History of DeFi - Assignment

DeFi 101 Course 2021
#21

The DeFi term was popularized in summer of 2020, but I think it was conceived with the creation of Bitcoin (BTC). Bitcoin´s sole purpose was to create a decentralize network in which people could transact between them creating a Peer-to-Peer (P2P) financial system. BTC creator is SATOSHI NAKAMOTO or at least it is how he/she named him/her-self. And because of this, it could be called the pilar of modern DeFi as we know it nowadays. All of this was possible thanks to the 2008 financial crisis. Retrieved from Techradar

However the term "DeFi" was first used in a Telegram Message back in 2018.

And another thing I will be taking into consideration will be CURVE. It uses a different dynamic than Uniswap.

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#22

  1. Some could argue that defi originated from bitcoin which allows anyone using it to transfer funds worldwide. BTC lacks other aspects of financial systems like lending, burrowing, trading, funding and derivatives. With the birth of ETH it attracted and allowed developers like one from maker to develop protocols based on the erc-20 token to develop these aspects.

  2. When the Poly network fell victim to a hacker which stole a total of $ 600 million dollars worth of crypto currencies. The hacker used the poly’s bridging ability’s between networks to siphon the funds.

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#23

The earlier more common terminology used was, “Crypto Finance or Open Finance”. In a meeting in San Francisco, 2018 at the Polygon office, companies seemed to found mutual agreement on the term decentralized finance, as to be more suitable for their movement to defy the traditional financial system.

That’s what I found. Not gonna get too much into it as I checked what the others wrote and it seems that there might be few options out there.

Correct me if I’m wrong, as I’m not sure if that counts as a event or protocol, but I thought to mention the upcoming of metaverse and games (NFT tokens), where there seems that people will be able to make business with these digital assets. I know that people already make money, albeit the upcoming dAPPs and the linking of tokens to coins, hence potential real money does create some curiosity in me how things going to develop and to what extent.

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#24

The term DeFi came from 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.

Another protocol that is worth considering is Project Serum which is completely permissionless and is run on other chains so much cheaper than Ethereum.

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#25

1. Assignment – Where did the term DeFi originate? Be as detailed in your explanation as you’d like
Supposedly it originated from a telegram chat in 2018 where people were discussing how to term the new ecosystem of financial services based on blockchain technology.

2. Forum Task – 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.

AAVE provides flashloans

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#26

  1. The actual term “DeFi” was birthed during a Telegram chat between EVM developers in August of 2018. During the time, they wanted to come up with a name for the “movement” where open and interoperable financial applications could be built on top of Ethereum and then eventually challenge the centralized system currently being used by TradFi. They ended up with DeFi, which sounds super cool (“Defy” mayng!).

  2. Synthetix is a protocol for creating and trading synthetic assets that are pegged to real-world assets much like how Dai is pegged to USD. The asset classes minted range from stablecoins pegged to commodities like gold and silver, foreign currencies like the Yen, and even traditional derivatives like the FTSe stock index. I feel like Synthetix should definitely be included because this gives all DeFi users access to a wider array of financial derivatives to play with, which - even if at its worst case would mostly be the domain of speculators - would increase the adoption of DeFi as a whole. In my opinion, this also gives certain users who lean more towards TradFi traditions/habits something to bridge that mental gap, and allow for an easier transition for the bigger players from TradFi to join the party. :slight_smile: :nerd_face:

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#27

  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 think is significant is HEX.com. The first Blockchain Certificate of Deposit. HEX monetizes the time value of Money in a totally new way.

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#28

1The term Defi was first originated in August 2018 in a brainstorming discussion between ethereum developers which included Blake Henderson of Ox protocol, Brandon Forster of Dharma, Yeo form SET protocol. Interestingly, Open Horizon, Lattice Network and Open Financial Protocol were among the deciding name. I personally think Defi was the right decision.

2The protocol that I am going to name does not yet have any history because it is about to be launched very soon, but I have read the whitepaper for cardano’s MELD Defi protocol, and it sounds like a true game changer. A few of the features that are great, is that it is also a fiat liquidity pool protocol targeting and incentivising liquidity form the legacy financial system as well as crypto geeks like us. This is aimed at attracting Financial institutions, and Hedge-fund Managers as well as Fintech companies. Single asset LP features are available, and the liquidation design for going over the threshold when you borrow from the protocol is a much user protector than asy Aave’s loan liquidation feature(not taking anything away from Aave. I love Aave from when they were LEND) . There are too much to mention, and what I have mentioned is extremely brief. If MELD deliver what their whitepaper portrays, this protocol will definitely go down in history as a legendary protocol. I strongly suggest reading the whitepaper. It isn’t over technical either as opposed to something like Chainlink’s whitepaper.

Really good read.

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#29

https://88mph.app/ for example, Depositors receive an NFT (ERC-721) representing their custom-maturity deposit or ERC-20 tokens if it’s a preset maturity. It gives you full control over your deposits.

aavegotchi is also an amazing example for DeFi in NFTs, keeping the perspective of DeFi going into the metaverse.

Carlos Z

#30

I think very important place in DeFi not mationed in video by Josh is Terra Ekosystem which was created by Terra Money which and Do Kwon the Founder & CEO of Terraform Labs and the whole Terra Blockchain.

Do Kwon created BlockChain that is to serve what the Cryptocurrencies really were created for. Terra Ekosystem has focused on creating algorithmic Stable coin and the main is UST - USD stable coin.

Terra Money was created three proltocols over the BlockChain, which are:
-Chai app for payments. Chai and KRT Korean Won stable coin have been already used in South Korea for payments for more 2 years.
article about Chai on loop finance

-Anchor Protocol for saving and borrowing money, where you can have 19,5% APY on Stable coin and borrow UST with really low interest(now it is about -3% and a few months back the interest was about +85% )by having collateral in bLuna(Bonded Luna) or bETH, they will add also bATOM and bSolana soon.
-Mirror finance for investing where you can mint a synthetic asset of US stocks.

Other worth to know about website and apps on Terra:
Starterra LaunchPad on Terra where one of founder is Do Kwon.
Coinhall a coingecko for terra Block chain.
Terraswap AstroPort and loop DEXs on Terra.

Other worth to know about facts on Terra:
Terra blockchain was coded in Rust.
Terra has #2 take into account the TVL: https://defillama.com/chains with only 17 protocols, not long ago there was only 13 and as I know there are more than 150 projects in underway.
I think adoption is still ahead of us.

Edit: good video about Terra Stable coins:https://youtu.be/KqpGMoYZMhY

I my opinion the ekosystem in very interesting and it is worth to have a look into it.
I have also a channel on youTube Exploring Crypto where I have some video about Terra and there will be more videos about it. I would appreciate a sub.

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#31
  1. Term used between eth developers in a telegram chat.
  2. Yield farming, it was so revolutionary that they made videos with Vitalik as a old classic housewife
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#32
  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. Flash loan. A flash loan empowers traders and DeFi users by enabling instant borrowing with no collateral required provided that the liquidity is returned to the pool within one transaction block, taking advantage of arbitrage.
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#33
  1. Defi the term firstly appear in a telegram chat between eth developers
  2. Pankakeswap, Sushi
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#34

Defi stands for decentralised finance that came out as a chat between ethereum developers
Solana can be next big project

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#35

1. Assignment – Where did the term DeFi originate? Be as detailed in your explanation as you’d like
The term DeFi comes from abbreviation of Decentralised Finance, a now widely used term that became more popular that an original alternative of Open Finance. Popular consensus has made DeFi a well coined term in crypto.

2. Forum Task – 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.

2 projects that I am closely following and involved with are on Avalanche and Polygon.

Avalanche… low transaction fees and lightning speed with some fun and profitable defi platforms emerging…although like Ethereum there are scaling issues to overcome

Polygon has been a favourite of mine since I heard about it when I filled my bags at $0.03, I think that layer 2 defi is going to be huge in Q2-Q3 2022 and looking forward to getting involved

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#36

Below is a slightly adjusted take on the naming earlier that year.

“Before DeFi was called DeFi, a few other names were floating around, but labels like ‘Open Finance’ and ‘Crypto Finance’ simply didn’t convey its goals coherently. Launched as a movement of defiance against traditional systems by a group of companies in early 2018, the name stuck during the first Decentralized Finance Meetup in San Francisco.”

Two of many news catalysts that have advanced wider market acceptance and stimulated investment into DeFi as a whole was the publishing of a report by Goldman Sachs in May 2021 recognising “crypto as a new asset class”. The other later in 2021 was the announcement that the heavily regulated German pension funds had received the green light to diversify up to 20% of their portfolio investment into crypto assets.

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#37

  1. Technically, Defi originated with the smart contracts of Bitcoin being used in 2008, but the term “DeFi” came about in 2017 when Ethereum dev’s were searching for a term to use for open finance applications.

  2. I think a major play, maybe just for now, is Rubic.exchange because they are introducing similar services to Uni and Sushi, but are also offering it as a cross-chain service. This means i can swap and asset on Eth for one on BSC, or from FTM to Polygon etc.

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#38

Where did the term DeFi originate? Be as detailed in your explanation as you’d like

It originated from the Ethereum Devs. While the term DeFi took off in the summer of 2020, the story really began when bitcoin was born.

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.

SundaeSwap! :ice_cream: -Even though just officially launched, this is not just a big step for the Cardano network (as it is its first DeFi protocol to go live on Mainnet), but also for the adoption of DeFi in general.

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#39
  1. The term DeFi was originated in an Telegram chat between ETH developers and entrepreneurs.
  2. Recently I use Raydium Farm, a Solana based Dex, but I feel that DeFi is soo large almost everyday appears new projects and sometimes is hard to anticipate which will be mass adopted. I remember when one friend of mine told me that he was wery happy when Uniswap airdropped to him 400 UNI tokens on his surprise. That was a cool thing…
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#40

  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. 1inch Network. I like it quite a lot because its an aggregator which searches and compares the best prices of all exchanges and give you the possibility to trade cheaper

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