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
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
4- Dapp: an app that is built on decentralized technology, rather than being built and controlled by a single, centralized company. think of the apps built on app store! but add decentralization.
Back to DeFi, automated loans negotiated directly between two strangers--
5- in different parts of the world, without a bank in the middle.
Sounds insane Right? Many of these Dapps are live already, whether a borrowing lending protocol as @compoundfinance or other that create stablecoin @MakerDAO and alot more of financial services
6- What differentiates DeFi from the traditional banks?
-At their core, the operations are not managed by an institution and its employee instead the rules are written in code.
-The code is transparent on the blockchain for anyone to audit. This builds a different kind of trust
7- -Dapps are designed to be global from day one, Whether you’re in Texas or Tanzania, you have access to the same DeFi services and networks.
-“Permissionless” to create, “permissionless” to participate, anyone can create DeFi apps, and anyone can use them. Unlike finance today
8- -Flexible user experience: i have pain myself when dealing with bank stuff with the delays, routine and so on
-Interoperable — new DeFi applications can be built or composed by combining other DeFi products like Lego pieces
Intrigued? let's take a look on some of them
9- *Stablecoin and Decentralized Reserve Bank: @MakerDAO with their DAI which is pegged to US dollar, backed by collateral in the form of crypto ( we talked in details about it in the previous summary.
*Borrow and Lend: Compound, a blockchain-based borrowing and lending dapp
10-you can lend your crypto out and earn interest on it. Or maybe you need some money to pay the rent but your funds are tied up in crypto investments? here is a solution. (with a lot of perks than banks)
*Automated Token Exchange: Uniswap, crypto exchange run on smart contracts
11- *Synthetic Assets: Synthetix, it lets users create and exchange synthetic versions of assets like gold, silver, cryptocurrencies and traditional currencies like the Euro. Backed by excess collateral locked into the Synthetix contracts.
*No-loss savings games: PoolTogether
12- So what’s next for DeFi?
Money and finance have been around in one form or the other since the dawn of human civilization. Crypto is just the latest digital avatar, we might see every financial service that we use in today’s fiat system being rebuilt for the crypto ecosystem
13- We’ve already seen asset issuance and exchange, borrowing, lending, custody, and derivatives built for crypto.
a trend we’re seeing is better user experience,
for example: In the future, we expect that crypto wallets will be the portal to all your digital asset activity-
14- just like an internet browser today is your portal to the world’s news and information.
Imagine a dashboard that shows you not just what assets you own, but how much you have locked up in different open finance protocols–loans, pools, and insurance contracts.
15- we’re seeing a quantum leap in what’s possible when it comes to the functionality of money.
The DeFi space will at first play catch up with today’s financial services industry. But over time, it’s hard to even fathom what innovations will come about -
16- when the power to build financial services is democratized to anyone who can write code.
#Week_3: #P2E, Day 2: Level 2: Game Monetization, The Promise of Play-And-Earn by @0xRyze
A glance into Game Monetization & how to keep games running
@AxieInfinity has been making headlines in the news for variety of reasons: its token’s price action, how it creates work-
2- For people globally and its incredible profit surge, surpassing the revenue of big projects (84.9 million USD in funds for its treasury! as of jul 2021)
Games as Products, server costs, the cost of hiring engineers and developers to build them, etc.
3- Keeping a (Game’s) Engine Running;
Game developers have a choice of how to monetize and fund their games. They must find ways to (1) fund initial development, (2) make revenue from the game that outstrips expenses.
Breaking down different incentives to monetize it;
One of the greatest takeaways for crypto natives from the bull market of 2021 is that the next million crypto users will be onboarded through “consumerism”, not DeFi,
2- Meaning the stuff which are consumed, used regularly, that the average person in the street can understand it; unlike finance.
So there will be a generational opportunity to participate in this paradigm shift, for those who pay close attention.
Here are some thoughts
3- The state of crypto gaming | What does crypto gaming look like today?
*the player point of view (POV);
-P2E for now is just yield farming with extra steps.
-Gaming Guilds resemble factories hiring laborers to perform small tasks
#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 -
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
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.
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.
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
terms repeated in the previous summaries: Mcap: price multiplied by the amount of tokens that are currently in circulation.
FDV: price multiplied by the total amount of tokens that will ever exist
2- Smth interesting here, we can consider Market Cap as a measure of public $ buying= demand, while FDV is a measure of supply.
As demand increases for unlocked coins= market cap UP, FDV increases proportionally, even though demand for the locked ones didn't necessarily increase
3- let's introduce a new term: Bullish unlock?
if unlocks increase supply but not demand, how does a bullish unlock happens?
locked tokens can have an active market of their own, ppl buy or sell locked coins with a discount to the market price, Consider it OTC for an allocation,