Category

DeFi

What is defi and what are some key projects you should know about in this space?

Defi stands for decentralized finance and refers to projects that aim to democratize financial access and remove central intermediaries such as banks and companies. The vision is similar to that of a cooperative: an entity that people own and operate.

The difference with Defi is that technically no one owns the projects and no one operates it. Defi protocols run on their own. A community of supporters continue to upgrade the code. They do this either on a voluntary basis or in return for a reward that everyone agrees on.

Defi came about as soon as Ethereum emerged. The smart contract functionality that Ethereum offers allows anyone to build a protocol on top of it that acts according to specified rules.

For example, you could create a lending and borrowing protocol such as Compound or a stablecoin protocol such as DAI.

Projects usually start off as projects with central teams. A VC will often invest in and sponsor the project. Sometimes Defi projects bootstrap funding through an ICO or IDO (initial discord offering). Once the project kicks off, the founding team distributes governance tokens to active community members.

Communities of supporters gather on Twitter, Discord and Telegram. At this stage the project is considered decentralized. It is important to cross check this by looking at the governance structure and what proportion of tokens the core team still retains.

The only way to really understand this space is to dive into some of the projects.

Check out key Defi protocols below

TaaS stands for “Token-as-a-Service,” and was a closed-end tokenized fund that operated on the Ethereum blockchain. Essentially, TaaS cryptocurrency was a way for people to invest in crypto assets without having to deal with the technical barriers that can make it tough to get started. If you purchases a TaaS token you owned a piece […]

HEX is the most polarizing cryptocurrency I have come across. It’s like Donald Trump. Half the people think HEX is going to make crypto great again. The other half can’t stand it. In this post I am going to explain HEX to you like you were 5. It’s pretty easy to wrap your head around. […]

In this article I will introduce you to Curve Finance. Curve Finance is one of the foundational protocols of DeFi. It has almost $4Bn in total value locked and is the 6th largest DeFi protocol by that measure. I find it’s simplicity extremely exciting and hope you will too. In this article I will explain […]

No, DAI crypto is not a good investment. Not in the traditional sense in any case. DAI crypto is a stablecoin whose value is pegged to that of the US dollar. This means that 1 DAI will always equal $1. So if you invest your money in DAI you cannot expect the value of this […]

What is DAI crypto and how does it work you ask? Are you sitting comfortably? Good, let’s start from beginning. Picture this: a Danish dude is sipping a warm cup of green tea while he mentally prepares to give his first English lesson to a class of Chinese students in Beijing. The year is 2009. […]

Watched a bunch of videos but still don’t get Yearn Finance? You have come to the right place my friend. I will walk through what Yearn Finance does and how it works step by step. Read on for an in-depth, but simple, explanation without any of the tech or crypto jargon. 1. What is Yearn […]

If you are been reading up on Olympus Crypto explanations you have probably been going mental trying to understand all the jargon and how this cryptocurrency actually works. So what is Olympus DAO? When I looked at the Olympus DAO website I thought it was neat and organized with a FAQ section yet I came […]

Compound finance is a decentralized lending and borrowing platform for cryptocurrencies. Just like a bank where you can deposit your money and earn an interest on your savings, with Compound crypto you deposit your cryptocurrency tokens to earn a return. And just like a bank can use your deposits to lend to others so too […]