DeFi digital finance stack - Discussion

Defi 101 Course
#590

So far, I’ve only just started learning about DeFi in an organized way through the academy, cause I lacked some basics, but as I follow the space though this year, I understand these as competitors to Ethereum:

  • Algorand,
  • interesting is Zilliqa, especially what they did with Unstoppable domains,
  • but I read Elrond will take it’s share too and
  • everybody is talking about the Polkadot ecosystem.

However I read people alle bullish on Ethereum and see it as the leader in the bullrun, as The One to outperform BTC.

Something completely new I heard of in the course is Decentralised Insurance and I would dive deeper in understanding Nexus Mutual as you mentioned it also as an ‘unfair advadvantage’ and I find it intersting myself.

So much content so well presented, I absorbed it in few days to have an overall picture. Now I can focus in what interests me most. And the most important aspect of learning would be where the DeFi space is going to be able to invest. Thank you.

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#591

Hi Carlos,
thanks for your comment. I also took a look at Blockfi and was amazed by the APY%.
For me the basic risk is the custodial aspect. While in CeFi you are physically sending your money from your wallet to a 3rd party account (having checked in advance fundamentals as far as I could, and praying in silence that all works and you can get your funds back ), in DeFi you provide availability to your Eth$ while they remain IN YOUR WALLET until you finish the smart contract you have previously selected (lending, staking, …).
Is my view correct , or did I understood nothing at all?
Thanx for your patience mate
Salu2

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#592

Exactly, the basic risk is the custodial on CeFi.

Correct, in DeFi you always have the custodial over your funds, because one way or another, the protocols (smart contracts like uniswap for example) one way or another are programmed to be non-custodial (when you create a liquidity position in uniswap for example, you get a LP token that represent your shared portion of liquidity on that pool like eth/dai pair for example).

Now there is always a risk, smart contract bugs, like what happens to Akropolis months ago.

So we could say:
CeFi:

  • Risk: Centralized, Custodial, withdraws could take longer.
  • Reward: high APY

DeFi:

  • Risk: Smart Contract Bugs
  • Reward: Non-Custodial, stable APY, Decentralized, Instant withdraw of funds

Completely correct :nerd_face:, the more you research, the more you will understand, honestly this hole DeFi space is veeeery complex and evolve so fast that is really hard to follow all projects.

I was researching slowly but steady the Ampleforth token, now I’m researching PieDAO, haven’t look on those fresh new tokens that Ivan mention in good morning crypto, man i need days longer than 24 hours :rofl:

Carlos Z

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#593

I think we really need a crosschain decentrilized bridge for DeFi ecosystem, so many assets are not on ETH

#594

Two new elements of the DeFi stack that might be up and coming are already present index style products like PieDAO’s pies and interest bearing synthetic assets such as created by Aave. Polkadot definitely appears to be a key player developing a more mature DeFi infrastructure, both because of its addressing of scalability concerns and because of the products being introduced there. Hakka Finance’s black hole swap has huge potential.

#595

I am really a novice at this and just completed the DeFi 101 course. One of the things I wonder is how the new DeFi will affect the traditional microlending space and what opportunities could emerge as DeFi emerges and blockchain continues to emerge.

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#596

https://api3.org/
Api3 is an important building block to the DeFi infrastructure due to it’s oracle driven data feeds connecting smart contracts to real world data.

DeFi development is constantly expanding on Ethereum, however, Ripple is currently building their DeFi ecosystem.

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#597

There are so many place to choose from to stake or farm DAI. I’ve actually looked at a CEFI w/ BLOCKFI as an alternative.

#598

maybe take insurance at ie nexusmutual?

#599

with regard to impermanent loss, maybe this article gives some more thoughts https://academy.binance.com/en/articles/impermanent-loss-explained

#600

Here are others BCs that implement their own Defi solutions :
. xDai : Ethereum side chain that enables low transaction fees and quick transactions. For now mostly a more efficient way to do a lot of small transactions.
. Polkadot : still in the early stage. Promises blockchain interoperability. Could be the next “defi of defis”.
. Tron : a bit like the “poor man’s defi”. Very active community but not a lot of locked liquidity. Bad reputation as it is seen as “experimental and not professional”. Yet, Tron keeps surprising people by its dynamism. A defi space not to be underestimated.
. Eos : Ethereum defi twin. Eos features a full defi suite (stable coins, lending, wallets, DEXs).
. Cosmos : similar to Polkadot. A “multi chains” defi solution where Cosmos is the hub between multiple blockchains.

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#601

@amadeobrands
I see that waves technologies is very interesting as orchid or melon, their evolution is remarkable.
Thanks for the course you are a good teacher, but i think it will need an update soon)

#602

@amadeobrands

Hoi Amadeo,

Many thanks for your course and the great insights into DeFi. I guess thats why they call it 101. A real eye-opener! Wow, the more I roam around the more I discover.

Don’t know if you know these people at Gauntlet.network, but came about this Company in the DeFi blockchain developer eco system. They were not in Defipulse.com nor DeFiprime. They are a DeFi simulation platform. Very interesting party with interesting use cases and some heavy hitters where it comes to knowledge and experience in the DeFi industry. Risk assessment and stress testing are their key areas.

“Gauntlet is a simulation platform for building financial models of blockchain protocols and applications. This ensures they are resilient to attacks by bad actors and that honest participants are rewarded fairly”.

This company was used by Compound. Looks like a serious contender in moving new building Lego blocks onto the current existing Ethereum Blockchain eco system. These are the people that will help BlockChain Developers hit the bullseye in the near future. With so much talent there this start up will score big.

https://gauntlet.network/

https://finance.yahoo.com/news/gauntlet-network-raises-3-3-174102625.html

I keep going down the rabithole ;-). So many interesting projects.

#603

Dispute resolution protocols are very interesting additions to the DeFi space in my opinion.

Polkadot and Cardano could both come up with some pretty good DeFi solutions in the future.

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#604

Tks Amadeo

Not having a clue about finances in general makes it difficult for me to explore the defi finance stack field with any sense of global understanding. If I don’t understand something completely then I wouldn’t invest in it.

#605

DOT (polkadot) and now by extension POLS (Polkastarter) are very interesting developments. These are on their own chain which is exciting to see. That is development off of the Ethereum chain and onto their own, a sign of the DeFi space maturing (it is still very young, but these side chain developments will foster more development and innovation).
Recent developments in the NFT space are also very exciting and have huge value for the DeFi space allowing for tokenization of “real-world” assets for use on chain.

#606

Okay - I think I found a good one- or perhaps time will tell- or maybe some of you will chime out in too!

Here’s what I got:
https://reef.finance/

Are surfacing as worthy of a closer look, perhaps you can agree!

n maybe one can confirm or dispute or heard that expect launch n mid-Q12021

Now in Binance Launch Pool farming Polkadot’s < Dots > to Stake BNB and BUSD.

What I understand is it claims to be your gateway into DeFi; essentially sit on top of the DeFi layer and interface with various centralized n decentralized exchanges.

Their profit model has them pay out, say your 10 ETH with a chunk paid in their Reef tokens which can be sold or further staked. The price of portal with a common wallet and analytics!

By filling or aggregating orders into its software wallet that apparently easily getting in and out of positions that may spanning disparate sources.

Claiming to find you the best deals according to risk tolerance Sounds simplifying and elegant sounding yet if it can overcome the challenge I faced as the newb That I still am to take me from ‘risk adverse’ into the interest through to an integrating gateway to interact, though inspecting the code and amass easing the risk is a good thing to always do for yourself.

Perhaps with same widespread transparency almost sound A.I.-like in finding ‘the deals’.

The promise to making DeFi easier-going, with access to liquidity!

Other aspects I find fascinating is, from within this Reef gateway, one can login into one’s own user account on your own specific exchanges and interact with new and existing DeFi projects perhaps too whereby all positions can be analyzed and recommendations made by the Reef Operating system.

working as Solidity implementation on Etherium and then working in Polkadot for expanding from there, their interoperability and monitoring across Blockchains.

-Dimitri

#607

Thank you for the videos, really enjoyed them. The DeFi insurance really strikes a note with me having worked in the insurance industry previously. Would like to see DeFi insurance terminology/jargon simplified further for the mass market.

#608

It does seem that DeFi is advancing more. Definitely a lot more innovations in this space. I think DeFiChain has potential.

#609

https://coindefi.org/

Coin looks interesting with their cross-chain approach. Excited to see what this project pulls off in 2021