Deconstructing DeFi

1

Uniswap

Once an ecosystem of tokens developed on the smart contract blockchains, the next step was "Decentralized Finance", or "Defi". Token holders want to do stuff with their tokens, mostly buy, sell and trade them. To a large extent, Defi consists of markets such as Uniswap where Ethereum tokens can be quickly exchanged or converted to Ether/ETH. However other financial (or pseudo-financial?) instruments of varying degrees of sophistication and marketing buzz exist. Various kinds of contracts are referred to as "staking" contracts, "liquidity pooling" is used to back decentralized token markets, and "crypto lending" is its own strange world of token economics. Here I'll endeavor to introduce the various uses of these terms and what actually happens to the crypto invested in them.

#Finance #Business & Commerce #Productivity 76 social mentions

2

Tron (TRX)

A smart contract is a collection of code that runs on a blockchain-based protocol structured to enable code execution. The most popular example is the Ethereum blockchain, but other smart-contract enabled blockchains include Polkadot, Solana, and TRON. The programs that run on a smart contract can contain essentially arbitrary code, like any computer program. There are limitations, however. There are fees associated with any type of data storage and updates. The contract cannot independently communicate with any data that doesn't have an address on its blockchain. Developers get around this latter limitation by running servers that continually update or sync the contract with external data sources, known as oracles.

#Business & Commerce #Productivity #Sales 25 social mentions

3

Polkadot

A smart contract is a collection of code that runs on a blockchain-based protocol structured to enable code execution. The most popular example is the Ethereum blockchain, but other smart-contract enabled blockchains include Polkadot, Solana, and TRON. The programs that run on a smart contract can contain essentially arbitrary code, like any computer program. There are limitations, however. There are fees associated with any type of data storage and updates. The contract cannot independently communicate with any data that doesn't have an address on its blockchain. Developers get around this latter limitation by running servers that continually update or sync the contract with external data sources, known as oracles.

#Blockchain #Cryptocurrencies #Business & Commerce 27 social mentions

4

Maker (MKR)

A final example of a token is a "stablecoin". A stablecoin is a token which is kept by the issuer at a fixed price in terms of a government currency, generally the US dollar. Tether maintains a popular stablecoin known as USDT by keeping reserves matching the supply of the token. Other approaches include that used by MakerDao for its stablecoin Dai, where reserves are decentralized and take the form of tokens or Ethereum. These decentralized stablecoins are referred to as "algorithmic stablecoins". A more unfortunate example is Terra, who's algorithmic stablecoin collapsed to the tune of 60 billion dollars.

#Business & Commerce #Productivity #Sales 38 social mentions

5

Ethereum

A smart contract is a collection of code that runs on a blockchain-based protocol structured to enable code execution. The most popular example is the Ethereum blockchain, but other smart-contract enabled blockchains include Polkadot, Solana, and TRON. The programs that run on a smart contract can contain essentially arbitrary code, like any computer program. There are limitations, however. There are fees associated with any type of data storage and updates. The contract cannot independently communicate with any data that doesn't have an address on its blockchain. Developers get around this latter limitation by running servers that continually update or sync the contract with external data sources, known as oracles.

#Business & Commerce #Productivity #Sales 148 social mentions