BTC, ETH, ICOs, and now - DeFi: How far Have We Come?

caught the attention of technologists and anarchists alike following the 2008 Global recession. Bitcoin took Bitcoin’s ‘Digital Gold’ status and gave us . took and gave us supply chain management solutions for problems that we never knew existed. Ethereum smart contracts ICOs smart contracts A crypto-winter later, just when we thought that: Altcoin season was over; Decentralized Exchanges were dead in the water; without regulators’ tacit approval. Crypto won’t grow Along came and ended all doubts that that had lived out its 15 seconds of fame. Uniswap crypto was a fad The innocuous-sounding or Decentralized Finance had humble beginnings in the days of the ICOs where ‘Banking the Unbanked’ was the de facto sales pitch of ICO Founders on LinkedIn and Twitter. DeFi Today, metamorphosed into the befitting reply to like and Coinbase. DeFi has metamorphosed centralized exchanges Binance Exchanges like and the similarly named Mooniswap have dealt a death-blow to the Order Book, upon which, centralized exchanges, their listed , and the alleged shady listing-fees market was built. Uniswap tokens liquidity How Does UniSwap Work? Imagine a bank that , hands out eco-friendly plastic tokens instead of a passbook to denote your deposits. You deposit your funds and get your bioplastic tokens. does not want to waste paper Now. banks hold not just dollars, but also, euros, pesos, rupees, dinars, and other such currencies, to facilitate international remittances. While banks use models to determine how much of a currency it should hold, Uniswap lets the community decide. You deposit your funds in a ‘liquidity pool’ to and in return, you get a small fee. While banks give you interest (after subtracting their arbitrary spread), on , this is called liquidity mining. facilitate transactions UniSwap How’s it Different From Banks then? First off, which makes a lot of . Second, banks have salaried employees while the has none. banks are centralized their rules arbitrary UniSwap protocol Also, banks are to protect the general public, is, to put it mildly, . regulated by Governments DeFi risky Finally, on UniSwap, if you , you have a say in the governance structure and implementation - it’s completely transparent. own UNI tokens Impact of UniSwap on the Crypto-verse Centralized exchanges are, for the first time, facing an existential crisis - and they face regulators Token issuers have started offering attractive liquidity mining fees for pooling funds in their token It is easier in the crypto-verse than ever before to pump and dump UniSwap overtook USDT ( ) as the biggest spender of Tether Ethereum’s GAS fees Ethereum’s GAS fees skyrocketed as projects started mushroomingEthereum 2.0 shall be tested by DeFi just as 1.0 was tested by ICOs Conclusion As with all , they’re always subject to and Black Swan events. If you’re looking to dip your toes to see why the crypto-people are going gaga over UniSwap. Investments market risks

BTC, ETH, ICOs, and now - DeFi: How far Have We Come?

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