#basic #intermediate
Defi (decentralized finance) could be a complete rabbit hole, especially for newbies.
If you were going to figure out what kind of buzzword it is for years (you could hear it next to such other buzzwords as cryptocurrency or blockchain), this guide could be your start.
Simple as possible and has examples.
Here are: advanced version in 2 languages, Beginner in one
https://t.me/why_defi/4
Defi (decentralized finance) could be a complete rabbit hole, especially for newbies.
If you were going to figure out what kind of buzzword it is for years (you could hear it next to such other buzzwords as cryptocurrency or blockchain), this guide could be your start.
Simple as possible and has examples.
Here are: advanced version in 2 languages, Beginner in one
https://t.me/why_defi/4
#terra #ecosystem
I'm starting with the Terra ecosystem — a growing and promising one that has already established many successful products and doubled the market cap а its stablecoin in a year.
So, nice words, but what it is really about? Here are some examples:
— fully(!) decentralized algorithmic stablecoin: UST
— fixed-income landing-based platform: Anchor
— platform providing tokenized stocks like mAAPL, mAMZN, mSPY named Mirror
— even real estate platform where you can buy fractions of property: Terraland
I will discuss these protocols in the future posts
I'm starting with the Terra ecosystem — a growing and promising one that has already established many successful products and doubled the market cap а its stablecoin in a year.
So, nice words, but what it is really about? Here are some examples:
— fully(!) decentralized algorithmic stablecoin: UST
— fixed-income landing-based platform: Anchor
— platform providing tokenized stocks like mAAPL, mAMZN, mSPY named Mirror
— even real estate platform where you can buy fractions of property: Terraland
I will discuss these protocols in the future posts
www.terra.money
Fueled by a passionate community and deep developer talent pool, the Terra blockchain is built to enable the next generation of Web3 products and services.
exploring #terra part 1
#basic
Stablecoin UST
The very core of the ecosystem, used for payments and fees, together with Luna tokens (not a stablecoin) utilized for balancing and ensuring the price of UST = ~$1
> A quick video brief on ecosystem
> Documentation on stablecoin and balancing process
#basic
Stablecoin UST
The very core of the ecosystem, used for payments and fees, together with Luna tokens (not a stablecoin) utilized for balancing and ensuring the price of UST = ~$1
> A quick video brief on ecosystem
> Documentation on stablecoin and balancing process
YouTube
How Does Terra Work?
How does Terra's stability mechanism work? We explain how Terra remains stable utilizing Luna as collateral, the foundation that enables the scalability required for mass adoption.
Let us know your questions in the comments below or in our community channels!…
Let us know your questions in the comments below or in our community channels!…
Accepting a world of craziness
Part 1
First things first: we need to remove the mask of skepticism from you, otherwise, you can't consider Defi as something other than a bunch of scum/craziness (as I considered it previously).
Let's imagine a world, where we have digital currencies, rarely backed by something real, but rather backed by opportunity, the balance of supply/ demand of goods/ services you can buy using these currencies.
There are such services as lending where you can borrow money providing another asset as collateral, or on the other hand, lend money to earn interest.
We have the protocol, which every month guaranteed a fixed-income rate to lenders. It does so by optimizing the usage of collateral, considering the supply/ demand balance.
In this world, you can possess various assets, represent your share, and voting power in some protocols. You can benefit from the growth of these protocols, which reflects on the price of the tokens you possess.
Part 1
First things first: we need to remove the mask of skepticism from you, otherwise, you can't consider Defi as something other than a bunch of scum/craziness (as I considered it previously).
Let's imagine a world, where we have digital currencies, rarely backed by something real, but rather backed by opportunity, the balance of supply/ demand of goods/ services you can buy using these currencies.
There are such services as lending where you can borrow money providing another asset as collateral, or on the other hand, lend money to earn interest.
We have the protocol, which every month guaranteed a fixed-income rate to lenders. It does so by optimizing the usage of collateral, considering the supply/ demand balance.
In this world, you can possess various assets, represent your share, and voting power in some protocols. You can benefit from the growth of these protocols, which reflects on the price of the tokens you possess.
Accepting a world of craziness
Part 2
There are also such services as insurance, lottery, betting, charity, gaming, portfolio management, and other protocols built on smart contracts.
Now kindly replace the word "protocol" with the "company", and "token" with the "stock" and you will get our beloved classical financial system, which we trustfully and don't have doubts about.
At this moment we have all the same, but more efficient, where people are replaced with the script, institutions, and offices are replaced by GitHub repos, and audit-and-compliance is replaced with the code-review of the smart contract.
And all of these are fully decentralized, which means you really own your money, which could never be taken from you by force of authority or sanctions (we consider risks further).
Of course, I'm not a Defi fanatic and Cefi (traditional finances) canceller. Today, Defi on a very early stage where we have complete wild west, sometimes abnormally high rates, risks of hacks, and not enough records of success and practice in general.
But it looks very promising and fast-growing, so why wouldn't you take a try?
Part 2
There are also such services as insurance, lottery, betting, charity, gaming, portfolio management, and other protocols built on smart contracts.
Now kindly replace the word "protocol" with the "company", and "token" with the "stock" and you will get our beloved classical financial system, which we trustfully and don't have doubts about.
At this moment we have all the same, but more efficient, where people are replaced with the script, institutions, and offices are replaced by GitHub repos, and audit-and-compliance is replaced with the code-review of the smart contract.
And all of these are fully decentralized, which means you really own your money, which could never be taken from you by force of authority or sanctions (we consider risks further).
Of course, I'm not a Defi fanatic and Cefi (traditional finances) canceller. Today, Defi on a very early stage where we have complete wild west, sometimes abnormally high rates, risks of hacks, and not enough records of success and practice in general.
But it looks very promising and fast-growing, so why wouldn't you take a try?
Why you don't want to use stablecoin USDT and store all your assets on Binance. Few reasons:
1. Both products are custodial
2. Questionable reputation of the provider-company (I mean Tether)
3. It's f**king custodial! Do you wanna a custodial product in the blockchain universe? Are you crazy?
What custodial does mean? Simply, it means that full control of your assets is executed by the third party, not you.
Yes, you can buy\sell, withdraw, stake, etc.
But, It is a third party that does it for you, executing orders from your name.
— What if this 3d party refuses to do so or starts to discriminate against you because of your nationality, and freezes your assets?
— What if a 3d party executes poor protection for your assets?
— What if it is simply corrupted?
— What if the stablecoin provider decided to freeze all its coins? Such a feature exists in smart contracts of the majority of stablecoins.
The answer is simple — use a non-custodial wallets (TrustWallet, MetaMask, Terra Station) and non-custodial stablecoins
1. Both products are custodial
2. Questionable reputation of the provider-company (I mean Tether)
3. It's f**king custodial! Do you wanna a custodial product in the blockchain universe? Are you crazy?
What custodial does mean? Simply, it means that full control of your assets is executed by the third party, not you.
Yes, you can buy\sell, withdraw, stake, etc.
But, It is a third party that does it for you, executing orders from your name.
— What if this 3d party refuses to do so or starts to discriminate against you because of your nationality, and freezes your assets?
— What if a 3d party executes poor protection for your assets?
— What if it is simply corrupted?
— What if the stablecoin provider decided to freeze all its coins? Such a feature exists in smart contracts of the majority of stablecoins.
The answer is simple — use a non-custodial wallets (TrustWallet, MetaMask, Terra Station) and non-custodial stablecoins
#basic
What is the crypto wallet and how does it work? Bet your answer isn't correct.
— your crypto isn't stored INSIDE your wallet (TrustWallet or MetaMask) it is stored inside the blockchain. All crypto work on top of a blockchain, remember?
— your wallet is just a UI for your private key to access the blockchain. When you create a wallet via the app, you generate seed phrase > private key > public key (in this exact sequence)
— you can "create" a blockchain address fully offline, your seed phrase and private key may never touch the internet. It is the safest way to store it
— you can memorize the seed phrase and make your memory — the only way to access your crypto
About "creating" the wallet."Create" is not technically the right word in terms of crypto address. The address may "exist" only in terms of whether or not somebody has the private key to access it. When you generate your seed phrase, you also generate a private key assigned to some address and because of it, create/ obtain it
What is the crypto wallet and how does it work? Bet your answer isn't correct.
— your crypto isn't stored INSIDE your wallet (TrustWallet or MetaMask) it is stored inside the blockchain. All crypto work on top of a blockchain, remember?
— your wallet is just a UI for your private key to access the blockchain. When you create a wallet via the app, you generate seed phrase > private key > public key (in this exact sequence)
— you can "create" a blockchain address fully offline, your seed phrase and private key may never touch the internet. It is the safest way to store it
— you can memorize the seed phrase and make your memory — the only way to access your crypto
About "creating" the wallet.
exploring #terra part 2
#basic
Anchor protocol
The "Federal Reserve" of the Terra ecosystem with current TVL of $19,5 billion.
Regulates the "price of money" by changing the funds' rate, considering the supply/ demand on the UST stablecoins.
First of all, Anchor is a landing protocol, where one side, lenders, can land UST for interest.
Another side, borrowers, can borrow this UST using collateral in their possession — bonded/ minted version of ETH, LUNA, etc. to ensure payback.
Anchor sets a fixed landing rate monthly. It also stakes collateral and earns extra interest because of it.
The borrowing rate is flexible.
If interest from staking the collateral + interest payments from borrowers fully cover the fixed landing rate for this month — the Treasury starts to fill.
Treasury is a reserve, uses to always fulfill obligatory rates against lenders.
Anchor changes fixed land rate every month according to filling or draining the Treasury. yesterday is was lowered from 19,5 —> 18%
It is the entry-level/ lowest risk/ "TIPS" level of investments on Terra.
You can find protocol audits here.
—
In the next part, we will look at the Mirror protocol, where tokenized FAANG stocks live and something riskier going on
#basic
Anchor protocol
The "Federal Reserve" of the Terra ecosystem with current TVL of $19,5 billion.
Regulates the "price of money" by changing the funds' rate, considering the supply/ demand on the UST stablecoins.
First of all, Anchor is a landing protocol, where one side, lenders, can land UST for interest.
Another side, borrowers, can borrow this UST using collateral in their possession — bonded/ minted version of ETH, LUNA, etc. to ensure payback.
Anchor sets a fixed landing rate monthly. It also stakes collateral and earns extra interest because of it.
The borrowing rate is flexible.
If interest from staking the collateral + interest payments from borrowers fully cover the fixed landing rate for this month — the Treasury starts to fill.
Treasury is a reserve, uses to always fulfill obligatory rates against lenders.
Anchor changes fixed land rate every month according to filling or draining the Treasury. yesterday is was lowered from 19,5 —> 18%
It is the entry-level/ lowest risk/ "TIPS" level of investments on Terra.
You can find protocol audits here.
—
In the next part, we will look at the Mirror protocol, where tokenized FAANG stocks live and something riskier going on
Meta-post
Сервисы:
— Defi Lama - ваш проводник в исследовании мира Defi. Позволяет разбивать протоколы по чейнам и категориям, сортировать по количеству продуктов и TVL, и всякое другое
Плейлисты, полезные для понимания основ крипты и DeFi:
— Crypto essentials, Defi, Terra ecosystem 🇬🇧
— More detailed explanation of the Defi 🇬🇧
— Defi examples and modern approaches playlist 🇷🇺
Core материалы:
— Обзор стеблкоинов 🇷🇺
Экосистемы:
#terra
#avalanche
Уровень сложности материала / уровень риска описываемого инструмента:
#basic
#intermediate
#advanced
Сервисы:
— Defi Lama - ваш проводник в исследовании мира Defi. Позволяет разбивать протоколы по чейнам и категориям, сортировать по количеству продуктов и TVL, и всякое другое
Плейлисты, полезные для понимания основ крипты и DeFi:
— Crypto essentials, Defi, Terra ecosystem 🇬🇧
— More detailed explanation of the Defi 🇬🇧
— Defi examples and modern approaches playlist 🇷🇺
Core материалы:
— Обзор стеблкоинов 🇷🇺
Экосистемы:
#terra
#avalanche
Уровень сложности материала / уровень риска описываемого инструмента:
#basic
#intermediate
#advanced