Pros and cons of DeFi and CeFi

Transcript

foreign hello hi everyone well same time we're gonna be a very small group of people and we're going to talk about I hope it's not too boring for me this is things that we have been working with uh pretty much every day but feel free if you have any questions you want to ask and you can just interact so a quick introduction by myself my name is Victoria I am the VP of BD at bimar exchange so we are a centralized exchange and well today's topic I think a lot of people already know we're going to talk about something about D5 and C5 so before we jump into it a quick introduction about us we're a centralized exchange and overall we have

like 5 million users and majority of them is actually us um Europe we have roughly 20 and Asia we have also 40 so we have been growing really fast overall it's ranking in 12. and we do have multiple products available so but that is now the major thing we're going to discuss today um so first thing first I'm assuming a lot of people here as already participating in the web 3 for quite a bit so if you are in the space less than a year please raise your hand okay so okay if you have any questions feel free to interact so first say

what is the Defiance if I so the best description I would say for C5 is centralized finance and the best example will be Banks or all kind of financial Current financial institutions besides investment Banks hash funds pe's we're all consider this as a centralized finance and D5 is literally just come out because of blockchain Technologies and we can use the open source and to do the cross chain transactions and all of these were directly linked to the digital assets so BTC is and any uh and the other tokens and for the currency Vise we do see a lot of great opportunities and also some

problems um for the the pros I would say the user base is very large it's from web2 it's now it's not something new it happened existed for for many many years there's a large use case and it's a very mature systems so for example if I'm going to the bank I want to make a deposit or I want to wire money from my friend there's always people there so I don't have to go through all the hustles I know people will be there to support me if something happens something wrong and they also be there to help me to correct all the errors the risk is also very low because this is again this is not something new this existed for many many years so the customer service is also there but for D5

they basically cut off all the middlemans so the middleman's I wouldn't say bank is necessary but anyone in between if I want to make a transaction from me to my friend over here anyone in between will consider as a middleman's it's all get cut off because D5 and the interest rate is is oh no sorry for for the C5 the downside um there's our drawbacks and also there's a lot of middle missing between and the interest rate is low basically if you realize how much money you deposit into a bank and the interest rate you're earning every year is kinda equal to nothing so that is another thing people don't like C5 these days um also the processing time is longer

like I would say before like a way before if I want to do International Water transfers it's going to take at least five business days and for now because everything is mobile and it's just too much for us and uh even it's for like a demanding water transfers I don't know how long it takes in Europe but majorly in the US you will take at least one business day sometimes one two three business days it's it's quite long I would say and every time if a person wants to open a bank account they're going to do the credit check they want to see your whole profiles who you are if you have a criminal criminal background or you have any bankruptcy histories or your credit your credit credit score is low so it's not just the

banks if you for example you want to open a breakage account you want to do maybe buying some equities or Bond and they will require a lot of information credentials directly with yourself they want to make sure you have the credibilities where you have the capacities to to be able to interact all of this financial products and the last it's not accessible for a larger group people who doesn't have a bank account sometimes if work happens Nitro natural disaster happens people lost their IDs technically at that point there's no way I can prove I am myself so if I'm wondering that with any financial institutions it's kind of impossible they will always require your IDs your proof of address and something like this

so because of blockchains and uh we now have a new definition about D5 it's by by word is decentralized finance and what that means so we basically were using the blockchain technology to making the transactions faster and easier and sometimes you as an individual you can participate all of these lending protocols or D5 protocols so you have the Voting Rights you have the government right you can participate all the transactions or decisions they're trying to make and basically at this point the users are the custodians and uh like if somebody already set up account with the D5 protocols

um it's very instant you don't have to like put like your IDs over there your passport so there's no technical credit checks and the processing time is 24 7. I think that's the major thing um all the traditional Finance has been looking into blockchain these days because we no longer looking at the like a 924 the business hours or the stock market hours and they'll be able to process your transactions um 24 7 basically and it's way much faster so if I want to send the money from my wallet to your wallet I would say average to take a minute sometimes even faster sometimes it can take a longer if the if the traffic is too high on the own chain but normally this is happening instant and we basically cut

all the middlemans like it's a direct Advantage compared with C5 but the downside so because it's open source so there's no um it's not easy to use so if for example I want my maybe my mom or my grandparents want to open a D5 or interact with the wallet you have to go through all the hustles like you have to open your account you basically you set up a wallet address and you have to tell them you have to put some ease into the wallet so be able to do all of these transactions if without these basically your wallet is just a dumb wallet so from the like user perspectives it's not really user friendly for non-crypto like like basically level um level of their

role or like entry-level people who want to participate the education cost I would say is really is higher but once you go through this you understand how it works and it's easy and uh because this entire industry is still relatively new and I don't really see any like part particular or something trustworthy as an insurance company to be able to to be there even we I think majority of people here are using metamask even myself but I cannot guarantee like if something happened or something goes wrong I can find somebody to help me to retrieve the asset or they can help me to reset anything everything will be rely on me well this is the beauty of decentralized because there's

no middleman but at the same time you won't have the benefit of the centralized Services because there's no support when there's no customer services um at the same time so because of there's no all of these the risk is a little bit higher so what's the main difference compared to defy and C5 as we already mentioned a couple of pro and cons on both sectors you can see like there's a common ground for all of these we're trying to processing The Current financial any interactions being make it easier more convenient more accessible but at the same time like we cannot make it as simple as that much you still have to go

through different stages and to get what you really want like there are common um like especially with we always talk about the processing times we're talking about the kycs compliance we're talking about the risk all of these is still the major differences between the C5 and D5 it is going to be a forever problem I don't think so I already see a lot of protocols has improved so this is a typical centralized exchange protocol will look like you will see the older books you see the chart you basically and see what is on the death how much how much odor has been placed on the older books and you can see how your order get filled you can put Market order limit order whatever how you want

to do it so you can control your entire trade but for I think uni swap is still the well adapted that most people will use it this is how the interface for unit swap it's very simple like you just connect your wallet and you want to find the the token you want to swap and you just did it so there there have some improvement since unit swap existed day one we see they're starting to have more functions and uh more like towards to centralized services to be able to provide the product and service you will be able to get them like in the future I already see like some use cases they already adapt the older books I think that is one of the most important thing

for people want to use the apps to try to buying or selling anything you want to see the spread I don't want to buying something but also I'm paying I'm paying no transaction fee but I'm actually paying the spread which means you can't see how good the volatility it is so sometimes you're paying your overpaying so what we're thinking about the next of C5 and D5 well this is a very interesting topics we have been talking for almost a year like I'm sure a lot of people here has been saying like what is currently happening with centralized Services Finance us repo Celsius and all of this has been happened in the past so I won't

say this is impossible but it's actually possible so people starting to losing confidence about are we actually trusting all of these centralized Services they might just went down like what happened to FTX is basically the second largest exchange They just won off the ground for two days so it is going to keep happening we don't we don't know but however we see like people questioning about it's actually centralized Services is trustworthy and are we actually our asset gave it to somebody else is safe we've seen all of these questions has been rise but however it's a D5 is absolute Solutions

not today we're still expecting there's more functions and more features come out to be able to fill the gaps so from my perspectives well a little bit Background by myself I used to work for bankings um financial institutions back in 2015 for almost three years so we see all of these products in the past for us these are not new it just need to have time to improve and uh we are thinking like maybe in the nearly future we will have something hyper you will have all the benefits as you're using a centralized services but at the same time we can't just trust we can just like decentralize as much as possible but I can guarantee my asset is

safe and I'm now actually putting my tokens for nfts on somebody else's hand if something happens I'm still be able to have the full control so I think like this is what I'm hoping I hope like I hope this is actually going to happen like a high burning environment you will get the services but also you you gain all the benefits so yeah I mean that's pretty much what I want to talk about today I know it's a little bit boring and it's it's like almost a four in the 4 P.M on the first day anyone have any questions if you have a question please raise your hand I will give you microphone anything if no questions thank you very

much well I'm a surprise I'm actually making the presentation very clear very clear so [Laughter] [Music]