Securing Liquidity Ownership and Decentralized Token Vesting | European Blockchain Convention

foreign hello everyone nice to meet you all I hope you're uh you're enjoying the conference so far many interesting talks um before we did dive into the topics for today I just want to say that if we were to take a sip each time someone said FTX today we would probably be all Drank in this room so I'm looking forward to start this game after this conference actually um so today we're going to discuss about two things mainly decentral liquidity ownership and tokenvesting so just to to break down on why we're talking about this today I think that as an introduction um it is worth reminding that security is at the the center of the picture and especially more after 2022 because of you know all the conditions of the markets the different hacks that we experienced all of us in this room um so just as a background we're we're a unique Network so we're a Services Company B2B Services Company um all the tech that we provide to our customers are essentially smart contract basers is focusing around um trustless liquidity ownership and decentralized Stock Investing so there is no such thing as a custody in what the in what we provide to our customers and I think for you know maybe breaking it down to a wide week this and why we started with this um with this company and these stuff and this stack of services I think we can first and try to answer together this uh this question that is where can liquidity be found for a specific digital asset so we have many two places so the centralized exchanges so all of us know for example Kraken binance coinbase this is where you can find liquidity for digital assets thanks to Market make market makers and different Market participants and then you also have the second part which are the decentralized exchanges so mainly what's happening on chain so here we have a few examples so we have unisa V2 unisa V3 and curve curve being maybe not the one we're going to focus on today because our use case and and the pool that we're going to use as an example for an automated Market maker is a uni swap V2 base so how does liquidity on automated market makers work so say you guys create a token today let's call it ECB or EBC European blockchain convention and we want to pair it on a decentralized Exchange so what we're going to do is to supply the liquidity on uniswap just whoever used units web here okay that's quite a fair bit whoever got rag pulled okay some sorry guys um but so so the first thing that you need to do as a token developer or as a you know the responsible person for supplying the liquidity is to provide ethereum or a stable coin and your own token in this case I used XYZ and once you put and you supply sorry uh these two Assets in the liquidity pool at a rate of 50 50 which is uh how uni swap works then the liquidity is represented by LP position which is in the universe V2 case fungible right there is a supply and in the case of unisa V3 non-fungible because the liquidity is nft based on unit swap V3 right um and what's important and noticeable so far if you compare you know the decentralized liquidity to the centralized liquidity is that the lp positions are owned and traceable meaning if I am the one that provide ethereum and XYZ in the pool I get the liquidity provider position sent back to my wallet and so far I am still owning this liquidity and well for those of us that have been rappled you know that for example I could be malicious and remove that liquidity from the pool and leave users with a worthless and untreatable assets at some point so this is our take as a company and as actually just as an investor as well or as you know simple D5 users we believe that decentralized liquidity should not be owned the same way as centralized liquidity otherwise like does it really make sense right if you want to go to D5 way you should go the D5 way but not by 50 right you should try to achieve what we would call in this case the trustless equity right so that's why we came up with this ID what we call the liquidity locking so the liquidity locking is essentially a protocol that will remove the ability as a liquidity provider which in 99 of the cases is also going to be the project owner um to unexpectedly withdraw the liquidity from the pool and it's not anymore about someone you know having a white paper and saying hey guys I come with this IDE this is my token could be any one of us right um I have this ID so please please believe in my ecosystem or my promise of future value creation proposition so I can say hey I have a white paper and my token is going to remain liquid and tradable for two years and this is because it's mentioned in my white paper that's one thing now our take is that you should prove it on chain because I believe I we believe as a company and as an ecosystem that we're still just humans right and as far as I am concerned and as far as the market is concerned apparently over the last year greedy is also part of our DNA so if we can you know remove this ability from people's hands whenever it's necessary or just you know to have everyone in the community being assured that this is never going to happen thanks to these kind of services why not just do it right so what is concretely happening when you lock liquidity so remember you still you're the token developer you provided liquidity on uniswap you're still owning what is called the lp position right but what you're going to do now is to store these lb tokens into a sorry trustless small contract for a set and renewable period of time so essentially what you're doing is you take the lp position and instead of keeping it to your wallet you're going to send it to somewhere that is traceable on chain and that you're insured by a smart contract so that means it's immutable unless ethereum gets hacked right and you know that it's not going to move so your token is essentially going to remain tradable for a predetermined period of time of your choice or of the choice of your community that's where when it can also becomes interesting because you can pull your community about it right beforehand um so if I just you know summarize with the scheme we have the ethereum XYZ pool uh you take this LP position and you store it away and you store it away with of course flexible features because you can always split the log because at some point if you list on a centralized exchange or if there is XYZ good reasons that you need some of the liquidity you have for example if you go cross chain you could also split an existing log you can relock for a longer time this kind of stuff um and then the I think one of the main uh important Point here is the data integration because say you do that with either our or any other because we're not the only the only provider as a company right but if you do that then you might as well want to make sure that your community and future markets participants are aware so that's when the data integration comes in we're going to comment a bit more on on this aspect later but the ID is to let people know that hey we use Security Services because we're taking this seriously right and we want our investors confident about what we're doing especially for uh Anonymous projects right you still have some Anonymous projects that are launching nowadays because of you know jurisdictions or geographical reasons many reasons can exist and you still have Anonymous projects this is a must for anonymous projects in my opinion and then you also have something else that is quite tied to liquidity locking that is called token investing so token investing if we read by this definition says that it's the process of locking and then Distributing tokens entering in circulation so if you take the example of apecoin I think everyone knows apcoin right they said or actually necessary misery.io which is a analytics toolsuit said that a launched was roughly 20 of the supply was unlocked etc etc but this information for example just came from a white paper we do not know anything about it it's just it's written so this is how it's going to happen and then if you check on chain what's really happening you can say that and you can clearly see that everything is manual which in our opinion is not something that is the best practice from an industry like if we want this to go to the next stage in terms of adoption for example as an industry we want companies and projects to use the best practices and we have a chain allowing to do that so why not just do it right and it goes for any type of token and any kind of part of your supply so just you know to be clear say you have a token pie there is 100 of the supply 20 goes to marketing 20 goes to the team 10 goes to whatever else purpose you can basically vest these tokens and store them in the smart contract that is trustless and when I use trustless I just want to emphasize here that we as a company provide the tech but as far as you as a customer use Arctic we don't have a say or super user or admin privilege to say or to finally change the vesting ourselves or change the conditions the ratio of emissions that's all up to you as a customer and that's also immutable which makes it very interesting because there is no such thing as a change of plan for example and I think this slide is pretty self-explanatory so we've been on the market for like two years and a half now and as you can see we had a lot of let's say a first bump of adoption services wise because of the bull market of 2021 which is kind of expected right as a services provider and then the bear happened but as you can see we're basically reaching all-time high interval Services usage so what that means is a it's not about people suddenly have new IDs that are going to change the world in our opinion again but people care more about security right it seems clear that now people investors and either retail or um B2B Investments like VCS are more careful about security and that's what we can see here with anything that is displayed by the way comes from the chain um so we have way more users and and sorry and customers that are interacting with the protocols nowadays um and that's that's also thanks to the data integration because if you ever use such Services it can be reflected before it used to be only reflected on chain and on our app but now you can check all these data on tools like dextools coin gecko terminal um zirion dbank I think this is bugged Finance as well and coin stats where you can see all the vesting schedules as well as if the liquidity of a certain pair that is listed on the decentralized exchange has been locked yes or not and it seems that now more than ever investors look for on-chained tokenomics which is again kinda expect it because people are taking these more and more seriously when it comes to security and again when it comes to Securities there is no such thing as an Overkill so just you know kind of to to uh to um to analyze Enlighten us ourselves in this room about the a few metrics in terms of services adoption we had the chance to serve 23k customers when it comes to liquidity locks over the last yeah two years and a half because we developed one service after another and this one would was the first ever reason we existed because we had to do and to use it ourselves because we were Anonymous for one year so if we wanted to you know to explain to people that we were creating the service for the sake of more transparency over the crypto space well we had to also be the first users of our own Tech right um and then we also had like 65k token investing uh like basically calls of our smart contracts related tokenvesting so it's and it's very much accelerating by the end of this last 2020 to um 20 22 years sorry and in terms of what does it represents in terms of liquid value it represents the product apparently sorry approximately 240 mil which is kind of substantial right um because we're like let's say rather very small actor when it comes to adoption um and when it comes to awareness about these Services however you can see thanks to these um these metrics that people care about security and that's a that's not small metric when you when you think about uh um when you think about the fact that we don't communicate about uh about you know from a b2c perspective we don't do any form of either marketing or communication these values are pretty much very organic and that that is interesting for the bear Market to be fair we're kind of surprised in a good way and that also is alarming us to that we need to focus more than ever on security when it comes to Services right that's where we stand uh as a company today and that's pretty much it I just added a QR code here in case you want to check what's related to vesting what's related to liquidity logs if you have any questions um because yeah to be fair I could continue talking for hires because this is like a true passion here I'm sorry maybe I took a bit fast as well but yeah thank you very much and I guess enjoy the conference thank you thank you very much Antoine