Debond Protocol

All right, we're live. So GM, GA, GE everybody. Welcome to what's going to be another great DevNTell. So if you didn't know, DevNTell is a 30-minute window for builders to showcase something they're passionate about or been working on in web3. This can be an awesome project you've been working on, demonstrating unit testing best practices, automation goodies, smart contracts, how to structure a project, etc. Basically if you've got a passion for something, this is your opportunity to share it with the web3 community. And today, I am ecstatic to be joined by Yu, Druv and Joey from D-Labs, who will be giving us an overview of their product, Debond Protocol. So maybe do we want to start with a brief introduction from each of you?

So I can present myself. I'm Yu from Debond and I'm one of the co-founders. I have a statistic background and I worked as a back-end in an insurance company before. So what we try to build is a on-chain settlement solutions. We describe it as an on-chain Swift system for financial products and we work closely with the institutions for the KYC solutions and so on.

GM everyone, it's Druv this side. So I work as developer relations and researcher in this space of DeFi. So I've been working with D-Labs since last one year, mostly helping out writing technical documentations, architecting the application based on tokenization solutions on-chain based upon use cases and also helping out clients for any queries and also on community side I lead the initiatives for D-Labs. Thank you.

Hello everyone, I'm Joey and I work with Yu for this new project D-Labs and we have been working on this on the most frontiers on-chain native KYC solutions and white-label marketplace. And it's been a great journey like to start working on this decentralized bound solution and with our on-chain verifiable credentials to on-board more trustworthy clients to join our this journey. And I will be very brief introduction here. Thank you.

Excellent. Thank you gang. Yeah, I guess Yu, you want to take it away with the presentation now. Go for it.

Yeah, so I can start with the presentation. So first I will have around 5 minutes to give a global picture about the solution we have and afterward I will going into depth some key features of our solution. So basically like everyone knows, the company called Desmo Labs and we call ourselves D-Labs as well. So basically we provide mainly two sets of solutions, one is what we call Debond and the second one is the Source.ID. So one it's for the tokenization of financial product and any kind of assets, the second one is for an on-chain KYC verification process which we try to simplify for the DeFi and institutional users.

So first we start with Debond. So basically the Debond it's a set of solutions that we developed that can allow all the users to convert any kind of financial asset into a token, so the process we call it tokenization. And we are using a new token standard called ERC-3475. It's like more advanced version of an NFT standard and we can use it for three purposes here. So we can use it to create first and secondary market for any kind of financial product. We can use it with the built-in KYC solutions to open chance to the users and brokers to find a better and simpler market to trade. And the first part is of course the tokenization part of all kind of financial good, products and sometimes even intellectual properties.

And here is some quick explanation why we need our token standard. So basically we considered the NFT standard and any existing token standard like ERC-20, they are like physical keyboard and it's a physical keyboard on a smartphone. So it's like a BlackBerry phone, the earlier version. So you have the keyboard which is perfectly designed for one use case, aka the application in the mobile phone. But if you change the mobile phone and if you change the application, what it will happen is that the keyboard is not functional anymore. It's not adaptable to any other use cases. So when we think about this and try to find a universal system for everyone, we think about a mobile phone with touchscreen. So a mobile phone with touchscreen means that actually the screen and the keyboard, the input and output units can be adapted to any use cases which the applications are designed for. So with this in mind, we developed our solutions.

And actually the solutions can solve most of the issues that we are facing both in DeFi and traditional finance. So the first one of course is in every kind of businesses, the difficult to build trust. And second one the KYC and AML compliance issues are very tiresome. And also there are authentic right and settlement, most of the time if you are talking about the house or if you are talking about intellectual properties it can be very costly. And finally we have the OTC trading that was not efficient when we trade, when we try to trade a non-standard financial product, a bond, derivatives and anything else. So basically the solutions are built to solve all the issues that we are facing right now with a trustless smart contract system, it's open and efficient in terms of the KYC. And third part is on-chain legal contract solutions that can be used for authentic right, which saves dramatically the time and financial costs needed related to the authentic right process. And finally Debond offer a white-label marketplace allow people to trade all the OTC product on a legal and transparent space, which means that the transactions are being more efficient and also the price are more, I mean you can find a better price range than any other OTC trading solutions.

So there are some explanation about maybe a demonstration of what the platform look like. So basically we provide is a set of white-label solutions along with our token standard. So like we said, we try to build an on-chain settlement system, it's a Swift system, not only for transaction but also for all kind of financial activities and financial product.

And finally we go to the pictures of our Source.ID solutions and native on-chain KYC solutions. And we have also an interface standard for the credentials claims. And for this, you can use the ERC-5851 as an interface to actually fetch the informations about claims on-chain. So with this solutions, for example, there are laws related to regulations like MiCA and SEC regulations, they will come into force around year 2025. So after 2025, if you are providing a DeFi application usage to residents based in United States or based in Europe, you will be conducting a kind of crime which similar to providing a financial services illegally, which is can be a very heavy charges. So basically they are looking for right now an on-chain KYC solutions that can be used to give only the access to the potential users who already passed the KYC process.

And what we need, we need it to be, we need to protect the privacy of the users. We need to know that if the users are clean to use the applications and so on. So basically we are building a KYC solutions which can be used on-chain for those kind of verification. And to implement this, it's very simple, it's several lines of code to implement the interface and with the interface actually you are connected to the KYC networks that can allows you to know exactly who, which kind of person are using your application without them reveal their real name and their real identity. So finally we have also a tool to manage your DID credentials and also the certificate issued by third party. So finally we explain a little bit how our business is functional. So we try to build a open system that all the financial product issued with our token standard and with all the users pass the same KYC process in the same format. So once we build this, actually we are building a network that can connect all kind of financial institutions and DeFi protocols together to form a very big network with all the index solutions available and also the very solid KYC solutions for most of them. So that's basically a global picture about our solutions.

And we can go into details about our tokenization solutions, our ERC-5851 solutions and about the certificate, aka on-chain credentials. So basically the idea is we try to build the whole solutions not only for DeFi companies, we can also use the solutions for web2 companies. So basically what we try to do, what we try to build is try to create a trustless and open ledger system for everyone who will need blockchain technology. So for us, blockchain means trustless, it means a high efficiencies. So we don't like the idea of very low efficient system on blockchain and we don't like the kind of anonymity on blockchain. So this may be a little bit against intuition or maybe against the concept about the blockchain technology, but we do think the KYC is a very big step in order for the blockchain technology to be recognized by the traditional institutions and traditional users. So right now I can give a very quick tour over our ERC-3475 solutions and our 5851 credential solutions.

So here is a presentations we prepared and actually I will share the link with you after the presentation. The idea about ERC-3475 it's a interface for tokenized obligation with abstract on-chain metadata storage. So why we say it's abstract on-chain metadata storage? So remember the mobile phone. If the data structures and parameters storage are defined, we regard as a physical keyboard which the spaces are defined so you have to put something inside otherwise the interface will not be functional. But when we talk about abstract storage, we created a virtual keyboard that can allow you to hide, show and display any kind of keys which we think will be needed for your application.

And here is some comparison with existing token solutions. So we regard, let's say if you work in Ledger, the wallet company, you will know that actually there are only two kinds of token standard, one is the ERC-20 based token standard and one is a 721 or NFT based token standard. So 721, 1155 and latest 3525, actually they are same kind of token standard with the same interface, same parameter settings and same storage. So applications that can read ERC-721 token can also read other kind of tokens in this categories. So what difference about 3475? So 3475 mostly it have two very important exchanges when comparing with existing solution. The first one is metadata. So we all know that the NFT token standard use off-chain metadata and they use a URL to link to the metadata. And when we talk about financial product actually it's a very dangerous process and most of the financial product they may need to change the interest rate and they may need to change something by the admin address. So if we are doing it off-chain with IPFS service, it would be impossible. So we are building a system that can allows all the metadata to be uploaded on-chain. And we have a gas efficient way to do so, and I will give a very quick introduction later.

And about the second part is the storage and like we introduced before, the existing token standards they have a defined storage space, it's like physical keyboard, but ERC-3475 has adaptable and virtual spaces which will be explained of course later. So here is who can use our 3475 standard? Typically those are the traditional institutions who cares about the complexities of a financial product. So if we talk about a bond, a stock, any kind of financial product, actually it's object defined by a list of parameters. And those list of parameters can define one object and if we switch to another object, the definition let's say the parameters of it may be different. So basically we need a solutions that can allow us to put all kind of parameters to define an object.

So here is the structures and we explain also how this can save gas fee. So we are talking about on-chain metadata storage to define an object. So here we have the over structures of our solution. We can use an example here. So let's say the class 0 means Homo sapiens, means human being. And the nonce 0 is me, nonce 1 is Joey and nonce 2 is Druv and nonce 3 as someone else. So the idea is that me and Joey and you guys, we share about more than 99% of the DNA which is exactly the same. So we put exactly the same DNA passage in the class 0. So by definition, if I am Homo sapiens, I should share exactly the same DNA, without it, I'm not a Homo sapiens anymore. So those part of the metadata, let's say the DNA, are being stored with a storage space let's say on the class 0. And each one of us, we may have something different. So I'm Asian and Druv an Indian, maybe you are with some ethnicities or maybe the sex are different. So all those will be defined by the differences of the metadata or the DNAs that we have one from each other.

So in this case, I can notice here in the metadata that my personal DNA metadata structure which is different from Joey, from Druv and from you. So with this standard actually you only write once the most commonly used metadata and you write everything else which is very, very small percentage of the difference in the nonce structure. So I can give example in the case of financial product. So let's say the class 0 means a treasury bond, mean a three years treasury bond. And if you purchase today, you will receive nonce 0. So you will mark a issuing date on the nonces. But if I want to receive the same bond tomorrow, I shouldn't be receiving exactly the same thing because the redemption period let's say the maturity will be different. But they share let's say 99% of the informations which is the same, who issued them, the ratings and everything, only difference is their interest rate and also the time for redemption. So basically we can use nonce 0 and nonce 1 to represent those and nonce 0 we only need to write one thing, it's the time of maturity and they don't need to write anything else. So the gas fees are perfectly let's say saved in these cases.

And finally we have some explanation about how we are actually achieve this, to put the metadata on-chain. We are creating a value structure, so it's like a box with four slots and each slots represent a type of variables. And we all know in most of the virtual machines it's important to define the variables before you can read it. So in our case, we define a value structure which is the same and put it into a chain. And we put the real values inside of the slots of the box. So if it's a string, we put into the string slot, if it's integer, we put integer slot. And by doing so, for example if I want to have a integer and a string and address to keep them in the same list, before our solutions it's impossible. So in our solution what we can do is we can define each value each box and tells users or smart contract how to get the value out. So basically through the type and description, we can know exactly which slot we need to open. So with this method we can build a virtual keyboard like we said.

And with this we can rendering any kind of data with solutions a little bit like Windows Explorer. So you can hide and show and you can filter all the metadata available for display. And finally you have the access control which is a build with the KYC solutions we have. And when we talk about KYC solutions, we have our credential solutions which we use a typical structure to define machine and human readable claims. So in the cases of DID claims are the informations that the claimers claim and want to those claims to be verified by the issuer. So that's is how the solutions is working. So in the case of a very simple adult, so I want to present myself as an adult but I don't want to you to know my name, I don't want to reveal any informations apart from I'm adult.

So in this case, I can have a credentials which says that my age with the integer is more than 18 years old. So I store those informations into a token, let's say a SBT. I put the SBT into my wallet. So basically I can that me myself everyone read the tokens, read the credentials will know that I'm more than 18 years old and people will give me access to their applications it can be adult website, it can be a DeFi protocols, it can be anything else. So by doing so, we can define the range of residencies. So I'm based in France, so I don't want to reveal myself being based in France. So I can say that I'm in European Union or Schengen countries. And we can use the within symbol to represent this. So those informations, those operators can both be read by a human and also smart contract. So that's basically we try to build a unified on-chain credential system for everyone, especially for DeFi protocols.

So when we talk about how to implement it, we have something we call the verifier. So it's a very simple function. So the in the case of Uniswap, if the Uniswap want to know if the users pass a certain KYC process, so he need to scan the wallet of that person to see if they possess certain kind of the SBT token. So we have a built-in modifier that will give access to certain applications, certain functions only to those who has certain claims. So by doing so, we can limit the access of the functions in a smart contract level and all those process didn't need to you didn't need to reveal all your personal data. You just finished the KYC process and provided you are more than 18 years old, you are EU citizen, you don't have any criminal records, you are not politically sensitive. And that's all the the things that application or the logics need to know. So basically I spent some time to represent our solutions.

And actually you can use the solution for a lot of use cases. Here in documentation, I have some use cases which is already available and you can just take a look and see the potentials of those solutions. So basically the tokenization solutions can be used for any kind of trading or tokenization process and when we talk about the Source.ID, it can be used for any kind of authentic right and KYC process. So that's basically everything important about our D-Labs solutions and I think the host will allow some questions to be asked and I'm available for answer all those question. Thank you.

Excellent, Yu. Yes, thank you very much for that very in-depth thorough overview of all the the solutions you all offer. So if I understand correctly, these interfaces that you've built as smart contracts, they aren't just limited to the traditional stock market and derivative applications, people can actually use them for for other applications, correct?

Yes, yes. So basically there have some examples here to explain what the tokenization solutions can be used, it can be used for OTC tradable derivatives, it can be used for commodities, carbon token carbon credit and it can also be used in intellectual properties and also can be used for immobile properties, like houses, lands, so on.

Excellent. There is a question from local ghost. They're asking, how does how is this better or how does it compare from Everest and Litentry?

Sorry, what is what is Litentry? I am not I have not heard of it either. But I guess how does how does your solution compare to other solutions on the on the market?

Yeah, of course. So basically like I mentioned before the existing solutions mostly they are using two kind of token, they use NFT token to store information, to store metadata and they use ERC-20 token to represent the let's say the shares or the numbers of possession. So in our case I explained about the difficulties of NFT token and we compared it with keyboard, physical keyboard on an old version of the smartphone. And in this example we did some comparison. So all the solutions you know, they are using one or a combination of those token standard apart from ours. So with our token standard actually like I mentioned before two things are very different: on-chain metadata storage which is essential for let's say financial product and without this actually we can't even pass through the process of the KYC and we can't registered as a financial product if we can't pass through the on-chain metadata thing. And finally it's the storage space, like I mentioned, if you are using a NFT token standard, your token will never be used for most of the use cases that people needed. So if we are using NFT, if you try to create a financial product on an NFT, because the most commonly used metadata slot let's say for NFT is a picture. So most of the applications can only show the picture of an NFT. So what will happen is if you are using the NFT solutions for the tokenization of financial product, let's say a bond, you need to put everything as a picture what we call dynamic picture. You put all the information into picture and on most of the applications the picture is very small and you can't render data, you can't filter data, you can't display them in a right way, you can't choose to hide and show, you can't see the redemption period. So all the metadata shortage will be impossible. So that's why the our solution all say this kind of solution can be better used in most of the cases compare with the solutions based on ERC-20 and ERC-721.

Gotcha, gotcha. Maybe just to add the point, I just checked out the solution shared in the question. So that is a very specific blockchain-based solution providing identity solution and other stuff, but in identity account and blockchain on a single platform, but in our case it's agnostic to any entity who wants to recognize our issued ID, it can do that. So it's able to allow one-time issuance but it can be agnostic to any platform. So it provides that's why it's much more flexible and yeah, it's unique issuance, our standard allows a unique issuance. So that's what I wanted to add.

So basically I think what we try to do in terms of the KYC is like say the KYC have three parties and three process: you have the claimers, you have the issuers and verifiers. So most of the protocols they are try to solve is the issuer process, they are the issuer, they consider as the issuer and they don't consider anything else. So for us, we consider the relationship between three parties and what we try to do is we try to provide tools for the gold diggers, they want to dig gold, let's say the the KYC solutions is Holy Grail. What the tools we provide actually can link every parties together in a most efficient way. So you don't need to scan QR code, you don't need to download PDF file, you don't need tiresome process to manage your DID credentials, you don't need to find a person to give you credentials and don't need you don't need to find a ways to link your credentials with your ID. So all those things are managed by our solutions. And if you are DeFi protocol builders, you don't need to consider how to build a KYC solutions, you just import our receiver interface, verifier interface, sorry, you import the verifier interface and you give a list of credentials you recognize and the the claims you ask, then anything else is not important, you just you need around only 30 minutes to implement a very functional KYC solutions without any fee, without any support needed. So those are the strong point of our solution. So we are not try to build a I mean we are not try to become a group with the perfect KYC solutions, what we try to do is allow all the KYC providers and all the users to be better connected.

So let's say if the company we are talking about right now, it's a Consensus in our case the wallet and the KYC solutions will provided is MetaMask. So before MetaMask, if you want to integrate some DID, if you want to do some exchanges you need very tiresome process. So basically we solve those tiresome process and indexing all the KYC provider to the wallet and the wallet is not only serve for us, it's not only for one protocol, it's not only for one KYC provider, actually it can be used for all the KYC providers, all the issuers and all the verifiers if they implement our interface.

Awesome. Yeah that sounds all very fantastic and ease of life for many many developers who want to have a easy way to to do KYC. So I see we are at time. Last question, how or what is the best way for people to follow the goings on of D-Labs and Debond Protocol and all your other solutions?

So basically we try to create a community and the idea is that we will produce time to time some educational materials on our website, sometimes it can be very brief introduction in the form of an animation, sometimes can be a very in-depth explanation of the usage of our standard, and sometimes can be a long documentation on how to use our solution. I think the best if you can join our Discord channel and follow our Twitter account and we will be announcing the rebranding of our Desmo Labs and afterward we will be I mean publishing time to time some materials and we will host some competitions for people who are interested in our technology. So the best way is follow our website and also we try to get more channel to have those educational material to be published or released to cover most of the audience possible.

Awesome. Sounds fantastic. And I guess now since we're at the end here, just want to wish everybody a very happy Friday, happy weekend. Thank you Yu, Druv, Joey for coming on the show. And just want to leave the crowd here with one final statement around our fundraising operators. So did you know that Developer DAO's fundraising operators Chuck and Wickist are here to help you fundraise your projects? In their fundraising hub on Discord server, you can find support in running your grant applications, learning about fundraising, budgeting, pitching and how they can introduce you to grant leads from different protocols. So be sure to drop by their office hours which are twice week or schedule a one-on-one with them. And if you'd like to learn more, please check out the Notion document that I'm going to post in the chat here. And I will also post a link for you all to claim POAPs for attending today. And Yu, Joey, Druv, I will send you a link for your special Kudos for coming on as speakers today. My pleasure. And with that, we'll see you all here next week. Cheers all. Bye-bye.

Thank you. I'm sending the website as well. So see you soon.