The crypto industry has undergone significant changes due to advancements in decentralized finance (DeFi) and blockchain technology. Sasha Ivanov, the founder of Waves, has introduced Units Network as a foundational layer that connects ecosystem chains in a fully interoperable and trustless manner. Units Network allows for the restaking of any assets and is secured by real-world assets (RWA).
In an interview, Ivanov discusses the strategies and innovations behind Units Network, its role within the Waves ecosystem, and the broader implications for blockchain technology. He also reflects on past challenges, such as the depegging of Neutrino USD and the impact of the FTX collapse, providing valuable insights into the future of decentralized finance.
Cointelegraph: What are your plans for the next bull cycle?
Sasha Ivanov: We are launching a new project called Units Network, which is based on the Waves ecosystem. Our goal is to significantly expand the ecosystem and attract new community members. This project allows for the launch of your own layer-1 (L1) blockchain based on Waves (WAVES) staking. The network is fully compatible with Ethereum and aims to simplify the process of launching your own blockchain network.
Additionally, networks within the ecosystem can interact through the Waves network, which becomes more than just an L1 blockchain but a foundational level (L0) of the ecosystem. We believe that the ease of launching blockchain networks and their effective connection to existing networks are crucial for the mass adoption of blockchain technology.
CT: How did you handle the challenges related to Waves, and what were the results and lessons learned?
SI: The past two years have been challenging for Waves, and we have faced many unpleasant issues. However, they are overshadowed by the events happening in the world.
On a positive note, we have learned valuable lessons from the detachment of USDN and similar stablecoin issues. It has shown us that a model based solely on market mechanisms to maintain the stability of such assets is not always reliable and can be vulnerable to attacks. We have also demonstrated that decentralized autonomous organization (DAO) models can function during crisis situations. After the situation with USDN and liquidity stuck in the loan protocol on Waves and Waves Exchange gateways, centralized financing for core ecosystem products disappeared. The Waves ecosystem has since become fully decentralized, with all funding being conducted through the Waves DAO, allowing for the continued development of Waves.
CT: How did the conflict with Alameda Research affect Waves, and what are your thoughts on the collapse of the FTX exchange?
SI: “What doesn’t kill us makes us stronger.” My perspective on the crypto market and my goals within it have changed significantly. The collapse of FTX was a surprise for me and made me realize the risks within the Western financial system, which I had previously underestimated.
CT: How do you assess Ethereum’s current development and scalability approach?
SI: Units Network aims to achieve what Ethereum will likely do in the future by connecting layer-2 (L2) networks and the base Ethereum layer into one ecosystem based on Ether (ETH) staking. In this scenario, L2 networks essentially become “shards” of Ethereum, and sharding will play a significant role within the future Ethereum ecosystem.
I believe that this is the endgame for the current development of crypto technologies, where we have an ecosystem based on a powerful L1 network with L2 networks utilizing these mechanisms for decentralization and consensus internally. In this scenario, the L1 network essentially becomes L0, the base level providing consensus and linking all networks into one ecosystem.
CT: Can you provide an overview of Units Network and its role within the blockchain ecosystem?
SI: Units aims to expand the Waves ecosystem by providing the ability to quickly and efficiently launch Ethereum Virtual Machine (EVM) networks. This eliminates the need to deploy individual validators and allows networks to connect with others both within and beyond the ecosystem. We anticipate having hundreds of interconnected EVM networks within the ecosystem, with the first Unit0 network being of utmost importance. The Unit0 token governs the Units DAO within the ecosystem.
We are launching the Units testnet campaign, which allows users to familiarize themselves with the product and earn rewards for testnet activities. This will be followed by a staking campaign where users can earn Units tokens for providing liquidity. The launch of Units is expected in June-July of this year.
CT: Can you explain some of the specific tools and solutions offered by Units Network?
SI: Units Network aims to enable a simple process for launching your own blockchains. A blockchain originator can make a DAO governance proposal, offering rewards to network validators. If the proposal is approved, their blockchain is launched within a few days, eliminating the need to maintain your own nodes. The new blockchain is supported by the existing validator community and is seamlessly connected to all other chains within the ecosystem. In addition, external bridges provide connectivity to other ecosystems.
CT: How does the Hybrid RWA stablecoin system work, and what are its benefits compared to traditional stablecoins?
SI: The RWA narrative is crucial for the future applications of blockchain technology, as it promises to transfer a significant part of the world’s financial infrastructure to blockchain tech and can provide a continuous flow of new projects. However, the RWA narrative requires lowering the entry barriers for projects, especially when launching their blockchains.
Units will facilitate the launch of several RWA projects in the ecosystem, showcasing the network’s advantages in terms of launch simplicity and external ecosystem connectivity. One of the projects that will be launched is a hybrid RWA stablecoin that combines crypto collateral with less liquid RWA collateral. This combination allows for stablecoin annual percentage yield (APY), with the crypto part securing the stablecoin peg.
CT: From a user perspective, what are the advantages of utilizing Units Network over traditional blockchain platforms?
SI: We focus on the simplicity of launching your own chain, embedded into the existing ecosystem. We offer useful features such as internal and external bridges, native staking of any assets, and an ecosystem DAO that can help bootstrap your own chain. Our goal is to create an accessible solution for launching and maintaining your own blockspace for all types of projects.
CT: What are the future plans for Units Network?
SI: We are currently starting testnet and liquidity campaigns to showcase the features of Units Network. The mainnet launch of the first ecosystem blockchain, Unit0, is planned for this summer. The next significant milestone for Units is launching the ecosystem DAO based on the Unit0 token, which will help bootstrap further ecosystem chains and DApps launched on the Unit0 chain. Additionally, we plan to integrate zero-knowledge (ZK) proofs into the ecosystem, allowing for different approaches to L0-L1 interoperability.