The Optimist Twitter Spaces with Infinex

In The Optimist’s Twitter Spaces which took place on February 7, 2024, Charlie hosted Kain.eth and Bilby from Infinex to discuss simplifying DeFi with Infinex, the evolution of Layer-2 networks, the dynamic landscape of the crypto market, and more! Read our notes below to learn more.

Background

Charlie (Host) – C0-Leader at The Optimist

Kain.eth (Guest) – Founder of Synthetix

Bilby (Guest) – Co-Founder of Infinex

Infinex – a self-custodial trading platform designed for mainstream adoption

DeFi UX, L2 Networks, and Crypto Market Dynamics

Bilby shares his background as a quant researcher in Melbourne and how he met Kain to discuss entrepreneurship, leading to him moving to Sydney to work for Kain’s family office. He mentions how they started working on Infinex in July, 2023.
Kain introduces himself as the founder of Synthetix and discusses his return to the crypto scene, assessing the state of DeFi. He explains the inception of Infinex as a solution to UX issues in DeFi, crediting Bilby for steering the project toward a decentralized model.
Charlie points out the challenges newcomers face due to the rapid technical advancements outpacing the development of user-friendly front-end experiences.
Kain recognizes that bear markets are times for building, noting that while significant technical infrastructure has been developed, the focus on UX has lagged. He shares that the community has improved in this bear market compared to previous ones but still faces challenges, especially in onboarding processes.
Bilby adds that the influx of funding in crypto allows for various experimental projects during bear markets. He highlights the importance of focusing on user experience from the start, using Synthetix and dYdX as examples.
Bilby says that despite better liquidity on AMMs, platforms with superior user experiences, like dYdX, achieve higher volumes, underscoring the underestimated value of good UX in driving adoption and success.
Charlie asks how the fragmentation across L2s affects users across the Ethereum ecosystem and whether these growing pains are necessary for long-term success. He asks how Kain’s L2 thesis has evolved over the past year or two.
Kain explains that the proliferation of L2s and appchains is likely to continue through the end of 2024. He mentions that while migrations across networks are challenging, dYdX has successfully managed it by abstracting away the network layer from users, similar to how web2 startups upgrade backend infrastructure without impacting the user experience.
Kain says that abstracting away the complexity of networks to simplify user access is key, and those who manage to do so will likely succeed in this cycle.

Infinex: Bridging UX Gap in Decentralized Exchanges

Bilby explains that their goal was to overcome UX barriers present in decentralized exchanges by replicating the user experience of centralized exchanges like Binance, without the complexities of moving assets or understanding wallets.
Bilby explains the solutions they found for key challenges: partnering with Lit protocol to create a trustless gateway between blockchain and web2 accounts, allowing for secure, multi-factor authentication on-chain, and working with Wormhole Labs for efficient message passing between blockchains.
Bilby describes how these technologies enable Infinex to offer a decentralized exchange experience that rivals centralized exchanges in terms of user experience, highlighting the importance of account abstraction and the avoidance of traditional security measures like seed phrases.
Bilby highlights the innovative approach of Infinex, utilizing cutting-edge protocols and technologies to create a seamless, decentralized trading platform that maintains the ease of use of centralized platforms, marking a significant advancement in the DeFi space.
Charlie expresses excitement about the potential for mass adoption through the platform being discussed, noting the complexity of DeFi for new users and the challenges of onboarding them.
Charlie says that the user experience on Infinex, asking if signing up requires only an email or a Web2 account, without the need for seed phrases, paying gas fees, or signing transactions, comparing it to the ease of using Coinbase.
Kain says the goal is to offer a Web2-like experience on Infinex, aiming to simplify the onboarding process to be as straightforward as joining services like Gmail or Facebook, without the complexity typical of crypto wallets and seed phrases.
Charlie asks how users onboard funds into Infinex, questioning the process for adding money to the app.
Bilby says that the process resembles that of Binance, where users select a network and token, generate an address, and send money to it, which then appears in their account after confirmation. A smart contract unique to the user controls this process. For fiat, they consider partnering with fiat providers for KYC and direct transfers to the DAO, highlighting it as a future development not yet confirmed.

Infinex: Progress, Integration, and User-Centric Innovation

Charlie asks about the current stage of Infinex’s launch, noting a tweet for further information and mentioning that it’s live on the mainnet with a small group of testers.
Kain describes the current phase as the “trough of Despair,” focusing on hardening the system before opening it to more users. He mentions ongoing audits and the importance of ensuring the system’s readiness, referencing governance points and incentives approved by the council to encourage activity.
Charlie asks about the integration capabilities of Infinex as an aggregator frontend, specifically with Synthetix V3 and the potential for backend integration with other protocols.
Kain explains that Infinex initially aimed to improve the frontend experience for Synthetix, targeting users hesitant about DeFi by offering a non-custodial, yet centralized exchange-like interface. He acknowledges that the project’s vision expanded significantly beyond just following Synthetix, thanks to contributions from Bilby and others.
Bilby says that while Synthetix remains a foundational element, Infinex has matured to pursue its path, focusing on creating a user-friendly experience without sacrificing self-custody. This involves deploying smart contracts for users that interface seamlessly with Synthetix V3, highlighting the unique capability of making DeFi accessible to the masses without requiring deep technical knowledge.
Bilby explains the concept of transforming Infinex into a decentralized equivalent of Binance by integrating various DeFi services directly into users’ accounts. This strategy aims to provide a competitive edge over traditional centralized exchanges by leveraging DeFi’s innovation speed and inclusivity of longer tail assets, positioning Infinex not just as a follower of DeFi trends but as a leader in onboarding and user experience in the DeFi ecosystem.
Kain highlights that traders are the most active and adaptable users, making them the primary target for introducing new features and assets. He discusses the potential for integrating social features and messaging protocols to enhance user engagement and network effects.
Kain mentions the advantages of leveraging existing research and development within the DeFi and broader crypto ecosystems, enabling easy integration of new functionalities and protocols.
Charlie acknowledges the benefits of building on the efforts of developers in DeFi, highlighting the mutual advantages for both developers and platforms.

Exploring Collaboration and Governance in DeFi

Charlie asks about the potential for collaboration with other teams and the adoption of their platform as a standard for DeFi applications.
Bilby says he is optimistic about their platform’s impact on user experience and the DeFi ecosystem once users interact with it, despite concerns about being perceived as a centralized exchange.
In discussing governance, Charlie mentions there’s no token or plan for one, with governance currently handled by $SNX holders and Synthetix governors.
Bilby explains their governance model, mentioning a council and a governance farming program that rewards users for proving their trading volume. He also introduces a Patron NFT system for raising capital, indicating possible future evolutions in governance.
Bilby says that it’s still early to get involved and not to worry, highlighting the platform’s plans for a revenue model involving small fees that contribute to a governance-controlled pool, with the strategy to buy and stake $SNX for a positive feedback loop in earnings.
Charlie finds the revenue model and plans to become a massive LP for Synthetix very smart and appreciates the innovative approach..
Bilby shares future plans for the platform, including opening up deposits for Infinex, managing a waitlist through a staking mechanism for $USDC deposits to earn governance points, and the upcoming launch plan to enhance the trading experience and user engagement.

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Show Information

Medium: Twitter (Audio)
Show: The Optimist Twitter Space
Show Title: Infinex <> The Optimist
Show Date: February 7, 2024