DeFi digital finance stack - Discussion

[amadeobrands]

@Ulrich

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.

Yes look into dark nodes from the REN Protocol

[arno_nabuurs]

Hello, I have a question. I have a hard time understanding why I would want to lets say lock up 10ETH, to borrow 7.5 ETH assuming I can borrow 75% of my collateral. If I have 10 ETH already why would i lock that up and borrow less ETH, or another crypto lets say KNC? Why would I not just swap the ETH i own?

[Billy]

Hi @amadeobrands, I was following along with the oasis.app tutorial, and I only just noticed the DSR is 0% I thought the interest might cover my tx fees for the tutorial, but not at that rate, lol. What needs to happen for the rate to get back up to prior levels, do you think?

[jimmy_humania]

@amadeobrands would one need to keep metamask connected to the insurance smart contracts always? Or it’s just needed during a sync?

[natanieldp]

this course is really mindblowing. I will explore more!
Anw, @amadeobrands is it okay if I summarize the course and put in my blog? I want to tell my friends but in my native language?

[Timothy]

@amadeobrands thank you for all the effort you put in this course, I really enjoy all the insides you have. Will dip dive later in DeFi after I finish all the lectures and classes set for me.

[Roel]

What I don’t understand is why you would borrow an amount when you have to give a collateral of 150%. Why not just exchange the 67% to the crypto you want to use? In that case you still have the 33% left (and do speculation or whatever).

[Ciaran]

Because then you can’t HODL the asset that you’re borrowing against. So if you believe that the value of your ETH is going to increase then you wouldn’t want to sell it, but you may also notice a money making opportunity in the DeFi community (the stability fee may be very small and a large interest rate in uniswap for Dai for example). This allows you to borrow against your ETH so you can still take the money making opportunity, without selling your ETH.

[Ciaran]

I was hoping the same! Didn’t notice until I’d minted the Dai

[aterweeme]

DAI is pegged to the US Dollar. What are the consquences in the case of inflation or hyperinflation of the US dollar. The DAI I’ve stacked in the past are in that case mostly gone.

[Hamze_Dirir]

Defi Difital Finace Stack - Discussion.

"I would like you to explore the DeFi digital finance stack for yourself and challenge you to spot new building blocks that are essential to the DeFi digital finance stack. Also since the rapid evolution of this DeFi space what other Blockchains are you seeing developing a more mature DeFi infrastructure?

Let’s discuss the DeFi digital finance stack together in this thread:"

I am finding the course very informative and if i thought Bitcoin Standards was an eye opener boy was i wrong. I truly agree with you that sooner we will be having Defi Platforms that will be able to have interoperability to the next level of Defi.

I guess there would be Maker DAO types on other Smart contract platforms and will be different versions of DAI type tokens pegged to either Dollar or maybe something else in the future. Now correct me if am wrong, but as of now Dai tokens can’t be used on lets say A NEO base layer due to not being able to run on there smart contract and that Dai is pegged to ETH. What i see missing which would be a base layer protocol that all Defi Dapps can be able to build on and using the Lego blocks example, so that they would be able to communicate with each other and build on top of each other.

Now I would think is more difficult since different consensus on different smart contracts protocol, different languages being used would make it hard for cross chain data sharing. If anyone can share anything like this if already being worked on or exists already please share.

Thank You @amadeobrands for the very in depth course and yes am sure like everyone my brain is totally fired.

[amadeobrands]

@Hamze_Dirir

Thank You @amadeobrands for the very in depth course and yes am sure like everyone my brain is totally fired.

Amazing man thank you for this feedback.

Check: https://substrate.dev/
I think chains like NEO etc are not really a Blockchain.
In DeFi 201 I will dive deeper in this concept and will look into Centrifuge and other protocols that implement a multi-chain universe pretty well.

I would recommend all to read this article

Centrifuge Chain — the Gateway for Real-World Assets to the Blockchain...

[Hamze_Dirir]

Wow, Okay looks like Defi 201 is more intense lol Looking forward to that in due cause. Thank you for the suggestion i will make sure to read up and have a look at that.

I won’t ask why Neo is not a blockchain (For Defi I think is what you mean) i will save the Shock factor for when am on the 201 Course and then look back at this.

Thanks Again.

[amadeobrands]

@Kapo

Hi Amadeo I totally agree, I am hoping Defi/blockchain will bring freedom and fairer society to majority in the world.

My question, Do we always need to have a bridge or a link or a door between Cefi and DeFi for this to work? Since we need liquidity from Cefi institutions.
And
How do the bankless in society access crypto without Cefi sector access point.

In an ideal world, our financial interactions will move to a zero-trust system … but for the transition period and to educate more people we need to build bridges and pull people in a new and open system full of opportunity and prosperity for all.

[Roel]

I had the same question, with the coming inflation of the dollar (and the Euro), is there an alternative? There is: I found the WBTC, Wrapped Bitcoin on the Etherium ecosystem. there are several tokens backed by Gold, I found DigixGlobal (DGX), but there are more.

[KryptoDr]

I am looking for something, maybe it exist already but I have not found it yet.
Is there a Dapp, protocoll or whatever where I can stake/lend my coins (BTC or ETH) with my Trezor/ledger? So that my coins are still on my address, are highly secured but I can earn profit with it?

[MarcisB]

As @amadeobrands mentioned, Nexus Mutual uses GovBlocks for governance. I looked into it, as I had never heard about GovBlocks and apparently it is a crucial component of DeFi ecosystem.

In their whitepaper they mention the main problems with dApps:

1. Lack of ability to evolve and adapt to change;
2. Lack of scalable P2P human coordination;
3. Lack of technology tools for managing decentralized resources.

Basically, they aim to solve issues that are not present in centralized ecosystems but rise with decentralization.

GovBlocks is built as an open, permissionless decision protocol for decentralized governance powered by a curation network.

The idea is that there are appropriate voting rights for each involved party, and everybody has a voice. Let’s say there is a token and at the moment only miners decide mining fee, which could be unfair to users. However, such decisions are way more crucial for miners, because maybe their whole existence depends on it.
With GovBlocks, miner votes are worth more, but other votes also count.
They show the adjustability of that here:

Once the right model is chosen, different member roles can be created:

Members also gain or lose reputation depending on if the option they voted for won or lost. As the goal of voting is to reach consensus, you help the consensus if you vote like majority. Reputation then influences the weight of your vote in further votings.

An address in GovBlocks can be a part of several dApps. So, there is a

• GovBlocks reputation (calculated over all dApps the address has voted on) and
• dApp reputation (calculated only from decisions in one dApp).

One danger I can see with the first one is that you may build your reputation over all network, then join a small community and influence their decisions in your favor. However, a good overall reputation can indicate general experience and such opinion could be worth more.

GovBlocks also has a function of (n)ary voting (opposite to binary yes/no) - members propose several solutions and the one with most votes is selected.

To create and vote for proposals, users lock in GBT tokens. They are used as gas for running the votings, and the rest is distributed back as incentives.

The whitepaper also explains how GovBlocks aim to solve general issues like Mob Mentality and Relative Majority. That is an interesting yet big topic in itself.

At the end of the whitepaper they explain in more detail how GovBlocks is applicable for insurance and finance dApps and how different parties benefit from it. In short:

• Founders can expand their network faster, as all ideas and voices count and thus more people are willing to join;
• Investors gain trust in projects as they can also participate in governance;
• Users can express their opinion, while gaining global reputation;
• All stakeholders gain value as the network grows more efficiently.

[Ciaran]

dydx balance is offering a good rate at the moment! not sure how long it’ll last though, it doubled over 2 days so it could drop to zero just as fast

[Roger_Palomino]

I would like you to explore the DeFi digital finance stack for yourself and challenge you to spot new building blocks that are essential to the DeFi digital finance stack. Also since the rapid evolution of this DeFi space what other Blockchains are you seeing developing a more mature DeFi infrastructure?

Let’s discuss the DeFi digital finance stack together in this thread:

Thank you so much for showing me the potential to this field @amadeobrands. I didn’t think it could get crazier, but you sure proved me wrong. I found this project here: https://www.ampleforth.org/

But I am still new to inspecting what are the standards or key requirements for me to invest my time and effort into the smart contract. If anyone has advice on that, then I would greatly appreciate that.

[dwulf69]

@amadeobrands

DeFi digital finance stack

I am looking to develop an application to automate flash loans through these finance stacks are there any sources you know that has already done this?