After our partnership with AuBit, Founder Graham Doggart was a special guest on this week’s episode of Fireside Chat. Graham explained why we should be excited for the future, his top tips about making money in DeFi, and what to expect from our partnership in the future.
Silvia introduces the show and asks how everyone’s week is going. The cast discusses recent hacks in crypto and Solana going offline. The show will discuss the recent news about people losing money in DeFi, aka hacks and exploits.
Silvia: Avalanche-based DeFi protocol Zabu Finance has become the latest victim of an exploit; did you guys hear?
Silvia then adds that $3.2 million was stolen, but the company promises to reimburse the money to its users.
Akash talks about how Zabu Finance is a different kind of token with a sports transfer tax. He mentions how those kinds of taxes are complicated because they’re new to the DeFi space. He adds that those kinds of hacks could become more prevalent as the DeFi industry expands as a whole.
Akash mentions that users can use SteadyState’s risk analysis database to help vet these projects for legitimacy.
Silvia: DAO Maker’s vesting contract was hacked by taking advantage of a loophole in vesting contracts. Can you guys guess how much money was stolen?
Jon joins in, adding this was the second hack he’s heard of — questioning their credibility and suggesting that they re-evaluate how they do things.
With Silvia adding, they lost $4 million. Silvia adds that federal officials and state authorities in the U.S. are warning that the crypto financial services industry is vulnerable to hacks and fraud as they rely on risky innovations.
Silvia continues regulators are worried consumers are not always aware of the dangers of decentralized finance platforms because crypto deposits accounts are not federally insured, and holdings may not be guaranteed.
Silvia: But what are the risks, and how do you stay safe?
Jon starts by saying people should be focused on figuring out which pools will be productive in the short term versus the long term. He gives an example of a USDT weave pool, saying that people need to focus on better long-term when thinking of smart investments.
Graham agrees with Jon and adds that when people diversify, there’s still a significant counterparty risk, but if you apply good financial principles, higher risks come higher rewards. Graham then emphasizes the importance of diversifying your asset classes.
Silvia: Graham, could you please share more information on what AuBit’s freeway platform is?
Grahams mentions that AuBit is a platform that allows users to benefit from the revenues generated from the platform.
He adds that they charge you a fee that comes out of your investments in traditional finance, whereas with AuBit they have created a network where fees stay within the ecosystem and compound for additional gains.
He also adds that their long-term goal is to offer any investment product with additional returns calculated according to the asset a user holds. Whether it’s Tesla stocks or Bitcoin, thus generating high staking opportunities.
Silvia: What are Freeway token benefits and their utility and shares?
Graham explains the utility of the freeway tokens is woven into the platform. Since AuBit launched its staking platform across Europe and the U.S, the freeway tokens required to access high staking rewards in the protocol are much higher. Stating that users would need enough freeway tokens in their account to get the full benefits of the platform.
Jon joins in, adding that a token structure of this kind is robust because it builds community anf Graham talks about the virtual proof of stake model built into the product.
Silvia: What are supercharger staking products, and how does AuBit pay for high-staking rewards?
Graham explains that AuBit doesn’t offer lending-based staking systems like Coinbase. Choosing to use instead of a staking protocol will evolve into how the entire network is kept secure. Graham also talks about focusing on user acquisition and retention and the AuBit/SteadyState partnership as a means of creating significant network effects to create a moat to protect their brand against the competition.
Explaining supercharger staking, he says users can get Freeway tokens, place them in a Freeway account and allocate them to different products such as USD, Bitcoin, etc.
AuBit’s staking reward system then gives people daily rewards based on their denominations, i.e., Bitcoin begets Bitcoin. Saying that because there are no middlemen and no costs, disintermediation allows AuBit to offer the same tier-free rates throughout the system.
Akash: Without revealing your I.P., is AuBit going to expand towards trading using those kinds of pools to get returns, or are you going to stick to the more traditional instruments?
Graham talks about how lucky they are to own tried and tested I.P.s as well as opening up to a robust and liquid market
Silvia: How will SteadyState and AuBit work together?
Jon says SteadyState will work with AuBit to assess specific protocols and ensure the community is protected from risks. AuBit does a great job at portfolio management theory and risk diversification.
Graham talks about SteadyState’s insurance model as a tried and tested solution to curbing systematic risk adding that AuBit’s brokerage platform will provide a good bridge from traditional systems to DeFi.
Silvia: Lastly, what do you think is the next big trend in DeFi?
Akash considers decentralized asset management to be the next big trend and
Graham agrees, noting that it will be difficult to create those kinds of protocols without moving into the regulated space.
About Steady State
Steady State gives DeFi protocols and platforms a practical solution to safeguard their financial future. With the help of Chainlink Keeper technology, our platform aims to eliminate bottlenecks in DeFi insurance by using automated processes, shared coverage policies, and a cutting-edge risk analysis database. Steady State is creating a new paradigm for decentralized insurance by delivering DeFi’s best-ever insurance platform for protocols.
To learn more about Steady State and the impact of our pragmatic approach to Defi insurance, visit us at the links below:
Steady State cautions that statements in this communication that are forward-looking, and provide information other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations and prospective transactions.