Yield Scaling Stablecoin Architecture

Nice to see everyone. Check check check seems to be working. So today I will be talking about uh how the uh uh experience and our view on how to build yield scaling uh stable coin architecture. Uh probably not really needed for introduction as it already happened but yeah I'm uh co-ounder and CTO at resolve labs. spent some time building thread five products and some of the crypto one and uh let's talk a bit more about the context of uh delta neutral stable coins but most of the uh presentation will be relevant for many other types of architecture.

So as you can see and hopefully you know that crypto can be sourced for attractive returns and uh one of the metrics for example we took is uh 20 billion here is mistake not trillion I believe of liquidity remains on top on market we basically took open futures interest around three most popular tokens uh crypto assets like uh BTC ETH and so Salana and uh that's a rough indication of what might happen. Uh but it's worth to talk about uh associated risk which relevant in different forms for different architectures of stable coins. A good example might be uh USDC. Uh probably some of you remember a DPEC event happened over two years ago related to uh problems with Silicon Valley Bank. uh hopefully not hopefully the situation was uh resolved but it's like just one of the examples what might be happening and how of such losses might uh might occur uh regardless of if you are building uh fiat baked or real world assets uh stable coins the risks still be there it might be pretty different but but still uh you can have uh risks associated with centralized exchanges if you're using for example uh perpetual market like we are using uh you might uh affected by general liquidity for decentralized exchanges and the related like u risk associated with one uh strategy operator.

So how we might potentially solve both uh potentially limited markets and different kind of uh risks starting uh from limited markets essentially. So it can be different uh as I told you before it can be coming from liquid staking protocols, restaking protocols like just lending markets or many other sources and such sources might be created by external providers, different projects, third party projects. It can be even created by uh security risk creators and uh we trying to solve also the fragmentation market as the sources are baking a single stable coin diving the liquidity level essentially and uh we definitely will see a lot of project and we already see a lot of projects in stable coin space and uh their sources coming from for example Delin neutral strategies I don't know may maybe some AI agents I'm just uh generating random ideas high frequency strategies and many many other and if to not diving into scalability issues of specific solution are still there and uh the risks also there then combining it especially for stable coin it's pretty pretty dangerous because the more yield sources you adding the more like high chance something happen sooner rather than later and we came up to the idea of making uh I another one uh branch for absorbing the risk essentially as I told in thread five world uh it's known as trenching so we are getting the and thizing the risk related part of the uh of the common collateral And uh it's pretty good opportunity because it can be taken and it can be driven by markets. That's one of the difference from many other projects where usually you have uh different insurance funds usually driven by uh for example competent treasuries. It might be uh necessary to raise external funds.

You might pay some interest etc etc. So uh and I will essentially explain it on the on the example of our tokens. On the top you can see our stable coin on the bottom yellow one it is exactly that uh that token. So uh that yellow one the junior tranch is uh gets a share of yields generated by the totally total protocol and given that the share is meaningfully less than the whole TVL they getting like a pretty good upside as a result those two project might be interested for different um types of users uh with different um risks appetite let's say moderate Y people or uh for junior trench token more um let's say risk hungry people like defy native people maybe some uh defy yield I don't know farmers so you might have a question at the beginning of the presentation there are many stable coins what's the point and hopefully partially I covered the topic such modular architecture might help to bridge uh the uh such yield from different sources into the stable coinary yield uh race and from theory to practice it's not just uh some I don't know theory kept uh somewhere on the background we already implemented it the strategy already run for over over a year most of you uh have seen like already a lot of ups and downs on the market and it's performing pretty well uh we live on a few chains already serving over 50,000 users officially registered in our programs. I believe it's way more on practice uh over 10 millions of uh yield distributed to the year to the users like TVL right now a bit below 400 millions with 60 600 millions uh alltime high and like uh almost two billion means and redemptions uh distributed.

So the last slide uh if to think a bit more about how such architecture might be serving the whole ecosystem and how it might be in general like aggregating additional yields and opportunity. One of example is here as I mentioned uh some of uh yield sourcing might be uh staking tokens liquid staking tokens for example uh such projects usually uh redistributing they all their assets to not providers to validators institutional validators and as in this example and we can uh use them to le leverage distribution network to get new users to get new assets to such uh liquidity products and institutional validators essentially. So uh in such way uh that architecture becoming a way more important part of the whole ecosystem. Uh basically that's it. Sorry I had to rush a bit.

Uh if you would like to get more details updates riskier code for our official Twitter or just find me after the presentation or just official mail. Thanks a lot. [Applause]