Discover and read the best of Twitter Threads about #openfinance

Most recents (4)

[1] Back to college! If learning about Bitcoin and other crypto networks is a 100-level course, and using them is 200-level, then here is a thread on some of the most timely 300-level topics to dive into. {thread👇🏽}
[2] Learn how @MakerDAO governance really works and how stakeholders are working to keep the Dai stablecoin pegged to 1 USD.

h/t @teo_leibowitz @TheBlock__…
[3] Get into the weeds of the Ethereum community and understand the ongoing #ProgPoW debate.…
Read 15 tweets
1/The launch of synthetic assets on decentralized networks like Ethereum is a major development for #OpenFinance! Let's take a closer look at synthetic cryptoassets and explain what they are, why they matter, as well as some of the risks associated with them.
2/Synthetic assets give investors exposure to an asset/portfolio of assets without actually needing to hold them. This is done using a financial contract with a counterparty. Contracts can be structured in different ways to mimic the effects of interacting with assets directly.
3/A common synthetic asset is a Total Return Swap. Here a counterparty agrees to pay the total return of an asset (such as FB stock) while the other agrees to pay a regular fixed cash flow and post margin/collateral. A swap terminates and settles at a later date in the future.
Read 18 tweets
🕛 While there are a number of smart contract platforms that support a variety of dapps, the majority of Open Finance applications are built on top of Ethereum. Let's take a look at the factors contributing to this dynamic and consider how defensible its moat is in this area.
🕧 Ethereum already has important & modular infrastructure for #OpenFinance. Developers can get their products to market faster by using it, or they can build & maintain infrastructure themselves and use another platform. Which option would you choose?

🕐 $ETH also has composability which is best illustrated by an example. Imagine an app needs to call @AugurProject, @0xProject & @compoundfinance sequentially. ETH 1.0 guarantees this in a way that next-gen platforms may not—and the results are powerful.

Read 11 tweets
1/Open Finance is an exciting industry being built on Ethereum. Ethereum is slow and inefficient on Layer 1, but exceptionally good at storing and programming digital value & acting as a settlement layer (Something EOS will never be because it lacks security and decentralization)
2/Open source software is being built on Ethereum that lowers economic barriers and lets anyone in the world have access to the global financial system, including the unbanked, because it doesn’t require a trusted intermediary.
3/People can securely store their own assets using hardware wallets or mobile app wallets. Exchanges, loans, insurance, finance, banks, baskets, derivatives, and CDP’s are among just a few permissionless services available.
Read 7 tweets

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