Hey Red, how you doing? Can you hear me? Yeah, I can, very well done, too. Hope my tree is very well done, too.
Hello guys so welcome to tonight's episode of the channel series. So tonight we are being shit food accolade. Tonight we are going to be discussing about privacy and defy. One of the most interesting topic in the web space. So guys let's keep on retweeting so that's
Hope I'm gonna get the protocol page to retweet this out that we're live again. Okay, sounds great.
Thank you guys all for being on time. Appreciate that. Give it a few more minutes as people come in and then we'll get this thing kicked off.
Guys, please let's keep on your tweets so that's the day nice. Thank you so much for coming on time.
Welcome guys to tonight's edition of series. So guys tonight you have a very special guest here with a
we are red IBA so I believe he's going to be telling us a little bit about his background now I will go to the space guys that's keep on tweeting so does conjoin us thank you so much
Yes, thank you guys for being on time for this. I'm incredibly excited to talk about ShadeSwap and private DeFi. I know I've been on Secret Africa's Twitter spaces before to talk about a few other applications, but I think this might be the most excited I've been to be on
to be on this Twitter space so very excited and very appreciative that you guys had me on here to talk about this. Yeah, we are super glad to have you here tonight. No, we love to have you here one more time. I'll probably much more frequently as well. Yeah, thanks for joining us tonight.
Okay guys, we're getting started in the next one minutes. Please guys, let's keep on getting tweets in Soda's congenos. Thank you very much.
Welcome once again guys to tonight's Education series so tonight guys will be discussing about private privacy in defy I believe most of us they must have heard about defy defy defy but there's some see guys are not familiar
which is privacy in defy. I'm supposed to say that people are about privacy in defyable mostly they tell me we don't need privacy in defy. Why should they be privacy? The blockchain was built to be transparent. Why should we need privacy on it? I'll be like no, the blockchain was built to be, you know, to provide
So, sort of anonymity, whereby people don't get to know your own dream, identity, but at the end of the day, as soon as a wallet address has been docked, you have been docked for 100%. So tonight, we dive into the defier ecosystem. Why speaking about privacy in defier? So tonight, we have Ritozi, great IPF.
So where do I could you please introduce yourself on Taylor's little bit of my background? Sure. I want to start this off by just thanking Secret Africa for having me on this Twitter space. Like I said earlier, I've been on this Secret Africa's Twitter space before and I haven't been more
excited than to be here now to talk about ShadeSwap. But a little bit about myself. My name is RedEyeBair. I'm a part of the Shade Protocol team and I primarily focused on marketing, although I also help out with some general business operational responsibilities. My professional background is in operational and product management.
management and manufacturing industries. But previously before I worked with Shade Protocol, I've also worked with a few other Web 3 entities within the Secret Network itself. So I've been in the Secret Network for about a year and a half and incredibly happy to call this my home.
Sounds awesome. Spatglas are having a long time tonight to discuss about privacy in the fight. You've been one of the most, you know, a prominent OG in the ecosystem. We truly appreciate your effort to us building the ecosystem altogether. Change them as being one of the, you know, most anticipated. They are on the
I believe it's getting much more arranged and people are becoming much more sensitive about it. But before we dive into that, kindly tell us what is defy for those who are kind of new to this space and we'll you know what to learn from the beginning. So can we close what is defy before moving to the tonight's topic. Thank you.
Absolutely. I think before I can define DeFi, I think it's important to define what centralized finances or CFI. What we all imagine as legacy financial systems where you've got central banks, government banks, centralized lender
and money transmitters, all of those -- where all those transactions are overseen and where each entity in that sort of process of moving finances around and building markets, all of those receive payments for their services. And these are all centrally
controlled by businesses. So in simple terms, decentralized finance or DeFi is financial technology that leverages blockchain in order to facilitate and empower peer-to-peer financial opportunities and help increase general access to financial services and markets.
So, DeFi eliminates all the intermediaries that are existing in centralized finance by allowing individuals, merchants, businesses to directly connect with each other and conduct financial transactions through peer-to-peer networks.
Yeah, that was one of the best explanation of so-finding space. Thanks so much, Arred, for that absolute simple understanding definition for DeFi. So, talking about DeFi, then what is privacy in DeFi? Because that's the main topic for tonight's space.
Yeah, so if we think about the description of DeFi that I just mentioned, I think we can all agree regardless of if DeFi is private or not, that DeFi is a positive step towards empowering people around the globe for greater financial access, whether it has privacy or not.
We would be wrong if we didn't admit that there still exists some flaws in the majority of DeFi architecture. And one of those main flaws is the fact that the majority of blockchains and applications and DeFi services are 100% public by default.
So to kind of give an explanation of what, of how you can kind of imagine this, think about DeFi being powered by smart contracts. DeFi was really empowered by the creation of smart contracts, which if anyone is a true
the application state like it's memory. So in the majority of DFI, if we use that kind of analogy, in the majority of DFI applications, anybody can see the inputs you're putting in, anybody can see the outputs of the computations, and anybody can see any personal data that is associated
with those transactions. I think to another thing that could potentially highlight the severity of this public information is a pretty simple analogy and shade uses this to describe why private defi is so
Imagine you go to a local store, a grocery store, a coffee store, whatever, and you swipe your credit card to purchase food. During the transaction, the cashier doesn't know your bank balance. They don't have the ability to see every transaction you've made. They don't have the ability to see a lot of your personal data.
So, you know, if we kind of contrast this to public blockchains, if you're interacting with a merchant using a public blockchain like Ethereum, right? Whenever you buy, whenever you interact with that merchant, anyone and everyone has the ability to see a
how much you bought, how much you spent your full history of transactions, what your balances are, any loans you may have out, your full trading history. And I hope it's not just me that realizes that this is problematic. And I think that
Yeah, and I'm happy to go into more the difference between and why privacy is so important here, but that is the main difference between public and private defy private defies where the users control the access to their data. So in public public defy you have
no control over whether or not your data is public or not. It's public by default. But with private DeFi, all of your transactions and all your interactions with DeFi applications are private by default. And users have the ability to share that. Thanks so much, Eric.
If we can end this video, I personally don't want my translation history or whatever it is, my inputs, my outputs already defy should be docksed by everyone.
some sort of control what I'm doing. When it comes to the public, there is no control rights. You have nothing to, I'm not into probably make, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no,#
share this beauty, a private and secure defy for her users not forgetting your region or probably your your probably behind new bit of space it's all for everyone and you use our interfaces really awesome. Let me know what you're going to do that. Yes, until you know we got to that stage. You know
I've had a lot of about people talking about privacy is good and all anonymity is bad. So what's the difference between privacy and anonymity? Because I've seen some people confuse privacy for anonymity. Something anonymity is the same thing as privacy. Can it tell us what's the difference?
Yeah, absolutely. So to give a very easy definition, anonymity refers to not having a name or any identifying information associated with an individual. So you can kind of think about that as like, you know, if you create an account
on Twitter or Telegram or Discord, you maintain some anonymity as long as you're not providing, you know, putting your exact name like your birth name or anything like that out there. So anonymity is just like not having a name or anything identified, being able to be associated with you. And this is kind of how public
blockchains work or they're pseudonymous. They're not necessarily anonymous, they're pseudonymous. But in contrast, privacy specifically refers to being able to control who has access to your personal information and how that information is used. So there's a really
really key difference there. Privacy primarily focuses on the ability for one to control access to their own information. Anonymity is better described as like just not providing that information.
So we can kind of think about this by extension, digital privacy means that people are the sole owners of their digital property such as crypto assets and they inherently possess immutable authority over that property. So I'm pulling this definition straight from the shade white paper.
phenomenal job of outlining what digital sovereignty, digital property, or sorry, digital privacy, all of these things mean and what it means to shade protocol. But as owners of your digital privacy, you have full control over why, when, where, and how
your digital assets are used. So ultimately for the majority of the world privacy is really what people want. They want the ability to control access to their information. It's not that they're necessarily trying to hide everything from everyone. It's more they just want to control who gets to see it, why they get to see it, and when they get to see it.
To be honest, I just argue with what you just said. I've spoken to some guys who are kind of old in the game. We have been in the crypto space for about three to four years. I spoke to them about privacy and what they tell me is there is no such thing as privacy. Then I asked
them could you please provide me your wallet address they'll be like for what? Why should I give you that? I said since you said there's no need for privacy then why are you afraid of providing me with your wallet address? Why is the skin probably for other wallet address? I could know what's the right reason for me doing. They are like no it's my choice I
They try to justify its vitality in the world privacy. At the end of the day, the main purpose of them not giving me their wallet address. Their main purpose of wallet address is because they are afraid of wobbling, you know, sharing all their information with me. Their data is that's reduction with me because they are
I'm not really sure. They need privacy of us because they feel if I should have the wallet address, I would know what the right is even doing on the blockchain. And they said they don't have privacy, but why would you restrict? Why would you restrict yourself from giving me a wallet if it really doesn't, if it really don't value the privacy? So talking about this privacy of the tin, most
Most people are very familiar with traditionalify and most of them they don't only believe in any of that in a safe from the defy because they don't know that we have private defy. So what are the issues of affecting the traditionalify and what are the shots coming of the traditionalify because most of all they know defy they don't really know that they
So could you please explain to those what are the issues affecting the traditional device? Yeah, absolutely. So before I go in depth answering this question, I just want to point out that depending on who you ask, you're going to get a different answer. It's a fairly subjective question.
from my point of view and not necessarily speaking for all DFI participants. So if we look at, you know, what are some issues in traditional DFI, we can probably look at some of the initial blockchains where DFI really started kicking off like Ethereum. One of the first issues that I think
individuals and participants in DeFi realize was there is a lack of composability. You guys might have heard this term before, but basically what I mean by this is composability is
like the ability for assets to move from chain to chain. So if you guys are, um, if you have participated in secret network defi or cosmos defi
You have a really good idea of what composability is because we have the ability to send assets from chain to chain using IVC, which is the interblock chain communications protocol. So this is a big issue for other blockchains that do not have something like
IBC, you cannot send Bitcoin to Ethereum. You cannot send native Ethereum to Abelantch or to Tron or to any of these other sovereign blockchains. That is a big issue.
the cosmos ecosystem has done a really good job at solving the brunt of the composability issue. Sort of related to that. One of the other big issues is when people originally started trying to fix this composability,
This is where we kind of saw bridging solutions into the mix. There are a lot of security and trust assumptions with a variety of bridges. I'm sure many of you have heard of news about bridge being hacked, people being able to siphon off funds. These are all
a result of that lack of composability and individuals taking advantage of the trust assumptions associated with some of these bridges. And then I would say one other small thing is just that DeFi is still relatively young, you know.
considering how long traditional financial systems have been around hundreds of years. DeFi is really only 12, 13 years old if we count just the inception of Bitcoin. I would personally count it as when smart contracts happened on Ethereum.
But either way, DeFi is still very immature. And so there's just a lot of maturing to still happen. But in my opinion, one of the biggest issues, and I know some people are probably not going to like hearing this, but I think one of the biggest issues right now is a lack of regulation for this space.
And I think that's very important because we all want to see at least us of us here. We want to see DeFi kind of explode with its adoption and its usage in our everyday life. And in order for that to happen, we have to have large businesses, large enterprises,
prices also buy into this sort of architecture. And a lot of these businesses are already regulated by the countries that they operate in. And so in order for them to feel comfortable with actually participating in DeFi, whether it be from like, you know, monetary policy, perspective, whether it be
from like regulations for licensing to be able to provide services to users, they just need more clarity. And so I know Europe and North America have been doing quite a lot looking to push regulation, not saying that the regulation that's
coming out is, you know, necessarily the best for DeFi, but it is a step forward. And I think a lot of proponents are going to be actively speaking out against anything that is harming the chances for DeFi adoption. Regardless, more regulation in this space is going to help DeFi in the long run.
Well, I kind of not support the motion of inputting regulation into defile because I believe the moment the government are aggliting defile, then they are taking powers out of people's hands and the input need back in the hands of the government because the main purpose of defile is for us to be able
control and have access and control ownership as well over our finances. As soon as the regulatory comes, I believe that's why it's down ownership, that control has been taking off our hands and it has been giving back to the government which it has been the main purpose of
That's a no that's a extremely good point. And that is my only hesitation with saying that we we kind of need regulation. I will say though that there are some. The architecture that support D5.
will be able to support an unregulated and regulated DeFi. So if
If regulation comes and users still want to, again, I don't want to promote this, but
We have the ability to continue using these services. If any of you are familiar with the tour network or any other sort of decentralized networks, it's very, very difficult to take these networks down.
The issues that I think you are referring to primarily come from centralized services. For an example, Metamask is the primary wallet for
for Ethereum and Metamask primarily uses the infrastructure for or by a group called Infura Systems and I want to say it's like 60% of
I must say it's like 60% of interactions are using in Fura's APIs or any of their other architecture. And so in Fura being a regulated business within the US, when the US passes regulation, like when tornado cash was sanctioned, Infura immediately started refusing access
to these application front-ends, they started flagging users who actually use this. That's certain, I mean that reality only really happens when you have a highly centralized system. And so it's hard to call that service decentralized, even if it is kind of a part of this whole
DeFi movement. We're still in and I'm not meaning to pick on Metamasker and decentralized providers. There are many projects and services that start out centralized and move to become
more decentralized. But I do agree that your concerns about adding regulation, especially for highly centralized services, is not good for end users. I would totally agree to that.
Thank you very much, Red. I am super love. He knows being biased. Try and see. Make sure you explain this to me. We get points very clear. Thank you so much for that. Now, not talking about the difference and then the adoption. We can say the adoption of the fires will increase from the recent years.
from the smart controls for me to know. So now, can we say a defy has been globally adopted and how fast has it been globally adopted considering that the grassroots strongly rely on traditional banking system to do what it is going to do can defy striving
long one. Despite the recent cases happening in the space, the lunar quads, lunar arc, some centralised exchange questions down. Do you think the difficulty can strive the long one and also can we really get to the grass with them, probably get them up to speed?
So, if we take a look at where we start, Bitcoin launched in 2009. I think Ethereum launched in
12 or 2013 I'm blanking on the date for that right now, but if we consider those the rough start dates for when D5 would have started I would say we've come an extremely long way since then just looking considering the fact that Bitcoin is still non-fungible
I would say that we've seen some incredible advancements in the efficiency, the scalability, security, and composability of DeFi assets and applications.
Yeah, just I almost think back to even looking at the different iterations of DeFi applications, looking at what Uniswap V1 versus Uniswap V3 looks like, going from the initial implementation of a constant product market maker deck switch.
If you guys aren't aware, that was basically the first automated market maker type that was created. Very simple algorithm. And seeing that go from
from the innovation from a constant product market maker, which is, I want to say the formula is x times y equals k, going to the constant function market maker, which is what a lot of stable coins use.
like stable swaps use, which is x plus y equals k, and then seeing concentrated liquidity pop up, which is what uniswap v3 is, which improves the efficiency and improve swap and capital efficiency.
for the curve. And so this is kind of where, you know, shade took that an extra step. And I'll get into why shade swap is so important and why it's innovation is so critical to define general. But, you know, looking at where
different DeFi applications, lending protocols are now. We're seeing liquid-staking derivatives start to explode not only in the Cosmos but in Ethereum. We're seeing advancements in the different types of consensus.
mechanisms for blockchains. So I would say while we may be somewhat frustrated to not see DeFi be more integrated into our current lifestyle, when we take a step back and look at
how long it's been relative to the timeline of traditional finance. We are making as a global community, we are making incredible progress. And interestingly enough, I was looking at some global adoption.
statistics earlier and crypto adoption is tracking very well in line with the initial rate of adoption of the internet, which in my opinion that's very promising and that's very exciting because you think about now
So the internet is one of the most powerful things that we as humans have on this earth to be able to connect and do things. And so to see crypto following that same sort of adoption rate as well is incredibly promising because
to me that eludes that crypto and defy are going to be just as prominent as the internet in the future. So we were all incredibly early to this as much as we might kick ourself for not buying Bitcoin or not buying ETH whenever it first launched. We're still incredibly early.
Thanks so much for this donation. Well, I believe as time passes by the more education I believe there's going to be much more adoption from the grasswood as long as we still have internet definitely it differs into the next big team in the space. It's already next it's already a big team already
of course but you know it's going to become much more bigger as the air goes by. So guys let's take two minutes break after the two minutes break we're going to dive into ShadSwap and Silk. So I believe you guys have learned a lot about privacy in defy, learned some of the shortcomings of the traditional defy.
So in the next two minutes we will be doing deep dive into shit protocol. Talking about their products, talking about how you can naturally make his off a private zify and I could interact with you there as well. There will be a red beer with a little smobber shit to a silk and also some of the use cases as well.
So step till in the next to meet we back on this space and then we get into Shedput to call. And by the way, Shedput to call as Launch Live, ShedTrap as Launch Live today, one away go, as soon as we end this space and make sure to check it out.
Hello guys, so welcome back to tonight's space. So tonight we are with us the red red from Shade Protocol. So tonight we will be discussing about privacy in defy.
Thanks to Mojtivet he has explained what is defy. He also explained what is privacy in defy. We also spoke about the issues of fencing traditional defy and also the shots coming. I will speak about the adoption of defy in his face right now.
about this because about shit swap so I believe that is ready to turn on my boss shade and also tell us about two so guys I believe you guys are ready to dive into the defy ecosystem now we interact with on defy
We see it works. It will give us an interest. I use it works on everything in to know about a particularized differentiation called sheet swap. So wait, I believe you are ready.
All right, sounds good. So just to introduce myself for anyone who is just now hopping in, my name is Redide Bear. I work with shade protocol, particularly with marketing and operations. Credibly happy to be here to talk about shade swap and silk. So just to
give a little bit of back history about ShadeSwap. ShadeSwap is a hybrid Dex. So it's actually a combination of three different types of AMM models. It is a stable swap. It is a derivative swap. And it also
a constant product market maker, AMM. So to break that down a little bit further, ShadeSwap is going to allow ultra efficient trades between stablecoins, ultra efficient trades between liquid stake derivatives and their underlying layer one
assets and then we're also going to be able to facilitate the trade of general what we consider volatile tokens. So to give a little backstory on ShadeSwap, the initial idea for ShadeSwap and the reason we wanted to build it was to provide a
critical component to the shade protocol ecosystem of private D apps, which comprises shade protocol. And that critical component is to be able to provide significant liquidity for silk and the assets that are accepted as collateral for silk within shade lend. And so
So to give a little bit of backstory on what silk is, if anyone isn't aware, silk is a privacy preserving reflexive stablecoin. It is using an over collateralized model. So to go into that a little bit further, it's privacy preserving.
Silk and Shade are all built on secret networks so we inherit the privacy preserving properties of its smart contracts. Silk is private by default. All of your interactions on Shade Swapper private by default. I'm going to go into some of the critical
the critical value propositions for silk in a little bit, but it's important to note that silk is reflexive by being pegged to a basket of globally traded currencies and commodities. And so we've got the ability
to peg the value of silk. I believe we have four currencies that are currently making up our currency basket and then we have gold and bitcoin that make up the commodity portion of silk. So, take a little bit more back into shadeswap.
You know, the real value proposition with shade swap is that we're effectively allowing the concentration of liquidity provided for select pairs and those select pairs being stable coin pairs.
and then liquid-staking derivative and their underlying layer one assets by being able to provide liquidity and concentrate liquidity for those pairs in the most ideal trading ranges.
You guys might have heard me mention Uniswap V3, who are the first people to come out with, concentrated liquidity. That's incredibly useful for stablecoins that generally, you know, for US dollar stablecoins that are paired together if they're both
with peg to $1, you're not expecting any large scale or even really small scale changes in the value of these stable coins. And so a general concentrated liquidity works incredibly well for stable coins.
There's something incredibly special about Shade Swaps, new AMM curve that facilitates our derivative core to the swap, and that's our ability to asymmetrically concentrate liquidity.
So what that means is that we can utilize this trading curve for staking derivatives and since staking derivatives and their underlying layer one token generally trade very close to each other.
We can further concentrate that liquidity even more. So you imagine most liquid-staking derivatives do not trade above their redemption rate.
So, for example, shade protocol created a liquid-staking derivative for a secret called stakesecretstkd-secret. If you were to go and try and buy that