AnkhryptoLesson #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...
AnkhryptoLesson #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...
AnkhryptoLesson #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...
DeFi, explained clearly without bells and whistles
AnkhryptoLesson #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...
AnkhryptoLesson #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...
AnkhryptoLesson #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...
DeFi, explained clearly without bells and whistles
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How do crypto projects get the money to build and pay developers?
With this flurry of new projects and ideas appearing in crypto, a new problem arose: these projects, not necessarily big or connected enough to be VC-backed, needed a way to raise funds for their operations and development, as well as to provide inital liquidity for their token on AMMs. At first, Initial Coin Offerings (ICO) were used, resembling classic fundraising events but more retail-oriented and with tokens as a reward for investors instead of shares. However, seeing as Initial Coin Offerings (ICO) were centralized and increasingly regulated, new models appeared, often operated by launchpads as decentralized (therefore considered trust-less) intermediaries.
These launchpads would allow project teams to sell part of the supply of their tokens before release, and raise funds through this sale. This is usually referred to as an Initial Decentralized Offering (IDO).
These often include one or more of the following mechanics:
Selling only to people who hold/stake/provide liquidity for the launchpad’s token
Dutch auction → Price that gets lower with each buy, same price for all at the end
Buying with launchpad’s token or liquidity → Initial Farm Offering (IFO)
Instant locking of some or all raised funds as liquidity (to “prevent rug-pulls”)
Seeding liquidity with a Liquidity Bootstrapping Pool (LBP), setting the initial price and gradually adapting to the pool
Major projects will often opt for major launchpads and even sometimes multiple launchpads to reach a bigger audience and benefit from a bigger fundraising capacity, but of course any project at this early stage can just as much be a hidden gem as it can be a “rug pull” or scam.
Polkastarter: Multi-chain launchpad originally focused on Polkadot projects
The DAO Maker: Ethereum launchpad
Ignition Launchpad: Ethereum Launchpad
PancakeSwap: AMM with an IFO section for fund raises, main fundraising platform on BSC
Avalaunch: Avalanche C-Chain launchpad
Fjord Foundry: Multi-chain LBP platform for Balancer
Version française disponible sur Muchcoin
How do crypto projects get the money to build and pay developers?
With this flurry of new projects and ideas appearing in crypto, a new problem arose: these projects, not necessarily big or connected enough to be VC-backed, needed a way to raise funds for their operations and development, as well as to provide inital liquidity for their token on AMMs. At first, Initial Coin Offerings (ICO) were used, resembling classic fundraising events but more retail-oriented and with tokens as a reward for investors instead of shares. However, seeing as Initial Coin Offerings (ICO) were centralized and increasingly regulated, new models appeared, often operated by launchpads as decentralized (therefore considered trust-less) intermediaries.
These launchpads would allow project teams to sell part of the supply of their tokens before release, and raise funds through this sale. This is usually referred to as an Initial Decentralized Offering (IDO).
These often include one or more of the following mechanics:
Selling only to people who hold/stake/provide liquidity for the launchpad’s token
Dutch auction → Price that gets lower with each buy, same price for all at the end
Buying with launchpad’s token or liquidity → Initial Farm Offering (IFO)
Instant locking of some or all raised funds as liquidity (to “prevent rug-pulls”)
Seeding liquidity with a Liquidity Bootstrapping Pool (LBP), setting the initial price and gradually adapting to the pool
Major projects will often opt for major launchpads and even sometimes multiple launchpads to reach a bigger audience and benefit from a bigger fundraising capacity, but of course any project at this early stage can just as much be a hidden gem as it can be a “rug pull” or scam.
Polkastarter: Multi-chain launchpad originally focused on Polkadot projects
The DAO Maker: Ethereum launchpad
Ignition Launchpad: Ethereum Launchpad
PancakeSwap: AMM with an IFO section for fund raises, main fundraising platform on BSC
Avalaunch: Avalanche C-Chain launchpad
Fjord Foundry: Multi-chain LBP platform for Balancer
Version française disponible sur Muchcoin
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