Impermanent losses are really dirty secret of the DeFi DEX’s like Uniswap. Actually If one asset’s rate growths more rapidly than the other one the liquidity provider will be inevitably impacted by the IL. It is simple consequence of the double pool striking.
There are some recipes are offered to sort the problem. One seems to be very simple but I didn’t read about. Pool can charge success fee from non active traders, which earn by passive way.
What do you think, guys?
Hi Amadeo
Thanks for the course on DeFi.
I like Allianceblock as they are working to bridge Traditional Finance and Decentralized Finance, bringing much more liquidity to the DEFI space by opening the channels of communication and connectivity with the CEFI space. I know this is not a pure DEFI project but it can greatly increase the DEFI exposure to the masses.
Another one I like is THORCHAIN. They are a MULTI-CHAIN Decentralized Liquidity protocol. The ability to have multiple blockchains communicating greatly increases Liquidity in the space.
Never thought deeply about our CeFi Financial System and how it really works until the financial crisis.
It seems that DeFi is trying to emulate some features of the CeFi system in a way that appears dangerous.
I do understand that the banking and financial system of Centralized Finance crashed the economy with CDOs and CDLs / derivatives you were speaking about in the Synthetix portion of the section.
Most things in finance we take for granted, that is how Cefi takes advantage of the masses.
all these entities are essential for an healthy crypto system.
Never thought deeply about our CeFi Financial System and how it really works until the financial crisis.
It seems that DeFi is trying to emulate some features of the CeFi system in a way that appears dangerous. I do understand that the banking and financial system of Centralized Finance crashed the economy with CDOs and CDLs / derivatives you were speaking about in the Synthetix portion of the section. Most things in finance we take for granted, that is how Cefi takes advantage of the masses. Also, why peg to the dollar or any government fiat? It is being devalued every time the fed prints. BTC and Blockchain Stocks are being accepted in he mainstream because we do not trust our own fiat.
A healthy crypto system should be decentralized to maintain an independent value - maybe as i learn more my initial thoughts will revise. I am new to these crypto topics but I have seen two crashes that crushed business, construction and real estate for years. Following derivatives is folly.
Enjoying the topics - looking forward to the second half of the course.
I have recently looked into some of the offerings on Bancor Network. There is the potential to stake without the threat of Impermanent loss through one sided liquidity.
I still question al lot of these financial tools, many of them exist in the CeFi world mainly to confuse people into bad decisions.
I’m going to be critical here.
The only difference between CeFi and DeFi is that Defi is decentralized, I honestly do not see any major difference.
What is worse for DeFi, there are additional risks, the spreads are wider, fees (at least for ETH chain) are higher and ultimately all leads to run for yield.
Lots of rug pulls for new project also speak against DeFi, it is tough environment which ultimately is going should lead to DeFi Dao.
And then there is a problem of taxation, if you are going to be taxed (on average) 40% at DeFi and 25% on CeFi then it is difficult to make decision what is better for end consumer.
They will cover the IL by minted BNTs. What will happen If the rate dramatically decreases? You don’t have enough time to sell your BNT and restore losses in more stable currency.
I agree, the gas fees are making the cost of entering any trades or staking not worth while below a certain volume. The taxes people will incur this year might make some give crypto trading a second thought.
PieDAO is a relatively new and innovative DeFi tool built on top of Balancer. According to the website, “PieDAO enables anyone to create tokenized portfolio allocations for both crypto and traditional assets. These are called ‘PIEs’ which are non-custodial pools available to anyone in the world with an internet connection.” This brings together all kinds of assets into one portfolio.
It’s strengths seem to be reduced risk through diversification, and reduced Gas prices because fees are shared. The DAO also uses the Dough token for governance.
Hello @amadeobrands
I’ve been playing around a bit with Defi particularly Pancakeswap on BSC in order to avoid the ridiculous ETH gas fees, It was a good experience just learning to route binance coin through the binance wallet and then into metamask where I had to create a Binance Smart Chain wallet.
Pancakeswap was fun to use however I only learned of impermanent loss after I staked my tokens. Will impermanent loss be part of a future lecture or is it a forum discussion. I think it is an important topic.
I’ve been following the debate of ETH gas fees and the rise of Cardano. Seems like many people don’t like Cardano’s founder and some think Cardano will overcome Ethereum. There seems to be tribes in Crypto. I guess it’s good to be new in crypto so I can profit from all of them. I agree with Amadeo’s multi-chain world vision, kind of seeing some talk about it with f.e Aave. It’s also interesting to see will Bitcoin layer 2 solutions be popular (Liquid network, TDEX, LEND).
Hi Amadeobrands,
I really enjoyed your course. I think Celo and Chainlink will be interesting blockchains in terms of defi space. Thanks for a great course!
Taxes are pain the the _rse, I do not mind paying taxes but 40% is too much to bear. I need to setup company as I mentioned in one of topics but my employer considers crypto as conflict of interest 
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I opened an account with them and made a small test deposit of LINK which went through with no issues. Next I made a much larger deposit and it is still not showing up in my account balance a month later. I see it in etherscan and it displays my total balance, but it’s not showing in my Nexo account. They closed my first ticket because it had been open for so long (they did not fix the issue), so I had to open a new one. I’m beginning to get a little concerned now.
Having seen challenges in security and flash loans recently, this company, Conflux-Network seem to be setting a new standard that may be of interest. Although they've been out since last year, they still have regular updates on their roadmap (the last info being end of February into March 2021), with their update here: Conflux-Network Road Map for week ending March 4th 2021. This is definitely worth a read.
As for other blockchains taking a more mature DeFi infrastructure, BSC or Binance Side Chain, seems to be doing very well, although Cardano seems to be a very big contender against Ethereum at the moment.
I really liked the course, I already used the apps for a while, but it helped me to have a more global understanding of the ecosystem, now I will take the defi 102. Thank you very much
This is a tough course but I think I learnt a lot. DEFI is still quite complicated and is evolving. I think there will be great developments in this space and finance will be different in future.
who doesn’t like Charles 
Hi Amadeo!
Thank you for the content provided.
The course is interesting but to be honest not very beginner friendly in my opinion.
I found it a little bit too difficult to follow, got most of my knowledge from links provided below.
Hope you have a good day!
I think curve is a very interesting fairly new project. as a whole i believe dex’s and protocols that are allowing inter connect ability between block chains will thrive.
