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All right, I'm joined by Simon from Service, and we're going to go through all the really cool, amazing things that the guys have been working on.
There's just so much to go through, everything from the risk analysis platform itself, sirens, the service indexes, the nodes on the partner chains.There is just so much, and I'm just really overwhelmed with what's going on at the moment.
But Simon, thank you for joining me on this podcast episode to talk through everything here.Welcome back. It's always a pleasure to be here and thank you for having me.So where do we start?This is just like overwhelming.
I'd probably start with the platform itself.Can we get an overview for those that don't know about Cerebus?What is it and what are you guys building?
It is overwhelming when you look in all of the details, but I like to make it quite simple.We are a crypto native version of Standard & Poor. Standard & Poor is more or better known for the main product S&P 500.
That's the usual thing when you have people talk about stock market and beat the S&P 500, it underperforms the S&P 500.What is the S&P 500?It is an index, right?The 500 largest market by market cap.And what does Standard & Poor do?
They create risk ratings. That is really the core business model.You create risk ratings and indexes.And we do the same, only that we replace the corporation with a blockchain.
And now most blockchains are used to validate transactions, but we validate a risk rating.So that is really it.These risk ratings, they're computed by the nodes.They contain the full risk model.
They compute a little bit of a shot of it as part of it for a token.Then they agree and they publish it on chain. Why is it beautiful?Because A, we all know that the risk model was computed correctly because the other people always double check it.
We know how it is computed because it's open source.And we have a perfect track record of all risk ratings inscribed on a blockchain for each and every asset that is within the Zerber system, which will be all crypto assets.
So very important to understand when we talk about a blockchain, we refer to a Cardano partner chain.And we chose the Cardano partner chain framework to be a Cardano project that's able to serve all of crypto.
It's really important when you understand Zerberos and our strategy as a commercial platform, really, is to provide risk ratings for any and all assets in crypto and to create indexes, both locally for, let's say, Cardano, but also cross-chain that when you are a Cardano user and you want to buy, you know, maybe you want to benefit from one of the other things in a
We want to benefit from the Aminco and Crazy Solana.It's very hard to do that without leaving the ecosystem.And I actually want that people can stay in the ecosystem and still benefit from that.And Zerberos is exactly that tool.
Through our indexes, get whatever you want to have in your portfolio, in your portfolio.
That is brilliant.And thank you for that explanation as well.That just makes total sense to me now.Now, with the risk ratings, there's machine learning and all that behind it, isn't it?
You've written an algorithm that determines the certain risk ratings for all the crypto projects out there and all the assets.Is that correct?That's how it works?
That is correct.So we have been using for a long time a methodology which is called topological data analysis.So what is that?
Topology is, for this specific version of mathematics, is primarily used in advanced cancer research because it helps you to make more sense of complex statistical output.And when we were looking into crypto networks,
They're quite chaotic, and most importantly, they all look different.
And so the first step that we did, we take these networks, and by networks, I refer to the wallets on the blockchain holding a token, take these networks and standardize them in a machine-readable format, and we call them shapes.
I will just show one of these shapes to make it understandable.So we take these networks and put them into shapes, and these shapes are truly what
We we put we use as an input for machine learning model you can see my twitter screen these are the networks very boring way of showing them but these are really the networks you see the hops and you see the tail.
And we put them into these types of shapes and these shapes are perfect absolutely perfect for a machine learning model to understand and one thing that we.
You know, we saw a lot of people are trying to use AI or machine learning for cryptographic data.But whenever you talk to people who have really tried it, they always tell you the same.It's basically impossible.There's not enough data.
And the data is too different.It's too variable.So there are not enough patterns.And this is really what we solved.So what Zerbos did is quite a scientific innovation.And we're quite proud of the Cardano project because Cardano is known for research.
We spend one and a half years, two and a half years writing papers.You know, it's really what we did before we went to the start.And this is where I think that there was, these words like cutting edge are so overused.And also AI is very overused.
That's why we don't, we're tired.We don't want to use them.It's machine learning model. But it is truly on the cutting edge of science, because we use these new mathematics.Half of our team are physicists that have worked that out.
So that's really the background.What we have found really in that, I think, is great insight observers.We found a way to describe them and measure them.The model isn't perfect yet.We will open source it.We allow other people to work with it.
But the key that we found is we found something fundamentally true about these networks.How do we process them and show them?And this is where we take it from here.
Wow, that's amazing.This is getting me extremely excited about the platform overall.Now, you also mentioned another thing with the partner chains and how you guys are building out your side of the blockchain things there.
Now, you also kind of mentioned cross-chain and interoperability across different networks.And I know that you guys are also concentrating on Polygon and Ethereum as well.And you mentioned Solana too.You kind of have to.
Is the reason why you chose the partner chain so that you could be more interoperable with all these other chains?
That's exactly the reason.If you were a Cardano project, but Cardano is our base, there's so much more other ecosystems out there.And this truth that we found is true for all of these chains.
And we were brainstorming quite a long while how we can, as a Cardano project, take advantage of the data and also of the liquidity.
And when IHK published the Partner Chain Framework, we were so excited because it is exactly the solution to our problem.Because for one, we need our own validator set and we need interoperability.What does the Partner Chain Network do?
It gives you your own validator set and it provides interoperability.So I think that the Partner Chain Framework, I think, should, in my humble opinion, should be the narrative for this round.Like the Partner Chain Framework is incredible, powerful,
It is extremely smart from IHK to push that.And you have to see, we get now all of these dApps and all partner chains, and in service will be first among them, which, you know, create value and entire crypto ecosystem and accrue it to a CNNFT.
And I think that's exactly the push that we need as an ecosystem to
You know someone's car is an island and i think that will stop to be i think i know will move to the heart of the system through this partner chain framework and our partner chains like midnight like providing services to all of these blockchains and also getting fees from there.
Wow.Okay.That's super exciting as well.And this kind of leads me on to my next question about the indexes.
So me as a Kadana user at heart, I do want to get exposure to all these other chains and the assets that are developing and are pretty exciting over the other ecosystems, but I just don't have the time. to explore them and get a good understanding.
So does this mean I'll be able to buy into these indexes on the Cadena side, but get exposure over to Polygon and Ethereum as well?Or do I still have to move over to those particular ecosystems to get exposure to those assets as indexes?
It's a staged process here. Ultimately, it's exactly what it means that you can buy an index that contains Solana tokens as a CNNFD and that you can really build your portfolio without ever leaving the ecosystem.
The first version that goes live right after launch, and I will show it quickly, will still require you to be within these ecosystems, but it's still in one app.So this is the Cardano index.
And what you see, what we did here is we have three indexes.We have the ecosystem prime one, we have the ecosystem broad, we have the ecosystem gross.
The first thing that stands out is, right, like we would have doubled your money in any of them, which I think is quite impressive.Most of them run for the last few years.
You see this one, for example, the ecosystem prime one, which is consisted of the best rated assets in the ecosystem, starts in December 24, 2022.One important note, when we go live, we reset them.
This is a back test that we run to show what it would have looked like if we would have launched it on on December 2022.And how do we design them is really, they're built based on one premise only.You want to have more of the underlying.
So if you buy this one on Cardano, the goal is really that you have more ADA at the end of it than you had in the beginning of it.We did not, we don't do it against USD because we really see it as this DeFi first primitive
And we believe if you are in Cardano and you're interested in investing in NFTs, you already believe in the underlying.So our goal is really to make you more ADA.And also what we did, we're pretty confident that
This system works, all the back tests have shown it does, and this is also why you will see these indexes always, you know, like with the yellow line showing where 1 ADA was when they're being issued, and then they go up.
Before I go and talk a bit more about the cross-chain stuff, like how does it actually work?So the index vault is a smart contract in which you can deposit 1 ADA, and you get 1 vault token back.
If that vault token, which is the price that you see, increases, right, to, let's say, 17 ADA, you can Go back to the vault, input your vault tokens, and you get 16 ADA back.That's how it is designed.
Within the vault, there is a basket of tokens which is rebalancing based on the risk ratings.We rebalance. Depending on the vault, but we rebalance anything between once a week to once a month to sometimes only once every three months.
It's really, it depends on the specific type of a vault.These are all long positions.Some people have asked us if we can put staking and default positions in it.
We can do it at one point, but for now we are really, really focused on these simple long positions because we also think they drive the most liquidity into the ecosystem.
What is also very interesting is that we have already found quite strong interest in professional investor money for this.The pull was so strong when we did that.
And the reason is that everybody wants to be in crypto, and there are a lot of DeFi hedge funds, and they basically play around with the top 10s. Ethereum, Bitcoin, Solana, ADA.But that's basically it.And then they maybe have a SUI or something in.
But they want to benefit from this local ecosystem that's being traded on DEX.But sometimes they have quite some reservations because they don't know, they don't have enough staff to make all of this research.
And so the idea for a fund, a DeFi fund, to simply buy an ecosystem, a broad index of an ecosystem they're interested in, makes a lot of sense. And again, we're quite, yeah, I love it too.And it's quite interesting.
So Zerber has been working with these funds and we're really keen to get them out and get the money in.But regarding to these cross-chain funds, for now, you have to switch between the ecosystems and you have to have a DeFi wallet coming in.
But it's our goal that within six months, six weeks, sorry, six weeks, we will, after launch, we'll release our first cross-chain fund that you can buy on each ecosystem.So you can buy this one on ADA.
So you can have an ADA CNFT that then corresponds to a cross-chain smart contract on the Zerbis partner chain that has assets from Ethereum, Solana and Cardano.
And we hope that by promoting that, right, a cross-chain fund, that you will have it in both ways.So you can benefit from the trading activity of another ecosystem, but also
If an Ethereum user or Solana user would buy into that index, it would also benefit from Cardano and bring liquidity to the Cardano ecosystem.Tokens like Snake have quite an interest from other chains.
And there's not much difference between buying a wrapped Snake or buying a Zerbis index.So we see there's a huge opportunity.And I think this is the most important thing to understand when
to try to re-evaluate Cerberus in your mind is how big is the market, right?And the market is all of crypto, right?So that's really it.And we're fairly confident to, because we have already interest from other ecosystems.
And I just want to show this one because when we say we are a partner chain, we do it for interoperability.This is not just an intention that we want to do, but It is truly a requirement of the request you already get.
So for example, one partner that we have over on the Ethereum side is this protocol, Alvara.Alvara also provides indexes, but as a fund provider.So this is really important to understand.
What Zerberus does is we provide how the indexes are curated, right?It's the risk and after management platform.So we are very happy to work with other index base layer protocols like Matera, like Alvara.
And what these guys have requested us is that we host funds on their platforms, boards on their platforms, and that we use our risk ratings to integrate right into their oracle to evaluate.
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They're the other indexes that are hosted on the funds and I cannot stress enough how huge this is that you have now other EVM ecosystems coming to a Cardano partner chain and requesting services.Polygon did that.
Polygon came to us, gave us a grant, asking for it.Alvara is coming to us, asking for it.Another one called iPolabs.
So we have a whole bunch of these cross-chain protocols that are coming to us and saying, hey, this is actually extremely cool what you have here.We kind of need it in our ecosystem.
And you guys have a track tracker, and you have a lot of research into it.Could you help us? And I think, I cannot imagine a better payoff for our Cardano community than Zerwis being maximum successful.And we are on our way to that.
that this is amazing news.It's really, really exciting to hear as well, like other chains, other protocols are just knocking on your door asking for your services and your products.This is where you really want to be.So this is absolutely awesome.
Now, I do want to see eventually the platform be like a totally chain agnostic.
So when you go to the platform for a complete newbie, you don't want to be looking at this chain, that chain, whatever chain, like some chains they don't even hear about or know about.
You just want to go to the platform and go, that's the index that's performing this well.It's gone up 100% in the last year.I want in on that index.So that's basically all a newbie user will be after as well.
So if you guys get to that point, that seamless experience, I think you guys got a huge winner in the entire crypto space.
That's absolutely the goal to get there, that it is seamless.We even think about things like integrating payment solutions so you can just DCA into an index.
Most people trade in crypto, and of course, I'm also a bit of a risk taker, otherwise I wouldn't be a founder of a project.That's always a bit risky.But I think that, like,
No matter what, most people will struggle to actually maintain trading positions profitably.They might win, they might lose, but net, they don't really make a lot of money.And that is true for the stock market as well.
So the best thing that you can do is just DCA into an index, only that while an S&P index brings you 6% a year, a crypto index brings you And actually, a bull run.So it might be actually much, much smarter to just DCA into that.
And because the positions are rebalanced, right, it's something where you can rebalance or you can make DCA in for 10 years without drawing.And when we move to the cross-chain stage, we will also have other Layer 1 tokens in there.
So you can have an indexing. click on it but just have optimally risk optimize portfolio we just need to know that it's not trying to rush you through to make a game but it really just looks for the most sustainable long time balance portfolio,
I will put my money in it.
Yeah, that suits me to a T. I've tried trading, I've tried algorithmic trading, bot trading and all that, I've lost plenty.
I go back to indexes, like my regular TradeFi stuff, I'm just all in indexes and they outperform anything that I've ever done, ever. So this, this is hugely appealing to me.DCA-ing into a crypto index is absolutely perfect.
So I can't wait until this is all up and running and I can get my hands on it and start moving some of my trading strategies over to something like this.Yeah.Amazing guys.
You said something important and I want to always jump on that and clarify it, right?Like for services, it's not a trading bot, right?Like, because sometimes people say, Oh, is it a trading bot? You know, like it is an index, right?
And it's just an index that's being balanced and a very conservative.Metrics, right?Like what we really look for is the service ratings, which are based on, you know, how is the community performing?What is the underlying activity?And.
That's really, that's very important for us, right, to be understood like that.This is also why we're sometimes hesitant with certain words.If I Google right now AI trading bots for crypto, I don't know how many hits I get, but I guess I get a lot.
And that's really, you know, Zerber needs to be differentiated, right?We work with an open source model and working with an open source model also means that with alpha, like our goal is not to outperform the market.That's not our goal.
Our goal is to capture the perfect market without severe losses. And I think that is already, at least when I look at some of my portfolio, I'm very happy if we manage that.I think we have this perfect market growth going in and out.
And I think this is the perfect product, right, where you don't have the radical losses and you have perfectly balanced portfolio.
All right.Now you guys are also busy in a lot of the other parts of the project, such as working with partners and whatnot and onboarding them.
I heard that Nuvola was one of your latest partners as well, and they're dedicating resources to run nodes for service as well.Is that correct?Did I hear that right?
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Yeah, a hundred percent correct.As that service is a partner chain, we have our own set of validators.The partner chain is a testnet.It's not a full partner chain.It's a testnet.It's very important.
We aim to go on a limited mainnet within the next three months.So everything can run decentralized and then to a full mainnet shortly after that.This is it.That's the Blockchain Explorer, right?
Blockchains are something very hard to build, and they're very amazing.But when you visualize them, that's basically it.It's a table.You can look at it.Nugola is part of that.They will run our nodes professionally.
You can see where it is globally distributed.We're right now in North America and Northern Europe.
You need someone in Australia there.
Yeah, exactly.We need somebody in Australia.I agree.We also need somebody in China and Asia and Africa would be really cool.Maybe somewhere from Nigeria, Latin America to make it truly global.
Yeah, and we have this testnet going on where people can join us about the nodes, the ISM, NFT requirement. We currently set it at 12 NFTs per node.It seems right now that maybe we've set it a bit too high.So it's really not a final number.
We probably make it a little bit easier to run a node.And if you definitely want to make sure you're part of the node system, join us in the testnet.We are extremely community oriented.
If you jump in, you help us setting up a node, participate in testnet, we take care of our community.So if you guys want to be part of it, just come.
Okay, I'll check it out.How much is one of those NFTs going for at the moment?
Well, I think that the market is pricing in the fact that Zerbros has a huge cross-chain future.And I just want to pull up the chart now.I mean, I sometimes... I was afraid to ask.
Because, you know, a big cross-chain, partner chain development, obviously, you can see it there operating.And it's jumped up, of course, of course. Yeah, just as I asked, maybe I'll set up a node.No, I won't now.
Yeah.I think it's, it's quite interesting to see, right.Because, uh, you know, we, what we did, um, we sold all our, all our NFTs out, right.
We didn't have any, any remaining things other than, if you sort of found us, um, which is like free for each founder, which is really not a lot.And I've given all my, my, but one away for free.Um,
And now what you can see is you can see really the different development cycles that we have with Zerberus, right?So you see our first year, right, where people really wanted to, you know, where people didn't really didn't know us yet, right?
And then there was first time with excitement of us, right?And it went down in the descending triangle.Then we had a bit of hype again, and then we really went to development of the partner chain.And here we announced it, right?
And now, you know, like we are thousands percent up. I'd like, that's not the original minting price, but a bit higher.We did it for the original minting price.It was like, you know, 7,000%.It shows now 5,000%.I think I've not put it deep enough.
And up there, I think this is really when the community starts seeing that there's a lot of value in there.And we have really big goals for the token.So the token will be a CNNFT.That's how we bound to Pradano.
we will deploy bridges to other ecosystems that also, to which we go.
So we will take a bit of adult treasury and go open liquidity pools based on Ethereum, Polygon, and then Solana, because there will be certain features added to the platform where you need to hold tokens in your wallet.
So that can be either specific indexes, Or when you go on our risk ratings, you see there are no analytics anymore.And the reason is we'll bring them back, but you have to hold tokens in your wallet to get that.
So by opening these liquidity pools across different chains and having the product out, we create very natural demand in ecosystems where there are no other Zerber tokens available.So there's no selling pressure, there's just buying pressure.
But of course, the biggest utility of the token itself always reminds the blockchain itself.It's a proof of stake blockchain, so all fees earned by the
by the network, by the partnership, I put it at treasury, and then given to the validators for their fulfillment of the job of running the node.And a validator both needs an NFT and it needs a stake.
So it's these two types of tokens whereby the stake can be provided by the fungible token holders.And I just want to bring this up because I'm just a numbers nerd.So how will staking look like, right?Because staking is the most
powerful and that's the essential utility, right?Like having some token on the wallet to see something.It's nice, right?But that's not the point.
It's really about keeping the network alive in the same way that ADAS kept the lives through staking, whereby you really want to see trust being expressed via this token so we can trust all the node providers.
If you're interested in that token, you can go to service.io.There's a very nice button here for the token paper.You can read all the other things that we talked about.Just want to bring this one up, which is the staking curve.
So we took a lot of inspiration of ADA.We really love ADA, so we like to copy everything that's good about ADA.So similar to ADA, we have this long staking curve of 10 years, starting with 50% APY.Of course, it goes fairly quickly.
fast down so you don't have 50% APY for a year and you have 50% APY for a month.And it keeps going down until it hits about 5% APY after 20 months.
So that's very important because our goal is to use this part of the curve really to bootstrap the network-based on emissions.And after this point, we want to subsidize the APY to keep it around 5% with protocol revenues.So the
The space between this line and the blue line, which now increases, is what the protocol needs to earn naturally and to keep it at 5% APY.Because ultimately, the Zerbis token is the super index.
That is the one that earns fees from all the other indexes.And we need to keep the network safe.Because again, what Zerbis does essentially, I talk a lot about indexes, but it is the risk rating. it is the S&P standard and poor risk ratings.
We need to keep them safe because also other dApps are building on top of it.And to ensure the safety and correctness of these risk ratings, that's ultimately what the token does by selecting the trustworthy node provider.
So it is extremely important to keep that competitive and keep it interesting and keep it as a beautiful asset that you also want to have in your portfolio.
Wow, Simon.I'm so excited about this platform and where you guys are going.Everything that you guys have built over the last couple of years has been really, really useful for the community as well.
I think I've got one of the NFTs and I bought it purely so I could use the platform itself, but I kind of wish I got more now, but that's okay.That's okay.Well, I might get around to it somehow.
But you do have your token sale coming up right around the corner.I believe it's on the 11th of November.What are the details?Where we can get access to this?
I'll put links in the show notes down below to that token paper as well so people can do more research behind it as well so they can prepare themselves for this.But where is the token sale happening?
It happens on Minswap.It will be a Parata sale. have been heavily, like the Mintwop community has been supporting us by voting for our catalyst proposals.And you know, what can you do, right?If a community shows you so much love, right?
You just can't do anything else but saying, okay guys, then we come back with some love.So there was really, there was not even a choice in Revio, like after being appreciated so much.So what happens at Mintwop, it is a Prorata sale.
The big thing about the Zerberus token sale is we sell 30% of our total supply.And what I really want to have people understand when they look at the token sale, at all our details, is that Zerberus has this long cross-chain journey ahead of us.
But the CNFT token sale that happens in Mintrop is the first time anybody gets their hands on a token. After that, right, like we have these cascading additional sales event of the same bridge tokens on other ecosystems.
So a lot of people said they wish they bought more searches.You know, I wouldn't do the mistake twice. Oh good, oh good, all right.But you know, of course, I do want to make disclaimer, right?
Because of course, it's a token sale, there's always risk in it, right?Like, in every token sale is risk.Reserve is noted very well.Whatever you do, never, never borrow money, never do more than you can afford to lose.
I think that's always important.Of course, none of this is financial advice.Please do your own research on anything, especially in the crypto space.Assets are very volatile and it is very risky.Only speculate what you can afford to lose.
All right, Simon, this has been a very exciting interview and I think a lot of people are going to get a lot out of this.Like I said, all the links and references down below.
But is there any final words that you'd like to leave the audience before we sign off?
Brilliant, okay.Looking forward to the sale and hopefully you guys do sell out.
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