[Applause]
all right my name is Hayden adams and
i'm the founder at units law building on
your phone so what does this talk about
it was going to be talking about gonna
swap but now it's a weather advisory a
hurricane in the top of the site in
north pacific any signor tested a
typhoon is a tropical cyclone that takes
place in the Northwest Pacific super
typhoon to give this is a category 5
hurricane is on its way
all right what does this talked about
this talked about you know spot it's
about what can be built on it today it's
about how we can expand its utility you
know and you as well version two and
then how we can skill you as well while
retaining its utility so what is you
know swap its first and foremost in
decentralized exchange protocol and it
makes use of automated market making it
makes use of pooled and tokenize
liquidity but what that means is in a
and a traditional exchange you kind of
have buyers and sellers matched up on an
order bus in unity sort of automate that
whole process and then you gives people
a token that sort of represents their
position it's easy to understand that
youth and that's one of the most
important things so why they need it
first it lowers the barrier of entry to
the participation in fines so can you
stop anyone can be a market maker this
is the current distribution of market
makers on you as well as a few weeks ago
about 25 percent of people in the 2.5
billion dollars dipole come from users
who but who you
less than 1% so it basically allows you
to pull together a lot of small market
makers and do what used to be only a
whales game anyone can create analyst an
asset this is super important in units
WAP right now is over 800 tokens about
100 250 have actual usage it's a lot
easier to get listed on you know up the
Nasdaq or even on essentially are on a
centralized exchange or even on us sort
of off chain order both decentralized to
sync this anyone can build on top of it
and this is more the topic of this talk
part of the reason for that is it's all
open source
the open source front-end documentation
or contact SDK and so you know since
they launched last November in a number
of projects have started building on top
of it so like one of the one of these
faces right now it seems like a lot of
demand for trading tokens on material so
trading interfaces wallets deft
aggregators and then we have you know
some people want to use it to earn
interest as a market maker what they're
doing is they're maintaining a 50/50
ratio in the New York when a token and
then they're burning fees on trades
between the two you could one option you
could do is you could use that liquidity
as collateral take out a loan against it
basically be able to leverage up on
market making another option is create a
liquidity source gonna have a patient
you care about so make your doubt but
it's a lot or there's a lot of MKR is a
lot of Spain and the reason is tokens
like spank have a really hard time
getting listed on exchanges because
they're about to do if you don't
industry some people and this is the one
that I'm more interested in its like
integrating eunice walk directly inside
of applications so for example you could
you know locked up eat and maybe
devoured ice Popp that die for eat
locked out and make it out
you can kind of loop through protocols
to leverage out though they've been you
know some projects have tried this out
like open new odessa and stuff like this
but what we really want to do is we want
to improve you as well so they can serve
more uses than I just innate and we're
gonna do that weekend as well version
two okay so the first and most and one
of my favorite features is a
decentralized price horrible the second
is you know direct gives you twenty two
or three twenty pairs now Eunice Bob
Forsyth all tokens to be parody and
there's a lot of is a big advantage
there and they've also some versatility
versatility that you can get allowing
arbitrary pairs and finally we've
refactored the entire code base to make
it a lot more flexible I think more
secure and better than a lot care okay
so how do these Oracle's work well the
idea of the Oracle's that that it
provides a maximally decentralized chain
pricey for any RC 20 token with a very
clear incentive structure very easy to
reason about that like the cost of
attack how secure it is and it can be
useful for things like synthetics
lending automated trading stuff like
that one example use case that we're
looking at is no augur needs a got to
eat spicy or
so actually before we get on I mean I
maybe explain a little bit of how these
Oracle's work so the the most meaningful
price that you know right now there's
already projects using a spot with an
Oracle or they try to checkpoint the
price for maybe some sort of blending
system or synthetic asset but it it can
be front run any transaction that checks
the present unis Bob someone committed
you like the price right ahead of that
transaction and basically you know mess
up the Oracle for a relatively cheap for
a pretty cheap it doesn't cost that much
especially since you can synchronously
like front run it move the price let an
Oracle transaction go through and then
push the price back
so what we're gonna do is we're
basically gonna have every every
transaction on Eunice book check the
price and if it's the first transaction
of the block or in store that price and
what we can do is we can basically
average prices across multiple blocks so
that no manipulating the price on you
this fall if you could know you might be
able to manipulate it for one block but
for many manipulating across a thousand
blocks here across an hour or a day you
know you what we're ideally wanting to
expose is a lot
build pretty much arbitrary time length
Oracle's on top of you know swath so if
you check the Oracle once at the
beginning today and once at the end of
the day we can get it perfect one hour
on time weighted average price or the
price on unit swap at the beginning of
the block the reason we do it beginning
the block is basically because in order
to manipulate the price at the beginning
of block you have to the last
transaction in the previous block which
means you're opening yourself up to an
arbitrage in the next block and doing
that accost you know a thousand blocks
can be very expensive
the microphone oh you can hear me yes
about that
okay the the other feature who are
working on is the earthy 20 to go see 20
pairs the main idea here is to allow the
pretty providers to take on a wider
range of positions also allow for lower
slippage and fees on direct here some 22
years to 20 pairs for one two with any
of them right now you know when you go
here's the 20 or 20 you have to go
here's the 22 ëthere see 20 you pay 0.3%
see on both sides and then the slippage
on both sides it is in general we think
reading increases the protocol
flexibility so an example for the use
case where the most interesting with
allowing tokens to be parroting in
stable coins or even stable point
compared against each other or just have
very highly correlated assets you know
if you create there's all sorts of
different projects where they they
create assets that are you know meant to
be correlated with each other for
example you can imagine like C die and
die between the two you're just gonna
you're gonna have very low loss
you're very low basically the losses in
units while coming from the prices
diverging
so an example use case would be AC died
to see us DC pair unlock this this is a
so well that we were thinking about the
idea of ayodhya TOS BC pair as an
example use case or or this but one
thing that kept coming up was the
opportunity cost of lending a stabilizer
so right now if you if you let make
about 15 percent return versus if you
were looking provider on the system and
you know swap you would have to be
making a fifteen percent return for it
to be worth it but if we have these sort
of ability to create arbitrary here C 20
or C 20 pairs we could create a pair
between C dot HTM CC where when someone
wants to trade you know the trader is
extracted from them they just send some
tired of the contract the dye is go
through compound converts until she died
and then she dies goes through you know
swap converted to see us DC Co species
back to compound or us decays and then
us DC back to unit swap in a single
transaction and what you have is for the
liquidity provider they're able they're
basically leveraging up they are earning
interest on compound while earning fees
on you know swapped for the trader all
they deal with his dying this PC and so
they have a much lower opportunity cost
in this case or the provider yeah so
there's no healthy loss in London
and in this case now this is not true
you should be telling me that's wrong
because technically they can have a
different interest rate so they were
maybe that's very very small very very
small potential loss between the two but
not not very much so yeah users can swap
die for us to see the very low prices
and then you could also even imagine
this see the height to you if you see
liquidity pool tokens then being used as
collateral because it's very stable and
then not only have you leveraged up by
lending in market making at the same
time but then you're taking out a loan
against that same platter again yes the
money Legos get kind of crazy but we
have a lot of fun with it okay so one of
the things that the thing that this has
been focused on Safari is like the idea
of building on top of unis wall and we
also want to improve the you execute as
well and one of the best ways to improve
UX parades for a single application is
using layer 2 but with most layer tools
that have existed up until some point
it's been oh it's always made this
sacrifice but we can no longer
interoperate cleanly and smoothly with
other with other applications so there's
you know a few different applications
out there there's plasma there's a
Corolla and have about mr. Corolla
maybe I'll very briefly very very
quickly high level with explain
optimistic roll up you post blocks you
often you execute them optimistically
which means you assume everything is
valid unless it's proven invalid and
then basically there's some data off
chain that users can have proof
induction is valid or invalid very very
scalable because you basically have to
get everything off chain and you don't
put any data on chain then you have zk
roll up this is the idea that you can do
a you can put data on chain very lik
minimal data for transaction and then
you do a stars proof that all those data
all that data was executed properly
optimistic roll-up basically combines
the two ideas we've execute everything
optimistically is blocks that are posted
and you assume that they're valid but
then you post the data that you need for
the Frog proof to ethereal
okay so optimistic roll-up is lit
optimistic roll-up can scale Eunice pop
we can do generalize mark contract oh oh
yeah an optimistic roll up in scale
generalized interoperable Smart Objects
an ethereal so we can continue to build
up on top latina swap while scaling you
some some credit to plasma group there's
Karl over there I don't know if anyone
else from flattener grips in here maybe
not but middle of England when Karl
flourish Ben Jones will Meister and then
cut it to the tower group
aleck who had also done a lot of most of
the research how most have researched by
he you know there was a platinum
research to the role of recent research
for sure and creating a theory so an
optimistic develop do unit swap yes it
can and we built it and can do about and
by we I mean you know swap created a
front end and a group created back end
it can do about 250 transactions per
second or it can if we optimize the
client on Istanbul it can you know has
native meta transactions that you can
queue up multiple transactions and we
have it was built by UNESCO and Plasma
group so now I'm gonna ask you all to
pick a team really important are you
Team Unicorn
you know ones are majestic their side
they're beautiful and they love long
walks in nature or are you can hitting
take that cute they're very smart
they're the life of the party and they
love eating until they fall asleep okay
raise your hands a new team unique okay
[Music]
okay it seems to be 50/50 mathematically
but I'm in this room if the page like
it's called unit big dot exchange I'm
gonna demo it right now I think I have
time good all right
I actually have people to heart
regressions
I wanted to okay go alright you know
thinking that exchange and a demo with
Eunice pop an optimistic roll up and
working on it for the last month
alright so the first thing you we need
some form of civil resistance because
the money is all fake
we can't show you fees alright so you
can fo get tokens from Twitter we have a
pretty great Farrah Fawcett alright it
brings up is tweeting at you the pig
exchange in a tweet yeah okay so we just
got sent 30 uni tokens and 30 piggy
tokens on our layer to wallet this
wallet is a burner wallet built into the
browser you see there's a wallet now I'm
like most Emily was I'm not gonna be
bidding very long these transactions to
confirm and it's done
and it's done we don't want to we want
to we want to sell all our pigs so that
increases the value of okay we also have
good integrity of this is is basically
to encourage participation of two people
who match up and they both have wallets
on they can scan each other ready just
like that report there you go and I got
10 tokens on this account and tokens on
the other account yeah so the the real
thing with optimistic roll-up is it's a
massive massive UX improvement over over
using in the base train right you can
get instant confirmation you can get two
of your 50 transaction for a second you
can you know you don't need to do the
approve and transfer you can basically
queue them up together basically doesn't
need this
yeah let's hear stats here so we've done
about 2100 transactions through our
depth on we've had a bunch of people try
this demo I didn't realize this I always
pay really high gas price for my
transactions the average gas cost of a
gentleman or the average wait time of
transactions on aetherium in over a
minute
so we've saved two thousand six hundred
minutes on these two thousand
transaction
people just sitting around waiting so
that a lot of time yeah
all right anyway I think I'm gonna open
up your questions if you have any
questions about this demo about music I
can too if the transactions are
optimistic how soon will people know
that my people know they're lying okay
as soon as they they get the uh
basically say you have someone from a
blog they submit that block so it's a
block header and a half it can work over
it
and then some daily anyone in the world
as long a minute here iam no and they'll
see all that data and that's all they
needed to sort of validate everything
every transaction like lots of ideally
someone's watching the chain I knew who
cares about it can watch the chain catch
invalid or into the transactions and so
basically as soon as I submitted someone
who put on some swatches you have it any
other you know what trading baseball
cards or
[Music]
do you happen to work in a crypt if none
of the trades that involve baseball
cards oh no no I agree I so one thing I
really like about about this sort of but
it's not really validating about
building this demo is that I do feel
like you could create something kind of
like the way crypto Kitty's went viral
and it just kind of shut down in theory
own we could you know create something
like that worth of our you know think
it's not necessarily like a super viral
games because it doesn't have that many
elements to it but you can create
something crypto please like that could
have rejoined much much much wider
audience of people without a good
question I think that the way that I see
it playing out is that for the vast
majority of tokens they would still be
paired with II the only really eath or
maybe some stable coins
I think that there's very specific use
cases I don't know if you've heard of
like yield protocol that maybe makes
usage of sort of arbiter of of the young
trade fairs but for most of them I just
see them being paired like maybe eat
maybe die maybe go Stacie with a couple
and if you're only routing through a
couple it's actually not that difficult
to kind of check the price on a couple
different ones yeah actually if you want
to set the idea of the yield protocol is
that if you pick Y tokens and pull them
a terrorist
respective tokens if you'd like yok R +
MK r I'm Eunice wah and you have the
Oracle features when you can create an
interest rate Oracle doing this
consistently calm down yeah any other
questions I've heard discussions about
the termite determining the transaction
feel yunusov as it meets or really have
a constant slippage for a given price
and you research like instead of using a
point three percent it just having
something that's more there is there has
been research if you love that research
I don't have you know comparative
Charlie noise paradigm media
investigating investigating that at the
current moment I don't have any sort of
formula that I can choose a better what
options you could just really create a
pool that fuses in nominations them we
problem there is you once again national
quiddity it's definitely like a
important Eric research I some of my
intuition around this is basically if
you had a different fee all it would
really mean is like you may be almost
like a different would it be level where
it means equilibrium like is a sort of a
point where the volume it like the
natural volume and look with any kind of
matches up you can I think that that
point just kind of changes based on 50
level but for certain pairs is true that
like you know if you can have a specific
pair that's really really 20 minutes but
basically if you could have a specific
pair that's like really like tightly
like a very very tight margins on
another exchange obviously as well
becomes less efficient for that
so this doesn't use meta transactions
actually this uses a unit pic uses a in
browser burn our wallet which is nice
looking like sign for your private keys
it's stored in your in your local
storage on here so really so that the
idea when I said native minute
transactions what I really mean in the
native account abstraction basically the
idea is in Bitcoin for example you can
you can sort of take multiple UFC of
those and you can kind of send them like
you can basically paralyzed their like
say these three transactions all need to
have been synchronously in unis Bob
Brennaman on ethereum you have to do it
like so it makes it a little bit more
complicated to kind of queue up for
example if you want to do and approve
and then I trend action that you could
transfer from you can't naturally queue
them up correctly from your wallet but
something like optimistic roll-up would
essentially allow you to queue up
transactions so that you can yeah yeah
alright I think that
[Music]
[Applause]