12 docs tagged with "Primitive"

Non-custodial token swaps.

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.

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.

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

Run

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

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.

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.

Use Cases

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.

Solana Memecoin.