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When will DeFi go live (DeFi issuance tutorial)

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When will DeFi go live? What is DeFi? The positioning of DeFi is decentralized

When will DeFi go live (DeFi issuance tutorial)

When will DeFi go live? What is DeFi? The positioning of DeFi is decentralized finance. Decentralized lending protocols generate various products such as interest rates, returns, and collateral through smart contracts. For example, after Compound issued the stablecoin COMP, users can borrow DAI or stablecoin USDC using USDT or other stablecoins to obtain the platform’s token Dai, and then deposit the assets into the platform to earn interest. At the same time, users can also borrow DAI and USDX by collateralizing ETH to generate liquidity, and these funds will be locked in the platform’s system.

Introduction to DeFi projects DeFi projects can be divided into three categories: lending protocols and stablecoin trading services. Among them, lending platforms that provide liquidity include Uniswap, Aave, Synthetix, MakerDAO, dYdX, KyberNetwork, and 0xProtocol. Lending protocols provide investors with a fast and secure asset selection solution with high yield (highest yield); market structure is supported by liquidity pools, and users can use the liquidity in the pool for trading, and they can also obtain rewards through mining. Currently, there are mainly two types of platforms in the market: Uniswap, Balancer, and Curve.

According to official data, as of 18:00 on June 9th, the total locked-in amount of Uniswap has exceeded 1 billion US dollars, accounting for more than 65% of the DEX market, followed by Curve and 1inch, accounting for 30%, while SushiSwap only accounts for 10%, and the rest are in the DEX field. (BlockBeats)

DeFi issuance tutorial

Introduction: This article is from BlueFox Notes (ID: lanhubiji), authorized reprint by Odaily Star Daily.

Preface: Currently, there are more and more projects in the DeFi field, including stablecoins, decentralized exchanges, etc. Let’s introduce how to participate in this industry and discover high-quality DeFi projects. What is DeFi? First, we need to understand several concepts. First, we need to understand what DeFi is. DeFi refers to open financial protocols implemented through smart contracts or code. Simply put, it is launching a token on the chain and then binding it with other tokens for exchange (asset swapping). This is a new financial instrument. When you create a token, you must lock it in a wallet and be able to convert it into another token, so that these tokens become part of your investment portfolio and earn profits through transactions.

This model is divided into two stages. The first stage is the launch stage. In this stage, users can deposit assets to earn interest rewards, or borrow cryptocurrencies like using a credit card. The second stage is the liquidity mining stage. After this stage starts, users can deposit their cryptocurrencies and then redeem them according to their needs. Finally, if they do not have enough money to buy or sell them, they will lose their funds. The third stage is the governance stage because these tokens will be used for governance voting and various potential functions in the future. The fourth stage is the launch stage.

Now everyone knows about DeFi? Many people are asking why tokens need to be issued. In fact, most people think this is a very simple scam. In many cases, it is designed for speculation. If you are an ordinary user, it is recommended to choose a specific token as the initial token type. But some people don’t do this because some novice investors may find such tokens risky. For example, someone may say that if a token’s price is too high, you may want to sell it, but due to its high volatility, it is easy to incur losses. So personally, I don’t buy into that kind of token.

So how can we raise more funds for the development of our project ecosystem? Let’s take a look at the uses and specific roles of this technology. What is DeFi? DeFi (decentralized finance) refers to a platform that establishes an open economic system through the execution of smart contracts or code. It allows people to build applications or blockchain networks based on specific conditions.

The current recognized DeFi consists of three layers: the base layer and the extension layer. The basic structure is as follows:

1. Base layer – blockchain; 2. Extension layer – sovereign digital credit market; 3. Intermediate layer – infrastructure; 4. Shard – sidechain; 5. Subnet. (Note: The current Ethereum network only has two consensus mechanisms: POW and POS)

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