Ebisu workshop

cool thank you everybody for coming I yeah I appreciate it I'm going to be talking about the project I'm building IBU we are doing defi on top of Igan lay so um igen lay is all the rage and I hope to educate you guys a little bit about um some of the opportunities and risk presented by it so maybe first show of hands who's familiar with Ian layer and how it works okay and then okay so that that's good context give a brief overview so uh Market context igen lay probably the hottest project on ethereum right now um it enables reaking which is um I can describe it as a Marketplace for ethereum's decentralized trust so if I'm a if I'm a third party protocol and instead of launching my own proof of State Network I can use igen layer to buy Economic Security from the ethereum network um and in return for that I must pay a little bit of rent so uh what that means for users like us is we have some eth I can restake it um I can get incremental yield from these third partyy protocols who are renting e ethereum's decentralized trust at the cost of a little bit more risk that my restake eth will be slashed so igen L is not even Fully live yet none of these reward mechanisms are live none of the slashing is live but we already have 9.1 billion tvl like just from basically January in the in the protocol which is like 17% of the total staked e Supply which is uh insane like um so our Tei has identified an opportunity like there's all this restate collateral now like where are the defi protocols that are going to enable people who have restake their e to like borrow lend against it um some more like bullish thesis on why reaking is going to be huge um e staking yield is adjusted downwards the more like the more that eth that is staked the less rewards e each eth Staker gets so the opportunity cost of not raking increases over time as more of the E Supply gets St um our team has a very strong conviction that IG will very soon like flip Lio for this reason um and like just to give some uh bullish numbers so if igen L increases e staking yield just by like 50 to 75 basis points so right now you can probably get 3.5% on your Stak eth let's say it goes to 4% that's uh 400 million plus plus more rewards that we paid out to eth stakers like that's in like the bare case but in the bull case let's say it increases eth staking yields by 3% that's like 2.7 Bill more yield at the current prices and it will only hopefully go up so bullish igen layer and as we saw with like eth staking there's like liquid staking providers that enable you to have a liquid wrapper to represent your stake position so the same thing is happening in igen layer we're having liquid reaking tokens that enable you to easily restake your eth and then now get this reaking token you can go us in defi so LRT tvl is now at 1.7 million eth so 4.

3 bill um which is 88.3% of Stak eth and like as I as I said slashing nor rewards are Al these are only like fueled by Point speculation so the question we're trying to answer as a protocol is like H what is new about these lrts what novel risk and rewards do they introduce and how can we properly underwrite the risk to introduce them into defi so that we can build like long-term sustainable Capital efficient protocols um just like some a bit of narrative about like how this IG lay defi ecosystem will emerge so we have the settlement layer on the bottom ethereum blockchain and then previously there was like liquid staking tokens on top and then liquid staking defi but now igen layer introduces this new layer where um actively validated services avss are paying out rewards and instead of liquid staking providers it's liquid reaking providers issuing the receipts token and we can have a similar defi ecosystem built on top of this so stable coin which is what we're doing lending for example ion protocol yield strategies uh bribe markets um are all going to emerge on top of this def primitive which is like layer um so what we do we issue a dollar denominated credit against liquid reaking tokens um the value here is you can have a liquid token that you can go use in defi while still owning your LRT as collateral so you can Farm igen layered yields get exposure to igen layer while having a liquid position to go do defi with for the dents in the room you can also Loop leverage so you can use our stable coin to buy more eth restake it more and repeat this process um yeah that's that's the concept it's like a if you're familiar with Prisma or or Libra I don't need to go into the architecture but I'm going to stop talking soon I just want to quickly go over some of like the considerations we're taking in terms of Novel risk introduced by reaking so um just to recap when you stake your eth there's like risk that the validator you're staking to gets slashed but that's like Risk like operators right now eth validators are very professional this risk is almost zero then there's the igen lay reaking risk so igen layer introduces additional slashing conditions onto restake eth so like for um so it's a little bit more risk that your eth will be slashed but in turn you get some ABS rewards then with the lrts themselves you have to trust that their smart contract architecture is sound there's no bugs there's no um vulnerabilities there so there's an additional level of risk that the lrts introduce and then there's risks in created by introducing lrts into defi a lot of these players do not know how to underwrite lrts and thus you can like be left with many scenarios where bad debt can occur so um you can read on we posted a blog post about all of these risks but basically there's two categories of LRT risks the endogeneous risk which is like the risk inherent to LRT is relating to um the LRT is basically operate they have a set of operators that are validating avss so if the avss slash The Operators then the reaking token goes down in value if the operators do something bad they get slashed um supported deposit assets so some lrts only only accept eth some accept lsts if they accept lsts you have to assume the risk of the LST provider which is like Lio or rocket pool or whatever um liquidity how easily can you redeem your LRT for the underlying collateral and smart contract risk associated with LRT platform and these are the exogeneous risks so the risks associated with using lrts in defi oracles like right now only Redstone is supporting um LRT price feeds like they're amazing they're all around here but like only having one centralized Oracle provider uh is like an attack V for Oracle manipulation there's governance risk we don't know what LRT governance tokens will be used for but there can be like collusion um and voting that could pose some risks um a lot of these lrts are integrating like layer zero of or Axel and uh or connect and going cross chain but bridging always introduces more risk and then centralization concerns like if one of the LRT controls the majority of restake eth they have power over the igon layer Network that's centralized so anyways we've built a product that enables you to download your uh deposit your lrts and mint or stable coin in return uh it's it's just a standard like defi UI but um yeah that's that's our product and I I can like what we have live right now is a points Vault so if you want to deposit your lrts feel free to start farming our points uh I think yeah we'll boosted yields to anybody who boosted points to anybody who deposits before we we go Fully live on mainnet but um that's a little bit of a that's a little bit about IBU and how we think about LRT risks I'm happy to chat about any of the things we talked about thank [Applause] you sorry sorry if it was a okay so I think in the stable Summit we were talking about there's like two categories of stable coins transactional stable coins it's meant to be like a store of value that's used to like buy coffee or like crossb payments or something like that and these require like really robust collateral to back it um and really uh really getting rid of all of the risks that could lead to like the stable coin dep pegging the stable coin like losing liquidity um stuff like that because it's the point is transaction store value like we see in countries where there's High inflation people are actually using stable coins to transact and that's one bucket of stable coins but in the Dian land we have another bucket of stable coins which is um I call it like the dollar denominated credit bucket so it's like um St it's stable coin protocol that issue Credit denominated in dollars but the value prop here is not that you're going to transact in this coin the value prop is that you can borrow against the certain collateral that is supported and get this Credit in return um it's different than other borrow lending markets because we don't require like lenders to provide liquidity you bring the collateral and we minty the stable coin um and stable coin is nice because it's easily integratable across defi on like the amm as well as like the lending markets so um yeah the the whole value prop for this category of stable coin is you have exposure to the collateral while having this stable asset that you can go now do defi with um so yeah I think it's a little bit different than the stable coins we're hearing in this Summit it's like a bit of a smaller Market opportunity definitely more for the onchain D gen Capital um but yeah it's definitely a market need like right now there's these reaking tokens what can you do with it like nothing so there needs to be like defi or the market demands defi primitive to be built on top of it which is why uh we're building IU thanks for the question um you can follow our Twitter ior finance and keep keep and or ping me anytime on telegram my name is Ethan Lipman that's my telegram username and I'm happy to answer more questions but yeah just a question is this your first public yeah this is Alpha this is the first public debut of the deposit huh this is Al this is Alpha big Alpha because um you know points um yeah I think the there's a 10 million deposit cap on the on the deposit contract we have couple mil committed that's going to be coming in soon so make sure you get it in quick to miss so you don't miss this points season okay that's enough Shilling thank you guys