Projects
![]()
No projects found
Investors
New
DAO Treasuries
DATs
Lend / Borrow APRs
Chains
Categories
Spaces
Get to know Amplifi partnership - our latest partners
Recorded: Aug. 8, 2024 Duration: 1:05:42Space Recording
Full Transcription
If you haven't already, be sure to check us out and experience that seamless Web3 experience
we've all been envisioning, which is now available through Layer 1X.
So thanks for tuning in.
My name is Cody.
I'm the Chief Experience Officer here at Layer 1X and your host for today's episode.
Today, we've invited one of Layer 1X's recently announced partners to join us in this episode.
And before we jump in and introduce our special guest, please be sure to share this link to
this episode of Xtalks.
It will definitely help share the love, but also give our Xtalks episode the opportunity
to reach a broader audience.
Plus, you know, I would love you guys forever if you did that, and I know our guests would
definitely appreciate it as well.
And if you haven't done so, go ahead and give Amplify a quick follow.
So they're a great project that is teamed up with Layer 1X, and we will be diving in to learn
a little bit more about them.
So without further ado, Jack, are you there?
Can we do a quick mic check real quick?
Yes, sir.
Can you hear me?
I can hear you loud and clear, loud and clear.
Thank you for joining us.
It's a pleasure to have you on.
I know we've been on a couple of AMAs across the board over the last few months, but this
is great to kind of get to know you, do a little bit deeper dive into you and Amplify.
So if you wouldn't mind just taking about 60 seconds to just kind of introduce yourself,
the Amplify project, and kind of clarify to our listeners, what exactly is AI-powered
EDM cross-chain liquidity management protocol, what it is and what it does?
Yeah, sure thing.
A lot of buzzwords there.
We'll break it down for sure and make it easier to understand.
But so just everyone here, I'm Jeff.
I'm the founder of Amplify.
Amplify, you know, personal background about myself.
I've been an investor in the space since 2017.
I've been the head of growth for a number of different crypto projects across GameFi,
DeFi, Layer 1 projects, ultimately building growth strategies, whether that's building
communities, launching a token, acquiring users, NFT sales, a whole broad range of different
things, which, you know, has been very interesting to learn many different strategies that have
helped, you know, grow multiple different types of businesses grow and to where we are today.
So Amplify, AI-powered cross-chain liquidity management protocol.
In a nutshell, essentially, it's AI-powered asset management.
So what we do is our project or our tech essentially plugs into directly into a number of different
DeFi and RWA protocols.
And then our AI model auto-rebalances the pools that the assets are deposited in every 24 hours
to generate a higher, more stable and lower risk APY.
To try and break it down into simple terms, let's say, for example, you want to maximize
your USDT APY.
If you're on Polygon, obviously, you're limited to a certain amount of pools.
If you want to swap to USDC, you have to do that manually.
If you want to swap from Polygon to another chain, you have to do that manually.
If you want to swap from Aave to Compound, you have to do that manually.
So it's a very time-intensive process.
Costly as well, like Cody was saying, with bridging.
Gas fees are quite low on these layer twos, but bridging costs can still be quite high.
And so Amplify automates that whole entire process.
And we'll get into that a little bit further as we go along.
I love it.
Love it.
Yeah.
So we've got quite a few, I would call them L1X OGs out in the audience listening today.
And so I'm pretty sure I'm seeing a lot of hearts, thumbs up, and things going as you were talking.
So I think that they have definitely got their wheels turning on what kind of things can be done
with the L1X technology and with Amplify on there.
So before I kind of jive in and ask the first question, if you haven't done so, like I said,
please be sure to share this out, give Amplify a follow.
And then also, if you happen to have any questions for Jeff or about Amplify or what he's currently
working on over there, feel free to drop those in the comments below.
And I will definitely get that up to Jeff to answer a little bit later in this episode.
So without further ado, let's just kind of jump in there.
You ready for this one, Jeff?
Yes, sir. Born ready. Let's go.
All right. I always do the hard questions.
You know, if you've ever been on our AMA with Xtalk, you know I like to go down some deep rabbit holes.
So with that being said, let's just kind of dive in.
Every project has a unique genesis.
Can you tell us and those that are listening in about the spark that ignited the idea for Amplify?
Likewise, what kind of problem are you itching to solve and how did that evolve into the vision or where Amplify is today?
For sure. Great question.
So the genesis or the spark of the idea for Amplify really came off the back of the collapse of many different platforms in 2022.
Most namely centralized lenders like Celsius, BlockFi, Voyager.
You know, what we saw is really a complete collapse, loss of $17 billion across centralized platforms, with most of them being everyday people.
I know people, I know people myself, friends of mine who lost pretty much their life savings through some of these platforms.
And most of that still hasn't been recovered to this day.
And there might never be a recovery.
We know FTX did reasonably well to recover users' funds, but other players in the game really haven't even started the process, nor will we know if they ever will.
So off the back of that, you know, I'm a big advocate of DeFi.
I've been, you know, my main holdings as an investor will be in DeFi protocols.
I firmly believe that DeFi has probably the best use case.
I've yet to see that sort of Netflix or Spotify moment in the financial sector whereby things are radically different.
Revolut have done a great job of really sort of bringing banking into the digital age, but still it's very much, you know, an old school sector that really needs to be revamped.
And I personally see DeFi as being the way to do that.
So what we try to do is say, okay, well, there's a lot of failings of centralized entities, mostly the single point of failure, right?
Once you put your assets into that protocol or that platform, you are trusting them with your money and they can do whatever they want with it.
And then ultimately, if they mess up, they can just shut the doors on you and you can no longer withdraw.
So that's really terrible for everyone.
And this is why centralized entities, I firmly believe, you know, aren't the best way to do things.
We also look at DeFi protocols.
And between 2021 and 2023, over 500 hacks resulted in losses of $6.7 billion.
So it's better than CeFi, but not much better, right?
Still in total there, you're talking about nearly $25 billion has been lost between the two sectors.
Obviously, that created a lot of distrust.
However, within DeFi, there are certain protocols that have lasted the test of time, that have been through many bear markets and have had no exploits.
And the problem with DeFi protocols is, unfortunately, developers can build in backdoors themselves, claim they got exploited, but actually just sucked funds out of the protocol and ran away with it, right?
And that's happened over and over and over again.
DeFi is definitely better in the sense that it's all automated through smart contracts.
However, it's too complex, right?
If you look at DeFi Llama, over 3,500 protocols generate yield for users, which is just an immense amount of protocols.
And it's nearly impossible to optimize across any amount of them, right?
It's extremely time-consuming finding the right protocols, finding the right yields, which are ever-changing, you know, making sure you're on the right network, make sure you've got the right assets.
And it's extremely overwhelming for even people who are in DeFi, let alone regular everyday people who use the likes of Celsius and BlockFi and Nexo because those were easy to use protocols, right?
You set up your account, you deposit your assets, you earn, simple as.
No management, no faff, no, you know, no complexity, which is the, which is, you know, the really big selling point of those platforms.
And so we said, okay, well, look, how can we take the best of what centralized entities have to offer, which is the accessibility, the ease of use, and whatever else, and combine it with the best of what DeFi has to offer, which is non-custodial decentralization, you know, many different options.
So you've got decentralized or diversified risk of assets as well.
Combine those two together to create a new hybrid model.
And that's basically what we've done, right?
And we can get into the specifics of how the platform works and how we've done that.
But that would be the primary reason why we've built what we've built.
And it's, it's been a reiteration of a reiteration.
We've probably reiterated the idea, you know, 12 plus times to get to where we are.
And we believe that the current model is probably the best that is out there for what we're trying to achieve.
I love it.
I love it.
It sounds like there's a, definitely a good use case that you're going after.
You know, kind of looking at the ethos of what L1X is all about as well as, you know, basically being able to unite a lot of different projects and chains together to create that seamless experience.
But likewise, you know, with our, our swap capabilities is to tackle those, those bridge hacks that, you know, some of those hack exploits that you were talking about.
So, you know, you know, there's definitely prime opportunity for, for any, any project to step up and tackle those kinds of things that are known issues, known high risk things to kind of make it more simple, more safe for people.
So, so definitely gets me excited about what you guys are doing and the possibilities with us.
So one follow-up question that I did have based upon what you were stating is, is that you, you, you mentioned earlier that you do a cycle of, I think you said 24 hours.
Every 24 hours, you're kind of reevaluating, recycling funds around, shifting some things around when it comes to, to you know, the, the financial crashes of some of these places, like you were talking about, like FTX and, and some of those, how, how, how do you combat that?
If you're only evaluating like every 24 hours, do you have like safety kind of, uh, measures in place to kind of trigger auto things to, to move funds, uh, sooner than 24 hours or, you know, how does that work?
Yeah, uh, absolutely.
Great question.
And this is primarily one of the big things that we looked at as well.
So the 24 hours is the redistribution of assets.
So every 24 hours, the AI model will be monitoring the, the APYs, the, the dynamic APYs of all the various pools and protocols, and then it will run various simulations and then determine what's the best allocation of funds at that time.
It could be across six pools.
It could be across 10 pools, across X amount of protocols or chains, but that's only for the redistribution of assets to ensure we're generating a favorable APY.
When it comes to security measures, it's entirely different.
The AI is always on alert, shall we say, for any issues that might happen.
So the major issues that we've identified is obviously de-pegging.
So we have a system in place whereby if a certain stable coin de-pegs by anything over 1%, immediately all funds, so let's say it's USDT, for example, all USDT is pulled from all liquidity pools.
It's front run, right?
So high gas is paid in order to front run that pull of liquidity and is auto-converted into another stable coin like USDC or DAI.
We also have a situation like obviously when USDC dipped last year, everyone probably remembers that, DAI also dipped as well with that because of the connection between the two in terms of holding.
So what happens then as well is that if USDC drops, there's also now a sort of a close eye, if you will, that's kept on DAI as well alongside that.
If we go through a massive colossal crash and all stable coins de-peg, then there is alternative looking to pull to fiat, which we're looking to implement, it's not there at the moment, or putting it into another asset instead.
So there's a number of risk mitigation that we look at, the AI will also monitor smart contracts into different pools, so we'll monitor the activity levels of certain pools, the volume, the depth of that pool, so withdrawal and deposit volume over X amount of days.
So one of the things we'll look at is, is this pool slowly dying, or is this pool slowly growing, and that will have a big factor on whether it distributes assets to that pool, and how much is weighted towards those specific pools.
For example, if we take Anchor, which was UST, which everyone remembers, Terra Luna, stable coin, which collapsed, and what we saw was there was a rush for liquidity into UST on Anchor,
and people who responded too late weren't able to pull their funds out because there wasn't enough liquidity there.
In that circumstance, the AI would identify that there's an unusual level of activity, that there's a lot of liquidity being sucked out of that pool,
and as a fail-safe, would front-run liquidity pulling from that pool as well, and then auto-convert it into another stable coin just to be safe.
So these are the sort of things we're building. Obviously, we can look at historical data, what's gone wrong with different projects,
what's gone wrong with different protocols, and try and mitigate as many risks as possible.
But those are a few of the fail-safes that we sort of use to keep users fun and safe.
That's awesome. That's awesome. Yeah, definitely a lot of different applications that sounds like you definitely have going on there.
Now, are these pools that you are kind of watching and stuff, are they specifically identified pools,
or are these things that as users are signing up for your services that you monitor everything that they're in specifically,
or are they specific pools that you're kind of monitoring for?
Do you mind jumping in and explaining that a little bit more in depth, how that works?
Yeah, for sure. So these are, every pool that we choose is chosen specifically for a number of factors.
Like I said, we're not interested, at least not yet, of generating the highest APY for users.
We're interested in generating a higher than they could themselves, and a much lower risk APY.
And what I mean by that is diversification of assets.
So, number one, we choose the protocols with the best security, the top protocols that have a history of user safety, keeping funds safe,
you know, no major exploits, things like that.
So you're talking about like Aave, Compound, Balancer, like your major platforms.
We also choose protocols that have deep liquidity.
And so one of the things we've looked at, for example, is Bfee.
Bfee is one of the biggest, you know, DeFi protocols out there in terms of TVL.
But what you find with Bfee is, you know, they might offer 20% or 25% APY.
However, the depth of that pool might be $50,000.
And so if you were to put in, you know, 100K or 500K or a million dollars into that pool,
number one, it would destroy the APY.
But number two, it's massively risky as you being, you know, a 70%, 75% holder of a pool.
If you want to pull liquidity out, you're not going to be able to do so.
So, and this is where the AI model comes in as well.
AI needs to be carefully trained, right?
So you need to make sure that there's proper guardrails in place because the thing is,
AI will do really well until it doesn't.
And so if you give it the opportunity to do something, you know, like, for example,
give it access to a Bfee pool with very low liquidity, there is a chance that it could
overly or deposit too many assets in that pool and cause a bit of an issue.
So we're very careful about what we choose.
And what we do is basically initially when we build out the initial infrastructure,
so the chains that we choose, the protocols that we choose, and the pools that we integrate with,
we will also in the future have our AI model basically monitor on-chain data.
Looking at a number of criteria for future opportunities.
So these could be other protocols, other liquidity pools that look interesting,
that have basically passed a specific criteria.
And if it's interesting, the AI model will basically recommend this protocol to our users,
and they will vote on it via governance model as to whether they want to implement that or not.
So we don't just decide after a while what protocols to bring in, what protocols to not bring in.
We actually leave that up to the community.
And at the moment, we've got our growth strategy, and our growth strategy is very much focused on
the best, top-tier, safest protocols to generate yield from across multiple chains, of course.
But in the future, we're looking at creating what's called like a hyper strategy.
And this would be a higher risk, right?
So let's say the average APY of the growth pool is 10%.
The hyper would look for maybe 20%, 25%.
And of course, users realize that the risk is much higher.
Of course, the protocols must hit certain criteria to be considered.
But the idea there is that if people want to try and generate a higher APY, they have the option to do so.
And so the AI might, you know, recommend higher risk protocols for those particular strategies,
again, which could be voted on by the community.
When I say higher risk, of course, they have to meet certain criteria that determines that it is still very safe compared to the vast majority of protocols out there.
But naturally, you know, higher APY means higher risk.
No, that's awesome.
So just to kind of clarify, if people are wanting to have a higher risk, rather than that low, stable growth that you were talking about,
is it a community vote?
Or would individuals be able to choose their own kind of threshold in that term?
So it would be a community vote.
Now, we did actually look at users selecting what APY they wanted.
But the issue with that is ultimately we pay the gas fees for the user, right?
And this is how it becomes more accessible.
This is part of the whole accessibility piece.
So we actually pay all of the gas.
So a user, once they deposit their assets in the pool, they don't have to touch the platform again.
They just need to withdraw.
Our AI does everything, swaps, cross-chain swaps, whatever it might be.
We need to take care of all of it.
As a result, it's already quite gas intensive, as I'm sure you can imagine.
So if we allowed each individual user to choose their own individual APYs, they would all be on different strategies, which means that the cost of gas would be unbelievably astronomical.
And it just wouldn't be a viable business model at all.
So until a solution for that comes up, we're sort of stuck with, you know, I wouldn't say one size fits all because the idea is we'll have a couple of different strategies, but those users who go into those strategies will all be on the same strategy, so to speak.
Yeah, no, that makes loads of sense.
Yeah, and I think you kind of touched upon it, right, different models and stuff like that.
So kind of pivoting, my next question is, you know, AI is still kind of a relatively new concept and tech that's being implemented across the board in Web3 and a lot of different use cases.
Why did you specifically choose to go with AI, this specific kind of AI model for Amplify?
And obviously, it's got its pros and it's got its cons, as you kind of mentioned, but, you know, what are some things that you could see it empowering for the community, your community in ways of traditional DeFi, in what other ways traditional DeFi projects can't?
Yeah, great question.
So one of the questions I always get, especially from developers, is why are you using AI?
Why not just use a logic-based model that can ultimately, you know, allocate assets as it's supposed to?
And the reason is because there's going to be such a high level of variability that we need to have a fluid model that can basically make decisions.
And what I mean by that is, you know, at the moment, we're going to be on Aave.
We're going across multiple chains.
Already, if you're on four chains in Aave, and we're using USDC, USDT, and DAI, that's 12 different pools that you get to allocate, right?
That's only in one protocol.
Now, what if we integrate 30 protocols?
All of a sudden, you're going to have over 100 pools.
You cannot build a logic-based model that can distribute assets across 100 different pools based on constantly ever-changing criteria, such as volume, you know, pool depth, historical data.
There's all sorts of other things that we look at.
And not only are we looking to earn with DeFi, we're also looking to earn an RWA.
So, this is where we sort of tried to, our goal was to maintain a 10% APY on average.
Obviously, if we can get more, we will, but minimum 10% regardless of market conditions.
And what we'll see is that, obviously, DeFi, when it has high volume, it's very, very lucrative in terms of APYs.
However, when volume dips, that's when the APYs drop right down.
But RWA has tokenized real estate, tokenized commodities, tokenized fine art that's linked to the real world.
And those assets tend to drive better APYs in crypto bear markets than crypto native protocols.
And so, during those times, that's where the AI will favor, or the idea is, will favor RWA protocols over DeFi protocols to maintain that sort of standard APY.
And the idea here is to have this sort of gold standard of where people can park their capital, access liquidity instantly, and whatever else, but still have a good return on their investment.
That's auto-compounded every 24 hours.
So, to manage all of that, we need to have a fluid model.
Not to mention, there's things like, because the margins are tight, let's say the users are getting 10% and Amplify has like 1%.
Every time we conduct a swap, let's say we're swapping DAI on Polygon to USDT on Arbitrum, there's going to be always some amount of slippage, right?
Depending on which DEXs you're using, depending on the volume currently within those pools on those DEXs, and a load of other factors.
So, what you need to do is, if the swap from USD or from DAI to USDT is too high, it's going to have to look for a new route.
And that route is going to have to have the correct slippage, and it's going to have to know where to position that asset into what protocol, into what pool to still generate that APY.
So, there's so many factors to take into consideration that it's impossible to do a logic-based approach.
On top of that, I firmly believe that AI and AI-driven finance, and AI in general obviously is going to change the world dramatically, but AI-driven finance is still in its early stages.
And I ultimately, and I genuinely believe that the best way forward from a safety perspective of users' funds is to trust in machines, right?
Because one of the big things that we have wrong with FTX, with Celsius, with BlockFi is human greed, right?
When times are good, people make terrible decisions.
They get FOMO, they take bigger risks, they put everyone's money on the line.
You see this even now with mean coins, and we're not even in a full bull run.
And then when things go wrong, people are very hesitant to make the right move at the right time.
So, although they might make bigger gains during the bull run, they'll always make bigger losses in the bear market.
And what we want to build is a long-term sustainable model where if you were to park your capital, day after day, you're earning auto-compounded, no risk, well, very low risk compared to what's out there,
and offer a new model that's basically powered by AI to a wider audience, not just in crypto, but also we plan to do an earn-on-fiat model for more of a traditional finance audience.
I love it.
I love it.
You definitely have my wheels turning with a lot of different things that we could definitely do together, but you were about halfway through, so let me just kind of pause here.
For those that are just tuning in, welcome.
My name is Cody.
I am the Chief Experience Officer at Layer 1X, and we're doing a spotlight with Jeff at Amplify, one of the recently announced partnerships within the L1X ecosystem.
And lots of good things coming, and so we'll get diving into that here shortly.
But if you haven't done so already, please be sure to share out the link to this episode so that we can get it out to a broader audience.
Jeff is definitely fully loaded right now with a lot of great answers to the questions that I'm proposing, and it's just a great project all around.
So we're excited to partner with him and his group.
Likewise, if you happen to have any questions for Jeff and Amplify, please be sure to drop those in the threads below, and I will bring those up a little bit later as well.
Likewise, please give Jeff and Amplify a quick follow.
He would definitely love that.
I would love it.
And let's show him some L1X community love, that's for sure.
So now, the real question is, Jeff, here's a pretty hard question.
You ready for this one?
Let's start out by asking, what was it about Layer 1X, and either it's our technology or where we were headed, that made it a perfect fit for Amplify?
What was that specific aha moment when you realized the potential synergy between our two projects?
Tough questions, tough questions.
But this one's actually a bit easier, I think, so that's good news.
So we've spoken about what we call the consumer problem, which is centralized versus decentralized platforms, the loss of funds and whatever else.
We also have what's called the tech problem, and that's the fragmentation of liquidity in DeFi.
So if you look at the total DeFi TVL, 80% of that is spread across nine major EVM chains, right?
Polygon, Ethereum, Optimism, Arbitrum, etc.
So there's a huge amount of liquidity spread across nine chains, right?
If you take $100 billion, $80 billion of that is spread across nine chains.
To move assets from one chain to another chain is difficult, right?
It's costly as well.
And oftentimes, it's not straightforward.
So what I mean by that is, if you want to move your assets from Polygon to Arbitrum, there is no direct bridge.
You either have to bridge to Ethereum and then bridge from Ethereum to Arbitrum, or you have to send your Polygon or your MATIC to a centralized exchange and then send it back to your hot wallet on Arbitrum network.
Now, obviously, going through a centralized provider defeats the whole purpose of decentralization.
It's also time consuming.
And then there's the issue of bridging, which obviously has a lot of vulnerabilities, but also costs a lot of money.
And also, your assets sometimes get held for, you know, seven days, for example.
So it's very, very poor user experience.
And what I love about Layer 1X is it solves all of that, right?
It has the infrastructure in place where you can allow Amplify or the AI model of Amplify to freely move assets across different chains,
where we can then obviously deposit those assets into various protocols on various chains to generate the yields that we need.
On top of that, you don't use bridges, which was always a massive no-no for us.
We just would never consider bridging.
Costs aside, it's just too risky.
And like I said, we're all about keeping users safe and low risk.
But on top of that as well, you know, obviously, we've spoken, Cody.
I think you guys have got some great plans for the future of Layer 1X.
Obviously, you guys will go into it in more detail with both ourselves and the community.
But, you know, the infrastructure and the ecosystem that's being built on top of your tech is pretty interesting.
And I definitely think that long term, there's something here that can be done.
So, yeah, very, very excited and very interested to see where it goes.
Yes, yes.
There's some great minds behind the Layer 1X community.
And definitely, we love partnering with people like you to amplify that.
So, definitely a great name for what we're trying to do, right?
So, you know, kind of moving along with that,
I loved what you said about the whole user experience, improving it and seeing what we can do to better that experience for people in crypto.
I mean, that's one of the main reasons why I made the jump in, you know, basically 2020 full time into crypto was to help better the user experience of crypto.
So, you know, make it better for everybody, make it more seamless.
So, you know, we often, especially lately, have heard a lot of projects talking about, you know, having a more user centric design.
How does Amplify translate that into reality currently?
How are you involving your community in shaping your platform's evolution?
And do you guys currently have any kind of feedback loops in place to capture that?
How does that work within your own project and community?
Yeah, great.
So, as we said earlier on, one of the main focuses of Amplify, which we believe we're doing better than any other sort of DeFi-based protocol,
is trying to bridge the gap between centralized users or centralized exchange users and decentralized users or DeFi users.
Globally, over half a billion people have bought cryptocurrencies through centralized exchanges, yet less than 10 million people have actually used or currently use DeFi.
Web3 as a whole as well, but particularly DeFi.
These are people, obviously, who use like MetaMask or, you know, staking, unstaking, farming, etc.
And so why is that?
Well, ultimately, it's the complexity, as we discussed earlier on, right?
3,500 yield generating protocols, multiple networks.
And so how do you bridge that gap?
Well, you do it by giving people a centralized exchange experience, but earning yield in a decentralized finance ecosystem,
but also including the ease of use and making it as easy as possible.
So we have embedded wallet technology.
People can connect their MetaMask if they want to.
We've embedded wallet technology with email and password signing or social signing as well.
So it's very much like a normal user experience if they want, like Coinbase or Binance or Celsius or BlockFi, which we were talking about previously.
When the user comes in, they will have the option to, their account will be embedded, as I say,
so they have to manage their private keys, and they will basically have the option to deposit their assets into their wallet.
And we will support a number of chains.
You know, at the moment, we're on Polygon.
We're currently integrating Arbitrum, Optimism, and Base.
And we're looking at basically within those chains, people can deposit any of USDT, USDC, and DAI.
We're doing stable coins primarily initially, and then we'll expand from there.
But we will also have the ability for users to deposit their stables across multiple chains, even if we don't necessarily generate yield on those chains.
And then we'll also have the ability for users to perhaps, let's say, deposit, I don't know, let's say, Matic directly, and it will auto-convert into stables as well.
So just a number of things that we're doing for the accessibility piece.
Ultimately, when a user comes into the platform, when they see the strategy, they'll see one strategy.
So if you go to a normal DeFi protocol, what you'll see is USDT pool on Polygon, USDC pool on Polygon, USDC pool on Arbitrum, USDT pool on Base.
And you'll have rows and rows and rows of different strategies.
And you'll have to choose one and deposit your assets.
And then if you want to switch pools, you have to withdraw and redeposit.
With us, we've got one single strategy.
That strategy includes all the chains that we support, all the protocols we support, and all the liquidity pools within those protocols.
So you could have 100 liquidity pools that our AI model has access to, and it's all in one single strategy.
So the user comes on, deposits their assets in that one strategy.
You'll be able to see the current APY, the historical APY, and whatever else.
And then the AI model will work within the confines of what's available to generate the best yields for our users whilst keeping their funds as safe as possible.
So you have a very, very simple, easy-to-use, accessible experience for our users.
As far as feedback loops go, so at the moment, we are still in closed beta.
We've gotten some feedback on that, of course.
But our open beta will hopefully go live next week, if not the week after.
And that's when it's open to the public.
And we're working with some great people here who are currently in this chat as well.
We've got community strategists who have worked as the head of community for ZLE.
They also have their own sort of consultancy firms.
Great community managers who have worked tirelessly with many different projects, building these really impressive funnels, feedback loops, community engagement, strategies, and all the rest of it.
So we've got a great team to really capture everything that we're doing and basically maximize our output.
I love it.
Sounds great.
Yeah.
So one last call.
If you have any questions for Jeff and Amplify, please throw those down into the comments below, and I will get those up here in just a few minutes.
I have just a few questions, and then we'll kind of open it up to the listeners, and you guys can ask questions as well.
You can also try to raise your hand as well, and I will try to get as many of you guys up as possible.
To talk with Jeff.
So kind of moving on to what we were talking about, you know, it sounds like Amplify has really kind of started carving out a unique niche for itself.
And Jeff and Jeff and I have, we've had some conversations, and we have been in this space long enough that we know that there are, that basically the crypto space is definitely rife with a lot of different copycat type of projects that pop up here and there.
You know, what is it, Jeff, that you and Amplify are kind of solidifying for yourself that will set you apart from those copycats that start popping up in the crowd, start creating a little bit of noise?
What are those unique innovations that you guys are bringing to the table, both from a technological or maybe even from a kind of terms of the community type of thing that you're searching for?
Are you targeting a unique persona of a user?
Are you looking to, you know, what's your key focus?
What's going to set you guys apart in the future?
Performance over time.
I think, you know, both of us being in the space for so long, I think, well, not that I think, I know that most projects that come in and tend to copycat or whatever really aren't in it for anything other than making a profit.
And you see this time and time again, right?
You'll see during a bull run, projects will raise millions, tens of millions sometimes, and then they just disappear.
And they have a token, token does okay, but ultimately they just, they never come back.
And the whole point of that is, is it's short-term gain, right?
And that's all it is.
And so we're not going to play this game of offering 50 or 100% APY to suck in people to liquidity only to burn them later on.
So what we're going to do and what we aim to do is, like I said, my goal in my mind, and again, we don't know how achievable this is over long term, but my goal is to have a minimum 10% APY auto compounded every 24 hours consistently day after day, week after week, year after year.
And the idea is, is that in five years time or 10 years time, when you look at the historical data of Amplify, you can see it's highly secure.
You can see the performance.
It becomes extremely appealing to the traditional finance sector.
And we're talking about, you know, neobanks, fintech apps, but more importantly, traditional hedge funds, which have major problems when it comes to accessing liquidity and pension funds.
You know, pension funds currently globally have over $55 trillion worth of assets under management.
I'm not saying we're going to get a large slice of that.
What I'm saying is if you can go to a pension fund and you can go, hey, listen, for the last five years, we've consistently had on average 10% APY and it's auto compounded every 24 hours.
That is an extremely appealing prospect to a lot of investors.
So we're long-term based, right?
And we don't think that we'll get like a massive market share in the bull run because there's going to be people competing for that liquidity.
They're going to offer crazy things like, you know, 100% interest on your ETH, but you have to stake it with them or restake it with them.
Those are the ones that are going to get exploited and they're going to take everyone's ETH and you're going to be left with X ETH, which is valueless.
And we're going to play this game again and again until, you know, until people wise up or regulation sort of steps up a bit more.
But our main thing, my main thing is long-term growth and long-term, you know, long-term gains.
So that's the game that we're playing.
You know, we've obviously got some great people working on this.
We've got some really smart minds.
We are genuinely building AI.
People say to me all the time, like, are you using a chat GPT model?
Like, what are you doing?
I'm like, no, everything is built from scratch.
And when we finish our seed round, like, the infrastructure is going to cost, like, the basic infrastructure is going to cost close to a million dollars just to build out, to start training the really advanced models that we're looking to build out.
And so we're looking to do it properly, like, really genuinely want to build this for the long term.
And that's ultimately where we differentiate.
And also, it's worth knowing that our model, our infrastructure, will be open source.
So we will allow people to actually build on top of it or to also use it for their own abilities.
The only thing that will be private is our algorithm, obviously, because that's our secret sauce.
But the actual infrastructure that we build, we will make it open source and accessible to a much wider audience.
Because ultimately, even if Amplify wasn't to make it, the fact that we could create a better system for everyone that could benefit people, that's a good goal in and of itself.
So, yeah, I'm not concerned about the competition.
And I welcome genuine competition.
But, yeah, I'm confident where we're going.
Love it.
Love it.
That was a great answer.
And I definitely echo with what you're stating.
You know, I think that a lot of the people that get in for the quick pump and dump kind of thing definitely get wrecked.
Crypto is definitely a long term game.
That's where a lot of the stability and sustainability and scale comes from.
So you're definitely right on the nose there.
And I think that that's definitely a core value that I see in our synergy together is that we share that common core value is that we're here for the long term.
It's a long, long term play game.
So, yeah, kind of moving on to the last few questions here is, you know, you kind of talked about it with the the bear markets and, you know, things like that.
And how do you how do you kind of see, you know, as we kind of move into these different cycles over the next probably, what, 12 to 18 months?
You know, we look at roadmaps.
Roadmaps are often very aspirational.
Can you give us kind of a candid assessment of where Amplify is in terms of its roadmap or even drop some kind of milestones or even some alpha of where you guys are aiming to achieve in the next 6, 12, 18 months?
Yeah, sure thing.
So the way we operate or have decided to operate is each quarter we break down our development into months.
So as we enter Q4, we will have a roadmap for October, November, December.
And then we'll also have a roadmap for Q1 2025, Q2 2025, et cetera.
And then when we approach Q1, we'll break that down into months as well.
So we can always manage the roadmap month by month, sprint by sprint.
So we know exactly what we're doing each month.
As I said, next week or the week after, we'll be going into open beta.
Open beta then means it's obviously accessible to everyone here.
So we would love for everyone here to follow us at least on Twitter so you can keep or X, should I say, so you can keep up to date with what's going on.
We'd love everyone here to test it out, provide feedback, get involved and whatnot.
So what we're looking at, obviously, we'll be, we're live on Polygon, on Aave.
Next is the integration of Optimism, Arbitrum and Base.
Then what we'll be doing is we'll be building out our sort of gamification and leaderboards.
So we'll be doing a referral program, which might be very interesting for people here or KOLs as well, which is that if I was to refer you, Cody, to Amplify and you were to deposit assets in the liquidity pool,
I would earn a small percentage of your yield, which is taken out of Amplify's fees indefinitely for as long as you are deposited in that pool.
And so we'll have a referral program, we'll have a referral leaderboard, we'll have a TVL leaderboard for competitions where we'll have rewards in terms of tokens, but also other prizes pre-TGE.
We'll also be creating a sort of Telegram mini app, which will be gamified for the airdrop.
A huge amount of things we're doing for the overall like growth pre-TGE, and we're very confident we'll absolutely smash that.
And then that's September, then October, we'll be going multi-protocol.
So we'll be going into, beyond Aave, we'll be going into other protocols like Compound, Balancer and some of the other major protocols.
And then we enter into sort of later Q4, which is our first RWA integrations.
So we're in talks with the likes of Centrifuge, Lender, a few other players in the game.
And so that would be probably the back of this year.
TGE, we're aiming for November.
And at the very least, December.
That's a hard deadline in my mind.
So we're pushing towards that.
Other than that, we're probably, probably have some other things I'm missing, but I think that gives a good overview overall.
But I think what we're looking at then, you know, we spoke about the onboarding of, or bridging the gap between centralized exchange users and decentralized exchange users.
But we also are looking to onboard crypto native institutions.
So crypto hedge funds, Dow treasuries, we'll build an API for that.
And then we look to our earn on fiat model.
And this is ultimately where you will have an app that is similar to like Monzo or Revolut, where people will come in and they will be able to deposit their dollars or other fiat currencies that will auto-convert into crypto and start earning through DeFi.
And we will offer that via API to some institutions like neobanks, fintech apps, whatever it might be.
But we also might have a commercial retail facing product ourselves that's undecided.
But ultimately, that bridges the gap or that brings DeFi to the masses even more.
That's how ultimately we see it.
And so we're already in the process of looking at licensing and regulation and whatever else that needs to be achieved to achieve that.
Amazing.
Yeah, that's definitely a good roadmap there.
So, yeah, I'd love to dive in more to that.
But I want to give time to our community to ask a couple of questions.
We've got speaking with us is Hayter.
He's one of our community mods.
So, Hayter, are you there?
Maybe, Hayter, if you drop out and drop back in, we might be able to get you back up on stage.
So while he's trying to figure that out, I will go on to another question here from the community.
So with that being said, from Sleazy Slimy, are there any audits to read?
So we are currently in the process of doing audits.
We will have audits before we release the public beta, of course, because it has to be of the utmost security.
So you will be able to read audits then.
We also have a full plan of action around audits.
Obviously, security is of the utmost importance to us.
One exploit and it's game over.
So we are working with current partners here in the UK that actually specialize in security across not just Web3,
but actually they're one of the biggest providers of audits and security for clearing houses in traditional finance.
So, you know, companies have dealt with hundreds of billions or trillions of dollars of transactions.
They will be an ongoing partner of ours, and then we will continue to work with other auditing firms.
So this will be like your hack-ins, your audit ones, your sub-sevens.
Like we'll bring them in as and when we do big updates, but we will have a long-term security partner for the smart contract side of things.
And then as the AI develops, we'll also have AI audits as well, but that will be a little bit further down the line.
Now, that's great.
Next question is, there's actually two different ones from David.
So the first one is, what are the key features, if any, do L1X need to deliver for Amplify to use it?
So the only thing that we really need from L1X is liquidity.
So just to ensure that if we want to swap a million dollars worth of Polygon USDT for a million dollars worth of Arbitrum USDT,
that that is able to happen.
Other than that, we just need to make sure that any of the DEXs that are being used are able to do so without too high of a slippage.
But I spoke to Cody, a lot of these are already in progress or already solved.
So, you know, that would be essentially, we just need to be able to allow the AI to fluidly move assets across the board.
And the rest should be okay.
Obviously, security is of importance, but we know the L1X guys have been doing, you know, a lot of work around that,
building out a very sort of strong infrastructure in general.
But yeah, they'd be the two main points.
Awesome.
Yeah, and David's next question is, is Amplify going live with L1X as the L1 blockchain,
or is it just one of many that may be used?
So we will use many blockchains in general, obviously.
We will use Arbitrum, Optimism, like different layer twos.
But we will use layer 1X as the sort of interoperability side of things.
Again, we're currently in discussions as to, you know, which chains in particular are of use right now.
In addition to that, what I really love about layer 1X, which other providers don't offer, is they also have non-EVM accessibility.
So accessibility to Solana, which is also a major ecosystem, that's such a massive benefit from an interoperability play that, yeah, we're very excited about what layer 1X is building over on that side as well.
Because if we get access to, you know, Solana, then that's obviously the Rust ecosystem, which also includes SUI and SEI and all the rest of them.
So, again, you can expand even further to generate even better yields again.
So, yeah.
Yeah.
So to answer your question, we're multi-chain by default because of how we generate yields.
But we're looking to try and consolidate the interoperability partner as much as possible based on the previous question,
which is ability to facilitate the cross-chain swaps and also the security element.
All right.
I'm just double checking to make sure that there's no other questions.
So, Hayter, are you, have you got your mic working yet that you can ask your question if you have one?
Last chance.
Yeah.
Yes, sir.
I can hear you.
Go for it.
What question do you have for Jeff?
Sir, I just want to ask that, like, what is the main difference between, like, the rest of the existing P5 protocols that are already in the crypto industry and the Amplify, sir?
Yeah.
Great question.
So, current DeFi yield aggregators, asset managers, whatever you want to call them, there's two things.
Number one, they focus on a Web3 audience.
So, they still have the user connects their MetaMask.
The user needs to manually optimize their assets.
You know, they might have, for example, a USDT pool that is optimized across a couple of chains, but it doesn't include other stables, for example.
So, again, you don't have this single strategy approach, users have to manually manage their positions across different assets, and also it's very Web3 friendly, but very non, let's say, Web 2.5 friendly.
So, number one, the ease of use and accessibility that we offer is different to what other people offer, which is thus bringing DeFi to a bigger audience.
And number two, and number two, the ease of use of our strategies.
As we say, we're building one single strategy that includes all chains, all protocols, and all pools, and our AI model optimizes across that strategy, basically.
So, users don't have to come in and swap strategy A to strategy B, or swap it to another strategy if the APY is higher on that strategy.
It's just, it's a very easy user experience, which ultimately is what centralized exchanges offer that DeFi doesn't.
And so, those would be the two main points.
And on top of that, we pay gas for our users.
So, again, that's something that we take on board that other protocols don't necessarily do.
That's really cool.
Thank you so much, sir.
Yeah, that's definitely, you know, the one thing I like is how you guys pay for the gas and things.
And for many of our OGs that are part of the L1X community, they know that the L1X token actually has the utility to be a universal gas fee token on any of the connected chains, which is another great feature as well that I think that Amplify will basically be able to tap into as well.
That way they don't have to have all those other chains, gas fees on hand, they can just retain L1X and use that as well.
So, that'll definitely help keep their costs down.
So, I've got one last question here, and it's kind of a personal question, but based upon your experience, you've shared a lot of good experience of like why and the why behind Amplify, what problems you're trying to solve.
If Amplify was around a few years ago, what would have been the biggest lifesaver for you personally that would have saved your bacon or at least helped you through the bear market?
What opportunity could have Amplify helped you out with and maybe try to make it a different outcome than you had before?
What was a missed opportunity?
Interesting.
So, if you're saying, so if Amplify was around a few years ago, how could it have saved my bacon personally?
Yeah, like what opportunity did you miss out on or wish you could have had Amplify in a certain situation?
What would have that have been?
I would have said the UST collapse for sure would have shown how beneficial something like Amplify could be.
I think a few years ago, the tech probably wasn't there.
Definitely a logic-based approach could have worked on a smaller scale.
But I think what Amplify really does well and will do well is the diversification of assets.
So, first of all, if the UST pool was having liquidity run like it did on Anchor, Amplify would be able to front run that and keep all users' funds safe.
And that would be a great use case for, hey, this is why AI or the logic-based approach that we had built is helpful to our users.
But on top of that, I think what people need to understand as well is the diversification of assets that Amplify offers.
So, if we have $100,000, let's say that's spread into 10 batches of $10,000.
And that's spread across Aave, Compound, Balancer, Beefy, whatever else you want to say, 10 different protocols on three different or four different chains.
If one protocol goes down, if one protocol is exploited and all the funds are sucked from that pool, the assets are still spread across nine different pools on different protocols.
And that alone ensures that there's no single point of failure for Amplify users.
So, if users have all their money in, let's say, Aave in one pool and that gets exploited, it's game over.
If you have all of your assets in Celsius and they go down, it's game over.
No matter what, even if one pool or whatever is exploited, we still have a diversification of assets across different pools.
So, therefore, it's a much safer option from a DeFi perspective than what's currently out there.
And so, I would say that that would have become very apparent in the last bear market for sure and will become apparent as I'm sure this bear market will unveil more issues, no doubt.
Yeah, 100%.
Totally agree.
And I can't wait to see how we'll definitely perform in the bear market.
And I think that it's a great opportunity for us to basically maximize profitability during that time period as well.
So, yeah, definitely looking forward to it.
Jeff, I want to thank you for taking time out of your busy schedule.
I know you're a very busy guy.
But if you wouldn't mind just kind of leaving us with kind of an outro of how people can get a hold of you, basically, you know, where they can find, like, your white paper, your website, you know, things like that.
And, yeah, just so that they can kind of keep in touch.
So, I think you mentioned within two weeks, you're going to be opening, having an open beta and how they might be able to get involved with that as well.
Absolutely.
And thanks so much, Cody.
Pleasure is always.
Love speaking with you and love speaking, you know, with your team in general.
It's always a pleasure.
And thanks for the platform.
So, yeah, from our point of view, if you like what we hear, obviously go on to our Twitter or X.
God, I have to stop saying that.
But apparently, sorry, apparently 95% of people still call it Twitter.
Elon Musk did a poll.
I don't know if you saw that where it was like 98%, like, absolutely crushed his dreams.
But anyway, if you go on to our X account, you'll see that there's a hub.xyz link.
On that link, there's access to everything, our website, our socials, our wait list, whatever it is.
I would highly encourage people to join our Discord if you can.
And that's active currently.
Our Telegram's currently locked, but it will be going live probably next week or the week after.
And just get involved.
And we'll keep you up to date when everything's going live.
You know, we're doing a full rebrand, which actually goes live today.
So this logo you see now will have changed.
There's already been some changes done.
I think our social media manager is waiting until I finish this call before changing the logo so she doesn't destroy anything or afraid that she might.
And so, yeah, we're doing a full rebrand, much cleaner, much cooler.
And that will be reflected in the open beta.
And then we're just going to go from there to there, strength to strength.
Socialify campaigns coming up next week as well to really push the community and the engagement sides of things.
And like I said, aiming for a launch in November.
So it's just going to go get bigger and better from there.
So we'd love to see all of you there.
And, yeah, anyone who wants to contact me directly, ping me on Discord.
I'm always around.
I would love to have a chat with any person here, answer any questions you might have.
Well, thanks again.
We appreciate it.
And thanks to all of you for tuning in.
Great questions from our community.
And we are definitely looking forward to this partnership with Amplify and with Jeff and his team.
Great group of people.
Well, like Jeff mentioned, I've had numerous conversations with Jeff, both in AMAs and off AMAs, in private conversations and a great team.
So definitely looking forward to it.
Until next time, everybody, keep working to unite all of crypto.
And we will catch you on the next episode of Xtalks.
So have a great weekend.
And we'll talk to you guys next week.
Thanks, guys.
Have a good one.
Have a good one.
Host
LayerOneX
from
Layer One X
