As a crypto enthusiast who’s seen the highs and lows – I stepped away from risky bets after wild DeFi summer of 2020, but never lost faith in the tech’s promise. To keep up with things, I tuned into the AltFunds Podcast. Ryan from Usher Labs joined hosts Mike and Tyler for a great talk on blending real-world data with blockchain. He shared his crypto journey and what we’re building at Usher Labs. Here are the highlights, with standout quotes that really hit home.
The Podcast
The Spark That Lit the Crypto Fire
Ryan started in 2017 as a casual investor and early meme fan. His big “aha” came from a bad bank experience. “I went to a bank branch and they charged me fees for doing a transfer that was like substantial and just the delays and headaches involved in that, and comparing that user experience to what you can do with stable coins.” It shows the clear win for crypto: quick, cheap transfers without the hassle. He spotted the divide between old banks and “totally sovereign capital management” in crypto. Now, adoption seems like a mix of big players and everyday users. “I guess now it’s like a balance of both, which is good.”
Usher Labs: Trusted Data for Web3
The talk zeroed in on our mission at Usher Labs: making Web3 safe with reliable data. Ryan put it plainly: “Usher Labs is ensuring that Web3 is secure with trusted data.” We use zkTLS to prove data comes from trusted sources like banks or exchanges, keeping things private. It’s like how websites grew from simple pages to smart apps. Blockchains are on the same path. Websites started plainly, then progressed to aesthetics and finally evolved into data-driven web applications. Smart contracts are fundamentally doing the same thing.
We partner with teams like Truflation for indexes, ChainSight for oracles, and Rooch Network for on-chain social tools. All backed by verifiable data.
Fiet Protocol: Unlocking Better Liquidity
Then came Fiet, Usher Labs’ upcoming protocol. It’s about fixing FX pain points using crypto rails. “Why can’t we use crypto rails for foreign exchange?” Ryan asked. The twist? Automated market makers (AMMs) only see locked liquidity, ignoring off-chain funds. Fiet bridges that, letting market makers tap bank or exchange balances. “An institutional market maker doesn’t have to pick between the APY they get on chain and the APY they get in the off-chain strategy, they can combine them.”
Unique insight: For local currencies like Colombian pesos, hold mostly USD to dodge inflation risks, then swap as needed. “Holding more dollar alleviates the risk of inflation associated to the peso.” No more 50-50 splits – just flexible rebalancing via OTC or banks. This could make DEXs more efficient and cut costs for listings.
For settlement risks, proofs limit promises, with upfront collateral as backup. Like lending wind-downs, but for day-to-day ops. “If in the case that a market maker fails to settle, another market maker or some guarantor can intervene.”.
Real-World Uses
Beyond prices, Ryan highlighted examples for zkTLS, and secure data flows:
- Indexes: Build them trust-free from central sources like oil prices or milk costs. No need to trust the middleman.
- Prediction Markets: Swap out committees for zk proofs from trusted sites like governments or credit firms. More accurate, less bias.
- Private Data: Pull from central exchanges or banks, hide personal bits, and only share what’s needed on-chain.
- RWAs: Use crypto to enforce rules, like proving bank balances. “These same compliance standards could be cryptographically enforced.” It eases DEX entry by tapping market makers, skipping retail setup.
A standout point: Pull from sources like Centralised Exchanges (CEXs), hide personal info, and share only what’s key on-chain. “Leverage private data and only fill what’s necessary on chain.” It’s all about better capital use – cutting costs and boosting results.
What’s ahead for crypto?
“Stablecoins become like the conduit for what CBDCs were. And Bitcoin in national reserves? Does every country hold Bitcoin? That’s another thing…”
This episode fired me up about data security pushing crypto forward. Ryan, Mike and Tyler did well making big ideas easy to grasp, showing how Usher Labs and The Tie build tools that count.
Curious to learn more?
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What’s your view on secure data in crypto, and the future of DeFi?
