very good course…I wish I had signed up back in March for this academy and learned this back then.
It’s so the collateral owner can avoid capital gains taxes of 30-50% on sale of BTC. Lets say I invest 95% of my savings in BTC and then crash my car into another person. I dont have enough insurance to pay both damages. I can take a loan on my BTC and pay it off later, as well as reap the benefits (or risk) BTC going up/down.
how? how can you do that?
I truly believe in this ecosystem, but i found difficult to see how can we link real fisical assets to a small contract like a house, car, etc. or how can we link a small contract with a contract of production that some company has…
There is a spelling error in the CeFi section of the excel sheet.
This should be BitMex instead of BitMax. BitMax is an exchange, not derivatives exchange(Also bad things happening around CeFi Derivates platforms, this could be a positive thing though).
One project that looks pretty interesting is Injective Protocol which is building a protocol for Decentralized Derivative exchanges.
Hi @amadeobrands !
Thanks a lot for the great content!!! It was a little bit tough in the beginning, but as I started to “sniff” and interact with the protocols, things started to become more clear. I’m looking forward to exploring better the DeFi ecosystem.
In terms of arbitrage: I see some opportunities in rates arbitrages, for example: by the time I’m writing, I see it’s possible to borrow USDC at 3.6-3.8% rate (dYdX, Compound) and lend it at 6% (Aave). If I understood right, it should be simple to figure out this arbitrage trade depending on the volume so that fees are easily covered. I believe these rates float freely, and some piece of code should keep track of that to unmount such operation when the rates difference is not interesting anymore.
Is it something too hard or we might be able to code such kind of dapp (at least for learning ) soon?
Another interesting use I see is the possibility to leverage an asset position. Let’s suppose I’m bullish (mid-term) on ETH… I could lock ETH, borrow DAI (for example) and swap it for ETH. If everything goes fine, I can swap back the amount to pay my debt and unlock my assets, having the difference as the profit in ETH. Of course, we can simply open a low-leverage position on an exchange, but the idea to fine-tune the leverage should still be valid (in case of an asset different from the locked one, for example)…
Our imagination is the limit, actually… for the moment I’m trying to think of something useful for the coding projects ahead…
Cheers!
I NEED SOME HELP PLEASE!!!
I deposit some DAI into the yearn.finance DIA stable coin fault. I wanted to withdraw my funds but available funds shows zero. From the screenshot you will see that the total position was Transferred out. I did not give instruction to transfer funds anywhere and can not find any info on the what the meaning is of “Transferred Out”. Was this position liquidated and if so way?
Thanks for the information. I’ve learned a lot but there are things I need to go over again. I’m going to leave this here and keep researching and trying things out when I have some time. Thank you again - it’s a really exciting new space opening up and I can’t wait to see where it goes!
Hi,
I have been exploring farming the honeyswap coin (HNY). https://hny.farm/farms
It is a different chain than the uniswap coin. The HNY coin has a very small market cap https://info.honeyswap.org/home
In order to farm it is needed to bridge from Dai to XDai. https://dai-bridge.poa.network/
Im just trying it out with some small amounts. APY % are very high… so a lot of risk involved…bring big boys pants
Thanks for the content thus far, it became more interesting along the way!
Those APY rates are RIDICULOUS! To the moon bro!
Price of HNY is going down pretty hard, I guess some people are cashing out. I’m happy that I only put some small amount of HNY in it for learning purposes so I will HODL this one out…let’s see what happens. HNY is still early days anyway. Any thoughts about HNY and farming in general?
I think the main reason someone would take out a loan in DeFi is to be able to use a very functional coin like Dai that is used in a lot of other DeFi projects without having to give up their stake in a coin like Ether which could go up a lot in value in the future.
To elaborate, A lot of people are just holding onto BTC or Ether because they want to either profit if these cryptocurrencies take off or at least protect themselves if the value of fiat currencies drops.
But lets say while you are holding these coins you want to pay someone with crypto or interact with another DeFi project that uses a different token (such as Dai) for transactions. You could just use an exchange and exchange your Ether for Dai but then you no longer have that Ether and if Ethers value goes up quickly then you miss out on those gains. taking out a loan instead allows you to still have the same amount of Ether but still use some Dai for other transactions.
Taking out a loan is basically a long position in whatever coin you are using as collateral. So in an example where you use Ether to borrow Dai, you think the value of Ether is going to go up relative to the value of Dai. If the value of Ether does go up relative to the Dai, then when you repay that loan you are actually paying back less in value than what you borrowed.
Or to explain it in another way say you are a real estate investor and you own this property in a rapidly growing area. The property is worth $100k if you sold it right now but in a few years you think it will be worth $300k as the area is growing and becomes more popular. You want to invest $50k in a different real estate project but you don’t have that amount of money and you don’t want to sell the other property right now before it jumps in value, so instead you take out a loan using the property you own as collateral. Meaning when you repay the loan you still own that property and can sell it for a nice profit when the value increases. So Ether or whatever coin you use for collateral is similar to the property you own in a rapidly growing area in this example.
I hope that helps
There’s so many promising projects in this wide space and apparent increasing growth and opportunities.
To be honest, I’m finding it a little bit overwhelming so I’ve decided to narrow things down and focus my research into the DeFi ecosystem of Polkadot.
I’ll let you know how I get on.
Hi @amadeobrands , and thanks again for the great course!
My first experiments with DeFi were just after the flash loan phenomenon kicked off - I tried to get on board with the hype, but, by the time I’d worked out how to create a smart contract that could do arbitrage between liquidity pools, make use of oracles, and plug into flash loans, I couldn’t afford the gas fees to get the motor running!
However, I understood a lot less about what I was doing when I was cobbling my way through tutorials on YouTube from OrFeed at the time - having gone through your DeFi 101 course now though, my knowledge base is much more grounded, so thank you for that!
So, arbitraging liquidity pools and making use of flash loans - is that no longer ‘a thing’, the excitement around that quirk of this ecosystem seemed to fly by faster than the speed of an Algorand transaction!
lovely course m8, cheers!
Good stuff Amadeo! By the way before the pandemic I used to travel to the Philippines every year. Lovely country.
Hi OkkerB, I’m very curious about your case. Did you find what is the problem and get solution?
Very interesting. What’s the major difference between HNY and UNI?
ey @Lee , HNY is the native token from Honeyswap which is another DecentralizedEXchange that works on xDai network (out of ethereum) , while Uniswap is a DecentralizedEXchange built on Ethereum