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May 30, 2022

#007: Decentralized Bonds ft. Yu Liu and Máté Mátyás


In today's episode, we speak to the team of D/Bond, to understand how they are introducing decentralized bonds that are revolutionizing the DeFi space by providing stable yields for digital assets. 

D/Bond has created a new standard - ERC 3475 - to make decentralized bonds accessible to anyone, creating a more level playing field. Users may create their own bonds and derivatives backed by diverse cryptocurrencies such as stablecoins, NFTs or Bitcoin. 

Our guests for today are Yu Liu - Founder and CEO of D/Bond, and Máté Mátyás - Media & PR manager for D/Bond.

Resources:
D/Bond: https://debond.org/
D/Bond Airdrop: https://debond.org/airdrop
D/Bond on Twitter: @DebondProtocol
Transcript and Chapter Markers: https://www.buzzsprout.com/1968123/10699208

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Transcript

Episode 7: Reimagining DeFi with Decentralized Bonds ft. Yu Liu and Máté Mátyás


You're listening to The MetaRoy Podcast and welcome to a brand new episode with your host, Roy. Every week on this show we learn and unlearn about one aspect of the crypto world. 

I know stepping into this brave new world full of tech jargon and financial stuff can be overwhelming, but fear not, I am here to take that load off your shoulders. Imagine me as that friend who does all that heavy lifting for you by decoding the crypto space while you relax with ease.

About Yu Liu and Debond
In this episode, we are going to be talking about DeFi and we have a very special guest to take you through it. Let me introduce Yu Liu, who is the founder and CEO of D/Bond, a blockchain based Web 3.0 solution for decentralized bonds and derivatives. 

Previously he founded Swap Helper and Grap.Finance. He is a Master in Sociology and Finance at Paris Dauphine University. In parallel to his studies, he had been pursuing his passion for finance and more particularly, for Decentralized Finance (DeFi). Yu is a math and cryptography enthusiast. When he isn’t rocking those numbers, he enjoys movies and photography.

Roy: Yu thank you so much for joining us and I really appreciate you taking the time out for this interview. 

Yu: Thank you. Nice to meet you. 

About Máté Mátyás
Roy: We also have Máté Mátyás who is the media manager at D/Bond. He is a PhD candidate specializing in the international economy. Thanks Máté, for joining me today as well.

Máté: Thank you so much for having me too on your show. It's great, I love it and I'm learning so much from you. 

Roy: And while you guys are listening to this, I would really appreciate it if you leave a review and feedback on my website, themetaroy.com. If you're new to this show, do hit that follow button on Apple Podcasts, Spotify or any platform of your choice and stay connected with me on Twitter or Instagram to be notified about new episodes. 

Before we start though, just a quick disclaimer. The following content is informational only and none of it should be interpreted as financial advice, so please do your own due diligence before making any moves in the crypto space. 

With that out of the way, let's get started. 

Yu's Background
Roy: Yu, can you take us through a background and your experience with Web 3.0 and the crypto space? 

Yu: Hi, nice to meet you guys. My name is Yu Liu, I'm from Paris and I'm working on a DeFi project which is called D/Bond and this D/Bond can guarantee a certain amount of insurance in DeFi, which is not present right now. So we believe our solutions will be the future for the whole DeFi system because it's much more stable and much more efficient than the current DeFi solution. 

So that is basically myself and a little bit about the company. So we are based in Paris and there are twelve in-house team members in Paris. The project is nearly finished, so we are hopefully going to launch it as soon as possible. 

Máté's Background
Roy: Great. Máté, can you introduce yourself as well on this podcast? 

Máté: So I also come from a social science background. I did international relations during my undergrad back in my native Hungary. And I also did a little bit of studying during my undergrad in the United Kingdom. And after that I decided that I wanted to do something more global. So I went for public administration in China, which is a very interesting place to study public administration. And I also did an exchange to the United States. 

And after that I was like, I want to learn more. I still don't understand how society works and I want to learn something that is related to economics. So I shifted towards political economy by doing a PhD once again in Hungary. And this one is about media economics. And this is where I discovered how important transparency is and how important trust is in a society. 

I'm sure you are all aware of how the media landscape has changed with a lot of fake news, misinformation disinformation. And I am finishing this PhD, which is about Hungary's media system. And I decided that I don't want to stay in academia and I want to do something that is more meaningful than writing a lot of pages which nobody will eventually read. And this is how I ended up choosing the crypto sphere.

Yu and I met completely by mistake. We could say I was just looking for a job here in Paris where I moved for personal reasons. And here I am. And this is a fascinating journey for me and this is how we met. Roy. 

What is DeFi? How is it different from Traditional Finance?
Roy: Great. So Yu, many people in our audience are actually just getting started with DeFi and the Web 3.0 space in general. And now we know about your expertise in DeFi. Can you actually explain it to us, like what DeFi is and how it is actually different from what traditional finance, what we are used to? 

Yu: So DeFi actually is a starter term for decentralized finance, which means that the technology is built on top of the infrastructure of blockchain that can provide a certain amount of transparency to otherwise very centralized traditional finance. So basically, DeFi promise to give a transparent and efficient system to operate any kind of financial transactions. 

And this technology is built on top of blockchain so nobody can alter it and it's decentralized, meaning that nobody owns the ownership of the portal. 

Current Problems in DeFi Space
Roy: Yu, many people have actually raised this concern that a lot of things in DeFi has actually been very technical in nature. So for example, many DeFi users and I'm sure including yourself, have been facing the fear of investing in crypto and DeFi for reasons such as, is my principle safe? Why should I pay those high transaction fees? Is there slippage or interest rates are questionable? So can you talk about those problems which currently existing in DeFi?

Yu: Yes, of course. So basically, like every single new technology. At the earlier stage, there will be a lot of problems that the developers try to solve before it becomes some kind of standard. So it's the same for DeFi. From start, DeFi is not very efficient and because of the current yield farming system, you may suffer impermanent loss. 

What we can do of course is trying to build a new system and try to help people to build a more stable system. By doing so, we believe that DeFi will be more efficient in the future and how we are going to do this is in a technical sense we are going to update the current existing AMM system, automated market makers. And we use a system which is called APM, which is more efficient and of course more stable in nature. 

Impermanent Loss and how to deal with it
Roy: You can throw some light on what exactly impermanent loss is and how the new system is actually going to deal with this problem? 

Yes. So we can give a very concrete example. So basically you are a user and you have, let's say 10 Ethereum in your hand and you want to generate some kind of interest. So you go to a newly released protocol, let's say Sushi and you'll find out that you can get the interest by adding to their liquidity pool. 

So basically the idea is that for the traditional AI member system you need two tokens which is a pair and you need them, let's say 50-50% in order to add the liquidity. So what you can do is you use 5 of your Ethereum and buy a coin amount of Sushi from the liquidity pool and then you pull the Sushi and the Ethereum into the pool directly. So hopefully you can generate some interest. 

Let's say at that day they promised 10% of the interest returned after one month and you believed in that because it seems normal and if bank promised some interest, I will receive the interest. So you put your money in and after 20 days you find out that the price of Sushi is dropping dramatically. So which means that you are not only lost all the interest you have been promised, you are not losing your principles because the Ethereum you can get out will be less and the Sushi you get out, the value will be, let's say almost nothing. So that's why the DeFi has this problem. 

It's because when the market is not doing well, the big investors, they have, let's say the first news, the first information, they will leave the market before everyone else. So they will pull out all the coins, all the tokens and then the retail investors will suffer most of the losses. 

So that's basically why the system is very volatile and that is why the system is not friendly for retail investors and how we are going to do this. Like I said, the APM, the APM need only one token which you provide to the liquidity pool and they will need a amount of our own token into the pool. 

So basically, you don't need to sell your own token and purchase our token. So when the interest is generated, it will be expressed in the form of bond and use this bond as reduction. You can use your bond to redeem the interest with your principal. So it's the same principle. 

So basically it's like a national bond. You produce your bond today at the price 100. For example, maybe one year later the bond value will be 110. So at that point you can use your bond to redeem the interest with your friends. You have a system, you will receive this kind of bond. And on that bond there are different kinds of interest rates, different kind of risk levels. 

So if you produce prime bond with a lower risk and maybe lower interest as well, you will be guaranteed to get your money back and get your interest back. On the other hand, if you prefer more interest rate and you can withstand more risk, you can choose a lower rated bond which is promising a great amount of interest but also more risk. 

So basically, the system is built on a contract. So it's the contract who is trading on the market. It's not a simple ERC-20 token. So that is basically why we can do better than what the existing system can. 

What are Decentralized Bonds?
Roy: I think it is important to understand at this point that how people have been used to traditional finance, right? So there have been stock markets, there have been bond markets, and now with crypto coming in, there's obviously a crypto market. So people who are more risk averse, they generally prefer investing in bonds. People with a lot of capital, they do not usually go all in into the stock market because of the volatility. Right. So obviously a protocol like this, like how you've developed a Debond, obviously it gives a lot of security to the investor who is actually going with the demand. And with that he also gets the flexibility to trade it in the market. Is my understanding about this correct? 

Yu: Yeah. So basically it's like a care system. So the traditional investors and people who hold a lot of capital, they prefer the safe situation because they can't lose any money, because their principal is huge. So even though the interest rate a little bit lower, they can accept it. So that is basically the targeted audience of our prime bond, which is fixed rate. 

So let's say if the pool generated 100% of interest per year, let's say it's a bullish market. And the people who produce the prime bond, fixed rate bond, those with risk reverse, they will only receive 10% as promised in the bond. But the rise of the interest will be given to the people who purchase the sun print bond, which is more vital, more risky, but more rewarding in some sense. 

So basically the system use the same pool and find two kinds of different audience and build most adaptive solutions for them. So that's why the protocol will be more involved than the current system, because it's the same token for every single user and you have no commitment in the protocol. 

Story of the Founding Team
Roy: Yeah, it sounds like a wonderful idea. Let's talk about how did you come together as a team? What was the story of the founding team and how did you all arrive at this idea?

Yu: So basically, like I said, I'm studying in Paris Dauphine. It was financial and administrative school in Paris. And there I met my friend Songbo, who is a math student at that time. So basically we are both interested in finance, cryptography and anything related to numbers. 

So we discuss about why the DeFi is not working. And our conclusion is that because in traditional finance, you have zero and one, which means that most of the acquisition is locked in somewhere in traditional finance is in bond, either national bonds or some kind of bond issued by a big institution. 

So that's basically why the Fiat can be less wild, because the system. So what we want to do in DeFi is understand how to build the same system. And we found out that it's impossible using the existing structures such as ERC-20 standard. It's impossible. 

So what we do first we invented a new standard which is called ERC-3475, which will be used for the issuing and redemption of our bond. So people can find a solution with more complex data structures and more dimensional. So the developers of other different projects, they can have more control over their liquidity pool and also for the users, they have more insurance in their investment. 

ERC-3475 Protocol
Roy: So as you mentioned, this is ERC-3475 protocol, which was not existing earlier. So you actually quoted the protocol from scratch and you built it up from scratch. So how is the process of doing that? How difficult was that process? 

Yu: So like I said, I have background in finance and maybe mathematics and statistics and also my earlier friends, let's say in the same domain. So we don't have very profound knowledge in terms of the first Alpha version is developed by myself because I have already some experience in DeFi Solidity and I created also two different projects before. 

So basically I have the confidence to create the first version which is developed on Solidity so we can recruit new team members. And back then we meet a third co-founder, Waroon, who has some knowledge in production technology and a doctorate degree in cryptography. 

So basically the design is mainly by myself and some mathematical parts are right now we have a team of twelve, so five of them are engineers. So it's a very tech competent team and we are rebuilding the structure to make it more efficient and lifestyle. So that's why I think the protocol will be successfully launched, because they have enough resources to invest in production and enough resources, invest into auditing. So we will be sure that this time the contract will be stable and will be easy to use. 

Assets that can be securitized using Decentralized Bonds
Roy: So, Yu can you tell us about what are the other collectors or what are the other digital assets that can be securitized using Debonds? 

Yu: So basically the idea is that you can securitize every single bond. So it's like a Uniswap, you can create power for every single token. But of course we will have that lists of the bond that we think is much safer and could have a higher rating and more insurance. So basically, of course it will be. 

Firstly the bond is issued and you can use a list of collateral such as through CeFi, Bitcoin, USDC, USDT, all those stable coins and important, let's say DeFi farming protocol, native token. So that is the first part and it's our own financial product, our own bond. But if the market are doing well, everyone can have any kind of bond and they can have the bond in their own ways, choose their own securitized asset and they can put the bond our first market and our secondary market and we will have a rating system to give to them that the level of insurance and interest rate they think is relevant according to what they promised. So that's the whole system is an open system. 

So it's not going to decide which token can be used as collateral. They can only decide for themselves. As for all the other, let's say competitors, they can choose their own list and they can find their own solution. 

Roy: Can NFT be added to the DeBond as well? 

Yu: Yeah, of course the NFT as well. So basically any digital assets can be used as collaterals and NFTs can be used as collaterals. And we have a system to fragment our NFT into a package or into fragment. So NFT can be collateral. But of course for our own financial product, only a listed NFT project will be considered. Of course, again, you can have your own photos and have all NFT listed on our whitelist. It's possible. 

How will DeBond impact the crypto space?
Roy: So Máté, from your point of view from a non technical standpoint, how do you see debond impacting the crypto space? 

Máté: Sure, my approach to the entire crypto sphere and decentralized finance is that it has a very important revolutionary message of financial freedom. And Yu, he doesn't like to talk about this because he thinks that this is way too much of a promise. But coming from this political economy and social science background that I have, I hold this for the most important message and the most important mission that DeFi has. And I believe that the bond has this aspect. It's taking deeply to the next level. 

And sometimes we say that this is the new standard for decentralized finance because I can back this up. In my perspective, the divergence point of view towards DeFi is that it looks very promising. It looks very technical and very lucrative at sometimes. But when I hear about the backlash like Luna and a lot of other instances when people lost a lot of money as a risk averse user, I noticed about myself, I am very afraid of investing into this sphere. And I myself have a little bit of money to put aside. And I'm thinking about investments and bonds. I have actually already invested into bonds in Hungary when I had a little bit of money that I have saved. So I know it's a pretty safe investment. The Hungarian government actually promises a little bit of premium on their own bonds. So I thought, well, this is good business. This is a good investment. 

And I wanted to do that. I did that. Debond is promising this in the DeFi space, which has not been available so far. There are these methodologies that I am just learning about. But at the same time, it's very difficult to understand how to actually get to that point when you are staking crypto assets. How do you get crypto in the first place? What is a wallet, et cetera, et cetera, and Debond is trying to simplify that process to begin with and to actually have that instrument have decentralized bonds on the blockchain. It's something new and it's something that is more trustworthy. 

So to shorten this very long explanation and answer that I've got in my point of view, it's bringing more stability and more trustworthiness into the sphere. And this is why I joined in the first place, because this is a mission that I can subscribe to. 

Investment Process for Retail Investors
Roy: So Yu, can you take us through the process of investing through Debond? Like, if I'm a retail investor, what is the process that I should follow and how would I learn about it? 

Yu: Yeah. So basically what our front end and our interface is just like the traditional different product. You can see that with this kind of token, you can get one month percentage of the interest rate. And you choose one product that should you, let's say risk profiles. And the interest rate is satisfying for you. So you choose that product and you can just purchase the bond with your token. And also after the transaction, you will receive a balance in your balance. 

Basically, the idea is that you place a bond like you give money to a central bank and you get a national bond and all that bond is specified at this date, you will receive this amount of money. So you can use this bond and wait, let's say one year or six months, two months, anytime you want the bond, you can redeem your bond and get the promised amount of token back. So that is the whole system. 

But let's say before the time of redemption, before the time of maturity, you want to sell your bond because you need money in very urgent circumstances. So what you can do is you can sell the bond on secondary market, and the secondary market is also decentralized and built by ourselves. So that is fully the new concept in DeFi, because earlier on LP token, which represents the collaterals you have in the pool, is not treatable because the data structure, again, as I said, is less competent. So using our new standard, you can literally trade your LP token, and the LP token have a secondary market to guarantee its value. 

So that's a lot of advantage of our protocols. You have also a speculative market on bond and on the secondary market. So that's basically why our bond can be more efficient. 

Investment Process for Institutional Investors
Roy: Got it. So this is obviously you're talking about a retail scenario, right? How is the process different for, let's say a business or an investment bank to look into investing Debond?

Yu: So most of the debt products they have, those institutional investors or big investors, there is a retail investor. They are investing in the same product and get the same reward with the same rules. So this is not good because the retail investors will be in some kind of disadvantage against those institutional investors because, like I said, they will receive the news first and they will withdraw their money and sell all the tokens they have. 

So in order to prevent it, the best way is to first build a pool with all kinds of collateral and then use this pool to create some kind of bond. So the bond represents the percentage you own in this pool. 

Using this system, you can have a tiered ranking system for the bond. There are prime bonds and subprime bonds. Prime bond, like I said, is safer. It's promised a fixed amount of return in interest. And of course, the interest rate is much lower. So the big institutions, they prefer safety, will purchase those bonds and keep it. And of course, the retail investors, most of them, they will prefer more risk and high reward, so they can purchase the lower rated bond, which is more about that system. 

Basically, the same pool will be separated in two. And one is for the institutional investors get what they want, and one is for the retail investors get what they want and the interest rate for both of two different choices that's modified by algorithm that ensures that liquidity has enough liquidity and can give most of the interest to the retail investor. That's basically the idea about the system. 

Regulatory Compliances in DeBond
Roy: Got it. Another question that comes to my mind is obviously in the financial industry, there are a lot of regulations and checks and balances that have been put in, right? So what is the regulatory implications of investing in Debond, can you throw some light on that?

Yu: Yeah. So like I always said, if there is a new technology, the legislation is always a little bit slightly behind than the real development of the technology. So what they can say is that our project is just like another DeFi project. It's just like UniSwap, PancakeSwap and whatever you can name it. Basically it's the same system. We are not pretending to be the issuer of bonds. So that's why the company is named DeBond. 

So the product we're issuing is just another cryptography based product and built with a string of numbers and it strikes like another kind of digital asset which is also a string of numbers. So basically that's why we said that the regulation issues will be less relevant for now because firstly the market is small and also of course we are not the last who let's say build the DeFi project and try to advance the process.

Comparable Projects in the DeFi Space
Roy: Got it. So as you said, there are other DeFi projects in this space. So what are some of the comparable solutions that you have seen in your experience which are resembling or similarly working towards the goal that you are working towards? 

Yu: So when I think about this question, there are two names that I know that will have some relevance in this area. So basically the first is OlympusDAO which is a protocol. They claim themselves as the issuer of bonds. So basically it's the same system because they are using the ERC-20 token standard. So the bond is not treatable and because of this there are no secondary market and they don't have a tiered system which means that everyone produces the same bond. So it's basically just like you lock your LP pool for certain, period. It's exactly the same thing. So what we can do better of course is all that secondary market and floating interest rate and care system.

And the second one I know is called SOAP Protocol. It's a Chinese based team who develop it and they are using some kind of system which called Financials. So basically it's an NFT token and on that NFT token you have some metadata and they say that with NFT and all those metadata you can get some kind of token at a later date. So it's kind of like a bond. But again it's not feasible in secondary market and the volatility of the bond is not insured by the system that we do. 

So basically that is the two most similar protocols that I know who built a similar product like our Debond. 

Roy: What is the future expansion plans of Debond, which are the other markets you are trying to target or is there any other product you're trying to come up with? 

Yu: Yeah. So basically I think if you want to build something, let's say that can change a system, you need to first do something yourself and make people look at you and see the result of your invention. So basically we firstly will be only working in defy without those default users and traditional defy institutions. Once we get enough user base, they will have enough resources and user base to discuss with those really important investors like Blackstone, like SoftBank, all those investors who we talked to before. But what they said is that they will only for a project that has much higher valuation. 

So what we can do is that we work with DeFi and build a user base first. And once we gather enough user base and enough valuation, we can really discuss with the top investment institution. So if one day they want to issue a bond, a part of those bond can be put onto our market and we can sell it on blockchain. 

And our common users, you and me will be able to purchase those bonds which is off limit in the earlier system, which is fully centralized. So that could be a good solution, because like I said, the device, I believe maybe it's not the future, but it will truly influence the existing economic system because the current one is not transparent and 2008 can happen again and again. So it's a research imperative that we need to find a solution. 

Establishing Transparency in the D/Bond Protocol
Roy: Absolutely. A lot of people have been asking this question that there is so much fraud in crypto. For example, a lot of people have been creating scams, rug pools. How do you convince the audience that you're targeting that this is a legitimate protocol? This is a legitimate asset they can invest in? 

Yu: Yeah, of course. I think the first thing people need to look at is if the product they want to invest has the auditing report. That's the most important part. And they can only trust those very important, let's say auditing companies and a lot of them. So the problem is there are some different projects get audited, but they can rug as well because most of the different projects they are aiming for make quick money. 

So what you want to see a different project is this project has some kind of technology which is innovative and they don't seem very big and they don't explain how they can make it happen. So a fraudulent project, they promise something huge, but they can't say how they are going to achieve it. 

The good ones, they say something small and important, but they have better solution which will be expressed in the right format. So you can just go look at the white paper. If you see only some kind of one word, some kind of like I said, we will give transparency and liberty for all. This is not a good project. If on the white paper you can find a lot of mathematical functions, formulas and lots of explanations, how this works in a logical sense, this will be a good project. 

And if you check all those successful projects with highest global usage, for example, they all follow the same part. So the technology is most important to define. If you bought the token of, let's say a normal or maybe less relevant project, you may earn money, but in your long term you will surely lost all your principal. So that I suggest is fine. The protocols will have a really strong background in technologies and also have some solutions already. It's not a promise you should not trust, a promise you should only trust what is certain and concrete. 

Roy: Absolutely. I think I went through your white paper personally, and even though I didn't get most of it, I'm not a math major, but I understood that actually there is a background to it. There is a thought behind it. There is a statistical inference and the significance to every calculation that has been made. 

Yu: Right. 

Roy: So I think it's a very interesting protocol, a very interesting project, and I would love to see how it pans out. 

The D/Bond Airdrop
Roy: So you do want to offer some kind of incentive for people who want to try out your platform? Is there some sort of program like that? 

Yu: Yes, for sure. Because firstly, we have AirDrop and we have a whitelisting and we have NFTs. So all those things will be only accessible at this stage by the people who are in our community. So we're starting our AirDrops and all those other NFTs. After we will receive our auditing report, we will be possibly receiving them in two weeks or three. So after this we'll announce the date of releasing of our protocols and also the listing of it. So that's why I think earlier you have some advantage and the AirDrop offers around $50 to $200 as returns and the NFTs, you have a huge discount in the meantime. So basically the whitelisting and the AirDrop will be offered to everyone will be participate in our activities of the communities. 

Roy: So where are you announcing this AirDrop Yu? Where can I go and sign up for it? 

Yu: So the AirDrop will be our own site and when it will start, we will announce it in our Telegram group and also on Twitter and all other social media. Of course, we will also publish some media release to announce this news. And of course we will be announcing that we will start our next round of fundraising and also when we will be the listing of our token. 

Roy: Great. And for people who want to check out that AirDrop, all the links are in the description, their website, their Twitter handle, everything in the description. You should definitely go and check that out. And I would personally want to invest in this platform. It seems like a really useful way of using my crypto, using my NFTs and maybe getting some stable returns out of it, especially in a very volatile world where cryptos like Terra Luna and all are crashing like anything. So I think it's a very right solution that we have in place and I'm really excited to check that out. 

Vision for the Crypto Industry
Roy: On that note, Yu can you tell us what is your vision for the crypto industry? Where do you actually see the crypto industry going? In general, what do you think? How should people structure out their investments? What do you think of all that? 

Yu: As everyone can see right now in crypto, the market is not doing well. So for most of the time when the market is not doing well, the financial products like bonds will provide safety and provide insurance will be more popular. So in that sense, bond will be a good solution if the market is not doing well. So I believe DeBond has a huge market in the future when the market is not bullish anymore. And that is basically the first vision of our protocols. 

And then of course after the user base and we have enough liquidity in our pool, we can really build the bridge between the traditional financial institutions and retail DeFi investors. And that will be a huge advantage for DeFi and it will be a very important step for DeFi. Without it, DeFi and traditional finance will always be a separate system and no recognition of both parties will be important. So that's why I believe that the future is some kind of a mixture of traditional finance and DeFi. This is the same solution for most of the DeFi companies and the traditional financial companies. 

Plans for Expansion in the DeFi Space
Roy: Máté, I would love to know your vision for the DeBond Protocol as well. What are the other areas that you have been exploring and how do you see Debond impacting those areas? 

Máté: Sure, Debond is looking into a lot of things. Well for now of course we are focusing on the airdrop and the NFT release, but shortly we have longer term projects and ideas for ourselves and the most important thing is that it's in the name. It's decentralized bonds. This is the main product. This is something that we really want to put on the table for people to use, but it's not the only thing that we are thinking about. A whole range of other products will be possible once we launch this protocol and it takes off. 

So we are planning to make available other financial instruments such as options, futures and forwards that are so technical financially that even myself have a hard time understanding them sometimes. But sure, this is our first project, the DeBond and then taking this further. And as you mentioned that we really want to be a bridge between traditional finance and decentralized finance. We don't think that one should replace the other or one is inherently more trustworthy than the other. 

Of course, DeFi has blockchain technology behind itself which is permissionless and more transparent. And we believe that this sphere has a lot to offer for the traditional financial sphere. So exactly as you put it, this would be a mixture of the two and we would shift the bond in two opposite ways. Actually. One thing is that we would make it more decentralized because right now we are pretty centralized working here in Paris as a team. I think this is necessary when you are developing a new project. It's very difficult to manage a team across the globe of independent developers and I think this is a good approach to work out the basics of the project in a centralized manner and then shift it towards a DAO but an opposite way is that it's not just a DAO but we would marry it to the traditional financial sphere, have more banks and traditional financial institutions come onto our platform and use it. 

I think it would be beneficial for traditional finance too and then that's ultimately what I believe is blockchain about because it would introduce much needed transparency towards today's financial infrastructure. That's ultimately what I think the Debond will be doing in the future but this will be a long, long journey for us, probably five or ten years from now. 

Closing Thoughts
Roy: Great and I would personally request everybody to go to debond.org, check out the white paper, check out the team. They are fully doxxed and I have a lot of personal belief in this project so I urge everybody in my audience to go and check that out. Link is again in the description.

On that note. Thank you so much. Thanks Yu and thanks, Máté, for joining us today and this was a great session. It was a very insightful and a very educational session for our viewers and our listeners. Thank you so much for elaborating your protocol and we wish you all the best for the success of your AirDrop. Thank you so much.




Yu Liu Profile Photo

Yu Liu

CEO of D/Bond

Yu Liu was born in China and lived in Canada before beginning his higher education in Paris, France. He studied social sciences, economics, and applied mathematics at the Sorbonne and Dauphine universities. In parallel to his studies, he had been pursuing his passion for finance and more particularly, for Decentralised Finance (DeFi).
In his view, many DeFi users — including himself — has been facing questionable interest rates, loss of principal, high transaction fees, and slippage. To tackle these, he created DeFi companies, most importantly and recently, D/Bond.

Mate Matyas Profile Photo

Mate Matyas

PR and Media Manager at D/Bond

Born and raised in Hungary, Máté studied International Relations and Public Administration in the US, UK, China, and his home country. He is a PhD candidate researching the political economy of the media. As such, issue of transparency and trust are driving forces in his professional activities. This is why he joined D/Bond as PR and Media Manager: he wants to be a part of the DeFi revolution transforming how money works — and unlocking financial freedom for all.