Blockchain and Crypto Blog

Ivan on Tech Academy provides latest insights and reports about the blockchain industry.

decentralized finance decentralized finance in 2020 defi defi in 2020

Decentralized Finance in 2020 - DeFi Trends to Keep An Eye On

Written By Ivan on Tech

Aug 25, 2020

Despite its recent upswing in popularity, blockchain is still a relatively new technology that can be hard for some people to grasp. Bitcoin is probably the reason why most people know what blockchain is. However, Bitcoin as a currency relies on its vibrant community and underlying blockchain capabilities to keep growing and attracting users. 

Ethereum, on the other hand, is the reason why DeFi is growing at a tremendous rate. Ethereum’s support for smart contracts and the ability to tokenize it makes Ethereum perfect for a financial revolution, and is the reason why Decentralized Finance (DeFi) is hotter in 2020 than ever before. Let’s, therefore, take a look at decentralized finance in 2020 and what it means for the future of blockchain and finance!

How Decentralized Finance Works

Central authorities still largely dominate the traditional financial system. The role of these central authorities is to regulate the system, and act as middlemen between various...

Continue Reading...
decentralized finance defi dydx what is dydx

DeFi Deep Dive - What is dYdX?

Written By Ivan on Tech

Aug 23, 2020

Anyone keeping an eye on the DeFi sector will likely have come across the term “dYdX”. However, what is dYdX - and what is it used for? dYdX is a powerful, decentralized exchange (DEX) that supports spot, margin, and perpetuals trading. It is a permissionless platform powered by smart contracts on Ethereum that supports lending, borrowing, and most importantly, margin trading. 

In the true spirit of decentralized finance (DeFi), anyone can use dYdX without registering or handing over their assets to a central party. It is open, trustless, and non-custodial. Users can swap ETH, USDC, and DAI pairs as well as BTC and ETH on perpetual markets. We will touch on perpetual markets in a later article.

Trading Tools on the Blockchain

dYdX wants to bring trading tools from the traditional world of finance to the blockchain. Although it is decentralized, trading on dYdX is similar to trading on a centralized exchange (CEX). Options and margin trading are standard in...

Continue Reading...
decentralized finance defi defi list defi projects defi pulse

DeFi Deep Dive - What Are Some of the Most Popular DeFi Pulse Projects?

Written By Ivan on Tech

Aug 16, 2020

Anyone keeping an eye on the blockchain sector will know that the field of Decentralized Finance, commonly known as DeFi, is growing at a rapid pace. More and more banks and institutes are kickstarting Decentralized Finance projects in order to remain competitive and evolve their businesses. As such, it can be hard to keep track of the growing list of DeFi projects. 

This article aims to go through some of the most popular DeFi initiatives currently in the works. However, before listing and going through some of the existing DeFi projects, we are going to explain what Decentralized Finance is and why this technology is emerging as one of the hottest blockchain trends in 2020.

What is Decentralized Finance? 

One of the essential characteristics of Decentralized Finance is that this technology seeks to eliminate the middleman from traditional financial processes. The intermediaries in the case of traditional finance are often banks and other financial institutes such as...

Continue Reading...
decentralized finance defi what is yield farming yield farming

DeFi Deep Dive - What Is Yield Farming?

Written By Ivan on Tech

Aug 11, 2020

Those looking into the DeFi field will likely come across the term "yield farming". Yield Farming is the process of putting crypto tokens to productive use in a decentralized finance (DeFi) market to earn interest. Yield Farming takes place on the Ethereum blockchain, and yes, it is a way to earn passive income on Ethereum. But “hodling” ETH tokens is not the same thing as Yield Farming. 

This kind of farming is a creative process. It is also a managed process where “farmers” typically hop from one protocol to the next to maximize returns. However, farmers can also employ “set it and forget it” strategies. 

Yield Farming became popular with the release of Compound’s COMP governance token. When word got out that farmers could reap Annual Percentage Yields (APY) over 100%, things took off. At present, there is over $4.5 billion Total Value Locked (TVL) in DeFi according to DeFi Pulse

Governance tokens like COMP offer hodlers...

Continue Reading...
balancer decentralized finance defi market maker

DeFi Deep Dive - What is Balancer?

Written By Ivan on Tech

Aug 09, 2020

Balancer is an automated market maker (AMM) for multiple tokens. It enables portfolio owners to create Balancer Pools where traders can then trade against these pools. Balancer is still a relatively new liquidity provider (LP) in the decentralized finance (DeFi) space. It only launched in March 2020. 

Exchanges, whether they be centralized (CEX) or decentralized (DEX), exist to fulfill buy and sell orders. Their role is to find matches for a wide variety of orders from buyers and sellers so their orders can be executed. Traders rarely find the perfect match on the other side of a trade, so compromises have to be made. Hence, the need for market makers.

Market Makers

A traditional market maker is an individual or member firm of an exchange that buys and sells securities with the primary goal of profiting on the spread. Investopedia describes it this way: “Many market makers are brokerage houses that provide trading services for investors to keep financial markets...

Continue Reading...
crypto predictions market decentralized finance defi defi predictions market predictions market

DeFi Deep Dive - What are Decentralized Prediction Markets?

Written By Ivan on Tech

Aug 07, 2020

Prediction markets use the “wisdom of the crowd” philosophy to make decisions on future events or outcomes. The events predicted can be extremely diverse, such as - elections, sales of a company, price fluctuations of commodities, etc. In this article, we will talk about DeFi prediction markets. These are prediction markets that use the advent of decentralized finance to drive the prediction systems.

So, first thing’s first…. 

What is Decentralized Finance (DeFi)?

DeFi stands for decentralized finance. It’s a movement that aims to utilize protocols like smart contracts to create decentralized versions of traditional financial products and instruments. A DeFi can be anything from a digital asset, decentralized applications (DApps), financial smart contracts, and protocols that run on top of public blockchains. Some features of these DeFi applications are as follows:

  • Decentralized: There are no intermediaries that take up control of your funds. A...
Continue Reading...
aave decentralized finance defi flash loans

DeFi Deep Dive - What is Aave?

Written By Ivan on Tech

Aug 03, 2020

Aave is a decentralized money market protocol that enables users to lend and borrow cryptocurrencies in a trustless manner. There is a wide variety of cryptocurrencies to choose from, and Aave offers both stable and variable interest rates to its users.

We’re looking closer at Aave today because it is quickly establishing itself as a market leader in the lending and borrowing sector of decentralized finance (DeFi). Like other DeFi protocols, there are no lengthy registrations to contend with, nor any KYC (Know Your Customer) or AML (Anti Money Laundering) documents required.   

How Aave Works

To transact on Aave, lenders must deposit funds into liquidity pools, and users can then borrow from these pools. Each pool sets assets aside as reserves to hedge against volatility. These reserves also help ensure that lenders can withdraw their funds when they’re ready to exit the protocol.  

Aave has close to 20 different cryptocurrencies available for...

Continue Reading...
crypto derivatives decentralized finance defi defi derivatives

DeFi Derivatives: Using Smart Contracts to Positively Disrupt a Multi-Trillion Dollar Market

Written By Ivan on Tech

Aug 01, 2020

Derivatives are one of the most sophisticated and mature instruments in the financial market. One of the most exciting things about DeFi is that it allows developers to recreate traditional financial instruments in a decentralized context. The DeFi derivatives market has garnered a lot of steam.

As per DeFi Pulse, DeFi derivatives applications have >$500 million locked up, with Synthetix being the clear market leader. If properly executed, DeFi derivatives can bring a whole new class of investors and institutions. But before we do so, let’s look into the definition of financial derivatives.

What are derivatives in finance?

In finance, a derivative is a contract that derives its value from an underlying entity's performance. The contract specifies the exact conditions under which two parties can transact with each other. These conditions include:

  • A predetermined time period.
  • The resulting value of the entity and definition of the underlying variables.
  • Contractual...
Continue Reading...
decentralized exchange decentralized finance defi dex

DeFi Deep Dive - What is a Decentralized Exchange (DEX)?

Written By Ivan on Tech

Jul 28, 2020

A decentralized exchange, or more commonly a “DEX”, is one of the most fascinating aspects of the DeFi revolution. As you may already know, DeFi, is a movement wherein developers create decentralized alternatives of various traditional legacy financial institutions and products. The DEX is the decentralized version of an exchange, such as a crypto exchange. Before we answer the “what is a decentralized exchange” question, let’s learn about traditional exchanges and its many flaws.

What is a cryptocurrency exchange?

Centralized cryptocurrency exchanges are often the first point of contact that people have with the crypto world. The chances are that if you have cryptocurrency, you must have bought it from one of these exchanges. The exchanges act as a portal between the “real” world and the crypto world. 

Now, don’t get us wrong. While they have plenty of flaws, they certainly have some advantages, as well.

  • They enjoy consistently...
Continue Reading...
decentralized finance defi defi pulse defi pulse guide pulse

What is DeFi Pulse? The Ultimate DeFi Pulse Guide

Written By Ivan on Tech

Jul 24, 2020

DeFi Pulse is the world’s leading resource for everything related to DeFi or decentralized finance. We are pretty sure that you are very well-familiar with the term “DeFi” by now. It’s an all-encompassing term for decentralized protocols that deal with a variety of financial services like lending, derivatives, payments, exchange, etc. The lion’s share of these protocols is ETH-based, which is why the rise of DeFi has been a huge Ethereum price growth factor.

With its rise in popularity, the DeFi space has welcomed a barrage of newcomers. This is why websites like DeFi Pulse are so incredibly valuable. Crudely speaking, you can think of DeFi Pulse as the CoinMarketCap of DeFi projects. However, as you will soon find out, it packs quite a punch with the sheer amount of value it gives to its users.

What is DeFi Pulse? An Overview

The moment you enter the website, you will see the following the screen:

Let’s see what all is happening here:

  • First up,...
Continue Reading...
Close

Get our Free Ebook

Enter your email and we will send it to you!