(Note: These notes go with the slides here: https://docs.google.com/presentation/d/18Prdq6g9vCk88UvDeDzJjbB1GQ7Mys-ajV54y1YG3WU/edit#slide=id.g22b13a3a611_0_182) ### Intro slides Founder of Li.Fi Philipp Zentner "Multi-Chain Liquidity Middleware" ### What's the Data saying? Assets <500 mn not touchable, compared to S&P 500 We only have 75 - 76 on crypto with that market cap [That's still over 35 billion] ZkEVM Multi chain thesis Value flows changing Gas price changes ### Wen TradFi Trad fi is not coming in to crypto due to speed of execution; market makers are used to treading at nanoseconds scale vs. seconds or even minutes Speed of excecution solved by: L2, L3, zk-tech [optimistic rollup is centralized] Liquidity Depth is Chicken Egg problem (this will come in from TradFi; possibly via trading pairs of ETH and BTC) MEV: Mempool-Innovation & Intent based systems MEV helps foster decentralization by encouraging ppl to host their own nodes Cowswap DEX aggregator - batched transactions, vs. intent-based systems Intent-based system synonymous with limit order But the system we use now is preference based: We use Uniswap Depending on if sophisticated market makers develop Will we see market makers adopt complex multi chain transactions Trading of real world assets Market will heavily fragment and head in these directions and DeFi will be very exciting Flashbots - most prominent MEV research organization (SUAVE - https://writings.flashbots.net/the-future-of-mev-is-suave/) ### App Infrastructure cycles What comes first? The app or the infrastructure to power that App? Broadcast internet happened before YouTube, but it failed due to lack of appropriately robust infrastructure Then infrastructure innovated and drove demand for YouTube Further example: When the light bulb was invented, there was no electrical grid Orderbook DEXs started, but failed TradFi wants an orderbook system Centralized backends are in demand again our API is so computationally heavy, it cannot be done on chain CI/CD and tooling as well as scaling is simply not there, so we need to live with a centralized API for now Eigenlayer: ETH changed from POW to POS So many server requests, we are positioned to survive this app-infrastructure cycle ### How about UX today? Oderbook/limit order: Cowswap, 1inch Many order book DEXes launching on L2s UX has changed a lot over the past two years(!) ### Account Abstraction EIP 4337 - CA is starting to replace EOAs https://eips.ethereum.org/EIPS/eip-4337 Users don't have to understand the blockchain anymore Security, Atomicity, Automations Ethereum is always catching up because they are behind due to how they make changes; others are now more ahead ### Bridge Ecosystem Snapshot 100s of bridges Liquidity fragmentation - locked capital across bridges, wrapped bridge assets Developer Overhead Single Point of Failure - access to two liquidity pools Bad User Experience See: Bridge routes community worksheet Trust assumptions need to be reduced AMBs raised so much money because they have the ability to be responsible for whole ecosystems and assets and the switching costs are so high, this drives up their valuations LayerZero and Axelars have very different trust assumptions Bridging NFTs creates secondary markets Interoperability Trilemma: Trustlessness Extensibility Generalizability ### Why Bridge Aggregation Connext and Hop are the most ethical Jumper.exchange will give you a bunch of routes Exhaustive risk framework toolkit in collaboration with ConsenSys ### LI.FI Security Standards (no notes, see slides) ### Why Aggregation Inherently Mitigates Bridge Risk (No notes; see slides)