There is a new trend in DeFi town, some are calling it “Yield Farming” and others are “Liquidity Mining”. Those who hold cryptocurrencies are now going to back to farming. What is Yield Farming? When you use your assets to provide…
Cryptocurrencies like Bitcoin have a history of price volatility compared to traditional currencies like the US dollar. Some cryptocurrency users find a need to trade for more stable options under circumstances, such as avoiding risk for example. In response to…
A practical exercise using the Aave protocol Introduction There is always talk about the clarity of blockchain, that everything is traceable and everyone can see what was written but is it easy to access this information? How can I get data…
The combined market cap digital assets is more than $200 billion today. There are two leading cryptocurrencies Bitcoin and Ethereum, with more than $120 billion and $18 billion in market cap, respectively.
However, most of the digital assets are sitting ideal, not producing any yield. So think of $200bn worth of assets with no returns and can’t be diversified out of the digital ecosystem without selling them.
Decentralize Finance — or Open Finance — refers to the paradigm shift from today’s closed financial system towards an open financial economy based on open protocols that are interoperable, programmable, and composable.
Ethereum is creating a new economy that integrates blockchain technology and cryptocurrency with current financial systems.
DeFi is not about creating a new system from scratch. It is about democratizing the existing system and making it more equitable using open protocols and transparent data.
DeFi is the domain of financial services built using decentralized technologies. These services are financial primates, such as lending, borrowing, swap, trading, asset management, etc.
The wallet that interacts with smart contracts is called a smart contract wallet. In other words, these wallets enable different types of activities such as buying or selling tokens, token exchange, dapp interaction, trade, borrow or lend, etc.
