Podcast Summary
In this episode of the DeFi Sparks podcast, host Nick Drakon interviews Keone, CEO and co-founder of Monad, a project focused on creating a high-performance, EVM-compatible L1 blockchain. Monad aims to simplify app development and scale the EVM to millions of users by rebuilding the execution stack to enable parallel execution. The discussion also covers the relevance of high-frequency trading to blockchain technology, the challenges of scaling decentralized applications, and the importance of community support in crypto projects.
Key Takeaways
Monad’s Mission and Approach
- Monad’s Objective: Monad aims to simplify app development for developers and scale the Ethereum Virtual Machine (EVM) to millions of users. The project is building a high-performance, EVM-compatible L1 blockchain from scratch to fill a gap in the market.
- Parallel Execution: Monad is rebuilding the execution stack to enable parallel execution and other improvements, targeting 10,000 transactions per second. The concept of pipelining, which involves creating multiple stages of work and executing them in parallel, is central to Monad’s approach.
- Developer-Focused: Monad is presented as a developer platform with the goal of making it easier for developers to build applications that can scale to millions of users without worrying about transaction costs or gas fees.
High-Frequency Trading and Blockchain
- Relevance of HFT: Keone’s background at Jump Trading, where he worked on high-frequency trading systems, is highlighted as relevant experience for building a high-performance blockchain. The importance of precision and speed in trading translates to the goals of Monad.
- Market Feedback: The importance of constant market feedback in high-frequency trading, as losing money was a direct consequence of not being fast or precise enough, driving the team to stay at the cutting edge of latency and predictive power.
Challenges and Solutions for Scaling dApps
- Capital Inefficiency in DeFi: The current capital inefficiency in DeFi is discussed, with users facing significant slippage due to the spread of capital across a wide range of liquidity. Monad aims to address these inefficiencies by enabling market makers to update quotes with minimal costs.
- High-Fidelity DeFi: The necessity of high-fidelity decentralized finance (DeFi) to match centralized exchange experiences is emphasized. Monad’s core focus is on creating efficient financial primitives that can drive volume and user engagement through a positive feedback loop.
Monad’s Operational Aspects and Future Plans
- Testnet and Mainnet Launch: Monad plans to launch a testnet in early 2024, followed by a mainnet launch in mid-2024, with the intervening period dedicated to iterating and gathering feedback.
- Fundraising and Team Size: Monad recently raised $20 million in a fundraising round and currently has a team size of about 25 people, focusing on core engineering, community building, and supporting builders.
Community Support and Building in Crypto
- Community Values: The importance of strong community values in any project is emphasized, with Keone expressing gratitude for Monad’s vibrant and supportive community.
- Building Based on Belief: Keone advises other builders to focus on creating something they truly believe needs to be built, with the understanding that narratives in crypto change rapidly and can be built around the project later.
Sentiment Analysis
- Bullish: The sentiment in the podcast can be categorized as bullish, as the guest expresses optimism about Monad’s mission and approach to solving significant problems in the crypto space. The discussion about the relevance of high-frequency trading to blockchain technology, the potential of Monad’s high-performance system, and the importance of community support also contribute to the bullish sentiment.
- Neutral: There are also neutral sentiments expressed, particularly when discussing the challenges of scaling decentralized applications and the current capital inefficiency in DeFi. These discussions reflect a balanced view of the current state of the crypto space and the hurdles that need to be overcome.
