2020NEXT | talks Aave with Band: DeFi road, the power of the community

Today, the blockchain industry is still in an experimental stage, and the "TCP/IP" belonging to the blockchain has not yet been formed. The contention of a hundred schools of thought in the protocol layer leads to the fact that it is still too early to talk about the outbreak of the future application layer, and the innovation needs time to verify. Yet when all eyes are on price, innovation is often overlooked, and it is these innovations that underpin the value of the entire industry.

To this end, KuCoin has launched a series of "2020 NEXT" activities, with 1-2 innovative projects per session, in the hope that their thoughts can bring value to the development of the whole industry.

The fourth session of the dialogue takes place on September 3rd in the rhythm studio, Aave's CEO  Stani  Kulechov  And Band's co-founder and CEO  Soravis  Srinawakoon  Our guest for this session is Mable Jiang, managing director of Multicoin Capital.

The following is the dialogue content of the fourth "2020 NEXT" activity organized by BlockBeats, Enjoy ~

Mable: In this issue, NEXT, we are honored to have Aave CEO Stani and Band co-founder and CEO& NBSP; NBSP; NBSP; NBSP; NBSP; Soravis. The Aave Protocol, a decentralized lending Protocol, has been a standout this year. On July 30, Aavenomics, a new scrip economic upgrade program, was launched, and its native scrip LEND will be converted into new governance scrip AAVE at a rate of 1 AAVE: 100 LEND. AAVE scrip holders can vote on the agreement. As of 4pm on August 31, Aave is firmly at the top of DeFi with $1.6 billion in lock-up volume.

Aave raised $3 million by selling scrip, with venture Capital firm Framework Ventures and cryptocurrency hedge fund Three Arrows Capital participating in the investment, and the two firms bought 30 million Aave native scrip Lend, legal Action reported in July. Earlier, ParaFi Capital, an investment firm focused on blockchain and decentralized finance, announced its investment in decentralized Lending Agreement & NBSP; Aave. It's worth mentioning that KuCoin has recently launched LEND, which allows viewers to log in to further participate in the KuCoin experience.

Band Protocol is a decentralized data management Protocol based on block chain. Various communities can use Band Protocol to generate a token, upload the data under the chain to the chain, and use it for data management of various communities. It belongs to the decentralized prediction machine track. In 2019, Band Protocol completed a $3 million seed round led by sequoia capital India with Dunamu&Partners and SeaX.

The theme of this NEXT issue is "DeFi's Way - The Power of The Community". We will also discuss DeFi and community Governance tokens with our two guests.

Mable: Would you please introduce yourselves and your projects respectively?

Soravis: Hi, I'm Soravis, co-founder and CEO of Band Protocol. I graduated from Stanford university as an undergraduate and a graduate student, with a background in engineering and business, and worked at Boston Consulting Group. Band Protocol is a decentralized data management Protocol based on block chain. Various communities can use Band Protocol to generate a token, upload the data under the chain to the chain, and use it for data management of various communities. It belongs to the decentralized prediction machine track.

Stani: I'm THE CEO of Aave, Stani. When I was young, I made a piece of financial software, and then I went to study law. During this time, I came into contact with Ethereum to try to solve smart contracts in the legal field; In 2016, I tried to handle the chain and lending of large transactions. At that time, we created the first loan agreement on Ethereum, ETHLend, which USES de-trusted smart blockchain contracts to simplify management when storing mortgage tokens for loans. In '17 and' 18, we're still focused on that. In January 2020, we launched an improved version of Aave, and the new project still adopts the scrip LEND of ETHLend as governance scrip. Users can earn interest income by depositing in the capital pool, and at the same time, they can also use the agreement of lending the capital pool with excess mortgage funds and paying interest for the loan. Now Aave V2 is also online.

Mable: Stani, can I talk to you about Aave V2? What do you think is the most interesting part? What is the biggest change that this upgrade of economic models has brought to you?

Stani: The release of Aave V2 is mainly to strengthen the existing protocol. From V1 to V2, we decomposed the code, optimized the Gas fee, and realized the support for native GasToken, so as to further help users reduce transaction costs. Add security and debt, mortgage margin trading features, and add specific governance features, etc. Our goal is to create a user-friendly protocol. We have a great user interface and we're very focused on the user experience.

The V2 version will introduce a number of new features:

1. In terms of mortgage payments, the new version allows users to de-leverage or unwind positions by directly making collateral payments in a single transaction.

2. In terms of debt scribing and credit entrustment, the user's debt status will be minted (the user will receive a token representing his debt). The coinage of debt makes local credit entrustment in Aave protocol possible, and users can conduct local position management and liquidity mining strategies for specific users through cold wallet. In terms of fixed rate deposits, predictable deposit rates provide liquidity providers with clear income guarantees and are not subject to market changes.

3. From the aspect of borrowing rate, the borrowing rate can be locked in a certain period of time, which improves the stable borrowing rate. On the private side, to meet institutional needs, the Aave agreement will allow the government to open the private market to support a variety of scrip assets.

Mable: Soravis, I see that some people in the studio have noticed that you're working with the Wave Field Foundation. Can you give us an update on what's going on with the Band Prophecy? What partners does Band currently have? Can you share the latest news on GuanYu testing Website?

Soravis: Around September 2019, we launched the first prophetor in Ethereum, and very quickly we learned about the limitations of Ethereum, such as low scalability, high Gas rates, low reliability of existing data, and so on. This was also an opportunity for us to launch a new version of Band Prophecy built into the Cosmos ecosystem to provide a more scalable and fully decentralized prophet solution. Each data provider is required to pledge a certain number of tokens in the chain of the data set, and the holder of the tokens of the data set can obtain the right to vote by mortgaging the tokens to elect the data provider he supports.

A while ago, we launched "Guan Yu" testing network, which supports proof-of-authority. Our partners can use our prediction machine. DeFi is very hot right now, and we're seeing a lot of scenarios, including prophetic machine lending and token exchange, not just on Ethereum, but Solana, Cosmos.

Our partners include some exchanges: Coinone, Coinbase, etc. There are also some public chains and projects, such as Nervos, Loopering, DSLA Protocol, FuturelCX, and so on.

Mable: People have been talking about DeFi that is not Ethereum. Stani and Soravis, what do you think about this?

Stani: There are a lot of layer-2 projects, like Aave and ETHLend, that were born on Ethereum, our community and our technology. Ethereum is like our base and chain ecosystem, and that's why we're here.

Interestingly, for some projects, building on Layer1 would reduce their efficiency, so they looked for Layer2 solutions, such as newer protocols, such as many NFT projects (such as Aavegotchi).  

For Aave, we are a secondary market where assets can be stored and lent, and we need to track the operation and direction of assets (which is why we chose Ethereum). There are a lot of great Layer2 solutions out there, but only a few projects are based on them, and we may see more cross-chain collaborations in the near future, as each project and community has their own DeFi requirements, some of which are hard to implement on the Ethereum chain.  

Soravis: Yes, many of the projects are based on Layer1. Different blockchains require different languages and have different limitations, which is also the point where we need customer service as an integration team. We still have a long way to go.

Mable: Hey guys, there's been a lot of discussion lately about community governance and VC, which is also an interesting topic. Specifically, which form do you think is the best option for setting up a project (large or small investment organization, full community or VC endorsement, etc.)?

Stani: Over the years, VC has been the best backstop for a project, and VC has always been an important point when we talk about endorsements. Now we're also seeing models that give governance to investors, which is actually fairer to users. The most attractive thing about this is that investors get more assets and sell more of them. Large "printing" money, retail buying large "printing" money, this is actually wrong. In my opinion, the most reasonable ecological model is DAO, which can gather the rights in the community and raise funds quickly. Of course, you are not financing for yourself, but for DAO. Everyone can participate in the fundraising and will become a member of DAO ecology.

Traditional financial institutions, like banking, of course you can create money, just like in Germany after World War I, you can create money, and other countries do the same, causing their currencies to depreciate. This approach lacks much valuable innovation.

Soravis: When we talk about VC and community governance, it really depends on the goals and users of the project itself. VCS can certainly give us a lot of advice, including help with product development and founding foundations. VC endorsement is also something that we value very much. But with a deal like SushiSwap, Community Capital can obviously help them better.

Mable: What are the plans for Aave and Band in the coming months? Is it related to the Asian and Chinese markets?

Stani: of course we have done something already. We have a WeChat group and we have approached a lot of Chinese investors. Now, we are trying to translate our terminal into Chinese.

Soravis: China has always been a very interesting market for us, and DeFi projects are popping up all over the world, but picking good DeFi projects has always been a problem for investors. We are very willing to take our ideas to the Chinese community, for example, we also set up the WeChat group. More importantly, we want to bring together all the interested people in the world.

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia