ChainLinkGod.eth Profile picture
Chainlink Community Ambassador πŸ¦†πŸ¦†πŸ¦† Decentralized Middleware Realist πŸŒβ›“οΈ Opinions are my own, derived from in-depth research and due diligence
7 Jul 20
1/ @SergeyNazarov recently gave an excellent presentation on how @Chainlink is creating a fundamental shift in the way contractual agreements are crafted and secured

Welcome to the Evolution of Smart Contracts and Cryptoeconomic Security: A Thread πŸ‘‡
#Chainlink $LINK
2/ Before we dive into the details, let's set the context for just how instrumental contracts are in our daily lives

Contracts are written agreements between multiple parties that enable humans to collaborate

Everything you own exists because there was a contract involved
3/ First we had the Social Contract, this created the initial foundation of our modern society

Settlers of the new world in the 1600s (including the Mayflower) had a social contract between each other to ensure their survival and set the ground rules of their new civilization
Read 31 tweets
3 Jul 20
There is approximately 3x more $cDAI than $DAI circulating

Do what you want with that information, but I would be cautious

Expect a lot more collateral to be onboarded onto Maker to try to keep up with demand, maybe we'll even see $LINK collateral within our lifetime πŸ€·β€β™‚οΈ
This is essentially the key issue here

A liquidity crunch of $DAI could happen where people try to pay back their $DAI loans, causing more demand than supply available which causes $DAI to skyrocket in value, which creates a growing positive feedback loop
Read 3 tweets
25 Jun 20
Please take caution and do your due diligence before using any #DeFi protocol or farming that yield πŸ‘¨β€πŸŒΎ

This is all still very new and we're figuring out what works, that being said not all protocols have equal risk levels

Thread on the risk appetite spectrum for #DeFi below πŸ‘‡
LOW

Use Decentralized Exchanges to buy/sell tokens, then simply hold them in your wallet

Uses DeFi applications for a only a brief moment in time, limited attack surface, but avoid infinite token approvals!

@UniswapProtocol @KyberSwap @1inchExchange @DEXAG_TokenWire
MEDIUM

Lend tokens to a Money Market or Automated Market Maker and earn interest / trading fees

This and below have higher risk as your funds are held in a smart contract that may have an admin key or governance risk

@compoundfinance @AaveAave @CurveFinance @BalancerLabs
Read 7 tweets
21 Jun 20
Wew #DeFi yield farming is addictive

Deposit $LINK to @AaveAave
Use as collateral to borrow $WBTC
Deposit $WBTC to @CurveFinance
Recieve $crvRenWSBTC LP token
This LP token is 36% $renBTC, 25% $wBTC, 39% $sBTC
Stake pool token on @synthetix_io
Farm $SNX $REN $BAL & $CRV 🀯
I currently pay 1.25% APR to borrow $WBTC, but earn 4.21% APY from curve.fi/sbtc trading fees and 15.03% APY from $SNX + $REN, and soon $CRV and $BAL once those tokens launch

Through this, I have 100% exposure to $LINK, 0% exposure to $BTC, just farming the profits πŸ‘¨β€πŸŒΎ
Also notice how I'm only using 50% of my borrowing power on Aave, risk management is key, nothing here is risk free

More information on what makes this wizardry possible below
blog.synthetix.io/btc-yield-farm…
Read 3 tweets
9 May 20
1/ As promised, here is the thread giving context into each of the amazing slides created by the @Chainlink team created and which @SergeyNazarov recently presented with

The full slideset can be found here
drive.google.com/file/d/1wAj6QE…

#Chainlink $LINK
2/ ALL blockchains suffer from the "Oracle Problem"

From Ethereum to Bitcoin to Hyperledger to Tezos to Cosmos to Harmony to Kava to Conflux to Polkadot to Zilliqa to Icon to Hedera Hashgraph to Ontology to Solana and beyond

They all require oracles for external data
3/ Smart Contracts (SCs) on their own have zero access to the external real world data they need to execute including market data, events data, retail payments, bank payments, and more
Read 29 tweets
30 Apr 20
@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani While Chainlink does heavily rely on the Ethereum network today, $LINK is far from correlated with $ETH, in fact it's the opposite

The economic bandwidth available with $ETH would be completely uncorrelated with the growth of Chainlink, and this is a problem for multiple reasons
@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani As Chainlink adoption grows, the tokenomics will directly cause the token price to rise, increasing the economic bandwidth to enable more adoption, it's a positive feedback loop that wouldn't exist using $ETH
medium.com/understanding-…
@lastmjs @alexgausman @Foobazzler @antiprosynth @reeeatine @KyleSamani Having VCs subsidize the network would centralize control and is completely non-sustainable, having an allocation which can be used for growth is a huge war chest that teams like Synthetix has proved to be essential to adoption, $LINK is the kickstarter and enabler of growth
Read 9 tweets
12 Apr 20
Don't forget why we're here frens

It's not just about personal wealth, but about breaking down the barriers of trust and information asymmetry in the global economy

A permissionless level playing field driven by autonomous externally-connected Smart Contracts

#Chainlink $LINK
Read 9 tweets
4 Apr 20
It seems many people think $LINK won't have cryptoeconomic security until staking is released

This is not true

#Chainlink oracle networks today are secured not only by nodes reputation on the line but also by the opportunity cost of losing future income if nodes act maliciously
Malicious nodes would be removed not only from the oracle network they attacked, but ALL oracle networks they serve as they have proven themselves unreliable

These nodes lose ALL future revenue in the #Chainlink economy, which is substantial given the P.A. and utility of $LINK
The current tranche of Chainlink nodes used in production by #DeFi projects on Ethereum mainnet today are security-reviewed, sybil-resistant, and fully independent nodes which are run by leading blockchain devops and security teams

feeds.chain.link
Read 8 tweets
3 Mar 20
Never ceases to amaze me how little due diligence your average investor performs, even the thot leaders

All the info is available for anyone to find, but you have to be willing to deep dive into the never-ending rabbit hole while keeping an analytic yet open-minded point of view
A major reason why $LINK was hidden from normies for so long is because of the major misinformation campaigns we performed in the early days

Sorry not sorry, but this is exactly why you need to DYOR, the incentives were staked against you as we accumulated linkies on the cheap
Don't take my word for it just because I'm a prominent $LINK account, please do your own research and think for yourself

In time you will understand and contextualize the truth for yourself, because if you don't, you will sell FAR too early

My ducks are in a row, are yours?
Read 3 tweets
1 Mar 20
Been reading into the DeFiMoneyMarket.com whitepaper some more

The DeFi Money Market protocol tokenizes real world assets and enables anyone in the world to earn stable interest on their savings in a permissionless manner

$ETH $LINK #DeFi
The smart contracts reside on #Ethereum enabling composability with the rest of the #DeFi ecosystem

Attestation of real world assets backing the DMM ecosystem and the valuation of such assets are securely delivered by a decentralized #Chainlink oracle network
Details about the real world assets backing DMM tokens are kept on-chain for transparency (loan information is anonymized)

DMM tokens conform to the ERC20 standard and are overcollaterlized

Users purchase DMM tokens with $DAI or $USDC stablecoins (soon other crypto like $ETH)
Read 10 tweets
14 Jan 20
Following the lead of @CamiRusso, I Just deposited 1 into each of the top #DeFi lending platforms including

(@MakerDAO DAI Savings Rate) 6%
(@compoundfinance) 5.88%
(@bzxHQ) 6.13%
(@AaveAave) 6.65%

I will check back in a year and compare gains Image
Note: Interest rates are not static and will fluctuate throughout the year

You can check the progress on chainlinkgod.eth (and even see my Chainlink meme NFTs ;)
This is a good time as ever to compare the UI/UX for each of these apps

Chai is very simple and sweet
Compound is as well, showing you only what you need
Fulcrum isn't terrible but a little harsh on the eyes
Aave has a good user flow with different pages for different actions ImageImageImageImage
Read 5 tweets
25 Nov 19
Connectivity πŸ’Ύβ†”οΈβ›“οΈ
Privacy πŸ”’
Scalability 🌐

These are the three main roadblocks preventing #SmartContracts from reaching mass adoption today

#Chainlink $LINK will play a major role in bringing this space to the next level, making Web3.0 a reality

A thread ⏬
Connectivity is the main problem that Chainlink tackles

Smart Contracts cannot natively access data outside the blockchain, they need an off-chain Oracle to fetch the data and bring it back on-chain

More details about the connectivity problem below ⏬
The next major roadblock is Privacy, it is a deal-breaker requirement for any level of enterprise adoption of Smart Contracts

Large institutions cannot leave public breadcrumbs about their sensitive financial dealings on a public immutable ledger that can be observed by anyone
Read 22 tweets
24 Nov 19
The key value of #Blockchain is immutable state and censorship-resistant access to that state

Unfortunately state changes are limited to direct user inputs, which isn't ideal for contracts that affect multiple parties

This space is still missing the other half of the equation
What we're missing is a trust-minimized and provably secure off-chain agent that can reliably trigger a state change on the behalf of the contract's beneficiaries

Importantly, that state change can be based off of the real world data ALL traditional real-world contracts require
I think you know what I'm getting at

>>> Oracles <<<

The vast majority of useful #SmartContracts will need secure oracles as the data they require to execute is off-chain

#Oracles are the bridge between the on-chain world and the off-chain world

The gatekeeper so to speak
Read 14 tweets