AMA Session with Concordex CPO James Davies: Recap

On the 19th of September, Concordium hosted an enlightening AMA (Ask Me Anything) session with James Davies, the Chief Product Officer at Concordex, and Concordium Community Manager Milan Halas. AMA was structured in two segments: an initial Q&A led by Concordium Moderator Milan Halas and an interactive session where the audience could pose their questions.

The conversation covered various topics, diving deep into the intricacies of DeFi, liquidity challenges, and the innovative solutions Concordex and Concordium aim to bring to the market. Stay tuned for the key takeaways from this insightful discussion.

Key Takeaways:

• The influx of trading and derivatives experts into DeFi has been notable but often lacks focus on essential infrastructure. A diversified talent pool that understands trading and platform-building could significantly benefit DeFi’s future.
• Concordex is working to bring traditional financial tools to DeFi while preparing for regulatory scrutiny. The platform aims for comprehensive risk management and protection for vulnerable users, positioning itself as “regulatory ready.”
• Concordex is tackling DeFi liquidity challenges by focusing on capital-efficient AMMs, variable fee levels, and incentivizing market maker competition. Their identity layer adds an extra layer of security by requiring ID verification.
• Concordex acknowledges the role of “mercenary capital” in bootstrapping liquidity but aims for long-term value through multiple fee levels. This approach helps balance liquidity provision by adjusting to market conditions.
• Concordex offers single-sided liquidity to benefit new projects, allowing token holders to contribute without needing a paired asset. This feature is particularly useful in low-liquidity situations.
• Focused on UX, Concordex aims to simplify DeFi interactions for both newcomers and experienced users. The goal is seamless integration with other projects to improve the DeFi experience overall.
• Concordex is working on “killer apps” and partnerships to make DeFi accessible on mobile platforms. They aim to go beyond facilitating trades and add new functionalities through collaborations.
• Concordex plans to operate under Swiss regulations to navigate the complex landscape of DeFi derivatives, preparing proactively for future regulatory requirements. This strategy aims to appeal to both regulators and major financial players.
• Concordex plans to introduce futures and options trading, seeing this as a massive opportunity. They aim to offer capital-efficient and regulatory-compliant solutions, attracting more capital into the crypto space.

Q&A:

Milan: I guess we can start now. So, welcome everyone to the Concordex AMA session. We’re excited to have Concordex’s Chief Product Officer, James, here to discuss the regulated user-friendly innovations and the future of decentralized finance. So, to kick things off, James, maybe you can tell more about your background.

James: Absolutely. Thank you so much. It will be good to get a session going and talk about all of this. I will describe a little bit about some of my background and the things that I’ve done over the years. So when we get to the Q&A session, I’m thrilled to take questions on how different parts of that are built on different plans for Concordex and views on DeFi.

I have been trading since the very old days back in the ’90s, and my first job was on a traditional open outcry trading floor called Life. When we conducted a trade, we’d fill in a card, the cards would get passed, and someone would put those into a computer system at the end of the day to tally it all up and see where your positions were.

At that time, the market was just beginning to go electronic, and the big electronic exchange in Europe was the German one. I built a lot of high-frequency trading platforms and trading systems, which we sold all over the world from a small business. Eventually, we sold that business itself to a giant broker called Cantor Fitzgerald. I took a role as head of product at Cantor Fitzgerald in New York, part of the rebuild of that business touched all sorts of derivative asset classes.

I then spent about seven years in commodities, building a commodities business worldwide that was also sold. And then, finally, when I exited that one in 2017, I was headhunted into a job for a company that was going through its ICO at the time. And I was part of trying to put the regulatory status around that and turn it into a platform that could scale. And I’ve had a few other crypto businesses that I was part of doing some work in poker and on crypto payments platforms. And I’m now part of Tacans, where we build several projects. We’re passionate about DeFi. We think we’ve got excellent knowledge and great people all around the DeFi space, and Concordex felt like the natural thing where we could add value to Concordium and start to help build out its DeFi ecosystem. So that’s me. That’s my background. Also, development marketing loads and loads of stuff about derivatives, and they’re just a passion of mine.

Milan: Well, that’s a very, very broad background, to be honest.

And what I’ve bumped into myself personally is that a lot of people who’ve been working in the high-frequency trading space, especially working with derivatives and commodities, have ended up building something in DeFi. I especially like that starting from 2020, the influx has been real. So how have you seen that?

James: So it’s been exciting because someone sends me a deck from one of the investors or contacts across the different marketplaces every week or so. I’ve been noticing that many people who were on trading desks, whether those trading desks were individual proprietary trading groups trading for themselves or funds of some description or banks, have come in and tried to recreate the spaces they saw.

Financial markets are like an iceberg; the amount below the surface that makes everything else work and float correctly is enormous. I’ve seen that many people who’ve worked at the top of that have come in and tried to recreate it but have not done the infrastructure work to make it work well.

What I’m hoping we see over the next few years is people from a diversity of backgrounds who understand a lot of these infrastructure pieces coming into the space as well, giving some depth, giving some capability into these platforms so we can start to deliver value and attract money to come into these ecosystems.

Milan: So maybe if we move to the next question, and since this is an AMA about Concordex, could you explain Concordex’s vision for regulated DeFi? What should it look like? And why do you think DeFi should be regulated?

James: I love this. This is the most difficult question straight up at the beginning of this. So regulation and DeFI in the same sentence, OK, it’s really interesting. The focus on how regulation comes into crypto seems to be about anti-money laundering perspectives.

The point for us of DeFI is to start to create all the mechanisms and the mechanics that we would see across the rest of the traditional marketplace to allow these assets to become normalized and trade within this within DeFI, so a lot of the actions we want them to become commoditized. It’s really difficult for investors to back projects on the scale if they don’t have the same toolset that they see in the rest of the financial markets. So we see a lot of talk about putting a Web three spin on how these mechanisms should operate inside DeFi. But the truth is, the investors don’t care how we implement them. They care that they have these toolsets.

So if I’m an investor and want to invest in a project, and I see the team, and I think the team is fantastic, and I can see the ecosystem and that the ecosystem matches that project. But I know that the economics of that project will become tightly coupled to the ecosystem they’re in. If I don’t have a way to hedge that risk, to lay off one set of risks and bet on the ability of that team to outperform this system, then I can’t reasonably put a lot of money down for it.

It’s sometimes easier to think about this in the non-DeFi space. The margin of a supermarket is relatively tiny. It’s like two or 3%. The cost of their energy consumption, the energy bills to run are also in two or 3%. So if we get 50% volatility in a year on electricity prices, that can wipe out the profit margin of that supermarket. I don’t buy stocks in a supermarket because I’m betting that the electricity prices will fall and their margins will double. I expect the team within that to be good at running supermarkets. I want them to hedge their risk and the exposure they have to the electricity markets and price that is constantly changing and adjust their prices. So, as they don’t have the volatility of the energy markets hitting their prices significantly, that’s what they do. They go to futures markets and the European Federation of Energy traders, and they do this all day long. All across Europe and across the US.

We need the exact mechanisms within DeFi. People are not going to invest in a project when what they’re doing is buying a proxy for an ecosystem or a proxy for another coin. Because that’s not why those people are going and every deck you read. It’s about the team. It’s about their ability to deliver. We need these tools to be able to change that dynamic.

So here at Concordex, we want to try and push that forward. We want to try and push that narrative forward and bring those tools in. So this is about making sure that when we put these tools together and allow this mechanism for people to trade more complex financial instruments inside the DeFi space, we do it correctly.

The role of regulation in this space is to ensure that when people implement these mechanics, they do it in a way that protects vulnerable users. So regulation is about things like prudential control and risk management. It’s not there to restrict solely and say you can’t come in or come out without putting a high barrier.

Anti-money laundering often tends to be the focus of how we think about regulation. And I think this is probably the only ecosystem that we come across where we’ve already taken big steps down that path by integrating identity and by making sure that we are starting to prepare for anti-money laundering.

But here within Concordex, we’re considering this more in the round. We’re trying to say, OK, it’s not just anti-money laundering, but by being regulatory ready and having an expectation that regulation will come into this space means that we go through all of the mechanics and all the preparation to run in a high-quality manner with good potential prudential controls and good risk management built into our smart contracts and built into our mechanisms as we go forward.

Milan: Yeah, that’s a lot. There are many things to be packed into 1 answer, but I’m sure the audience understands now why exactly Concordex is aiming this way. So, thanks for that. So maybe next, you can elaborate on Concordium’s approach to regulatory compliance. And how does it benefit Concordex users?

James: So, I think the part that attracts me the most to Concordium is the identity layer. I think it’s the part that opens the conversations for many projects, and it’s the entry-level component for preventing fraudulent users. If I have to have an ID attached to what I’m doing to interact with a wallet, then I’m attaching an ID to what I would use as a hack vector. And it rapidly decays the value for hackers and fraudulent users to be able to manipulate aspects of the system because those behaviors continue to be illegal in crypto.

Milan: So next up, we will go deeper into DeFi-related questions. So, liquidity provision is a challenge in DeFi. How does Concordex address this issue, especially for non-professional market makers?

James: Well, so there’s no magic bullet to liquidity provision. I would undoubtedly say particularly for the non-professional market makers. The platform dynamics play an enormous role in the cost of providing liquidity. So, first up, we compare ourselves to Uniswap V2 platforms and the enormous number of those we see across different places. There is a vast difference in the value of a million on a straight AMM compared to a million in liquidity on a concentrated liquidity AMM. The impact here is on slippage. Slippage is everything. If this activity cannot attract users by creating value, they can trade against in a sensible price range. It’s not adding value.

So concentrated liquidity AMM DEXs are massively important in creating capital efficiency for non-professional market makers, ensuring that the small amount of tokens that they emit initially earns rewards, is active, and adds value that the second part of this is fee levels.

Now we can see even looking at some of the Uniswap stuff. You can see that they sort of baked in some of these abilities of Uniswap V3, where they had fees at different levels. And as they’ve started to go forward, they’ve caught us up on some parts of V4 where you can have multiple fee levels. So, I think this innovation was ours in Concordex.

However, it was around the focus of allowing the fee level from the LP to be set at the time of the contribution of the liquidity. This means that we determine and discover a market rate for the value of the LP at that point, and we drive competition among the market makers in the super liquid stuff. And we reward people at times when maybe volatility goes up, or liquidity disappears. They can adjust their LP to earn more fees. And they’re not disincentivized from providing LP because they get a better reward. And we don’t have this fracturing of pools where people aren’t sure which pool will be the right one to provide it on.

So there’s this big set of dynamics that platform part is super important to making this all operate correctly. The point of the LP, though the overall point of liquidity provision is to incentivize activity, activity drives the LP returns. Without that activity, the LP requires significant payment because people want to get rewarded for this, or at least a significant cost reduction.

So we see this when we start to engage the professional people who come in and bootstrap the liquidity for us. It can start to get expensive because, I mean, we all talk about the core options across many, many different entities. But it’s certainly expensive at scale regarding the ecosystem or the project’s ability to incentivize LPs to come in. This is where we see ourselves as part of an ecosystem, not just a stand-alone project to make it work.

The initial liquidity to bootstrap the first projects must be part of the ecosystem’s overall plans. So, we can provide tools and work closely with any new project in this ecosystem to build incentive plans with them to ensure that it operates, but we can only do that as part of an emerging ecosystem.

In short, this is challenging, but it works as part of a cohesive road map across the entire ecosystem where we’re all pushing together to hit a shared vision, even if these parts are independent.

So it’s challenging. It’s about coordination. It’s about teamwork. It’s about partners. It’s about getting all these different aspects right and driving that all through to ensure everybody sees value at every stage.

Milan: OK, thanks. It’s just a little bit of a question that would be related to this. In your opinion, when you think about mercenary capital, let’s say people just go to DeFi and look for the highest APY. They stay in the pool for a short time and then leave. So how does Concordex, for example, solve this issue?

James: That activity will be inevitable because there’s going to be a portion of the market that is searching for yield all the time and will move their liquidity from one place to another.

The important part is that those people are willing to take a risk against impermanent loss and movements by putting their liquidity into places that offer high APY. So they are part of that bootstrap.

The long-term value in a set of liquidity comes from the activity of people who need to do the swaps for the swaps’ sake. There are enough of them for the fee levels to get set against their activity and generate enough value, which is why our multiple fee levels where they said that the LP is so important in these sorts of emerging market spaces because they really can find the market rate for this.

We want those early providers who will come in and then maybe choose to leave us later because they will provide the liquidity that people will rely on through these initial periods. When we bring other projects in, they bootstrap onto this liquidity and use it to generate and add value to the system. So they’re a super important aspect of that.

Milan: OK, thanks for adding the answer to that. So, next up, let’s talk about single-sided liquidity. So single-sided liquidity positions may sound pretty intriguing when you put, instead of, like, making a pair and providing a pair of two tokens, you just provide one token to a pool. Can you walk us through how they work? And what are the advantages that they offer for liquidity providers?

James: Absolutely. So these are important. They’re an essential tool for new projects that want to list tokens.

I think this is a place where we don’t see some of the thought in some other ecosystems where when the Dexs come in, people will say, OK, we’re going to be the first DEX in this ecosystem, and they will look at Uniswap, and they’ll put a Uniswap like platform up and in place.

The dynamics in an emerging ecosystem when the projects are coming in, and there’s liquidity is still being going through the bootstrap phase are not ones where a straight Uniswap model, like a Uniswap V2 or V3, will enable efficient use of resources to be able to allow people to trade.

They need better tools that are appropriate for those moments, and this is one of them. So, we see with those projects that some hold only one token. But they want to contribute to the ecosystem anyway. So maybe they’ve got their own token. There’s a pool of it. We need a mechanism that allows them to come in with that one tool or one open and get this going.

What we have with single-sided liquidity is that they create an arranged order in the same conventional way that they would create a ranged order on the AMM. But rather than putting a pair of balanced tokens at the center and having the price they commit them to in the center of that range and then setting the limits around that, they put the one set of tokens in. They set the bottom and the top of the range, and we get the concentrated liquidity AMM curve across that range, swapping all of the tokens by the time the price gets to the top relatively. And that means they’ve created liquidity in that they can no longer accumulate more of that one token.

That’s not what’s going to happen. But as the market moves, they may swap one token to the other, and it will allow them to generate.

So, it’s a way in low liquidity environments to be a significant part of bootstrapping. And there are so many times in these markets that people will say, Oh, well, I’ll put one token. I don’t want to sell half of them to USDC to commit them to this pool. I’ll commit them in at this range. And if they start getting swapped to USDC because the price changes within my boundaries, then that’s brilliant. So it’s the tool to do that. And it’s crucial for ecosystems like this.

Milan: Yeah, single-sided liquidity is also, let’s say, to more, kind of for the people who are not as experienced in DeFi. It might also be more understandable in terms of, like, actually using the DeFi.

The next question would be about user experience. So, in my terms, user experience is crucial for DeFi. So, how does Concordex plan to ensure the team experience for newcomers and experienced users alike?

James: So UX is everything. You cannot build a platform without a good user experience. Yeah, I imagine because I’m talking to the inside team here. I’m sure everybody here has done this, but the process you have to go through to trade into DeFi or interact with the protocol to go and work across these ecosystems is non-trivial.

It can be a relatively complicated multi-step. I mean, This is the story of the Internet. You know this: this is 1997, before Amazon, before Google, when you could go on and find things, But you had to do a lot of leg work to put these things together and make it work. And everything was just a bit more cumbersome than it should be.

So we have done enormous work to simplify that journey, but we’re only a part of that. We need everybody else’s work to come into that because we can only solve the corner we’re in.

So, we will work as hard as we can to make sure that the UX is clean, that it’s as smooth as possible, and that it’s straightforward. But what we want to do is, as we see the other projects start to come into this ecosystem as we see, partners such as payment platforms and liquid staking or lending protocols. We want to do seamless integration with them. We want to be in a position where when somebody pops up onto a liquid staking platform and wants to do a swap, they can seamlessly come and use our smart contracts through the front end of that liquid staking entity or some plug-in that we will provide to them and be able to do it all in one place without having fragmentation of liquidity.

So, a project that wants to do steps and multiple things on one platform, such as liquid staking and swaps, should be able to integrate with us rather than having two different steps. So, the UX journey is far from complete. But it’s more about refinement, roadmap things we want to bring in, ensuring those operate well, and staying in front of partners as we roll through.

Milan: OK, so, how long should it take until we can do DeFi seamlessly, like on the phone with few tabs? And in your opinion, how many years does that work?

James: You know, this is about killer apps. So I think you already can. In some places, limited apps have relatively smooth workflows. For example, I have a bank account and connected my payments app to it. My payments app connects to this app. The app allows me to swap into there, and I can execute whatever I want to buy, sell, or invest and play with social media platforms.

Whatever it is, there are mechanisms for doing that, but they’re relatively narrow and limited for us as we see Concordium grow. This will be about how well we can work with the partners to ensure that all of the different mechanisms that come into these platforms can be enabled and supported by us from end to end.

So, as more and more money comes into the Concordium ecosystem, people look at these other platforms and say, Oh, great. I can use Concordex inside of this one as well, and it feels like it’s seamless. It feels like it should. But we need some of those killer projects to be able to lead it.

Dex is an absolutely essential, essential part of the ecosystem. And maybe for some participants, it’s even where they will spend most of their time. But it’s moving money around within the ecosystem. It’s not generating new value on it.

The derivative piece. I think we’ll come back to it in a minute, I’m sure, but that’s got interest where it might have value added to people outside the ecosystem, and they may come into it so that it may be part of that platform on its own.

But I’m looking forward to all of these other partners and platforms coming in and saying, OK, how do we make this UX experience? Perfect. How do we integrate with you guys? How do you make this smooth for us? How do we get up and going correctly?

And that’s what UX is going to be about for us.

Milan: I’m glad you mentioned derivatives in your answer as well. Next up, we can discuss that. Because the next question is precisely related to derivatives. So, routers are a pretty hot topic in DeFi, and it has created some waves recently when the CFTC issued orders against operators of 3 DeFi protocols for offering illegal digital asset derivative trading.

How does Concordex plan to integrate derivatives while ensuring regulatory compliance, transparency, and security?

James: It’s fascinating to see what’s been coming out of the CFTC and the regulatory side, and I worked entirely alongside some of the directors of the CFTC in the past, so I don’t know if it puts me in a good light, but I’ve had more than one drink with Gary over the years. Well, before he was anywhere near regulatory stuff.

But I know where they’re coming from with some of the different aspects of there’s multiple aspects about how we will address this, and I’ll talk directly about the people in those CFTC orders at the same time.

First of all, 100%, we’re not targeting the US. We’re not going to market there. I think it’s where there is extraterritoriality around their regulatory approaches. Their regulatory approaches are fragmented, often prohibitive, and challenging to work with, so we will not focus on that marketplace.

We will ensure we don’t break some CFTC rules about direct marketing. So, as we don’t get caught up in the requirement for their platform to be regulated, second is ours.

Our plans are Swiss-based, so all of our mechanisms are Swiss-based, and at the moment, we are compliant with all of the rules under FA and the Swiss. So we don’t we don’t require a regulation. We’ve got good quality lawyers who’ve been through our mechanisms and provided us with opinions to say that we don’t need regulation in the current environment.

One exciting aspect is that we recognize the Swiss regulatory mechanisms, and there are mechanisms around, particularly in the derivative markets, about mutual recognition between multiple different places.

So if we ever were regulated in the Swiss or meet those rules completely and are clear as long as we don’t break any onshore US rules, we should be protected from this US coming after us.

This is not true if you’re Cayman Islands-based, Seychelles-based, or Mauritius-based; pick a place and where many of these protocols are. They are not protected.

The rules set within those countries are not mutually recognized as equivalent by the US, and therefore, they actively go after entities that have sat in those locations to market into the US, hoping that they can keep some of the funds offshore.

However, with all that to one side, I’ve got an influential view that any successful crypto derivative system will attract regulation. So if we build out our derivatives platforms and it is successful and make that work well across multiple markets, regulation will be changed to capture us. It’s almost an automatic consequence of being successful.

So, this brings multiple mechanisms. Regulation is not primarily about anti-money laundering. That’s a significant and important step for people, and it certainly plays into payment platforms. But as we look at more complicated instruments, this is not just about AML. This is about prudential requirements, operating processes, and risk management.

Regulators want to see that the groups that are active in this space and dominating this space are operating appropriately. Interestingly, the mechanisms that we would need to comply with the regulators are the same ones we need if we want to attract major players in the financial marketplace to come into this marketplace. We do want to attract them because we want their capital. We want them to come in and invest in all of these projects so that we can change things. They will have a role in this, one way or another. The only way that they will have the role is when the regulation fits.

They will make the regulation fit us, so therefore, we will work to make sure that our mechanisms for delivering derivatives have the appropriate mechanisms within them, that when we see regulation comes down the line, it’s going to be satisfying it or very likely to be satisfying it because we will keep ourselves in line with the requirements that you need to do in the rest of the marketplace.

This should allow us a smooth transition. So I want to ensure that when people come in if we have set up the regulatory space in the right way and the corporate structures in the right way, that the DAO has control, that this is community-owned. But we have the right layers to inject the control mechanisms at the request of the DAO, to provide the regulators with the people they need to be able to talk to inject the control.

When this happens in Switzerland, it immediately opens the US for us because they’re harmonized. So, that will all be an exciting set of mechanics for building a big marketplace. So, I think derivatives are a massive, massive piece.

And, well, you know, this is an AMA. There’s no there’s no mystery. We talked about the questions beforehand to a degree. So I know you’ll ask me to continue in a minute.

Milan: That’s where we’re coming to. So, when looking at the Concordex Roadmap, what are you particularly excited about? Obviously, it’s going to be derivatives. So let’s talk more about that.

James: So I think it’s difficult to understand the size of the derivatives marketplace. The hundreds of trillions of dollars of derivatives that change hands annually are so enormous that when we’re talking about big numbers within the crypto space, we don’t often see how big these numbers are within the financial markets.

So I remember we were building some automation into a mechanism on one of the desks I was on back in 2004 because we had a client doing $6 billion clips of US Treasuries. He was high-frequency trading $6 billion clips of the high frequency of US Treasuries.

Now, he was trading the Treasury of the US, but it was still absolutely massive to see 6 billion go through repeatedly and again and again over the day, and it would go in and out as he just traded their treasury around.

It’s so big, and this just drove so much derivative activity. So what we want to do from a roadmap perspective is we want to bring futures and options trading on-chain. We don’t see any platforms out there that cover that today.

And that’s quite a trite response because 40 platforms say, here are some options trading, and there’s a tonne of stuff that causes cause itself futures trading. So why do I say that with that confidence?

First of all, let’s talk about perpetual. Perpetuals have gained huge traction because they’re relatively simple. If I look at the equivalent in financial markets CFD, they’re just nowhere near, and there are some contracts, and somebody cares to go and look at the US patent office.

They’ll find my name on some of those, but they are not having the right dynamics from a capital efficiency perspective. You can’t get the leverage with those that you can get with futures and options. You can’t get the variety of hedging mechanics that you can get.

We should be able to get 1000 to 1 leverage on sensible-size portfolios against the market risk. You will never do that with perpetual because your market risk would be through the roof. The perpetuals also don’t satisfy any of the regulatory requirements because the big perpetuals currently have these huge concentration risks around lending protocols. And these lending protocols push liquidity in for it, and we don’t know how they’ll operate under stressful environments. You can extrapolate from the mathematics, and it’s not very nice.

But there are many reasons why we should be worried about perpetual. And when I talk to professional market makers, they don’t go near them. So they’re interesting because what they’ve shown us is that there’s a massive appetite for derivatives and a considerable appetite for leverage and access to these mechanics, but they’re not the right solution.

So let me touch on one of the things. I find it interesting that if I go to one of the biggest platforms in the world if I go to Binance and buy an Ethereum future, I have to put some collateral up. And that’s absolutely right. I should put collateral up that that’s great. And even the collateral I put up is a sensible size on finance.

If I were to go then and sell a Bitcoin future against that, I would sell roughly the same value as the amount of theory futures I have. I have to put collateral up for that as well. I don’t get credit for the fact that my market risk has gone down because these two products are correlated now. They’re not 100% correlated, but they’re 80% correlated. Then, I should only push 20% of the market risk in that straightforward calculation.

It’s not quite like that. It’s more complicated as we start to look at more extensive sets. But this is why options haven’t succeeded because we’ve got all these different platforms. They have tried to launch options with these complicated little mechanisms for producing the margin needed on each one and how they offset them. And there’s a lot of front office guys building. Those never let a front office guy build the risk model is something I’ve heard said in the banks often.

If we get those mechanisms right, all we’ve got to do is follow the patterns that are well established, say, pick Deutsche Bos and copy Prisma or something. Then, we can start to get financial market levels of leverage, which takes us up at least two magnitudes of leverage over what we see out there at the moment, and that will start to unlock capital. It’s going to give people flexibility and hedging.

And from Concordium’s perspective, we’re not talking about just the hedging of Concordium tokens or ecosystem tokens. We’re talking about people using this ecosystem to hedge tokens elsewhere so that it could be Bitcoin. It could be Ethereum. Frankly, it could be anything that you can wrap up in an asset so we could take commodities and have commodities that are required to be delivered that have been issued and trade derivatives on them on this platform.

Now, there are regulatory requirements around that, but we’re going to go towards that direction anyway, So there’s all sorts of flexibility around this. Whenever I go, I talk to all the different people on an investor basis and attend conferences. I talk to everybody that I can talk about as we start to talk about leverage, we start to talk about risk control. We start to talk about access. This is what gets people excited.

And this, I think, is the sort of 1998 to 2001 step in the Internet. Getting these tools in place over the next year or two will be a big step forward, allowing innovation to come back into this space and draw more capital into it. So that’s why I’m super excited about it.

Outro

This AMA session served as a perfect platform to gauge the depth of understanding about the future of the DeFi landscape. It also provided valuable insights into the ambitious plans of Concordex and the broader Concordium ecosystem for shaping this emerging financial frontier.

For those interested in diving deeper and hearing the questions posed by the audience, the whole session is available for playback at the following link: AMA session here.

Don’t miss out on this comprehensive look into what could very well be the future of decentralized finance.

P.S. Find Concordex Here:

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