Gachengoh 🇰🇪
Gachengoh 🇰🇪

@Gachengoh

10 تغريدة 19 قراءة Nov 19, 2021
1/ Thread: #DeFi For Dummies 002: #DeFi Basics.
DeFi is a hybrid #smartcontract that combines on-chain code with off-chain proofs.
DeFi relies heavily on cryptography and blockchain technologies.
#blockchain #DeFi
#smartcontracts
2/ Thread: #DeFi For Dummies 002: #DeFi Basics
DeFi is taking on the contractual agreement you find on the global financial system in a permisonless and open way. MakerDao was the first DeFi project started in 2015
3/ Thread: #DeFi For Dummies 002: #DeFi Basics
The #DeFi EcoSystem.
a) #Lending & #Borrowing:- These are algorithmic autonomous interest protocols that allow users to supply protocols like ether etc.Eg: Compound and Aave
4/ Thread: #DeFi For Dummies 002: #DeFi Basics
The #DeFi EcoSystem.
b) #Stablecoins:- Are cryptocurrencies created using smart contracts that are pegged to the US dollar eg Dai, USDT, USDC etc.
5/ Thread: #DeFi For Dummies 002:
c) #Dexes(Decentralized Exchanges):- Allow exchange of crypto asset in a completely decentralized & permissionless way without giving up the custody of the coins.types of dexes: liquidity pool dexes: uniswap, sushi,and Booked dexes: Loopring
5/ Thread: #DeFi For Dummies 002:
d) #Derivatives:- Are #smartcontracts that derive their values from the performance of an underlying assets. Eg Synthetics.
5/ Thread: #DeFi For Dummies 002:
e) #MarginTrading:- Gives the users the ability to use borrowed funds to increase leverage for trading.
7/ Thread: #DeFi For Dummies 002:
f) #Insurance: Provides guarantees for compensation.
8/ Thread: #DeFi For Dummies 002:
g) #Oracles: Deliver Data feeds from real world data ti smart contracts. Eg. #Chainlink
10/ Thread: #DeFi For Dummies 002
Advantages of #DeFi
-Permisonless
-OpenSource
-Censorship Resistance
-Cheaper
-Built on Blockchain

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