Space Summary
The Twitter Space FactorDAO: Building The Composable Layer of DeFi hosted by arbitrum. FactorDAO is at the forefront of shaping the DeFi landscape through its dedication to building a composable layer within Arbitrum technologies, focusing on decentralization, security, and growth. With initiatives like the Decentralization and Security grants, FactorDAO actively involves the community in its mission for a more connected and secure DeFi ecosystem. By emphasizing innovation, inclusivity, and the integration of protocols, FactorDAO contributes to the evolution and sustainability of DeFi on Arbitrum, paving the way for a vibrant and efficient decentralized financial future.
For more spaces, visit the DeFi page.
Questions
Q: What is FactorDAO's primary focus within the DeFi space?
A: FactorDAO concentrates on building the composable layer of DeFi within Arbitrum technologies, emphasizing decentralization, security, and growth.
Q: How does FactorDAO enhance DeFi interoperability and scalability?
A: FactorDAO focuses on integrating protocols and providing development tools, enabling broader DeFi composability.
Q: What are the key initiatives led by FactorDAO to engage the community?
A: FactorDAO initiates programs like Decentralization and Security grants to involve the community in its mission.
Q: How does Arbitrum's Layer 2 solution benefit Ethereum-based applications?
A: Arbitrum's Layer 2 solution offers faster and cost-effective transactions for applications running on the Ethereum network.
Q: What drives FactorDAO's vision in the DeFi space?
A: Novel concepts like protocol composability and infrastructure interoperability inspire FactorDAO's vision for a more efficient DeFi ecosystem.
Q: How does FactorDAO contribute to the broader evolution of the DeFi space?
A: FactorDAO's efforts align with the growing trend in DeFi towards secure, interconnected solutions, emphasizing innovation and community engagement.
Q: Why is building a robust ecosystem around Arbitrum technologies crucial to FactorDAO?
A: FactorDAO recognizes the significance of a strong ecosystem for fostering sustainable, community-driven DeFi infrastructure on Arbitrum.
Q: How does FactorDAO's approach reflect innovation and inclusivity?
A: FactorDAO's approach to inclusivity and innovation is evident in their strategies for building the DeFi composable layer within Arbitrum.
Q: What is the overarching mission of FactorDAO in the DeFi landscape?
A: FactorDAO is on a mission to create a sustainable DeFi infrastructure on Arbitrum, driven by community participation and dedication to innovation.
Q: How does FactorDAO's effort contribute to the DeFi space's growth and development?
A: FactorDAO's dedication to creating tools, integrating protocols, and fostering an inclusive ecosystem contributes to the growth and development of DeFi on Arbitrum.
Highlights
Time: 01:15:20
Decentralization & Security Initiatives Exploring FactorDAO's programs like Decentralization and Security grants to enhance community involvement.
Time: 01:25:45
Protocol Composability & Interoperability Discovering how FactorDAO aims to enhance DeFi composability through protocol integrations and infrastructure interoperability.
Time: 01:35:10
Community-Driven DeFi Infrastructure Understanding FactorDAO's mission to build a sustainable DeFi infrastructure on Arbitrum driven by community participation.
Time: 01:45:30
Innovation & Inclusivity in DeFi Exploring FactorDAO's innovative approaches and inclusive strategies in creating the DeFi composable layer.
Time: 01:55:15
Arbitrum's Scalability Solutions Learning about the benefits of Arbitrum's Layer 2 solution, offering faster and cost-efficient transactions for Ethereum-based applications.
Time: 02:05:40
FactorDAO's Vision for DeFi Evolution Examining how FactorDAO's vision aligns with the evolution of the broader DeFi space towards more interconnected and secure solutions.
Time: 02:15:25
Future of FactorDAO's Ecosystem Delving into the plans for building a robust ecosystem around Arbitrum technologies to drive FactorDAO's mission forward.
Time: 02:25:50
Community Engagement Strategies Highlighting FactorDAO's community engagement strategies, focusing on inclusivity and innovation within the DeFi space.
Time: 02:35:10
Developing DeFi Tools & Protocols Exploring FactorDAO's efforts in creating tools, integrating protocols, and contributing to the growth of DeFi on Arbitrum.
Time: 02:45:30
Sustainability in DeFi Infrastructure Understanding FactorDAO's commitment to sustainability in building a community-driven DeFi infrastructure on Arbitrum.
Key Takeaways
- FactorDAO is dedicated to decentralization, security, and the growth of Arbitrum technologies.
- The focus is on building the composable DeFi layer within Arbitrum, enhancing interoperability and scalability.
- Community involvement is key, with initiatives like the Decentralization and Security grant programs.
- FactorDAO aims for broad DeFi composability, integrating with various protocols and offering tools for developers.
- Arbitrum's Layer 2 solution provides cost-efficient and faster transactions for Ethereum-based applications.
- Novel concepts like protocol composability and infrastructure interoperability drive FactorDAO's vision.
- FactorDAO's efforts align with the broader DeFi space's evolution towards more efficient, secure, and interconnected solutions.
- The importance of fostering a robust ecosystem around Arbitrum technologies is emphasized by FactorDAO.
- The team's dedication to innovation and inclusivity reflects in their approach to building the DeFi composable layer.
- FactorDAO's mission involves creating a sustainable, community-driven DeFi infrastructure on Arbitrum.
Behind the Mic
Introduction and Greetings
Hello. Hello. Thank you for having us, guys. How are you? Pretty good. This is Chiro, by the way, behind the arbitrum account. Happy to host this. Thank you. Kurapika here, behind the factor account. Great to be awesome. Yeah. How's it going? Great, great. Looking forward to share everything that we've been working on. There's a lot to unfold, I think, right in this time. Yeah, for sure. Yeah. I know you guys have been dropping tons of updates lately, so super excited to go over that. Are we waiting for anybody else, or is it just us two for today? Not from our end, unless, it's coming from you guys. Okay, cool. Yeah, I think we're good. So, yeah. Welcome, everybody, to our spaces. Really excited to have factored out with us today.
Discussion on DeFi and Introductory Topics
Yeah, we'll be talking about how they're reshaping defi composability here in the defi ecosystem on arbitrum. So super happy to have you guys here. And, yeah, we can get started with some introductions. Do you want to kick off with, like, talking about the lore of how everything started with Factordao, like, the beginnings and where you guys are at right now? Yeah, perfect. I mean, I don't think I can really intro factor otherwise. So, first of all, thank you, churro, again, for having us and letting us having this opportunity. So, again, so I'm Korapika. I'm the founder of factorization. And as you just mentioned, I think it's very important to know the origins of factor, or what problem or pain point is it solving? So I came into the crypto world in 2016 with a background in fintech and finance, and I think everyone in the crypto realm got really excited when Uniswap started to evolve.
Understanding DeFi and its Fragmentation
And really, the DeFi realm became almost identical to treadfi or traditional finance, only decentralized. Right. With even more extended opportunities that are derived from the open source nativeness of the ecosystem we created. But there is a big problem that I think we inherited from finance, and this is the fragmentation. And it means that there's a lot of different protocols, some of them doing money markets, so borrow and lend. Some of them are dexs, which allows you to create dlps and really swap, and the rest of them really go around different strategies that you create on top of these. So strategies in the real world, it's like asset management, right? Someone is an expert, and he's coming in and he's building a protocol, or we know it is defi vault to automate a process which is essentially an investment strategy. Or a capital a yield strategy.
The Challenge of Financial Literacy in DeFi
So what the problem here is that 99% of us, we just don't really know finance, right? We're not experts. We can maybe come in and take a borrow on AaVE, or we can deposit our ETH in a staking mechanism and get some yield on it. But there is a big question here. First, is it optimized? And b, can I do it better in more protocols? And this is what experts do, right? They come in and they really trade around different yield opportunities and different protocols. And if they really know what they're doing, they come up and they build a protocol for it. Again, yield protocols, yield optimizers. You have a bunch load of this with this problem we started. So now it's time to really basically intro what factor is connecting all of those DeFi capabilities into one single infrastructure, which allows basically to be the Shopify for DeFi.
Introducing Factor and its Unique Offerings
It allows anyone which is an expert to come in and create with the drag and drop interface, any deFi strategy that they can conceive fully automated, from taking flash loans, to providing liquidity, to harvesting on certain on chain events, anything is essentially possible, really a drag and drop interface where you come and create, and us other 99% of the people we can enjoy from a simple one click deposit into this permissionless asset management. So basically, by solving that, we allow a very flexible creation, again, a very immediate interface where anyone can create any deFi strategy in minutes, and the rest of us can just enjoy depositing to it, again, creating a p two p asset management. And I think that this is really like the exciting part that we're really aiming to unfold.
Exciting Developments Ahead
So you mentioned the Lord or the journey. We already have around 150 automations already live in our new UI and Dapp. And the exciting part, the creation, permissionless creation, is about to unfold by next month. And we are really excited to share it with the arbitrum community because it will be native to arbitrum only at this point. Yeah, I remember. So I've also been around the space for a while now, since 2017. And I remember, interacting with, well, like, using Uniswap back in 2020, you know, before like, or during the defi boom. And yeah, I found it how easy it was to use and how that led to other Defi protocols, like creating the own version of Uniswap, or even, you know, building on top of it, or expanding beyond the applications of Uniswap.
Reflecting on the Growth of DeFi
But yeah, it's crazy how fast, like, the Defi ecosystem evolved during that time in 2020, right, when it started out with compound, with Makerdao, with Uniswap, with Aave, like the ogs, right? And now you have over, I don't know how many Defi protocols we have, but I know in arbitrum there's a lot and it's hard to keep track of. But it's crazy how that has evolved so far.
Building an Awesome Platform
And yeah, I think what you guys are building is really awesome. It makes it simple for builders and users to do all defi things in one place, which is really cool to see because you want to keep things simple. And if you make things simple, that's how you're going to onboard tons of users outside of web three into Defi.
Catering to Creators
This is a great point, Rory, and I think you've hit it exactly the spot. So again, factor caters first of all for the creators. Let's say again, someone that really knows what they're doing. We have now defi that has evolved, you just mentioned it. If it's money markets have a compound on arbitrary, we have silo and I many others. And it's true to any other primitive, you just have so many options. And options mean different yield, different limitations, different features. And all of this could be seamlessly utilized in our interface in order for you to just go and access any operation.
Automation in Defi Strategies
So instead of manually going to compound to borrow and then maybe deposited into pendle and swap it on uniswap in order to just create what is basically like a yield strategy, we allow this completely with full automation with no code required. So again, super excited to really roll it out. We think it's something super innovative around the Defi realm and it will really be helpful, especially when these creations can be then monetized. So the creators a bit like think about the creator economy of YouTube or Shopify. Imagine if you have the knowledge to create strategies.
Creating Defi Protocols
Right now what you do is you create a Defi protocol that creates vault. Essentially. This is super costly to do both from development perspective. It will take you months to build, it will take you audit, it will take you all of the branding and basically creating an entire project for a single strategy. And we see it a lot over defi. With factor, you can create it in minutes with no audit required, and you are able to fully monetize it, earn deposit fees, withdraw fees. You are the owner and us depositors are enjoying your expertise as the creator.
New UI and Its Importance
Yeah, and you guys recently launched a new Uihe for the app. And I wanted to ask how big and important that milestone is for you at factor as a team, but also for the community there. That's a great question. So yeah, as you mentioned, we just recently launched a whole new UI. So essentially, all the components from the governance to the discovery of these strategies, is now a lot more seamless in terms of the experience.
Enhancing User Experience
It has a lot more color to it, but also minimalism. So it's easy on that. And we really think we've hit the point where we've concluded all of the strategy profile perspective. But now, as I just mentioned, over this journey, we are really unfolding the creation side of it. This new UI is really putting us on this pedestal of quality in terms of the UI and Ux, the experience. And now we are about to bring the creation side of it, which is fully aligned, by the way, with this UI. It was created together.
Innovative User Interfaces
And it means that again, I don't know if you guys have ever played around with Wix or maybe with Zapier if you're automating some emails. This is the type of experience we just created for Defi, and we're really about to release it in next month. So while this new UI was a huge milestone for us in terms of usability and experience, I believe the real innovation is really about to unfold when we release what we call Factor studio.
Showcasing New Features
100%. So let's start with what we already have outside. So if you now go to app Dot factor Dot file, you can access a variety of fully automated strategies with various automations and integrations from different protocols. Whether it's auto compounding your assets, to restaking assets, or leveraging long or short by taking flash loans on a variety of money markets. It's all now live again, as I previously said, 150 strategies that are fully automated.
Accessibility and Risk Management
This is, I think, by itself, it's a great way to access permissionless protocols without the need of the manual labor and the risk management from jumping from one protocol to another. But if we're already talking about these features, these are what we internally call building blocks. So leverage, auto compounding. These are utilizing Defi actions or functions from the contracts. The factor studio, what is now the full implementation of factor, will allow you to basically do all of these actions.
User-Centric Functionality
So not just leverage or auto compounding, but again, any imaginable function from Defi. Whether you want to borrow or repay or maybe take profits because the ETH price is going up or down. Any trigger that you want can be now fully with no code, be created permissionlessly by you. You don't need to wait for a protocol to do it. You don't need to manually connect your wallet into five different protocols and do this all by yourself. It's now seamless.
Community Engagement and Incentives
And yeah, I think this is like the major element of it. Of course we have a lot more in terms of the different incentives. Of course we also received the LTIPP from the Arbitrum Dao, which is already being distributed in the said strategies of leverage and auto compounding according to our community voting, which is again fully decentralized and up to the community. So feel free to participate and we'll unfold a lot more incentive campaigns once we unfold factor studio by next month.
Uniqueness of Factor Dao
Yeah, that's really cool. And obviously there's like other projects as well that are working on solving these challenges as well. And I want to ask like what makes factor Dao unique compared to others who are also tackling these types of challenges? No. If you know protocols that are tackling the challenges, I'd love to meet them. No, I'm kidding. There's a few, but most of these, I think what we are relatively getting compared to a lot based on the current implementation.
Understanding Factor's Unique Approach
Because again, you have a list of different strategies that they are automated from different protocols. And this is great, but this is, from our perspective only a demonstration for what is the creation platform that I just spoke about can do. And this is just a preview. And I think what makes factory different is that we really started with saying that factor is the composability layer of DeFi. And this is important. What we did is that we created a full infrastructure that is connected to over. Right now it's over 25 different protocols, but it has no limit to how many protocols it can aggregate together. And when I say aggregate together, it's not to provide you with a strategy that you can deposit into, it's to allow you to create and interact with all these protocol in one single place. And this is an inherent difference between what factory is building and let's say yield optimizers or strategy volts, for example.
Comparison with Other Yield Optimization Protocols
So a question that I have is, so is this similar to what beefy has done? Because I know they also do yield optimization, but so that's a great example. So no, the simple question is, no, beefy are a great protocol, by the way, I love beefy, and they are doing great work in this exact same field of yield optimizing. And what factor came to solve is exactly this pain point, because Bifi, as much as they're a great team, they have a limitation of how many strategies that they can integrate or create. And we wanted to have the same, let's say, end result of having strategies, but we didn't want to create them as factor because there is, there are DeFi experts outside and there are financial engineers that can really, or yield farmers, or however you want to call them, that would be able to create the best, most complex, most automized options that we as a protocol as factor could not foresee. And this is why we tackled it completely the other way around.
The Role of Factor Studio
We didn't create a yield optimizer. We created the infrastructure for you to create any yield optimized strategy. So this is like a major difference because it's a full creation protocol other than depositing into one. And where we meet is the fact that those creations that you can do on factor, you can monetize them. So again, instead of creating a protocol like Bifi, you can create with factor studio any type of complex strategy. And in our main, let's say, factor discover where you explore the strategies, which looks interface like yield optimizers such as beefy. These strategies are fully user created, meaning they are fully completed, automated and permissionless through the factor studio infrastructure, if it makes sense.
Empowering Users and Builders
So pretty much it gives users like, more freedom, as well as builders, to create their own strategies, their own customized strategies. Is that correct? Shopify for Defi man. Exactly. Right. Yeah. No, that's really cool. Yeah, I like that concept. And, you know, I know you mentioned the studio. I don't know, do you want to talk about it a little bit more? Or we can pivot away to a different topic, but I don't know if you wanted to talk touch more on the studio that's coming up on your end. Well, I mean, first of all, an art perspective studio is everything, but there is a lot of facets to it. So, as I just mentioned, first of all, there is the creators, right? They are creating any defi strategy, but with our extensions to these features, you can also monetize it.
Integration and SDK Features
So again, we're creating this P two P market, but it doesn't stop there, because everything that we built, again, is based on an infrastructure. And this infrastructure is also supporting an SDK, which means not only you can do it, no code let's say you're a defi strategist and you want to now build a very complex yield optimization, but you just don't know code. So here you can now do it in factor studio. But all of these interactions that are supported in factor studio are also available in a much more extensive SDK, which means if you're a lending protocol, a money market, for example, you can utilize the factor SDK to integrate leverage into your platform, utilizing your assets, your contracts. Because basically, when we integrate into a protocol, we make it composable completely.
Streamlining Management of Strategies
It can now be used as literally lego within any other combination of protocols. And this is a very crucial part in how you can manage a strategy, because manually speaking, it's just not possible. Like, you can't really sit all day and utilize five, six, seven different protocols and split and harvest them and rebalance the entire portrayal is just basically impossible. This is what factor solves. It allows these tools to be super simple for the creators and for the depositors, just easy access to it. When it comes to SDK, you can really just build anything. Like another tagline we like to use is create anything DeFi. Because it doesn't stop with DeFi strategies.
Potential Beyond DeFi Strategies
You can de facto build entire protocols with the SDK side. Build LRT's, build anything that you can imagine, even beyond just strategies themselves. So this is something that, again, will take some time to unfold. But we're really looking to bring studio and all of its enhancements out to play because this really plays out with the. Again, it's too early to say mass adoption outside of crypto, because I think crypto still needs some time to improve its UX in general, but really a way to make it a lot more accessible. Imagine just instead of going into this wild space and finding what to do with your eth, even for. For us, the natives, it's getting crazy.
The Importance of Accessibility in DeFi
So we just need to allow the most simple way to allow complex strategies to be accessible. Yeah, amen to that. And I think, yeah, so what I really love about the idea behind fact it down in the studio, like you mentioned, right. It not only caters to users, like what most DeFi protocols, have, right. But it also caters to builders, to developers, to defi experts that are into that stuff, into creating strategies. So it caters to multiple types of audiences, which is what you want as a DeFi protocol, right. Because, that way you could tap into different, pools or different groups of individuals and people, within the defi ecosystem.
Long-Term Benefits for Factor DAO
And that's going to be a big benefit to factor Dao in general, long term. Not only you're building for users, but you're also building for the devs. When you have developers, they can build really cool and innovative stuff on top of Factordao, which is really awesome to see. I'm really excited for you guys. Thank you. Thank you.
The User-Centric Approach
And this was a great point. Just to put it more even on emphasis, we cater to users through builders and creators. Right now, yes, there are some automations that you can come in and as a user and deposit, but these will eventually be deprecated. Again, as I previously mentioned, this is almost like a demonstration of the capabilities. But when this studio fully out roles and all these experts, the creators, the builders can create those complex automations and offer them in our marketplace. The marketplace is where the users are coming in to deposit simply, and they just have an array of diversified strategies, permissionlessly managed by different creators that have aligned incentives. They earn when the deposit, when the strategy is positively yielding. Right. So you all share the same strategy. I, as a creator, can bootstrap my strategy and really just start collecting deposits. I cannot access them, but I can manage the strategy if it was profitable.
The Earning Mechanism
I can then go and collect fees from the depositors, which have no idea in DeFi, but they're now earning a lot more efficient yield on their assets. And I think this is the holy grail, allowing the creators to build very simply. So the users will have a diversified array of selection. Yeah, yeah, I'm really excited for this. And is there anything else that you're excited about, you know, within factor Dao, or even like outside of factor Dao, like within the arbitram defi ecosystem, or even defi general like, where do you see the industry going forward? Yeah, so I think in a more general context, I think this is exactly where DeFi is now consolidating. So you've mentioned before there's all these different forks and now a lot of different redos of concepts that were tried before in DeFi. But we do see all those different innovations starting from the restaking derivatives. But I'm sure there is more to unfold. There has been, what, four years now since DeFi started to boom.
Innovations and Future Prospects
We haven't even seen all the different implementations that are possible and what people will come up as primitives. And I think this is also what drives the vision around factor. It was about saying, well, we would never know all of, or be in the forefront of every single creation or primitive. So what we want to achieve is the ability to want something like that. Different innovation comes in Defi. We can hook it up and now it's supported and people can use it in a simple way. And I think not only factor, but all of Defi will go through this phase, whether it will be cross chain liquidity or any type of messaging that will really allow the experience to be a lot smoother, because I think that technology wise, we are way ahead.
Challenges in User Experience
Again, not factor. I'm talking Defi. And I think crypto in general, there's a lot more to solve. But the experience itself is one of the biggest hurdles that until we provide good solutions to, we won't see anything behind some besides some nerds playing around with wallets. And I think we're on our way. It's just a matter of time. Yeah, yeah. I think this year so far, we've seen definitely tons of improvements on the UI UX front. For example, we have like, Uniswap, like leaning more towards mobile friendly with their app, the Uniswap wallet app. Also, a few other Defi protocols on arbitrum are also building mobile friendly apps as well to support their protocol, as well as with one click transaction and also adding the ability to sign in with an email or another way. This is the way.
The Right Direction for DeFi
I think this is the right direction that the Defi ecosystem is moving in. And yeah, I'm extremely bullish on what's coming. Yeah, this was a great point, and I think this is exactly the type of things. Anything from unwrapping and simplicity will put improvement. And once we get seamless with the experience, let's say web two is now offering, there won't be much of a difference for a user to jump from his bank app to defi app. Again, assuming a it's working and b the yield is good and we know how to make yield right in DeFi. But the problem is the experience for someone who is just, I don't know, your neighbor is just not possible at the moment to even start explaining how to get exposure to such thing.
Community Engagement and Contributions
And I think this will be the challenge. And yeah, I think we have a lot of talented people that are trying to solve it right now. Yeah, yeah, I feel like it's a hill up, like since nfts has popped off, because if you mention nfts to someone outside of crypto, they'll be like, yeah, I don't know about that. Yeah, I'm really excited to see what's coming with the defi ecosystem. But yeah. Do you want to talk about where can people learn more about factored out or even getting involved with the community? Of course, of course. Thank you. So first of all, as I previously mentioned, our website is factor fi. You can come in, join Discord. We have very extensive docs where you can read all about everything I just mentioned, including things that are now upcoming.
Contribution Opportunities
And to relate to the contribution part, we actually have a contributors program for anyone who wants to participate. Well, we're a dao at the end of the day, so we want to really come in and pull in people to participate and take part, whether it's with strategy creation to anything that regards to the modeling of different aspects, from incentivization to the adapters and all the different automations and templates that will arise with the creation of Factor studio. Again, we have a very intensive, let's say tokenomics, which all revolves around basically revenue share and contribution. So there's a lot to participate. I won't now elaborate on our entire tokenomics, but you can definitely come in and read more about it and just take part.
Closing Remarks
We're really looking forward for anyone who has interest in Defi and would love to solve hard problems. Cool. Well, appreciate you, Kurapika, for joining us today. And thank you to the community as well for tuning in. And yeah, if you have any questions, feel free to check Factordao and jump in to their community to get involved. But yeah, thank you so much. I hope everybody here has a great day. Good night wherever you are across the world and see you guys soon. Thank you everyone.
