DeFi digital finance stack - Discussion

[FrankB]

Amadeo,

What I have been wondering about all along is not so much the safety and superiority of trustless DeFi systems, as compared to traditional CeFi systems, but rather the problem of whether and to what extent it is realistic for us to expect that average people will be able to trust themselves in maneuvering that world of DeFi systems. Not everyone takes a course on DeFi systems, and many people would probably already feel uncomfortable in trusting themselves when setting up a nano-ledger hardware wallet. So how would such people enter into decentralized insurance contracts, for example, without an insurance agent who explains to them the various available options and reassures them in the end that they made the right choice? Trusting in algorithms and your own ability to figure things out may work for you and maybe also for me, but will it work for everyone? In other words, what I am wondering is whether that whole decentralized world that we are supposedly entering may have to be given a more traditional appearance in order to be widely accepted.

[DeCryptolorian]

Hi Amadeo,

I am enjoying Uniswap, thanks for sharing! I play Axie Infinity and gain SLP tokens, which I just added to a liquidity pool. I am pretty excited about at least understanding the concepts enough to have the confidence.Thanks for this!

Dustin

[John_Okoye]

This is more of a portfolio management tool question. Is there a dAPP that will allow me to create my own DYI crypto-mutual fund?

For example let’s say I create a fund called ‘African development’ and in that fund I place BTC, ETH, AKOIN, DASH, and ETN. The fund is distributed 25%, 10%, 15%, 30% and 20%.

Now, of course, there could be many more tokens included in my DYI mutual fund.

My investment strategy is dollar cost averaging (DCA) and I don’t want to have the pain of buying each token each month but rather just make one purchase and let the engine do the rest for me.

Have I explained this need of mine clearly enough? Is there a product already out there that will meet this need or could be tweeked at bit so it’s abstraction layer appears more similar to the standard mutual fund model?

[Gae_mon]

Hello Amadeo,
I liked your course and I find your voice really helpful for focus.
I’d previously dive deep into the different projects. I also entered a liquidity pool on Uniswap. I found this Protocol really Amazing and I’ve already commuted my liquidity in V2.0 and I am really exited about my future use of this decentralised tool, notably after your following release of the DeFi 2.0.1 course. I am very grateful for your participation in Ivan’s Academy. See you on The morning chat soon.
Dours a.k.a. Gae_mon

[Onstar59]

Amadeobrands
Thank you very much. I am really learning a lot in this course.

[amadeobrands]

@DeCryptolorian

Hi Amadeo,

I am enjoying Uniswap, thanks for sharing! I play Axie Infinity and gain SLP tokens, which I just added to a liquidity pool. I am pretty excited about at least understanding the concepts enough to have the confidence.Thanks for this!

Thanks man DeFi 201 coming up

[Fati]

There is a decentralized protocol to collectively build insurance products called Etherisc. They are creating different insurance prototypes that range from collateral protection for crypto-backed loans to crop loans for farmers. I can see such financial products evolving in time to offer secured loans backed by personal property such as a farmer’s land or other items of value. We will likely have similar financial products that exist in mainstream today.

[Anna]

All i can say for now is how much i don’t know about this newly emerging defi eco system…lots to learn, so i’m looking forward to explore it more! Currently i’m staking MCO’s on crypto.com to get me started and used to crypto meanwhile i’m learnig how it actually works

[Ferdinando85]

Hello people! This topic is very fascinating but I am new to this. What I find hard to wrap my head around is how fees are working in this system?
I find it very confusing. Can someone direct me to more resources about this topic? thanks

[Beasley23]

Hi,

So when you say spot new defi building blocks, does that mean find them, or think of stack concepts? To be honest this has been a lot to digest so I may sound ridiculous… Since I am a recent graduate, I have been thinking about debt consolidation and student loans a lot lately. Do you think that this concept could be considered a part of the category? There could be incentives for lenders and borrowers, as well as help borrowers transition from ce-fi to de-fi.

In regards to the second question, according to a Forbes article, Fitzpatrick claims that “Derivatives: During Q1 2020, the total futures crypto trading volume surpassed $2.1 trillion, an increase of 314% from Q4 2019, showing signs that there is plenty of room for growth” (May, 2019).

[welowy]

Very intresting, thanks Amadeo, great content!

[Ironjade]

Question are all exchanges in defi have the same price and if they do is it because some protocol or consensus.

[Ciaran]

I’ve been thinking about this as well! When things start linking to real life assets more then I would love to see (/be a part of the development of) something very similar, but for all assets. People could maybe even choose their own asset allocation balance that just automatically gets paid into and rebalanced periodically.

[Ciaran]

Not sure it would count as a new purely DeFi project, but Plutus is pretty new and it has it’s own DEX. Seems very similar to Crypto.com

[Nev]

@amadeobrands Thanks for the course. Super informative and fascinating. I can see that there is a lot of power within the ecosystem and with it being so young, I can only envision what will happen in 5-10 years. Right now I see that it’s mostly limited to a few components of what’s possible, but as more companies get on the blockchain and start developing their own tokens and products I can see this space exploding.
When I was learning about stablecoins and the collateral required I was a bit shocked at the rates. But now that I’ve had a bit of time to think about it, I can almost see it as perhaps locking money in a CD for example and then borrowing against it to access liquidity… sort of like a secured loan. Part of me wonders whether anyone is working on “crypto credit score” where unsecured loans will become a thing here as well. I’m curious to learn your thoughts on that. The second thing, which is sort of a question to see if I understand some of the lending/borrowing comes from loanscan.io reply I saw you post… it appears that there is an opportunity for arbitrage between the exchanges, where I can lend crypto on one platform for say 4%, then borrow against it at say 3% then swap it for another stablecoin and then lend that one on another for 7% and use proceeds from same amount of crypto (in USD terms) to a) pay off my loan and b) basically earn income on top. Am I wrong in thinking this is possible? Thanks again!

[Ulrich]

@amadeobrands Goede avond Amadeo. Thank you very much for the amazing course. I’m enjoying it every step of the way and learning a lot. Due to time constraints I won’t be looking at any new projects now, but I will be doing some lending of my crypto assets just to see how the whole interest gaining procedure works.

One remark that may be interesting. I told my parents about DEFI and what it’s used for. They were interested, but also they struggled to understand how everything works and why it exists. I have a feeling that the next project that will create a very nice to use and easy GUI, together with a decent advertisement campaign ( where you can take fiat payment and immediately convert them into ETH, DAI, etc in order to implement it in DEFI lending ), will take this market by storm.

The more we head into the next leg of the great depression 2.0, the more DEFI space will grow and develop. Now this system just needs to have a “human face” in order to convince the first time crypto buyers ( who already went through a learning process ) to look into it. I’m teaching 4 of my friends to invest in cryptocurrency and will be definitely showing them how to get the best out of DEFI, but now it’s a whole new world for me.

Again dankjewel for the amazing course!!!

[amadeobrands]

@Ulrich

The more we head into the next leg of the great depression 2.0, the more DEFI space will grow and develop. Now this system just needs to have a “human face” in order to convince the first time crypto buyers ( who already went through a learning process ) to look into it. I’m teaching 4 of my friends to invest in cryptocurrency and will be definitely showing them how to get the best out of DEFI, but now it’s a whole new world for me.

Amazing man
Graag gedaan and keep up the good work m8

Ik ben ook overtuigd dat DeFi huge gaat zijn.

[Ulrich]

@amadeobrands Amadeo, again wonderful information! Thank you very much.

As a huge fan of privacy coins, I wonder if there are ways to provide liquidity ( and off course earn some income ) from my Zcash, Dash and Monero. I will try out to put my Ethereum to work asap. But I hold more privacy coins than anything else at the moment.

Thanks!

[CeesQ]

Hi Amadeo - thanks for your great overview. Very exiting to see finance open up to everyone: a cause certainly worth contributing to imho.

As most of the available collateral is in BTC, yet most of the available DeFi functionality is in ETH, I see interoperability as a long-term necessity and short-term opportunity. So far, the only decentralised BTC–>ETH bridge I’ve found is RENVM.

What’s your thoughts on interoperability in general and REN specifically for this purpose?

[jimmy_humania]

Hi @amadeobrands Thank you for sharing your DeFi an crypto knowledge with us. The videos are very resourceful.

IMO, Hedera Hashgraph (DAG) has strong fundamentals/experience/principles to revolutionize DeFi which orginated through ETH.

The reason being, the gas fee model, security, speed (tps), scalability, hard forks, finality/probable confirmation on ETH.

Of course, both can/will be interoperable in the future. But in terms of efficiency and enterprise use cases i.e consensus and file services Hedera currently has an good edge over ETH.

Would love to hear your thoughts/opinion about https://www.hedera.com/ . Probably, including a course about DAGs? @ivan

P.S: According to my research and understanding Hedera has better-decentralized governance, technical risk lower, and it’s currently open code review. Plus, they have plans to go open source progressively and in a steady manner.