Does the borrower pay interest when he/she borrows from the decentralized pools? Also what happens when the borrower is unable to pay back the money they borrowed are they given some of the collateral back or do they lose all of it? @amadeobrands @ivan
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Number 4 on defi pulse, Curve Finance, looks like an interesting project.
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Thank you @amadeobrands for the excellent lessons and the calm and structured way you are relaying your knowledge to us. Really excellent videos and content.
What are your thoughts on Pillar Project? https://pillarproject.io/
Its something I was advised to invest in in 2017 without really having an understanding of DeFi. Iâm still not sure how they propose to offer their service and what advantages it gives over other DeFi projects.
I noticed, after looking into the governance of one of the Defi protocols, that most of the tokens and thus governance decisions were coming from just a few investment firms. After digging a bit deeper it looks like some of these investment firms are behind many of the big projects not only in the Defi space but in the crypto space in general. So while on the surface many of the protocols seem decentralized they are in reality part of a large crypto conglomerate.
I like Haven Protocol. https://havenprotocol.org/ Grassroots and community led. No premine, No ICO, NO VC, although Coinbureau said they did receive a 1 million dollar grant from an undisclosed sponsor.
I belive Sushi Swap would be classed as a DeFi ecosystem and isnât on the list: https://sushi.com/
Hi @amadeobrands, @ivan & others,
TL,DR: Can someone help me understand the basic concept/inventive of BORROWING in Defi while putting down FULL COLLATERAL?
I have searched all over the internet for a basic answer, but most blogs/videos seem to glance over the assumption of fully collaterized lending when talking about Defi. I canât grasp the concept of fully collateral loans for the borrower (I understand the risk mitigation from the lenderâs point of view).
In the video (Defi 101: defi is financial lego) Amadeo goes to the Compound page and lends $20 worth of Dai to the protocol and shows us you can borrow $15.15 worth of BAT with this collateral.
- If I have $20 of Dai, why would I lend this on the Compound to borrow $15.15 worth of BAT? Why bother borrowing? You already have the funds available and borrowing does not increase your total liquidity like in CeFi? Isnât it better to just swap the Dai for BAT on a DEX?
Lemme explain with an example: If I borrow $10.000 to buy a car, the car is collateral and I borrow because I do not have $10.000 at the moment. If I owned $10.000 in collateral, I would not need the loan for the car in the first place. Similar to Defi: why would I put down $10.000 in one cryptocoin, to borrow another $10.000 or less in an other cryptocoin. Wouldnât it be easier to just use my original $10.000??
- What kind of activities are people borrowing ETH, Dai or other tokens for? Farming, Trading? For example: if I borrow 15.15 BAT to go yield farming or trading, isnât it better to just use the Dai I put as collateral? $20 > $15.
Why would someone borrow $100 worth of Dai/eth/[insert coin] and put $100/$150 worth of collateral, when you can just spend the $100/$150 you already own? It seems counterintuitive.
Really donât understand this basic âWhyâ? What am not seeing here?
If anyone can help me get to my âahaâ moment. Please help.
Thanks!
Rienk
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Wonât competition breed innovation? I think this is a good development for the ecosystem as a whole.
I have chosen to highlight Venus Protocol deployed on the binance block chain, ( Avoiding the high fees and congestion experienced on the ethereum block chain.)
It offers a source of funds, which can then be moved in to yield farming, it relies on dollor pegged stable coins to minimise price swings and large losses, ( Which in the current American financial situation, may not be as stable as intended.) This protocol relies on a double token scheme, one of which (VTU) is the dollor pegged stable coin and a secondary token (V token)
which is used as collateral to mint (VTU) or even borrow other funds. Intended to minimise the inherent risks involved in yield farming.
Defi is so complexed, I definetly need to revise and study defi alot more in order to understand. but thankyou Amadeo
FInxlo.com is the Worldâs First Hybrid Liquidity Aggregator, providing a liquidity sponge for users to execute trades at the best prices via more than 25 CeFi and DeFi venues. It complies this liquidity through one platform without the need for multiple accounts, delivering minimal slippage, reduced risk and zero withdrawal fees. It offers protection from front running and access to optimal prices without limitation on liquidity supply.
It is, i was just pointing out the BSC advantage due to its existing infrastructure and large capital resources. Much more easier to spread out costs. Right now Defi seems out of reach for the average retail investor and newbies. The gas fees ensure that only the Whales and early adopters who made good profits are the only oneâs who can regularly use Defi.
The only way for the average investor is to gain exposure to Defi coins by directly buying them. I did see some Mirror coins being produced that mirror/track the prices of major blue chip companies such as Amazon. Maybe somebody can produce Mirror coins that track the prices of some of the best and most interesting Defi projects that only exist on Uniswap or other Dexes.
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Hi @amadeobrands! Nice to e-meet you and thank you for the great content! I am really enjoying the course!
I wanted to let you know that on the Origin & Future of DeFi there is one link that is not available https://aleth.io/data/defi/evolution-defi-platforms.
Thank you! Take care
A LOT has changed since you made the video!
including app killer ETH gas fees 
lucky I started with DeFi a few months ago!!!
https://pancakeswap.finance/ NO GAS fees, simple and gamified, NOT decentralised (Binance)
https://zapper.fi/dashboard the most useful dashboard so far. automatic liquidity adding/token balancing/staking function, in multiple currencies! but gas fees = unusable.
https://harvest.finance/ a lot of accessible farms and cross chain cooperation
https://sushiswap.org/ a lot of options and gamified layout
https://pickle.finance/ simple layout and easy to learn
https://luaswap.org/ lesser-known but working project
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I have exactly the same question
IN TRON ECOSYTEM
we have Uswap we can provide liquidity and earn UME token and refer other to provide liquidity and earn. The project is audited twice and they have a great team.
provide liquidity here: https://uswap.me/ref/TGVvnwTqqCUrq11yNhkaAZV6Ksd9XQgFAR/
IN BSC ECOSYSTEM
We have pancakeswap.finance as leading dex
and 1INCH just launch on BSC also provide liquidity now and earn 1000%apr
and low cap defi projects we have icecreamswap.finance and ramenswap.finance ithink they are good project i invested a liitle to themm and roseswap.app also start strong but they lose momentum im farming to different projects hope they will pump in the future.
Huuhh, I got a ton of digging to do as a total newbie to the crypto space.
One pretty interesting project I found is QuickSwap, that is build on Polygon (former Matic) and utilizes (to my understanding) Layer-2 technology. Itâs a trade dapp for ERC20 assets.
Thank you @amadeobrands for comprehensive lessons and explanations!
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I would like to know a bit more about binance block chain, why fees are so low comparing to other block chains.
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Hi, almost 1 year day to day after the video I think defi still a really good place to put your money. Did not make it so far, but I look at diffrent project .
Injective protocol, Fantom, Frontier to name a few.
But it seems that farming project seems to getting bigger ang bigger these days.
SuperFarm is a pretty cool new project imo
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