Composing New Financial Instruments in DeFi – Nodar Janashia

Hello everyone. I am Nodar Janashia and he is Sahil. We are from DeFi Zap. Let's talk a little bit about some Zaps. First, let's start by taking a look at the current state of DeFi.

You know, DeFi is difficult to use. It requires several transactions to reach certain endpoints in DeFi, which, personally, bothers me. When I know I need to reach an endpoint and I have like three transactions in a row, I have to wait for one to finish before starting the next one. I believe that, because of this, true composability has been little explored in our space. So, what is DeFi Zap?

DeFi Zap helps you deploy capital to exciting DeFi opportunities with one click, abstracting much of the internal transaction processing. For users, it's fast, saves time, and the concepts are easy to understand. For developers, it is very easy to integrate and does not add additional layers of security risk to smart contracts. When you use DeFi Zap, you are minting the exact same liquidity provision or leveraged position tracking tokens . It's the same as using the underlying platforms manually on your own.

So, where did DeFi Zap come from? A brief history about us. I started making DeFi tutorials during the summer. DeFi Zap was never a goal for me. I never thought about creating DeFi Zap when I started making tutorials.

DeFi Zap was born and grew thanks to user feedback. Based on those comments, I created DeFi strategies using using no-code tools. It was like an educational trading simulator, helping users see what returns they would get on certain DeFi positions. It's like trying these products without having to invest real money. From there, we conducted a survey that clearly indicated that we should create DeFi Zaps.

On October 8, I contacted Kyber's Discord channel seeking help. They were organizing a virtual hackathon. It was the perfect opportunity to start. In 20 days, we had our first Zap deployed on the main network. We ended up winning Kyber's virtual hackathon, which obviously gave us the impetus to keep building.

Well, on December 9th we had a beta launch in which we introduced many more Zaps, specifically around funding opportunities on Uniswap. It's one of the things we saw that our users were having trouble with . So, to provide liquidity on Uniswap, you need to come in with two tokens, and we basically abstract away much of the calculations that happen in the background. So far we have deployed 8,500 ETH in DeFi through Zaps, using about 1,600 Zaps, saving end users about 165 hours. These are some interesting starting points for DeFi Zap.

Regarding how it works, at the beginning you start by answering some simple multiple-choice questions . This helps you filter some of the available Zaps, because we realize that as we release more and more Zaps, if you go to the explore all page, there are so many that it becomes difficult to filter them. So this survey helps you filter the top three that might be useful to you based on your investment profile. Once you complete the survey and are given a zap, for example this one from Chai Earn Pool, you just have to enter how much ETH you want to add as liquidity. Basically, as you can see here, what DeFi Zap does in the background, specifically for this Chai Pool, is pretty cool.

It eliminates four transactions in the chain. Starting with ETH, the first thing we do is convert half of your ETH to DAI. And we don't do it directly to Chai because you would experience quite a large slippage if you did it directly within the Uniswap fund. After obtaining DAI, we converted it to Chai using its smart contracts and finally added the Chai liquidity and the remaining ETH to the fund. As a final result remaining ETH to the fund.

As a final result , you receive liquidity tracking tokens from the Chai fund in your wallet. Today we're launching something new. It's the general Unipools Zap. Until now, all available Unipools Zaps were limited to the options we had on our website. With this general Unipool, you can enter any available fund on Uniswap with a single click.

It's like providing this layer so developers can start initiating these one-click entry points to funds through this overall Unipool contract . And now Suhail is going to talk a little bit about how integration is actually done . Well, my name is Suhail. I am an engineer at DFI Zap. And, uh, I'm just going to talk briefly about how they would integrate our contracts into their DApp.

Um, it's really easy. Basically, all they need is the address and the API. We have the addresses available there, as well as the APIs. Uh, this is available on our GitHub page available on our GitHub page . And, um, they can go to this website.

You can download the API and the address You can download the API and the address . And the way they would implement it, uh, for developers, is by using uh, for developers, is by using , uh, web 3.js or ethers.js. Um, and basically, what they need to do is instantiate our contract.

Um, this part here is the most important. Uh, I'm using a set, oops. I'm using the set address here. Uh, this is for Seth's Unipool, but we could actually use any Unipool, sorry, any Uniswap address. Uh, so, for example, if they have a personal token on Uniswap and they want to add liquidity or have their friends add liquidity, uh, they can simply replace this address with any address they wish, as long as it's available on Uniswap.

Um, but this code snippet basically summarizes how they would implement DeFi Zap in their own application. Uh, you can use our general contract, our general Unipool contract, which is, uh, this contract right here. It's called Unipool General. Uh, and that will allow them to enter any Uniswap pool. We also have general contracts to withdraw liquidity from those pools and also to enter what we call, uh, leveraged positions, leveraged liquidity positions, which add liquidity to Uniswap and then go 2x long on Ethereum.

Uh, so these are all general contracts these are all general contracts . They can be used with any token as long as it is available on Uniswap as long as it is available on Uniswap . And, in fact, for this contract here . And, in fact, for this contract here , you can leverage long on any, uh, token that's available on Fulcrum. So that includes, uh, Chainlink, uh, KNC, um, all those tokens.

All you need to do is replace the address here. So if you were to implement this today, you could copy and paste this code, uh, as long as you have a user address right here. And this can be any address, so it could be, uh, another user's address, it could be the current user's address. It could be a random address if they're feeling really generous. Um, so replace the set address, put your address.

Send the transaction and then your interface, your front-end or your back-end, or whatever, can handle the events that occur afterward, such as possible rejections or successful transactions. Uh, but I'd be happy to create an API for you if you need an HTTP API. Um, so we have some integrations right now through uh...uh, through Seb at DeFi Snap, who asked us to create a quick API for him with specific information he needed about some of these pools, and we were able to do it for him. So, if you have any projects you're interested in integrating and need more help, or need custom contract work or a bespoke API, join us on Discord.

My name is @cryptonomic. And I would be happy to help them with whatever they need happy to help them with whatever they need . Yes, and I'm going to talk a little bit about the people who have already integrated us. It includes some interface solutions such as pools.fi, DeFi Snap, and Frontier Wallet, which today launched native support for Zaps on mobile.

Um, iEarn.Finance, if you haven't heard of it, is a really cool tool. Basically, what we've built for iEarn.Finance is like a floor plan for a pool aggregator. So this product uses Zaps in the background to rebalance its positions from one pool to another, seeking the best performance.

Uh, there are a couple of other solutions we're currently working on. Um, especially excited about things like adding extra pool opportunities in Zaps. So, right now you can only enter pools on Uniswap, but there are a couple of other products launching with a similar automated market-making model , specifically Balancer , specifically Balancer , Curve, and Kauri. Um, so what you can build with DeFi Zap today, first of all, you can create Venmo-like experiences. So, uh, each Zap has an ENS registered under it.

So, you could literally become a liquidity provider in the sETH pool by depositing ETH directly into sETH unipool.defizap.eth. And what you'll get back are those liquidity tracking tokens. And you could do this, you could set up an ENS for any pool.

So, with this Unipool general contract, you might think, maybe you're going to list a token on Uniswap, maybe your personal token for which you want to encourage the addition of liquidity. So, what you could do is create an ENS for your own pool that you're going to launch on Uniswap and essentially provide this easy onboarding for new users. Uh, the pool bridge is something that really excites us. So, right now, um, we have a zap in, zap out. So, if you want to change pools, what you'll have to do is, you know, zap in first, then zap out, and then zap in to a different pool.

So, if you always stay in ETH, it's easy, but you know, when you withdraw liquidity from Uniswap, you also get back two different tokens in the same way . So, you need to reorganize them for the next pool. I will allow you to do that. You could build something that lets you do that with a single click, of course. Furthermore, the bridge between pools doesn't have to be limited to Uniswap.

You could change a pool to a Balancer pool or a Curve pool. Um, other things that excite me quite a bit would be the guaranteed zaps. So, uh what you could do is provide, so, essentially think of it as buying prepaid Nexus insurance and then selling it in installments via zaps to the end user. So, they simply tick a box that says: "Hey, I want all the underlying contracts that the zap will touch to be covered by Nexus Financial." Nexus Mutual, sorry.

Um, yes, I suppose I'll take some questions if you have any. Any questions? And yes, as Sahil said, if you have any problems or additional questions, you can always contact us on our Discord. We're always there. So, yes.

Thank you all.