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The first roundtable forum in the morning was hosted by Mable Jiang, partner of Multicoin Capital, and discussed around the current hot DeFi. The guests were: AlphaRay, founder of Raydium, Eric Chen, CEO of Injective, Yutaro, co-founder of Orca, founder and CEO of Volmex.Finance Cole Kennelly, Sam Kazemian, co-founder of algorithmic stablecoin FRAX, and Dan Thomson, head of marketing at InsurAce.

AlphaRay believes that Solana's research and development is more solid, and the asset transaction speed is faster than BSC, so he is more optimistic about the future development of Solana's ecology. AlphaRay made a metaphor, Solana is like Tesla, and BSC may be another form of business.

Sam Kazemian said that the Solana ecosystem will be launched in the near future, and he hopes to expand to other public chain ecosystems in the future, with the goal of reaching a transaction volume of 1 billion. "Our basic goal is to improve everyone's capital efficiency, so that everyone does not have to be restricted by complex agreements, can further improve the efficiency and speed of transactions, and can reduce mortgage rates. These needs also require better agreements. "

Eric Chen believes that Cosmos is a more suitable ecology for the current Injective, and its overall transaction volume has reached tens of millions; in addition, the Polkadot ecology is also worthy of attention and has huge development potential. Eric Chen also pointed out that the development trend of the public chain ecology in the future is cooperation, integration and coordinated development.

Yutaro believes that public chains at different levels have their own advantages and disadvantages, but they all play the role of public chains. It’s just that the needs of users are different, so they will have different evaluations on different public chains. At present, Solana also has some criticisms, but in Yutaro's view, Solana's development prospects are still very bright.

Regarding the views on DeFi derivatives, Yutaro believes that its advantage lies in providing leverage and improving capital utilization. And DeFi derivatives are not derivatives in the traditional sense, but AMM (Automated Market Maker) with capital benefits, which is an innovative product. "Orca hopes to build a better platform for everyone, so that everyone can conduct good transactions on Solana and improve capital utilization."

Kennelly said that DeFi derivatives have many advantages, such as the platform is non-custodial and highly transparent, but they also face many disadvantages, such as scalability, liquidity, oracle machine security and other issues. "At present, the development of DeFi derivatives is still in its infancy. Although the prospects are promising, we need to consider some challenges and disadvantages."

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Q1

Mable Jiang: Welcome to today's roundtable. I am Mable Jiang, a partner of Multicoin Capital. First of all, please introduce yourself.

AIphaRay：I'm AIphaRay from Raydium. Raydium is an automated market maker running on the Solana blockchain, enabling fast transactions, shared liquidity and ultra-low fees.

Eric Chen：My name is Injective CEO Eric Chen. Injective is a derivatives trading protocol built on Ethereum Layer-2, which can support the current mainstream derivatives such as perpetual contracts, delivery contracts and options.

Yutaro：I'm Yutaro, from Orca. Orca is a very user-friendly DEX on Solana. Users can enjoy fast transactions and low handling fees. At the same time, the price indicator on the platform allows users to clearly observe the transaction market price. Additionally, users love our adorable collectibles (NFTs), which are special tokens that can be earned by participating in the Orca ecosystem.

Cole Kennelly：I'm Cole Kennelly from Volmex, thank you very much for joining today's discussion. Volmex is an Ethereum-based volatility index and non-custodial trading platform. It has integrated the Optimism layer-2 expansion solution, aiming to achieve cheaper and faster index queries and futures transactions.

Dan Thomson：I'm Dan Thomson, InsurAce is a decentralized DeFi insurance protocol, aiming to provide reliable, stable and worry-free DeFi insurance services for DeFi users. Its features include extremely low premiums, stable returns, rich product lines, and barriers to entry Low-level advantages can provide DeFi users with guaranteed and profitable insurance services.

Sam Kazemian：secondary title

Q2

Mable Jiang: The largest DeFi is still Ethereum, but with the congestion and value overflow of Ethereum this year, some other powerful underlying ecosystems have also made outstanding development, such as BSC and Solana. Which underlying ecosystems are you optimistic about? develop? In your opinion, what is their differentiated competitiveness?

AlphaRay：Ethereum is definitely a good public chain, but I think Solana is a good choice, so Raydium chooses this ecology for development, and our partner Serum is also built based on Solana.

I think Solana is like Tesla, and BSC may be another form of business. There is a big difference between the two. For example, Solana has a solid research and development foundation, and Solana's transaction speed at the technical level is also very fast. However, they are all still in their early stages and will take time to grow. For developers, it is possible to reduce related gas costs through combination. Of course, you can also make different choices according to your needs.

Eric Chen：As a derivatives agreement, we hope to provide better infrastructure support for transactions. In the future, I think the development trend of the public chain must be collaboration and integration. We believe that Polkadot has indeed achieved good results so far, and will achieve greater development in the future.

We have also communicated with Solana before, but we prefer Cosmos and think it is more suitable for our ecosystem. At the same time, we will also integrate Polkadot to expand the Injective ecosystem. At present, the overall transaction volume on Cosmos has reached tens of millions, and can be further optimized through Injective.

Yutaro：Different levels of public chains essentially function as public chains. You may have different needs and have different evaluations of them. Many people will have some prejudice against Solana, but Solana does have a brighter future. I want to emphasize that many people pay attention to Solana's business performance, but ignore that it is also a public chain with high energy consumption.

Cole Kennelly：Although Volmex.Finance is based on Ethereum, we have also communicated and contacted with Solana and BSC. We feel that these public chains have indeed performed well, but it is hard to say which one will be the final winner. The public chains mentioned just now have good prospects in the future, and more importantly, make the entire ecosystem better and have a better environment for deploying projects. These different platforms will definitely be a trend in the future, and we will also consider investing in them. In the next two years, we should gradually expand to other chains.

Sam Kazemian：FRAX is cross-chain and runs on multiple chains, including Polkadot. We don't need to build our own different protocols for each chain, and we won't be restricted by protocols. At present, we have not launched Solana, and we are considering this issue. I hope that we can do better at the technical level and consensus level. Because if FRAX is directly on the Solana chain, there may be certain restrictions in these aspects, but we very much hope to expand FRAX to Solana. There are many successful projects on Solana, such as Serum just mentioned, we also hope to cooperate with them.

Dan Thomson：secondary title

Q3

Mable Jiang: The next question is related to DeFi derivatives. Currently, DeFi derivatives have become one of the hot tracks. Dear guests, what do you think is the biggest advantage of DeFi derivatives compared to centralized derivatives? Which ones do you think are most important.

AIphaRay：The biggest advantage of DeFi derivatives is that they can bet against each other. For example, they can choose issues such as climate change to make corresponding bets. Anyone in the world can participate, so that there will be a huge transaction volume. Of course, it will also have some challenges and face some unknown risks.

Yutaro：My views on DeFi derivatives are as follows: First, it can increase leverage and improve efficiency. You don’t have to be limited by the traditional capital structure, you can develop a brand new product to help users increase leverage and improve efficiency. Such a product is very interesting; second, it is a more capital-effective AMM, which is an innovative product rather than Derivatives in the traditional sense.

Eric：Derivatives generally have three components: the first is the priority of transactions, and all orders can be executed correctly; the second is the security of the oracle machine, because the infrastructure of DeFi is not perfect yet, using centralized The oracle will generate corresponding risks; the third is about how the insurance fund covers all agreements and can control the corresponding risks. For many insurance products, we need to ensure its safety, especially before the contract expires.

I think different projects have different ways of dealing with the above issues. There are many different derivatives in the current market, and they have different insurance interests. For us, we don't want to understand DeFi derivatives narrowly.

Cole Kennelly：secondary title

Q4

Mable Jiang: In the past two years, we have also seen the emergence of many algorithmic stablecoins. Stablecoins need to involve price anchoring and liquidity issues. Sam Kazemian, you focus on the development of algorithmic stablecoins, what other issues do you think need to be considered?

Sam Kazemian：We and our partners have been working on FRAX, which is a decentralized algorithmic stablecoin on the pure chain.

While some say it's a Ponzi scheme, it's not, numbers don't lie. From the first day of FRAX, there is an opportunity for arbitrage at a price higher than one dollar. And our transaction is relatively decentralized, it has the collateral rate of the market collateral, FRAX is 100% collateralized, only need to put the collateral into the smart contract, and the appropriate collateral needs to be placed at the appropriate stage, what we set is There are arbitrage opportunities around its target price above and below $1.

For example, under a 99% collateral ratio, it costs $0.9 to create a FRAX, which is currently $0.85, which affects the FRAX price according to the collateral ratio. And so on, a lot of banking is like this. If the price reaches $0.99 during this process, there is also an opportunity for arbitrage below $1, because there is room for arbitrage to buy tokens at a low price and redeem them at a price of $1, so we need to increase the collateral ratio to 85%. If the user is worried that this is a vicious cycle and everyone starts redeeming his dollars, our algorithm will automatically reduce the risk.

Therefore, FRAX is different from other algorithmic stablecoins. They are not well designed, have no collateral support, have no liquidity, and are always traded under very large fluctuations, which is actually meaningless to the creators.

Going back to the original question, I think capital efficiency is very important. We have a market-oriented principle, which is to follow the laws of the market. For the excess population, it depends on how much money the market can print, if they don’t need collateral, what is their confidence, and what will happen when they redeem US dollars. In fact, this is a bit like a democratic vote, and FRAX will focus on these aspects.

Mable Jiang: Now let's ask another question, Dan please answer. There are many projects in the market now, which fields may become new hot spots?

Dan Thomson：Today, the transaction volume of DeFi has reached 60 billion US dollars. We do have a lot of choices in DeFi, and many new projects emerge every day. I think this market has great potential, especially in the insurance field.

In our own case, our DeFi insurance has grown tremendously in the past few weeks. Through DeFi insurance and related agreements, users can be more confident, and we also have a consensus in the industry that insurance should become a matter of greater concern when you make related investments. For example, when I personally invest, I will pay attention to whether the project has insurance. If there is no insurance, this agreement may have its own risks.

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Q5

Mable Jiang: Last question, can you share with us the roadmap of your respective products in the future?

AIphaRay：In the coming months, we will accelerate the deployment of new features and projects. We recently announced that the decentralized public offering platform AcceleRaytor will launch the first IDO project tomorrow. New projects can raise funds from the community at a fixed price through the platform, and at the same time start the token liquidity pool, which will also bring more benefits to Raydium. Trading volume. In addition, our technical integration with SushiSwap is also going on at the same time. In addition, we are also developing a stablecoin asset exchange function, so that users can join a liquidity pool similar to USDC-USDT, so that liquidity will be better when exchanging stablecoin trading pairs. After that, we will further develop the leverage trading function on Raydium.

Yutaro：We now hope to build a better platform for everyone, so that everyone can conduct good transactions on Solana, and can also adjust the income, so we currently launch governance tokens. In addition, a product will be launched, which may be very similar to that on Ethereum, on which USDC and USDT transactions can be carried out. We will also develop some tools so that everyone can migrate capital to Solana to improve capital efficiency.

Eric Chen：We will launch a new index product, which has been tested in the community before. We expect to release this product on multiple public chains and apply it on a large scale in a month. Our key work next month is to make relevant preparations for this index product, and we hope that the relevant preparations can be seamlessly connected.

In the medium and long term, we hope to let everyone see cross-margin products, which can be hierarchical or cross-market. On this basis, we will continue to expand functions to further enhance the trading experience.

Cole Kennelly：Of course we want to build the best DeFi trading place. In the past few months, we have also been working on a smart contract system, and the text related to this system should be launched soon. In the future, we will focus on user acquisition and liquidity. We will also provide more collateral types and design better DeFi protocols to meet the needs of different users.

Sam Kazemian：In the near future, we hope to launch Solana. In the future, we hope to expand to other public chain ecosystems. The goal is to reach a transaction volume of 1 billion. We believe that this goal will be achieved by the end of this year or in the summer. Our basic goal is to improve everyone's capital efficiency, so that everyone does not have to be restricted by complex agreements, can further improve the efficiency and speed of transactions, and can reduce the mortgage rate. These demands also need better agreements to carry.

Additionally, FRAX is now officially the first algorithmic stablecoin to be added to the Curve Gauge. Community members can vote for FRAX on the Gauge weight page to increase the share of FRAX, thank you.

Dan Thomson：We are DeFi insurance, we have 20 different agreements, our capital pool has reached 20 million US dollars. Some new projects should be launched soon, and we will also expand to new chains. We are currently testing new projects and hope to serve more protocols.

In the past two weeks, there have been many new users entering the market. We are making adjustments every day, checking for omissions and filling vacancies, and we have been developing continuously. We also cooperate with the second largest insurance agreement. Of course, our products are more cost-effective, and we are constantly adjusting our investment strategies. All of these will enable us to achieve rapid development.

Mable Jiang：Thank you so much for sharing and thank you for participating.