Recently, FDR was invited to participate in Moonlight
Binance Live AMA event hosted by Ultiverse. FDR project representative and special consultant ANDY Chen shared information on FDR and DEFI interpretation, as well as the future development of the DEFI track during the meeting.
The following is a translation of the live broadcast content:
Host: Welcome, dear viewers of Binance Live. Hello everyone. We are very happy today. We have invited ANDY Chen, special consultant of FDR Charitable Foundation. ANDY Chen has been engaged in the Bitcoin mining industry, blockchain financial services and global strategy for many years. He has participated in ETF product design and industrial fund management in Hong Kong, with a management scale of more than 1 billion RMB; the scale of blockchain asset management exceeds 200 million US dollars. He has invested in more than 60 blockchain projects worldwide and has rich investment and product experience.
We all know that web3.0 is the current hot spot. GameFi, SocialFi and NFT (non-fungible tokens) have developed greatly in the past few years and have achieved some results. Today we focus more on DeFi. In the DeFi sector, we have previously gone through Uni, SUSHU, Da Yifu, Er Yifu, etc. Everyone has seen its booming development, but also encountered some problems. So it is just right to take advantage of the upcoming launch of FDR. Let's talk to you about our related content.
Host: We all know that in 2023, the DeFi sector was affected by mainstream currencies and performed well on the SOL and BASE chains. Bitcoin rose from $15,000 to $70,000 last year and has been fluctuating. Now it is unclear whether it is a bull market or a bear market. How do you view the development trend of the DeFi sector in 2023? Will it fall out of favor this year?
ANDY Chen: Actually, if we understand it as a whole, all sectors of the DeFi sector are interconnected, which is what we call interdependent.
Let's take a look at some data from the DeFi sector. We use TVL to represent it, which refers to the decentralized
The total amount of assets on the financial platform. DeFi in the bull market
TVL
It rose from $600 million in January 2020 to $180 billion in December 2021. However, DeFi has always been the application scenario with the largest market value in Web3, with a total locked-in price of $175 billion at the peak of the bull market in 2021. So in the past few years, we have seen an explosive force, and the core principle is transparency and openness.
Of course, we all know that 2022 was a year when DEFI fell out of favor a little bit, but in fact, the TVL of DeFi has remained at US$39 billion. However, we still believe that despite the market crisis in 2022, the TVL of DeFi will remain above US$39 billion, mainly because the mainstream currencies have fallen. It is just a maintenance. After all, the development of a new business DeFi has made financial services more democratized because it does not require a centralized organization to attract users. DeFi has also opened up new models such as automated market making. No one expected that algorithmic stablecoins could be realized through AMM market maker logic.
All of these innovative elements catalyzed the growth of DeFi protocols and applications. This also helped the growth of other adjacent use cases such as NFTs and GameFi. Despite these interesting developments, DeFi shrank to a mere $39 billion in 2022. Let’s see what happened in 2022,
And our understanding of DeFi
Expectations for 2023. First, let's analyze some events in 2022 in detail. The wormhole bridge of SOLANA in the web3.0 ecosystem was hacked, resulting in the theft of crypto assets worth $310 million. Thanks to some projects in the solana ecosystem, they got out of this abyss. However, in March, rumors about the credibility of the Terra ecosystem and its algorithmic stablecoin began to emerge. As the market fell further in April and May, the network collapse led to a wider market sell-off.
After the Terra incident, the market recovered over the summer, only to be dragged down by the FTX debacle. While the FTX situation cannot be fully classified as a DeFi issue as it was the result of alleged misconduct by a centralized exchange, some have noted the impact that FTX and its affiliate Alameda have had on the ecosystem.
Despite the bloodshed, the DeFi industry has been quietly building and innovating. 2022 has also seen several institutional DeFi headlines that could generate gains in the coming years.
The Bitcoin network is starting to see utility as the Lightning Network allows projects to build on top of it.
App integrates lightning
There are several other payment applications that could change the “value storage” of the apex asset.
The popularity of BRC20 is also based on the smallest unit of satoshi. As for Bitcoin
As for the expansion of the blockchain, the first time that the segregated witness allowed Bitcoin to expand is to expand the blockchain.
Faster and safer. Before the last bull run, DeFi on the Ethereum network
The TVL is in the hundreds of millions of dollars.
Several layer-
DeFi on layer-1 and layer-2 networks
TVL, namely Avalanche, Solana, Polygon, and Arbitrum,
Each has hundreds of millions of dollars. With the next Bitcoin halving approaching, all of these ecosystems should see DeFi
increase.
While hackers ran rampant in 2023, causing heavy losses to DeFi cryptocurrency investors. As regulations strengthen and institutional adoption shows promise, there must be some key developments in this space.
As of October 2022, the crypto industry has lost nearly $3 billion in 125 hacking attacks.
The reputation of the domain is also a huge barrier to attracting institutional capital. In response, the DeFi ecosystem has begun to create applications that inform wallet holders of what a smart contract intends to do before the user signs it.
However, more work needs to be done to address security vulnerabilities around oracles and cross-chain bridges. More decentralization of cross-chain bridges is
A big step forward. In addition, DeFi platforms will start to consider insurance products more seriously to protect user funds. Companies such as CertiK and Hacken provide specialized cybersecurity solutions for Web3 platforms.
But we also saw that the closure of several well-known centralized exchanges and platforms in 2022 has helped shift trading volume to DeFi platforms. However, DeFi still relies heavily on centralized platforms to attract new users and convert fiat currencies to DeFi.
This trend is being challenged and could change by 2023.
As more and more users choose DeFi over centralized financial solutions, the infrastructure for entering the crypto world should
The wallet will have entry plug-ins such as MoonPay and Ramp, which will connect to the user's credit card, Apple
Pay or bank account,
To convert fiat currency to cryptocurrency and vice versa.
Another key entry feature that has emerged is a wallet that does not require users to manage private keys. As user experience begins to take center stage, DeFi solutions may attract more new users. For example, Web3 games will be integrated with DeFi in 2022.
of gaming projects are trying to find market share. By 2023, these projects will continue to mature and develop driven by DeFi.
Web3 games find themselves in a unique position within the entire ecosystem and may be the growth hack that Web3 has been looking for. While games still have issues with playability, ecosystem-specific monetization models, staking, and mining are
Mine will provide unique products and value propositions that traditional games lack.
Host: Will regulators lag behind in the future?
ANDY Chen: With the catastrophic failure of large companies and the loss of user funds, central banks and regulators will begin to have a greater role in DeFi.
Although counterintuitive to the spirit of Web3, central banks will begin to enact laws to protect consumers.
Regulation and legislation. If U.S. regulators break the 90-year-old Howie test whip and deem most cryptocurrencies to be securities, that would certainly impact the space in the short to medium term.
However, some regulation has helped the sector gain greater credibility. Know Your Customer and Anti-Money Laundering (AML) controls,
And the rules of conduct for marking DeFi-related financial products can bring certainty to the field and encourage investors.
Institutional DeFi is on the rise Institutional interest in DeFi has picked up over the past year. Payment, custody, and anti-money laundering solutions have particularly piqued the interest of large banks and financial institutions. To come up with their own digital currency plans, banks will need to prepare for the on-chain world. On-chain banking will be the next stage of digital banking, where transaction finalization and reconciliation will be instant, giving rise to new business models and financial products, and 2023 will see key steps in this direction.
All in all, DeFi is expected to mature and stabilize in 2024. Any new technology has its ups and downs. After experiencing a strong bullish phase and a severe bearish downturn, the time is ripe for stable growth based on the wisdom gained from the experience of 2023.
Host: Could you please introduce FDR? What are his characteristics?
ANDY Chen: We must first talk about a person, Franklin Delano Roosevelt (FDR), who served four consecutive terms as President of the United States from 1933 to 1945. President Roosevelt took a series of important measures during the US economic crisis, among which the establishment of the Securities and Exchange Commission (SEC) was one of his major initiatives. The establishment of the SEC aims to strengthen the supervision of the securities market, prevent speculation and fraud, restore investor confidence, and promote economic recovery. Through the implementation of legislation such as the Securities Act, the SEC has gained broader powers, including the review and supervision of the issuance of new securities. This move has effectively improved the transparency and fairness of the market, reduced investor risks, and laid the foundation for economic stability and recovery.
In order to commemorate the history of Franklin Delano Roosevelt, the FDR Charitable Trust was established by a large number of blockchain enthusiasts, aiming to use blockchain technology to write all (rules and regulations) agreements on the chain. The agreement can never be tampered with, solving trust issues and asset security issues. There is no platform party, no project party. It is executed through a string of cold codes. Of course, we first give priority to the BSC chain. First, it is safer. Second, the market value of BNB is relatively high, and the user group is huge.
Then let's analyze the mechanism of FDR.
The first topic is: Native selling pressure is actually a double-edged sword in the AMM market maker principle. What is native selling pressure? The project party needs funds to support operating costs, development costs or other expenses, so it will sell the part it holds. Such selling will increase the supply of tokens in the market, causing the price to fall. Of course, it cannot be ruled out that the project party maliciously cashes out and leaves the market, thus destroying the consensus.
For example: a project issues 100 million, of which 50% is added to the pool, 40% is mining output, and 10% is reserved for the project. There are three kinds of original selling pressure here. The first is that 50% of the pool is dumped by large households and pool withdrawal, 40% is mining output, and 10% is reserved for the project, all of which belong to original dumping. So this is also the main problem of traditional AMM. Then our FDR fundamentally solves this problem. The original LP will be distributed to the donors according to the proportion of everyone's donation. First of all, this point is decentralized. The original LP withdrawal pool has no tokens, only mainstream currencies. Second, the project does not have any reservations in the model. Third, there is no mining mechanism. FDR income is triggered by adding LP dividends through contracts to consolidate the pool.
In fact, the most important part here is the second topic. First of all, let's understand DEX. In fact, DEX means joint banker. Liquidity and currency holdings are the key points in evaluating a DeFi project. The open source of code, loss of permissions, and security audits are the top priorities at the moment.
In fact, it is mainly reflected in several aspects:
The first aspect is transparency: open source contracts allow anyone to view and review the code to ensure that there is no hidden malicious code or backdoor. For users or some believers, it provides a trust mechanism to reduce dependence on the platform or project party. Just like Bitcoin, who Nakamoto is actually has little impact on the pricing mechanism.
The second aspect is community review. In fact, open source code can be reviewed and improved by the developer community. This wisdom can help discover potential vulnerabilities and problems, and improve the security and stability of the contract.
The third aspect is credit and collection. Open source audits are often considered more credible, and users and investors are more willing to hold tokens in these contracts, which helps to improve the project's reputation and market acceptance.
In general, the open source and auditing of contracts will give tokens in decentralized exchanges greater security, transparency, and trust, helping to build a healthier and more reliable blockchain ecosystem. Currently, FDR has obtained the audit reports from Lian'an and CK, which will be announced on Twitter.
The third aspect we want to share with you is the pricing principle of Bitcoin before and the change of pricing principle after the SEC approved the Bitcoin ETF. We all know that when Bitcoin was first born, a major event occurred, the US subprime mortgage crisis. The purpose of Bitcoin is to break the centralization of power, so a new term was born, blockchain. A group of people or small institutions with dreams have made Bitcoin tens of thousands of times more.
The core values are fairness, justice and openness. In fact, have you noticed that the pricing power lies in mining first? The cost of mining and the price cost are not too big. But we all know that the SEC (U.S. Securities and Exchange Commission) has passed the Bitcoin ETF, and the pricing power has undergone a fundamental change. ETF is also called spot, so after countries around the world legalized it, the demand has surged, and Bitcoin may fluctuate very high. However, as old blockchain enthusiasts, we all know that it is difficult to buy the price of the last round of Bitcoin production halving this year.
In fact, the same is true for FDR. You can think of him as a newborn baby. We are all concerned about FDR. He will definitely have price fluctuations and shocks. There will also be periodic increases and corrections. We all know that there is a (deflationary) mining model in the economic model, which is to add LP and strengthen the guidance of some communities on the principle of decentralization. Of course, our mechanism has been accepted by many countries. Currently, the participating regions and countries are mainly concentrated in mainland China, Taiwan, Malaysia, and Spain. Therefore, our pricing principle is actually related to LP. This pioneering mechanism can attract more consensus-makers to participate in this project.
The fourth aspect:
From the perspective of economics
Start-up LP (primary market)
The addition of startup LPs is the primary market. The community takes the form of donations to the pool, and no one has tokens. Tokens are automatically sent to donors
Initial LP, no tokens left after withdrawal, only USDT. The original LP is fair, just and open. It triggers more evangelists to enter the secondary market
Secondary Market (Adding Liquidity)
The four major mechanisms guarantee LP's income. There is no market-smashing principle for new LPs. Therefore, more evangelists will start to add LPs. And they are willing to add LPs at low positions to increase LP dividends. This ensures the solidity of the pot.
The solidity of the pool will affect the trading volume of the entire secondary market. The larger the trading volume, the more it will be destroyed, and the more stable the LP dividends will be. Trading will increase the average price, which will in turn trigger more evangelists to add LPs.
In the future, we will also deploy NFT chain games and other tracks. Currently, NFT transactions are being prepared on BK and Oui exchanges.
Moderator: Where do you think the future development direction of DEX is? Or what outstanding problems need to be solved?
ANDY Chen: We all know that there is a most prominent problem in the AMM logic of the traditional market.
The problem? It’s called the three impossibles. When the AMM market maker model issues tokens, it is also what everyone says has solved the three impossibles.
Corner? Maybe many people who have issued coins can understand how uncomfortable it is. He can't meet those three points at the same time. The volume is large.
The coin supply chain is large, sufficient, and the price is good. I price the coin according to a reasonable valuation, and I pay less. (Large quantity, good price, and the project party pays less)
That's when new virtual assets are issued.
, good price, technology or fund does not need too much assets. Impossible Triangle
Maybe many people who have issued coins know how uncomfortable it is.
The price is good, I give this according to a reasonable valuation. I also spend less money. These three points he can never control, it is particularly difficult to buy
I want a big price and good quality, so I need to invest a lot of money. I don't have money. Then if I spend money,
If I have a large quantity and no money, then I can no longer guarantee the price, and the price will be very low.
If it is big, then I need to allocate funds, allocate a lot of money, so the quantity is large, and I spend money on gas. You will never be satisfied with these three things.
Let's recall whether these three can be achieved at the same time. In fact, it can. Because you are in a centralized exchange
Falling, or going back further, when you are in the stock market IPO, you have never seen any listed company bring cash to do IPO. They just need to do it with stocks, so it is very anti-human and unreasonable to allocate funds for issuance, and it should not be done. This is not actually, then I deliberately set up a block for you, but the design of its mechanism makes it unnecessary, and it can only rely on me to provide enough money.
This is his biggest problem. So how do we solve this impossible problem?
In fact, no matter how much you do in the AMM system
The minimally invasive method cannot solve this problem. You can only say. Redesign this theory, we are based on the AMM algorithm
By introducing some simple rules, it can meet all three points at the same time. In simple terms, you can provide a unilateral model of sufficient selling. It actually solves this problem. Well, how do we end it, so I will talk about it here. The first use
The case (application case) is our FDR. We call it the built-in mining method by adding liquidity. What problem is it solving?
First, let's analyze the traditional liquidity mining model. Liquidity means that all retail investors can make markets, which is to solve the three impossible core points. It is basically an inflation mechanism, which is purely in a kind of native selling pressure. However, we have broken through a new mining method, which is built-in mining. What is built-in mining? It means that all token outputs are mined through pool withdrawal or transaction tax points, that is, no project party or investment institution has tokens, which forms a fair mechanism. On this basis, everyone is fair. Because we can clearly see the tokens on the contract.
Take FDR as an example, all tokens
All tokens are placed in the pool, and the contract stipulates that there will be no tokens when the pool is withdrawn. In addition to market trading, adding LP can obtain computing power dividends, which is fundamentally different from the previous LP mining. All tokens are added
Add LP weight ratio to produce. In fact, we all know that LP in the DeFi sector is a token issuance token also called a warrant.
It is also a kind of identification of market makers, and was first applied on TRX. However, this kind of LP cannot withdraw, that is, the consensus on this mechanism is used to strongly support its rising logic.
We all know that LP is mainly reflected in the speculation of a currency. If the LP is thick, there is no need to worry about the market crash, and it will be more solid. The addition of LP will make a token rise steadily, and it can have a large capacity. More mainstream currencies will enter the market. The stronger the liquidity, the more it can drive public domain traffic, or its good liquidity is valuable in itself.
This is actually some of our own experiences that we want to convey to the outside world.
The second point, which we call crowdfunding to build a pool, continues to solve the problem of selling liquidity. What problem is it actually solving? In fact, it can be simply understood as what we are familiar with as continuous IDO. So after going online, it is to add liquidity, which can also be understood as crowdfunding to build a pool. In fact, our previous liquidity is equivalent to renting a house. You are using your tokens to rent liquidity. If one day you stop paying your tokens, then the liquidity will be gone, and this rent is very, very expensive. How expensive is it? You may have to spend 100% of your energy to attract people to provide you with liquidity. In other words,
When you rent a house, you find that you can buy this house with one year's rent. Isn't it very hard?
I have to face a problem, that is, after I rented for one year, I rented again for the second year. I can go on forever.
So you rent liquidity, and you release more and more tokens. Then you have to create more liquidity. This is a bottomless pit. Why is it popular? It's not because the model itself is so innovative, but because it has the attributes of a Ponzi scheme, which is often the way many coins start. Of course, I don't object to it, but Bitcoin may also be like a Ponzi scheme at the beginning. Ponzi itself can attract some people to come to you, just to pay attention to you and play with you.
But all the control projects have to answer a question, when will you stop, or when will you reduce production. Once you reduce production, it is easy to fall into this death spiral. No one is mining, so he will sell the coins in his hand. The price of a sale will drop, so your mining income will be lower, and the lower it is, the less people will mine. Therefore, most mining coins, except for a very small number of high-quality projects whose product growth rate is faster than the speed of its release, the final result of most mining coins is a mess. In my opinion, a large part of the reason is that he paid too high a rent for liquidity.
This part of the rent exceeds the level that the team can afford. It seems to you that I am using a currency that I have not printed to rent liquidity, as if it is a free business. But all the gifts of fate are secretly marked with a price, and you will feel uncomfortable in the future. So why is it like this?
If the product growth cannot keep up, it is very easy to enter an endless loop, which is very scary. So we are also thinking, what else can I do besides renting a house? There is one thing that people do in life, that is, I don’t rent a house, I buy a house, and then rent it to others and earn the rent immediately. This is not a very good thing.
Therefore, the FDR is actually helping everyone realize this model. When buying a house, you can enjoy the FDR liquidity deflation mining while enjoying the concept of platform governance tokens. The FDR logic is to eliminate the project party logic. There is no project party benefit in the entire ecosystem or contract. It is a consensus between members. Or a consensus between communities.
Host: The US Securities and Exchange Commission (SEC) recently approved Bitcoin EFT. Will it boost the DeFi sector?
ANDY Chen: My intuitive feeling is that it is a way of expressing the recognition of virtual assets, which is what we call completely compliant and legal.
Of course, there is also a need for supervision: as virtual assets become more popular and their application scenarios expand, governments and regulators are increasingly regulating them.
Bank supervision is necessary. The purpose of supervision is to protect the rights and interests of investors, prevent financial crimes, maintain market order and stability, etc.
In the rapidly developing virtual asset sector, regulation can provide clearer rules and frameworks to promote the healthy development of the industry. Balancing regulation and innovation: Regulation of the virtual asset sector needs to protect investors and maintain market order while also giving room for innovation.
Excessively strict regulation may hinder the advancement of technology and innovation and limit the development of the industry.
Therefore, regulators should protect investors while taking flexible regulatory approaches to encourage compliance innovation. This is a reflection of the consensus on blockchain that I feel governments at all levels at home and abroad are constantly accepting and recognizing. First-tier mainstream exchanges such as Binance and OKEx have successively obtained licenses since June 1. It is important to promote the industry as a whole. I believe that this policy will promote the future bull market of virtual currencies.
For decentralized exchanges, increased regulation may bring some challenges, but it also provides opportunities.
Exchanges are decentralized, trustless, and user-controlled, providing regulators with more transparent and traceable
Trading environment. By strengthening compliance measures such as KYC (know your customer) and AML (anti-money laundering), decentralized exchanges can reduce the occurrence of illegal activities and fraud and increase the feasibility of supervision.
Therefore, the importance of cooperation and communication: in the regulation of the virtual asset field, the relationship between the government, regulators and industry participants is very important.
Collaboration and communication are essential. Regulators need to work with industry experts, practitioners and the community to develop appropriate regulatory policies and
measures to ensure the effectiveness and applicability of supervision. At the same time, industry participants should also actively cooperate with supervision and fulfill their compliance responsibilities.
Contribute to building a healthy, transparent and sustainable virtual asset ecosystem.
Supervision is an inevitable trend in current development, aimed at protecting investors, maintaining market order and promoting the healthy development of the industry.
Decentralized exchanges have the following driving effects on supervision:
Transparency and compliance: Trading activities on decentralized exchanges take place on the blockchain, and all transaction records are public and traceable.
This makes it easier for regulators to monitor and review trading activities, ensure compliance and prevent illegal behavior.
Compared with centralized exchanges, decentralized exchanges are easier to implement KYC and AML measures to prevent fund laundering and malicious behavior.
Decentralized risk dispersion: The core feature of decentralized exchanges is that there is no single centralized institution controlling user funds.
Instead, transactions are carried out through smart contracts. This decentralized design can reduce potential risks, such as the collapse of exchanges,
Issues such as freezing of funds or market manipulation. Regulators can encourage and support the development of decentralized exchanges to reduce systemic risks in the entire financial system. Promotion of innovation and development: Decentralized exchanges provide an open innovation environment that encourages developers and project teams to promote
Regulators can work with decentralized exchanges to explore new technologies and innovative applications.
The regulatory framework provides support and guidance for the development of the industry. This will help promote innovation in financial technology and provide users with more choices and opportunities.
Improve user security and asset control: Decentralized exchanges return asset control to users, who manage and
Trading assets does not require funds to be custodied to an exchange. This increases user security and reduces the risk of funds being stolen or manipulated.
Risk. Regulators can ensure that decentralized exchanges take appropriate security measures, protect user assets, and oversee funds.
In general, decentralized exchanges can provide greater transparency, compliance, and security in terms of regulation.
Compared with centralized exchanges, decentralized exchanges are more challenging to regulate, but they also provide regulators with more
Through cooperation and communication, regulators and decentralized exchanges can jointly promote the development of the industry.
Establishing a healthy, safe and innovative virtual asset ecosystem is a must for our IPOSWAP development path.
Lu, I think this is in line with the spirit of our blockchain. There are still different evangelists, and of course there is also a need for referees, also known as mechanism constraints. It is still a way to ensure fairness and openness while decentralizing.
Host: What do you think the future exchange will look like, or what form will it take?
ANDY Chen: As for the question of the importance of ideals, I actually had a vague idea in my mind after being reminded by the host. I see a track more, on-chain transactions. That is, the public chain mechanism. Of course, it is not ruled out that a combination of virtual and real intellectual property can be witnessed by miners or nodes, such as the recently popular RWA track.
But when you mentioned it, I suddenly thought of a good analogy. It was the development history of Nokia. OK, then he said OK, I can add functions, you can send text messages, listen to music, and play games, but these functions are added by yourself. It is very similar to the current decentralized exchanges, which used to do spot trading and now do derivative lending. But what system defeated Nokia? It was Apple's iOS. I analyzed that it was actually the biggest victory.
In the original APP store, this store has released huge developer capabilities. You said that the functions on your phone do not need
Mobile phone manufacturers are responsible for development. Because once you open up this power, you will find that the capabilities of mobile phones are extremely great.
You need to make good use of the hardware of the mobile phone and the basic development tools to enjoy special functions. This is the real role of smartphones.
Flying has become something that everyone has. For exchanges, I actually understand why exchanges
Action, Binance wants to build BSC and Huobi wants to build the Huobi ecological chain.
In fact, they have sensed the danger of this place. They are Nokia's easy-to-use and reliable mobile phones, or
That's the application. One problem with current decentralization is that it is a closed environment. It only gives you a few very simple
For simple things, such as buying and selling tokens, adding liquidity and other simple functions. And he is doing all the function development himself. Of course, the cost is very high, and there is no way to unleash the capabilities of all developers in the ecosystem. So they have to develop a public chain, because it may be like a WeChat applet, but in the future it will need to unleash the capabilities of developers. Build yourself into a platform, this is the future form of exchange. This is why CZ keeps saying that DEX is the future, why DEX is coming back, in fact, we may need to analyze why only dex can realize this so-called app
store mode. Because app
The store must have a computing platform, and a trusted computing environment for you to play with.
The so-called trusted computing environment is actually the blockchain itself, because this type of exchange is centralized.
It must transition to a decentralized form. Regardless of whether it is completely decentralized or not, it must move in this direction.
To open up computing power to everyone, what will the future layer look like? First, it is a dex, and second, it must have sufficient developer tools. In other words, there are a lot of things you can play with, and a lot of composable infrastructure for you. It may be that it provides you with some templates, allowing you to combine them perfectly, and then it may give you a very primitive set of programming languages. You write it, it must be permissioned, and it must be a very flexible form.
At this point, we can say that our future exchanges will definitely work towards this direction of permissionless (unlimited authorization), which is mainly reflected in flexibility.
Because Uni is actually a big step forward, it actually allows these traditional so-called Nokia-like manufacturers
We realized that we must open a formation
The function of the list is to let others come in and let their talents flourish.
But because of your own limitations, there are not many things you can play with it. The algorithm is very simple and elegant.
It is also very effective. But after all, its flexibility is not very high, and there are many things you want to play that have not yet fully released their potential.
So our UNI is an extremely flexible market-making algorithm. We have developed a lot of templates for this algorithm to give you a taste of what you can do in this framework. But as for its final
What kind of things can be played is actually left to the community and various developers to play freely. It seems that no one has ever thought that AMM can achieve the awesomeness of the algorithm. AMM is two contracts, a factory contract and a routing contract for execution. What can I do based on it? What if we can provide more flexible tools? Will it be possible in the future?
What interesting credit products have been developed on this basis?
Through our efforts and the efforts of the community, I believe FDR will start a new wave of DEFI4.0 and create new miracles. Thank you for your attention and listening. At the same time, FDR also looks forward to your joining. Thank you!
