Day3
ICO
ICO stands for “initial coin offering,” and refers to a method of fundraising capital for early-stage cryptocurrency projects. In an ICO, a blockchain-based startup mints a certain quantity of its own native digital token and offers them to early investors, normally in
exchange for other cryptocurrencies or stables.
This kind of information for ICOs comes with research and can be accessed through certain research tools.
ICOs enable startups not only to raise funds without giving up equity but also to establish a community of incentivized users
who want to see the project succeed
While ICOs can offer an easy funding mechanism and an innovative approach for startups to raise money, buyers can also benefit from both access to the service that the token confers (usecase)as well as a rise in the token’s price
If the projects succeeds.
These gains can be realized by selling the tokens on an exchange once they’re listed.
What are yield aggregators, and how do they operate?
A thread 🧵
Yield aggregators are also called auto compounders or yield optimizers, and they play a crucial role in the yield economy by combining different defi protocols
and strategies to maximize investors' profit.
Let me explain what I mean by this, just like how these ponzi sites promised returns on investment. Then these resources are pulled together and invested in different businesses, as the case may be, and then returns are distributed to these guys based on the agreement made.
A Defi protocol can only be said to be complete when there is a smart contract deployment.
What really are smart contracts?
A short thread🧵
Smart contracts are tools that can automatically execute transactions if certain conditions are met without requiring the help of an intermediary company or entity.
What the smart contract does is cut that central body of authority.
It is more like the reason why decentralization is possible.
Whether it is obvious or not, intermediaries permeate our digital lives.
Even simply sharing a picture with friends online requires the services of an intermediary like Facebook or Twitter. .