people remember that here I short see my in effect right because I got this token facility so if I sold all of my long tokens I would no longer be short the tokens to myself maybe short tokens to someone else and I have effectively leverage short exposure to see why okay you can also get leverage actually so this is important because instead of how now having to go on to like a protocol like safety body x3 ah pacifically far out that quite a short it you're now able to get synthetically terrific point and all you have to do is find a counterparty who just wants to buy one synthetic at the coin on a theory right that's it really differently before to get lower charge bitcoin you have to actually go out in the bar bitcoins are short than the short it either like five your own right like don't have been fighting to turn a party who will let you think fine or again just kind of like hidden or quality by DX where they could kind of do all that for you in the background here you can actually do it in really pure form the last example of him is something was like we're in creative and maybe it's interesting to see new items but there were these reddit donuts while back and these Donuts were tweeting on I guess a couple of ways that they were being sent to people to track how many upvotes certainly read it whose Connor victory is your top but they weren't back to anything right they were just like they were kidding to reddit gold or silver about sums but this time you can have free credit donuts that have actual vacuum value so you can say like those creeps own joking facilities and those living facilities will have a price feed that tracks the number or the amount of perform at a particular user has and then I can sell you those tokens if you think that that user feels like really good mean I can get large short that user right there are all these kinds of your things you can do when you're changing the price feed and they can exert another so what are we looking for we have this bounty out there we're giving right a thousand dollars to project that has in this creative use of tokens ever made are synthetic took a builder three dozen USD yes and I try to give you guys a couple income or suggestion first of all we're looking for because I always say creativity I think there are two types of creativity mean there's creativity at this level right which is different applications of the tokens so if I could mean rightly now that ice cold enough here we actually just created living now that they found out you can come up with a creative way to use that I already have a chip in like to send them to you and then you can plug them into your own pocket so if you can come up with creative ways to suck up one thing they're looking for on the other hand if you have your own special idea for what kind of race speed you want to use that's another type of creature great so I suggested three ideas here Bitcoin and Chinese made on those prices you actually do have a dad so if you wanna use those now you can but if you have ideas for other price schemes we can also talk later about how to actually give you tokens that track those so are you ready donut upvote numbers uglies my Twitter followers as an example you can see football season right here Supercross season is upon us right there are all these different other ways that you can be creative so it's a doctrine of yes yeah so I like a custom index right and that'll give you kind of a dummy token that if everybody tells us that the custom thing it's not one of our precedes as you can use that okay for now but it's something that like later you do want to build on after my backbone we can definitely have a longer conversation about whether it's the price of 80 people in to support her yeah so I don't think we have an API with product per se but I can't I'm more than happy to walk you through like certain portions of our github and show you like the particular contracts that are particularly relevant for this just stuff so I'm happy to like show you something I'll just include a link I got some of that discord later but even though we don't have like any care product first I'm still happy to like our give up a bid in for everyone if data feed from the index is data that's already gone change that easier to implement would that be something that's still you guys have like setup we talked about this yeah what was the question so basically if you had a data if you noted that a source that was on change yeah could you have pity of the contract read it and the answer is like absolutely good but it's gonna require some like code changes but it required code changes like specific ones here like for facility contract or I have to take a closer look so we don't have like our core engineers and now it's not really depleting right here but yeah there's a couple like definitely workarounds what is like might help you done say what's more that good point that yeah yeah we actually can't sue okay without like over-promising but what would you just said we have this easy abilitynet like big tokens is there an ability that I like to add new price Peaks like yes but some of them requires like deploying a bunch of contracts and the whole system Archy definitely technically possible but I would you when you say that would potentially be easier than like an actual like API price feed because it's on chain like you would need to use Oracle's or yeah if you just I don't want to wait yeah yeah yeah but coin market cap fake data needs an API that is accessible it's not built in by people so we can talk a bit more about like what the challenges are there [Music] black currant right so let's say initially were a good lover in short but I can offset this by actually sourcing another long position to get effectively longer risk of the show and some some of the right so I have a black dress but there are ways to make money still in this environment so it's a little bit complicated but the broth idea that if I'm going to have this token facility I can create leads tokens and then sell them to the market at a premium or great and then I go to the market premium I get to over the lifetime of the ship and until expiration I get to collect the spread between the pressure and I sell them over and away these tokens then become kind of flight forwards on the right a set rate and they reflect this type of funding rate for the asset they reflect in some way the cost of someone like means the token facility owner to have all the stock oh my god she it reflects the cost of meaning having enough money so I could afford to maintain this hedge as well as put it in all the capital to the southeast - so any decent prosecutor exchange service or we don't have anything like that right now I think the best way for someone to actually go about doing this is probably to integrate with Linc judo sloth or some other kind of I will say right now everyone's on top step so I wouldn't worry too much about the actual life like sourcing a ton of liquidity for it right now but it's something to be discussing more detail but we have some other ideas around like how you do it yeah I'll buy your Testament tokens could you answer questions on a lot of the efficiencies actually are so easy first two are more detailed like sancho engineering answers I won't go into too much detail right now this kind of was your question right like have you trip there's the quiddity and the last and there is it was also not just creating these papers or contract chocolates for synthetic assets but also providing in the Oracle service or a data verification mechanism DBM and there is a process based on weight get round about that but you can read or you can come by why don't you give a short answer to questions all right so short they expire so that eventually the price to minimal you know for sure that the price of token will match the price of the pricing its well the question is is a regulatory thing well I'll answer that so there is a regulated like the CFTC is exception where your German is just less than 20s but that's actually not the point here just two seconds more detail is if the tokens don't expire if their perpetual you can have the community circumstances where say demand for the synthetic token way outstripped supply so the price of the synthetic token could trade at a massive premium relative to the actual under layer and there's no mechanism if there's no mechanism to bring it back and could just stay there expert revise the mechanism to bring it back because that arbitrage serves know that at some point of the future these two things will converge and they're working for each other based on the supply-demand imbalance this liar tried to do try to create a Bitcoin perpetual didn't implement that basically on bit flyer they their customer bases on retail so like traditional futures contracts have tax freeze and if the futures contract it can't treat that part away from the underwater because an arbitrage sure will do these trading market out benefits sorry well so like let's just say let's say you have an expert at the end of the year for something right and the real-life versions trading in a hundred dollars and the synthetic version can be treating at 110 right in that case then you sell the synthetic version by the real version and you know that by the end of the year you'll make ten dollars right whereas if the synthetic version trading a discount at ninety bucks the offices by the synthetic so the real one you know anyway dollars whatever there but if you don't have the next pretty you don't know that it's gonna happen when you say X has the transfers to allotments and assurances that the transfer in terms of elimination any doubt or is that transmitted gentlemen a lot of that yeah the letter you can actually literally think of the next almost as like an eight-hour spider in thing which is kind of interesting way to think about it so every eight hours there's sort of this expert these questions to my desk [Music] [Applause]