EthCC 2: Pavlo Makarov

let's just get started I know this might hook the last one for today we are all a little bit tired but it's actually the first talk about defy at this conference and tomorrow we're gonna have a set of talks did he do you fight especially so what I would like to do today just give they brought all that you about defy how we get where what we have right now and maybe after that we can reflect together how we can improve it as a community a little bit about myself my name is Paolo Makarov they've dubbed death and we are located in Berlin and working on protocols and application based on the freedom blockchain so it's an agenda for today prerequisites all the new challenges and our new projects will have damages will say a few words about what you're up to so what we have done so far we development open source easy TCR its you actually framework on top of talking credit registries we have been one of the daughters of GCRs working alongside with my goals in the creator of the GTR we also organized last year in Kiel Ukraine tablet conference as small maybe less the most projects I'm the most proud of so far many speakers were also presented this conference for the first time came to Ukraine and our new projects khuddam what we're trying to achieve to provide Theatre Krypton on off-ramp but a noncustodial way easy tens of us so defect visit so the financial crisis 2000 world financial crisis 2008 when banks issued high-risk mortgages many of them many of them went into defaults it become clear we need some new more transparent financial system we got bit ago in 2008 which is strong transparent and programmable money with the predictable inflation then came infinium 2050 15 that is replicated state machine and environment is equal smart contracts in decentralized way so social interest we all can communicate pretty easy all the internet but actually the number of global markets which have significant liquidity it's quite limited and there is two factors was it's a one social trust another's political regulation once we have this trust machine I think we also need regulation framework that more institutions also market makers can enter this space actually what is defining about its financial services built on the digitalized rails so what we are trying to achieve is to replicate existing projects from the traditional financial system but the improve its functionality and different risk properties in inherent in crypto systems if you think about in tech the whole stack of in text up to tea and we've defied the slowest finance we just try to replicate some of them into the digitalized rail so we have this trust machine we have networking layer and we have some managed design mostly up to the projects how to design that also it's a step forward individual so the more you the more you contribute to the protocol to the liquidity the more you can expect to get revenue from it and to have actually to make it simple to have any financial system you the base level needs to primitives is underlining and derivatives so underlining is any technology any properties like stocks bonds and derivatives you can think about it as a contract that derives value on the underlining assets or M or bench of the sets and also financial inclusions is you think about to be on people around the world nowadays we don't have any financial Excel access it's a pretty huge number but I would claim here that the must the most user will come from will be like educated people from developing country we will achieve more self sovereignty using defy you're gonna see if through use cases you know let's see it's mostly for like financial results right now so it will take time to get there I will wait to talk about any specific projects what I would like to do just to give all of you what we have right now and what kind of approaches and do we have so instance payment we all know lighting network or the Bitcoin we have right an order in theorem there is also many brooches how to implement state channels either like application based or hab based or like virtual Channel so we have exchanges centralized decentralized limited control order centralized exchanges and limited features order this class exchanges so it's only like trade-offs between finality and security we also have stable coins like many who knows that died the hugest the biggest one and it's like algorithmically that they way do we define their value to peak their energy 20 talking one-to-one to the US dollar alcoholic Nicole Chan's detonation mechanism or you have centralized and it is there you just need to trust we also have digital X advantages management any kind you can imagine like from the bullet distillates were like curated by dowels to poorly centralized entities and we also have derivatives in cable prediction markets like Boga Noga gnosis and the huge part is launch protocols like and some of them I call them pinch shops so what we are doing what they are doing k their centralized entity you just can get some Fiat deposits on some of your digital assets you have also free markets there then the term the terms of a low on treatment by the contract and but whether the community so you can just iterate between the smart contracts and you have out of counter or peer to peer lending protocols just weekly bath challenges are headlines here somehow liquidity so liquidity is most challenging one so once you start thinking about any new projects either you want to develop new protocol or develop some kind of interface on top of that a great some of them the the most important thing we don't need to think about is liquidity so how we get how it gets mostly quiddity out there and user experience and onboarding it's relevant to the whole and blockchain ecosystem so it's on special for defy general also crypt on and off ramps that's action actually what we are trying to address our projects so you can you can swap tokens on these slides exchanges but there is some problems if you want to on of off ramps from Krypton and actually have few options you can use centralized exchanges like you will need to send their tokens to them and hope they will not get attacked and you're gonna get your money back where you can exchange from local meetups or you can get it if you gonna secure some job and there is a lack of regulation I think it's mostly for institutional and make market makers also all services what we have right now are auto collateralized meaning you can only get borrow some loans against a certain percentage of your collateral as it's pretty uncertain and we definitely also I think need more interoperability and thinking about Bitcoin we also have robbing Bitcoin but it's centralized and custodial and I also think that many Bitcoin holders don't care about the apps in general but once you participate in this divide is last sliced finance ecosystem so maybe we can think how to get them involved even without having any ether addresses and just short about our products so what we are trying to address is here to crypto often off-ramps and first of all in non-custodial wait this isn't fast in Europe is thanks to the payment service derivatives and which allows any banks to open their api's to license third parties you also will need to get permission for the customer that's why the customer going to become the center point of their of their and bank accounts so banks want all in the data for anyone anymore once you've wanted to transfer to another bank you can just take all your transaction history loans what you have and take it with you to the TV you didn't in the new bank and yeah that's our twitter if you like follow us and also DM is open any questions that's it thank you [Applause]