‘Only Ethereum can be better than Ethereum’ | Interview with 1inch co-founder

for sure a lot of people think this scam and so on and so on it's a copy of ethereum whatever for us it's important that the people need it sergey koons is a co-founder and the ceo of one of the fastest rising dex aggregators in the d5 space one inch a dex aggregator is a financial protocol that sources liquidity from multiple decentralized exchanges to offer traders optimal prices by a single dashboard in the past year one inch's monthly trading volume rose from under 80 million dollars to nearly eight billion dollars as of february 2021. that's just one order of magnitude behind the monthly volume of decentralized exchange uniswap but the rise of one inch hasn't been without hiccups defy leaderboard d5 pulse refused to list one inch until recently due to a falling out between the respective founders scott lewis the founder of d5 pulse banned coons from his community citing threats of violence among other grievances the two have yet to make amends i gave him my hand and said like let's let's clear all the what they had and they just declined and that's fine for me join cointelegraph senior editor alex cohen and dive into the history drama and technological innovation behind the one-inch project in this exclusive coin telegraph interview so okay let me just start off with um asking you the first question of how exactly you got into crypto um at what point did it pique your interest and that what stage do you realize that you need to set a dex aggregator such as one inch hi alex so um first of all it's pleasure to to make this interview with you and uh yeah back uh back to to to the roots where we started uh with the one inch uh the um the initial idea was uh actually from anton uh who suggested uh to build on a hackathon on eth new york uh in 2019 um to to build a 1d app which would like list all the different uh exchanges and then you can just uh select one where you can swap for the for the best price um but i i had also the idea to to improve that uh by just splitting in small pieces the amount which you're going to swap and just exchange it on multiple sources at the same time uh to to reduce the price slippage because price slip which is is what was the biggest problem in the default space in the time and actually we built it for us yeah we antoine was swapping all the time and needed the best rate and uh i was playing around with uh arbitrage boards before that and yeah somehow it was really helpful for other people uh before not found out it after the hackathon and on the hackathon we didn't win any huge prizes on this small ens price 300 bucks i guess so i was able to pay for my um ticket for the airplane so yeah just actually starting yeah so how long did it take for you and your uh go founder anton to put everything together you said it was quite quick but how quick exactly because that's why one of the worries of people that are using d5 the things that just put together sort of slap together really quickly and then they get burned yeah look um iron we uh count already around 16 17 years of professional experience in software engineering architecture anton had much more uh experience in cryptocurrencies and algorithms and math yeah so and we actually built it over two nights and one day without any sleep uh i built most of the part was from my side on the on the front end so like td app and interaction with the user interface and anton wrote the algorithm and the smart contract so we put it together and just like without any sleep over two nights and one day we were able to deliver it yeah in a hackathon yeah for sure and uh so the the project really came to light with um the token like people really started talking about it after the distribution of the token on christmas eve um so and this i've read some interviews uh by you and your um colleagues that you don't see this token as an investment it should be really used as a utility but obviously like given the hype around d5 and everything it doesn't really matter what you would say the token should be useful people are going to still be speculating on it and eventually some may get hurt and burned by the losses um so what what do you think about this like did you expect some kind of a risk of sort of negative effects from the token when you decided to well not just release but actually start dropping it to different people yeah we got a lot of negative feedback uh from from the community from the people uh who bought at the beginning on the release day uh the token so actually the one inch foundation uh issued the token and started the distribution uh the idea behind the distribution to to make the token uh more decentralized yeah you don't see any financial value behind the token uh so one inch is equal one inch nothing else so and uh sure your actually we we didn't even start with economics which we uh planned uh with the whole team um the the the idea of one inch tokens in the first place right now to participate in the governance yeah so you have a kind of ticket with this ticket you get access to to uh change some settings in the protocol uh of course those people can also participate in discussions on on governance forum for example and make suggestions and so on and so on so we've seen articles that some uh users of the platform received absolutely humongous amounts of coins um others would just get the basic general low amount so i think one person got like nine million tokens if i'm not mistaken but it amounted to like 27 billion and um overall would you can you like sort of explain how much one inch holds for themselves uh and um going forward are there any other plans to drop any more tokens like you did just recently a few weeks ago so i have to say that this was not an air drop this was uh talking distribution so you as user you you got the right to claim this token yeah um decision was uh done by the foundation yeah i already said before to make it more decentralized so and um we had already two waves so the first wave was for those people who used before one each token and the second wave uh included also those people who used our experimental liquidity protocol which we released and in the summer last year i guess one guy got a lot of tokens because they provided a lot of liquidity in our liquidity protocol this is the point if you participate a lot in the protocol you you you can get more tokens yeah which can increase your voting power for example and later you get more options to do something with that so and this is actually not bad because yeah this this guy got five million i'm not sure i'm not sure how much it was um maybe five maybe less um but this guy uh uh communicate with us he suggests a lot he support us he introduced us to to other projects uh and so on and so on there's a lot of value of such people who uh are uh fighting for us from the beginning yeah how's the how are the gas prices affecting you currently uh as a platform so if you see that uh people still swapping yeah because they have to swap some people have a loans somewhere and they have to repay we have seen a lot of liquidations in last days so um yeah huge huge gas prices as i would say is bad for for the whole space we need a solution for that and we try to get in touch with the miners and suggest that should they should increase the block size but they somehow are really passive so and we hope to see the etherium 2.0 if we stick with this sort of scaling and the theorem point 2.0 are you do you intend to stick to ethereum or maybe you i'll look we'll be looking to sort of fix the issues that so plaguing the whole industry really right now um there was an announcement about um near integration uh quite recently uh but yeah overall what are your thoughts on this are you just going to stick it out and wait for ethereum to come through so first of all i have to say um something better uh compared to ethereum can be only ethereum so and we are uh waiting for freedom 2.0 uh but uh for sure we have to to to scale uh i would say it's horizontally um um we we announced already a collaboration with uh near protocol because we are like friends with them and anton was working for them i had also like a month or two working helping little bit them in 2019 so and anton wrote the rainbow bridge which allows us to move funds from ethereum to to near protocol and as soon if near protocol supports ethereum smart contracts and they are almost done with that how i know uh we will for sure deploy there and we will give you an option to switch in our user interface uh really easy to to this uh protocol we announced also a collaboration with uh tron uh for sure a lot of people think this scam and and so on and so on is a copy of ethereum whatever for us is important that the people need it yeah there are people who use it and we see also yeah dexes there on the platform yeah so and if you have taxes there we can aggregate i also wanted to ask you about your relationships with other uh dexers and text aggregators and just d5 projects out there so for example union swap would you say there was a rivalry between you and that platform even though you kind of use it to root the volume um through it and uh likewise um there was there was a there were also stories about d5 pulse um not too long ago any updates on that from your side yeah first of all about the d5 pools so yeah we had conflict we have still conflict with the founder of tifa pools and dexag because they just use our smart contracts without asking for that because it was on the computer right uh on the beginning when we started with one ish um protocol uh aggregation protocol and uh we wouldn't just just that they mention us in in this in the source code when they publish our pieces of code and yeah and there were some miscommunications with them and some bad jokes also from my side we but we try to keep to stay friends uh with uh most of most of the projects or with all the projects we differ like i i gave him my hand you know like to to to the uh founder of uh d5 pulse on eh denver last last year i gave you my hand said like uh let's let's uh clear all the what they had and they just declined and that's fine for me if they feel like that it's it's okay with other projects um maybe first of all about default booth they um they actually merged our pull request to to get us listed uh at least on the test test platform and maybe already on the mainnet so um yeah that's great but we needed uh pressure uh social pressure from so that's why we published this tweet because we tried first with emails and uh only social pressure helps so about about other projects like uni swap i would say we are we are friends uh friends but we are talking like once a year um for sure they have from my point of view a little bit fear uh because uh uh we we introduce our own liquidity protocol it's uh much more efficient than uh unison because we charge fixed also amount of fees okay um and just zoom now uh onto the d5 uh space in general uh what do you think will happen to d5 in 2021 and uh what do you think so about the negatives and the positives that the industry has developed up to this point will some of those get resolved or well some things can get improved on so what are your general thoughts on on this so i i see um i see a huge pain point right now is the gas price yeah nor it's not possible to import new people right now on ethereum because they have to pay a lot of money like 100 bucks for like 50 bucks for transaction 100 bucks for staking in the contract it's it's a huge amount we will see um solving these problems with layer two solutions um or improving this uh problem um improving this issue by uh seeing people moving to other change like bonus marching for example we will see uh 2021 um people moving to layer two uh solutions to just scale a little bit uh um optimistic roll up is going to really soon what i understood uh in a minute and uh for sure we will participate in this movement and we are waiting for ethereum 2.0 yeah however it said better than ethereum can be only ethereum so and uh we need we need uh to move fast yeah and yeah the the main pain point is the gas price i guess and it should be better with additional side chains or better for sure layer 2 with optimism for example or zika snarks so do you think adoption will come to d5 once the sort of the gas fee issue is taken care of not not only a gas fee is a problem also the the amount of transaction uh which can be um covered by by the miners or by um yeah by the nodes and uh when we have grid throughput and lower gas cost then we can build much better products with better user experience well i guess that's that's all i wanted to cover so yeah uh thank you very much for your time it's a great pleasure to talk to you great saying thank you else well it was a pleasure also to give this interview

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