This space is hosted by WOLF_Financial
Space Summary
The Twitter space delved into the intricate landscape of deploying DeFi protocols across multiple blockchains, focusing on the lending market deep dive. Participants discussed liquidity, fundraising, tokenomics, real world assets, governance, and overcoming technical challenges to ensure seamless DeFi operations. Strategic decisions based on growth potential and risk assessment were highlighted, emphasizing the importance of evaluating opportunities and managing risks in the DeFi space.
Questions
Q: What are the technical challenges in maintaining cross-chain functionality for a lending market?
A: Deployments on different blockchains bring both opportunities and complexities.
Q: How does a protocol decide on which blockchain to deploy?
A: The decision is influenced by growth potential and the ability to solve specific problems on that chain.
Q: What is the importance of risk assessment before deploying on a new blockchain?
A: Risk analysis ensures that deployment is cost-effective and viable.
Q: How can a protocol assess its potential to add value to a particular chain?
A: Evaluating the potential for value addition forms the basis of decisions on deployment.
Q: What challenges exist in addressing interoperability in the DeFi space?
A: Interoperability challenges need to be tackled for seamless DeFi operations.
Q: What were the concluding remarks at the end of the Twitter space?
A: The Twitter space wrapped up with a thank you message and outlined plans for future discussions.
Highlights
Time: 00:05:00
Introduction of ZeroLend, Overview of ZeroLend's role and strategy in the lending space.
Time: 00:10:57
Fundraising Efforts, Discussion on recent fundraising efforts and their outcomes.
Time: 00:19:37
Goals for 2024, Outline of ZeroLend's upcoming goals and milestones.
Time: 00:32:23
Governance Initiatives, Insights into the planned governance initiatives.
Time: 00:25:15
Tokenomics and Airdrops, Explanation of tokenomics structure and airdrop plans.
Time: 00:48:41
Technical Challenges, Addressing the technical challenges of cross-chain functionality.
Time: 00:53:25
Onboarding New Users, Strategies for bringing new users into the Web3 ecosystem.
Time: 00:39:22
Real World Assets, Discussion on tokenizing real-world assets like treasury bills and real estate.
Time: 00:57:27
Community Engagement, Emphasis on involving the community in protocol development.
Time: 01:00:11
Future Developments, Anticipation of future enhancements to improve user experience.
Key Takeaways
- Understanding the complexity of deploying on different blockchains is crucial.
- Identifying growth opportunities and problem-solving strategies on specific chains is key.
- Risk assessment and management are essential before deploying on a new blockchain.
- Evaluating the potential value addition to a chain aids in decision-making.
- Addressing interoperability challenges in the DeFi landscape is a significant obstacle.
- Strategic decisions on blockchain deployment impact growth potential and problem-solving capabilities.
- Assessing potential value addition to a blockchain before deployment is crucial for success.
- Risk analysis before deployment ensures cost-effectiveness and viability.
- Interoperability challenges must be overcome for seamless DeFi operations.
- Thank you message and future discussion plans concluded the space with insights into the DeFi landscape.
Behind the Mic
y. The liquidity of the asset and how easy you can get money against it, because that's what matters for us as a lending protocol. So that's one thing. And the second piece is, as you pointed out, the regulatory constraints and being able tokenize and bring the assets. So having said these two things, the most common asset or the most common and liquid RWA that's being used in the space right now are treasury bills, essentially, because treasury bills, it offers you that 5% yield as a financial instrument, it's also attractive and it's sustainable yields, right? So when you bring an asset like that and you create more DeFi plays that you can with it, and the legal grounds on that is like, you know, there's different ways that people do it, but there are company which follow regulations and they're able tokenize tBils or create an RWA stablecoin that's backed by tbils, which. So it's essentially giving you the same yield as a t bill would, but it's in the crypto tokenized state. Right. So these, in my opinion, I would say these are the ones that's going to come in first. And I'm personally not looking heavily into the RWA space where it's backed by houses. But again, when you bring real estate into question, it's also about that liquidity and how exactly do you account, say, the rents that you're being paid, how do you get that and convert that into crypto? The whole tokenization space is something that's up and coming. It's the same stands for us as a team. We are always looking at the markets from a very broad scale and we're going to be looking at which assets we can integrate and how best it's going to play in. For us as a lending protocol. Again, for us, it's just three basic criteria. How secure is it? Does it follow regulation? Second is how liquid is the asset against it? Third, is it attractive enough for someone to want to come and deposit and then borrow against it? So if it meets these criteria, it can be brought on chain, simple enough, and then we can put it in a risk average way into our peers. Got you. So following up to those points, I feel like it's interesting to kind of understand what we're seeing as far as the coin issuance or whatever it may be. The tokenization of this doesn't always end up so clean cut as to, let's say, treasury bills, for example. When it gets to the point of more tangible assets, we've seen quite a few offerings over with some of the structured products side or on some of the lending market sides, where it's both issued by Tradify, backed by Tradify, and that sort of thing. And I think that's like, to me that's more so interesting because traditional assets coming into the space, because I think it's easily digestible by everybody. It's easy to say like, okay, I know what this is. These are the governing regulations, right? And bringing that into the blockchain side of things, or bringing that into the lending market side of things, more tangibly so, puts a better wrapper on saying that this is the protocol to use, this is the NA system strong across the board. Yes. Hard stop. That's all I got today. Okay, cool. Riker, closing thoughts? Yeah, closing thoughts would be really great to see more from MetaPool and from otter Sec on the front with Xero Lend, and it's really that cross chain functionality of objectification rate and being able to facilitate that. That is definitely interesting to follow. What else can be? What else do you see as their ability to continue expanding profit markets here, seeing more from that functionality with their protocols like MetaPool? I think so far that's all from our side. Joshua and Nick, I really enjoyed being here. I really enjoyed all the insights that were shared too. Look forward to more conversations and speaking soon on further on these platforms going forward. Ryker. Absolutely. Got to echo that. Super appreciate you guys for having us on and thanks for the space. We appreciated it. Appreciate you both guys. And as we close here, I'm going to pass it back to Kayla to close out. Thank you so much. Fantastic. Thank you, Nick. Thanks very much for that commentary. So I'll go ahead and throw it on over to our wrap up to provide some insights on the market. Thank you Kayla. Thank you, Nick. Great to hear from you here as well. So final comments around market dynamics. Just as a reminder for new folks joining in, what we've seen largely supports the points we've been making. Interest rates, things are ticking up a little bit each day, staying fairly steady. Perfect. Thanks very much. Okay, and now we're here to wrap up. So thanks very much for all that's been said and shared here. We'll see you guys all again soon. Is anyone interested in some of these interesting projects on our end happening? Cool, it sounds good. Thanks very much. Thanks everyone. Bye. Cheers. Super appreciate it. Bye. Are there any last minute questions or comments you'll have for the audience? So what are some of the challenges here in maintaining, and I think this is right up like Toki's and some other areas, the technical challenges in maintaining the cross chain functionality for a lending market. I feel like that does get a little bit complex. How are you addressing all that and really what are the challenges? Right, so this is technical, but I'll try to keep it super simple. So when a money market or a protocol like zero lend a decides to, let's say deploy on Ethereum or some BTC, l two or on linea, on manta or arbitrum, whatever, we try to see what is the potential for us to grow over there first if you're solving a problem there. For example, recently zero lend deployed on Xlayer, which is the blockchain, the chain, the l two run by OKX. And we quickly became the number one learning protocol and the number one protocol over there because we saw an opportunity of growth and the ability to solve a problem in that space. But if you look at other chains, for example, let's say polygon or avalanche or let's say optimism, Ethereum, mainnet, a lot of these guys already have your big competitors out there. We want to try to assess what is the potential for us to add value into the chain, right? And once we kind of say, okay, hey, let's go deep into this blockchain or whatever, we do a lot of risk assessment and whatever to, you know, risk management analysis to make sure we can actually do it in a cost of deploy there in a cost effective way. It does always make for an enjoyable experience. I'll try Riker one more time if you want to unmute and share, but if not, or if he's vigorously over there trying to unmute, but spaces just isn't letting him. I feel your pain. I feel your pain. But big thank you to everybody. Yep, there you go. He literally messaged me. He goes, fuck my life, Twitter. Okay. Yeah, no, I hear you. I hear you. It's all good. I appreciate you for coming on. I think we. We got all the points covered that we did need to cover. So again, big thank you to Joshua and Ryker for leading the charge here, as well as action Nick's Toki, Kayla Lucas was on here. See everybody in an hour on the x spaces crew for some fun chats. Take care, everybody. Enjoy your Thursday morning.
