Wei3er Hase - The Future of Stablecoins Innovative Collaterals and Tokenization

baby [Music] hello everybody this is vicer from D5 Wonderland and I wanted to give you all a couple of breakthroughs that I had since my involvement in the development of high so high is the short effort between defy Wonderland and reflexive Finance to bring you the third iteration of cvdc stable coins the thing that brings us all here is the symbol that I have behind but the thing is I am a mechanical engineering and it's a kind of Applied theoretical physics so we didn't saw this symbol a lot in my class but I remember this one assignment that we had that we had to plan and design a factory and my team got the assignment of building these wall plugs and this was the first time we saw this symbol and I remember at mid-semester we came to the teacher and we said like okay we need this money up front we need this money to pay for work for Force for electricity for machines and he answered like okay but do you have that kind of money and we said like of course not and he said like well then you need to rent money then if you were making these wall plugs for a 10 cents above you can rent this money as well as you are renting the place they work for the electricity and you'll be going to be making these wall plugs for 15 cents a plug so but that time in my naiveness I was very strange that you can rent money with money my face resembled what you see in the screen so because I used to think that the total wealth in a system was a fixed amount but I needed to refute myself so I needed to go back in time and try to understand What's the total worth of a system was like before Banks existed so if you take a look at this you will realize that from the perspective of each of these animals if you put a quote on bananas and carrots they would see the total system as twice what they have but the interesting part is that when a sloth comes with just one avocado this multiplication is also made and each character is in triple the amount that they have so for me this symbol is not a it's not a scholar Dimension it's a vectorial one because it behaves like multiplying itself in the amount of Dimensions that we have so where how can we go from zero to how long how can we go from having in a bank to something more than that so I went into this exercise and I said like okay we have these Factory plants we put them on a bank we receive the coins and we as Engineers try to isolate and Abstract everything as much as we could and I realized that in the end of the day the bank had already the 10 coins that he landed because the workers were depositing in the bank and now the the bank has also a piece of my factory and now the bank has a stable income a month because it it's collecting the interest that we pay so in an isolated environment when we look at the factory we will say that a factory is worth it it's adding value to the system only if the income that the factory has it's bigger than the interest that it pays so this is very interesting because we were trying to plan this Factory like a very lean and cheap and we didn't realize that we could also like ask for more amount of money and raise a productivity so in a way there's a balance in the productivity that we can have in the interest that that we are paying uh that would in a there's this ideal case that the interest is equal to the income that we have and we will never settle this debt with the bank but we will create something that is worthy that is adding value to the to the system so in a way I can we can say that The Virtuous circulation of depth is what makes ads value to the system and in the eye way around is if the factory has a productivity that is lesser than the interest that we are paying then we can say that vicious circulation of debt is what make a money disappear it's what it's they think of wealth so I wanted to share with you a couple of breakthroughs that I had and the first one is that banks are not made to store value banks are made to take Leverage the second one is that we can choose whatever frame of reference that we have so we can align the risks that we have to a leverage that we have so in a way if our Factory is only paying for electricity it will be good that the depth it has it's also packed to electricity or if you are taking a mortgage it would be good that the installments that you that you pay are related to the inflation of the country that has and the third one is that you can choose to borrow or lend money with any year C20 collateral that you want so what are the possible collaterals that we can take so the first one would be other stable coins the but then we have like for example governance tokens how how do we measure the value on that and we can measure it as the Boating power that this governance token has times the US assets under management that these governance has so something that we are implementing in high is that we can also collateralize delegated governance tokens so it's not only how the potential voting power that it has but you also get the voting power as well another thing that we can collateralize is a state if that is kind of a governance token for another chain that it collects interest in the same amount that we deposit with time or some experiments that if I have that univ 2 I think is a very installed experiment and it's been working all right and you can say that the value of each of these coins is related to the value of the underlying coins that the position have minus the impermanent dose that the position may have with time one of my favorite experiments up in indify is float Capital where you can take a leveraged position on any two tokens that you want so you can choose a multiplier and the value of each of these coins that you have is related to the difference in change of value from token a token B times the multiplier that you choose to have a the interesting part of this experiment is that the users of flow Capital never are in touch with any of their underlying assets that they are taking leverage on now there are another experiments that many very few people understand that one is for example Timeless finance that when you deposit some token that it brings uh that it brings a yield uh they divide this token into the positive yield that it has and the negative yield that it has so the value of each of these coins is related to the difference in yield with time or minus the difference in yield with time or this is another thing that a poly Market lets you bet on anything that you want so the value of each of these coins that you get is related to a probability of this event happening times the people that say it will happen and the people that say it won't now this is interesting from a hedging perspective because if you want to collateralize a farm and you say that your farm is going to go okay if and only if 100 days a year of rain happen then you can have a hedge Farm if you bet on a contrary if you bet that it won't happen so if it doesn't happen you have a stabilized value now I don't know why everybody anybody would do that but you can also choose to lend or borrow money for bad bets now if you find this a little bit funny at least I guess that you are not from around I guess that you paid in advance for a ticket to climb on a plane like you pay the ticket a couple of months before to climb on a plane and the truth is that none of you paid for the ticket at a fair price now what's a fair price for a client for a plane ride now I want you to think as this Factory uh for the airlines like try to think what are the assets that they have what are they leveraging what are the costs and risks that they have and try to think like if there's a possibility of building some coin that it's packed to a plane ride or easier beer is made of out of four ingredients how do we can we create a system that stabilized a coin that is worth a view I'm not saying that all of the plane rights should be the same or all of the viewers should be the same I'm saying that maybe there are a couple of individuals in the ecosystem that would be benefit from having a coin like that because in a way there is no isolated economical system the factory is in the bank the bank is in a country and the country is in a higher entity like that but my point I want to make is that we need more stable coins but we don't need more dollar coins because by choosing always the same frame of reference if you look the whole system for from far enough you're going to see that the whole system looks like that thank you very much [Applause] and we have time for some questions if anybody has one are there any good examples of implementations where people are building coins specific to an industry or use case or problem uh I think uh when I try to think about this it's uh not in crypto maybe but the mortgages that some countries in development have to um to incentivize people social housing that they choose to have this depth that respect to inflation that the country has so in a way we are choosing sometimes like things that are not dollar and you we're choosing like to have a different frame of reference to take this path to take these pets and people are being being benefit from that is there a use case in crypto that you think it would be a good one to start with or a good industry to start with uh that's a good question all right I'll talk to you later there's one how do I say like mobile internet uh basically so so basically there's one one project in Africa that tokenized uh your your sim card where you like the data volume that you can consume basically and and yeah they do it like on chain they have an erc20 token where you have okay um this is IOU for 10 gigabytes of data basically I forgot the name of the project but but stuff like that could be and there's also a live that I think is relatively new that is a paying their coin to um Bitcoin difficulty because in the in some way it's similar to the electricity costs that it has um I just have a quick question or I don't know where it belongs in the slides but I think these formulas uh probably great but then the aspect of perceived value like a humans eventually we're humans and we decide with ascribe value to things you mentioned op token for example you're trying to kind of like probably value it in a way or something depending on the voting power and delegated whatever um but then there's also the perceived value of the community of holders for example the token holders but the community how do you create a formula to measure that because I think that's extremely important especially in D5 and blockchain you see like communities clustered around a project because of the token and then that actually actually increases the value of the token not only because of the Holdings also because of the value the perceived value by by holders and I think that's extremely important it's not necessarily something you can probably like um measure it objectively but I think it's important yeah I think like that's the perceived value is how you choose to to to have your frame of reference to say that this token is worth more than this one when you compare it with another one it's um like there's no absolute value on anything on in on any system like this is this symbol is just like an imaginary thing to to say that something is worth more than than the other thing so it's a it's a way of how you measure it and and what's the Oracle that you use to say What's the value of that I think we're almost out of time but maybe you could tell people just a little bit about high if they don't know um and what the frame of reference is for that okay as I told this uh iteration like it first came die that is a dollar picked coin and then it came dry that it's a fork of die but it's not back to Euler back to to to itself and then we have die and then we have high that is going to start with the price of one dollar but it's supposed not to it's a free-floating pair as rice but just multicolateral thanks and uh yeah [Applause]