Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
Decentralized marketplaces are a fascinating use case of blockchain technology. These crypto marketplaces allow users to deal directly with each other, instead of using a centralized point of contact. Traditional marketplace platforms may provide a system and platform that’s familiar. However, they lack transparency and charge high fees.
So, how exactly is a decentralized, blockchain-driven marketplace different from the standard affair? Is there a decentralized market out there that’s worth your time and attention? We will learn about all of this and much more regarding decentralized marketplaces in this article.
As mentioned above, all traditional marketplaces are more or less centralized in nature. In general, they function through having a company-owned platform connect different users to potential sellers. Nevertheless, this leads to the creation of middlemen. These middlemen can:
Decentralized finance (DeFi) continues to make waves in the crypto space with $7.22 billion in total value locked in, according to DeFi Pulse. Amazingly, over $6 billion of those funds have entered the market since June 2020! And throughout this year, DeFi continues to be the prime-mover driving the upcoming bull market.
With all the interest in DeFi, have you tried to understand it but were overwhelmed by all the unfamiliar expressions and acronyms? If so, you’ve come to the right place. Simply bookmark this list of DeFi terms, and you can easily return here to scan through a wealth of information.
Put simply, DeFi is a financial ecosystem, mainlt built on the Ethereum blockchain composed of different platforms and protocols. With DeFi, you can move cryptocurrency tokens around, trade them, lend and borrow them. This creates a more efficient, and in many cases more profitable, financial ecosystem! Best of all, DeFi is open to anyone, meaning it is...
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!
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...
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.
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...
The past week has seen Yearn Finance, more commonly known as yEarn Finance or yearn.finance, become increasingly well-known following a massive price rally. Specifically, Yearn Finance’s YFI token has surged over 300% in the past week. As such, many are beginning to ask the question “what is yearn.finance”. The platform recently rose to fame after the launch of its tokenized insurance product yInsure Finance, however the following article takes a look at the fundamentals that led to the creation of the entire yEarn Finance platform.
Andre Cronje single-handedly developed yearn.finance (yEarn), a yield aggregating platform on Ethereum. yEarn has grown into an ecosystem of protocols that aims to maximize annual percentage yields (APY) for its users. It plays a part in the yield farming mania that kicked off with Compound’s COMP token distribution. yEarn utilizes DeFi protocols such as Curve, Compound, Aave, and dYdX to optimize token lending. In a nutshell, it...
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.
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...
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...
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.
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...
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….
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:
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.
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...