I am learning how to read and use defillama referring to an article from altcoinbuzz. I had come across a lot of concepts in the Defi world and I like to share them with you.

https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/a-walkthrough-of-the-defillama-platform/

https://defillama.com/

TVL

TVL (Total Value Locked): Counts all tokens used as CDP collateral. On a technical level, we get all collateral tokens by getting the event, get the locked amount by calling the balanceOf() function directly, unblock any Uniswap LP tokens, and then get the price of each token from CoinGecko.

TVL is a measure of the total value attracted by decentralized finance (DeFi) platforms. It represents the total value of digital assets mortgaged in various agreements. By calculating the market value of the collateral in the CDP and combining data from other DeFi protocols, the overall TVL can be derived.

In terms of technical implementation, changes in collateral can be tracked by obtaining events of related contracts. The locked amount of a specific token can be obtained by calling the balanceOf() function. For Uniswap LP tokens, it is necessary to unseal the token pairs it consists of and get the price of each token. The current price of a coin can usually be obtained using a cryptocurrency price data source such as CoinGecko.

TVL is an important metric used to measure the size and user engagement of DeFi platforms and provides information on liquidity and market potential.

CDP

n the context of cryptocurrencies, CDP stands for Collateralized Debt Position. It is a mechanism used in decentralized finance (DeFi) platforms, specifically in systems based on the Ethereum blockchain, such as MakerDAO.

CDPs allow users to generate stablecoins, such as DAI, by collateralizing their crypto assets. Users deposit a specific cryptocurrency (usually Ethereum) as collateral into a smart contract and receive a loan in the form of a stablecoin, which is pegged to the value of a fiat currency like the US dollar.

The collateral deposited in the CDP serves as a guarantee against default. If the value of the collateral falls below a certain threshold, known as the liquidation ratio, the CDP may be liquidated, and the collateral is sold to repay the loan and any outstanding fees or penalties.

CDPs are an essential component of decentralized lending and borrowing systems, enabling users to access liquidity without the need for traditional financial intermediaries. They provide a way for individuals to leverage their cryptocurrency holdings while maintaining ownership of their assets.

Pool

In the crypto world, the concept of a "pool" refers to a shared liquidity pool or a collection of funds contributed by multiple participants. Pools are commonly found in decentralized finance (DeFi) platforms and are used for various purposes, such as liquidity provision, yield farming, lending, and borrowing.

Liquidity Pool: A liquidity pool is a pool of funds provided by users that is used to facilitate trading on decentralized exchanges (DEXs). In a liquidity pool, users deposit their tokens into a smart contract, which then allows other traders to swap or trade between different tokens in the pool. Liquidity providers earn fees based on their share of the pool, and their funds can be withdrawn at any time.

Yield Farming: Yield farming involves depositing cryptocurrencies into liquidity pools to earn additional tokens as rewards. Participants contribute their funds to a specific pool, and in return, they receive tokens that represent their share of the pool's earnings. Yield farming strategies often involve staking or locking up tokens in various DeFi protocols to maximize returns.

Lending and Borrowing Pool: In lending and borrowing platforms, users can participate in pools to either lend their cryptocurrencies and earn interest or borrow assets by providing collateral. These pools match lenders and borrowers, allowing users to earn interest on their idle assets or access capital without traditional intermediaries.

Pool Tokens: When users contribute funds to a pool, they typically receive pool-specific tokens representing their share of the pool's assets. These tokens, often referred to as pool tokens or liquidity tokens, can be used to track ownership and claim a proportional share of the pool's rewards or fees.

Overall, pools in the crypto world enable users to collectively contribute and utilize their assets for various purposes, such as providing liquidity, earning rewards, or accessing decentralized financial services. They play a crucial role in facilitating the efficiency and functionality of decentralized ecosystems.

Yield Farming

Yield Farming, also known as liquidity mining, is a popular concept in the decentralized finance (DeFi) space. It refers to a practice where users can earn additional tokens or rewards by providing liquidity to specific protocols or platforms.

Here's a simplified explanation of how yield farming works:

1. Liquidity Provision: Yield farming typically involves supplying funds (such as cryptocurrencies or stablecoins) to liquidity pools on decentralized exchanges or lending platforms. These pools enable users to trade or lend their assets.

2. Liquidity Pool Rewards: In return for providing liquidity, users receive tokens as rewards. These rewards can be in the form of the platform's native tokens or other tokens associated with the protocol.

3. Yield Optimization: Yield farmers aim to maximize their returns by optimizing their allocation of funds across various liquidity pools or protocols. They may actively monitor and shift their assets based on the potential rewards offered by different pools.

4. Staking and Locking: Some yield farming protocols require users to stake or lock their earned tokens for a certain period. This locking period ensures that users remain engaged and committed to the protocol, while also preventing immediate sell-offs that could destabilize the market.

5. Risks and Considerations: Yield farming can offer attractive returns, but it also comes with certain risks. These risks include impermanent loss (potential loss due to volatile price fluctuations), smart contract vulnerabilities, platform risks, and market risks. It's crucial to research and understand the risks associated with each protocol before participating.

Yield farming has gained popularity due to the potential for high returns and the opportunity to participate in the growth of DeFi protocols. However, it requires careful evaluation of the associated risks, an understanding of the protocols being used, and a proactive approach to managing one's portfolio to achieve optimal results.

Protocol" and "Project" Difference

"Protocol" and "Project" are terms used in different contexts, and they have some distinctions and overlaps.

"Protocol" typically refers to a set of rules, standards, or conventions that guide the interaction and cooperation between participants. In the technical realm, protocols define the specifications for data transfer, communication, and interaction to ensure interoperability and connectivity between different systems. In the blockchain and cryptocurrency domain, protocols can encompass a combination of smart contracts, network protocols, consensus algorithms, and more to achieve specific functionalities and objectives. Protocols are generally a broader concept that can apply to multiple projects and applications.

On the other hand, "Project" refers more specifically to an individual and finite task or work, usually with specific goals, scope, and timelines. In the blockchain and cryptocurrency field, projects can refer to specific blockchain platforms, cryptocurrency tokens, decentralized applications (DApps), or other related technological implementations. Projects are typically more specific entities that require resources, teams, and management to achieve predetermined objectives.

While there are distinctions between protocols and projects, there can also be some overlap. For example, a project can be built on a specific protocol, using it as the underlying infrastructure and customizing and developing according to the project's needs. A project can also involve multiple protocols, especially in complex technical architectures.

In summary, protocols are rules and standards that guide interaction and communication and can be applied to multiple projects and applications. Projects are specific tasks or work with defined goals and scope that are implemented within a specific timeframe. In the blockchain and cryptocurrency domain, protocols and projects can be interconnected to achieve specific technical and business objectives.

Smart Contract Coding Language

Yes, smart contracts can be developed using multiple programming languages. Different blockchain platforms and smart contract platforms support various programming languages for writing smart contract code.

Here are some common smart contract programming languages:

1. Solidity: Solidity is the most commonly used smart contract programming language on the Ethereum platform. It is a statically typed, object-oriented language similar to JavaScript and specifically designed for the Ethereum Virtual Machine (EVM). Solidity is one of the most widely adopted smart contract languages.

2. Vyper: Vyper is another smart contract programming language for the Ethereum platform. Compared to Solidity, Vyper emphasizes security and readability, using a simplified syntax and strict semantics. The design goal of Vyper is to reduce potential vulnerabilities and security risks in smart contracts.

3. Serpent: Serpent was an early version smart contract programming language for Ethereum but has gradually been replaced by Solidity. It is a Python-based language that provides some Python-like features.

4. Michelson: Michelson is the smart contract programming language for the Tezos blockchain platform. It is a statically typed functional language designed specifically for Tezos' smart contract system. Michelson provides rich tools and features, supporting complex contract logic and verification.

In addition to the languages mentioned above, there are other programming languages supported by different blockchain platforms and smart contract platforms, such as:

• EOS: EOSIO primarily uses C++ and WebAssembly (WASM) as the main languages for smart contract development.

• NEO: NEO supports programming languages like C#, Java, and Python.

• Corda: Corda uses Kotlin, Java, and other JVM languages for smart contract development.

The choice of a smart contract programming language depends on the supported languages and development tools of the target blockchain platform. Each language has its own characteristics, tools, and ecosystems, and the selection can be based on the developer's preferences and project requirements.

Why do we need oracles?

Protocols require oracles for several reasons:

1. Access to Real-World Data: Protocols on a blockchain are often isolated from the outside world and cannot directly access real-time or real-world data, such as stock prices, weather conditions, or sports scores. Oracles bridge this gap by fetching and providing such data to the protocol, enabling it to make informed decisions or trigger actions based on external events.

2. Decentralized Decision Making: Oracles allow decentralized protocols to make decisions based on external data without relying on a single trusted party. By using multiple oracles and consensus mechanisms, protocols can achieve decentralization and mitigate the risks of data manipulation or single points of failure.

3. Price Feeds and Market Data: Many DeFi protocols rely on accurate and up-to-date price feeds for assets. Oracles provide these price feeds, allowing protocols to determine exchange rates, calculate asset values, and execute transactions at the prevailing market prices.

4. Triggering Smart Contract Execution: Smart contracts often need external information or events to execute specific actions. Oracles provide the necessary data to trigger these actions, such as settling a prediction market, initiating an insurance payout, or executing a trade based on certain conditions.

5. Security and Trustworthiness: Oracles play a critical role in ensuring the security and trustworthiness of decentralized protocols. By providing verifiable and reliable data, oracles help in preventing manipulation, tampering, or misinformation that could adversely impact the protocol's operations or user funds.

Overall, oracles enable protocols to interact with the real world, access external data, and automate actions based on reliable information. They bridge the gap between the blockchain ecosystem and the vast array of data and events outside of it, enhancing the functionality, versatility, and utility of decentralized protocols.

What does this mean “Total Value Secured All Oracles“

Total Value Secured All Oracles" refers to the total value of assets or funds secured by all the oracles collectively. In the context of decentralized finance (DeFi), oracles are used to provide external data and price feeds to smart contracts and protocols. They ensure that the protocols have accurate and reliable information to make informed decisions and execute actions.

The "Total Value Secured" represents the combined value of assets or funds that are associated with the protocols utilizing these oracles. This includes the total value of tokens, funds, or assets locked in various DeFi protocols that rely on oracles for data inputs or price calculations.

By aggregating the value secured by all the oracles, it provides a measure of the overall impact and importance of these oracles in the DeFi ecosystem. It showcases the collective value of assets and funds entrusted to oracles for data provision and reinforces the significance of oracles in enabling the functionality and success of decentralized protocols.

Monitoring the "Total Value Secured All Oracles" helps in assessing the growth and adoption of oracles, evaluating their impact on the DeFi industry, and understanding the scale of assets involved in protocols relying on these oracles. It provides insights into the value at stake and the reliance on oracles for the secure and efficient operation of decentralized finance.

DVT

今天，我们深入研究分布式验证节点技术(Distributed Validator Technology, DVT)，这是质押领域的一个令人兴奋的突破。

FDV =代币的最大供应量X代币的当前市场价格

I am learning how to read and use defillama referring to an article from altcoinbuzz. I had come across a lot of concepts in the Defi world and I like to share them with you.

https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/a-walkthrough-of-the-defillama-platform/

https://defillama.com/

TVL

TVL (Total Value Locked): Counts all tokens used as CDP collateral. On a technical level, we get all collateral tokens by getting the event, get the locked amount by calling the balanceOf() function directly, unblock any Uniswap LP tokens, and then get the price of each token from CoinGecko.

TVL is a measure of the total value attracted by decentralized finance (DeFi) platforms. It represents the total value of digital assets mortgaged in various agreements. By calculating the market value of the collateral in the CDP and combining data from other DeFi protocols, the overall TVL can be derived.

In terms of technical implementation, changes in collateral can be tracked by obtaining events of related contracts. The locked amount of a specific token can be obtained by calling the balanceOf() function. For Uniswap LP tokens, it is necessary to unseal the token pairs it consists of and get the price of each token. The current price of a coin can usually be obtained using a cryptocurrency price data source such as CoinGecko.

TVL is an important metric used to measure the size and user engagement of DeFi platforms and provides information on liquidity and market potential.

CDP

n the context of cryptocurrencies, CDP stands for Collateralized Debt Position. It is a mechanism used in decentralized finance (DeFi) platforms, specifically in systems based on the Ethereum blockchain, such as MakerDAO.

CDPs allow users to generate stablecoins, such as DAI, by collateralizing their crypto assets. Users deposit a specific cryptocurrency (usually Ethereum) as collateral into a smart contract and receive a loan in the form of a stablecoin, which is pegged to the value of a fiat currency like the US dollar.

The collateral deposited in the CDP serves as a guarantee against default. If the value of the collateral falls below a certain threshold, known as the liquidation ratio, the CDP may be liquidated, and the collateral is sold to repay the loan and any outstanding fees or penalties.

CDPs are an essential component of decentralized lending and borrowing systems, enabling users to access liquidity without the need for traditional financial intermediaries. They provide a way for individuals to leverage their cryptocurrency holdings while maintaining ownership of their assets.

Pool

In the crypto world, the concept of a "pool" refers to a shared liquidity pool or a collection of funds contributed by multiple participants. Pools are commonly found in decentralized finance (DeFi) platforms and are used for various purposes, such as liquidity provision, yield farming, lending, and borrowing.

Liquidity Pool: A liquidity pool is a pool of funds provided by users that is used to facilitate trading on decentralized exchanges (DEXs). In a liquidity pool, users deposit their tokens into a smart contract, which then allows other traders to swap or trade between different tokens in the pool. Liquidity providers earn fees based on their share of the pool, and their funds can be withdrawn at any time.

Yield Farming: Yield farming involves depositing cryptocurrencies into liquidity pools to earn additional tokens as rewards. Participants contribute their funds to a specific pool, and in return, they receive tokens that represent their share of the pool's earnings. Yield farming strategies often involve staking or locking up tokens in various DeFi protocols to maximize returns.

Lending and Borrowing Pool: In lending and borrowing platforms, users can participate in pools to either lend their cryptocurrencies and earn interest or borrow assets by providing collateral. These pools match lenders and borrowers, allowing users to earn interest on their idle assets or access capital without traditional intermediaries.

Pool Tokens: When users contribute funds to a pool, they typically receive pool-specific tokens representing their share of the pool's assets. These tokens, often referred to as pool tokens or liquidity tokens, can be used to track ownership and claim a proportional share of the pool's rewards or fees.

Overall, pools in the crypto world enable users to collectively contribute and utilize their assets for various purposes, such as providing liquidity, earning rewards, or accessing decentralized financial services. They play a crucial role in facilitating the efficiency and functionality of decentralized ecosystems.

Yield Farming

Yield Farming, also known as liquidity mining, is a popular concept in the decentralized finance (DeFi) space. It refers to a practice where users can earn additional tokens or rewards by providing liquidity to specific protocols or platforms.

Here's a simplified explanation of how yield farming works:

1. Liquidity Provision: Yield farming typically involves supplying funds (such as cryptocurrencies or stablecoins) to liquidity pools on decentralized exchanges or lending platforms. These pools enable users to trade or lend their assets.

2. Liquidity Pool Rewards: In return for providing liquidity, users receive tokens as rewards. These rewards can be in the form of the platform's native tokens or other tokens associated with the protocol.

3. Yield Optimization: Yield farmers aim to maximize their returns by optimizing their allocation of funds across various liquidity pools or protocols. They may actively monitor and shift their assets based on the potential rewards offered by different pools.

4. Staking and Locking: Some yield farming protocols require users to stake or lock their earned tokens for a certain period. This locking period ensures that users remain engaged and committed to the protocol, while also preventing immediate sell-offs that could destabilize the market.

5. Risks and Considerations: Yield farming can offer attractive returns, but it also comes with certain risks. These risks include impermanent loss (potential loss due to volatile price fluctuations), smart contract vulnerabilities, platform risks, and market risks. It's crucial to research and understand the risks associated with each protocol before participating.

Yield farming has gained popularity due to the potential for high returns and the opportunity to participate in the growth of DeFi protocols. However, it requires careful evaluation of the associated risks, an understanding of the protocols being used, and a proactive approach to managing one's portfolio to achieve optimal results.

Protocol" and "Project" Difference

"Protocol" and "Project" are terms used in different contexts, and they have some distinctions and overlaps.

"Protocol" typically refers to a set of rules, standards, or conventions that guide the interaction and cooperation between participants. In the technical realm, protocols define the specifications for data transfer, communication, and interaction to ensure interoperability and connectivity between different systems. In the blockchain and cryptocurrency domain, protocols can encompass a combination of smart contracts, network protocols, consensus algorithms, and more to achieve specific functionalities and objectives. Protocols are generally a broader concept that can apply to multiple projects and applications.

On the other hand, "Project" refers more specifically to an individual and finite task or work, usually with specific goals, scope, and timelines. In the blockchain and cryptocurrency field, projects can refer to specific blockchain platforms, cryptocurrency tokens, decentralized applications (DApps), or other related technological implementations. Projects are typically more specific entities that require resources, teams, and management to achieve predetermined objectives.

While there are distinctions between protocols and projects, there can also be some overlap. For example, a project can be built on a specific protocol, using it as the underlying infrastructure and customizing and developing according to the project's needs. A project can also involve multiple protocols, especially in complex technical architectures.

In summary, protocols are rules and standards that guide interaction and communication and can be applied to multiple projects and applications. Projects are specific tasks or work with defined goals and scope that are implemented within a specific timeframe. In the blockchain and cryptocurrency domain, protocols and projects can be interconnected to achieve specific technical and business objectives.

Smart Contract Coding Language

Yes, smart contracts can be developed using multiple programming languages. Different blockchain platforms and smart contract platforms support various programming languages for writing smart contract code.

Here are some common smart contract programming languages:

1. Solidity: Solidity is the most commonly used smart contract programming language on the Ethereum platform. It is a statically typed, object-oriented language similar to JavaScript and specifically designed for the Ethereum Virtual Machine (EVM). Solidity is one of the most widely adopted smart contract languages.

2. Vyper: Vyper is another smart contract programming language for the Ethereum platform. Compared to Solidity, Vyper emphasizes security and readability, using a simplified syntax and strict semantics. The design goal of Vyper is to reduce potential vulnerabilities and security risks in smart contracts.

3. Serpent: Serpent was an early version smart contract programming language for Ethereum but has gradually been replaced by Solidity. It is a Python-based language that provides some Python-like features.

4. Michelson: Michelson is the smart contract programming language for the Tezos blockchain platform. It is a statically typed functional language designed specifically for Tezos' smart contract system. Michelson provides rich tools and features, supporting complex contract logic and verification.

In addition to the languages mentioned above, there are other programming languages supported by different blockchain platforms and smart contract platforms, such as:

• EOS: EOSIO primarily uses C++ and WebAssembly (WASM) as the main languages for smart contract development.

• NEO: NEO supports programming languages like C#, Java, and Python.

• Corda: Corda uses Kotlin, Java, and other JVM languages for smart contract development.

The choice of a smart contract programming language depends on the supported languages and development tools of the target blockchain platform. Each language has its own characteristics, tools, and ecosystems, and the selection can be based on the developer's preferences and project requirements.

Why do we need oracles?

Protocols require oracles for several reasons:

1. Access to Real-World Data: Protocols on a blockchain are often isolated from the outside world and cannot directly access real-time or real-world data, such as stock prices, weather conditions, or sports scores. Oracles bridge this gap by fetching and providing such data to the protocol, enabling it to make informed decisions or trigger actions based on external events.

2. Decentralized Decision Making: Oracles allow decentralized protocols to make decisions based on external data without relying on a single trusted party. By using multiple oracles and consensus mechanisms, protocols can achieve decentralization and mitigate the risks of data manipulation or single points of failure.

3. Price Feeds and Market Data: Many DeFi protocols rely on accurate and up-to-date price feeds for assets. Oracles provide these price feeds, allowing protocols to determine exchange rates, calculate asset values, and execute transactions at the prevailing market prices.

4. Triggering Smart Contract Execution: Smart contracts often need external information or events to execute specific actions. Oracles provide the necessary data to trigger these actions, such as settling a prediction market, initiating an insurance payout, or executing a trade based on certain conditions.

5. Security and Trustworthiness: Oracles play a critical role in ensuring the security and trustworthiness of decentralized protocols. By providing verifiable and reliable data, oracles help in preventing manipulation, tampering, or misinformation that could adversely impact the protocol's operations or user funds.

Overall, oracles enable protocols to interact with the real world, access external data, and automate actions based on reliable information. They bridge the gap between the blockchain ecosystem and the vast array of data and events outside of it, enhancing the functionality, versatility, and utility of decentralized protocols.

What does this mean “Total Value Secured All Oracles“

Total Value Secured All Oracles" refers to the total value of assets or funds secured by all the oracles collectively. In the context of decentralized finance (DeFi), oracles are used to provide external data and price feeds to smart contracts and protocols. They ensure that the protocols have accurate and reliable information to make informed decisions and execute actions.

The "Total Value Secured" represents the combined value of assets or funds that are associated with the protocols utilizing these oracles. This includes the total value of tokens, funds, or assets locked in various DeFi protocols that rely on oracles for data inputs or price calculations.

By aggregating the value secured by all the oracles, it provides a measure of the overall impact and importance of these oracles in the DeFi ecosystem. It showcases the collective value of assets and funds entrusted to oracles for data provision and reinforces the significance of oracles in enabling the functionality and success of decentralized protocols.

Monitoring the "Total Value Secured All Oracles" helps in assessing the growth and adoption of oracles, evaluating their impact on the DeFi industry, and understanding the scale of assets involved in protocols relying on these oracles. It provides insights into the value at stake and the reliance on oracles for the secure and efficient operation of decentralized finance.

DVT

今天，我们深入研究分布式验证节点技术(Distributed Validator Technology, DVT)，这是质押领域的一个令人兴奋的突破。

FDV =代币的最大供应量X代币的当前市场价格