Defuse - Chain Abstraction Day EthCC

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1. 0:08

   hello everybody so that's these are the people who are the most advanced who have lots of power in their veins thanks for staying here uh today I'm not going to talk about Aurora I'm going to talk about diffuse this is a new project this is a new thing this is a completely separate stuff uh that is also built by us and that's and um I congratulate you with being the first ones who was going

2. 0:33

   to publicly hear about this project great so uh let's start with the problem and problem is super simple uh l2s have changed the way how blockchains are operating uh because of l2s and other app Chain Solutions uh now companies protocols ecosystems are able to launch their chains really really fast in a matter of hours what it what it means it means that uh they are able to literally you can deploy lots of chains and there are

3. 1:13

   thousands of chains that exist there and if we are going to take a look at centralized exchanges as being the major on rampant solution for uh for crypto uh just reminding everybody that the liquidity on centralized exchanges is 10 times bigger than in in all of the defi right so so centralized exchanges are the key point right so and they are not able to support all of these thousands of chains they are centralized and

4. 1:39

   because of this they they are regulated they must make sure that they are compliant all of these things right um there are tokens in the top 10 coin market cap that are not listed on binance did you know this it's all because of the compliance right because of the all of these complexities they are slow and also they are centralized so in case you have a you know some kind of guy named Sam who

5. 2:04

   is running a centralized exchange then perhaps sometimes he can misuse the user deposited funds and it is a problem so there is a problem in the centralizations from the other standpoint everybody who are here we're building the decentralized future we're building the web3 and we value the web three values right so decentralized means good permissionless trustless you're able to operate this things wherever you want to operate this um so there is no decentralization issues

6. 2:35

   however with decentralized exchanges the problem is that they limited to a single chain there are solutions that are trying to do the cross-chain communication uh and stuff like that but uh mainly it is extremely hard to unify the liquidity and you know make sure that everything is smooth in the end there is somewhere something that where you're trusting your funds with uh however the the concept of the chain abstraction in general it gives you a way to resolve all of these issues

7. 3:06

   and connect the best of these two worlds together uh and create a solution that is going to be as that is going to be as decentralized as the best decentralized exchanges are and it's going to provide you the best possible user experience as centralized exchanges are provided and this is where diffuse comes in so this is a scalable multi-chain defi infrastructure that facilitates the creation and trading of financial

8. 3:42

   instruments with minimized centralization risks and unification of the liquidity across crypto ecosystems and I'm not talking only about onchain liquidity but I'm talking about the centralized exchanges liquidity Okay so every single world word in this definition means something scalable means that there is no limitation to the amount of users that this platform is able to serve if it is going to be 1 million or 10 million or 100 million or a billion users that are going to come

9. 4:16

   to diffuse it is going to serve all of them without problems with the performance the reasons why it works like that is because it works on near it is multi-chain because it works with chain abstraction right right and stuff like that so um if we're going into the Fe in into the features here another thing to understand about diffuse is that it has the intent based architecture and I believe there were multiple projects that were already talking about this

10. 4:49

    stuff this is the only architecture that can be scalable yeah that can scale and the other standpoint is that it is an open architecture so anyone is able to come to diffuse create its own intent type a new type of trading and new version of auction or a new Financial instrument uh that is for example an index token that in between that that combines all of the tokens from some

11. 5:19

    tokens from ethereum polygon arbitrum base whatever um and uh that's that's an important thing here so that the plat that the protocol is not uh is not it is permissionless right so anyone is able to create these instruments and also use this instruments we see diffuse as a three-party Marketplace in which uh following parts are uh first one is the distribution platforms uh whoever is having the user attention usually these

12. 5:52

    are the wallets uh or some platforms that are kind of aggregating experiences right we aggregating applications these people are taking care of making sure that users are seeing these financial instruments um another part is market makers or the active Market participants that are filling in the orders sometimes refer to solvers or fillers or whatever takers and obviously there are ecosystem and Founders and these parties are

13. 6:22

    bringing new instruments new financial instruments into the uh into the into the protocol uh they all have the connection in between themselves obviously Founders would like to have distribution so they given a little bit of incentives to the distribution Partners they given liquidity potentially to the market makers so that there is an active Market but uh also Founders can just become market makers for their own tokens in case they just taking the software which is open sourced everything by the way

14. 6:53

    that we are talking about is open source so you can just take the software just run the script and you will become your own Market maker that's not a big problem um and uh the interesting thing about diffuse that this is a soft launch this is an super Alpha version uh but it is already available at diffusor you're able to use it right here right now with the near tokens because the chain abstra

15. 7:20

    on the near Main net already um the chain abstraction full chain signatures is going to be deployed a little bit later so once it is deployed you will be able to access other chains too now the very important thing about diffuse to understand is that the way how the nearest chain obstruction is working um it is not it does not require integration of new chains manually chain abstraction of near supports ecdsa and

16. 7:50

    EDSA which means that any chain that is launched with this cryptography for the keys is supported automatically there is no need for integration first block of a new L2 that is that is just listed that is just running on your uh laptop uh within the first block you are able to start trading of the tokens of this L2 directly on theuse by running the market maker script that is open source you can just just you can just appla to the market maker script r a

17. 8:30

    little bit of stable coins on any other chains a little bit of your tokens on your chain and then it just works you need to figure out you still need to figure out the distribution right uh but it is going to work so um uh I actually can show you how how the thing is is working and hopefully it is going to go good so you obviously can go to the diffuse website and say look take a look at everything here it is once again

18. 9:02

    Alpha let me enlarge this for you a little bit and uh for example if I would like to trade 100 wrap near to near okay to usdt this is the price that you are getting from diffuse right here right now and the other the other big exchange on near is ref Finance so the price that you are getting on ref Finance is $464 for 100 near and here is 466 in the mean uh diffusers given you

19. 9:38

    approximately 1% better prices than ref finance and the reason why it is happening is because solvers are using binance in order to make sure that your intents are uh are filled so that's the thing and that's that's the great thing about it binance has lots of liquidity and uh uh because of the solvers being able to tap into this liquidity they are actually able to give to you better pricing and this is always going to be

20. 10:12

    correct and more as more and more solvers are going to be available the more and more complicated strategies they are going to implement and they are all competing for this intense and you're going to get even better and better and better prices uh with this thing it takes a little bit of time to pick up the information about the transaction however most probably the transaction is

21. 10:35

    already um is already done by the way the cool stuff about this is that once you send a transaction you and for example nobody's filling the order you're also able to cancel it so that's a a proper thing to do we can probably return you know a little bit so I'm not not sitting here and waiting for for the stuff but anyway the important thing that diffuse is opening up the space not only for the fungible token trading which was

22. 11:08

    demonstrated right now diffuse is much more than just the fungible token trade in um it allows to create any sorts of financial instruments right so first of all remittance is a financial instrument an ability to send your assets to another person on any blockchain is a great instrument and uh you able to transfer any assets on any blockchain with near protocol transaction fees which are approximately 1 cent with

23. 11:39

    diffuse you would be able to transfer your own Bitcoin to your body for just one cent always or eth or usdt on ethereum or anything or similar things obviously trading since the trading is happening in between the accounts and it is accounts that that are traded on diffuse you're able to trade anything that has the value that is located in these accounts so you can trade nfts and you are also able to trade

24. 12:11

    sbts which which completely defies the idea of sbts uh and it Al just means that sbts they they now with diffuse they don't make sense at all um you can trade also non-transferable tokens like V CRV or you also able to lend these tokens in order for somebody else to participate in the governance this is kind of like an advanced version of curve bribing mechanism right uh you can imagine the airdrop the accounts that have been participating in air drops they don't have monetary value but they have very

25. 12:46

    high speculative value so you can now trade these air drop like in accounts that expect to have the airdrop in the future you can do lending you can do multi-chain Financial products you can do also with these accounts access to ordinary blockchain applications that are available on these chains right so you can go and deposit your money into Lio or provide liquidity to Jupiter or

26. 13:12

    something like that and the cool thing of of like how this thing is also going to be very useful for Aurora is that diffus is going to get integrated with Aurora again from the first block so anyone who is launching Aurora virtual chain um is is going to get the whole defined infrastructure of the whole world directly from the first block we are an open protocol completely completely open so we welcome everybody to contribute to it and uh work together with us so Join the Revolution today get

27. 13:46

    to diffusor try out send your feedback um and also if you're in search for uh a position we are hiring so you can find the open positions there thanks everybody