EP - 1

Paraswap: How to make Defi easy & safe? w/ Mounir Benchemled

with

Mounir Benchemled

Jun 15, 2021

EPISODE – 1

How to make DeFi easy & safe?

with Mounir Benchemled (Founder @ ParaSwap) & Fabrice Dautry (Head of Coin Integration @ Ledger)

Crypto & web3 often come across as a complex landscape, with new coins, layers, and possibilities emerging daily.

To simplify this for users, Ledger launched its “On The Ledger” podcast, designed to offer “clear explanations, inspiring conversations and exclusive insights” into Web3 and cryptocurrencies.

This inaugural episode features Mounir Benchemled, founder of ParaSwap, and Fabrice Dautry, Ledger’s Head of Coin Integration, as they delve into the critical topic of making decentralized finance (DeFi) both easy and secure.

“A DEX is fundamentally an exchange that is non-custodial which means the users still control their funds and the exchange is simply a software that will facilitate the exchange of value”. – Mounir Benchemled

Key Highlights:

Demystifying Decentralized Exchanges (DEXs) and ParaSwap’s Aggregator Model

ParaSwap distinguishes itself as a decentralized exchange aggregator, which Benchemled describes as being like an expedia or booking.com.

“What you’re looking for is getting the price that is better than the market when using an aggregator like browser”. – Mounir Benchemled

ParaSwap searches dozens of markets to secure the best deals, optimizing trades by even combining liquidity from multiple exchanges.

Ledger’s Platformization Strategy and Enhanced Security

Fabrice Dautry outlines Ledger’s evolving integration strategy, moving from basic hardware wallet support and Ledger Live blockchain support to adding services or new features on top of these blockchain supports.

The ParaSwap integration is a great example of this shift,

“[The Paraswap integration] provides a more fluid seamless and secure experience and unlock more defy possibilities for ledger users”. – Fabrice Dautry

This partnership significantly reduces user friction, as users won’t need to leave their mobile wallet their ledger life and will be automatically logged in.

Critically, the integration enhances security by ensuring users “will verify what they are doing… when you trade ethereum for USDC you will be able to check on your Ledger Secure Screen (or Secure Touchscreen) what you’re actually doing.

The Path to DeFi Mass Adoption

While current growth is often driven by incentives, Mounir Benchemled believes users will ultimately stay for the value add of DeFi which is access to finance which is transparency and security.

Key drivers for this adoption include integrations like Ledger’s that simplify access and, crucially, scaling solutions that are happening right now that are launching that will remove a lot of friction and rather few x challenges like why would someone know has to know about gas to use a fintech application they just need to push a button and get things done.

Number One Fear: Security in Unregulated Markets

“If someone loses their crypto (for any reason) they are just lost and there is no way to recover them.” – Mounir Benchemled

He stresses the fundamental principle: “your keys, your crypto“.

Key Predictions for the Future of Crypto:

Mounir Benchemled

- Scaling solutions is what will make crypto mainstream. He envisions transactions that are immediate and with very low fees, just like TradFi.

- ParaSwap will evolve into a “connective tissue” that facilitates those complex transactions and make them happen instantly.

- ParaSwap’s future role could be compared to Amadeus in the travel industry, stressing its foundational infrastructure rather than solely being an aggregator.

Fabrice Dautry

- Closely following the NFT trend, expecting projects and standards to emerge in the coming months or years.

- There are hopes for the Lightning Network to achieve widespread use and mass adoption.

Watch the episode here

Ultimate Tip for Newcomers: Prioritize Education

Both Mounir and Fabrice offer unified advice for those starting their crypto journey: education is paramount.

Mounir Benchemled claims “people should learn about what they’re doing and understand how the tech work even at a high level”. He advises against investing solely due to “missing out” (FOMO), as understanding the technology is more valuable than potentially losing significant amounts.

“Don’t FOMO in basically” – Fabrice Dautry

Fabrice strongly advises new users to start reading and and understanding what you’re actually putting money in before committing funds. While platforms like Crypto Twitter can provide information, it’s crucial to follow reputable sources that focus on explaining the technology rather than just price movements.