Masa 'Senshi' Kikuchi I Product announcement | Secured Finance I Pragma Tokyo 2023

foreign [Music] next up is our first product announcement and demo for the day I'd like to invite Masa up on stage to talk about secured Finance how they got started what they've been working on and what you can do with the DAP so without further Ado please welcome Masa I'll give you grab that mic on there and off to presenting welcome all right hi I'm Masa Kikuchi I'm a founder of second Finance I'm so proud to be here as a speaker at the pragma so I'm gonna talk about accelerating decentralized Finance we're a D5 project and we're building interbank grade peer-to-peer Capital markets for digital assets our mission is basically bridge the gap between traditional finance and crypto finance and we're leading decentralized Finance platform built on Australian blockchain and uh that is interoperable with traditional banking um I'm a scientist and also try to find people and we're backed by some of the brightest uh people from Top tier of an Institutional finance and we enable long-term investment because based on a reliable yield curve and our interbank market system which is a gap between 35 and D5 and we unlock possibilities of disrupted laser Technologies or distributed Technologies to democratize this market and we bring trillions to crypto economy today I'm going to talk about our origin and our concept of our market and I'm going to talk about problem and solution and I'm gonna show some of our products and demo and show some tractions and share future plans so we are born through hackathon thank you Eastern is global and we join hack FS hackathon is co-hosted by protocol labs and it's Global and we won a couple of awards and that allow me to join Taki on accelerator and that's how we started a couple of our history so we got some awards top D5 price from protocol labs and also best is 2.0 and lip P2P projects from Eastern Foundation then we joined filecoin Launchpad accelerator run by Tech here by consensus and we raised four million dollars co-led by protocol labs and luckily we'll return to hack FS sponsor and now we have been designing fixed term loan markets and today I'm going to announce that we went launch for our product So speaking about a concept and I want to build into bank grade peer-to-peer Capital markets so looking back when I was working for Traditional Bank into Bank Market is actually decentralized already and it is peer-to-peer there's no Central there's a central clearing counterparty but basically if you look at the architecture it is peer-to-peer already but they're using their own databases own systems that is not interoperable so the idea is basically use blockchain to replace middle office back office with blockchain so that in that way we can reduce the cost dramatically and we can open up this interbanking Bank grade Market accessible for everyone so if you look at the size of the market OTC derivatives is by far the largest market it is 632 trillion dollars market and on the other hand there's exchange traded not OTC market which is 79 trillion dollars so you can see how big is the market size is so world GDP is 80 trillion dollars so you can see how OTC derivatives Market is large and if you can take a look at it closely out of 632 interest rates Market is 502 trillion dollars so about 80 percent of the OTC market is interest rate market and that is the market we are going to build so this is huge business opportunity but it's we don't see this Market happening in the D5 space yet and I'm going to explain why it is so difficult so now a lot of D5 projects are successful in making money market we call it money market for less than one year and for the more than one year space we call the Capital Market right now it looks like D5 is successful and come to some kind of maturity but uh people are so excited about basically spot exchange buy or sell you know cryptocurrencies and do some Market making do some ill farming but it's more like a lesson one year space and we are missing this huge part of the capital markets so who is usually building this it's actually you know the people treat Kurt Garcia right now as cash or Equity but it's not cash or Equity it is the currency that comes with banking level Solutions like a Bonds on swaps and derivatives and hedging Solutions and uh yeah but it's I believe JP Morgan Goldman Sachs has to build it but it seems too early for them and this is a huge problem and I've I'm gonna share this problem so there's a international regulatory framework called Basel 3. if banks need to hold crypto Assets in the balance sheets the risk rate is one thousand two hundred fifty percent which is really high and also they have to pay extra comp compliance costs that is so expensive that is the reason why they don't want to provide a full range of financial services for crypto and maybe custodian is okay but they don't want to provide full scale of financial services and that is why we decided to build this level of Market as a decentralized financial protocol so right now D5 is like a finance baby it looks successful but it's just a few billion dollar scale but from traditional Finance scale it is a trillion dollar scale so this is a skill we want to bring this into this crypto and so we're more like a try to become uh Solomon Brothers or Goldman Sachs of decentralized Finance and we're basically uh industry experts so we hired Traders from Goldman Sachs and a quantity engineer from HSBC and a digital strategies from Morgan Stanley and Gomez X and that's how we build it and our approach is to build yield curve in the first place by providing a loan market so the loan Market is the first product and then we're going to expand the product range to FX forward and then going to build derivatives Market so talking about the yield curve it is so crucial to build the interest rates Market but it's not really that pool based amm based interest rates it is a local interest rate but on the other hand our solution is to have a Autobook system which is universal interest rate so it can be used as a reference rate to build a derivatives market so oranges rate quality is universal as opposed to the AMA based on local interest rates so once we establish yield curve and from low markets we can expand our ecosystem to swaps forwards and hedging and options market so this is the ecosystem we want to expand so our first product is low Market which is decent lies lending and borrowing four currencies our features we design our plain vanilla as a zero coupon loan market so you don't need to to think about the coupon calculations and we are order book based fair price Discovery and we have Smart contract clearing counterparty so this solves the problem of secondary Market liquidity and we also have automatic Redemption with mid price rolling which is so effective for large-scale investors and today I'm going to make announcement that we went live finally went live after two years of development thank you very much I'm going to testnet so we we open up a 32 markets for four currencies each currency has eight markets basically three months six months nine months 12 up to two years so you can choose one of 32 markets and you can take a look at our yield curve and see the trading opportunities or Arbitrage opportunities so let's play our one minute quick video oh sorry how can I play let me click all right so I'm going to share with you later this is basically the one minute but you can go to our website and you can jump onto the website so along with our product launch in Mars we're quite busy we coordinated our like a launch so we released a white paper and concept paper it took a bit about 15 minutes to read but we released on March 14th and we also really released our uh landing page and a web app and also it comes with uh oat on-chain achievement token campaign we're running test pilot checking campaign and also we published seven articles basically step-by-step guys you know how to connect wallets how to set up a metamask etc this is kind of a barrier you need to remove so we yeah you can go through our documents so our go to market strategy is Three Steps From retail to institutional First Step important step is to serve like a borrowed land demand for the Falcon storage providers they're paying more than 20 so it's really attractive investment opportunity for investors and then we provide Bitcoin Instagram usdc curve that is you know you can Arbitrage you can carry trade so this is super interesting and then the third step is actually we build the forward market and provide the opportunity for the structuring and products such as the Dual currency deposit and we see a tremendous growth in in terms of active users so we already achieved 48.9 tweeters and Discord as of today we have 49k and Guild also 38k and Galaxy we compiled 112k so we are so humbled to becoming a top defy if you look at the Disco Community size we surpass Mega Dao yield you know one inch yarn curve and we are as of today we have 49k so our community is as big as Abe already so thank you very much and we're running a weekly basis uh Community call on average we have more than 33 000 attendees so I'm so excited to have this super like engaging community so this is a connected wallet addresses since we launched our product our unique like a connected addresses keeps increasing having over 7 000 unique addresses so we are so excited to keep improving and another announcement here is we're in the middle of the test pilot V1 training program so basically you can go through a training program you don't need to know any of the finance knowledge you can just go through our like a user guide so you get used to the how to trade on the into Bank Market and to become you know expert Traders you know uh institutional investors are coming but you can compete with them I'm sure that you will become a top Trader in the world and finally as a Japanese founder I want to um invite you to come to the Webster world and also come to Japan Japan is fully committed shifting gear towards webstery and uh so we're changing a lot of laws and tax rules Etc so we are so excited that Japan is leading the web 3. and yeah thank you very much so I hope you can come to our hackathon we're hosting hackathon so thank you very much thank you so much um and I'm not sure if you all caught that but this project came out of each Global hackathon about two years ago and just the incredible amount of progress they've made to kind of get here just shows you how dedicated not only Mouse on their team is but the opportunity here to build something really interesting that takes in from all the principles that you know international finance so give a big round of applause to secured Finance team one more time and thank you for their continued support