Editors Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.
Editors Note: This article comes from
Chatting with Xiaozha (ID: xiaonazha88)
1. Mortgage loan
, reprinted by Odaily with authorization.
DeFi has become one of the core drivers of Ethereum network applications, and it is also a hot spot in the second half of 2020.
In Hot DeFi, can I still have a bite? How to say it? In the article, the rich ecosystem of DeFi is divided. From the classification of uses, DeFi can be divided into 3 categories:
2. Decentralized exchange (DEX)
3. Derivatives
In this round of liquidity mining boom, the three categories have exploded funds, COMP for mortgage lending, BAL for decentralized exchanges, and OKS for derivatives are all popular, and at the same time, they all promote the development of DeFi.
This article will sort out the DeFi derivatives projects and their characteristics.
1. Review on Mortgage Lending and DEX
Regarding DeFi mortgage lending, you can refer to How much do you know about DeFi lending, you can still get unsecured loans, empty gloves and white wolves and Comp in DeFi is dazzling, but the most demonic is LEND, which has risen by 800%. Mortgage lending model, and the three swordsmen of mortgage lending: Maker, Compound, Aave.
Regarding DeFi decentralized exchanges, you can refer to A strong general has no weak soldiers, COMP can be popular, and DEX has no chance? and When COMP was booming, REN started to stir up, Binance Huobi added 17 million REN tokens, pay attention, sorted out the business model and profitability of decentralized exchanges under the DeFi model.
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Regarding DeFi derivatives, according to data from Debank, Defiprime, etc., the following 9 products are counted, which are mainly distributed on the Ethereum chain, as shown in the figure below.
For the above-mentioned derivatives projects, they can be subdivided into three categories: derivatives transactions, synthetic assets, and insurance. So what are the advantages of doing it with DeFi? Lets talk about it below.
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3. DeFi’s derivatives trading, synthetic assets and insurance advantages
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1. Derivatives trading
In the cryptocurrency derivatives exchanges, the top three centralized exchanges BitMEX, OKex and Binance almost monopolize most of the market trading volume.
Compared with centralized exchanges, the advantages and disadvantages of DEX to open derivatives transactions are as follows:
The difference between DEX and centralized exchanges is that DEX has different compliance frameworks and structures, such as no geographical barriers, no KYC, diversified products, and diversified trading markets. Therefore, the future imagination space and transaction capacity are huge.
2. Synthetic assets
For example, in DEX, you can develop trading varieties to short the Nasdaq stock index, etc.
For example, dYdX has become the largest decentralized leveraged trading platform on Ethereum.
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Synthetic assets are primarily a simulation of an asset.
In our life, there are many simulated behaviors. For example, in a football simulation game, you can combine your favorite players. You can form a team including Messi, Mane and other players. The data of the players comes from the actual performance. Based on these data, you can decide your dream. The teams final score.
Synthetic assets are a simulated expression of the original assets, but not the original assets themselves. It is equivalent to a parallel world of existing assets. At the same time, it is also an alternative through the simulated expression of real assets. The actual asset on-chain method.
Stocks can be synthesized, as well as legal currency, gold, BTC and other assets.
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Why are synthetic assets in demand?
For example, Synthetix is an Ethereum-based synthetic asset issuance protocol. Synthetic assets supported include fiat currencies, cryptocurrencies, and commodities.
Legal currencies include: U.S. dollar (sUSD), euro (sEUR), Japanese yen (sJPY)
Cryptocurrencies include: Bitcoin (sBTC) and Ethereum (sETH), reverse encrypted assets such as iBTC, when the price of BTC falls, the price of iBTC rises;
Commodities are: gold (sXAU) and silver (sXAG);
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3. Insurance
What are the advantages of DeFis decentralized insurance?
1) Improve efficiency and automatically pay. In the traditional insurance industry, making claims is often a difficult task, but with the help of smart contracts that cannot be tampered with and enforced automatically, the traditional insurance business is empowered. Once the conditions mutually agreed upon by both parties are met, the compensation will be made immediately.
2) Reduce costs. Blockchain improves the efficiency and transparency of insurance business processes and reduces the cost of trust among insurance companies, employees, and users. That is, it saves management costs at the company level and reduces premium costs at the user level.
3) Lowering the threshold, the permissionless nature of the blockchain may bring new users to insurance, without cumbersome procedures, it can attract more people to use.
How is the development of decentralized insurance in DeFi?
In the currency circle, several common attacks include: private key stolen, exchange attacked, wallet stolen, smart contract leaked and manipulated, etc. Decentralized insurance protocols often provide some options for users in these scenarios. Insurance business used. For example, Opyn helps users protect DeFi assets from risks through a set of option agreements.
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If DeFi is a cash machine for hackers, then decentralized insurance is the patron saint of DeFi.
This means that with the development of DeFi products and the growth of locked assets, the demand for smart contract insurance, exchange insurance, wallet insurance and other DeFi insurance will continue to increase, and insurance may become the focus of blockchain investors next focus.
