Living only from crypto assets - Bojan | Liquity

good day everyone Nicola threw me a curveball at the beginning of his talk he said that I'll be talking about liquid V2 but I really won't or not much at least what I'll be talking about instead is how to earn money how to store money and how to spend money self custodi now why is that important if you you like to have a complete Financial solution one where you can store where you can invest and where you can spend money then you're really stuck with the incumbents now while some of those apps are really nice to use and have nice features the thing is once you send your money to them your money is not yours anymore and me being rather paranoid about my money uh I don't really like that fact so I came up with a simple work around how I can still keep control of my funds but at the same time spend them rather conveniently if I choose to do so and um there are just a few elements to it one is uh you need to store it securely ideally you need to generate some yields and you should be able to spended uh visually represented theal scenario you have some uh principle safely stored which generates yield and then ideally you spend only this yield for whatever you want to spend it uh now the first two points are well served within the defi system the last one no so this is where we need to make some um some tradeoffs small tradeoffs okay but I think as as with anything in life you need to have a goal why are you doing something and I think most of us can agree that um achieving Financial Freedom is why we are here at least to some degree but whatever your goal is um it's good to have one because it keeps you motivated keeps you accountable and just keeps you going pretty much and for this presentation I want to make a more concrete goal something more tangible so I chose the goal of being able to sustain your family with passive income only defi passive income only but I wanted to put some numbers to it so I checked out some statistics and you can see the numbers for five Balkan countries so in the first row you see how much money per month you need to sustain stain a family of four so for Serbia $2,100 and you see the numbers for the others two the second row is just a comparison Serbia to the others you see some are cheap cheaper some are expensive the last one is pretty expensive so I personally wouldn't move there but the last one is actually what we are looking for this is our goal what kind of principle we need if if we are able to generate 10% yield which is kind of doable in in defi what kind of principle we need to sustain our families in those countries and to simplify things our goal is getting to $250,000 now as with any goal some are just starting out some are well on their way and some have already reached this and this is important when we come to storage and the usage of the funds so to keep it very simple storage can be broken up into multi SS which are generally most secure Hardware wallets mobile wallets which are still safe and then hot wallets broader wallets which are not that safe very simply what I'm more interested in are the use cases for those um Storage Solutions in my opinion multi6 should be only used to store funds and to uh invest into handful into one or two D5 Blue Chips basically what you do with the bolig is send money from and to a hardware wallet store it and put it into a or whatever the second section hardware and mobile is your defi bread and butter and then hot wallets are for experimenting around D and 6,000 aprs and stuff like that and uh the slide I shown before where you are in the path determines how you use those Storage Solutions so when you're just starting out in my opinion you don't really need a multi you're kind of trying to make it within reasonable dii protocols and some D stuff but then as your principle grows as you are getting closer to reaching your goal you should really protect your funds more and more this means lower yield but in my opinion I'm pretty much all about Capital preservation so I like to go into to multi need to save protocols as soon as possible uh long story short at the beginning no need for a multi you go more digion once you reach your goal or are well on your way you you should keep most of your funds into multi and into put it into safe uh protocols so this is storage next one are safety measures um so you know about the basic stuff seed storage don't click Shady link don't interact with m seriously appearing tokens in your wallet what I wanted to cover is something that is more problematic for uh experienced users the biggest problem in my opinion is complacency because once you did 1,000 transactions and there is some kind of airdrop coming up or some kind of farm you might be rushing into it and you might uh not be so careful with what you're assigning so I use a couple tools with which I'm trying to uh solve that problem so the first one or the first combo is you can see on the left yes on the left side wallet guard and on the right side is my my main wallet which is called Robbie and uh of course the screen is not like that when you interacted it you will first have a front end and then those pop-ups appear so the process is like that I'm now here on defa Lama swap I'm swapping 0.1 e into Al D once I click swap uh the left side pops up wallet guard and it does a few things first it checks if the contract is verified you can see the blue check mark so yes it is second thing the green check mark next to defy Lama the URL is verified too and then it simulates what this transaction will be doing and since this matches what the def Lama front end showed to me I'm pretty confident that this is all cauer and good once I click continue on wallet guard my wallet pops up Robbie it does uh its own uh Security check it simulates again what in transactions we'll be doing and it really takes just 20 seconds of time but it forces me to think about to think about every time what I'm doing is it what I'm intending to do and then I can uh that with with uh much more confidence um the second tool is one with for the uh most dangerous website in all of defi which is of course Twitter here I'm using the defi Lama uh browser extension and it's really simple it just highlights any uh fishing uh links any scam links as you scroll the timeline so you see uh they are red uh they just appear like the uh lower one but I opened the upper one to see uh how how it looks on Twitter if you do not have that extension so those extensions are free pretty cool give them a try this kind of concludes the the first step so we cover storage we're going over to yield uh yield is a very personal matter I won't go too deep I will focus on this uh left side so once you are uh on your way to your goal or have reached your goal on the on the safe on the organic on the continuous on the predictable on the sustainable types of fields because this is what you want once you want to protect your um once you want to protect your principal but still generate a nice yield and there are not that many yield options uh one is of course a one of the OG protocols you can see that currently a few days ago when this was done you had a borrow rate of 9% and you as a lender could generate six to 7% on that which is not bad another OG uh maker again 9% borrow rate you get a bit more here 8% if you if you invest die but uh what if we can generate more than that and here is my little l Equity V2 plug this is the the earn side of things so not the borrow side of things because of how the money flows within the system you can actually generate more than you are paying for your borrow positions so as you can see here you're paying 9% if you deposit that into the earned product into the stability pool as it is known in V1 you're getting more how is that possible we need to look at the V2 money flow it's self so it's really really simple stupidly simple on one side you have the revenue those are the borrowers borrowers are having open loans they are paying an interest for that 9% or whatever and then all of the revenue 100% of the revenue goes to um participants in the system to incentivize certain Behavior so on the on the upper uh side on the upper half you have the earners which is akin to the stability pool depositors um here we are incentivizing basing holding demand and then down side uh on the lower part you have LPS and some other use cases uh where we are incentivizing liquidity so holding demand liquidity will be natively supported continuously from the revenue all of the revenue will be going that way and how you can now earn more than you pay for your borrow position well if there is less than 70% of the people or of the supply of the stable coin in the earned product then you're earning more so you're getting 70% if there are 65% in there you're getting more than you're paying pretty pretty simple math even I understand that so if you look at the current numbers for liqu V1 for LD then there were there was about 50 to 60% in general of the LD Supply in the stability pool so this checks out you would be earning more in that uh in that case uh LP about 10% now if we put those numbers into V2 we get the following numbers so we have a 9% borrow rate or average interest rate we have a 55% utilization in the earned product in the stability pool this this results in an APR of 10.3% now again this is organic continuous sustainable scalable predictable and no RVA no centralized assets nothing as in V1 contrary to pretty much every other protocol out there and then on the lp side you see if 10% of the supply is lping they are getting uh 12% now be mindful that those numbers for the stability pool do not include gains from liquidations which those people are getting too and for the LPs they do not include any swap fees or any incentives on top so this is pure naked protocol incentivized liquidity um but those numbers change based on the utilization in those two buckets so to say so what happens if everyone Apes to the disability pool and we have 90% there still pretty solid numbers 6.3% that's actually on par with AA that we saw earlier but that would never happen because if 90% of the supply is in the stability pool there's no money for lping anymore let's say we have 4% people lping then that APR is very attractive so this would be balanced out very quickly and the same happens if a lot of people LP which will never happen again but I wanted to show you the numbers so um V2 is really all about finding equilibrium between competing parties everyone is tugging into their own Direction and V2 kind of wants to balance it and find the the perfect market rate and here ends my liquidity plug last point the most interesting point the the uh bottleneck in our I setup real world spending um can be broken down into three categories we have P2P which is literally meeting with someone and exchanging crypto for for money for cash off- ramping and then crypto cards um if we go over the goods and the bads P2P is cool because it's Anonymous uh no KC uh the bad thing is it can be risky it can be more expensive um though for example here in the balons uh people are doing that via telegram groups and those groups are generally pretty big they are vetted so in my opinion in my experience it's neither risky nor is it expensive but it is very inconvenient because you kind of have to meet people and talk to people of that stuff that many of us are not keen really second one off ramping so off ramping is cool because you are off ramping directly to your bank or to your fintech revolute whatever and you are off ramping into the very rich ecosystem so the offramp itself is not rich but the bank like revolute with uh travel insurance and investing option all kinds of accounts and cards and yada yada yada it's a nice product you can't deny that I use it too uh bad thing is uh while those offr services do not generally charge High fee they give you pretty bad swap rate so they kind of you over a little bit uh another big problem is you never know what happens when those funds hit your bank account there might be questions there might be frozen or even closed accounts um though I'm seeing less and less of that or hearing less and less about that so maybe it's getting better and then of course kyc can be avoided uh crypto cards very interesting thing um there are really fast to top up can be done 24/7 and they are uh Crypton native in that regard that the infrastructure provider in the background is aware and agrees to doing business with Apes so um you shouldn't have any closed accounts or I haven't heard at least any problems in that regard uh negative again kyc but that's just the game you have to play if you want to use the existing rails the Visas P systems the banks you have to K withc if you don't like it you can go P2P or pray that something alternative will come up but I wouldn't hold my breath for that so if we break them down a little bit I won't be going into P2P but I will be mentioning one off- ramping service which I like a lot it's called M it's a Swiss company since 2018 established 2018 it is recognized by finma and it supports um many countries so also all of the Balkans is covered um they do charge like 1% or something like that 1.5 but there is no fee on certain euro coins but you have to check that because it changes the kicker here is no kyc up to those a month so 1,000 Franks per day 15,000 per month you don't have to kyc which is pretty cool because those numbers are are sufficiently high we can say and then the most interesting thing for me and many other people are crypto cards crypto debit cards uh there are many crypto cards the binance cards the coinbase cards whatever but I'm I'm not not talking about that I'm obviously talking about self custodial cards because we want to keep control of your funds as I said in the beginning so crypto cards are nothing else really than iban accounts with linked debit cards but the kicker is that those crypto cards uh can be topped up from self custodial wallets some uh offer just the linking of one wallet some multiple wallets so you can just take your mobile app or uh computer whatever you connect your wallet and you top up whatever token you want I mean depends on the card but you can top up it with tokens from your self- custodial wallet which no one else controls that's the big defri differentiator uh compared to binance and co uh and of course they are iban accounts so you can just uh pay your invoices or receive money from friends or top it up that way or whatever so um really convenient really nice product I use it a lot actually since two years that's what I mostly use to to pay for stuff um there are six seven eight of uh such cards already available the most well known in this space are holy health and nois pay I am a big holy Health user um but the problem here is that they are only available for EU and UK so Serbia Montenegro sorry not possible but we do have one card which um launched recently I think maybe half a year ago which is called offramp XY Z which does support all of the balans and uh most of the globe um I do have offramp XYZ I did use it I did pay with it top it up it's a Polish compan is behind it so it looks pretty good uh I had no complains but as I said I'm I'm a Whole Health user so that's what I what I stick to and um as the last step I wanted to show you a practical demonstration uh it's actually how I'm topping up my wallet on my phone this morning you will see it takes literally one minute top it up um for Holy Health on your phone you don't need a wallet on your on your phone to have it at all you just um you just generate it via pasy and uh you just generate a new wallet this has the benefit that you are not dependent on any external apps so you don't once a transaction is uh initiated a wallet must pop up and if you're a mobile wallet user that sometimes doesn't happen or the transaction fails or whatever this will never happen with holy health because they handle that all internally within the app and now enough talking myestro if you can please play the video oh it's already playing can you can you go back please so that I can walk you through okay thank you very much I didn't see it here sorry so I'm signing in into my phone you see I have €400 and here on the plus you can top up things I'm a bit slow with the pressing it seems okay here we go so top up bank transfer or send to a friend I'm clicking top up and then you have many many l2s and chains supported I'm generally using Arbitron because it's cheap and we like cheap and you can tap it up with any es20 now I'm using if uh you can enter the Euro amount or the E amount and once I'm happy I'm confirming clicking continue uh I'm using 10 because it's really cheap you can see just three cents a network fee and no fee so holy hell it doesn't charge any fee on on any topups uh and then once they click top up that's pretty much uh the end of it but we need to wait until it confirms now it's uh 5 seconds so let's see how long it takes um as I said it's it's really convenient you get uh cash back 25 basic points on any uh payments and uh no topup fees and the swaps are done by 1 inch so you get good prices uh still topping up it's now 30 seconds uh what am I doing now oh showing you the cash back 18 uh 18 usdc earned we are at 45 seconds open this was not intended can we please proceed oh very good yes speed running it [Music] um sorry about that is it playing no it's not playing anyway it did uh complete the topup in about 50 seconds I estimate the funds arrived and I was uh 10 years richer so it's really convenient I use it a lot I don't want to uh you know pitch holy held too much but in my experience and that's what I'm sharing here it's a best best way to use your uh font in a safe and controllable Manner and uh yeah that's about it so thank you very much if you have any questions I'm at your disposal something is happening no I just wanted to say uh thank you for dropping the alpha there I have a quick question around um how secure you think these apps will be with you know the different um f um you know laws coming in and obviously different changes happening to the euro Zone and these kind of intermediaries I am for some reason understanding you very badly I don't know if my Scottish accent I'm just curious as to how secure these um these uh online banks will be really how secure they are yeah uh you are referring to the crypto cards right yeah holy held yeah I mean I know the team so I'm pretty uh pretty confident in them it's trust is basically what I operate lately most on so knowing teams knowing Founders knowing what they're doing but I always just top up what I'm willing to spend be it here or be it on revolute I just top up 500 €200 and I do that continuously because the feeds you can see are simple so I'm kind of uh I have uh full faith them but I still um take care of my fund so to say or I'm protective of them and and would you recommend staying below like a certain threshold like a certain amount like below the $55,000 threshold or something like that or whatever you're comfortable with pretty much okay all right thanks per than your question sure anyone else thank you for the talk can I ask how often you have been changing your setup it sounds like some of these cards you have used for a while but how often are there new ones that you consider or change between so holy H was among the first ones or the first one on custodial I don't know so I'm using them since since the launch as I said 2 years ago and since I'm happy with them I'm just sometimes uh looking into new ones but not really uh tempted to change something so it's holy heal and then I think I tested maybe two more but just to experience them any more questions all good no that's it yeah cool thank you guys see you around