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Crypto Innovation Series : Insrt Finance , merging Defi and $PEPE NFTS

Recorded: April 28, 2023



Yo, can you guys hear me? Testing, testing.
Hey, how's it going, man? What's up? What's going on? Mr. Producer, can you send a co-host invite to insert finance, brother?
We have the Echo Host status.
All right, perfect, perfect. Uh, Laura's you can go ahead and, um, retweet the, uh, spaces link. Um, if, if, uh, if you guys want to amplify it and all that stuff, I'll go ahead and amplify on the end.
Alright guys, we'll get started in two minutes. Mr. Produced a right at 705, just play the YouTube clip thing on our stream, and then we'll get started, alright brother, just give me the thumbs up.
right after 705 so I can give the introduction and we can get the show on the road because I know these boys are over at consensus at the moment and I don't want to hold them up here for too long.
Appreciate it.
Alright Mr. Producer, you can roll the clip now on YouTube. You can do the opening.
Okay, okay, all right. What's going on everyone? Welcome to another edition of Crypto World Radio. My name is Lavi and today we're joined by insert finance. So, Laura is one of the founders is behind the profile and we're also being joined by Hentai Avenger who's a part of their biz dev team. I don't want to thank our sponsor
for today's show, NOLO's Protocol. There are non-custodial lending apps with sustainable tokenomics and unique features for borrowers. It offers loans that are under collateralized with financing up to 150% without the risk of liquidation through its lease solution. Their pin suite is up here on the nest. I'll feel free to check them out.
I want to welcome you guys to this interview in general discussion with insert finance and Hentai Avenger and so insert by the way guys just a short little blurb there an innovative NFT finance protocol that simplifies the process of utilizing NFT five protocols by allowing for the easy
composition of various strategies such as their shard volts which we'll get into and they also allow fractional access to blue chip NFTs like Pudgy Penguins recently and they also announce some pretty cool stuff for for bear chain and we'll have some of those guys up on tomorrow's spaces
And so, uh, inserts going to allow for a wider range of users to participate who don't necessarily have the capital ticket into these blue chips. And so in this interview, we're going to dive deep into the features that they provide once they go live and capabilities of insert and also explore some of its potential use cases over in the NFT
I think this is a hidden gem that many people don't know about. So without further ado, let's get started. I want to remind you guys that
This space is being uploaded and streamed on to our YouTube channel, but of course once the interview is over you can also catch it up here on Twitter. So I want to welcome you guys. Thank you so much for taking the time out of your busy day. I know you guys are at consensus to come and talk some shop with us, man.
So let's go on ahead and get the conversation rolling. Loris, how are you doing today, my man? Good to have you up here, brother. Appreciate it. And thank you for the great welcome. Yeah, it's the entire team right now. We're at Austin, spending some time around the side of us at consensus, having a great time.
It's been a few days already. So yeah, at this point in time, we're just hanging out thinking about the protocol and where we want to take things from here. Maybe we can start out with some introductions on my end and on hand ties and as well. Just start out the conversation. What do you think?
Yeah, sounds good man sounds good and I see we're also joined by inverse bra which is pretty sick man. That's so cool man, but yeah go ahead and introduce yourself Lloris and then we'll go on over to Hensai Hensai, I hope you're doing today I hope you're doing good today man Sorry for the slight stutter there man, but yeah
Sure, so my experience is primarily in economics and financial law. Been around the block when it comes to private markets and DLT, but I've started really obviously following your love with D5 back in 2020.
When DeFi Summer started, it was pretty obvious that all the things that people have been working on for quite a long time when it comes to the nostalgia we're converging at that point. And the fruits of that labor really shown themselves for the past three years and it's far of the bear market. What I found extremely interesting and what kind of
made me excited about NFT finances. The fact that the NFT credit markets, which for those who don't know, or NFT lending, is how it's sometimes called has basically grown in an extremely spectacular pace for the past two years. So basically from almost nothing to almost a billion lending volumes for what is a relatively
But what I think NFTs provide is like they're an extremely cool asset class. It isn't just like a shit coin and it's not just a shit coin with a picture on top. It's a mix of community, it's a mix of culture, there's a lot of interesting properties when it comes to every single collection.
increases, I would have to say elements of potential volatility and variance, even if the liquidity really isn't there that much. And like the whole idea behind insert was, you know, there's a lot of these NFT finance primitives coming out. How about we build a simplified way to make NFTs productive?
by making it super easy for anybody to access the kind of strategies that are available in NFT5. That's a short spiel about what insert is all about. Our mission is to make NFTs productive and make NFT5 as accessible as possible. But I'm going to hand over the mic to Hentai.
Cool, so yep, it's to be everyone. So I grew up in a very traditional background and I got into trading background 2016. So it's a lot of my time trading biotech and pharma and then I ended up finding myself trading at a floor for a
I'm gonna run a time and then yeah, I'd say around the summer of 2020 I kind of ventured into ETH defying and I'll kind of just spout about from there right so It was more like food tokens getting rug by chef know me all that fun stuff, but yeah, I just spent a lot of my time now just traveling and
They'll be some cool shit and yeah, sure and dry myself That's what it's all about man having fun. I think there's too many complex shit out there in the market and I think we got to go back to the roots and just have fun man I myself I had a fucking blast playing in the frog coin ecosystem
I don't have a lot of money.
some protocols by allowing for the easy composition of various strategies. What would love to know if you guys can explain more about the process of the fractional ownership and how it works for some of these blue chip NFTs through shard volts and of course you can go into what the shard volts are exactly.
Sure I can curl with that, so...
fractionalization protocol, right? And fractionalization is, of course, it's just the start of what we're doing. And fractionalization has been attempted before by, fractional, or now known as Tessera, by NFTX, but where we think those previous attempts kind of went wrong was that they
We're building a DeFi-esque experience for folks who are interested in entities. That's a slightly different audience. What we have done with the Shardwald is we make it very cheap. We make it extremely accessible for people to stay on, in particular, collections.
through fractional ownership of a blue chip acid or in some cases, depending on specific char wilt, a basket of acids for one collection. What we do with that acid with our existing char wilt mechanism is that we use NFT lending primitives, for example, JPEG to collateralize the acid.
and the borrowed capital is deployed into a yield farming strategy. So when it comes down to the base value proposition or the utility that the short ball provides, it's you get spot exposure to Bluetooth collection in a cheap way, but secondly you also get rewarded
for staying long in that position through the yield farming mechanism. And thoroughly the position itself is represented by NFT. Not on ERC20 Tilken, well he was previously done in other fractionalization, Permanence of Protocols, but on NFT which you can trade on OpenSea, that has its own secondary market.
With the shortfall, our intent was to create a native NFT user, fractalization experience, and so far we have reached, if I'm not mistaken, at this point it's 1.5 million TVL, and as a product we're successfully generating quite a bit of fees.
Walt Whitelists, people who have botched shards, people who have traded shards, and it's really a fucking cool flying door to Austin and seeing people who are fans of the protocol. So if there are any sharders here in the community, thank you. Thank you for supporting our team and thank you for using Insert Finance. Really appreciated.
If you guys understood how bullish I was on you guys, if only you guys understood man, but anyways, from the conversation that we're having at the moment, I would like to know how users would be able to propose new vaults.
and also apply for a grant from the development fund. I read a little bit on that and also the shard votes that we're talking about. I feel like they offer an innovative way for users to gain some of these fractional ownership from these NFTs and would also love to know if insert finance does
plan to expand. It's offerings beyond the blue ships like the punks and the BYA seas and things of that nature. I know you guys have been making a lot of headlines and these other communities like Pudgy Penguins and more recently as I said like the the bear chain NFTs which I'm also bigly bullish on
Yeah, so how we see insert is dot
It's year-end for NET finance. Right? So, how we want to scale it over time is that a variety of exposures will be provided through a variety of bolts and a variety of mechanisms on the protocol. And how we want to accomplish that is by the core team. We build out the
mechanism design, we design it, we implement that particular build and each mechanism can provide, you can spend out hypothetically hundreds of walls. But we don't necessarily want to do that at the end. For example, the Charbober, like the core team is deeply involved in every single Charbober lease,
But we do want to take a more, we do want to scale the protocol by allowing community members to propose their own waltz and how we would reward them as if they would be able to get a part of the protocol fees on top of that other token in Santos. So I wouldn't necessarily call us an asset
management protocol, but folks will be able to create their own vaults in order to and and set parameters for particular exposures based on our mechanism design. That would allow them to, let's say, leverage the technology that we have built to offer their friends or
or if they're a well-known, let's say NFT insider, the ability to sort of like get exposure to their alpha. But that is something that's, we're not actually building that. That's something where we would like to be, I would have to say six straight months down the line. Right now what we want to focus on is
building out the shard bolts, scaling them, improving the shard, which is the NFT representing the position, improving the shards as a piece of technology, making them function better as a derivative, and track the prices of collections more accurately so we can start building on a healthy secondary market for shards.
Let's go, men. I know that Insert Finance also utilizes a risk management layer and health monitors to protect the positive assets in these shard vaults. Could you guys explain how these features work to keep the positive assets safe?
I think something that's really overlooked in this market is the security aspect. So if you guys want to dive into that, man, really excited, brother. Sure, it's actually not that complicated. So the main rest that we have is that
Well, on the fact that the JPEGs and the char walls get coloralized and if we default the NFT gets liquidated, which is obviously not what we want people to experience if they have purchased a shard via our
As such, what we do is we have open, when you have scripts on open zeppelin, monitoring, let's say the health ratio of each loan that we take, and we have an automated process in place wherein the funds from our treasury are used to pay down, load,
If, let's say, the price of the underlying asset in the world, for example, a bake or a punk or a bong bear, if it depreciates, right? And in that case, we've paid down a little part of the loan in order to maintain a healthy
ratio on top of that we maintain a significant buffer above the liquidation threshold just to make sure the sharders that the possibility of folks losing their shards because the underlying asset has been liquidated the depth profit
that our possibility is quite remote unless we see massive downswing in the market and we have seen massive downswing in the market but our risk management system worked to pay down some of the loans and everybody still has their shots so we're very happy about that.
sick man and I understand that you guys are having your own NFT collection that offers some pretty cool benefits like reduce protocol fees and early access to other products. If you guys can go into some
detail about the benefits of holding that NFT. I think that'd be pretty cool as I know that you guys are striving for the innovation side of things in the NFT, uh, fight space.
The idea behind the Don events collection was that we want to reward early community members who have been supporting us from the very start. And what users currently get by holding a Don events as automated, automatic, white list,
participation in every single one of the bolts. Where we want to expand the utility of the Donovan Cert collection is offering produce protocol fees, offering priority rights and protocol governance for voting rights
But on top of that, we are launching an insensitization campaign that we call insert seasons and there will be a couple of seasons that we'll focus on, a particular user action in the protocol and Donna Vincent Holder is throughout these seasons.
receive multiplication benefits as well as a particular community reward that we're going to be rolling on. Let's say four to five months for now. But unfortunately I can't talk about it but all I can say is that all Donald answer holders will be very very happy.
All good, man, all good. And so, from what I'm understanding, Shard owners collectively vote on all the strategies that they can use with their rub and FTs. How exactly does the voting process work?
Um, to clarify, we're still not there yet. That is something that we will implement in the build relatively soon. Um, but the idea is that over time, Shard, uh, wall participants will be able to select the particular strategies on how that asset gets collateralized and more than you'll get
deployed and on top of that, sharp holders can choose to liquidate the Walt. So for example, let's assume that the price of Biggs have appreciated by, say, 10 to 15% ever since the sharp bulb was initialized and on a pro-Rodded basis, sharp holders
can bolt to look with 8th of the wall so that they can capture the price appreciation. The NFT hold by the wall gets sold on an open market and the proceeds are distributed to the shortholders. Awesome, man. I guess now we can dive more into the DeFi side of things. You guys have an
It might have been really simplified the process of utilizing NFT finance protocols. I would like to know if you can go into detail about the wrappers and also the integrations that would allow users to explore the yield options on their NFTs.
Sure. So what we effectively do right now is we wrap around different protocols in order to facilitate a particular, the implementation of particular mechanism. For example, the shireball, what it does and wrap wraps around two things, wrap some of our polarization primitives and if T lending
And then it wraps around yield sources. And what we basically want to do is build up mechanisms that wrap around these different primitives, but offer an access layer for users to basically, God.
more sophisticated forms of exposure but in a relatively simple way. And yeah, the idea is that each mechanism, for example, the shagval, there's a great example, each mechanism is both of the sub-ohrappers and the rappers call us into a particular product with the shagval
being our first product, but of course we're thinking of a lot of interesting things that we may be able to roll out over the next 12 months, especially out of the space scales, especially as the infrastructure layer and NFT finance becomes ever more sophisticated.
Strik, man, and my next question would be for Hentai Avenger, Hentai, man. I understand that you're a part of the Biz Dev team. So how do you see insert finance being separated from all these other NFT fire protocols that, you know,
You can't really separate them compared to the other platforms that are basically just a fork of another collection, right? Where they're just like, "Let's fucking go," and all that stuff. And really, this wag me culture and all they have is a Twitter space and a JPEG.
Yeah, so I would like to say that the the NFT 5 space is still Very very immature in the sense that nothing's really built out on the infrastructure scale, so I think when it comes to the actual product
And so we're not in the same place.
That will be surrounded around user deposits and it will give, hopefully we're looking to quote unquote, air drop users over the course of a couple of months. So. So as far as like the token is released, once the governance token is released,
I understand of course like there's the air drop component aspect as well as things like staking boost and all that depending on the rarity of their NFTs. So how exactly like would the governance token work and how would it affect the DOI NFT holders?
Two legal reasons I can't answer that question. It's all good man. It's all good. I'll go brother. I'll go man. So Would you guys be able to discuss any future plans with insert finance beyond the shard vaults and how it plans?
to continue innovating in the NFT-file space? Sure. So touching on the char vaults, what we'll be doing, or the course of a few weeks, is without going into specific details before all the big announcements come out as, let's say,
will be implementing in UWAY how users can deploy capital to Shard Waltz in order to get their fractionalized exposures and doing a lot of things that will make the Shard as a derivative far more sophisticated. In terms of future mechanism design, we'll be primarily
focus on is more of the NFT deposit side of things, right? Well, we currently, so at this point in time, as an NFT holder, the only way how you can unlock the Fritidate is by taking out a loan against your NFT and then you have to figure out what you will be doing with that loan in order to make, you know,
pay by the loan and get some kind of spread. We haven't really seen things like primary, prime brokerage mechanisms when it comes to NFT finance. When you think of prime brokerage, Gearbox is a good example of how that exists in DeFi. That is the
like the liquidity from their NFTs without necessarily taking out a loan and taking out that risk. Sounds a bit vague, but it's a big problem and we're looking into it and you guys will see a cool show coming up in announcements in just a few months.
Awesome man, I actually want to open it up to the crowd. See some recognizable faces here, Snorlax, Hagrid, DT, Kim Chi, Tempest. If you guys want to come up, feel free to hit that request, but invite us up to speak. We'd love to have you guys up here if you guys have any questions for Henton.
I think we only have about like 10 or so minutes left with your boys. I want to keep you held up here. I want you guys to have funny consensus and network and all that stuff. But if you guys are new to these spaces and all that stuff,
If you guys are enjoying this content, feel free to follow these guys up here on the speaker panel and also feel free to follow us here because Bitcoin, my name is lobby, I host these spaces throughout the week here because Bitcoin and you know it features innovative products just
Like insert finance and we have spaces with founders devs People from the V speed Vc space and some key opinion leaders like Ben counting all that stuff feel free to follow us and it's been a pleasure to have you guys up here and We actually have stuffy stuffy what's going on brother?
And I also also I want to I want to make it known with a crowd if you're gonna come out if you're gonna come on up here and You know these spaces don't be a dick. I have to say it don't be a dick don't be an ass and Yeah, that that just has to be said and also don't be a fucking freak
There are a lot of freaks in these Twitter spaces. So don't be a freak and be kind. All right. So Sefi go on ahead brother. Good to have you up. So the first. Yeah, the first. I'll question of the day. Be be be be nice to my boys bro. Yeah, go ahead man. Oh, it's
Maybe insert can maybe describe a little bit about like how does the protocol itself sort of monetize this? How does it stay in business? What's the business model? Sure, it's a great question. We do intermediations. So we take a little bit of a rage origination of feedback.
every single time that the bulb is set up and on the other hand we take a little bit of a fee once the voltage or liquidator, right. Plus there's a performance fee on top of the yield that the show will generate. So there's three fees, one at the start, one for the yield, and one was the voltage liquidator.
Kim Chi. What's going on brother? Go on right ahead bro. So what do you think of the notion that if NFTs you know if utility really becomes a thing, NFTs go to zero. So that's kind of how Pauling on the head of
the business development, pitch that consensus the other day. He says if everything is going according to plan, the game plan is that NFTs go to zero because we finally have NASA, the awesome NASA utility. And like we don't have these crazy price action regarding NFC projects.
It depends on what segment of the market you're looking at. So obviously in our multi-year vision, we're actually betting on that more and more property rights and intellectual property and in charge of the last, that's what we'll be representing on chain.
my NFTs, but I'm not exactly sure that, for example, the we're going to see the complete decimation of existing collections. People like specling with NFTs, they like sleeping floors, they like the communities. So I think
I think it's important to segment or distinguish entities as a technology. So non-functional token with metadata representing potential claim or just representing whatever. You can represent absolutely anything. I know a guy who's represented a company's balance sheet.
And distinguishing that, which is absolutely a good thing, right from that adoption, from the other half to say the more speckled of side where, well, you have all coins with JPEGs, right? That's pretty much what it is. And this kind of has this because of the liquidity, has
is kind of like commodities like field, different kind of trading experience relative to the coins. So I wouldn't necessarily agree with Paul Young's side of BD's opinion.
So I was saying, "Panji, protocol, but so follow up I have it." I like that you brought up the the distinguishment between technology and how it's kind of being used right now as an identity, right? Because some people do make technology their entire sense of self. That's why we have people like the Mac and PC Wars.
Some people that was a whole stick so I think it's just the growing pains of what this technology which is no nothing more than a tool right is going to be So I'm excited to see it like I'm growing fts. I just want to see the Landscape mature bit it needs some growing. Yeah
Yeah, absolutely. Absolutely. How we see it, but this isn't like an original thought in any way. I think this is generally how people see NFTs, especially when you're thinking about the big picture, is that NFTs kind of went through their ICO era, right? And now we're at the point where people are thinking about building the MakerDow building costs.
compound building previtums using the psychology. But what is exhilarating for us is the fact that, well, you might not get everybody to trade old coins or engage in sophisticated DeFi operations and actions, but people love this
people love aesthetics, people love things that provide a sense of identity, which is something that you mentioned as well. And what we want to do over time is encompass those aspects of NFTs once they reach more escape velocity. But at the same time, really focusing on a beach HUD,
Which is, hey, you know, you have this great group of super early adopters who love the culture, love the community, they like to speculate, they like to gamble, they want those lottery tickets, and facilitating a great user experience for them, and then concentrically expand as the base layer of technology improves. Hope that makes sense.
It did. Thank you.
My pleasure.
Listen man, so this is a bit of a curve ball take before we wrap up man. I want to know Listen if Pepe were to have an NFT, right?
And that team were to contact you guys and say, "Look here man, we want to work with you. Would you guys take that leap of faith and work with the Pepe team?"
Hand Thai, what do you think? It would come down to bull chaper's approval.
It's like a monster dude. This ecosystem is truly a beast man And you know with what you guys are doing and adding in like some aspects to it I think it'd be pretty sick and would really start like a cold movement right? Lower side believe you said something like
about like year and finance right and how I see that happening is you guys would be the first mover and what you guys are doing and I think it'd be pretty sick man so I guess really the last question that I have outside of some roadmap stuff is like how
exactly does longing and shorting NFTs work. Like do you short and long against the floor on Ethereum or unlike the US DC, I mean the USD price of set
NFC relative to Ethereum. I've always found that confusing, right? Because there are some protocols where you're able to do that and it's like if there's like a long on on on board apes, right? And some done
As I've always been confused on how the longing and shorting works with NFT5.
Sure, so where we don't
We don't offer perps. That's something we're definitely not interested in. Yeah, when it comes to perpetuals and NFTs, there's a pretty, you know, if you look at NFTs perp, I think the answer is already there, like 90% of the trades on NFTs perp.
It's basically short. It's shorts all across the board, right? And there's lots of cool protocol. We do know that there's quite a few other people building and active perks protocols up there as well. And yeah, it's basically what you take is. You speculate on this pop price, it goes up and goes down.
because spot prices can function as step changes. It's a completely different experience compared to I don't know like dy/deox or GMX. Purps are helpful and there's a lot of adoption. If I'm not mistaken, NSE Purp has generated already half a million fees from
their private trading competition. So, docking space is definitely, we're definitely looking at it if we don't want to build it. And if anybody here is enough of a D-junk to take bets on, NFTs, I would suggest checking out NFTs perp or any of the other perpetuals protocols that will be coming out next to a three months.
Let's go. I'm ready to fucking ape. Well, I've brought in a bull trapper. Sir, I know you requested to speak. I'm gonna ask you kindly before you proceed to be as kind as possible. Finding your heart to be as kind as possible, but nonetheless, welcome to the show.
Hope you're doing well. What's up brother? Damn that really threw a wrench for what I was about to say but calm down Brian I'm seeing your post man Because you asked so nicely I'll just say hint eye avenger sucked my weenus and that's all I wanted to say
I see. Hentai, I hope you didn't take any offense to that. No, I love Mr. Wolffeffer. Okay, cool, cool. Like, I checked his mutuals and Big Dog Cabo and my boy's over at Dobex following him.
The coast was clear. The coast was clear. Gonna use some corporate jargon and you know bring it back to the Pepe thing. It was not too like less than two weeks ago. The guy who started Pepe launched his own Pepe and it's equal action. Obviously not finding until advice and everything but there you go.
Yeah, um believe they're called the dogs. Unfortunately guys, we have to bounce. Yeah, yeah, yeah, yeah, to an event here at Consensus was great being on the space though. And thank you for the awesome welcome and for
the questions as well.
So feel free to follow these boys over from insert finance and our speaker panel and Yeah, thank you all so much. We'll be back on spaces tomorrow at 4.15 PM Eastern time and once again if you enjoy these spaces feel free to follow us
here because Bitcoin, every follow counts and all that crap. So anyways, shout out to our sponsor, Nullis Protocol once more, man. Excuse the curse words and all that. So peace out guys. God bless you all. Thank you everybody.

FAQ on Crypto Innovation Series : Insrt Finance , merging Defi and $PEPE NFTS | Twitter Space Recording

Who was the guest on the podcast?
Insert Finance was the guest on the podcast.
What is Insert Finance?
Insert Finance is an innovative NFT finance protocol that simplifies the process of utilizing NFT DeFi protocols by allowing for the easy composition of various strategies.
What is the mission of Insert Finance?
The mission of Insert Finance is to make NFTs productive and make NFT5 as accessible as possible.
What is NFT lending?
NFT lending, also known as NFT credit markets or NFT finance, is the process of offering loans that are under collateralized with financing up to 150% without the risk of liquidation through its lease solution.
What is Shard Vault?
Shard Vault is a fractionalization protocol that allows users to own a fraction of a blue chip NFT asset or a basket of assets for one collection, providing spot exposure and yield farming rewards.
What is special about Insert Finance's Shard Vault mechanism?
The Shard Vault mechanism uses NFT lending primitives to collateralize the asset, and the borrowed capital is deployed into a yield farming strategy. The position itself is represented by an NFT, which can be traded on OpenSea.
Who is the sponsor of the podcast?
Nolo's Protocol is the sponsor of the podcast, which is a non-custodial lending app with sustainable tokenomics and unique features for borrowers.
What is the main purpose of the podcast?
The podcast aims to discuss and explore Insert Finance's features, capabilities and potential use cases in the NFT market.
Where was the guest of the podcast located during the recording?
The guest of the podcast was located at Consensus.
Where can listeners find the recording of the podcast?
The recording of the podcast is uploaded and streamed on their YouTube channel, and can also be found on Twitter after the interview is over.