DeFi Derivatives Innovation - Current Trends and What is Coming Next - TOKEN2049 Singapore 2024

hello everyone good morning thank you for coming to a presentation this early in the morning I know waking up before 10:00 a.m. is really hard on a week like this so again really appreciate you all being here today so I actually spoke on this stage last year and it feels really good to be back again this year I would love to talk about defi derivatives and and all the trends that are happening right now and what is coming next some quick updates on what's happened this year for us as Sega and both for me personally 2024 was a big year we actually hit 500 million so over half a billion dollars in volume on Sega obviously everyone here knows that we've got the ETF approved which is a huge win for this indust indry and lastly on my personal life I had a baby thank you and all of this has made 2024 one of the most exciting years for Sega last year in this conference we covered the value of defi options so we talked about how defi options are amazing because they have flexible payouts you can choose custom metrics you can have packaging tokens you can do a lot of risk adjustments we also talked about how defi options could increase liquidity in this entire Market because if you trade one defi exotic option you're actually using vanilla options perpetuals and spot to hedge that position so it creates this flywheel of liquidity in the market and lastly we talked about the value of having a permissionless architecture in a smart contract that abs racts the middle office and the back office operations of a derivatives operation and so having the user interact with the smart contract creates this settlement and position checking life cycle with trust so at Sega we're super proud of what we have accomplished as Market leaders so we want to talk about defi derivatives Innovation Sega has really created this Innovation over the last three years where one of the older dii protocols now and we've done over half a billion dollars in trading volume and in our most recent launch of shark fins which is a 100% principle protected strategy we've gotten $2 million in tvl so to those of you that want to try out any form of defi derivatives you should access Sega and see what defi derivatives is all about we have structured investment strategies that uses the newest technology in defi to allow for a risk adjusted sustainable return on your crypto assets so what is actually next in defi what is Sega working on what is the entire industry looking at one of the most interesting things that I think has happened this year and that everyone is talking about right now are these two topics the first one is trusted execution environment this this concept is basically coming from the years of Internet Evolution and Hardware Evolution but trusted execution environments basically allow for any user to access the technology and they're able to trust the entire process completely and know that it's going to be not touchable by any third parties or any form of attacks and so we're going to to create Sega contracts that allows for any trades to happen in the market any form of customization that a user wants and intermediaries including Sega cannot touch this contract so we will be able to have institutional users family offices High net worth individuals or even retail individuals access Sega choose a trade they want put in the premium and send the link to another person where they could accept the trade or reject the trade and it will create this automated settlement operation flow that will allow you to have a completely autonomous trade and the second defi Trend that we're really excited about is some something called intent based staking so for those of you you who have heard of intents I know you're really excited about it because For the First Time the user experience is going to be abstracted you're going to be able to access a dii protocol and instead of having to read really really complex smart contracts or read 50 pages of documents you're able to indicate the result that you want and the protocol will automatically allocate your ass to the risk appetite and the results you want so something super interesting that's going to happen in defi is you're going to be able to go to a defi protocol you're going to indicate the results you want what kind of assets you want to stake what kind of returns you want to make and in the di5 protocol will automatically create a portfolio for you that no one no human is able to touch and it's going to automatically execute the strategies and you're going to get the return that you want it's super super cool and so this intent-based staking is going to be a new technology that's also going to come out in the coming years and not only that I want to talk a little more about what Sega has already launched last month um actually this month we're launching the Vault C market so in the past when you go on Sega and you stake into our strategies every one of our strategies is one month long so the strategy was actually locking up your assets for 27 days but now you're going to not have that lockup anymore you can stay on Sega and when you have the position token in your wallet that position token will have a market place on Sega where you can trade that token buy and sell and get instant liquidity we're also in chats with lending and borrowing protocols and other form of reaking protocols to be able to use your Vault token as a collateral for borrowing funds or you could also stake the restake the Sega Vault tokens to make an additional yield so super excited about this launch and then another feature that we have launched last month is called DCs rotation for those of you familiar with DCS it stands for dual currency swaps you can stake your usdc make a baseline yield and wait until the market drops 25% to buy ethereum now when that converts in the past you have to withdraw draw the ethereum from the platform but now you can actually set it so that it reakes into an ethereum strategy that converts into usdc if ethereum goes up so what that means is you can set a strategy to continuously Buy Low and sell high with your usdc and ethereum but what's really cool is that you make a baseline yield of 5 to six per % and depending on where you set your strikes it could also go up to 20 or 30% so this customization is one of our first steps into building our escrow system as well as our intent-based staking these are some new features that we've already launched but now I'm super happy to announce all the new features we're launching in the Q4 and q1 of this year so in Q4 we're actually going to be launching feature parody on salana for those of you that know the history of Sega we've actually started on salana I wrote the white paper for Sega in the breakpoint of 2021 and so it's really exciting to be able to come back to the salana community and build our Sal experience to be the best experience for def options out there we're also excited to work with base as we're a coinbase ventures portfolio company and we're excited to allow for SPL and BRC token staking the second feature we're going to be launching is a part of the trusted execution environment that I mentioned earlier we're going to be launching Sega ES which is a feature where you can set your own trades instead of having Sega choose the strategy for you and of course you can still have Sega choose the strategy for you but we allow for a greater level of customization where you can set the strategy send the link to either a market maker or a counterparty and it manages the entire life cycle management of settlement and observations for you and lastly we're going to be launching Sega intents the intent based staking feature will allow you to go on Sega and you can choose just the apy you want and the risk appetite you have and it will automatically allocate you in Sega and other defi strategies based on the outcome that you want so you no longer have to go through 50 pages of documents worry about the validity of some strategies we as a defi protocol that has existed for 2 and a half years with no hacks no problem and that have really sta managed our user funds we will help create the most optimal strategy for you in the end I want to talk a little bit more about my vision I launched Sega with the vision of creating a new Capital Market in defi it's really natural that right now the market is really divided into two parts you're either taking a huge amount of Risk by leverage trading on Perpetual protocols or buying and selling meme coin or on the other end you're super conservative and you're invested in um only reaking protocols or liquid staking protocols where you're getting a 3 to 4% yield below us money market rates what I think is really important is to create a product that serves the Middle Market between these Deens and super conservative users and Sega by creating the programmable derivatives strategy and technology we're making these middle yields accessible to everyone in this industry we will help you adjust your risk and we'll help you make a good yield and now with all the new features we have launched and have and will be launching you can do things like making exactly 20% apy on your ethereum with minimal risk you can create a bullet product when markets are up and a bearish product when the markets are down you can choose exactly the counterparty that you want to trade with like our Bellow you can diversify your bets across Bitcoin ethereum and salana automatically and these are all the kind of use cases that we're creating for every defi investor out there we do think that Sega is leading the defi derivatives Innovation and we're super excited to work with everyone if you are interested in learning more about Sega I'll be around this conference venue and would love to chat more about the product but um if you want to learn more about us online you can access sea. or twitter.com at seori thank you so much for listening to my presentation today