Decentralized debt market insights
Trading signals from Open Finance (Decentralized Finance) protocols
Blockchains store information and transfer value very well. Despite this, making sense of the data is hard. As more financial services move on-chain, services with a niche understanding of this open state, like debt markets, will be needed to analyze this information.
LoanScan normalizes data across smart contracts and protocols to provide clear signals, insights, and analytics. We stay current with updates to protocols, forks, price oracles, smart contracts, vulnerabilities, and patches that occur continuously in this nascent asset class.
On March 22, 2019 a Binance trader took a directional bet long ZRX and short ETH. They withdrew ZRX from Binance and deposited it to Compound liquidity pools as collateral. After which the trader borrowed 1000 ETH twice to short sell it on Binance. Below you will the step by step analysis of the on-chain events.
Leverage (BAT, ZRX, and REP) in 5 steps:
Step 1. Withdrawals from Binance of BAT, ZRX and REP to Compound liquidity pools
Step 2. User borrows WETH from Compound
Step 3. User converts WETH (Wrapped Ether) to ETH
Step 4. User sends ETH to Binance
Step 5. Subsequent spikes (most notably in ZRX) as we believe that ETH was sold for ZRX.
It is mission critical to many companies operations and investment decisions to be able to reason about on-chain activity. Examples like the one above are a small subset of the insights that can be gleaned in the emerging on-chain debt markets.
As the directional arrow of finance trends on to blockchains, LoanScan will be there to provide financial analytics to ensure investment decisions are made with clarity.
