I'm blocked on all channels by Shezan and Lava, so I did miss most of the drama but various people reached out to me about my opinion.
TL;DR; do your own research.
I'm usually not someone who shares much, but, recent news about Lava becoming apparently a custodial solution while claiming DLCs have security flaws made me speak out and I want to share my opinion.
My first contact with Shezan was a few years ago, when we were still working on the dlc-specifications. He and his back then co-founder joined a call or two announcing they will be using DLCs.
I then didn't follow much what he was doing and focused on
@get10101, a p2p derivative platform built on DLC-channels.
We shut down 10101 mid 2024 when we accepted we didn't get enough traction with our approach and had the idea of using DLCs for cross-chain lending.
When we wrote our whitepaper for
@lendasat, we came across Lava again.
I thought, wow, they do exactly the same protocol as we want to.
When we launched
@lendasat, we decided to go for a simple 2-of-3 multisig though and pushed the DLC-based solution into the future.
2-of-3 multisig is superior to DLCs in that it is so freaking simple, both from implementation and to understand for non-technical people.
This is what people were familiar with and particularly institutions are looking for.
After our launch, Shezan reached out to see what we were up to.
He tried to talk down our solution and that we are so far behind... I thought that's funny because he had 0 traction. At least from what I could see on social media, the app, their website. It was all lots of fugazi fugazi.
Shezan asked if we were keen on joining him. He bragged about who is working for him - people who are well known in the DLC space.
It sounded too good to be true, and after a bit of research it was obvious that most of them were only contractors or advisors and had not bought into Lava (yet).
We considered a merger, we had several conversations, including with my whole team about roles, positions, etc.
He sold us stories about huge traction, but never was able to provide any proof or data.
He also continuously ran late to our calls or postponed the calls last minute, which I find very impolite.
Maybe he was just careful and super busy.
In hindsight, there were several red flags during our calls.
My main condition joining Lava was that I would only join as a partner/co-founder, and not as an employee which he didn't accept.
He then blocked me on all channels and then poached my team members behind my back.
Seriously, what the fuck dude. Thankfully loyalty is something money can't buy.
I then continued watching Lava from the sidelines, as it was not popping up on my timeline anymore thanks to the blocks.
He however didn't leave us alone and reached out to our followers on X and told them to try Lava instead.
I guess in business everything is fair game, but WTF?
During our own fundraising efforts for Lendasat I was regularly asked:
- how do you compete with Lava?
- How are you different?
Honestly, from the sidelines it was not very obvious, he was shitting on all other solutions than DLCs, but it was not clear that they are even using DLCs.
It's closed source, no access to CETs or even the keys. Nor any disclosure on who runs the oracle. Personally, big red flag.
An app with a couple of 100 downloads, where is his traction coming from?
Bitcoiners loved him nevertheless, VCs seem to love him, he raises millions.
Now, the turning point - Lava loans are converted to custodial contracts. WTF?
He claims DLCs have security flaws but is not able to provide any proof. WTF?
Seriously, this alone should make you question his integrity.
There are lots of teams building on DLCs and no one of us has been contacted about potential security flaws. There was also no public disclosure about it.
So I just call BS on this.
For me, this is just one red flag after the other.
I've put Lava into the custodial lending camp for a long time which I simply despise - obviously, still a competitor to
@lendasat, but with different values, and ideally not the same target users.
For me Shezan is an untrustworthy person with no integrity.
I can only warn about a young seemingly charismatic wunderkind.
We had such a person before, and it didn't end well.
Do your own research.
Vires in numeris.