Our CPO Alex Ryvkin headed an AMA on the Avalanche Telegram channel. The transcript can be found here
Last week, our partners at Avalanche hosted an ask-me-anything (AMA) session on the main Avalanche Telegram Channel.
Leading the event was our Head of Product, Alex Ryvkin, to answer the top 10 questions submitted on Twitter, which ranged from Copper’s recent partnership Avalanche, to Alex’s thoughts on current industry trends.
Thank you to everyone who submitted their questions and joined the AMA. In case you missed it, you can find the transcript below.
Alex: Great one. They (institutions) definitely do. Institutions are typically very pragmatic – they go where risk/return equation is optimal. As BTC domination grows, they start looking for pockets of value in other assets and transactions. Among other things, since DeFi Summer of 2020 we see a lot of interest in DeFi tokens from some of the most reputable institutions in space. We see this continuing into 2021 and beyond.
Alex: Thanks. So for those who don’t know, ClearLoop is our clearing solution enabling off-exchange trading and settlement of digital assets. That is, the assets remain in Copper’s custody, so the investors don’t take credit risk on the exchange, and don’t have to wait to see their assets moved from one exchange to the next, that happens pretty much instantly.
We already have some pretty solid destination exchanges on ClearLoop, and planning to add three more tier1s in the upcoming months.
As to AVAX support, we do see a lot of interest from our exchange partners. Blockchain is still a relatively small space, and couple of major names supporting a given project creates some substantial ripple effects.
Alex: Sure. We saw a lot of questions of this kind in our Twitter last night, would love to address them all. Essentially, my view is that we are approaching the problem with a wrong angle. Blockchain is still a relatively small space when compared to traditional finance or broader economy. As we grow, there is definitely enough space for more than 1 blockchain to rule them all kind of situation. If you compare ETH, AVAX and DOT, you could envisage completely different use cases going forward, and interoperability is likely to benefit all three, rather than make of them a ‘killer’ of the others.
Alex: Certainly. As above, crypto is a relatively small space, and among other things everyone is looking at what everyone else is doing. We do hope that our partnership with AVAX, along with a number of other backers and partners, will send the right signal to the exchanges and other necessary pieces of infrastructure to provide necessary support.
Alex: That’s one of my favourite discussion topics. True story, today a solid majority of investors is focused on short-term speculative gains. Perhaps that’s one of the reasons why BTC, with a much lower utility than the likes of AVAX, is so vastly more popular. If I had to bet my money, I’d say in the long run utility will win, and BTC would be taken over by the networks that allow higher utility. Although, please don’t hold me to any timelines. 🙂
Alex: Well, we’ve been around, and foundations know and trust us :). We are talking to a lot of new and well established networks, who know us as one of the providers that can provide secure custody and other services to themselves and their partners. We are always happy to entertain a discussion!
Alex: Great question! By definition, DeFi smart contracts expect assets to be sent to them, so we have different mechanisms that allow our institutional clients to safely interact with DeFi protocols. We are talking to a number of top DeFi protocols re the ways to change that in future, and in the meantime we have Copper Connect, a product designed specifially for that purpose. Talk to us if you are interested.
Alex: Nice! I touched on that briefly above. We do believe that ultimately networks for builders such as AVAX will take over pure trading or storage networks. Hope that happens before 10 years!
Alex: This looks like a 3 in 1 question! Ok, so first of all, yes, as any industry evolves you typically see that competitive advantages move from just doing one thing well to offering more utility and features. So yes, we are very much looking to allow staking and yield farming for our custodial clients. Stay tuned for announcements!
Regarding insurance on blockchain, that’s a whole separate subject. I believe that what we currently need is non-blockchain insurers to provide enough capacity for blockchain firms and investors. Mutual insurance of a type available on blockchain is an interesting, but perhaps a less critical piece of infrastructure today.
Alex: Great. So Copper offers MPC-based custody to holders of AVAX, which is currently believed to be the leading technology solution in crypto custody space. Copper’s clients may be certain their AVAX is safe as it can be. Now regarding the volatility – this is unfortunately not up to us or even the AVA Labs team… We all invest in crypto at our own risk! 🙂