Mariano Conti ~ CDPs & MCD: A Lookback with Maker

foreign [Music] my name is mariano conti i work for maker on oracle's smart contracts backend services whole bunch of things and today i want to give you guys a look back on the past year and couple of months ever since we launched single collateral die and uh where we are at the moment so in case you don't know dye is a stable coin asset-backed hard currency soft pack to a usd which means essentially that one die equals one us dollar and it is created when you lock up a valuable asset in this case uh ether into a smart contract and we call this a cdp we launched dye on december 17 2017. we had an initial debt ceiling of 50 million we then raised it to 100 and we launched when the price of ether was around 800 and those were the happy days the price went up to 1400 if you remember and down to 85 and dine never lost its specs so we're very very proud about it i'm going to show you this i did this yesterday so it has really no design no logos no anything but these are just like the ego numbers um it's the stuff that everybody likes to talk about then just gonna give you a quick overview hopefully this is uh still i'm just going to refresh just in case and you're going to see that the block and the hash are updating uh in a second just to see that this is all coming from the blockchain right there's 78 million 270 000 died like this is a new record every single day and if you look at the second number that's the total amount of eth in existence and the third number is the amount of eth locked into our smart contracts over two million fifty one thousand and that represents almost two percent of all eth in existence locked up in our smart contracts one point nine five six and growing um to give this some perspective the total amount of wrapped ether it's over two million two hundred thousand that's the uh that's the the erc20 version of ether so it's like what most people use to interact with other dapps well 92 percent of all the wrapped ether is locked up in maker dial cdps and the last numbers is just the amount of mkr that's already in the burner that was paid via stability fees so essentially when we burn those 540 maker everybody who holds uh the mkr token um will see their value uh increase a little bit there's now like 273 000 worth of mkr in the burner and you can go to dyestats.com and look at this whenever you want so this is my favorite tweet of all time uh it's from mafi from parity this is essentially what dye is uh we strive for stability right and i'm gonna talk about the rest of my talk is probably gonna be just like use cases uh talking about the community how they are using dye how they are integrating uh the stuff that we're building so this is um when afri uh started the the girly test net they got a grant for over 50 uh thousand dollars and they requested it to be in die and you can sit in the multisig and when i asked him why he said well it's predictable i know how much money i have if i get it in eath or not in another token i cannot really know how much money i'm going to have tomorrow it could be more of course it could be less um like the talk right before uh git coin dies number two right now and growing every day um i believe that for people to actually work in open source and work on these bounties if they have a predictable predictable amount that they're going to get then they're more likely to take on these issues and do you remember this one the yellow tweet when uh vitalik gave the non-giver of eth gave a thousand eighth um well he also gave it two chain save systems and the amazing thing was i sent some unsolicited advice telling them how about you change some of that into die so you can know how much you have it's not going to change tomorrow it's not going to go up it's not going to go down you can measure you can hire people you can know that you have so much for salary so much for infrastructure they told me oh way ahead of you we already did that show me the multisig it was done they traded it all for die and uh well they're here here by the way um around so ask them they're over there they're one of the coolest teams around working so as you can see the price of e like in this case the moment they uh changed it it started going up sadly but um it could have just as easily gone down like this is what actually happened but this is what was happening couple months before so you never know that's why i always say if you want to do something with open source with other developers please try to use die for this uh this is one of my favorite tweets alex van der sande saying that the ethereum foundation is paying people in die and he was the first person in the foundation to get paid and die and this is very cool but of course uh the people at maker we've been getting paid in sai which was the alpha version of dai since around june 2017 and we've been dog fooding ever since and the moment we launched die a lot of us started getting paid our salaries in that and i don't know if you knew but aragon they opened the cdp they over collateralized by a whole bunch like 415 at that time i don't know how much it is right now but it's amazing to see other projects in the community uh use the tools that that we're creating to actually get some value out of it because you don't want to spend your eth right now like if we're all here if we all believe in this project it's because we know the price is going to go up so one way you can actually protect your ether and not use it is to borrow and some amount of die against it uh with the expectation that it's gonna go up of course this is a bet right that it's not guaranteed to happen but if you're here it's because you believe that the price is not it's going to go back to what it was hopefully and this is me yesterday with makoto from kickback asking him to incorporate die i don't know if you've used kickback for your events but it's really amazing and it only accepts eth and when i told him he said you're the only person that asks me to incorporate die into my platform so this is like a public shaming uh if you want to incorporate if you want to pay with die there's makoto ask him later thank you um i want to talk about a really cool project called maker scan it is made by two brothers from india they're 21 and 19. uh it's like ether scan but for maker cdps and they've got such a great insight into what is going on with the system and the other day one of the brothers tweeted something that really resonated it's like who says defy is complicated i'm 19 years old he's been in defy even before trying out traditional financial systems this is someone who probably has never opened a savings account well maybe a savings account but a checking account they don't know what it is they hopefully will never know they're growing up with this new uh technologies that we're building and they're saying it is not complicated it's what i'm growing up with this is what like encourages me to go on and say that we're on the right path of course uh we've seen stuff like balanced wallet that's coming up with cdp integration and even vanity cdps this is richard burton buying cdp number 420 then very appropriate since we're in colorado but he promises he doesn't smoke weed but he promises whoever deposits eth into that cdp he will use it to buy medicinal products for faults in need so this is one of the stuff that is also coming out and it's growing organically out of the community of course xdi austin griffith he's around somewhere i haven't been able to say hi yet he built the burner wallet and also most of the infrastructure that's going on right now in your wallets with the buffy die that you hopefully already used to uh buy food outside this is all powered by the x die chain that was built by poa who are also around here using parity technology has five second block times native token is xdi which is that so you pay your gas with a stable token that's uh worth the amount in dollars so you know that you're paying your gas in cents that are always going to be the same it's not like you deployed a smart contract right now for x amount of eth and then next year it's probably enough to buy i don't know something cool and uh maker that was one of the validators so we're very happy with this technology and you're using it right now with the burner wallet um as you can see everything i showed or most of the stuff i showed is stuff that's coming from the community not from ourselves we're building the the platform and we're expecting everybody to build on top of it so i didn't show any uis built by us not the first ones which were not very good but the latest ones are really really amazing but you can use dye for charity uh you can use it for spark spreading on crypto cup you can lend it on compound you can spend it on vidalia by buying gift cards you can use wire for on and off ramps there's a whole bunch of things that you can do with it and if you go to a github maker awesome maker dial you will find so many cool things that you can do with dye and the list goes on please find us our booth later so i want to sum up by saying the die credit system is a platform it's not a it is a platform you build on top of it and you worry about your product and we will handle the stability that's like the maker promise i just want to shield my oracles panel tomorrow because there's another one that's i think a little bit more interesting happening at the same time but if it's full then please come to mine and uh i also want to mention that we have some cool bounties um you can go to cardi dot io i don't know you'll you'll find more info there but uh there's prices in die for improving the burning wallet or create a new lending platform or work on the stuff that aztecs pro protocol is coming up with the serial knowledge proofs and i'm going fast because i want to leave a couple of minutes for questions if that's possible if you want to ask economic questions i'm not the right guy but you can ask them if i don't know him i'll just say so these are all people from the community they do not work for maker uh i'm forgetting people but they're really really amazing at understanding what goes behind the scenes what the relationship is between ether mkr and i i suggest you follow them and you will better understand what our system is i do want to have like one slide for multicollateral die which we're working on so there's going to be of course many valuable assets other than ether that you can borrow against the smart contracts the core system is going to be formally verified and it's coming very soon i cannot give a date yet but uh i promise that we're going to be working hard to get it done and i do have one final message this took me a while uh to get it done but i got it done just before flying from buenos aires i just want a quick raise of hands if you have ever opened a cdp wow this is actually a very nice number so this is the message from a very special someone it goes like this high if denver happy hacking stay healthy and never blow up your collateral but if you do it's not the end of the world cheers from cdp 3228 and if you do not know it 3228 is one of the cdps around always risking liquidation had one a while ago and it's sort of a a hero in the community that follows cdp's so you of course do not have to trust me that this is the real message but that's the message that's the the sign message and it resolves of course to the owner of cdp 3228 you can verify it over there thank you very much if you have any questions i'm here for you we love you thank you uh hi uh like many of us here i had lunch recently and used the buffy die um could you maybe just unpack what's happening there a little bit more for us just sort of behind the scenes transactionally and just yeah stable coin okay um so the x die chain there's a bridge between mainnet and the xdi chain where you uh lock up die in a smart contract and it is locked there and it is minted in the other chain so um let's say you have a hundred die you put in the bridge and then you create it on the other side and now you have a hundred uh xdi that's a native token to that blockchain uh you can transact it like we're doing here uh buffy die is a special version so it is an erc20 version built on the x die chain but it's also it's uh linked one one to xi so the gas costs are minimal it's in like not even a penny it's like fractions of that and uh the idea is uh to have a token for everybody to transact here and to see if this experiment works like we've seen the lightning network and what's been done with that and we think that this is a a very cool ethereum version of it any other questions for moreno would you please um um this is an economic question so apologies um but there was a flash crash in ethereum uh in 2017 a quite a notable one in coinbase right well i guess it affected everyone in the end um uh what what what you know what do you do in a situation like that where how do ctps then okay um so if i remember correctly the flash happened only on gdax right and the way our oracles work for the price we get the the prices for from many different sources and then we aggregate those prices in mainnet so [Music] even if the price of gdax uh crashed we were getting the prices from there and other uh exchanges so uh our oracles never really uh occurred cared about it it's just they they figured it was an outlier and they just removed it so uh we didn't have any problems there and i'm gonna be talking about oracle's more in-depth uh tomorrow at the panel uh is there recommended tools or for those of us who want to automate the management of cdps um i don't think we have any um that we've made ourselves but i'm pretty sure maker scan has some kind of at least alerts and there's stuff that's coming i'm forgetting the project names but uh hit me up later but there's people that are coming up with projects to do like one click 3x leverage uh stuff like keep my cdp always collateralized at 250 so if the price is going down uh add more collateral to it if the price is going up borrow more from it so you're going to be seeing a lot more this coming this coming months and hopefully somebody can hack something like that uh this weekend oh thank you yeah using the js of course our uh amazing library built-in node okay thank you very much