Risk assessment in DeFi is crucial … ‘Thanks for this statement Octave, now I learned something useful’ To be fair, this sentence is a tautology but its simplicity should not make us lose the meaning of the terms. Risk assessment is an ongoing topic in DeFi. Thanks to audits, the…

This article explores the importance of implementing fixed yield mechanism in DeFi and the different characteristics of some solutions adressing this issue. Fixed yield is a standard mechanism in traditional finance Fixed income represents a huge sector of activity in traditional finance which is declined in several forms : government bonds, corporate loans, real…

My article is based on Balaji’s work on quantifying decentralization through Gini coefficient and Nakamoto coefficient and Vitalik’s post on Gini coefficient imperfections. We will combine the takeaways from these two articles in order to measure decentralization from three blockchains: Ethereum (Mainnet and Beacon chain), Avalanche and Solana. Summary Five categories…

In the light of the last two articles on decentralized insurance protocols, I wanted to take a step backward and to think of the characterisation of risk in DeFi. What is risk ? “Risk is the possibility that something bad will happen.” Behind this simplistic definition, there are two concrete elements. Uncertainty: we are…

After having covered a series of articles on the mechanics of various decentralized exchange protocols, I am now focusing on decentralized insurance protocols. The main reason is that DeFi is a very volatile industry. If DeFi is to be democratized in the future and open its doors to the next…

First, I will describe how decentralized insurance protocols work : Nexus Mutual, Insurace protocol, Unslashed finance etc and their specificities. Then, I am focusing on the not so best practice of these protocols and will try to find alternatives. How decentralized insurance protocols work ? When we talk about decentralized insurance, we must first consider the…

This is an introduction to Angle protocol and its differenciation to other stablecoins Angle Protocol is a decentralized finance protocol that aims to facilitate the issuance of any type of stablecoin. …

We introduced in the previous section the slippage and impermanent losses. Here we focus on another problem tied to the infrastructure of blockchains : Introducing mempool

From token agnotism to token dependance In this new chapter we will look at Bancor and how the protocol combats the main plague of AMMs: impermanent losses. Quick introduction Bancor is a DEX protocol which enable the creation of exchange pools. Bancor pools relies heavily on the Bancor protocol native-token called BNT. Indeed, themain characteristics of these pools…