W2 - Diving in DeFi World : Parallels in 100+ Projects

2개월 전

This entry of my/itt/e.book involves a contest. In case you weren't aware, @steemitblog is hosting a Steem Crypto Challenge Month. Below is my entry for Week #2, a fun and exciting exploration into the vastness that has become DeFi.

The explosion occurring in blockchain because of decentralized finance (DeFi) advances the perception of crypto in relentless fashion.



DeFi appears to be the final puzzle in connecting the world’s financial transactions. It allows human beings across the world to operate within a network that resembles trading at ancient markets.

Virtual assets, and the benefits that can be derived from them, are secured on a blockchain directly by the parties involved. Devoid of intermediaries, this system can be compared to handing someone a freshly baked apple pie in one hand and accepting a small piece of gold with the other.


FINANCE
vs
Money, Assets and Banking


Money is that thing that we trade for real assets and store in banks. Finance is contrary to banks in that it is concerned with moving/liquid money. Banks secure/hold value. Finance puts money to work. The digital age has blurred these lines.

Oftentimes, a company with vast resources, such as a bank, will invest in a financial venture for which even it is ill prepared. Consider how long Paypal has been working with emails to move money tied to banks. Traditional financial institutions do not operate this seamlessly.

The main takeaway here is that digital finance can be light years more complex than writing a paper check or signing for a mortgage.


DEFI
vs
Blockchain, Cryptocurrencies and Tokens


Smart contracts are helping digital finance mature. Blockchain provides a way to tether a financial contract to various parties over periods of time all while automating aspects that cater to trusted networks.

Decentralized currencies. Cryptocurrencies are virtual assets. They are part of the operation of a blockchain. It’s extremely hard to even argue that a ledger which does not employ cryptocurrencies for the sole ownership of users is a blockchain at all.

Leveraging tokenization. Tokens can leverage a blockchain and cryptocurrency markets. Though, there’s a tradeoff when it comes to ownership control for the functionality of the tokens.

Case Study
Imagine owning a cryptocurrency that has direct power over the running of a blockchain. Ether as gas is an ideal example. Users will value latent/staked cryptocurrency. Owners can decide to create a token that automates an aspect of a primary coin’s activity while retaining ownership. Those on the receiving end of tokenization can be unbeknownst to stakers and become part of a decentralized market competing for assets.

Win, win. Whether a token is designed for lending services, facilitating token swaps, or some other elaborate financial transactions, coins are retained by owners. Users gain value. This illustrates mutual financial gain by leveraging virtual assets


DeFi Resources


Fully examining the multitude of current and emerging defi projects is a rather intensive endeavor. To help grasp emerging events throughout the rapidly advancing DeFi space, I’ve compiled a brief list of sources and highlighted their usefulness.

Rankings by users across all major crypto dapp platforms
-> https://dappradar.com/rankings/category/defi

Ranking based on market cap
-> https://coinmarketcap.com/defi/

Comprehensive_List_#1 of successful defi projects categorized by

Comprehensive_List_#2 of successful defi projects categorized by

Analysis and commentary of top projects
-> https://defimedia.best/defi-article/reviews_and_longreads/list_of_the_best_defi_projects_2020.html

Top respected lending projects
-> https://www.publish0x.com/defi-box/full-list-of-defi-lending-projects-and-protocols-xdrmlvd

#steemcryptochallenge #usa


Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it.

- Proverbs 21:20 ESV from openbible.info via finances



This is my twelfths post in my/itt/e.book series. I leave you with some inspiration from the initial post:

The landscape of blogging and social media is changing.



#ProjectHOPE

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For more information about @project.hope, fly over to the main site here and view content by other #PH authors.

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Nice post from you. In Defi we getting lot of benefits ,hope this market increase more soon.

#onepercent #india

A market full of attractive alternatives and I'm sure I can barely invest in Defi, it is me attractive

·

I think I might be in the same boat. I continue to look and find small things. There are some ingenius ways that crypto is being applied. Consider Prospectors. Within the game things are staked. It takes what other projects are doing gamifies it all on a free to play platform. This leverages users time and adds to the network. In this way I was able to finance other small endeavors and pick up coins on Newdex. I believe Steem is heading this way and we will begin to see it when one game's currency is available in another like Prospector's bridge between EOS and Wax. Or when a stable or bridge coin can perform multifunctions on another chain. Maybe think of it as if liking a post on Twitter would translate into Facebook likes and vice versa. In writing an article on Medium that people liked one could also get steem tokens here. I think that's a system that anyone who works regardless of adding money to stake and defi can take good advantage of. The entrance of PayPal may facilitate this. Of course a lot of speculation and Hope.