Automatic token exchange Uniswap has been one of the success stories of the Ethereum DeFi sector.
Initially created by one coder Hayden Adams (albeit with a lot of help from the community), Uniswap has become one of the key foundational layers to the entire $18 billion DeFi token ecosystem.
Using it, anyone can set up trading options for any Ethereum token that supports its basic ERC20 standards. Similarly, anyone with tokens to spare can lock them into Uniswap’s liquidity pools (LPs), gaining a proportional share of the 0.3% of trading fees generated by each trade.
With the DeFi sector driving the current boom in the crypto industry, TVL has become an almost iconic metric. News headlines glisten with awe-inspiring numbers: $4B, $6B, $7B. It feels like every week there is a new milestone or record broken.
The metric is used to highlight the growth in the DeFi sector, but it may be grossly overstating the pace. In a bull market, it exaggerates asset growth, while in bear markets their outflow. When the effect of price appreciation is taken out of the equation the real picture emerges.
TVL, or total value locked, measures how much capital…
The DeFi ecosystem has gathered a lot of attention recently due to the increase in its Total Value Locked (TVL) metric.
However, given TVL measures both the change in locked token value and the change in the value of these tokens compared to USD, we need to be more nuanced in our analysis, especially during a bull run in USD token values.
We can even ask the question “Is DeFi really growing? “
Although launched as a simple saving-and-loans dapp, things are changing quickly for open source money protocol Aave.
Now firmly installed as a fundamental component of Ethereum’s DeFi stack, Aave’s liquidity pools and interest-bearing aTokens are being used by other developers in new and novel ways.
Most obviously, the protocol has been massively boosted by the current frenzy of Yield Farming, which has boosted the Total Value Locked within its pools to $1.4 billion.
A fact sometimes forgotten in the madness of Ethereum’s current DeFi bull run is that all this activity is underpinned by automatic market maker exchanges such as Uniswap.
Launched back in mid-2019, with version 2.0 coming in May 2020, Uniswap provides a simple interface for users looking to trade tokens, as well as the opportunity for more sophisticated players to earn fees by locking tokens into the liquidity pools that enable this trading.
And more importantly, it enables any blockchain project to launch its ERC20 tokens in a cheap and open manner; also allowing the token to find a market…
Not just the ability for individuals to be able to imagine the consequences of actions yet to be undertaken, the concept of risk is incredibly significant for wider society too.
As we’re currently finding out in the face of the Covid-19 pandemic, thinking through ‘what happens if…?’ enables us to (hopefully) protect the vulnerable while allowing the rest of us to slowly get back to normal — at least the new normal.
Risk shouldn’t be a subjective discussion, though. One of the key developments over the past 100 years has been our ability to define risk with ever more mathematical…
We end June in the context of record-breaking DeFi market cap and volume figures becoming the norm and It is essential to look at the major stories affecting the dapp (decentralized application) sector in regards to user activity and value created.
Its been a strong month for cryptocurrency adoption with a significant announcement from the American esports league. According to a press release, ConsenSys has helped the North American Collegiate League (NACL) build an Ethereum-based platform for ESports match reporting and to automate tournament payments in cryptocurrency.
This move means that NACL players will now be able to receive their…
Despite being a young industry, crypto has already seen a number of hype cycles. The rise and fall of asset prices during the ICO, and then the brief but exciting period of IEO days, brought a lot of attention to blockchain-based projects. Now it appears the DeFi sector wants its turn.
Compound’s successful start of distribution of the COMP token appears to have initiated a trend, and we may start to see more and more of these tokens distributed to the public.
While decentralized governance has been one of the core goals of the crypto industry. The rapid rise of…
Last week DappRadar reported on huge volume surges being observed in the DEX and DeFi space. In the main, those spikes can be attributed to liquidity pouring into the decentralized finance sector through the addition of the Compound governance token COMP.
The Compound protocol allows anyone to supply or borrow Ethereum tokens through a decentralized market. Suppliers earn interest in the cryptocurrency they supply, borrowers pay interest to borrow it.
As already stated in the recent DappRadar DEX’s trading volume report, Decentralized exchanges (DEX) are becoming more and more important to the decentralized world as they represent an important component within Ethereum’s DeFi ecosystem.
One such DEX showing an impressive performance is 0x. 0x is a protocol built on Ethereum that entered the space in July 2019. Since then they have created a platform where developers can join the 0x protocol API.
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