ALLEN：Welcome to the eleventh interview of B·Talk "Through Change". The AMA of this series of events was initiated by Bzone. I am Allen ，co-founder of Bzone，also is the host of this AMA event, and I am very fortunate to have Alex as a guest today.
欢迎来到B-Talk "穿越改变 "的第十一期访谈。这个系列活动的AMA由Bzone发起。我是Allen，是Bzone的联合创始人，也是本次AMA活动的主持人，今天非常有幸邀请到Alex做客。
ALLEN：Alex, Could you pls introduce Zild to all of us first?
Alex Nikolaev：ZILD.finance is a new DeFi protocol, for the decentralized financial operations, where anyone and everyone can lend their crypto and get a yield on it. Also our users can borrow cryptocurrencies without any centralized custodian.
ALEX Egorov：What's unique about our concept - is that we aim to provide the protocol, which will enable borrowing without collateral, using special reputation tokens, embedded in the protocol.
Alex Nikolaev：Also the architecture of our token is pretty specific: We have 3 main types of tokens in our ecosystem: X, Y and Z tokens.
Z - Zild tokens are the major project’s tokens. They are used for Yield farming — getting rewards for the provision of liquidity or borrowings.
Z - Zild代币是项目的主要代币。它们用于挖矿收益--通过提供流动资金或借款获得奖励。
Then there’s Y tokens — they are a kind of a bond or a promissory note - used for the record of transactions and they get burned after the transaction closes.
And finally there’s X tokens — it’s the reputation token. Inside the Defi ecosystem, you want to build your reputation, because it will allow you to borrow at a more favorable rate, reduce the collateral and get more rewards in Z-tokens.
So we are building the protocol for the provision of uncollateralized loans, with no central authority, globally - from anywheere in the world, with no discrimination!as we are saying inside our team: ZILD creates Yield for the generation Z!So in a nutshell - that's what ZILD is.
所以，我们正在建立协议是一种提供无抵押贷款，没有中心化的权利，没有歧视，在世界任何地方，我们站在 "代码即法律 "的原则上。正如我们在团队内部所说：ZILD为Z代创造收益！简而言之-这就是ZILD。
ALLEN：Thanks Alex to introduce ZILD.I want to ask a question temporarily，As we know ZILD launched in Hoo exchange at 15:00.So far, the price increase has maintained at $26 and the buying has been strong.First of all, I would like to express my congratulations.
ALLEN：Besides, I would like to know that except Uniswap as the first Dex , The Hoo is the first decentralized exchange.Why did you choose the Hoo ？
Alex Nikolaev：We have been considering several top exchanges for the listing. But one of the top priority criterion for us was the involvement in DeFi.
ALEX Egorov：we appreciate the hard work and efficiency of their management.
we share common values, and feel that they are a good global partner, which is well known, provides great service, and is building very robust product.Also, in Moscow the blockchain community follows Hoo, and values the projects which list their tokens on it.
ALLEN：Since the beginning of this year, DeFi has been under the spotlight in the crypto industry.
ALEX Egorov：Yes - finally the trend of DeFi takes off.
ALLEN：we know zild already launched on Uniswap.How do you think the pros and cons of DeFi projects like Compound、Uniswap?
ALEX Egorov: these two are top league!! since we've launched on UniSwap - we know it quite closely.
Alex Nikolaev：Uniswap - they are building the technology for the decentralized exchange.as you know ,They are doing a great job, they are one of the best, if not the best DEX out there.
They are famous for their good UI, it's a very rare thing in the current DeFi space.Pretty much everyone can start using UniSwap with their very uncluttered and simple interface.
They would be even more valuable if they could figure out how to produce synthetics from the fiat in a much easier way, than it is now, and how to attract into the Defi universe the people who don’t know anything about cryptocurrency, which is the other 95% of the market.
That would be pretty ambitious .We are looking forward to it!
Let me tell about Compound.It's one of my favourites! Compound provides for the decentralized deposits and loans.These two operations are a essence of the commercial banking.So that's why they are so successful - they are solving the problem that very many people have.
ALEX Egorov:Compound is a very high quality product, which is also confirmed by the fact that it was invested by CoinBase exchange and the smartest venture capital investors in the world, in by opinion, - “Andreessen Horowitz” VC firm.
Comp是一个非常高质量的产品，这也得到了以下事实的证实：Comp是由CoinBase交易所和世界上最顶尖的风险投资本投资的 ——“ Andreessen Horowitz”风险投资公司。
The thing that can make Compound even better - is if they solve how to make the under-collateralized loans, or even non-collateralized loans in the DeFi space.
Using the cryptocurrency as collateral should be replaces with more sophisticated and useful models that take into account, like in traditional banking - the status, assets and future cashflows of the borrowers.
This is what we are wrestling with in ZILD - and we aim to provide the tool for this to the global DeFi space.
ALLEN：ok thanks Alex to answer.As I have previously discussed with Alex,I know you are developing a DeFi ecosystem together with 24 other team members, so Alex, in your opinion, what it taks to make a DeFi product successful ?
Alex Nikolaev：Ha - that's pretty easy to answer.Like with any other project or business - the business is successful if is solves a real problem in the real world for a large number of people.Because in this way such project produces a lot of value, and part of this value the project can extract.Why DeFi is on such a rise now?Because it solves real problems!it helps to eliminate a lot of intermediaries and make huge numbers of different financial operations more efficient.basically, the good DeFi project would build infrastructure for solving the same problems that current commercial and investment banks are solving for us.
ALEX Egorov:I know it for a fact, because I worked in traditional banking and finance for more than 15 years.Maybe not everybody remembers, but Satoshi Nakamoto invented Bitcoin to solve the digital payments problem using the peer-to-peer networks,This innovation spurred the growth of very successful projects, which started to eliminate middlemen, reduce the counterparty risk and create infrastructure for decentralized finances.
ALLEN：Alex, as you are at the forefront of the DeFi field, in your opinion, What problems DeFi projects need to solve currently?
Alex Nikolaev:Good question, Allen, because quite a few problems and obstacles obviously prevent us from the more smooth and fast growth!
The main roadblocks that Defi projects are facing now, from the top of my list:first of all - the lack of interoperability between the blockchains.
We need to all the DeFi tools to work across all blockchains — public and private decentralized ledger ecosystems. Not how it is now — where Ethereum is taking 90% of all volumes.
The second largest problem is the compatibility of legal systems in different jurisdictions.Legal system is the infrastructure for doing business in the real world, which describe and determine relationships between the people and companies.
And we need to have connectors of legal systems, which define real-world business operations, with blockchain and crypto-assets operations.
I would say the third biggest on my list is code security,because the more money there is in a protocol, the more it’s prone to attacks and the higher the price of the mistake is.
DeFi, unfortunately is a very crime-prone area, which is a target for a lot of hackers from the entire world now, and it’s quite a big obstacle for development.
ALEX Egorov:And I would also add, one of biggest challenges, which I see - is the convenience of use - the UI and UX in Defi space are sometimes super complex, and we should work on that together. To improve the simplicity for the common users.
ALLEN：DeFi promises high interest but at the same time it involves high risks as well, what’s your view on this?
ALEX Egorov:Let me reply, as I spent hundreds of hours sitting on the risk committees of banks.Risk/return is the basics of investment decisions.why would there be a high return, if the risk is low?..
High return and low risk don't exist together for long — they right away gets balanced or arbitraged out by the market players.But only in one way - if the low risk is obvious for the big number of players.
So DeFi is bringing today an amazing opportunity for making money for those who are technically skilled and smart, because they can tell if the technology of one protocol is better than the other, if a project’s smart contract is good, or built in a strange way, or if a project promises a lot or looks like a scam.
for those tech-savvy players, DeFi poses a great value, because they can gage the risk and understand it, and the returns they can count on are much higher than in traditional finance
I think, the high returns in the DeFi space are absolutely justified for now.because of multiple different positive factors.
like, the speed of DeFi infrastructure develoment, networks effect, enabled through an increase in liquidity, also protocols reaching product-market fit, developers' tools, interoperability of blockchains and deeper application throughout the online ecosystem globally.
ALLEN：Currently most of the successful DeFi projects are about lending, do you think lending would be the major opportunity in DeFi? If not, what other opportunities?
Alex Nikolaev:You are completely right: many Defi projects today are about lending, and this is one of the problems that commercial banks are solving today for us.and, by the way, this is how these banks made billions of dollars。
but DeFi is taking these solutions a step further - it provides for easy and non-custodial deposits and loans, essentially, banking the unbanked.
ALEX Egorov:But the opportunities lie, first of all in the sphere of solving the problem of centralization of the exchanges.as we all know, almost all the financial transactions today need to go through centralized custodial service providers because of counterparty risk.
The institutions that provide centralized custodial services charge a custodial and transaction fee, and the fee can be up to 3-5% for OTC transactions - outrageous!also you need to trust that the centralized exchange will execute your exchange orders correctly, and then that they will honor your withdrawal requests.
So there's always a counterparty risk involved!!DeFi brought us non-custodial exchanges, where smart contracts - essentially, the programming code- hold assets from both parties in escrow.
也就是说，当你与某一方进行交易时，保证资产会被转移给对方，这种 "非托管交易 "的成本几乎为零。
One more exciting niche, where DeFi must prove to be very efficient is the financial derivatives space. The financial system needs decentralized fungible and smart derivatives! A lot of problems in the traditional financial system are occuring due to the fact that the risk of financial derivatives and different structured notes from different financial institutions are very hard to estimate - these securities are non-fungible.
And it hampers the liquidity of this whole traditional securities market, making the securities less attractive and more expensive.These derivatives are bound to be totally fungible and lacking the counteragent risk.
But basically, in building DeFi ecosystem, we are barely scratching the surface and everyone who is building the infrastructure for the decentralized money and finance are building a more efficient, equal and sucessful future.
ALLEN：ok，Thanks Alex， I also believe,the last question,Alex，Do you think DeFi is a Zero-sum Game? Do you think DeFi would boost the crypto industry?
Alex Nikolaev:I'm not a believer in Zero-Sum games if it relates to complex systems. And DeFi is not a Zero-sum game as well as he financial and economic systems are not.
We have talked about the efficiency of DeFi for solving important real-life problems, and the breakthrough technologies and sectors of economy attract extra funds and assets, by promising to produce a lot of value. At some point these technologies grow too fast and create inefficiencies, which get some investors to lose their money.that happened in the past with internet, social media, telecom, cryptocurrencies and pretty much every technology that we are using now.
DeFi technologies can eliminate inefficiencies in quite a few different finacial sectors, which we discussed today, and that what creates it's value.
I also want to point out, please don't forget that cryptocurrencies market cap today is only 300 billion.
To put you into the context, the Gold, as a commodity, alone is worth 3 trillion dollars.So, gold alone has 10 times higher market cap than all crypto created in the world by now.
At the same time there's an opinion and researches that predict that 10% of global gross domestic product may be generated on blockchain platforms in 5 to 10 years from now.And this is an equivalent of 8 trillion dollars per year.
ALLEN：I think so，For Defi, I believe it is only in its infancy, and it needs a long time to develop, but I believe that defi will become more efficient and convenient in the future.
So I am also very excited that I can meet defi in this era and look forward to the development of defi.