Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
One of the many fields of the economy that is ripe for disruption by the blockchain is the finance field. Virtually every part of the finance industry that traditional finance companies operate in is under threat from the blockchain. Over the last few months, the DeFi space market cap has risen dramatically, and this trend is set to continue over the coming years.
First of all, what is DeFi? DeFi stands for decentralized finance and refers to the ecosystem of financial applications built on the blockchain. This can be anything from decentralized exchanges to decentralized lending.
Projects such as Kyber Network (KNC) and 0x (ZRX) enable a decentralized and trustless exchange of tokens. Kyber “is an on-chain liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and secure token exchange in any decentralized application”. Their protocol can then be integrated into other applications such as websites or cryptocurrency...
Compound Finance rocketed to preeminence recently as the new DeFi darling with its COMP governance token seeing massive gains. This spate of wild speculation has been accompanied not only by more traders piling on but also by funny memes and videos featuring Yield Farmers harvesting their lucrative crops.
If speculation continues at this pace, Compound could be poised to dethrone MakerDAO as the reigning king of DeFi. Maker and Compound are similar in that they both operate in the money market space. Unlike Maker, however, the Compound protocol supports multiple assets and users don’t have to borrow to lock them up.
Yield farming is all the rage right now, but before we get into that let’s take a deeper look at Compound itself.
Compound is a decentralized protocol on the Ethereum blockchain that establishes money markets for the borrowing and lending of assets. These assets are popular cryptocurrencies such as ETH, DAI, and...