53 docs tagged with "DeFi"

AAVE provides money markets with algorithmically set interest rates based on supply and demand.

Non-custodial token swaps.

The rate you can earn on an account over a year and it includes compound gains.

Leverage information asymmetry. Arbitrage is the practice of buying and selling assets over two or more markets as a way to take advantage of different prices.

Fixed income by lending assets to a protocol treasury. The asset loaned need not be the protocol token and is determined through treasury governance. Similarly, interest payments are not limited to just the protocol tokens.

What projects are most important to prioritise for what reasons?

Capital Formation and Efficiency. The purpose of capital is support ideas that produce value.

Borrowing and lending of crypto assets. Crypto providers are able to earn an interest by depositing crypto to a specific pool. Borrowers are able to take out loans by collateralising crypto. By allowing collateralisation and lending across various cryptos, users are able to mix-and-match their current and borrowed assets according to their liquidity preferences.

Compound provides a savings account where you can earn interest without trusting a third party with your funds.

Beyond the hype, how can Web3 be used to run real world businesses better?

Trading narratives vs momentum.

DeFi's Fight for Liquidity.

Ethereum based stablecoin governed by Maker DAO

Bonding Curve Fundamentals

Glossary of DeFi concepts and meaning.

Decentralized Finance, permissionless treasury operations to optimize leverage without needing to deal with a middleman.

Source Code

https://docs.scaffoldeth.io/scaffold-eth/examples-branches/defi/aave-ape

How to become a DeFi Llama Pro

Using ChatGPT to create a MEV Arbitrage Bot (For learning only)

What are the primitive components of the DeFi ecosystem that serve a specific and unique financial function.

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Source Code

DeFi is a term used to describe a variety of onchain applications that are geared toward disrupting traditional financial services.

DeFi derivatives allow investors to limit their exposure to risk and benefit from underlying assets' price movement in a trustless environment.

KPIs

A tool that allows you to query the blockchain and create dashboards to visualise the data.

Dutch Auction is an oppen descending price auction

Euler Protocol is a decentralized lending platform built on Ethereum that allows permissionless lending and borrowing of crypto assets.

Funding Rate Arbitrage: is a strategy that involves borrowing a stablecoin and using it to buy a token that is expected to appreciate in value. The goal is to profit from the difference between the interest rate on the borrowed stablecoin and the appreciation of the token.

A flash loan enables you to borrow assets from a smart contract pool with no collateral.

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For creators and developers, the following improvements are unlocked:

Given web3 game development as a chaotic problem to solve. What is the critical decision path and time horizon to reach potential versus the reality of what is possible to deliver?

Benefits of Web3 for players are:

Help gamers to transfer the benefits of gaming into all facets of life.

Impermanent Loss happens when the price of your tokens drop compared to when you deposited them. The larger the change is, the bigger the loss.

Risk management of assets by purchasing insurance coverage in the event of asset loss (hacks, smart contract bug, etc.). Underwriters are able to select protocols/events to underwrite in exchange for a fee. Based on the insurance pools, a user is able to insure themselves by paying a premium to that pool. Payout determination can be either through a voting process or event driven code.

Solve the liquidity problem of staking crypto to secure blockchain transactions.

Liquidity Pools are the backbone of many decentralized exchanges (DEX).

Marketplaces facilitate the peer-to-peer discovery and trading of assets. The asset traded usually takes the form of NFTs (Non-Fungible Tokens) whereby each asset is unique and therefore requires significant amount of information and price discovery.

Evolve a DEX from basic to more complex as understanding grows.

Traditional orderbook trading process for swapping tokens. In addition to the traditional order matching, most orderbook DEXes will also search for opportunities for orders to be settled on AMM DEXes.

When transactions are sent to Ethereum, the amount of gas given as a charge for performing each transaction determines the order in which they are executed.

Ethereum Smart Contracts Protocols.

In the best position to win industry adoption through DePIN business models?

Decentralised digital money.

Website | Trends

Uniswap allows users to trustlessly trade (swap) ERC20 tokens or stablecoins.

Details

Automated yield with Yearn Finance.

Lending cryptocurrency is also known as yield farming or liquidity harvesting.

How to build a portfolio that optimizes potential for yield?