Key takeaways
- DataMynt offers a stablecoin yield product with 5% APY and no fiat on-chain fees, targeting the 99% of non-crypto users unfamiliar with DeFi.
- The platform includes risk mitigation through insurance pools, internal risk assessments of protocols, and a three-phased insurance approach for new DeFi entrants.
- The BYOB native token provides insurance, incentives, airdrops, and staking features, though it is not required to receive yields on the platform.
- DataMynt aims to bridge traditional finance and DeFi by abstracting complex crypto and DeFi technology while offering familiar banking-like services and user experience.
- The stablecoin market is currently around $100 billion, and DataMynt targets expansion to approximately $100 trillion as adoption grows.
Building DeFi for the non-crypto 99%
Ashton Addison: Can you give us a high-level overview of DataMynt?▶ 00:25
Alex Christian: We started DataMynt about six months ago. The idea is to transition the 99% of people who don't use crypto, the non-crypto natives, to valuable and practical DeFi services using non-volatile digital assets. On one side, DataMynt is a stablecoin-focused DeFi project for the 99% who don't use crypto or DeFi, for a lot of good reasons. For them we abstract the crypto and the DeFi, and we offer fiat on and off ramps and an easy-to-use UX. On the other side, for the DeFi world, we're bridging the gap between traditional finance and DeFi, growing total value locked and market cap, ideally way beyond the billions and into the trillions.
Ashton: How are you putting the vision of banking-like services without the downsides of banking into action?▶ 01:41
Alex: There are a few key things we've picked up from the 99%, through research and past work. One is stable, non-volatile digital assets, which reduce price risk. Most people just don't have the stomach for the price swings of Bitcoin, Ethereum and the others. Second is abstracting the tech, the crypto and the DeFi. Do you need an engineering, finance or economics degree to use banking services? No, and we believe you shouldn't need one for DeFi and crypto either. We've also added fiat on and off ramps, some familiarity with the legacy financial services and UX the 99% are used to, and risk mitigation such as insurance.
Building the adoption bridges might not be sexy and it might be boring, but somebody's got to do it.
Where DataMynt stands apart, and why 5%
Ashton: What differentiates DataMynt from other DeFi and centralized platforms offering lending, staking and rewards?▶ 03:27
Alex: I'd argue that no platform I'm familiar with is really focused on the 99%. Other DeFi protocols and centralized exchanges that offer staking also offer Bitcoin and Ethereum, which we believe in too, but that isn't tailored specifically to the 99%. We don't offer an innovative blockchain function up front. What we offer is the bridge to grow DeFi TVL and liquidity for the entire DeFi universe. We kind of say around here, 'Building the adoption bridges might not be sexy and it might be boring, but somebody's got to do it.' The stablecoin market is around $100 billion right now. When DataMynt is finished, we aim for it to be about $100 trillion, and the same for DeFi market cap. Against legacy banking, US banks pay yield of up to 0.5% a year, bank credit cards can carry APRs over 20%, and there are arbitrary rules about how and when you can use your money. I think that's a clear-cut slam dunk.
Ashton: Why did you launch with a stablecoin product paying a 5% yield?▶ 06:13
Alex: Stablecoins just made sense. We're trying to show the 99% that crypto isn't all about price swings, and stablecoins have been hidden in the background. On the yield, we were initially going to offer around 10%, but the feedback we got was that anything much above six or seven percent looks scammy. It's just too good to be true. Going down to 5% also gives us room to offer other things. Initially there are no fiat or on-chain fees for users, and we're adding insurance options. In the US there's FDIC insurance on deposit accounts, and we want to mimic that in DeFi.
Managing risk and the role of the BYOB token
Ashton: How do you keep risk low for newcomers, given how risky some corners of DeFi are?▶ 07:50
Alex: We're doing a few things. A significant portion of the BYOB native token is allocated to a risk mitigation or insurance pool, and we have a three-phased approach to offering additional insurance. We also do internal risk assessments on which stablecoins to add to our staking mix and which protocols to use. There are plenty of yield sources out there, and plenty that haven't been audited, for example, which are perceived as higher risk and often higher return. We do our own risk assessment, with the whole idea of being as risk-free as we can.
Ashton: How integrated is the BYOB token? Is it required to earn yield or stake on the platform?▶ 09:34
Alex: It's not required. Some features will be ready at the public auction in a couple of months, and others are still being built. Insurance is ready to go, and incentives such as airdrops should begin probably next week. Staking is still being worked out, and we're looking closely at what other projects have done and what's been successful in motivating DeFi investors to join the BYOB train. In the midterm we'd want to add the token as another incentive to transact on the platform, for example giving a certain amount of BYOB for deposits. But it's more of an ecosystem and platform play than something aimed at the 99%.
Anything much above six or seven percent looks scammy. It's just too good to be true.
Launch status and what comes next
Ashton: Where does the platform and token stand right now?▶ 11:27
Alex: The DataMynt 5% product is live in private beta and in pre-launch. The fiat on and off ramps and abstracted fees are pretty much ready to go. On the BYOB token side, our first IDO, a kind of pre-sale, starts on Monday, July 12th, on Gnosis Auction. The smart contract audit has just completed, and we passed with flying colors. We'll post the results, and over the weekend we're pushing the token to mainnet. We're really getting ready to launch and extremely excited.
Ashton: Beyond the first product, what's on the roadmap?▶ 14:19
Alex: We're hard at work scoping that right now. It includes higher-yield products with additional risk, layer-two support to drive down fees, credit, mobile apps, staking, BYOB debit cards, and business solutions. We're in a proof of concept offering fee-free cross-border wage and payment solutions through stablecoins. Setting up wages and payroll across different countries and entities is extremely expensive, and it doesn't need to be. We think stablecoins and the platform are a great way to cut through that.
This interview has been edited for length and clarity. Recorded July 2021.
