Tellor - Oracles & Censorship Resistance in Stablecoin Protocols

hello everybody I'll let that last or that statement sink in for a second so on the last panel somebody said that governments don't really do anything right um they try but honestly they don't have to right governments are monopolies and that's exactly why we need censorship resistance stable coins crypto has brought competition to industries that have seldom seen any and stable coins have taken on the biggest Monopoly of all governments because aside from baring governments have always controlled the way that we transact and they continue to do so especially in our geographical area um crysto had uh and and crypto has changed some of that but it is too volatile to actually be used on everyday day-to-day trans actions so stable coins don't solve that and yes crypto has a very long way to mature but it is much worse it is not that much worse than our current system our current system is also still maturing it is not as sophisticated as governments will have us believe and some of their mistakes continue to have repercussions but who suits them if the government makes a mistake they just say too bad we'll try better next time and if we make a mistake as an emerging industry or not even if we don't make one the SEC can still come knocking so let's look at some of the mistakes that the government has the US government at least has made over the last several years um in the N that have actually contributed to large gaps in economic inequality in the US in the 1930s during the Great Depression they imple they created the homeowners loan Corp that was tasked with providing low cost mortgages to basically help the economy and so they went on and created a survey and surveyed a bunch of bankers and these Bankers based on their risk assessment they created these red line districts these districts or these areas these neighborhoods were mostly nonwhite neighborhoods that were deemed as too risky and so the majority of the actual funds for this um Equity Building um vehicle went to predominantly white neighborhoods that was in the 1930s the same Red Line districts today continue to be lowincome to medium inome neighborhoods and continue to be predominantly ethnic so something that a badly implemented policy continues to have an effect up until now something else that to me came as a shock is that women in the US were not allowed to take business loans without a male co-signer up until 1988 that's my lifetime that that it was 36 years ago that to me it's unreasonable to be honest um but they tell us that we live in a very sophisticated Society with sophisticated Financial systems and yet 50% of the population was pretty much excluded from being part of it and that's women right until 1988 so over the years the US has actually banned several things including um several things that and the only reason that these things have become legal have been because basically the government has not been able to shift people's Behavior like Weed and Alcohol right eventually those are becoming legal in the US Napster however has never become legal but it did bring in a lot of much needed competition into the music industry so now we have Spotify Pandora iTunes we have options so competition benefits the consumer and benefits constituents like us um so so we need to continue to push the boundaries and as you build your protocols there are going to be several things that you're going to have to deal with right to actually create some dat sensorship resistance so how much control you want over your protocol what dependencies you use and the ex how you deal or address externalities so for control obviously you have to decide are you going to have a multi behind your protocol a governance and is your protocol going to be immutable or upgradeable and how will these upgrades or happen you can to use in um a multi- a vote governance go vat or even buil in some thresholds that are triggered by some liquidity uh liquidity withdrawals um for dependency especially for stable coins it comes down to your price discovery mechanism or the Oracle that you actually use um obviously no matter which uh way you go there you're going to have to deal with liquidity but we'll talk about it in a second uh for externalities lobbying or consumer sentiment as well as political climate are two things that you're going to have to deal with no matter what we deal with it all the time and there's not a lot that you can do aside from marketing and lobbying it's can be very expensive but luckily we have some of the crypto giants that are taking up those um those fights right now and for dependencies going back to the Oracle when you're dealing to when you're trying to figure out what to use um sometimes it's just you know it's just just comes down to trade-offs and what do you actually want to do with your protocol if you want something if you want focus on speed sometimes you're like okay well I need to give give up decentralization but honestly there have been some pretty good implementations out there that have been able to take advantage of speed and also be sensorship sensorship resistant these are the three primary structures that I have seen people implementing oracles properly so the first one that allows you to have speed if you use a more centralized Oracle that is faster but then you use a fallback Oracle that is more sensorship resistant and decentralized and then you have another type of structure where you might use multiple oracles or get data from them and then aggregate them on chain now no matter which structure you use you're the most important thing that you're going to have to deal with is going to be um do your data definition so how do you actually do your offchain data aggregation because as we've seen through the years the biggest or the the most common way to attack a a system is not to actually attack the Oracle directly but actually attack or manipulate the price or the asset that you're using last year itself it was like I think was like 12 hacks that were literally all done through flash flash loans to actually manipulate the price of the asset um and no so no matter what structure you decide to go with you should always have system fallbacks you should always assume that something's going to go wrong no matter what so you not only have some fallbacks into built into how you do that aggregation and how you make it a lot more expensive for people to manipulate the price of the asset but also how do you handle when everything is broken because ultimately if you get hacked who cares how it happened if you're the CEO or the CTO it's your fault you're going to have to deal with those repercussions no matter what and with everything you know we have to deal with liquidity you know when you're choosing the assets that you're backing anything with you have to make sure that you have all of these things in place otherwise you're basically becoming a Target um and that is all the time I have but uh I just want to I guess to close this I just want to remind everybody that crypto is is a social movement we focus a lot on financial items or financial instruments But ultimately what it brings to the table it's the freedom of choice like Michael said earlier but it goes hand inand with censorship resistance so as you build your protocols if you cannot make them useful for the people that actually need them in areas where they're absolutely necessary in the US it's nice to have these stable coins these yield bearing instruments but in places like Argentina like Venezuela they're absolutely necessary and they cannot exist without censorship resistance so anyway um thank you for listening and I am way out of time but thank you so much for the patience Barina [Applause]