How does Byte Masons solve the problem in DeFi?

In this episode, [Marcus Peters]( interviews [Justin Bebis]( about what Byte Masons are building, what problems it wants to solve and more.


Read our notes below to learn more


**What is Byte Masons**

* They’re trying to create a DeFi software that can compete with traditional financial institutions.
* The issue with DeFi right now is it makes no money and it can’t be sustainable.
* [Aave]( spent $360M on incentives in 2021 and only made $30M in revenue off of that.
* Their goal is to solve the problem of DeFi and package it up in a very user-friendly approachable way.


**Byte Masons’ Approach**

* The problem with Aave is there’s no demand for their liquidity so borrowing is very slim pick-ins.
* DeFi protocols are fighting over a very small pool of borrow side demand.
* Byte Masons are able to permissionlessly lend any extra reserves to other protocols without compromising the elasticity of DeFi.
* Over collateralization is one of the greatest strengths and weaknesses of DeFi.
* Being able to generate as much yield as possible without presenting any risk is a really big thing.
* Everything is delta neutral principle protected.
* There’s a lot of vetting, measured growth and risk management that goes into these processes.


**How Byte Masons work**

* [Reaper Farm]( is like the UI/UX of this asset management technology.
* Reaper Farm is an auto-compounder that also seeks the best yield for deposited assets while also being heavily focused on protecting funds.
* Moon allows new crypto users to get onboarded easily, it also allows regular Web2 websites to implement crypto features.
* Reliquary is a place to deposit regular crypto assets or what they call “Relics” and get extra rewards for holding longer.
* Ethos or $eUSD is a stablecoin backed by $BTC and $ETH.
* [Granary Finance]( is a lending and borrowing platform.
* All users can interact with their apps independently.


**How does Byte Masons attract new users**

* They have over a hundred thousand users.
* They don’t emit incentives so users aren’t really loyal because they don’t have infinite ultra best yield.
* They can create a very abstract user experience and take this noise they were able to generate then convert that into direct usership.
* Once Reliquary and Ethos are live, that’s when they start emitting incentives and start competing wholeheartedly for the long haul.
* There’s a lot of complacency with the blue chip DeFi realm.

**Byte Masons’ reputation**

* They are a well-capitalized team with 29 people, 16 of them are senior Ethereum engineers.
* They are a very serious team with 2 years of experience in DeFi asset management.
* Their ability to scale yield and do it in a principal protected delta neutral fashion is well proven.
* They are among the top 10 protocols on [Optimism](
* Among the top 20 protocols in [Fantom](
* A lot of their research goes to how to scale risk controls and how to scale yield because those are always at odds.
* Their goal as a business is to replicate things in finance in a very DeFi first native way with a focus on transparency and elasticity.


**Byte Masons’ Runway**

* If they don’t touch any tokens, don’t raise money or don’t make any money, they have nine months of runway.
* They have a bunch of revenue streams.
* They do private label development.
* Byte Masons is an engineering firm with a modular portfolio of 10x DeFi innovations, a lot of which are proprietary and can exceed best in class in any market vertical for customers in any risk profile.


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