Arhat

Nov 13

Part 2: Deep Dive on Compound, Aave & MakerDAO.

NOTE: This is NOT investment advice. This primer series should only be used as a reference to understand the working of different DeFi lending & borrowing operational models. In case you missed it: Primer Series Part 1: Intro to Lending & Borrowing MechanicsDeep Dive: CDMs & CDPsPart 2 of this primer focuses on two primary operating models used by borrowing and lending projects.CDMs vs. CDPs(Over) Collateralized:Debt Markets: where the DeFi protocol has both borrowing and lending capabilities...

Arhat

Nov 13

Part 1: Intro to Lending & Borrowing Mechanics

NOTE: This is NOT investment advice. This primer series should only be used as a reference to understand the working of different DeFi lending & borrowing operational models.DeFi: Crypto Use Case Operated to Create Actual And Valuable UtilityAfter what happened the last few months with Celsius, 3AC, and now FTX, DeFi lending & borrowing models have gained meaningful traction in a short period. This primer provides a comprehensive view of lending & borrowing within DeFi. The purpose is to unde...

Arhat

Oct 16

Understanding User Dynamics in DeFi

Most of us don't understand the user dynamics in web3, especially in DeFi. Let me show you how user dynamics affect any DeFi platform you use.In DeFi, three factors determine the motivation for a user to use that said platform:Participation cost: Do I need to hold the native token or incur a participation cost to meet potential trade counterparties (i.e., to join the community)Transaction motive: How many tokens do I need to hold and/or stake (which depends on platform liquidity) to get ...

Arhat

Nov 13

Part 2: Deep Dive on Compound, Aave & MakerDAO.

NOTE: This is NOT investment advice. This primer series should only be used as a reference to understand the working of different DeFi lending & borrowing operational models. In case you missed it: Primer Series Part 1: Intro to Lending & Borrowing MechanicsDeep Dive: CDMs & CDPsPart 2 of this primer focuses on two primary operating models used by borrowing and lending projects.CDMs vs. CDPs(Over) Collateralized:Debt Markets: where the DeFi protocol has both borrowing and lending capabilities...

Arhat

Nov 13

Part 1: Intro to Lending & Borrowing Mechanics

NOTE: This is NOT investment advice. This primer series should only be used as a reference to understand the working of different DeFi lending & borrowing operational models.DeFi: Crypto Use Case Operated to Create Actual And Valuable UtilityAfter what happened the last few months with Celsius, 3AC, and now FTX, DeFi lending & borrowing models have gained meaningful traction in a short period. This primer provides a comprehensive view of lending & borrowing within DeFi. The purpose is to unde...

Arhat

Oct 16

Understanding User Dynamics in DeFi

Most of us don't understand the user dynamics in web3, especially in DeFi. Let me show you how user dynamics affect any DeFi platform you use.In DeFi, three factors determine the motivation for a user to use that said platform:Participation cost: Do I need to hold the native token or incur a participation cost to meet potential trade counterparties (i.e., to join the community)Transaction motive: How many tokens do I need to hold and/or stake (which depends on platform liquidity) to get ...