Friday, October 30, 2020

What is the hot DeFi recently?

 Warm reminder: Today’s program is suitable for people who have a certain basic understanding of the concept of the blockchain system. The relevant terminology is also explained below for your reference.

Since the beginning of this year, the investment growth trend in the global pan-blockchain field has been rapid. Judging from the hot track of investment, DeFi is the segment with the largest financing scale except for investment funds.

DeFi is the abbreviation of Decentralized Finance, similar to Bitcoin's peer-to-peer payment, DeFi aims to allow anyone in the world to conduct financial activities anytime, anywhere. This year DeFi is a block chain line long hot topic in the industry, the total amount of financing it disclosed the third quarter of approximately $ 131 million, or approximately 178.72%.

So what exactly is DeFi, and what value does it have such an influence and popularity? Today, we invite to Zheng Jialiang, he was a block vote chain , research director at Investment Fund HashKey Capital, earlier this year, also had a guest in our program, HashKey Capital also frequently shot in the third quarter, a number of investment projects Defi.


Ding Jiao, co-founder of Sound Lively


Zheng Jialiang, Research Director of HashKey Capital

 【Later stage】

DiCaprixin, Mrs. Chen

[Main topic]

[01:25] What is Defy

[06:16] Compound product form

[11:16] Why is Uniswap suddenly hot?

[22:50] What should be paid attention to when investing in DeFi

[26:19] How to realize the insurance form of DeFi

[26:19] DeFi application of traditional finance

 【Related Reading】

* DeFi (Decentralized Finance), decentralized finance, aims to allow anyone in the world to conduct financial activities anytime, anywhere without a centralized entity.

* DEX (Decentralized exchange), a decentralized exchange, is a decentralized cryptocurrency exchange without centralization. The decentralized exchange allows peer-to-peer cryptocurrency transactions, and users do not need to transfer assets to the exchange, thus reducing the risk of assets being stolen due to hacker attacks on the exchange.

* Ethereum (Ethereum), Ethereum is a global decentralized "second-generation blockchain platform". This platform can perform financial or other types of applications. Through its dedicated cryptocurrency, Ether, it provides a decentralized virtual machine (Ethereum Virtual Machine) to process peer-to-peer contracts. Ethereum is also called, second only to Bitcoin.

* Stablecoins, a programmable encrypted electronic currency, is a currency category that only existed after the birth of blockchain technology. Such as: USDT, TrueUSD, BitUSD, DAI, etc.

* DAI, DAI is a stable token on the Ethereum blockchain with a stable value of $1. One of the main uses of DAI is as a stable hedging or offsetting the volatility of more popular crypto assets such as Ethereum or Bitcoin.

* Liquidity mining. "Liquidity mining" in the DeFi field refers to depositing or lending designated token assets as required through DeFi products with a mining mechanism to provide liquidity for the product's fund pool. The process of gains.

* Compound is the world's first platform to provide decentralized digital currency lending services. It is based on the implementation of Ethereum. You can put your idle digital currency into the fund pool and deposit the currency to earn interest. If you have a good investment channel, you can also borrow the assets you need from the Compound fund pool in the form of over-collateralization. Used for investment appreciation. In June 2020, the Compound team issued a digital currency COMP for community governance, and the issuance of COMP is one of the important incentives for the outbreak of the DeFi industry in 2020.

* Uniswap is an Ethereum-based protocol designed to promote automatic exchange transactions between token digital assets and automatically provide liquidity on Ethereum. Uniswap is completely deployed on the chain, and any individual user can use this protocol as long as the decentralized wallet software is installed. Uniswap can also be considered as a DeFi project because it attempts to use decentralized protocols to completely disintermediate the digital asset transaction process.

* DApps, namely decentralized applications, are applications that run on a P2P network rather than on a separate computer. It is designed to exist on the Internet in a way that is not controlled by any single entity.

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