History of DeFi - Assignment

DeFi 101 Course 2021
#1
  1. Where did the term DeFi originate? Be as detailed in your explanation as you’d like
  2. Find an important event or protocol that I didn’t mention, but you think is important to be recorded in the history of DeFi. Then explain why it should be included and check out what other community members have added. None of us are as smart as all of us so let’s work together on this.
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#2
  1. Where did the term DeFi originate? Be as detailed in your explanation as you’d like.

The term DeFi, short for decentralized finance, was born in an August 2018 Telegram chat between Ethereum developers and entrepreneurs including Inje Yeo of Set Protocol, Blake Henderson of 0x and Brendan Forster of Dharma. They were discussing what to call the movement of open financial applications being built on Ethereum.

  1. Find an important event or protocol that I didn’t mention, but you think is important to be recorded in the history of DeFi. Then explain why it should be included and check out what other community members have added. None of us are as smart as all of us so let’s work together on this.

I would like to mention Olympus DAO. It should be included in Defi history because of its impact on the entire market.
First you have rebases that expand or contract the supply of a currency, often directly into holder’s wallets and incentivizing demand

Second are bonds that can be purchased and redeemed at set values for the algorithmic asset, giving a market mechanism that helps the asset keep its peg.

Third you have staking, a method for locking up portions of the asset supply in order to secure utility and further incentivize demand.

This is a rather new phenomenon and a proper breakdown could easily be a section of this course. I will leave a link for those interested. https://www.coindesk.com/policy/2021/12/05/olympus-dao-might-be-the-future-of-money-or-it-might-be-a-ponzi/

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#3

Thank you for the info on history and for the link below

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#4

Cant write it any better than pmgoff.

I think the Ripple vs SEC case is an important factor in bringing in Legislation and regulations.
the meetings of the big central banks and CBDC will have a huge impact also

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#5

:one: The term Defi has been claimed by multiple people including Reggie Middleton of Veritaseum.
Others such as Inje Yeo, Blake Henderson and Brendan Forster suggest this is where the origin of the term Defi was born. It’s generally accepted that a telegram chat between these guys is where it was born.

:two: A significant Defi protocol that wasn’t mentioned was Pancakeswap.
While its origins weren’t exactly original, the volume going through PCS was so incredibly significant.
It brought a massive amount of attention to Defi, because most people were priced out of Ethereum and Uniswap that everyone now had the chance to dabble with defi.

And from there, Pancakeswap introduced a bunch of other products and features that the big players on Ethereum didn’t have.
I think in 5-10 years, many of the big players in defi will say that their first interactions with Defi was through PancakeSwap and the BSC in general.

Other BSC protocols such as autofarm for yield farming were big too.
Although, many of these really didn’t push hard to innovate.

A few other significant protocols were Olympus/Wonderland (more recently) and PoolTogether.

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#6
  1. Defi the term was born in a telegram chat between eth developers.
  2. EIP 1559 allowed for changes in the way gas fees are estimated
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#7
  1. According to google: The term DeFi, short for decentralized finance, was born in an August 2018 Telegram chat between Ethereum developers and entrepreneurs including Inje Yeo of Set Protocol, Blake Henderson of 0x and Brendan Forster of Dharma.
  2. A DeFi protocol that I can think of that may be seen as significant is Nexus Mutual. An insurance protocol for mutual members issuing NXM tokens in exchange for Ether, which is deposited in the capital pool for safeguards against smart contract pitfalls.
#8

  1. The term DeFi, short for decentralized finance, was born in an August 2018 Telegram chat between Ethereum developers and entrepreneurs including Inje Yeo of Set Protocol, Blake Henderson of 0x and Brendan Forster of Dharma .

  2. Very recent and possibly something big. Uniswap has officially deployed v3 on polygon POS Chain.

#9
  1. The term Defi originated in 2018 in a Telegram chat between Ethereum developers and entrepreneurs. Or at least that’s what Google is saying .
  2. Another project would be Avalanche. It is like Ethereum only faster and it is compatible with solidity dapps.
#10

DeFi as a term was coined on telegram in 2018 (apparantly)

another big important project i feel was missed is avalanche

#11

The term DeFi was coined in a 2018 telegram chat between Ethereum developers and entrepreneurs

I think an important protocol that was missed, are the insurance protocols. Nexus Mutual being the most adopted, allows users to mitigate their risk in the DeFi space by purchasing insurance, payed out in the event of a smart contract hack or other negative event.

#12

The major event that took place in 2009 and acted as a major catalyst for the birth of Defi was the invention of Bitcoin and not too long after that was the birth of Ethereum where the majority of Defi applications and protocols now run on.

#13

  1. According to Google: “The term DeFi, short for decentralized finance, was born in an August 2018 Telegram chat between Ethereum developers and entrepreneurs including Inje Yeo of Set Protocol , Blake Henderson of 0x and Brendan Forster of Dharma.”

  2. In August of 2020, Curve Finance launched, The website lists no official team members and the project has no publication to reference an official launch date. Curve Finance is an automated market maker protocol for just stable coins. People who provide stable coins to Curve earn trading fees and interest on the liquidity they’ve provided. its specialized in stable coin, and much suited for larger orders. The team and shareholders will control the network with the majority vote in the early days because Curve has a group known as the Curve Emergency DAO, 9 people with basic multisig control over CRV emissions.

  • From Bankless (17-6-2021): " 63% of the circulating CRV supply has been locked for veCRV. Of the 212 million veCRV, the two entities holding the most are Convex with 35.5 million (17.1% of the supply), and Yearn with 18.3 million (8.7% of the supply)."

Today CRV governance tokens are popular amongst Convex Finance, as Convex gives a healthy APR for staking your CRV and its not locked unlike veCRV. These are used are liquidity for other protocols like Abracadabra, because they’re Yield-bearing tokens and Abracadabra allows you to use these as collateral for leveraged loans. I think there’s a governance war going on. many protocols are trying to buy up other protocols governance tokens

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#14
  1. DeFi originated from ETH developers and entrepreneurs over a Telegram chat during August 2018. They were discussing on what to call the movement to open up financial applications on the Ethereum blockchain network.
  2. An important event or protocol that was not mentioned is Defi moving into the realm of NFTs and how that may impact the Defi space as a whole.
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#15

  1. It originated 2018 on a telegram chat between devs and entrepreneurs.

  2. I think the upcoming of DAOs has been attracting many more people with crazy rewards offers and may continue to do so in the future.

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#16

I had no idea the the term DeFi came out of a Telegram group in 2018. Thanks for the info. My feeling (I guess) is that DeFi originated in with the idea of the EVM. Protocols are key to computer science. When the idea of smart contracts emerged, the idea of application layer protocols took life. It’s baked into what Ethereum is.

Terra strikes me as a significant development in DeFi in that it basically has two native tokens right out of the gate - LUNA and the TerraUSD (UST) algorithmic stablecoin. The sustained 20% APY on UST in the Anchor protocol is nearly miraculous.

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#17

The term DeFi, short for decentralized finance, was born in an August 2018 Telegram chat between Ethereum developers and entrepreneurs including Inje Yeo of Set Protocol, Blake Henderson of 0x and Brendan Forster of Dharma.
https://coinmarketcap.com/alexandria/article/what-is-decentralized-finance
Kind of glad it wasn’t named Lattice Network, Defi was meant to be.
2. One of the biggest hacks of the year was the Poly Network hack that drained more then 600 million from three different chains.
https://www.coindesk.com/markets/2021/08/10/cross-chain-defi-site-poly-network-hacked-hundreds-of-millions-potentially-lost/

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#18

Also how defi is moving into the gaming industry and within these games there’s a money market of there own. From swapping tokens to trading digitalized goods. Axie Infinity moved billions by banking the unbanked and teaching people how to maneuver wallets through gaming.
https://twitter.com/ZyoriTV/status/1440420884385177602?s=20

Then there’s the Infrastructure Bill
https://cointelegraph.com/news/breaking-white-house-reportedly-supports-only-minor-changes-to-crypto-tax-proposal

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#19

DeFi originates from a telegram chat between entrepreneurs and software developers in 2018.

Alpha Finance could be a relevant, mentionable protocol. It is a yield farming aggregator and ensures moving back a share of yield to the community treasury.

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#20

For the DeFi term origin there was already enough said :smiley:

DYDX protocol maybe could be mentioned, it also ensures that borrowers can not be over collateralized. Meaning that you can borrow assets until your collateralization (that one was hard to type :sweat_smile:) ratio is 125%, once you hit this ratio, DYDX won’t allow you to borrow more assets.

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