DeFi

In: blockchain, cryptocurrency, finance.

Backlinks: finance.

DeFi has exploded because of its attractive yield, flexibility & its non-custodial nature.
With DeFi, we can become our own banks by cutting out the middleman involved.
No credit checks. No employment checks. No personal data required. With nothing more than a smartphone and an internet connection, anyone can use blockchain-based financial services applications.

This stuff below ↓ … a TOTAL MESS. I’m still wrapping my head around all this stuff…

All token swaps have DeFi options for providing liquidity, staking and farming and more:

https://aave.com
https://balancer.fi - Eth, Polygon
https://barnbridge.com - Eth, Polygon
https://beefy.finance - ETH compatible multichains
https://cowswap.exchange - zero gas?! CoWs (Coincidence of Wants)
https://curve.fi
https://dmm.exchange - Kyber chain
https://lido.fi - Ethereum only
https://loopring.io - Ethereum + zkRollup L2
https://matcha.xyz
https://pancakeswap.finance
https://pangolin.exchange - Avalanche chain
https://quickswap.exchange - Polygon chain
https://secretswap.io
https://spiritswap.finance - Fantom Opera chain
https://spookyswap.finance - Fantom Opera chain
https://traderjoexyz.com - Avalanche chain
https://uniswap.org
https://zapper.fi - multiple chains
zzz, many many others

Feel the DeFi pulse:

https://blockfolio.com/markets – defi market list
https://daolist.fyi – defi protocol lists
https://defillama.com – defi protocols, dexes, lending, staking…
https://defimarketcap.io – top 100 DeFi tokens by market cap
https://defipulse.com – defi protocols, dexes, lending, staking…

DeFi tokens list:
https://defiprime.com/tokenlist

A looong list of Defi Apps, for all ETH compatible chains:
https://vfat.tools/all

UnRekt :: Find & revoke all the addresses that can spend your tokens!
Supports Binance Smart Chain and Fantom networks
Use emergency withdraw if you were rugged
https://unrekt.hyperjump.fi

Asset management tools:
https://tokensets.com

Crypto staking

Staking is the process of storing funds on a cryptocurrency wallet.
Users can get passive income for providing support of all operations on the blockchain. It’s similar to the bank deposit system and user rewards.

Coin staking gives currency holders some decision power on the network. By staking coins, you gain the ability to vote and generate an income.
It’s similar to how someone would receive interest for holding money in a bank account or giving it to the bank to invest.

Choosing the right coin to stake, is both a numbers game and a gut feeling. Start by experimenting with minimum amounts with particular staking protocols and staking rewards.
Pick a project that resonates with you and one that you expect will be around far into the future. After all, by staking, you’re helping the project to become a success.

All token swaps have DeFi options for staking their own token, which can later be swapped for ETH.
Decent staking examples:

Wallet staking (they use some DEX behind the scenes)

https://atomicwallet.io/staking
https://defiprime.com/staking – providers list
https://guarda.com/staking
https://interest.coinmarketcap.com – providers list
https://support.exodus.com/article/1435-does-exodus-pay-stakes
https://trustwallet.com/staking

Articles & tutorials

Decentralised Finance: Complete Overview & Outlook:
https://youtube.com/watch?v=Vq1bxcoW1jQ

DeFi Projects, alternatives to Robinhood:
https://youtube.com/watch?v=3YHe9-mN2Hs

What is DeFi? Decentralized finance is open, global finance for everyone:
https://academy.shrimpy.io/post/what-is-defi

cryptocurrency loans
cryptocurrency savings accounts
you can become a lender
Tokenize and Trade Everything

Decentralized Finance (DeFi) definition
https://investopedia.com/decentralized-finance-defi-5113835

financial products available on a public decentralized blockchain network, making them open to anyone to use, rather than going through middlemen like banks or brokerages
unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi

What is staking?
https://academy.binance.com/en/articles/what-is-staking

involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network
simply put, staking is the act of locking cryptocurrencies to receive rewards
staking involves validators who lock up their coins so they can be randomly selected by the protocol at specific intervals to create a block
usually, participants that stake larger amounts have a higher chance of being chosen as the next block validator

https://reddit.com/r/SHIBADULTS/comments/ombcq4/difference_between_apr_apy

APR and APY are used in many yield farming programs in DeFi protocols
Both are related to returns, however, they are not the same thing!
APR stands for Annual Percentage Rate. It is the actual annual rate of return, NOT taking into account the effect of compound interest
APY stands for Annual Percentage Yield. It is the actual annual rate of return, taking into account the effect of compound interest
APY is better to calculate your returns on investment, while APR is more common in lending
today’s projects often offer 2 ratios of APR and APY to show users what the rate of return is currently available. Some projects that give daily, 7-day interest rings directly provide APY.

Big brain DeFi yield farming strategies 2 parts

Impermanent loss explained
https://academy.binance.com/en/articles/impermanent-loss-explained

impermanent loss happens when the price of your tokens changes compared to when you deposited them in the pool. The larger the change is, the bigger the loss.
the loss means less dollar value at the time of withdrawal than at the time of deposit
providing liquidity to a liquidity pool can be a profitable venture, but you need to keep the concept of impermanent loss in mind

What are crypto synths?
A derivative is any asset that derives its value from an underlying asset or index
Synthetic assets are blockchain-based cryptocurrency derivatives that act and feel like traditional derivatives
https://academy.shrimpy.io/post/what-are-crypto-synths-synthetic-assets-explained

anyone can issue them: can be minted by anyone using open-source protocols like Synthetix and Mirror
worldwide liquidity: can be traded on any crypto exchange in the world, including unstoppable decentralized exchanges
borderless transfers: synthetic assets are blockchain assets like ERC-20 tokens; you can send and receive them between standard cryptocurrency wallets
frictionless movement: switch between equities, synthetic silver/gold, and other assets without having to hold the underlying asset

How decentralized is DeFi? A framework for classifying lending protocols:
CeFi, DeFi 1…6
https://medium.com/hackernoon/how-decentralized-is-defi-a-framework-for-classifying-lending-protocols-90981f2c007f

Terms

APR

Annual Percentage Rate (APR) is the annual rate of interest charged to borrowers and paid to investors.
APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment.
An APR may not reflect the actual cost of borrowing because of the fees that are included or excluded.

APY

Annual Percentage Yield (APY) is the actual rate of return that will be earned in one year if the interest is compounded.
Compound interest is added periodically to the total invested, increasing the balance. That means each interest payment will be larger, based on the higher balance.
The more often interest is compounded, the better the return will be.

Circulating supply

The amount of coins or tokens that are currently circulating in the cryptocurrency ecosystem.
The number of tokens in the market can increase or decrease over time, depending on its parameters.
Circulating supply could be decreased by coin burns, by permanently eliminating coins in the ecosystem.
It is used for calculating market capitalization.

Between total supply and circulating supply, traders pay more attention to circulating supply, as the coins that are not yet available for public trading, are not taken into account in calculating the market cap.
Also, circulating supply has higher importance as the magnitude of the influx of coins could affect the price of the asset.

LP tokens

Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that run on an automated market maker (AMM) protocol.
Uniswap, Sushi and PancakeSwap are some examples of popular DEXs that distribute LP tokens to their liquidity providers.
Technically speaking, LP tokens aren’t much different from other tokens on the same network.

Market cap

The total value of a cryptocurrency. Calculated by multiplying a coin’s price by its total supply.
If you want to find the next gem coin, look for coins that have a low market cap.
Low market cap coins have more potential for growth, but they also come with a lot more risk!

Total supply

A measure that describes how many coins of a given cryptocurrency can exist (after all mining is completed, if applicable)
The number of coins that are both, in circulating or locked in a certain way.
This includes the tokens that are circulating in the ecosystem plus the ones that haven’t been released to the market, or are locked by the team or for a certain period.
Total Supply does include the whole amount of coins that has been mined or created (excluding the ones burned or destroyed) but are not yet available to be used.

TVL

TVL (Total Value Locked) is the total value of cryptocurrency that is “locked”, or stored, in a DeFi application or smart contract.
For most DeFi platforms, especially those related to lending or swaps, TVL is an important metric as it can directly affect the yields and usability of these applications for end users.
When the TVL of a DeFi application is rising, it is gaining liquidity, popularity, and/or usability.