DeFi News

  • The ultimate guide and analytical framework for meta-governance

    With various DeFi protocols collapsing, yields lower and token prices falling, many DeFi commentators have begun to wonder if we have an open, permissionless, composable, blockchain-based financial potential of the system. But in some areas, DeFi’s value proposition continues to shine. These flashpoints will also continue to prove that DeFi can achieve things that traditional financial systems cannot. One of the flash points is meta-governance, which refers to the act of one DAO participating in the governance process of another DAO by using tokens. Meta-governance is an emerging strategic lever for digital…

    DeFi News 2022-06-08
  • DeFi Risk Removal: Analyzing Systemic Risk in Decentralized Systems

    There is never a one-size-fits-all way to avoid financial disaster. In an unpredictable society, systemic risk is only partially addressed. Economic conditions, technology, and human behavior all change over time, so the approach to systemic risk must also remain variable. This development will not necessarily lead to a more efficient and stable state, as it will be continuously influenced by innovation, regulatory actions, changing psychological patterns and behaviors of financial market participants. This is true in both traditional finance and decentralized finance. We define systemic risk as: risk in an interconnected network of…

    2022-06-07 DeFi News
  • Word for word interpretation of SEC Chairman Gensler’s speech

    This article is a verbatim interpretation of Gary Gensler’s presentation at the Pennsylvania Legal Capital Markets Association annual meeting. We try to predict the policy tendencies of financial regulation of crypto assets in the United States. We tried to translate “policy jargon” into plain English and read between the lines the signals from the Biden administration. Today, we are talking about a crypto market of around $2 trillion. In February, you may have all noticed a Super Bowl ad for several crypto platforms. This isn’t the first time we’ve seen something innovative…

    DeFi News 2022-06-07
  • What is the development status of DeFi projects in the early stage of the second anniversary of liquidity mining?

    Since Compound launched “Lending as Mining” in June 2020, DeFi has become popular, and “Liquidity Mining” has been popular for nearly two years. Due to the increase in the activity volume on the chain driven by DeFi, the gas fee has been at a high level for a long time. When Curve issued governance tokens in August 2020, with a gas price of 250 GWEI, a deposit transaction in Curve required a gas fee of about 0.3 ETH. Liquidity mining not only helped the cold start of the project, but also spawned a huge…

    2022-06-07 DeFi News
  • Top Ten Attack Modes of Blockchain Series II: DeFi Hacking Attacks Are Really Hard to Prevent

    Welcome to the series of articles on ” Top 10 Blockchain Attacks ” planned by Chengdu Lianan. Last week, I shared the series of ten attack methods of blockchain (1) – 51% attack . Did you enjoy watching it? Without further ado, today, we will start the second article in the series – DeFi Hacking Attacks , and continue to explain the attack routines and loopholes in the blockchain security ecosystem. 01  –  What is DeFi? Why do hackers prefer to attack DeFi projects? The birth of blockchain technology has brought revolutionary breakthroughs in traditional finance, data privacy, supply chain, cross-border remittance…

    2022-06-03 DeFi News
  • Thinking about the complex reflexive design of DeFi token economics: Is it sustainable?

    Do you like to stay up late thinking about the cause and effect dilemma? Like the grandfather paradox. If you go back in time and kill your grandfather before your father is born, but if your grandfather dies, there will be no father, and there will be no you without your father, then who killed your grandfather? Or your presence means that your grandfather didn’t die because of you, so why did you kill your grandfather? If you like DeFi, you will also like to think about how the causal relationship between…

    2022-05-31 DeFi News
  • VC Roundup: Blockchain Gaming, DAO Management, and the Rise of Asset Tokenization

    Irreverent Labs, Lighthouse Labs, N3TWORK Studios, DoraHacks, iZUMi Finance, Common and Centrifuge are some of the headliners of recent funding deals in the blockchain space. Bitcoin (BTC) and the broader cryptocurrency market have offered little consolation in recent weeks as macroeconomic headwinds and the implosion of the Terra ecosystem continue to reverberate. However, if we ignore the current price action, we observe a growing industry that also attracts significant capital investment from major investors. The latest issue of Venture Capital (VC) Roundup highlights the continued growth of Web3 games, Metaverse…

    News 2022-05-31
  • Where do DeFi revenue come from? The truth that 99% of investors don’t know

    Lenders, stakers and liquidity providers earn percentage rewards (APR) from DeFi protocols by depositing tokens. So where exactly do these yields and promised APRs come from? Many DeFi projects are built on unsustainable Ponzi economics backed by inflationary models. Therefore, when we invest in a DeFi project, it is important to determine whether it has a real source of income. The majority of this revenue will go to the holders of the project’s tokens. An example of real income Here are some examples of what DeFi actually earns: 1. Transaction fees for LPs;…

    2022-05-31 DeFi News
  • Bankless: The Ultimate Guide to Meta-Governance

    With protocols collapsing, yields compressing, and prices falling, many DeFi watchers are starting to wonder (if ever) when we will begin to realize the potential of an open, permissionless, composable, blockchain-based financial system. There are some DeFi that have become more and more valuable, and these continue to prove that DeFi can achieve things that the traditional financial system cannot. Metagovernance is one such example: Metagovernance refers to the act of one DAO participating in the governance process of another DAO by using tokens. Meta-governance is an emerging strategic lever that…

  • DeFi winter is still unfolding

    While the global stock market will enter a bear market in 2022, the DeFi bear market has been going on for a year. key point The DeFi bear market has been going on for more than a year, and at the same time, many of its top projects have fallen by more than 80% from their all-time highs. MakerDAO, Aave, and Uniswap continued to decline during this period, even as they maintained or improved fundamentals. Compound, the second-largest lending protocol, has lost 92.5% of its value, and it can be…

    DeFi News 2022-05-30
  • A Brief History of the Etherverse

    We delve into Ethereum’s most important use cases by quantifying gas consumption across major tokens, protocols, and transaction classes. Our analysis reveals the complex and evolving nature of the Ethereum ecosystem.  It’s been two years since we last looked at the Ethereum ecosystem from a market perspective on gas — a long time in this volatile and fast-moving industry. Brand new use cases have since emerged, and for existing use cases, new protocols have emerged and gained market share. This follow-up post is long overdue and coincides with the release of a new…

    2022-05-30 Ethereum News
  • The Decentralization Myth of DeFi Protocols

    Recently, Uniswap faced a class action lawsuit: Uniswap founder Hayden Adams and his company (Universal Navigation Inc.), and the investors behind Uniswap (including A16Z, Paradigm, Union Square Ventures) were sued in the Southern District Court of New York, accused of ” Unlawfully promote, offer, sell unregistered securities” and fail to verify user identities as required by regulatory requirements. The core question that everyone is concerned about is: whether decentralized exchanges (DEXs) like Uniswap should be held responsible, and by whom. Additionally, lossless lottery protocol PoolTogether, allegedly operated by PoolTogether Inc., is also…

  • Bankless: The Ultimate Guide to Meta-Governance: The Next Trend in Crypto?

    With protocols collapsing, yields compressing and prices falling, many DeFi watchers can’t help but wonder when we’ll begin to realize the potential of an open, permissionless, composable, blockchain-based financial system. In some corners of DeFi, its value proposition continues to shine. These flashpoints continue to prove that DeFi can do things that traditional financial systems cannot. An example of this is metagovernance: the act of one DAO participating in the governance process of another DAO by using tokens. Meta-governance is an emerging strategic lever that digital organizations can leverage to pursue specific goals….

    DeFi News 2022-05-27
  • DeFI Incentive Spending: Efficiency and Effectiveness

    Part 1: The Historical Background Behind Incentive Spending Over the past 500 years of financial history, exchanges have grown tremendously in terms of efficiency, accessibility and complexity. However, their purpose has remained unchanged since the earliest organized exchanges in medieval Europe: to quickly match buyers and sellers of financial assets at mutually agreed prices. Due to the prevalence of electronic transactions, some operators have begun to design related functions for electronic transaction systems in order to attract more market shares. The areas of competition between exchanges are mainly on execution speed and…

    DeFi News 2022-05-27
  • Have you felt the panic in the crypto asset market?

    Is DeFi dead? A DeFi Investor’s View Declining Total Value Locked (TVL), evaporating yields, decoupling risk, protocol hacks, UST severe de-pegging, and poor macro outlook. Total Value Locked (TVL) fell from over $240 billion in January to around $110 billion today (-55%). At the same time, people have turned to the safe USDC and DAI stablecoins, whose yields have fallen below 2%, meaning that the yield cannot be used to pay for some junk coins. Even if you look further on this risk curve, taking the very active ETH/USDC fund pair…

  • DeFi is unbearable: cross-chain bridges have become “cash machines for hackers”

    While gaming DApps like Axie Infinity and DeFi Kingdoms maintain entire ecosystems like Ronin and Harmony, network protocols like Fantom or Avalance are already making a fortune in the DeFi wave. These blockchains have become a great alternative to Ethereum gas fees and relatively slow transaction times. It is more urgent than ever to want an easy way to move assets between protocols on different blockchains. This is where the blockchain cross-chain bridge was born. Due to the application of multi-chain scenarios, the total locked value of all DeFi DApps has soared. The…

    2022-05-21 DeFi News
  • Behind the Scenes of Decentralized Theater: A Study on the Immutability of DeFi Protocols

    Decentralized finance (DeFi) brings autonomous protocols whose functionality is ensured by (sometimes) immutable smart contracts. It enables individuals from all over the world to use financial services that are simultaneously sovereign, accessible, and more efficient and resilient than those available in traditional finance. It’s an endearing story, and the newcomer is coaxed into a trance: the reality is much more nuanced. In fact, a handful of protocols meet this reality, but most fall far short of the mark. When bulls are out, interest in protocol resilience is often shallow: the only thing that…

    2022-05-20 DeFi News
  • Bankless: The Best Gains in a Crypto Bear Market

    Is the glory days of DeFi yield farming over? As token prices drop, liquidity mining incentives dry up, on-chain activity slows, and DeFi yields continue to decline. Gone are the days when stablecoin deposits placed into DeFi money markets could generate double-digit returns, as it is now difficult to find returns above 4% in these same protocols. The drying up of yields has also been accompanied by an outflow of funds from DeFi as a whole, with the collapse of UST, the TVL (total value locked) of all blockchains fell from…

    News 2022-05-20
  • DeSoc After DeFi: Finding the Soul of Web 3

    Web 3 shocked the world by creating a parallel financial system with unprecedented flexibility and creativity in less than a decade. Cryptography and economic primitives or building blocks, such as public key cryptography, smart contracts, proof-of-work, and proof-of-stake, have formed a complex and open ecosystem for expressing financial transactions. However, the economic value of financial transactions is generated by humans and their relationships. Since Web 3 lacks primitives to represent this social identity, it has fundamentally relied on the very centralized Web 2 structure it was designed to surpass, replicating their limitations….

    DeFi News 2022-05-20
  • Metaverse , NFT or DeFi, which is the future of the currency circle?

    Kumar Gaurav, founder and CEO of Cashaa, believes that NFTs and the Metaverse are bringing together the logical sequence of human evolution. The Metaverse is a virtual world where people from all over the world can meet, play, watch and do business. The Metaverse promises to be the next step in the evolution of the internet. In these 3D spaces of the Metaverse, people will be able to work, meet, play games and communicate with each other. According to Gaurav, humans are social animals, and this can all be achieved…

    DeFi News 2022-05-19