SS66610888
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Post inglese
D.e.f.i.
Decentralised finance
Long and boring premise, skip it if you want.
Let's start with the assumption that I have been investing in cryptocurrencies for a few years now, and I can say that they can give very high gains but also steep losses.
Do not believe those who say they are a safe investment and even those who speak without knowing anything about the subject, I read for example many times here, that the golden age of bitcoin was years ago, but apparently they were wrong because now is 10 times the value of a couple of years ago.
This shows that it is extremely volatile and as such extremely risky.
To give an example as I have told on the English forum I had about ** euros of xrp and at the end of December, within a few hours it became **.
Imagine if you put the money you need to live on there....
Luckily for me I reinvested that ** euros and now I have more than **.
But who knows, maybe within a week it will disappear (let's cheat).
This is the approach to have with crypto.
They are bets nothing for sure, if you want to buy them put only exclusively the money you can lose like the football card etc..
However I make this post in relation to cobra's sermon on bitcoins, as he said and I agree, bitcoins were born to give more freedom and make the economy fairer.
It must be said,that if our enemies manage to take over these systems,or even worse create digital fiat currencies it will be trouble.
But as said by cobra and as I said about a year ago, even money in the bank cards etc are virtual money, which can be taken away depending on the tastes of our enemies, that's why even if I invensto or speculate for better say in crypto I have always been undecided if bitcoin is freedom or not, as I said in another post here on the forum, where about a year ago a user praised the freedom of bitcoin and I kinda turned off his enthusiasm, but I was probably wrong, I know they are not necessarily the absolute good, they are a tool and we will see where they go, it could be for us or against us.
Without defi it is almost certain that crypto will be against us in the long run, because of the laws and restrictions that may be made, but with defi it is almost certain that crypto will be in our favour because as we will see it is a system that cuts out the middlemen and therefore limits laws etc. The real freedom is in cash, and that's what we get.
The real freedom is with cash, but as we know they are trying to restrict it more and more, so better crypto currencies than digital state currencies.
Our hope comes from Defi, decentralised finance, which if and when discovered by the whole world will solve many problems and avoid the control of our enemies over crypto.
After this long, boring and perhaps useless introduction, I will try to explain in broad terms what it is and what defi is for.
True explanation of the Defi
DeFi (Decentralised Finance) is a set of services and applications created using blockchain, cryptocurrencies, tokens and smart contracts, the most widely used blockchain by far being Ethereum.
These applications are responsible for providing services that are normally offered by banks, or exchange trading platforms etc.
In practice, to put it in more understandable words, defi is a parallel banking sector that offers services to people who cannot or do not want to access these services through banks.
Moreover, it does so at infinitely lower prices and interests and with much more anonymity and security.
Basically, to put it in even simpler words
Fucking automated programs handle these transactions, loans, etc. anonymously, quickly and without intermediaries, and moreover reduces costs drastically, and gives everyone the opportunity to access free banking services anonymously and not controlled by banks and institutions.
What services does the defi offer?
-Grant or take out a loan
-Dramatically reduce fees for money transfers, loans and deposits.
-Receive passive security annuities on cryptocurrencies
- gives access to financial and banking services to any country in the world, even the most underdeveloped.
To explain how loans with Defi work I will use the most famous lending platform, maker Dao, as an example.
Basically you can get a loan on maker dao giving as collateral the cryptocurrency ethereum, when you give as collateral ethereum you will receive in exchange the stablecoin Dai (which being a stable coin is pegged to the price of the dollar, 1 dai = 1 dollar)
Once you receive the Dai you can transfer them in any currency even fiat on your bank account and buy what you want even a rubber doll if you really like.
Once returned the borrowed Dai will be burned, and you will be given back your ethereum put as collateral.
Usually a little less than 50% of the collateral is loaned out.
Let's assume that if you give 3 ethereums as collateral you will receive the equivalent of 2 ethereums in gold.
If, hypothetically, you had borrowed $100 when ethereum cost $200 and the value of ETH grew by 500%, you would still have to pay back $100 + the accumulated interest, since the loan is provided in the stablecoin DAI.
Another service of defi is
Decentralised Exchange Protocols (DEX) - the most popular DEX platforms in the DeFi market are Uniswap and Bancor. DeFi's decentralised exchanges help to quickly convert one cryptocurrency into another, regardless of liquidity. That is, it is no longer necessary to use an exchange: the buyer simply gives one coin and immediately receives another from the reserves of the decentralised exchange.
This is very good because it excludes exchanges that can either steal your funds or condition the market.
For example xrp which I mentioned earlier has lost a lot of money not only because it has been sued by the SEC but also because many exchanges have said they want to depose it, i.e. no longer allow the exchange of that cryptocurrency.
Other services are
Derivatives and forecasting services: the most popular platforms in this DeFi segment are Synthetix and Augur. The latter allow the creation of tokens based on gold, silver and other assets. Once the token is created, the platform monitors the market behaviour of the asset and models it, which enables cost forecasting. In addition, these platforms allow users to quickly create their own tokens of generally accepted standards (e.g. ERC20).
Payment services - DeFi's most popular platform in this area is known to almost everyone and is called Lightning Network, a second layer of Bitcoin. Thanks to the protocol, users can make instant Bitcoin transactions without fees.
This is very good because I see difficult adoption of Bitcoin when a transaction without the defiance repeats hours.
Can you imagine getting a coffee in one minute and waiting three hours to pay for it?
Defi solves this problem as well.
Overall, the DeFi industry is a huge leap forward for the entire cryptocurrency market, as traditional financial institutions have finally gained a competitor that could undermine their monopoly on absolute control over finances. The DeFi market is beneficial to both the regular user and the industry at large.
Benefits for users
- Financial services can be obtained by bypassing the bank and where banks are simply not there;
- almost anyone can create and list their assets on the market;
- transactions are fast and no longer require several days' processing;
- fees and interest rates are significantly lower than with banks;
- to earn money with cryptocurrencies, it is now not necessary to trade.
Benefits for cryptocurrency
- cryptocurrencies have been given a new lease of life, which increases their value;
- DeFi's services simplify compatibility between different currencies and blockchains and thus remove technical barriers;
- the possibility of obtaining a cheap loan, transferring funds from the other side of the world or creating one's own digital asset encourages people to invest in cryptocurrencies.
- Decentralised finance (DeFi) is blazing a new trail for cryptocurrencies.
Thus, cryptocurrencies are now not only a risky investment in which you invest to make a quick profit, but also a whole set of tools for financial transactions, which will expand over time to, perhaps, the size of the traditional financial sector or even surpass it.
I translated my post, with the automatic translator, I hope you understand.
D.e.f.i.
Decentralised finance
Long and boring premise, skip it if you want.
Let's start with the assumption that I have been investing in cryptocurrencies for a few years now, and I can say that they can give very high gains but also steep losses.
Do not believe those who say they are a safe investment and even those who speak without knowing anything about the subject, I read for example many times here, that the golden age of bitcoin was years ago, but apparently they were wrong because now is 10 times the value of a couple of years ago.
This shows that it is extremely volatile and as such extremely risky.
To give an example as I have told on the English forum I had about ** euros of xrp and at the end of December, within a few hours it became **.
Imagine if you put the money you need to live on there....
Luckily for me I reinvested that ** euros and now I have more than **.
But who knows, maybe within a week it will disappear (let's cheat).
This is the approach to have with crypto.
They are bets nothing for sure, if you want to buy them put only exclusively the money you can lose like the football card etc..
However I make this post in relation to cobra's sermon on bitcoins, as he said and I agree, bitcoins were born to give more freedom and make the economy fairer.
It must be said,that if our enemies manage to take over these systems,or even worse create digital fiat currencies it will be trouble.
But as said by cobra and as I said about a year ago, even money in the bank cards etc are virtual money, which can be taken away depending on the tastes of our enemies, that's why even if I invensto or speculate for better say in crypto I have always been undecided if bitcoin is freedom or not, as I said in another post here on the forum, where about a year ago a user praised the freedom of bitcoin and I kinda turned off his enthusiasm, but I was probably wrong, I know they are not necessarily the absolute good, they are a tool and we will see where they go, it could be for us or against us.
Without defi it is almost certain that crypto will be against us in the long run, because of the laws and restrictions that may be made, but with defi it is almost certain that crypto will be in our favour because as we will see it is a system that cuts out the middlemen and therefore limits laws etc. The real freedom is in cash, and that's what we get.
The real freedom is with cash, but as we know they are trying to restrict it more and more, so better crypto currencies than digital state currencies.
Our hope comes from Defi, decentralised finance, which if and when discovered by the whole world will solve many problems and avoid the control of our enemies over crypto.
After this long, boring and perhaps useless introduction, I will try to explain in broad terms what it is and what defi is for.
True explanation of the Defi
DeFi (Decentralised Finance) is a set of services and applications created using blockchain, cryptocurrencies, tokens and smart contracts, the most widely used blockchain by far being Ethereum.
These applications are responsible for providing services that are normally offered by banks, or exchange trading platforms etc.
In practice, to put it in more understandable words, defi is a parallel banking sector that offers services to people who cannot or do not want to access these services through banks.
Moreover, it does so at infinitely lower prices and interests and with much more anonymity and security.
Basically, to put it in even simpler words
Fucking automated programs handle these transactions, loans, etc. anonymously, quickly and without intermediaries, and moreover reduces costs drastically, and gives everyone the opportunity to access free banking services anonymously and not controlled by banks and institutions.
What services does the defi offer?
-Grant or take out a loan
-Dramatically reduce fees for money transfers, loans and deposits.
-Receive passive security annuities on cryptocurrencies
- gives access to financial and banking services to any country in the world, even the most underdeveloped.
To explain how loans with Defi work I will use the most famous lending platform, maker Dao, as an example.
Basically you can get a loan on maker dao giving as collateral the cryptocurrency ethereum, when you give as collateral ethereum you will receive in exchange the stablecoin Dai (which being a stable coin is pegged to the price of the dollar, 1 dai = 1 dollar)
Once you receive the Dai you can transfer them in any currency even fiat on your bank account and buy what you want even a rubber doll if you really like.
Once returned the borrowed Dai will be burned, and you will be given back your ethereum put as collateral.
Usually a little less than 50% of the collateral is loaned out.
Let's assume that if you give 3 ethereums as collateral you will receive the equivalent of 2 ethereums in gold.
If, hypothetically, you had borrowed $100 when ethereum cost $200 and the value of ETH grew by 500%, you would still have to pay back $100 + the accumulated interest, since the loan is provided in the stablecoin DAI.
Another service of defi is
Decentralised Exchange Protocols (DEX) - the most popular DEX platforms in the DeFi market are Uniswap and Bancor. DeFi's decentralised exchanges help to quickly convert one cryptocurrency into another, regardless of liquidity. That is, it is no longer necessary to use an exchange: the buyer simply gives one coin and immediately receives another from the reserves of the decentralised exchange.
This is very good because it excludes exchanges that can either steal your funds or condition the market.
For example xrp which I mentioned earlier has lost a lot of money not only because it has been sued by the SEC but also because many exchanges have said they want to depose it, i.e. no longer allow the exchange of that cryptocurrency.
Other services are
Derivatives and forecasting services: the most popular platforms in this DeFi segment are Synthetix and Augur. The latter allow the creation of tokens based on gold, silver and other assets. Once the token is created, the platform monitors the market behaviour of the asset and models it, which enables cost forecasting. In addition, these platforms allow users to quickly create their own tokens of generally accepted standards (e.g. ERC20).
Payment services - DeFi's most popular platform in this area is known to almost everyone and is called Lightning Network, a second layer of Bitcoin. Thanks to the protocol, users can make instant Bitcoin transactions without fees.
This is very good because I see difficult adoption of Bitcoin when a transaction without the defiance repeats hours.
Can you imagine getting a coffee in one minute and waiting three hours to pay for it?
Defi solves this problem as well.
Overall, the DeFi industry is a huge leap forward for the entire cryptocurrency market, as traditional financial institutions have finally gained a competitor that could undermine their monopoly on absolute control over finances. The DeFi market is beneficial to both the regular user and the industry at large.
Benefits for users
- Financial services can be obtained by bypassing the bank and where banks are simply not there;
- almost anyone can create and list their assets on the market;
- transactions are fast and no longer require several days' processing;
- fees and interest rates are significantly lower than with banks;
- to earn money with cryptocurrencies, it is now not necessary to trade.
Benefits for cryptocurrency
- cryptocurrencies have been given a new lease of life, which increases their value;
- DeFi's services simplify compatibility between different currencies and blockchains and thus remove technical barriers;
- the possibility of obtaining a cheap loan, transferring funds from the other side of the world or creating one's own digital asset encourages people to invest in cryptocurrencies.
- Decentralised finance (DeFi) is blazing a new trail for cryptocurrencies.
Thus, cryptocurrencies are now not only a risky investment in which you invest to make a quick profit, but also a whole set of tools for financial transactions, which will expand over time to, perhaps, the size of the traditional financial sector or even surpass it.
I translated my post, with the automatic translator, I hope you understand.
![The Alchemist7 [JG]](/data/avatars/s/1/1057.jpg?1704756197){kind=avatar}
