After the holidays, we can resume our path in ( ) and as we had seen in the previous in which we presented the macro areas of this sector, in the next articles, we will analyze in detail the individual sectors to better understand what they offer and what can be done. decentralized finance DeFi article This sector takes as a reference that of traditional finance, in which we find 2 subjects, one who needs and another who has liquidity and wants to make it , exploiting a parameter that can be recognized by both parties which is . liquidity profitable interest So once the parties establish the parameters of the loan, such as interest and collateral on the , then we see that the beneficiary obtains the liquidity necessary to do what he wants or for a specific purpose, for example, think of a mortgage for the , and in that case the will go directly to the seller of the property. loan purchase of a house money All normal and natural would you say, but there is a small , and this is represented by the and required by that dispose funds only after approval of the same documents and information that it has managed to recover on our economic profile and not. problem documentation guarantees financial institutions In fact, access to these is subject to our conduct, our past, and the financial situation in which we find ourselves, therefore it is highly discriminated against and 2 subjects, for example a and a , will have access to instruments and liquidity different, or no credit that it is not certain that the financial institution will approve the request for liquidity of the applicant. financial instruments student employer Traditional finance and loans are not democratic tools. Contrary to what one might think that and are scarce, anarchic and unregulated tools, we see that they reveal the and that we can find in the financial world. blockchain crypto most democratic non-discriminatory tools In decentralized finance, platforms have been developed that allow to interact with them, and to from these protocols, and here too we find an interest both for those who provide liquidity, therefore the , and for those who take liquidity, i.e. the , is borrowed. everyone provide or take liquidity creditor debtor These are only on the visual side, but behind they hide complexities that make everything work automatically and without the use of a human intermediary who can control whoever carries out the operation or for what purpose the loan is requested. protocols simple Behind these protocols are hidden that operate and a simple function, that is to raise the capital of creditors, generate interest based on available liquidity and allow the debtor to borrow liquidity, paying interest which is determined by the liquidity of the smart contract that manages the "fund", in fact the interests are inversely proportional to the liquidity, the lower the liquidity and the greater the interest we will receive or have to pay. smart contracts automatically perform As regards the interest, this is counted either as or as , and based on what we are going to do we may receive one or the other, because they follow similar logic and the the basis is always the usual , but which is calculated differently. APR (Annual Percentage Rate) APY (Annual Percentage Yield) concept of interest So in this case, we have a subject who will only have to deposit his own funds and crypto in one of the many protocols that exist and for the entire duration of the deposit, he will obtain an interest that will calculate the smart contract in a variable way, unless we are faced with platforms that offer periods of freezing of funds for a , and on the other hand we will find another subject or the same, who will exploit the liquidity of the protocol to borrow the funds from it, going through bureaucratic of using these funds with third parties. fixed interest without any procedure or share your financial situation or the purpose How can I use these platforms? Lawful question but which contains a very thorough and detailed explanation, and it is for this reason that this and other questions such as which are the best platforms for this kind of financial products, are answered in the book that explains the various topics in detail, which takes the name of " ", important because it not only explains the basics of this sector and the various steps of the various protocols, over 30, but it is also the only one that examines 3 different blockchains such as ( ), and ( ). Mastering DeFi - A practical guide for beginners and the advanced Ethereum ETH EOS Tron TRX A that analyzes the macro-categories of decentralized finance which are: book Lending and BorrowingPaymentsDecentralized ExchangeAsset managementDerivatives All organized into and also divided by blockchain so as to have a complete picture of what we find on the various blockchains and also make the relative comparisons to leave maximum freedom for anyone to use the blockchain they prefer without closing the door to others. 8 chapters analyzed in detail and details, with relative fundamental steps, an indication of the various costs incurred to carry out the various transactions, so as to make the reader aware before he can interact with him. Over 30 protocols Translated into , , , , , , , , and , so as not to exclude anyone from this revolution that is underway and will continue in the years to come. 8 different languages Italian English German French Spanish Portuguese Dutch Japanese

TRON

My vision of the EOS foundation

Understanding The 5 Macro Areas of Decentralized Finance (DeFi)

Check my free book Mastering EOS

Read My Stories

All my books (over 100)

My StartUp

1 NFT = 1 Book 

A must-read book

Invest in my StartUp

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Trading

Nominated for 2022 - HackerNoon Contributor of the Year - Tokenization

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Adoption

Too Long; Didn't Read

Download free Tech Leaders Productivity Report!

DeFi Lending and Borrowing: An Overview

DeFi Lending and Borrowing: An Overview

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

1 Book = 1 NFT

About That Fake Beeple NFT...

An Italian Walks Into the NFT Awards 2020

Bitcoin - where is it cheaper to transfer them?

Can the NFT Save the Digital Magazine?

1 Book = 1 NFT

About That Fake Beeple NFT...

An Italian Walks Into the NFT Awards 2020

Bitcoin - where is it cheaper to transfer them?

Can the NFT Save the Digital Magazine?

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps