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#Week_2: #DeFi Day 5: Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets by @chainomics part 2
*Smart Contract-Based Reserve Aggregation.
Here: The smart contract will compare prices from all liquidity providers, accept the best offer -
*Smart Contract-Based Reserve Aggregation.
Here: The smart contract will compare prices from all liquidity providers, accept the best offer -
2- on behalf of the user, and execute the trade. It acts as a gateway between users and liquidity providers, ensuring best execution and atomic settlement.
*Peer-to-Peer Protocols: It is an alternative to exchanges or liquidity pools, also called over-the-counter (OTC) protocol
*Peer-to-Peer Protocols: It is an alternative to exchanges or liquidity pools, also called over-the-counter (OTC) protocol
3- They mostly rely on a two-step approach, where participants can query the network for counterparties who would like to trade pair of crypto and then negotiate the exchange rate bilaterally. Once the two parties agree on a price, Trade is executed on-chain via a smart contract
#Week_2: #DeFi Day 4: Decentralized Finance: On Blockchain- and Smart Contract-Based Financial Markets by @chainomics, will break it into 2 parts
A very good read coming from an academic professor!
This article highlights opportunities and potential risks of the DeFi ecosystem.
A very good read coming from an academic professor!
This article highlights opportunities and potential risks of the DeFi ecosystem.
2- DeFi uses smart contracts on top of blockchains to create open protocols that replicate existing financial services in a permissionless, interoperable, and transparent way,
Agreements are enforced by code (no middleman) transactions are executed in a secure and verifiable way.
Agreements are enforced by code (no middleman) transactions are executed in a secure and verifiable way.
3- So the adv here: unprecedented transparency, equal access rights, and little need for custodians, central clearing houses, or escrow services, as most of these roles can be assumed by "smart contracts."
So The backbone of all DeFi protocols and applications is smart contracts
So The backbone of all DeFi protocols and applications is smart contracts
#Week_2: #DeFi, Day 3: A Beginner’s Guide to (DeFi) by @sid_coelho
Actually it has a lot in common with yesterday's article, so i will try to focus on the new angels.
Crypto promises to make money and payments universally accessible, no matter where they are in the world.
Actually it has a lot in common with yesterday's article, so i will try to focus on the new angels.
Crypto promises to make money and payments universally accessible, no matter where they are in the world.
2-DeFi takes that promise a step further. Imagine a global, open alternative to every financial service you use today -savings, loans, trading, insurance and more- accessible to anyone in the world with a smartphone and internet connection.
This is now possible by smart contracts
This is now possible by smart contracts
3- Smart contracts are programs running on the blockchain that can execute automatically when certain conditions are met. Not only that, it has the composability function: meaning we can build on top of it, more sophisticated products, which is called: decentralized apps or dapps
#Week_2: #DeFi, Day 1: Decentralized Finance - the High Level Basics - by DeFi Education
In a sentence, banks can be replaced by software code
Long-term the majority of transactions will be done with smart contracts. Similar to how e-mail displaced the majority of snail mail,
In a sentence, banks can be replaced by software code
Long-term the majority of transactions will be done with smart contracts. Similar to how e-mail displaced the majority of snail mail,
2- Smart contracts will replace middlemen.
Before Defi, Bitcoin and other major crypto currencies like Ethereum were *unproductive assets* in your portfolio,
With smart contracts, you can now take loans against it *or* loan it out, and some other Utilities.
Before Defi, Bitcoin and other major crypto currencies like Ethereum were *unproductive assets* in your portfolio,
With smart contracts, you can now take loans against it *or* loan it out, and some other Utilities.
3- Collateralized Loan: Imagine a world where you could lend out money, knowing that there was collateral staked (avoid total loss),
On the borrower side, imagine a world where you can take out a loan for stable coins without interacting with a bank. This is what exists today.
On the borrower side, imagine a world where you can take out a loan for stable coins without interacting with a bank. This is what exists today.
