Ano ang DeFi sa Cryptocurrency ? (Bahagi 2)

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Mga Pangunahiing Kaalaman sa WikiFX (14 Marso 2021) -

Mga Platform sa Pagpapautang

Lending markets are one popular form of DeFi, which connects borrowers to lenders of cryptocurrencies. One popular platform, Compound, allows users to borrow cryptocurrencies or offer their own loans. Users can make money off of interest for lending out their money. Compound sets the interest rates algorithmically, so if theres higher demand to borrow a cryptocurrency, the interest rates will be pushed higher.

DeFi lending is collateral-based, meaning in order to take out a loan, a user needs to put up collateral – often ether, the token that powers Ethereum. That means users dont give out their identity or associated credit score to take out a loan, which is how normal, non-DeFi loans operate.

Matatag na mga barya (Stablecoin)

Another form of DeFi is the stablecoin. Cryptocurrencies often experience sharper price fluctuations than fiat, which isnt a good quality for people who want to know how much their money will be worth a week from now. Stablecoins peg cryptocurrencies to non-cryptocurrencies, such as the U.S. dollar, in order to keep the price under control. As the name implies, stablecoins aim to bring price “stability.”

Mga merkado ng hula

One of the oldest DeFi applications living on Ethereum is a so-called “prediction market,” where users bet on the outcome of some event, such as “Will Donald Trump win the 2020 presidential election？”

The goal of the participants is, obviously, to make money, though prediction markets can sometimes better predict outcomes than conventional methods, like polling. Centralized prediction markets with good track records in this regard include Intrade and PredictIt. DeFi has the potential to boost interest in prediction markets, since they are traditionally frowned upon by governments and often shut down when run in a centralized manner.

DeFi FAQ

1) Paano ako makakakuha ng pera sa DeFi？

The value locked up in Ethereum DeFi projects has been exploding, with many users reportedly making a lot of money.

Using Ethereum-based lending apps, as mentioned above, users can generate “passive income” by loaning out their money and generating interest from the loans. Yield farming, described above, has the potential for even larger returns, but with larger risk. It allows for users to leverage the lending aspect of DeFi to put their crypto assets to work generating the best possible returns. However, these systems tend to be complex and often lack transparency.

2) Ligtas ba ang pamumuhunan sa DeFi？

No, its risky. Many believe DeFi is the future of finance and that investing in the disruptive technology early could lead to massive gains.

But its difficult for newcomers to separate the good projects from the bad. And, there has been plenty of bad.

As DeFi has increased in activity and popularity through 2020, many DeFi applications, such as meme coin YAM, have crashed and burned, sending the market capitalization from $60 million to $0 in 35 minutes. Other DeFi projects, including Hotdog and Pizza, faced the same fate, and many investors lost a lot of money.

In addition, DeFi bugs are unfortunately still very common. Smart contracts are powerful, but they cant be changed once the rules are baked into the protocol, which often makes bugs permanent and thus increasing risk.

3) Kailan magiging mainstream ang DeFi？

While more and more people are being drawn to these DeFi applications, it‘s hard to say where they’ll go. Much of that depends on who finds them useful and why. Many believe various DeFi projects have the potential to become the next Robinhood, drawing in hordes of new users by making financial applications more inclusive and open to those who dont traditionally have access to such platforms.

This financial technology is new, experimental and isnt without problems, especially with regard to security or scalability.

Developers hope to eventually rectify these problems. Ethereum 2.0 could tackle scalability concerns through a concept known as sharding, a way of splitting the underlying database into smaller pieces that are more manageable for individual users to run.

4) Paano makakaapekto ang Ethereum 2.0 sa DeFi？

Ethereum 2.0 isn‘t a panacea for all of DeFi’s issues, but it‘s a start. Other protocols such as Raiden and TrueBit are also in the works to further tackle Ethereum’s scalability issues.

If and when these solutions fall into place, Ethereums DeFi experiments will have an even better chance of becoming real products, potentially even going mainstream.

Bitcoin na bilang DeFi

While Ethereum is top dog in the DeFi world, many proponents of Bitcoin share the goal of cutting the middleman out of more complex financial transactions, and theyve developed ways to do so using the Bitcoin protocol.

Companies such as DG Labs and Suredbits, for instance, are working on a Bitcoin DeFi technology called discreet log contracts (DLC). DLC offers a way to execute more complex financial contracts, such as derivatives, with the help of Bitcoin. One use case of DLC is to pay out bitcoin to someone only if certain future conditions are met, say, if the Chicago White Sox team win its next baseball game, the money will be dispensed to the winner.

(The End.)

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