Thread by @Gachengoh

1/ Thread: #DeFi For Dummies 002: #DeFi Basics.

DeFi is a hybrid #smartcontract that combines on-chain code with off-chain proofs.

DeFi relies heavily on cryptography and blockchain technologies.

#blockchain #DeFi
#smartcontracts

2/ Thread: #DeFi For Dummies 002: #DeFi Basics

DeFi is taking on the contractual agreement you find on the global financial system in a permisonless and open way. MakerDao was the first DeFi project started in 2015

3/ Thread: #DeFi For Dummies 002: #DeFi Basics

The #DeFi EcoSystem.

a) #Lending & #Borrowing:- These are algorithmic autonomous interest protocols that allow users to supply protocols like ether etc.Eg: Compound and Aave

4/ Thread: #DeFi For Dummies 002: #DeFi Basics

The #DeFi EcoSystem.

b) #Stablecoins:- Are cryptocurrencies created using smart contracts that are pegged to the US dollar eg Dai, USDT, USDC etc.

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c) #Dexes(Decentralized Exchanges):- Allow exchange of crypto asset in a completely decentralized & permissionless way without giving up the custody of the coins.types of dexes: liquidity pool dexes: uniswap, sushi,and Booked dexes: Loopring

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d) #Derivatives:- Are #smartcontracts that derive their values from the performance of an underlying assets. Eg Synthetics.

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e) #MarginTrading:- Gives the users the ability to use borrowed funds to increase leverage for trading.

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f) #Insurance: Provides guarantees for compensation.

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g) #Oracles: Deliver Data feeds from real world data ti smart contracts. Eg. #Chainlink

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Advantages of #DeFi

-Permisonless
-OpenSource
-Censorship Resistance
-Cheaper
-Built on Blockchain