Stable Summit Turtle Tank Live Pitch Hour

Okay. Uh so we are ready for the pitch competition now. Uh I want Essie who's the founder of Turtle to please come and uh tell us a little bit more about Turtle maybe first.

Well, thank you for having me.

Pleasure to be everyone. Thanks for attending.

So my name is Essie Lavra. I'm the CEO and founder of Turtle Club. Um I'll start with a brief introduction about myself and how that led into Turtle and and what we're doing. So I've been in crypto since 2013 as a kind of a passive hodler. Been working the space professionally since 2017 and really been interested in the art of trying to deploy liquidity very efficiently in the space.

Uh trying to move liquidity in a way uh where I subject myself as well as my LPs liquidity the least friction possible so that we can route the liquidity in the space where it can be used most productively. uh whether that be through utilizing the liquidity, monetizing it or ensuring that we're safeguarding the liquidity of our LPs in the most responsible manner possible. Uh so I came up with this idea of uh like a liquidity protocol, non-custodial liquidity protocol back in 2021 when I was uh managing part of the treasury of one of the largest GPU miners in the space. And you know back then I kept coming across uh new protocols that were looking or asking us to help them you know bootstrap or anchor their protocol. And one of the things I noticed is that by committing or making larger liquidity commitments, uh, one could negotiate additional benefits or upside on behalf of my clients or LPS in our liquidity syndicate.

Um, so I realized that if I wanted to compete or, you know, at the top of the liquidity space, that would just get more competitive and that I would need to be able to tap into a larger liquidity base of LPS to be able to offer my LPs some competitive sort of emissions or incentives on the upside, but also uh to cover the costs of due diligence on a lot of these opportunities given that many protocols subject their LPs knowingly or unknowingly. lead to uh many different types of risk across the stack. Uh and that's when the idea of Turtle was born. Um so in um March of last year, I decided to kind of, you know, quit my my job and and pursue Turtle full-time. Um and and the idea of this non-custodial liquidity protocol is that we want to be able to route the liquidity of our LPs into the protocols that can best utilize, monetize and safeguard their liquidity in a trust minimized manner on a non-custodial manner.

So the liquidity always stays in the custody or wallet of our users and if we were to be you know hacked or you know if I were to turn evil tomorrow uh that none of the liquidity of our users will ever be at risk. So yeah, since then we've been able to build up a a really big uh liquidity base of liquid funds, miners, family offices, um you know, Dow treasuries, high net worth individual individuals and you know a long tale of smaller medium-sized and retail uh LPs and we've been working with yeah hundreds of protocols uh all across the web free stack from different chains to DAPs, asset issuers, infrastructure protocols uh since then. So yeah, it's great to be here and um yeah, looking forward to uh checking out some TVL deals today. Okay,

thank you Essie. Um, so the way this is going to work is we have founders who are going to come and pitch their products here and then we'll let our judges uh ask some questions. At the end we're going to be announcing who's going to be our star team and who probably would have a potential investment from our judges uh or even being chosen to be LP. Um I'll let my judges also please introduce themselves. Alex, if you can please pick up the mic and very briefly introduce yourself um and then we can pass it along.

Hi everybody, I'm Alex. I'm the founding general partner at Vera Ventures. We invest in stable coin infrastructure, also an active angel investor uh for the past decade in web 3.

Hi everyone. Uh my name is Rico. I'm with the Cyber Fund. Um uh we're the uh founder fund by the founders of Lido and P2B staking. Uh hello, my name is Dee Wilkins.

I am with Fimbushi Capital, which is an OG uh VC founded in 2015 with Vitalic and some of his partners from Asia. Hey Roman, my name is Rob Kajalot. I'm founding partner at Bidscale Capital uh prop uh venture fund operating from 2017. Thank you very much. Hey there, I'm Amen from Nosis VC, investment partner there and CTO at Zerus.

Yeah.

Hi, I'm Nate, founder of Token Dynamics. We're a protocol design and economic security firm focused on token value acrruel and censorship resistant protocols.

No, no, no. I'm the last one. Hi everyone, I'm Dimma. I'm CTO at Pink Bites waiting light a curve 1 in and other folks.

Well, thank you so much to all our judges. I'm really excited for this uh for everybody sitting here and also everybody who's going to be watching us later on YouTube or any other platform. Um first up we have uh Wun from Wi-Fi Labs who's going to be pitching his product. Uh Vun. Yes.

Hola. Bueno Cyrus. Okay. So, today we're going to be solving onchain FX. So, right now in the FX landscape, there's basically off-chain and onchain.

Offchain is swapping stable coins for local currency. There's centralized exchanges. There's peer-to-peer like Binance P2P. There's a lot of OTC desk. And then onchain, there's like Aerodrome, Curve FX, and Uniswap, V2, and V3.

Why onchain? Why not stick to offchain? Because you want guarantees on market maker liquidity. You want settlement guarantees. You don't want counterparty risk.

And you want to be able to extend in things like DeFi lending. So why is it so hard? This is an excerpt from the IMF basically saying that central banks overvalue their price and thus it's very difficult to market make. This is from the World Bank showing what official rates look like and then what the secondary parallel market trades and there's a huge premium thus making it very difficult to market make. So you guys have been here in Argentina and you have been spending money at restaurants and you would if you guys notice there's like the official rate there's like the blue dollar rate there's fintech rates that operate on P2P and effectively you have to figure out which fintech app you use because you might be getting fed 5 to 10% discount based on what you use.

Now, ideally, if we want to be able to do crossber payments with stable coins and US stable coins and local stable coins, someone should be able to go from US to USDC with like Circle Mint, do a swap on chain from USDC to IDRX, for example, 24/7 instant settlement. Then through a PSP via bank transfer, you could get that IDRX back to IDR and that's that's a whole import export flow. But what's happening is that whole FX settlement, people get screwed in the back end. So this slide here, someone sent in five uh 5 US and like the comment from the tweet is that this guy got ripped off on the FX. So let's see how we could solve that.

So this is what like a deck swap could look like USDT to USDC. But what if you wanted to swap to local stable coins? So in this example here, you have this hypothetical local stable coin for the Trinan Tobago dollar. I'm from Trinidad, Tobago. And even though the central bank says it's worth 6.

8 to1, it's currently traded in secondary markets at 8:1. So we want to swap 80,000. And let's take an example of unis swap versus whatifi can do with 200,000 KTVL. You could have $80,000 swapped and you would get 9,000 out. So like about 10% slippage and the price would move to 8.

8. Whereas with VIFI you could swap that 80,000 get about 1% slippage and there's a slow FX movement. Now the question is how do we accomplish this? So traditionally in unis swap there's two pools. There's USDC TTDC here being the secondary um emerging market currency.

And what VIFI is doing is routing the liquidity through three layers. There's one virtual fiat environment which is our mechanism and then there's two curve stable swaps which we call a stable swap sandwich. So USDC gets you to USDV which is our native unit of account. Then that USDV is swapped for TTDV here which is synthetic and then that synthetic TTDV is swapped for TTDC. Now, the reality here is that instead of the 200,000 being pulled in this unis swap, you could have 25,000 at the edges and 150 in the middle and you still get that um 1% slippage.

Now, what's this virtual fiat environment? What's this mechanism? This black box. So, what we do is we we split a USDV into two tokens. A fiat token and a redemption token.

there's a redemption token fiat token pool and then you sell your redemption token for fiat tokens and then you get the premium and then that is swapped for real world assets. So let's take an example. We're in Argentina. What if you could swap one USDV and you have an oracle this this oracle is 24 it takes about one um 24hour period before it updates. The or the official rate doesn't change often.

So you could get 1350 minted and one redemption token. And let's say right now the spot rate is one redemption token is worth 100 fiat tokens. That means that you could get 1450 fiat tokens out and then you have 1450 synthetic Argentinian pesos which could be swapped for real world asset Argentine pesos. And what does this look like endgame? This is what it looks like to onboard all the global south currencies.

So you could have Colombia, Brazil, Kenya, Nigeria, Indonesia and any currency. And the idea here is someone from Colombia could swap and without having to go out into USDC, go into Indonesian rupia. Someone from USDC in in the states could import from Nigeria. And now you could bring all the major market currencies on chain. There is a virtual strategy vault that allows you to stake USDV and that stake USDV deploys the liquidity across all virtual fiat environments.

It's all synthetic. So at any point let's say the currency collapse or is insolvent you could terminate the virtual fiat environment and the LP is fully reclaimed in USDV and SUSDV is the combination of the risk-free rate plus FXVS. So you're you're not only you don't have to like compete the FX fees doesn't have to compete with whatever the risk-free rate is. You get whatever the risk-free rate is plus um onchain FX on the global economy. So this is what a potential endgame looks like where you have this importer sending in USDC.

You get IDRX that's straight to their bank account and everything settles onchain. No settlement problems. No is

thank you Vun. Uh I'll give it up to our judges now if they have any questions. How do you bootstrap the liquidity in those uh uh FX pools?

Yeah. So, do do we get slides or just Okay, cool. Yeah. So, if you want um to bootstrap liquidity in these pools, um of course, you would have to do um let's say incentives with the VIFI token. There's a VIFI token that manages votes that is that allocates liquidity across all the USD DV pools.

So basically you use the VIFI token as a bootstrapping mechanisms to get people to put liquidity in on it originally.

And do you do this across all those pools or is your go to market like focused on one specific currency? It it's it it will be across all currencies because um the V you vote escro the VIFI tokens and then it deploys um votes across the liquidity pools where most um volumes are trading kind of like a drum.

Why use unis swap v2 as the point of comparison? I mean xy equals k automated market makers weren't really meant for stable coins. We could use concentrated liquidity in V3 and with enough liquidity get similar slippage.

Sure. Great question. I love that question. So the reason why we usually show unis swap v2 is because unis swap v2 gives price discovery and these markets require price discovery because the the supply and demand for us changes dayto-day. So what most markets happen when they do concentrate liquidity and you could look at CNG with USDC is that the market maker is is is supply liquidity their concentration ban the liquidity moves out of that and then everybody's getting insane slippage because you require professional market maker to reallocate with the tick range for the concentrated liquidity.

So while you get optimal slippage with V3, it requires a professional market maker to rebalance your liquidity. Whereas this requires no rebalancing. You get price discovery only on the parallel premium.

But there's I mean the the price discrepancies are arbitrage though in real time. You don't need a professional market maker to manage V3 liquidity because if there is a triangulatable arbitrage opportunity, it would be exploited by the market makers. the the the reason why that so you're correct that there is an arbitrage that's not um like incorrect the reason why it's difficult is that arbitrage happens over days so there's no t t plus zero you have to actually go maneuver through trify systems get through capital controls and then rebalance that so because of that time discrepancy there's like a option pricing on how long it takes to settle so the redemption token effectively prices the the time difference to actually settle that arbitrage Got it.

Uh, am I correctly understood that USDV is your stable coin, right?

What's that?

USDV is your stable coin.

How you going to issue it?

It would be like M0 wrapped. So, it's all um real world assets um backed by short-term treasure bonds.

Okay. Um so just as a recap are our our judges just have three minutes to ask the questions or uh yes just question the the founder and the founder has only six minutes after that the mic goes out. Um so yeah this is going to be it. Uh thank you so much Vun. Uh everyone please give it up for Wi-Fi labs.

Next up is Alan from Covenant. Again, as a reminder, when you see the timer in front, uh, come close to the to the to the end, please wrap it up. Uh, we have 6 minutes for the founders again and 3 minutes for our judges.

Do we start? Oh, hi everybody. I'm Alan, uh, founder of Covenant, DeFi's liquid credit layer. And when we think about credit, I and it's a very simplified view top down. You can think of liquidity first credits and collateral first credit.

Liquidity first is you actually have to deposit USDC, USDT, maybe use the utilization of that pool to determine your yields or whatnot, but then that's used to either give out loans, margin loans, or if you go to Traty, use it for other types of credit. A collateral first is where you don't have to deposit USDC USDT. You literally are creating a fully collateralized synthetic stable coin backed by that collateral that gives you yield. Uh Maker Sky would be one of the first versions of that where you issuing a stable coin. Pendle is doing that.

Their PPT token is a yield token fully collateralized. FX protocol is another example. It's not exactly a yield token, but there's a senior trans that has lower volatility. And this is actually how banks work. Banks don't work by taking deposit and lending it out.

They actually work by minting money uh through the loans that they create. So it's collateral first. Um we are basically creating a system that uh is permissionless uh structured product that go collateral first. Effectively any collateral uh can be used to mint leverage tokens and yield tokens fully backed and where the liquidity itself comes from the collateral and where the and so before I move on an example of this is a collateral could be volatile collateral like ETH uh or could be sort of like more stable collaterals like SUSD where you actually have a collateral with yield. Um so the leverage token effectively is giving you exposure to the base asset but with leverage and they pay funding to the yield coin or token and the yield coin or token is effectively the senior trench fully backed.

uh in our case it's a zero coupon bond very similar to Pendle very similar to element five and whatnot but perpetual so there's no sort of maturity you don't have to sort of continuously create new markets is once the market is created it goes on forever but it has this dynamic that the price of that coin dictates the interest rate of that coin uh and obviously it's earning funding from the leverage coins uh in a very capital efficient manner like if the leverage coins are paying $10 the yield coins are getting $10. uh and for this we basically using and I think you were mentioning uh concentrated liquidity we are using sort of like a similar cons liquidity as unis swap v3 but but it's a in it's instead of a concave curve it's a convex curve instead of we put two existing tokens as liquidity and you can then swap them we effectively just put the collateral the value of the collateral as your liquidity and then you can swap the value of existing yield coins for the value of leverage coins and what you get is a very simple system. You can launch these markets and this will be sort of permissionless. you need an external oracle. Uh but effectively the more people demand leverage coins uh the ratio of leverage versus yield coins goes changing and as in a unis swap market the price of that market goes changing and so what happens is the price of debt goes going up as LTV goes up and the APY of that debt goes going down.

So you can think of it as in a it's a utilization of of of yield but there's no price difference. In this is a market where there is price difference. It's like sort of a short-term bond sort of credit where again you're not using USDC USDT. You're just basically using the collateral itself as liquidity. Um we are about to go live on Monet next week.

We've been on test net for a couple of weeks. We uh just finished our audits and here's an example of five different markets. Uh these are very monet specific. The first three are LSD uh tokens that have yield and the the bonds if you will. The yield is a denominated yield coin is denominated in mon itself.

So those markets are closer to pendal if you will right like the leverage coin is uh an insurance layer tokenized insurance layer you could call it or leveraged points whatnot. The yield coin is basically the sort of like a senior trench where you can go in and effectively you're pricing the yield of the overall underlying collateral and you also have the ability to lock in rates uh given the duration of these of these bonds. Um or you can go to more volatile uh collateral like in this case BTC and here it's a bit of a lower leverage target but same thing you're basically creating effectively stable coins with yield backed by different collaterals. um the interface itself than uh from the perspective of the user just swapping. I want to swap uh collateral for a leveraged exposure or I want to swap collateral for a stable coin backed by that initial collateral that has yield and the supply demand dictates the yield.

Uh so you can just be passive get yield, you can be passive, get leverage or you can be a trader and go back and forth and and see how that takes you. Um so basically summary covenant powers liquid leverage and yield markets backed by any collateral assets and that's my content. Thanks.

Super on time. Awesome. Uh judges this is your cue to ask questions.

Thank you for the speech. uh I wanted to ask you how peg is achieved and have you run any stress tests on this.

Uh sorry the first part of the question is how

peg is achieved.

How peg?

Yes,

there is no peg.

The price goes fluctuating around. Uh but so effectively you have an external oracle if it's a volatile collateral it's it gets closer to a perpetual dex a per so we using pith pull uh values for example the BTC one and what happens is if the debt is at par like if like if like zero interest uh then from a market perspective you could swap the debt for the collateral at the price uh of the external oracle but then depending on supply and demand you basically go up and down on that price so there's no peg but you go up and down on that price as dictated by this market itself so it's basically a market around the Oracle price if you will thank you

welcome

any other questions

uh two bar question what made you chose to deploy and launch at first and could you maybe describe describe the risk profile one is exposed to

the second one sorry

the risk profile one takes in account when you're exposed to your products

okay so first one monet is is more I know the ecosystem uh and is a bit more uh tactical when launching as a new protocol you want to sort of like have a bit of the marketing spend of the underlying uh chain if you will but we are not uh we going to then expand to other other chains um we have a bit of a this can work for multiple markets, more volatile or less volatile collaterals, but we have a hypothesis that actually is less volatile collaterals that will ultimately be the product market fit. So getting other yieldbearing but highly risk uh tokenized strategies as collateral and then basically providing an insurance layer and and a senior tranch that you can lock in rates. Um in terms of how do I think about risk I don't these are just permissionless markets anybody can create them it's trenched anybody can trench them with a target and I can talk a little bit about that but effectively supply and demand of like do I want leverage or do I want the debt dictates the interest rate and that's going to effectively uh coalesce around an LTV and a yield for that given that collateral

15 seconds left any other question.

How do you facilitate liquidations?

I'm sorry.

How would you facilitate liquidations of the leverage tokens?

There are no liquidations. Uh it's basically equity and debt. If the value of the collateral is going down, the value of the equity is going down. And so effectively, there's an incentive at that point given price. So you can redeem the underlying position.

Everything's always

But there is

Thank you so much.

Yes. Everybody please give it up for Alan and Covenant.

Next up, we have Dio from Yield Nest. Once again, the judges also only have three minutes. Uh so we'll keep the questions like brief and also I request the founders to be brief in in the answers. Go on.

Thank you. And uh hello Argentina. Amazing to uh uh to be here and uh thank you for giving me the opportunity uh to pitch for everybody uh here. Uh I'm going to present today uh uh stack a product from uh from Yield Nest uh merging real world stability with DeFi efficiency. So uh first before I dive into stack a little bit about Yield Nest, we've been live for over a year now.

We have around uh more than $60 million in TVL. uh and we built uh uh we are D5 structure product platform that brings pine collateral uh onchain and we always try to design our like derivative products in uh one token and make all our accounting uh onchain uh we uh plug into defy yield hardware yield restaking yield and we design our vault so they can't be evil that safe transaction guard fully onchain accounting and all transparent uh transparent flows but there's a bit of uh a problem. Uh recently we have launched our new RWA asset Y RWAX. Uh it has a one-year coupon. So real world assets are great because they give us finally the stable and reliable yields that DeFi needs to actually build a thriving and more stable industry.

Uh real world assets are backed by you know tangible assets. Uh they have scalable yield sources so we can actually inject uh much more yield uh uh much more capital into it. disadvantages. These real assets are locked up mostly for a year. They're centralized and offchain and there's fewer exit options.

Then on decentralized uh uh finance sites we have also our wine and USDX derivative uh give you uh like lowrisisk lowrisk defi uh balancing over different lending positions uh in a way that it's uh more safe than uh if you would go into stream finance or some other non uh safe uh D5 vaults. Um there's uh in DeFi we have higher yields there's decentralized on onchain mostly there's no lockup ops it's highly liquid and there's like many exit options and composability the disadvantages are there yields are volatile on clear yield source and it's less scalable so that's why we introduce techfolds where we merge best of defi and rwas into a single token uh where we have lowest defi and uh lowest rba yields auto combine autoco compounding all into one token and we can achieve around 10 to 20% uh APY with this combining W RDX and W UDX and a little bit more about W RVX what is it well we basically bring uh uh private credit on chain it's backed by Australian real estate uh I have a background in RWA even you before I started Yield Nest uh I did some work maker I did some work with other RWA projects and afterwards I started Yield Nest and I have connections in Australia work with a developer that basically has a bunch of real estate and he wants to uh borrow against his completed projects uh and we bring that on chain. Well, the problem is it's locked up for a year. So the asset itself is locked up for a year so that the the market doesn't really like that and we need to make that a little bit more reflexive. And that's why I thought hm let's wrap this in the stack fold which is basically um uh here the user comes in with USC we wrap that into the stack fold.

There's an ERC 462C compliant fold where the UC UCCC gets injected and then we have like different instruments and D5 that we can use because the the we kind of keep the balance like 50/50. For example, we can put it in a liquidity pool. We can put it in a pendle or spectra markets and we can kind of play around with that in these markets so that we can create more volatility or reflexivity for these assets. Then we auto compound these yields into number go up. So then the stack fold token goes up.

If a user wants to redeem, he can always redeem, but there's going to be a little bit of a haircut into that, right? And he can always redeem in the wine USDX asset. Then when RWX matures one year later, the whole like system kind of rebalances itself where the people that were like, okay, I can save for a year, they get the the they can just exit in that liquidity event. And the people that decide to exit a bit earlier for whatever reason they can do so but there will be a uh uh uh there will be like slippage and all that slippage will flow back into the vault itself creating this like reflexivity. Little bit about the risk and uh risk assumption mitigations.

Yeah, the RDBS is secured asset independently valued uh the duration. We manage the duration risk by basically starting off like 50/50 and then it imbalances over time the more like search there comes and the the slippage flows back into the vault. Uh the smart contracts it's built on the max vault architecture something we built inhouse. It's a new vault architecture where we design um we took our learnings from uh from from uh kinks in the in the D5 space like year and other vaults and we designed it so that we have a little bit more flexibility. uh if there's ever a DPAC the BX token is then available for the this case the issue in Australia where they can repay the debt and and rebalance the pool and even if they take a long time for that or it takes them uh some time to uh get the capital ready uh it will eventually if it matures it will always be better for the people that stay into the into the folds.

Uh yeah that does it. We're looking for partners to boost the liquidity for the stack folds and uh I want to make stack the standard for RWA and DeFi yields in DeFi. Thank you.

Fantastic judges.

Uh you mentioned a couple times that there's a slippage or a haircut on early redemptions. Can you give more specific figures on how punitive that is?

Yes. Um, can I go back to slides or

Yeah, can we get the slides back again?

So, it's it's basically what we're doing. So, it's those yield curves are very complex to to create. So, you could say uh if it's in a in a liquidity pool when somebody withdraws, there is like a yield curve with a search charge. If in the let's say there's $10 million, if a person uh comes uh in and just redeems $100, the slippage is going to be very low. when everything comes at one, the slippage increases as a search charge.

And then if there's no uh if the uh the issue doesn't rebalance it, the it could be indeed that the slippage or the redemption fee goes up to a high percentage, the people that are still wanting to take that haircut, they can if they want to. The people that want to stay, they can stay into the vault, right? So it kind of creates this mechanism of uh uh if people panic in the vault, the people that stay calm will make more money and the people that that don't stay calm and don't maybe not trust the RWA collateral, they can uh they take the haircut. Um there's also a way to do a balanced draw. So let's say the balance sheet start off 50/50.

50% via USDX, 50% vine rbax. Then if there is an imbalance, let's say it goes to 60 or 70%, you could say I want to do a balance withdraw. Then you get the RDB RBA asset and the USD asset and the RDB asset will maturity uh will be uh uh it will be redeemable for USDC. Yeah,

if there's any feedback or uh any comments that I just want to make, we have one minute. you guys can still do that.

I I have a question. Um given that um as part of the underlying design of the protocol LPS need to make longerterm liquidity commitments and given the very dynamic nature of you know DeFi and and crypto and kind of no one can kind of really know how the market's going to behave in you know over the medium to longer term.

Yes. uh in my experience LPS tend to discount the yield that they're earning uh especially over longerterm sort of maturity dates. How do you address kind of some of these friction points uh because by having these longerterm maturity dates um you from an LP's point of view they demand higher APRs.

Yes. So to make these longerterm commitments which in return will increase your cost of

capital 10 seconds.

Okay. Uh so so so how do you make it I guess more attractive for LPS to come in and make these longer term liquidity

commits. Yeah. So basically we we uh start off with liquidity incentive campaign in the beginning. So you kind of drip the yield up front or the incentives up front. You attract the liquidity.

The people that stay they they can stay in the vault and the people that withdraw. Once you get the the game the going uh the game will play out. Uh, and also 80% a lot of

users in DeFi are bots. So it kind of also plays into the

Yeah, that times out.

Thank you so much.

Can we please give it up for the team?

We'll have Martin uh from USPD next.

Hello everyone. My name is Martin and I'm the founder of uh USPD. Over 300 billion are today in stable coins, but uh the largest stable coin is still based on the principle of trust me pro with Tedda. And the second largest one uh these are the wrong slides. Um the second largest one circles USDC uh is also highly dependent on banks and traditional finance in order to work.

Um even the cryptonative Athena USD has the problem that it is still centralized and custodial and the supposedly decentralized maker die has become a rapper for USDC primarily. So 76% of the reserves backing D are backed by USDC. So stable coins today are unfortunately still centralized, opaque and highly dependent on banks to work. A decentralized economy cannot be built on a corrupted base layer. And that's why I'm building USBD, an onchain proof of reserves stable coin.

USBD is backed by 100% 125% to be precise onchain ether reserves and it can be minted by anyone simply by sending collateral into a smart contract. The smart contract keeps the collateral in the form of staked ETH and of course it can also be redeemed from the smart contract. M this whole process is decentralized, permissionless and transparent. However, USBD is a stable coin and the collateral is kept in a volatile form in the form of staked ETH. So, our ecosystem requires a second player and that second players are decentralized stabilizers which have one job and this is to keep the dollar value of the collateral that's pecked on on chain constant um by opening up a perpetual short future.

And stabilizers do this with their own money. So they pledge 25% extra collateral on chain which they lock into the smart contract as a volatility buffer and they use another 25% to build up a perpetual future short position and create a delta neutral position with that. So stabilizers deploy $50 out of their own pocket for every $100 that a user mints. And they are not doing this because they are a charity but they are doing this because they make 25% APY from funding fees. This is how a delta neutral position works.

A stabilizer simultaneously $125 long via the onchain collateral and $125 short ETH via a perpetual future. If Ether goes up in price, it means that the onchain collateral is worth more and they can use the excess collateral to cover their short losses. If the price of Ether goes down, that means their short is in profit and they can use the short profits to top the onchain collateral back up to 125%. So no matter what the price of ETH does, there is always $125 backing $100 of USPD. ETH staking generates 3% yields and this yield is passed on uh completely to the holders of USPD.

Uh funding fees we calculate in our economic models with roughly 10% annually. They generate 10% APY for the stabilizers. But stabilizers can uh leverage their position up because they don't need $125 in order to hedge $125 worth of ETH. They only need $50. So calculated on the capital that they deploy, they actually generate not 10% annually, but they generate 25% annually.

This is also our business model. So we will operate a stabilizer, one of many. Um, and uh to break the economics down, for every $100 of USPD that are minted, the stabilizers deploy $50 out of their own pocket as extra collateral uh and absorb the volatility and they generate around $12.5 with that in annual revenue. So calculated on the capital that they deploy, this is a 25% uh return.

The upper issuance limit for USBD since this is a decentralized stable coin increases only in lock step with capital that stabilizers are willing to deploy. So you cannot mint USBD infinitely but only if a stabilizer is willing to absorb the volatility of ETH for the USBD that you want to mint. Um so how does this scale? It will scale via staking via onchain staking. So there will be a staked version of USBD and that st version of USBD uh will generate the entire funding fees.

So the the entire basis trade of around 10% APY for the stakers and it will grow in D5 via money markets there because it has a very attractive native yield. So you can think of staked USPD is tokenized funding fees at the end of the day and USBD scales its stabilizer via ST USPD. So this is the way we scale our stabilizer. USBD is the Swiss bank account in cyerspace. It has transparent reserves in real time that anyone can audit.

Um it is permissionless in its conversion to and from ether at any time. So no middleman, no custodians. Um it has 3% native yield via staked ETH. We use staked ETH as collateral and we pass on 100% of the yield to the holders of USBD. It cannot be frozen, censored or seized.

And this is very important I think because all the centralized stable coin designs are freezable on an address level and it has zero exposure to banks and trad. The team consists of myself. has a background in math and quant finance. Um, of Andreas who was a managing director at quantitatively fetch fund and is a PhD in computer science and of Thomas who is a well-known smart contract uh designer and solidity expert. We have raised a $ 1.

5 million precede led by Draper Associates. Um, we are live in public beta at USPD.io. Uh, we're looking for LPS for staked USBD. We already have 350K committed and are about to launch stake USBD and we're raising a $5 million series seat uh of priced equity.

Thanks for your attention.

3 minutes judges. You can see the timer in front of you. Go.

Really neat design. Curious what happens when you adjust the collateral ratio up or down. How does the APY change for the various user groups? Uh you mean the extra collateral dstabiliz

125% for depositors? Yeah. Uh

there is no plan to adjust it down anytime soon. Um actually we're at the moment operating with more than uh 25% extra collateral for our stabilizer at least. But other stabilizers are free to do whatever they want. But stabilizers run into risk of being liquidated as soon as their onchain collateral drops below 25%. So there's plenty of time to liquidate a stabilizer.

I mean, I guess the problem is if ETH collapses very quickly, your collateral would still be inadequate, right? Like the maker Dow issue. Um, when they had that one day drop, what am I missing?

There's a mechanism to reduce the market capitalization of USPD if a stabilizer goes bad. Um, so yes, you're right. If ether drops quickly um that in our case it would be a more than a 20% drop before anyone can

so if it drops 50% which I don't think is terribly possible over like a one or two day period

okay that's that's perfectly fine yeah uh if it's not from one block to the other it's perfectly fine um because there is a mechanism to liquidate a stabilizer that's gone bad so the moment a stabilizer drops uh over collateral onchain drops below 25% they are technically in liquidation liquidation means that the let's say the stabilizer backed thousand USPD that means that there is now a bounty uh for the next thousand USBD that are redeemed from the smart contract of 5%. So you can via flash loan hypothetically you just borrow uh ETH you mean thousand USBD you uh burn it with the smart contract and you get $,50 uh dollars out. So the market capitalization at the end of the day is then reduced by the bad amount and the stabilizer loses everything. So they lose their 25% and out of their 25 the bounty is taken to pay out the arbitrarers that reduce the market capitalization of USBD in that case.

Great presentation. Uh you mentioned that when one mints your stable coin you need two different stakeholders to sort of partake the LP and the stabilizer. What happens in an instance where the LPS won't want to redeem a large percentage of the stable coin supply?

Um, you mean the LPS as in the the users who mint USBD if they want to redeem?

Correct. How would that effect?

They can redeem at any time. So if you hold USBD, you just invoke a smart contract call and you you redeem and and you have reduced the market capitalization of USD by what you have held before. Um, if a stabilizer wants to redeem, they can only redeem if they uh simultaneously uh burn the amount that they have backed. So, if I'm a stabilizer, I back a,000 USPD in circulation. I cannot just walk out.

Uh, but I can reduce the market capitalization by $1,000 and burn against my own stabilizer state.

Thank you.

Everybody, can you please cheer up Martin and the USBD team? NEXT UP we have Marco from Tapier Protocol.

Oh, six minutes. Go.

Thank you. Hey everyone. Uh, I'm Marco. I'm the founder of the Pure Protocol and uh, yeah, it's a risk protection marketplace for high yield D5 products and stable coins. Now uh since 2020 uh the loss on uh from stable coins and other pegged assets dagging uh is north of 1 billion and it doesn't include US Luna coin and this is basically the liquidation losses and uh other related losses to the uh to the dex.

So the problem is still quite big. we have seen recently you know uh say deeps are not a problem until they are uh as we have seen with XUSD. Now the current opportunity and the future opportunity what basically what markets are we going for is the high yield protocols uh first and uh some lower yields stable coin protocols and with the highest protocols it makes a lot of sense because if if there is a lot of yield to go around it makes sense to derisk the investment and still get a very good return on your investment. Um the future opportunity we expect the the whole space around securing risk in DeFi to grow as more players from Treadfi are coming in and uh similar marketing threadfi credit default swaps. It's not apples to apples comparison but uh just uh for but it is also a similar kind of product protecting default swaps is $9 trillion market in threadfy.

So now uh how it's built how does it work the the mechanism is very quite simple. So we take some uh base yield you can think of pendal you can think of other uh defy yields in this example it's 15% and we split it into two and we have a protection buyer and he sacrifices some portion of the yield and uh basically gets a token that is already deep protected and in in this example he'll get 12 instead of 15%. and deal buyer the same thing but he's taking on more risk so he needs to be paid for that so he's getting 18%. Okay. Oh sorry for that just to go quickly through an example.

Uh if there is no DPEG obviously the the payouts are going to be the same as I've explained 12 or 18%. If there is a DPEG, however, uh Bob will still get 12%. So, not just the principal, but also the the basically the high watermark price that that the asset got before the D-pack. And Sean is taking double the hit from the D-pack. So, in this example, the DPEG is 5%.

So, he's taking 10% hit. Now, uh I have prepared some special slides here more focused on the on the mechanism itself. So as you can imagine we have the mechanism is we have some token and we split it into two tokens. Uh one is the yields boosted part the other is the dpack protected part and you can think of tranching. So if there is any dpek it goes the the losses are paid out from the junior tranch which is the yield boosted asset.

Now uh we have kind of a risk trma of different protocols that that secure risk in crypto. Uh you you can pick two out of three uh but you can get around the third one a little bit. But uh basically either you have some underwriter risk and yield preservation or you have no underwriter and full coverage or you have yield preservation and full coverage. So uh let me go to the next slide and and see basically what what is the what risks are you undergoing? What are the trade-off?

Uh so the protocol risks all the risks of the underlying protocols are covered. Obviously there is still a smart contract risk of the taper protocol itself but basically you can think of stacked protocols as a pendle. So, so if you have a pendle token, there is a risk of pendal itself. There is a risk of the underlying token and you can think of you could have like more protocols stacked one under each other and that's all covered. Uh the resolution risk it's fully automatic.

It's fully on chain. Uh there is no committee that decides anything and loss coverage this is up to 50%. And uh this is because we want to preserve capital efficiency. That was what we focus at. So the the basically the tokens give you the the claim on the underlying.

If the underlying is worthless, your claim will be worthless. We kind of go around this by uh not leveraging by auctioning out the collateral. But yeah uh if this is the worst case scenario if the collateral cannot be auctioned out in time uh you can take some losses on the even if you have the deep protected token and this is how basically for us it makes sense because in this way we can ensure full capital efficiency. Okay, this is the perhaps for the questions more about how it works in depth and I wanted to say a few more words on the on the yields. So we take success fee and with

Okay. Uh judges, you have to pick one star team. Ask the questions.

Can you describe the yields a little bit more?

Yeah. Uh so the yields how protocol is making yields. So there's a success fee basically. Um the yield protocols are making some yield. We take 5% I mean not we the protocol takes 5% uh from the yield that is generated and half a percent withdrawal fee and then basically how that is translated to the the top token price.

It's there is automatic buyback and burn mechanism that automatically uh buys back the tap your tokens with with 50% basically of the revenue gained uh it will buy back the the token and burn it. So very direct value transfer.

How exactly does the um liquidation mechanism work and settlement if underlying assets are done 50% or more?

Yeah. So how that would work uh we have some kind of a threshold that if it's hit for example if if the assets depect under 80% will start uh not will start but will auction off the collateral of the underlying. So that's so there is some threshold if it's hit will basically uh run the auction. What's the typical depth for DPEGs? Like does it typically get to 50%, is there uh an arbitrary limit there or could you change that number?

Like how how deep do

we are also conscious of this that this is potentially problematic. So we would not on board like just any type of collateral that is completely wacky like algo stables and stuff like that. uh with most things it it makes sense because with staking protocols or regular stable coins even if there is some kind of a a problem if there there usually you wouldn't expect larger than 50% DPEG obviously it can happen as we have seen with XUSD but it would not pass like our uh screening in the first place makes sense That's it.

Yep. All set.

Okay, everyone. That was Marco and Tapia Protocol. Give it up for him. Thank you, Marco. Next up, we have Ilia from LTV Protocol.

Ilia, six minutes.

Thanks.

Go.

Hey everybody. Uh, yeah, my name is Ilia. I'm a CEO and co-founder of the LTV protocol. And uh, yeah, what the LT LTV protocol is actually is. So, we are building the first ever fully creatorless leverage tokenized vaults that anybody can deploy on top of any pair of tokens on top of any leverage source.

And uh, I'm also proud to say that the first vault, our pilot vault was deployed like uh, literally a week ago. It's the Lido or Ethereum X12 leverage on our V3. Uh we already have uh more than 12 millions in leverage TVL. The current uh strategy rewards is like uh a little bit more than 8% of the APY on Ethereum and plus our incentives and even with 7 days in mainet we already top 65 borrower on the A. Um now a bit about how it works.

So uh when I say creatorless leverage WS uh we need to uh I mean that there is no creator involved in management uh managing the leverage position. Uh to manage the leverage position we basically need to always keep some target LTV some target leverage and this equation is basically our target LTV equation that is similar to the unis swap constant product formula keeps in the heart of our uh mass model which is basically described in our paper that we published a year ago. Uh when I say we, I mean this uh beautiful team of uh mass Olympic winners, Xav engineers, uh our CTOs, X Metal Labs, uh the guy behind the Zikas and on the security part uh we are partner up with the Auxoria who basically audited both AA and Lido and we finished the security audit like two or three weeks ago without any critical issues only one major which is already resolved. Uh so now that we have like the code to deploy these uh permissionless leverage ws where these ws will come from to answer this question we did like a big research on the market opportunities across the uh seven different chains. We analyzed possible leverage ws for the yield strategies and there are two big numbers uh coming from this research is that there are more than 130 volts that are possible to deploy with more than 18 billions uh in possible liquidity for these vaults.

So as we see like the market is pretty big. Uh how we get the users on this market? Uh some of the well one part of the question is that as a part of our uh go to market strategy we launched the utility NFT. There are 42 uh NFT campaign which we allocate to our early supporters. There are more than uh 200 NFTs is already minted like the average balance of the holder more than 100k.

And uh this NFT is basically uh we use it to um to get the early access uh for our uh users to our uh new walls and to give them the 42% uh point boost and uh I also want to share a bit about the LTV token and u how we can with LTV token how we can uh help our users uh to assess the risks of the leverage world uh more precisely. So uh our token uh is supposed to uh be staked into specific vault. By staking it uh the stakers will get some uh part of the uh of the fees generated by the vault. Uh by the way we generate uh 20% performance fee and some auction fee uh additional but these stakers they basically can be slashed in case of the malicious action of the third party. So in case the lending protocol uh behaves some in some malicious way or the oracle the stakers can be slashed and by doing this we are basically create this uh native market based like a risk scoring system and also we create direct correlation between the worldl and the token market cap and uh yeah right now as we already on the mainet we are raising a seed round 1.

5 million and also like we are great to discuss the possible LPD deals uh both for the next vaults and for already deployed. It looks like I'm uh 2 minutes earlier. So that will be more times for the questions.

Fantastic. I like that you made a very specific ask. Um questions, comments, feedback, judges. Uh can you tell a little bit more about uh how auctions are protected from me? Uh so basically it's uh yeah it's uh like a Dutch auction which is uh so we uh we create some pool of the incentives uh which will be put into the price of the auction to exchange price to incentivize like the auction executor right and we uh like unlock this in incentives uh gradually uh with the with the block time with like different uh setups for different walls obviously but yeah so yeah it's open auction uh anybody can execute Uh and uh yeah, just the price is going up uh from block to block.

So everybody has the incentive to to go first. And uh yeah, no no MV bot can like uh you know jump and uh sandwich this additional reward because it's unlocked just from block to block.

Um how would you differentiate your leverage vault offering from existing offerings in the market like we learn their leverage vault sort of earn section? Sure. So uh that's why I said create so many times. Uh all the existing solutions for to give you a leverage position. They are basically either like require some manual creation for each user when you decide like how much leverage do you want to have like when to rebalance the position etc.

or they have like the creator or the admin manager like the back end whatever which is like centralizedly from somewhere offchain decides how to execute the strategy uh what the strategy will be like can decide to I don't know rebalance from 10x to 1x uh at some point uh in our case we don't have anything like this at all so like the system is fully on the smart contracts

are you going to expand beyond a to morpho or other platforms and if not why

uh it's just like the private vault so we decided to go with a is a big biggest liquidity pool we already have like the connectors to both a and morpho and we are planning to expand it like in the nearest time so yeah we we planning to cover like as much uh EVM chains as possible as much like possible lending connectors yeah and it will be pretty quick because the architecture is modular so we just like plug in the new connector and Yeah. Do you want to ask anything to the judges?

Does anybody interested in making LP deal?

Uh, happy to talk about it after the presentation.

Sounds great.

Um, I I have a follow-up question. I'm sure you're familiar with protocols like Treehouse that, you know, create these leverage looping strategies and tokenize them. so that you can enter these leverage loop positions in the form of a sort of leverage loop token.

Um I guess who would you define as kind of the closest competitor of yours on the market today?

So like I think almost all of platforms you mentioned is like kind of competitor to us. Uh I think in terms of like first vault we can define uh the instant up light with two vault for Ethereum but like again this is all vaults that are created. Uh so in that way um we will not thinking about them as a like direct competitors because they are uh basically providing the created defy strategies overall and they can switch to different strategies over the time. what we are doing we are providing this like new kind of primitive like the permissionless leverage token but yeah you're right that uh right now some of them doing like kind of a similar strategy but with the creation yeah

thank you and then one last follow-up question and that is

SC we are on time I'm sorry yeah

no worries

thank you Ilia good job can we give it up for SV protocol guys we also gave Ilia one extra minute to talk to the judges because he was uh one before for the pitch so founder If you're going to keep your pitch short, we might give you extra time to talk to the judges. Okay. Uh, next one is Johans from Frankencoin.

Hello everyone. Thank you so much.

Six minutes. Go.

Hello. Yeah, I'm Johannes and uh I'm going to talk to you about some really cool stuff. Do you know that 99.8% of the stable liquid market cap is currently in US dollars? It's no bueno.

Um this chart you see here is the last 50 years or so of the dollar against the Swiss Frank. Yeah, the dollar is not a really stable currency, is it? Um and that's why we need a Swiss Frank stable coin and that's really what we built. Um there's lots of research kind of supporting that as well. Um you know there was for example this French university it was beginning of this year and they were looking into Bitcoin Bitcoin as a safe heaven against geopolitical risk and what they found out is oh yeah Bitcoin is a very good hedge but so is the Swiss Frank and um that's why we built Frankcoin and and you know what is frankcoin frankcoin is a fully decentralized um Swiss Frank stable coin and there's a bunch of really interesting attribute utes on why it is built this way and I'm going to share those with you today and also that uh has a bunch of cool attributes and functions what you can do with that.

Now on a very basic level um this the Frankorn is a CDP right it's a CDP it's a borrowing uh platform you provide some collateral and you uh borrow Swiss Frank or CCHF in turn now CDPs have one big problem and that is capital efficiency you need over culturalization however the Swiss Frank is a bit of a special case and I actually have a book about that and there's a lot of things happening in here I will give it to someone in the audience at the end. So I'll put it here for now. Um but basically the Switzerland has a combination of two very specific environments. One, how does Tether make money? How does Circle make money, right?

You you you issue a stable coin and uh you get the the risk-free yield in between that it's a super lucrative business model. In Switzerland, we have negative interest rates. Doesn't work. You can't really do a business. At the same time, the regulator in Switzerland uh has decided last year that if you accept money from someone and someone has a claim on that money, you're a bank in a bank license, okay?

You know, if you're stable issuer and you're the size of tether or circle, you can get a bank license. It's expensive, but it's possible. They also said that anyone who has that claim against you is your client needs to be KYC AML um and onboarded as a client. And that in fact led to what is what we're seeing right now. The fact that you cannot transfer your stable coins anymore.

And there were a bunch of Swiss Frank stable coins, you know, the CD DCHF, the XCHF by Bitcoin Swiss, they basically all died because of of this regulation. So this puts Frankcoin as this very special environment where um the only real way you can do a Swiss Frank stable coin is in the decentralized form. That's only one part of it. The second part is how Frank coin is built. I mean if you if you look at CDPs most of them they they travel back uh historic you know towards make that was is the great grandfather of of many of those protocols.

You have liquid which is a kind of a different approach. Francoin is inspired by liquidity. Thank you so much. I think uh there's some liquidity people here. Thank thanks a lot for that.

But it has one extremely big property. It is oracle. You don't need an external price oracle to be able to have a collateral. Now, how this works is it has a built-in price finding mechanism. It has um a builtin capital formation mechanism and it is slow instead of fast.

We don't have time to go more in depth here, but what this basically means is that you can now use collaterals which have no current deep liquid markets as collateralss. They only need to be eventually liquid because of it's this capital information process and this opens up the universe of um collaterals you can use tremendously. For example, I have two examples here. You know, you have the B and the Q. Those are both uh Swiss tokenized or companies which have their equity issues as tokens.

Now why is this interesting? If you look at a CDP um CDPs are per se very secure instruments. They're very stable. They have one big problem though apart from the capital efficiency that is if you have huge correlations in a market if you have crashes with correlations. So you need to have buffers.

Now how do you solve that? You solve it by every uncorrelated assets. crypto assets tend to be correlated and by in being able to introduce like smaller uncorrelated assets such as stocks or RWAs natively which currently don't have deep liquid markets you know where I'm going um that makes the whole system a lot more secure. So to sum this up um you know Francoin is a decentralized Swiss Frank stable coin it is fully live since the end of 2023. Um it's the largest Swiss Frank stable coin, but it's also one of the largest non-UD non-UR stable coins.

Actually, second largest non-UD, non- US stable coin uh currently out there with um 29 million TVL. It is oracle free, allows you to have a wide universe of economically viable uh collaterals and you know, I didn't go into that very deep. Now it is managed uh again fully trustlessly completely decentralized with the so-called FPS the Frankin pool share which is a governance token that also has part participates directly in the system profit and losses. So you as investors you can you know have two ways to participate you can or three ways actually you can hold Swiss Franks which uh you know

you have 8 seconds um you have the FPS and you have the LPing. Thank you. Three minutes judges.

Nice work. Um, curious. Most CDP based stable coins are byproducts of the demand for leverage where users will loop several times in order to get more exposure. Um, what is the advantage for users depositing into Frankencoin? I think the Swiss Frank value prop is very appealing.

What is uh on the other side for those users?

I mean that's it's a very good point, right? It's it can be two sides. is going to be either you want to have and this is what we're seeing right now a lot you want to have your debts in Swiss Franks might be because you need your spending in Swiss Franks right you are you want to pay your taxes in Swiss Franks and that is a pretty large market it's one insight and the other one is really the the um ability to have a wider universe of of collaterals and and just by having this right that is um something which you will not find anywhere else in the market

thank How do you ensure the peg?

How you ensure the peg? Um, short-term or long-term? I mean, short-term it's market making. It's market forces, right? Uh, there's a bunch of incentives allowing that.

Long-term, it's a CDP. Downwards, I mean, I'm going very quick. Downwards is traditionally you have an arbitrage opportunity if it's a DEC towards the downside. Uh, on the upside, we have bridges, uh, which allows you to also arbitrage when you have a deep towards the upside. I fully agree with you that Swiss Frank is one of the best if not the best fiat currency to hold.

Um and uh so I think I would I would say it makes a lot of sense for people to hold it but still like uh what would be your plan to increase the market cap here and why you know have why why doesn't this exist already?

I mean it exists right as you see it exists. It's I think it's a function of um of time right it's this when you when you look at holding it you know risk profile is Lindy and size is what what all people are looking at like you know how long does a project exist what is your market cap now many um stable coin projects fake this one side by basically paying LPS to just blow up the the market value and that is I we see a very extractive value extractive kind of approach we don't do that um so all the growth we see here is organic I And we we are picking up quite a bit. We just launched uh two months ago with with Gnosis um the integration with Nosis Pay and the ability to kind of hold your Swiss Franks and get a yield on it um and and kind of spend with with your Visa card and that had shown us a massive pick up in in volumes. So it's it's use cases it's it's there. It's just a function of time and Lindy really.

I think we have one more question time if I'm very quick.

You've been live since 2023. Like what's changing now that you're going to get more traction?

Um it's been a bit of a test project to to for like I I joined it was been done as a PhD thesis. Uh I joined beginning of this year.

Okay. Impressive. Great job. WANTS THE BOOK.

I gave it to Mark.

Very good. Thanks.

I was about to say that he was carrying Costa's book around. Uh, good job. Okay, next up we have Bar from Stormb. Bar, six minutes. Go.

Hi. Hello everyone. I'm Baram. Today I'm presenting strong bit which is uh we're building a borrowing and lending protocol without liquidations. Uh so without price but dependent Oh sorry.

So, so yeah, the idea of storm is to build a fixedterm lending protocol uh where borrowers can borrow uh without liquidation during the whole duration of the of the loan. Uh the problem we're trying to solve is that currently most defi uh borrowing and lending protocols like a they they want and they need to stay solvent all the time. So they rely on liquidations and uh we know that crypto is very volatile especially on the downside. So when price moves down uh we protocol start liquidate tell them that we get the liquidation cascad and sometime you get caught on we get caught on liquidation cascad because you're not on the laptop and you cannot top up your collateral and end up getting liquidated a very bad price and we're we want to kind of address this problem. So what we want to do is actually like I said build a protocol where uh we match lenders and borrowers and uh the the terms are such as there is uh uh the borrowers cannot be liquidated during the term of the loan.

So and there can only be liquidated after the loan is finished. So we will have predictable liquidations after the loan is finished and avoid gas cuts. And uh what we want to do is actually to shift the risk and to transfer the risk from the protocol level to the lenders. So it's up to the lenders to manage their uh the risk when they when they uh when they lend money to to borrowers. Uh one use case uh can think of is like recently we had the the mega ETH sale uh and suppose you had uh you want to participate and bid and you had like 100k in USDC catch and 30th and the price at that time of EDH was around 4K so it's equivalent to 120K and you wanted to maximize your fill.

So we wanted to bid the max amount which was around 186k. So what you what uh you you could do for example is that you go to a uh and you uh and you put your 30 ETH and you borrow 86K against it. But the way the loan works on a is that uh I think the LTV of ETH is around 80%. So max borrowable amount will be for will be 90 96k and you will have a liquidation price for of ATH or around 3500 83 and unfortunately what happened is that just after the mega ETH sale effectively the ATH price dropped uh uh to 3,300 and then rebounded and if you went that way uh you would have been liquidated but if you go With Storm Bit, what we offer you is that you can uh borrow the 86K during a fixed uh a fixed duration and we promise you that you're not going to get liquidated during the duration of of the loan. Uh the way it works is that uh we have lending managers which create uh lending terms the duration of the terms the API they uh they're charging uh the collateral they're accepting and the strike price uh strike price.

So effectively issuing a loan here is like uh issuing a a short uh uh short put option. So the lenders are uh they're basically selling options to to the borrowers. Uh and why that would work uh why would why we think it will work because uh on the borrower side borrower side they will happy to pay so premium for no liquidation for the no liquidation feature spec especially for a short period of time. I think they would be happy to pay uh a premium over the the borrowing API on other protocols just to be sure uh of for no liquidation while the lenders will be happy to take that risk and manage it actively. Think about it like uh when you go and rent a car.

So you do pay sometimes you pay insurance for the rental company and but since you rent the car only for a short duration like the notional amount you pay in USD is not that much but for the insurance company since they they issue insurance for a lot of customers it makes sense for them to to take that risk and manage it. Uh so uh how how would lend how can lenders manage risks? It's a it's a spectrum. For example, they can just decide to not manage the risk at all. I just be happy with the buying if the collateral drop to certain to the strike price, they will just be happy to to buy that collateral.

So he can think of you can think about it as placing a limit by orders for the collateral while their u uh while their stable coins are are earning yield not just idle on the centralized exchange and on the other other end of spectrum is basically each time they issue a loan they buy a put option and they're they're perfectly hedged as long and they make money as long as the difference between the yield and the premium is positive.

Yeah.

Okay. Thank you.

Uh

judges,

uh yeah, your slides said that borrowers will be happy to play pay a premium for no liquidation risk. Can you give uh some details about what that premium is? Uh you know, is it 2% 3%? What is

uh Okay. Well, suppose that the loan is for two weeks. uh you can actually uh perfectly price loan looking at the price of put options on the option market and since uh and since and if you for example if you take 100 100k loan I think for two weeks you paying two or $250 is fine and if you if you annualize it in in APY it's going to be it's going to be attractive for uh for for uh for uh for lenders and borrowers we pay premium It's like when you go uh like I said when you go to rent a car and you pay insurance for the car rental the insurance in national is not expensive but uh if actually you do the math and you look at probabilities you'd see that you're paying a hefty premium. So that's the idea. Also I think same idea with Airbnbs is if you if you rent Airbnb for just 3 days uh and you rent Airbnb for a month the price per night that you pay for 3 days is higher than the price you pay for a month.

So uh so I guess for shorter terms uh I say that for shorter terms borrowers will be okay paying that premium because in national dollar value it's not that much. One minute do you want to ask the judges anything? Judges, do you want to ask anything?

Oh yeah. Yeah. We're running u an audit for the smart contract and uh we we're going to be live soon. So if you want to join our liquidity program, you can scan the QR code. Happy to take other questions.

What was your motivation for starting this?

Sorry,

there's a lot of pro things you could do. Why why did you want to start this? What's your motivation? Okay. So the motivation of our co-founder is that actually at the end he wants to be able to issue non-colateralized loans because he saw that he saw that in countries like his uh people actually issue non-colaterized loan for example for micro credit etc.

And uh the way to do it uh uh that's that's plans for the future but for now we we saw that I myself wanted to do the mega sale and uh

and I had some extra ETH so to borrow against it I had to go to a but then I I was looking all the time at the ETH price what's my liquidation price etc etc. So, I'm thinking it's like a uh you can you can pay for insurance so that you're not liquidated.

Thank you.

That's it. Yeah,

that was the storm bit team, guys. Um well, I wanted this to be like a real shock tank where, you know, our judges could immediately tell us out of the eight teams which one was their favorite, but unfortunately that is not how it's going to happen here. uh our judges will take time to review all the teams who pitched today and showed us their products and then uh we will let everybody know uh who the star team is and who won this pitch competition on our handles that is stable summit at the rate s a b l e s u mm i t at the rate stable summit uh we'll announce uh the person who won the pitch competition soon enough on the handle and I I I thank all my judges for listening to the product I'm really excited to hear who who the winning team is going to be. Also, uh does might reach out to the team or anybody that they liked uh out of all our founders and and and express an intent uh to LP or uh or invest in them. So founders also please uh keep an eye out uh for the messages.

Uh that's it for tonight. Uh thank you so much judges uh for taking the time uh for this. Uh we have a dinner after this with all the with all our speakers and sponsors. Um at the end I want to thank party action people Zach and Pervine for putting this together. I'm really GLAD I'm really glad I got to be a really small part of this team and and organization.

Thank you. Uh but thank you party action people. Um, thank you to all our stage managers also who've worked so hard to put all of this together. Um, I thought it was just the Germans who were very prompt about time and when the first time my mic was cut off and in the middle of an announcement, I was like, "Okay, this is how it's going to work." Um, also all our um speakers and you guys, you know, uh, most importantly who have stayed till the end.

What? My time is up now. Oh my god. No. Uh can I take two minutes?

Okay, thank you. Um yeah, so I just wanted to say thank you to all of you who stayed till the end uh and made this possible. This was the first time uh we hosted a conference like this outside of the small ones that party action people do. So it really means the world to us that you guys showed up um and showed so much support and love and on behalf of everybody and the organizing team uh we are really grateful and we love you guys. Everyone, uh, this was tables summit and I was your host, Mia.

Thank you so much. Have a good rest of your evening.