DeFi digital finance stack - Discussion

Defi 101 Course
#288

Can anybody explain to me why anybody would actually lend money through a smart contract?

I get that people lend money every day for all kinds of things… but I yet have to understand a good example for why you would do that with for example your ETH.

Let’s say: you put in 1 ETH to lend 0,5 ETH?
Why would anyone do that? I heard in the course that people would do that to trade leverage… but why wouldn’t they just trade leverage with their existing 1 ETH?

Would love to see some clear explaination or a clear example to get that concept.
Thanks a lot in advance

Max

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#289

Hi! Are there any ways for the front end website of the DeFi smart contract to be compromised or hacked?

Let’s say I have a DiFi insurance but can’t make the claim, since I can’t interact with the smart contract.

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#290

I recently came across Cardano and have become interested in the project. Its all over the Defi space at the moment and allot of FOMO is beginning to occur. I came across this article which gives a good incite into the project even if some of the sentiment is old. https://hackernoon.com/is-cardano-the-ethereum-killer-9uc63230. One area of the project that this article doesn’t mention is the development of Atala Prism. This offers a decentralized alternative to the area of digital identity. As a newbee to the defi space one area that bugged me was the process of identification on different exchanges. The scanning of documents,dealing with a third party in a video call and finally waiting for acceptance. I have no control over my identity. Cardano solution to create a Digital Identity is great. Other features that I find compelling is Atala Trace which brings blockchain based solutions to business supply chains and Atala Scan which establishes product provenance and auditability in these chains. This ecosystem has some real world solutions and I feel will help to attract more business to the space. The one area that I think will be difficult is its interoperability with evolving systems like Ethereum which are evolving rapidly. Every week there is a new project or challenges, especially the manipulation of lending protocols. I suppose when Cardano rolls out goguen they will have learnt from whats happening now. Thanks for the great work your doing Amadeo. Love the course…

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#291

ok so let me if i understand this properly.

  1. In the MakerDao protocol you can lock your Eth as collateral to create a synthetic asset (Dai) and your Dai is pegged to the USD at 1:1 value. Am i right in thinking if you had say 100 Dai in a liquidity pool. Could you borrow that back to yourself and use the interest value of the Dai to increase your collateral position in Eth? effectively hedging your position against the possible loss of value in Dai when it comes to repaying the loan.

  2. Amadeo or anyone else what are your views on DeFiChain blockchain https://www.defichain.io/white-paper/

A blockchain specifically for DeFi that promises faster, cheaper and more secure transactions…
what are your thoughts please?

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#292

Sitting here and wondering the same. Or is this 150% lending solution just because the space is so young and the liquidity is not big enough to support lower amount?

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#293

Ren is interesting, Balancer, Ser, and Curve Finance as well. It will be intriguing to see how the space will look like in 1-2 years which of them taking a huge spot in the market and which new one that will appear and which one that will disapear in the fog

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#294

HAAA. Ok. GOOD to know
Thanks.

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#295

Great course! After my researching I came across with some perspective projects in my opinion in the current DEFI market: BAND,REN,KAVA,LEND,ELROND and HANDSHAKE. I would like to learn more about Flash Loans and their use cases on Arbitrage.See you in the DEFI201 course!

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#296

@amadeobrands What happens if because of very high volatility in the collateral asset price the loan goes into ‘in liquidation’, but after a few min/hours later the collateralize d asset returns back to its previous value. Does the loan still remain ‘in liquidation’? or is there like a time lag before which a loan goes into ‘in liquidation’?
How is the price of a collateralize d asset moving up by 80% a risk?
Thanks

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#297

I’m seeing polymath become more and more visible. It isn’t new but it is evolution. I can see KYC is going to play a big part in this market as it does in most financial markets today.

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#298

Greetings,

I really enjoyed your course on the DeFi fin stack. I’m trying to compare the ETH DeFi space with the EOS DeFi space. What is your take on VIG? Do you see it as a decentralised stable token?

I apprecriate your feedback.

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#299

I recently spotted Kardia Chain on the DeFi network. The team are trying to engage Asean Government, shifting to decentralized platform for smart contract which in another way boosting mass adoption.

On another hand, they allows sports fans to adopt KAi which is the digital currency for Kardia to make payments.

I see this initiative towards a positive enhancement of DeFi community. Furthermore, KuCoin has done their due diligence and going to list it in their exchange.

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#300

I’ve seen Aave really pick up adoption recently as they begin to add in more bricks to their lego set :thinking:

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#301

Thank you for the excellent course.

What about Kava as a hidden gem in the DeFi digital finance stack?

It was a challenge to go through all of the links that you provided. I did hit a paywall on one.

I am still a bit overwhelmed by all I was introduced to and confused by the nuances of yield farming. Where can I find more expert information on how this works and its risks?

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#302

Due to religious matter, interest is not allowed , an example, countries of the middle east, i think from my point of view is a potential market for defi if a project can replace the collateralized loans with interest, with a similar product that replace interest something else

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#303

Hi Amadeo,

Thanks for the valuable education.
The “Dai Savings rate” at 0% for a long time on the oasis.app. What can be done to change that?

Thanks,
Steve

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#304

Uniswap liquidity pool gives out uni-v2 tokens. Can’t wait for uniswap to actually make their own token. I think it will moon very quickly. Anyways, there are some defi projects out where you can take these uni-v2 tokens and put them into the defi project liquidity staking to earn rewards. One that I am in right now is pamp.network. It has been great for me as the staking program is amazing. It gives incentives for hodlers and it penalizes the sellers. I am also really excited to see what defi projects get built on cardano. They have really good potential and honestly, I know eth 2.0 is coming out soon but the gas fees are just outrageous. Spending 10-15 dollars in just gas fees to approve and intergrate your currency into a protocol is just purely exhausting. I have been using defi projects on tron more now because of the eth fees.

#305

This gives amazing ETH Long opportunity.
You lock ETH get some free DAI then invest it into COMP/LEND

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#306

Huge red flags man …

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If you got in and made 900x … get out…

#307

Can you explain further why you think I should get out? I already took out my investment and everything I’m using now is pure profit. I talk to the devs on telegram and they are very help people.

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