Ankhrypto

Apr 5

Lesson #3: Synthetics

It’s nice to have all these financial systems, but wouldn’t it be better if we could use them without going through all these weird imaginary computer currencies?What are synthetics?Synthetics are tokens the point of which is to retain the same value as another asset (dollars, euros, gold, stocks, bitcoin, etc...). The idea was originally born because of US regulations, which wouldn’t allow crypto exchanges to take in dollars or permit trading of crypto assets against the dollar without a fin...

Ankhrypto

Apr 6

Lesson #4: Yield Optimizers

In my previous lessons I mentioned the concept of “yield farming”, but what is it exactly?The practice of yield farming consists of providing liquidity (in other words depositing crypto) to different types of protocols, so as to generate passive income. The yield comes from protocol usage fees (such as interest from loans or fees on swaps) and the from the distribution of the protocol’s native token.Picking the right tokensTo do so, it is very important you pick the right tokens to farm, as i...

Ankhrypto

Feb 25

Lesson #2: Lending

The second step to decentralizing finance is, of course, on-chain lending. There are now lending systems on the blockchain, which are often built on smart contracts. However, these lending systems can’t send repo men to your house if you don’t pay up, or know your credit score and revenue, and cannot therefore evaluate your reliability as a borrower like a traditional bank would.So how does on-chain lending work?On-chain borrowing usually requires you to provide a collateral equivalent to bet...