Podcast Summary
In this podcast, Kaledora Fontana Kiernan-Linn, co-founders of Ostium, discuss the convergence of macro and crypto markets, the shift towards new asset classes, and the role of decentralized finance. They also delve into the architecture of their platform, which aims to onboard real assets on-chain, and the challenges of sourcing high-quality data for their project.
Key Takeaways
Convergence of Macro and Crypto Markets
- Shift in Macro Paradigm: The markets have entered a new macro paradigm characterized by higher inflation and interest rates. This shift has led to a rotation of capital into new asset classes, including commodities like gold and oil.
- Geopolitical Risks: The increasing geopolitical risks and uncertainties have contributed to the interest in commodities.
Onboarding Real Assets On-Chain
- Perpetuals Listing Engine: Ostium’ platform is described as the perpetuals listing engine for real assets, focusing on a perpetuals-first approach to onboarding real assets on-chain.
- Centralized Off-Chain Holding Model: The team believes in the centralized off-chain holding model for real assets, similar to stable coins, where assets are held off-chain and an on-chain equivalent is minted.
Challenges of Onboarding Non-Crypto Assets
- Scalability Issues: The challenges of shoehorning non-crypto assets into a Perpetual DEX built for crypto-native assets were highlighted, including shortcomings and scalability issues.
- Previous Models: The DAI model and the mirror model, which have been tried in the past to onboard non-crypto assets on-chain, didn’t work at scale due to issues with over-collateralization, lack of leverage, and dislocations in price.
Accessing Low-Latency Pricing Data
- High Cost and Licensing Restrictions: The challenges of accessing low-latency pricing data include the high cost and complex licensing restrictions.
- Partnership with Chainlink: Ostium has partnered with Chainlink to overcome these challenges and create robust and stable pricing feeds.
Outlook for the Next Year
- Major Change in Onboarding Non-Digital Assets: The team anticipates a major change in how non-digital assets are brought on-chain and a shift in the narrative around RWAs.
- Tracking Macro Indicators: The importance of tracking macro indicators and the convergence of conversations about macro events and the crypto industry were emphasized.
Sentiment Analysis
- Bullish: The co-founders of Ostium express a bullish sentiment towards the potential of their platform to onboard real assets on-chain. They believe in the centralized off-chain holding model for real assets and anticipate a major change in how non-digital assets are brought on-chain.
- Neutral: While they are optimistic about the potential of their platform, they also acknowledge the challenges of shoehorning non-crypto assets into a Perpetual DEX built for crypto-native assets and the difficulties of accessing low-latency pricing data. This balanced view suggests a neutral sentiment towards the current state of the market.
