🎧 DeFi Wizards Talk Crosschain Lending, Airdrops & Tokenomics
Round Table Recap: Monday, March 13th
Russian DeFi
March 29, 2023
Bebis started out as a business analyst but quickly became proficient in Solidity and is now working on multiple crypto projects.
Flu started farming BTC and LTC in 2013 and is now a full-time mod in the space.
The panel discusses the difference between this bear market and previous ones, Granary's product-market fit, cross-chain lending, the benefits for TradFi firms, and plans for Granary in 2023. They also touch on SVB's impact on the crypto space and the need for better emphasis on risk management and education.
You can also give this episode a listen here
Panel
• Kadeem @Crypto_Clarke
• Flu @DeFinalFantasy
• Bebis @0xBebis_
Introduction
• Bebis started out as a lower level business analyst that helped out his companies finance department in early 2020.
• He stumbled across a BTC article and on its triple ledger accounting system.
• In seeing the benefits of BTC as an accounting solution, in 6 months Bebis was proficient in Solidity and trained to be an ETH security engineer and more.
• In early 2021, he started the reaper.farm application which skyrocketed to 300M TVL before the bear market hit.
• He’s now working on 5 projects which all collectively work together.
• Flu started farming BTC and LTC in 2013 after looking into BTC in 2011. He sold several hundred thousand LTC at a couple cent.
• He went full time in the space in terms of modding.
• In 2021, he got his big break and was investing whilst working with DeFi Kingdoms and helped its development.
• After leaving them, he worked for many L1s and L2s after founding his project GranaryFinance.
🎧️ Audio clip from the intro of the Space 👇️
What Feels Different This Time as Compared to Previous Bear Markets?
• Bebis mentions the difference being that we have to a certain extent, demonstrated product market fit.
• He particularly acknowledges that market environment was convenient with low interest rates as well as VC funding being a predominant reason of the last bull run.
• However, Bebis also emphasises that the last bull run was a significant step in the progression of the space.
🎧️ Listen to an audio clip about bear markets and DeFi lending
What is Granary’s Product-market Fit?
• Bebis says that with interest rates so high, there is a fight in crypto to find a place in the market again.
• He mentions that increasing sustainability and efficiency in magnitude can provide liquidity from TradFi.
• With Granary they want to create infrastructure that meets the standards of generating with their AUM, 3-5% in revenue.
• He signifies that they also want to divert their revenue back to users in order to grow as much as possible.
🎧️ Granary’s product-market fit, and cross-chain lending 👇️
Why Do People Need Cross Chain Lending?
• Addressing the DeFi market, Bebis says liquidity is siloed into different networks because people are emotionally invested into said networks.
• Giving users access, a brand that they can trust with their security and giving better value than alternatives is what they want to do, and they can execute this by building cross chain natively says Bebis.
• Example: If Apple becomes friendly for crypto users can interact with a wallet or app without users thinking or caring about where that liquidity is coming from. Granary has everything in place to provide this.
• Bebis believes there is political weight against crypto and reiterates that until that prospect dies down, only then will big institutions like Apple be favouring crypto.
• Flu questions why America wants to be the tech central of the future but doesn’t understand why the regulators are against development.
• Bebis gives a nice summary stating how companies and developers in America want to give users the value they could get from crypto but are limited in doing so because of the US’s stance on the space.
What Benefit Would TradFi Firms Have From Your Protocol?
• Bebis says the cool thing about DeFi is that you have proof of reserves and total indestructability.
• He mentions how developers can build and safely let applications run without the need of numerous analysts and people involved.
• Bebis uses the current bond crisis as an example stating that banks could pull the underlying USD value from their assets enabling them to only risk the yield.
• He emphasises how the Granary system updates incentive every single ETH block.
• Bebis talks about how most large banks have some sort of exposure to crypto, but a larger initiative is required for projects like the ones he is working on to then be utilised within institutions.
Benefits for Users
• Flu mentions how the competitive rates are a huge factor for users.
• He talks on the reserve factor (so the amount of interest the protocol) takes from the user are minute around 1% whereas competitors take around 20-50%.
Plans for Granary in 2023
• Bebis states in 2023 he wants to create a new paradigm for risk management and suiting them explicitly for crypto.
• He says Granary V2 will be very big in addressing a larger portion of the market.
• He also reiterates he wants to see a better product market fit where crypto can embed its place in the financial system to build efficiency and more value to the end user.
🎧️ Audio clip from this section 👇️
SVB’s Impact on Crypto Space
• Bebis mentions how ramping fiat to crypto will be harder however this does validate the need for robust systems like DeFi.
• Babis believes with stablecoins de-pegging a lot of fear insinuated throughout the space and that this will be temporary.
• He wants to see better emphasis on risk management in DeFi and wants to see more intention by regulatory bodies in the US to step up.
• Bebis says a lot of education needs to be done on the crypto space.
• He says teams main targets are to generate as much revenue as possible and price in exponential growth into tokens so that they can immediately 5-10x minimum. He wants to see teams benefit less in projects and shift the focus to their users.