Hardcore #DeFi: derivatives on all types of assets on the blockchain. In 5 tweets π§΅π
Synthetix is a decentralized synthetic asset platform that provides on-chain exposure to fiat currencies, cryptocurrencies, commodities, stocks, and indices.
It opens up endless trading possibilities to people who wouldn't normally have access to trading the tracked asset.
Synthetic assets (Synths) are backed by Synthetix Network Tokens ( $SNX) staked into a smart contract as collateral. The current ratio is 750% and can be changed by governance.
In exchange, Synth stakers get a fixed amount of inflation and fees on the trading of the Synth.
Synths can track the price directly or inversely, allowing traders to have long or short positions on the underlying asset.
In the last month, the trading volume of Synths has been +$700 mn.
The biggest ones are uUSD, uETH, sEUR, sBTC, iBTC, sAMZN, sDOT, sMSFT, sDEFI, and sFB.
Synths track the prices of the various assets using @chainlink oracles.
Users don't trade synths with each other but directly with the smart contract (it expands/contracts as needed). This removes liquidity limitations since there is no need for a counterparty.
$SNX is the #ERC20 platform token. It is used to provide collateral for Synths.
It will reach its fixed maximum supply in 2024. Most of the supply is paid to stakers after a monetary policy change in 2019. Another big allocation is for the 2018 token sale.
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Crypto payments to phone numbers. In 5 tweets π§΅π
Celo is a smart contract capable blockchain optimized to easily provide access to financial services with the lowest possible entry barriers.
The protocol includes stablecoins, on-chain governance, and uses phone numbers as addresses.
Users can associate their phone number to an address. Others can see they've done that and can send transactions to that phone number without knowing the address.
Phone numbers are not visible on the blockchain, but the repeated use of an address can itself be a privacy issue.
Yearn Finance is a suite of #DeFi products that provides lending aggregation, yield generation, and insurance on the #Ethereum blockchain.
It launched in 2020 and has more than $3 bn in assets locked.
yVaults are capital pools that obtain a yield from opportunities in the market. Vault strategist & guardian get fees.
By pooling their funds, users share gas costs, benefit from automated processes and rebalancing strategies, and don't need to be proficient in DeFi intricacies.
Crypto money for users who don't care about crypto. In 5 tweets π§΅π
Terra is an open and transparent monetary platform built on @cosmos in 2020.
It offers algorithmic #stablecoins & tools to provide users with all they need to manage their money. It's gaining a lot of adoption in Asia-Pacific.
TerraUSD ( $UST) is their biggest stablecoin.
Algorithmic stablecoins are different from centralized ones that hold the equivalent fiat money in reserve (USDT or USDC).
They use automatic mechanisms that maintain the price using arbitrageurs & a 2nd token. Terra uses $LUNA, the network token, to stabilize their stablecoins.