Samuel Lim - 1inch Fusion: A New Standard for Token Swaps

now it's time uh for 1in keynote please welcome Samuel Liam cbdo of 1in network will be sharing his insights on 1-in Fusion a new standard for token swaps and I would like to remind that 1in will be the sponsor of after party which will be happening here um I think starting around 8 to 9: please welcome samel on the [Applause] stage okay should we start what's up it's numbero hello thanks for having us I'm the cbdo of uh one inch uh before I I've been in one inch for about two years and before that I was a partner at a law firm international law firm I worked in New York uh Hong Kong Singapore and now so I'm glad to be here uh you know Istanbul is a is a is an amazing City this is the first time I've been here and uh this is like uh the home of Constantinople and uh the Roman Empire and I'm just very fascinated how beautiful the city looks like I think like this place is really like the intersection between like east and west and uh you know I think this is a very good example so um we're you know this is the 1-in network we are we're known for our Dex aggregator but you know we're we're more than that we are truly a network where you see we have our uh 1-inch wallet we also have our 1-in Dow our Hardware wallet and I'm going to be talking more about Fusion uh later on as you know like one inch has is the market leader we have about 70% of the Dex aggregated Market 70% of the limit orders since Inception we've had 400 billion in total volume and we raised 190 mil and we have 150 contributors all around the world so I think this which one there was a different slide um do you have the other slide but anyways I'll go on so does anybody know why we're called one inch raise your hand for those who don't one inch is actually named after Bruce Lee everybody know Bruce Lee and Bruce Lee had this punch called the 1-inch punch and so you would actually take you would be on somebody's chest and you would punch and it would knock the other person down right that represents one inch as fast powerful and efficient so that's how we get inspired from Bruce Lee let me just go back sorry about that so as I said you know we're about 150 you know the history of about 1 inch so you know in the Dex aggregation we're you know we have a a a protocol called Pathfinder and the Pathfinder allows the routes to go in various different liquidity protocols and it takes different slices of each liquidity Pro that would give the best price and so it's not a very linear type of a uh of a swap it it's very complex and it leads to different paths to Le for the best price and this is what allows us to be the market leader in terms of Dex instead of using a uh Unis swap or any of those very simple amm tools it goes into various different routes so that um we can get to the best price for our users so here are the current limitations of defi as you know there's you know the issues of unfavorable swap fees that we try to solve uh M attacks and complicated us I'm going to talk a little bit more about M attacks as you know you know when there's an mbv attack there is before a swap is broadcasted it goes to the mean pole and stays for the for a very few seconds and during those seconds are the critical seconds where Bots can actually do what they call a sandwich attack right where the where the attacker buys gets the gets the uh the tip first and then buys and then the user buys and then attacker sells where in number four they make a profit and this can cause you very disastrous consequences so a famous cas is when a a Unis swap user lost $700,000 to an MB bot where it only made 260 and we solve that with what we call Fusion later on so we are at a juncture in um in defi where where are we going to go is it the thorny path the success path so I want to give you some idea where we're trying to go in terms of web 3 the way we see the future of web 3 is I'm going to put a comparison between web 2 world uh to now so you know as you know we already have our dii wallet right and we have our Dex aggregate our main tool we see the future of wallet as the the the web 3 version of a browser and we the Dex AG the swap mechanism as a search engine for web 3 and so a lot of it has to do with perspective um you know I'm old enough to tell you that you know when I was young going to a bank like HSBC and City Bank was an actual experience I had actually walk to a teller I had a bank book and then I would go to the teller and tell me to give me cash for my bank book right I have kids who are 14 and to them HSBC or City Bank is nothing more than the IOS app they've never been to a physical bank before think about that right so their experience and what they think about what Finance is very different from my conception of cash teller and so in the future my children will probably see like instead of go getting a loan from HSBC or City Bank they'll say well why would I go there I'm just going to go use a to get a loan right and so the future of the web3 wallet it's going to have you know different types of daps where you could get a loan you're going to see swap you know you're going to see chat featur Fe in uh uh web 3 wallets where you could communicate and also send tokens to the person who's verified on the chat and we are connected by the swap mechanism that we have so if I have 1inch tokens and I want to get Ava tokens I will use the one HD aggregator to swap the tokens right and so we are in that transition F you can't have you know in order to surf the Internet you can't have just the web browser right you got to have the search engine you need both to navigate the web 3 and so your children will not see HSBC or City Bank but they'll see whatever daps that you see you know projects that will be the new Financial infrastructure for the future so we are at a crossroad so in terms of what we're trying to build is what we call sort of like a euphemism decentralized NASDAQ through Fusion so NASDAQ is the second largest uh um Stock Exchange in the United States right and so they order are filled not in the order book system but through market makers like the citadels right they fulfill the orders for you so what onein Fusion is doing to sim to a similar model but in a more decentralized aspect you know well we're decentralized aspect to that so the 1in fusion has a lot of capabilities one uh I'm going to talk more it has gas-free execution it is done through a Dutch auction mechanism um you know it has what we call resolvers but resolvers are nothing more than market makers right and all the you know the market liquidity is on one place the resolvers act as the market makers and you know they get the sources from centralized exchanges dexes pmm and they provide and fulfill the orders so one of the most important things is the concept of gasless swaps right so what we're trying to do is simulate more to the real world right right when you go use ER trade you know they're not going to ask do you have gas right to an average user in order for to adopt to the decentralized space we have to simulate and make it more uh attuned to what's the retail user using so you know if you if you want to attract institutions if you want to attract you know the average person who wants to participate in decentralized finance you have to simulate that more to the real world and so we provide that a gas Sy swap version in Fusion mode another important aspect what we cannot ignore is compliance right we live in the real world we don't live in you know the Garden of Eden where everything is perfect we have to abide by The Regulators and you know what we believe is that it's not a matter of whether it's going to happen in terms of regulatory uh regulations on defa it's really a matter of when will it happen and so what we're trying to do is create an infrastructure where is highly compliant we are one of the probably the leading compliant D5 platform out there where we do AML uh and also sanction screening in all of our trades and swaps and when you work with the resolver they are already kyc and so an institution like JP Morgan the biggest roadblock to any you know entry to the defi space is kyc and AML as a regulated entity in the United States or elsewhere they cannot do a trade with a non kyc counterparty because that counterparty can be North Korea's Lazareth group and because they're listed and government licensed entity you know in various parts of the world it is a cause for concern so we need that and so through resolver when if JP Morgan want to do a trade they want to swap you know uh theoretically 1 million uh usdc for Bitcoin they can safely do that using Fusion because all of our resolves are at kyc they will know that the counterparty in their trade is not North Korea's Lazarus group as I mentioned you know we we solved the Meb issue through Fusion you won't be you won't be subject to any uh me attacks because the resolvers are providing the trades there is no chance for me vot to uh do a front running attack and uh let you lose a lot of money in those trades as well we are probably one of the most secure heavily audited uh projects out there and our Fusion is one of those projects it's amazing the fusion uh project came out you know over this past summer and you know we had our developers come in all around the world in Dubai and with one month uh they created this product we got it audited and we were able to launch it we're also working on Cross chain you know swaps uh you know it's in the the works but in the future we will see all supportive chains including BTC and uh xrp in the future so it's going to be based on Fusion uh for anatomic swap technology when as you can see in this slide you will see that um the orders are you know the the the idea is for various resolvers to compete to fulfill a order so the more resolvers we have the more competition there will be and the better pricing that will happen so it is really the users at the center and then you have resolvers competing to fulfill the orders just like NASDAQ so as I mentioned earlier it's a Dutch auction system there are various points where the Dutch auction will happen and then the trades will occur and this is an example of you know the Dutch auction me uh mechanism working and both sides win for a swap of five 5,436 uh WRA e to usdc each time there are points in time there uh in the bottom you see at the at the second Mark in the Dutch auction where resolvers profit but at the same time during the profit um the the users will also get the best price so it is a win-win situation you know for both the user and resolver uh it's built for retail and institutions uh you know the retail allows for self- custody Solutions uh there's no swap you know average if a person if my parents were doing Fusion you know they wouldn't have to worry about understanding what a gas is right and they could get liquidity from uh various sources as well um as I mentioned earlier we are uh complying with the various regulations out there it's going to be very important for defi to adjust to the new realities of upcoming regulations that will happen it is not an easy uh tackle because you know how do you regulate defi but the governments are working to find a solution to regulate that because this is one of the the the blind spots on cryptocurrency that the governments have not been able to figure out and also you know it is truly self- custody right you know we just recently had a hack and uh uh and palonia uh exchange FTX you know the def5 provides you security so that you don't lose any of your money when the FTX hack happened I wasn't worried at all because I didn't have an FTX account all of my uh asset were safe in my 1in self custody wallet and we charge zero fees right as our competitors are charging we still want to give back to the community and you know we don't Char we want to grow the ecosystem so that you know more people can adopt fusion and become the standard for uh swaps in the future we've done great uh we launched this summer and we've already had 13 billion total volume 1.6 million orders and new wallets created and we think that this is the way to the Future for future swaps and we see a lot of growth and adoption so how to start but you know we have the DAP you know you could join us there we have the wallet app but it's important I think for the def Community to um you know Embrace uh gatsis swaps we think that this is going to be very important um you know we think that this is going to be integral in our lives your children's lives in the future of Finance I brought uh and we also have a developers portal where um you know you could actually integrate into our a you know get get our apis and create and integrate with us in in the various products that we we have but I think the final comment I want to say is like you know I mentioned Constantinople right and so this was the uh the home of the the second Roman Empire right um it took you know it was one of I think it was the longest running Roman Empire that we had and you know that saying uh Rome wasn't built in a day um but we're at one inch we're trying to build a new Rome for defi right and it'll take one step at a time and this is one of our efforts to build that you know place that stone so that we could uh have a different future for all of us you know Rome's impact throughout history it it affected us impacts us still today in the Arts culture politics and you know we want the audience here to participate with us and help us build a new realm of Defi and thank you for your time you take any questions okay thanks a lot Samuel thank you