Carbon <> Demex <> StaFiHub: All you need to know about rSWTH

Recorded: May 18, 2023 Duration: 0:26:10

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Everyone here guys here us. I think we can get started. Hello, yes, I think we can hear you well. Awesome.
Adam, are you able to say something? Just to test that the mic is working. Hey man, I can hear you well. Hey, that's good. Okay. Yeah, hey everyone. Thanks for coming to the carbon DMX that we have to the spaces and basically here's where you get to know everything you need to know about.
So first off, let's do a quick introduction for the audience who are listening in today. So I'm CJ from Carbon and I'm the head of business development and DMAX you want to introduce? Hi everyone, I'm Sam. I'm from the DMAX team and
and I work on the growth side of things. I'm happy to be here. Thanks. Thanks so much. And Adam, could you introduce yourself to the audience? Hey everyone, nice to meet you today. My name is Adam and I'm the community dean of Staffey Protocol.
Alright, so thanks for coming in everyone and thanks for our speakers for coming on to these two spaces. Let's talk about more about liquid-staking in the Cosmos ecosystem. I think we are seeing a lot of activities on liquid-staking on the
a TVM ecosystem, with LIDAR recently launching V2. But the cosmos is really a place where there is so much liquid-staking activity going on because every single cosmos app chain is a POS token that can benefit
from liquid staking. So I wanted to check with Steffi, what do you guys think about the whole industry right now for liquid staking and what do you think are the main benefits in your opinion when it comes to liquid staking?
So I think the liquid staking is really taking off this year. Firstly, it's not a new concept. StaffFee initially proposed this idea back in 2020 and we launched our first liquid staking token.
back then. But lately this year, especially with the Ethereum Shanghai, great everybody's got into the hype of liquid-staking. And I believe people are starting to realize its benefits mostly in the form of liquidity of stink tokens.
So, for anyone that's new to Stuffy, so Stuffy is a abbreviation of staking finance and it's a decentralized protocol that unlocks the liquidity of your staking assets. So, there's a lot of benefits that you can get from liquid staking. So, when users staking
their proof of stake tokens through staff fee. They'll actually receive an equivalent amount of our tokens, which actually stands for reward tokens. So these reward tokens essentially represent your stake tokens and can be used and offer benefits
to stake is in many ways for example, users can still earn staking rewards while also having access to the liquidity of their stake tokens. So our tokens can be transferred to other wallets which means you're essentially transferring a token.
your stick tokens specifically. So users can also trade our tokens on taxes, as we can see on Emacs. So this basically means that users will not have to go through any unbonding period in the case of carbon at 70s to receive their underlying assets.
So that can be done at any time at all. So additionally, you'll be able to participate in a variety of defy activities such as lending, bonds, options and more, essentially allowing you more flexibility, yield and rewards to be obtained on top of
you're sticking rewards. So as for product, so that's from the point of these stickers, but networks also have many benefits from using LSDs. So for protocols that implement LSDs,
users will be encouraged to state due to increased liquidity, hence increasing the staking ratio of the network and benefiting with increased security. So other than that, if I'm not mistaken, Carbon has a huge amount of tokens, currently state.
with a staking ratio of above 70%. So this staking ratio is actually really good for the security of the anti-eco system, but it will actually cause huge slippages due to the decreased liquidity when used in D5. So you win
some but you do some but that's where LSDs come into play. So these LSDs essentially unlocks the liquidity and allows state tokens to circulate through the entire ecosystem. So another good point
is that LSDs basically reduce the risk of centralization through a network. So for example, Stuffy Hub has something called the smart delegation algorithm which delegates state
carbon to validate this according with three simple rules. So these rules are to maximize taking rewards, minimize potential losses and ensure the decentralization of validators to avoid both in power decentralization. So for
For example, our algorithm automatically scans the performance of all validators on chain and sorts out the best validators to stay on while maintaining the centralization with a validator rotation mechanism. So these few points pretty much highlight the main benefits of
LSTs in the car moment. Well that was a lot to add. And I think we mentioned a lot of good points. Just one caveat. I think carbon's unstaking period is actually 30 days, which makes LSD having a LSD version.
of Swift even more meaningful because then our community of Stakers do not have to go to the 30 days unbawning period which can be quite long especially in crypto they can just go to the R Swift Swift LP pool on our DemiCalk change and then just swap R Swift into Swift
with instant basically instantly redeeming their liquid steaks with into swift so that's really cool and I think we actually have we launched just last week and now there's about 200k of swift r-sweep liquidity already and the landing market is also maxed out
So people can actually LP Swift with us with and then deposit in our landing market and then borrow against it for more capital efficiency while increasing the liquidity of Swift as with and That's totally mixed out in money market right now, but we are going to visit a very soon
so that more people can actually do the sweep R3 liquidity pooling. Yeah, I also wanted to talk about the point that you mentioned about having the tradeoff between security and liquidity and how LSD is already one of the good
and sustainable way of solving a problem. As you mentioned, we have 70% of our surf stick on our chain. That's one of the highest I believe. That also means that we don't have a lot of surf USD liquidity. Now that we have R-Surf, which is an S-Surf RSD, potentially
we could explore having base pairs with R3 instead. So it would be R3USD could be a pair. But that's something that we can explore. If RSD is going to be super cornerstone of the entire
system. Moving on, we are very interested to know about the design story and development for ASIF. Could you mind sharing with us how the entire development and what kind of obstacles and challenges you guys face and what users can expect for ASIF?
Sure, CJ. So back in January, I believe we were really excited to be approached by the team to develop carbon-stakeway-staking solution, which we believe would solve many of the pain points highlighted earlier and was offered a development
in Grand True CIP32, which not only plans to develop R-Swift, but also synergized by integrating stuffy hubs LSD such as R-Atem, R-Wahua, and R-Iris into carbon. So after the proposal,
was passed. We basically begin development and the development process for R Swift actually shares many similarities with that of our item and in our ongoing commitment to enhance security and promote decentralization.
We have employed interchain accounts to facilitate the development of R-SWIFIya staffie hub. So staffie hub actually utilizes generalized methodology for Cosmos based tokens and this so this enables the integration
of new art tokens really easily and conveniently requiring minimal development efforts by our team. So however, we did encounter a small hiccup during the process. So originally, Stavihab chain was operating on the IBC
on a different outdated, would you say, IBC version, whereas carbon chain relied on IBC version 6. So there was a considerable discrepancy in the IBC versions, resulting in filled callbacks when using IBC version 6.
is due to the changes in callback methods and parameters. Consequently, it became necessary for us to upgrade the IBC versions in the Staffey Hub chain. So upon upgrading to IBC version 5.2,
We actually successfully completed the integration of R Swift. I believe it's a testament to our adaptability and dedication to ensuring seamless operations when integrating your R tokens in our system. For those not familiar with
Interchain accounts they essentially enable control over an account on a host chain from a controller chain. For the integration of R-Swip, the StaffiHub chain acts as a controller chain which is registered and
ICA on the carbon chain, which represents the host chain. So this approach enhances security and promotes decentralization and also simplifies the integration process. So yeah. Thanks for that explanation, Adam.
interesting stuff. What I'd ask you, this is a question, so there's a lot of different liquid-staking providers within Cosmos itself and Staffi definitely stands out as one. So how do you kind of differentiate Staffi again, say, like, strive
provide persistence, quick server, when essentially they're also providing or liquid taking derivatives for at-end and so on. So I believe Stuffy has a few advantages over our competitors.
But firstly, let me put it out there that we believe that competition in this space is really healthy to avoid decentralisation of any one party, especially when it comes to staking. So this helps benefit networks by increasing the security when too old
more LSD protocols come into play as other than one huge wheel taking control of everything. So coming back to the question. So Staffi actually is developed on two app chains. So we have the Staffi chain and the Staffi Hub
So the stuffy chain is actually based on substrate, which handles most of our EVM and we are upgrading it soon to integrate more EVM networks. While stuffy hub is actually a Cosmos SDK based chain,
which focuses more on the Cosmos ecosystem. So yeah, essentially a cross-chain LSD protocol, as we don't, we believe that there will be more than one chain for specific
purposes in the future. So that's one of the points. So other than that, our liquidity is also a very important advantage. We realized that the most important aspect when it comes to LLX
these is liquidity and it's one of the hurdles we are facing for the fine today. So our tech and advancements can only reach as far as our liquidity can. So we've been basically trying to increase the liquidity
liquidity across all our LSDs as much as possible to benefit our sneakers. And we believe this is a snowball effect which will lead more sneakers to stay with Staffi as well. So I hope that answers your question.
Yeah, that's that's pretty solid on. So like you said, it's very important to have good competition in the crypto space. Of course, make sure everything is decentralized as possible.
But this one, I think we can open up the floor to questions. Is anyone the audience who would like to maybe raise their hand or ask any questions? We can give it a minute or so.
While we wait for questions from the audience, we just wanted to share some news about what DMX has been developing. Carbon MDMAX has been developing. We are launching the first liquid sticking index in crypto, where we know that liquid sticking governance tokens have done video well this year, and if there were
was only a way to just buy one token, long one token, and then get exposure to all of this liquid-staking governance token, including SEFY, then that would have been very convenient. And that's why we are building that, and it will go live very soon, probably next week, but no promises.
And that's going to be quite exciting. We just published a blog post on the carbon blog, so you're on the on the switch of blog and you can take a look if you are interested in that. The market for that will go live next week as I just mentioned and do a keep a look out for it when it's life. Yep. Since
There are no questions at the moment from the audience. So I guess if Adam, do you have anything that you want to share to the audience before we end these two spaces? I do have a question for Sam actually.
Coming back to the question, I mean I see that demand is currently developing a really good DAX and with leverage as well. So in your honest opinion, how do you see LSEs
being traded and integrated into taxes moving forward. For example, CJ previously mentioned that in the future we may not see pool tokens being swift anymore and instead they'll be
people with hard swift instead and things of that nature? Yeah, so I can answer your question. Basically like CJ mentioned, since our swift is at the same time validating in the chain as well as enabling people to free up their liquidity for trading, it would make
at some point if liquids taking derivatives kind of take over and become like the cornerstone of crypto. So yeah, I think it's difficult to say at this point, but yeah, DMX is definitely focused on listing more exotic aspects.
assets. As you mentioned, we are developing a pop tech. So yeah, I think right now the focus for us is to kind of continue listing LSDs on our money market for the time being, seeing that users are more interested in
lending their assets to on the Staking Awards plus lending incentives plus even external incentives. But in terms of trading, we are more focused on exotic assets. So like CJA just mentioned, like the liquid-staking index. Yeah, that's the plan as of now. CJA, do you have anything to mention?
Yeah, I just wanted to add that with so many liquid sticking tokens nowadays, it will be pretty interesting to create like a liquid sticking ETF after LSD token itself, not the governance. So for example, to usmos, we already have, we
have r-atom from stfb, sd-atom from stride, i think q-atom is coming from quick silver with like sdk-atom from persistence so it will be pretty interesting if there is a basket of liquid stake atom that can be created to give users potentially a sort of diversify
exposure to LSD atom. So that's something that some that's on our minds and we might see if it's feasible and yeah that's how we can continue to incorporate more of the growth of LSD onto to DMAX. That's a really good point. I
mean like diversifying LSD's true and ETIA for example or index would also help decentralized and decrease the risk of any one LSD protocol taking a huge chunk of the market.
Yeah, that's one of the main reasons behind why things such a product would actually be very useful in the future and especially when we talk about regulations and such a strict resistance We have like US being a bit more a bit stricter right now on different for a de-type protocol
So you never know when their censorship hammer actually hit and then some liquid-stecking protocols based in US might be affected. So it's always good to have a diversified pool of LSD SNETF so that you can basically mitigate this kind of risk. So with that on that note,
I think we can call it a Peter's Paces. If there are no other questions, then yeah, that's the end of this video's Paces. Do keep a lookout for what both of us, the FIND makes are developing and we look forward to hearing from you guys and seeing you guys again in our next video's Paces.
All right, thanks everyone. Thanks so much, DJ. Thanks, DJ. Thanks, Sam. Thanks everyone. Bye-bye. Bye. Bye. Bye.