Napier labs & Curve Workshop - Enhancing the Curve Ecosystem & Advancing crvUSD

um let me start the our Workshop by NP LS thank you for attendance and uh the curve um Martin from cve should be uh coming soon and we'll be having like discussion like panel later on and yeah we'll be talking about like how we can enhance the C ecosystem and how we can um expand the uh utility of CVUSD um and before to start here is the the founder Yus wearing sunglasses yeah uh Martin should be coming later so for the intro uh we'll be speaking about like why we build napia uh what is napia finance and where we are and we'll be having discussion with um Martin okay so the motivation of building nap here was you know if you look at C finest history you know it started from Cil Swap and obviously they releas their talk and cby which led to um quite a huge innovation in like um governance Sten space and yeah in 2021 or 2021 um they released C which broaden the coverage of assets that can be tradable on C okay and yeah and they released uh CV USD this year um so that's like what we have in cve OS system so far it's getting a bit difficult for me though what um good fine I don't know then like what we thought that we need in Co system was like two um this is more of like longterm which is on bodying institutional player that's like most of like D5 folks uh aiming right now and yeah and and also like the the shortterm like Target is the growing the ecosystem of CD and yeah that's kind of thing that we wanted to contribute that we wanted to um give impact to it and that's the motivation of um our nap Finance so the our thesis i' say is that curve needs fixed term assets like indust R derivatives tradable on curve to expand the curve system as well as um growing the utility of CV USD um yeah and here the in game for c e system napia Finance so what is npia so npia is liquidity have for E trading built as a as an extension of car finance so it could be say like we built on top of curve or built with curve and napia provides curve users with with fixed and variable it trading so you just can choose what kind of eel to have exposure with and they could create um Capital efficient flywheel which means users on curve no no users on nav here let's say you metal liquidity provision on napia you have access to the E of curv like CRV and CVX Etc and very Market as well so like that will give you uh great is source so why on curve this is like sort of what I already explained but we wanted to maximize Capital efficiency for it trading we've seen like many high Mar it's getting difficult so yeah so I will I will do so yeah like I will do the quick intro then we could talk like in a small table if we want yeah yeah that would be helpful yeah probably more for like recording purpose yeah so I mean you know people are here for networking pretty fair yeah so we chose to build on curved to maximize Capital efficiency for either trading because like kv2 mm perfectly for fix term asset trading if we can handle specific part where we need to handle the um time dependent value if you can do that then C would be the best place to make data trading so we made it we built specific amm to optimize time dependent value so that we can make the rest of trading on top of curve so here let's say um so as I explained we've got two different pools one is B pool which is literally in inside curve and we'll be handling like most of asset on that part and we have n amm time dependent metap pool where we are Hing time dependent um value of these fix term assets so that's like how how it look like and as a whole we have car factory and we have time band amm as a whole we be n Finance so again we wanted to achieve like on boarding of institutional player within C system and we want to help the grow of CVUSD and what we can do for that is that we can enhance the stability of the eeld of CV USD as as like derivative Market or interest rate Dera Market gets make feedback to like E Source let's say a for example so it will be stabilized and users can easily take levage or like institutional players it's more for them it's going to be easier to um utilize Ser USD as it it works as um e curve within defy and we have preed round backed by like Michael from curve and a lot of um CL families okay and also we got recognized on C cup newsletter uh Mr blog YouTube channel and the Rama Community call so we are slightly um getting acknowledged inside the C ecosystem that's what we've done so far and so again we finished fundraising and we are working on test net right now and we'll be releasing uh the main version next year yes um that's pretty much and I was thinking of like having discussion with Martin but before that I'll if you have any question I so happy to answer with that yeah I mean if not it's fine thanks for [Applause] attendance what should we do I don't know it's I guess so you want to do it know it's prti yeah sure um you can this thank you hi so you know here's Martin yeah hi hi you can do introduction of yourself so I'm uh contributor to cve currently and I'm one of my task is to uh the main task is basically to get to curve USD adoption basically that's what I'm here for and what I to try this to try to try to achieve this I um talk to protocols and uh people building on curve basically because that's how we can grow our ecosystem that is our main thing to grow because we as a um a dow it's not scalable like other organizations so that's the way we do it basically so and yeah thanks and yeah Paul will you do your Workshop later if so I don't know no I if so then like you want maybe maybe if there's some time and and some uh yeah I should announce it if there's some time and and some people showing up I will do a workshop on sure how how you bribe um how we how we use our ecosystem the best to get the most liquidity out of it basically or yeah I talk about C Steve any question about this one so sure then we could talk with let's say um do you have any like specific and doesn't have to be specific but like what kind of thing you want to see and from like project like us within the cover existent like what generally do you expect so I think we we try to be like a neutral somehow neutral layer so that everyone can build on us and it's permissionless and that's also the the the thing yeah we are here for he said he should be coming black so um I think for us it's it's we should just allow and and support projects or protocols who build on us um but they you know at the end it's also yeah we want to get more Cur USD adoption that's one goal but of course as an amm we are just a b a place where the liquidity is for trading and anything which helps us to grow the liquidity is like the direction we we support things yeah sure sure then like so you mentioned like deep liquidity Ms yeah for sure so actually that's why we build nap on cve right yeah so like what I think is like um good benefit uh building with curve on or on curve to um for like projects like cost like later project so you mentioned like deep liquidity and like could you explain a little bit more like if you have any others you could explain that as well I think we can like provide the thing is we already L reach like a stage where there many other projects buil on us so there's some kind of network effect in in this [Music] um Community basically so there like so in a way projects can like also like make some operation between them and all the things um we we have we also have many projects who build on us which we we just do it themselves May some of them but some are more I think if if it's really like a basic um how say um building block mhm and it can be done on curve and it's not existing on curve yet then it's for us it's yeah we we support that because then curve can be used in a different way and we also as a we can we have basically one interface that's like the exchange interface and the others um the project build different interface to the same technology basically and we can't do this ourself because of different reasons we don't have the we it's a good way to have other Builds on us because they see a different Market than we see because we are mostly in the amm yeah and ston bus basically or liquidity business if you say and that I think that's the the goal I get it I get it so like yeah obviously We've Got Deep liquidity as well as like strong Community or network of builders that actually sees value of curve in from different perspective and they might see different things in our project as well so that kind of connection or like in know strong network is allow us to be like strong bit Man Lego right yeah cool and what I think is like the key factors or for the growth of C USD um yeah yeah there there we have like a similar I would say strategy in a way um so we try to create like you see you it's called Supply sync basically so you try curve USD into protocols because then it's like it it it slowers the velocity of the of C USD and it's also like it stabilized the system at the end because it can't just outflow like in a second so it's it's it gets more stable in the sense that um if it starts contract and people want you know like leaving the system it takes some time it's not that our system should be very resent to this or you see is quite resent to this all of this factors but in a way um that's the one thing and the other thing is that as as a stable coin you want to lie it should be yeah you should have as much possibility for your stable coin to use it anywhere you like basically so it's like also that it can have a um the more places you can use the stable Co the better quality it has in the sense of usage basically so that drives adoption I see I see so yeah for sure like better um demand stabilizes like all those things that you mentioned and yeah I get it um like do you have any question if if you happen to yeah should sure please yeah he afid you know you're the only one yes yeah you mean not to compete with dat I mean I I really you know that's like it's not I think the system is is better than maker maybe make people now will hate me but you know it's it's it's it's not it hasn't it has nothing to do with maker but meer has been very early and has a lot of technical depth basically and this is like yeah it's a new half a year old so we have a l lot of less technical depth and these are the reason why also the space of of Designing such currencies uh decentralized currency evolved very much last few years B and me has been very early and this is the reason why they have like uh yeah they have a different issues it's a wrong term but what people don't see outside you know it's very difficult to to change such system if it has a lot of liquidity in it and you don't own the liquidity so it's not that you can just migrate stuff so it's just sitting somewhere and it's not an easy task and so I think and the I you know that that the main thing is really as I said he want to be the blood of defi basically somehow you know and because we have an amm underlying we already have a liquidity we own the protocol owns like the liquidity of many different assets basically so and the the other thing is we are much more open than maker is but and the main reason is you know everyone can open as usd/ whatever stable coin pool and this is also where curve shines because curve has the best technology for amm it's like maybe you can have you can tweak a little bit maybe that we will see some more innovation little bit but it's really you can't innovate this model much more I don't think so so we have good technology for for for an underlying technology and we use it for our curve USD because without this amm in the botton we could never be that stable it would not work basically and this is like the the the thing yeah it's different you know it's just it's a different time it's now make us all has quite some um history basically so our place as a as a as a as curve we try to work with protocols basically would then use curd for in their protocols because we we we will not have like some retail we don't push it to retail it's not that we don't we would like to have every user basically but at the end uh maybe centralized exchange are going to list us and then that's fine or we like that basically that's really but in a way yes that's permissionless the permissionless side and I also like personally think that so you know so we are building nap here I'm I'm not to sure if you know but like we we're basically building a trading on top of curve so we will Sur having you know pull of you know P where we going to trade the interest rates of C USD in the future and if you know if like if it works pretty well then that might be like just random idea though but so there might be a project that take strategy based on like C USD yelds and our eeld having let's say uh stabilized you know interest rate on top of napia and they can take leverage for example and that kind of Bolt can be built that so what I want to say here is like the the Builder base or like the number of project within the system actually could find like new strategy or new utility for C of USD and probably they can get benefit from like you know Flight View where you know users have access to um CV CVX those you know emissions so this huge you know cycle will be you know like I mean building on top of curve makes difference in the future that's like how I generally think yeah you can ask more questions thank you so much for that 's not you know this has this work has been done you know others should use the basically underlying amm so we we don't I don't think you know I speak for the curve I'm a contributed curve now so I can't speak for all curve that's just what I'm seeing so so that what we will do because you CD has two innovations basically maybe three why one is the pack keeper so it's very very it's able to to keep the pack very well you know if you look at the it it's it's good it's good product the thing is just that this one I think it's it's like very well solved I don't think you there's much better way to do it basically and then we have the liquidation who is like differently built and the core idea of the liquidation is that um I you know it no so um if you open a position you can choose bands this is a little bit like the ticks in Unis swap so you every position can you can open it and set your bands how you like it basically and what you do you make like um steps where it's where it's like soft liquidated and the soft liquidation is simple if you have a you have one e and you draw like uh now I know 180 Cur USD so you're quite close to the liquidation point or ratio so now the price goes down so your position the E is sold to curve USD if it de back if it goes under your um um how say liquidation reso basically and what it does uh it sells it to position is sold to curve usdc and this like a soft liquidation we call cation the reason is why if you go down you lose you pay some fee on this or I think it's also some part of like imper loss you you pay for in a way yeah I think you can look at this like this so and then afterwards if the price is recovering you buy it back you again you buy you buy buy buy back e with curve USD see so you don't get liquidated and many other Protocols are most I think every protocols it's just you reach a point and then your collateral has has gone and this is like I used some of these um protocols and then what you do you set a high ratio because you don't want to get liquidated at the end you know so you set your collat ratio very high as a if you don't like yeah don't like the risk basically so you end up if you now afterwards you look how is the total collateralization for um if you you sum up all the pools you see it's like very much over collateralized basically and this system is just you can just put it very close to the liquidation point it's more Capital efficien at the end because then you go into the soft liquidation it recovers if the price recovers if not then at the end of the band you're liquidated normally liquidated in a way that your positions get sold and you lose your asset your collateral basically it's the standard but it's just at the bottom and to finish this up if you look at this mechanism with the bands it's also useful for landing markets and that's I think that's what we do next basically because we we will mint curf USD only on mainnet so and if you want to drive adoption in other on other chains the way is that we V or users Bridge it to these other curves and then there's a landing Market where they can give where you can your assets and then land it out and it will perit two from this soft liquidation because it's the same problem basically and we solved it in a novel way I would say so that's the next step now yes you know we have on the collaterals there are some there's some how some ceilings basically so we do risk some kind of risk um not we we have contributors who who who make propose values for the things basically and that's what you should do because now it's like how how has it started I it's July this year or I I don't know when C USD came to to the world you you know it um the date yeah I think it's July this year oh it's old no it's much older that's really I should know that but where you did see um it's a relatively new system basically and if you look at this stuff in a way we are now we we have been a boring you has been a boring trading phase not a lot of volume price is going more down than up sometime now we have this going up and if you look at all the system growing is for most of system easy and and there a the reason the reason for this is as I told you the the upack it's easy to solve in a way but shrinking is much difficult to do it in a good way so that's the so now we have we have like tbtc vbtc sttc uh fra Etc and one more I always forget and the thing is you have some ceilings on this so the maximum is all the ceilings they have right now but theoretically you can just open it up and say but it's not filled you know I think none of it is like filled right now so there's not more demand so it's okay mhm yeah you have question too you have yeah yes you lose yeah yeah you are more than this yes yes there's like a dashboard on on K slaps chos laabs if you if you search like chos lab usdc Cur usdc you can see single position from people and there's a is a graphic representation MH and there you see how it's how it's sold to curve USD and how it's bought back and what's the loss on this so you can it's it's it's not nothing it's subst sub you lose money if you go into soft liquidation it's I can say what I did see is like yeah some some of the position has like two or 3% loss if they recover but it depends how deep you you know go down basically I guess the more you go down the more you you lose basically but this is you know we are building in a way for ourselves in a way that we are like if you have E I personally I don't okay I don't like to lose e somehow but it's way better to pay like 2% than to get liquidated basically because it's a very it's a it's a very um it's a it's a good top tier asset and I don't want to lose it yes myself um yeah of course but you have that's true but yeah the issue is with this that's many people are going to leverage with this so you take one e you take one out one and a half thousand Cur USD you buy e again so now if the price going down maybe you have some cash somewhere else and you can pay pay pay back but maybe you can't you know of course if you get fully liquidated then you you you have the two e or not the two you have some eth and uh yeah you keep the E basically so this is leveraging sard leveraging Bay and you can leverage it to up there's like a slider on the on the interface you can choose your leverage basically and then it just uh creates e who is then you don't get any curve USD it's just leverage inside but then you don't have the yeah that's what you say this is just more I would say you can do that I did that too because I have been liquidated other occasions yeah you just buy it back you can do do this yeah but it's not convenient basically you're somehow yeah that's one you can look at this but that's a a quality but and if you really leverage it up then you don't have the money to there's no money there to to to get it back basically so so the question is you know the right question is is more what happens if all the Leverage is deleveraging you know what what how is reacting this system then I think this is the yeah this is like the so this is also the reason why I guess every new stablecoin any kind of stablecoin this fresh design should at least have one Cycle One make one full cycle before everyone can say yeah now it's really sound I believe it's quite sound but you know it in a way it's similar to liquid it's the design is not it's it's completely different design and and so on but you see it should just St self self stabilized like liquidity did the last few weeks basically and this I'm very confident that K us is able to do this so but you never know you know we did see many uh Sudden Change in Market sentiments or or and big drops um I don't if I have yeah that's the case yeah of course you have to pay for this in a way I don't the thing is I didn't use it for leverage you know so maybe I should because then I would see uh yeah what's what's going on and I don't think you see that in in in in the data uh dashboard of of C laabs but you pay the same price as you know it just it's a price on your how do you say on your um Capital it's the same fee yeah oh what do you mean by fee you mean fee for trading or it's not the fee you pay on on soft liquidation no no that's it I think you can't name this a fee I think it's just more part of impermanent loss you you you make basically it's not a fee it's just um huh it's just a loss it's just a loss we don't take we don't earn money on this yeah but yeah also if you're not leverage it's the same yeah yeah of course it can be differenty as easily asid [Music] it's yeah maybe I guess like the the aim of having soft liquidation doesn't really um give let's say um like other traders to um give them like more opportunity to liquidate but rather it's more of like you know having more stability layer let's let's just like it's more of like you know um so um I don't know how to say but there used to be like you know um as he explained there's some condition and when it reached it's just liquidation but the thing is like even though it hits the condition it's not fully liquidated that that's like you know key difference and it's it's not like you know having condition much higher so that anyone can quite easily liquidate whoever the person is I'm not sure if that makes sense to you but yeah maybe we can look at we can have a look at some uh position we find here you don't see if it's yeah yeah maybe that's yeah this this one oh no this this is the uh yeah this is like the the marketing it's public somewhere I don't know the address no there should be link for this kind of view right yeah I know that but I don't remember all EX example of this where can I no go back to the Google search you find another yeah it's not so maybe we could find some link here I I did search it on Twitter last time I didn't find it yeah because then it shows up it's public but somehow they they uh they um hide it oh they ask us to Lo in no it's not du this is not mine unfortunately I can uh look shortly just a second please stand by yeah no it's the same ah Community do uh Community yeah Community do c laabs communed dock C Labs doc yeah XYZ XYZ yeah right yeah this one what's the strange eye you have a strange ah yeah you have this Turkish I without thank you thank you how can I do that where's the normal [Music] one ah yeah okay yes no community no not dogs dogs no Community this is also Turkish no no the dock where did you get the point yeah now now remove the the dock okay yeah now it it should now try again oh yeah yeah we made it was tough task but now nothing is show up it's not showing it has no it's just a a blank it's a blank it's a black page it's so you have to add some uh maybe yeah some pars there maybe C USC or there's some yeah they hide it very well maybe give me a try no this isn't a link no I did find it on on my but I don't see the that's really not you know ah c d USD curve that you see yeah oh no curve not not no curve without the CV CRV CRV oh I see C RV dash dash no not slash Dash you know like a yeah now we got it and USD us yeah oh yeah yeah this one yes oh fin o so here you see all the collaterals um maybe we could go the liquidation yes if you go to liquidation and then you can um filter out positions maybe yeah these are all the equation which happened basically so if you go to uh I don't know maybe you can click on the wallet no it's external which one now go to the risk Explorer risk explor yeah that's it's a nice dashboard because you can say now which asset you have maybe make make e or something you know at this asset the asset it's here is the asset change it to Ether yeah yeah exactly and then you can give in a how much the price dropping so maybe make 10% and then you see the position which are in Risk yeah already now you see so you click uh maybe this one yes so these are both position are in a soft liquidation and here you see quite well what's happening you see first um yeah you had like you was collateral that's your frags on there yes SC it's SC down so you see you have just to the guy borrowed this amount of of uh usdc like almost 100K basically and he has some amount of frags if if you go up again you see the frags he had at the beginning is like 68 frags he had and then the price was dropping and it sold against the curve usdc so these two curves are some kind of mirrors you know they're they're similar basically so he went into soft liquidation and then recovered a little bit and then I don't know what happened there that's strange yeah but you see the loss if you scrore again little bit down you see the loss this is like the the percentage loss he took on the position [Music] and this Gap I don't understand what he's doing there yeah but that's that's how it works and here here you see the liquidation range so he's a he's uh still in liquidation soft liquidation scroll up again please you see this part is still in the soft liquidation basically so he he's very he he draw a lot of um he was he started the position very close to the liquidation point so he's still in in in in soft liquidation mode and the loss he has now is like two and a half percentage so I don't see the it would be helpful to see the price you know but I don't see if you see the price of the asset somehow if you scroll further down it's some more information where down if you go more down down yes fine yeah this is just a collateral and this is like you see what he did on his account basically so this is the I guess the easiest way to understand is what's going on and then you see he will if the price going up a position will recover and then he can pay back his money get back the e c USD get back e yeah so you you have any questions you just arrived no it's just about C USD in general and cve basically yeah we was talking about like our protocal napia finance which is about a trading then um can so we wanted to discuss about like C USD utility or landscape in general so yeah could be in general or could be more like trading or whatsoever you want but you stable coin you also here for the S coin Summit you you you are you are here for the stable coin summit summit mhm you have any questions about St coin if you have any or you you know something about no pardon yeah that's not I I will try to answer it so it's not okay okay yeah so I guess we we finish this uh yeah maybe so shall we close the thank you for showing up thank you so thank you so much