xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
xuanling11Crypto Paycheck
Photo by Mario Gogh on UnsplashEmployees will receive their paycheck in the period as a reward for their work. However, the employer wants to pay less to employees so that they can have maximum profits. The tension between working and anti-working has increased ever since. TL;DR Nobody wants to work unless they can pay fairly. Fiat payment may not be sustainable to satisfy what workers can contribute if the employer continues paying less and gaining more from profits. Employees will want thei...
xuanling11Defi Review #4: AAVE The Defi Lending Services
AAVE is a decentralized finance lending service before decentralized finance even existed. It is an innovation lending service in crypto and one of the first kind. However, the lending service may only restrict to the crypto community and it may expand into the traditional financial field later. TL;DR AAVE is a crypto lending financial service which to provides lending services to the crypto community. They focus on security and smart contract lending may be the future of financial services. ...
xuanling11Stablecoin Crisis
Stablecoin is in the crisis mode. The most reputable stablecoin USDC is depegged. It is all triggered by the traditional bank collapse - Silicon Valley Bank or SVB collapse. Why traditional bank collapse impacts crypto stablecoin? Let's sort this out and reveal how stablecoin operates. First, why SVB collapse? The short answer is overleveraged. SVB is one of the 20 largest commercial banking in the United States. Some even estimate the bank owned half of startup assets. Bank operated in ...
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I tried to explain what DeFi is in comic strips.
TL;DR
I explained what DeFi can do and what the drawback of DeFi is.
Some Takeaway
The idea of a DeFi is contrary to traditional finance which is decentralized, transparent, pseudonymous, flexible, and open to all. It is a financial service that runs on top of the blockchain. The technology helps the financial system run without third parties and it forces the system to become more efficient or it will cost more on participants which will discourage users to anticipate. Of course, when the network is busy, it costs more to use such a service too. The benefits are DeFi will have a transparent, flexible alternative to traditional finance options. Although it may not be the best solution, it is a good way to choose when traditional finance is not only an option for one to use.
Types of DeFi
There are many options including lending, loan, trading, savings, derivatives, gambling and insurance. There will be more to come. It opens other options for users to anticipate and choose from.
Downsides of DeFi
As the crypto market is fluctuating, the cost for people to anticipate can be steep. The Ethereum blockchain is also very expensive to use when the network is busy. For many people to join with limited resources, it can be difficult for them to join.
What Are Missing
There are more details on how DeFi can be used and other aspects on how DeFi can be utilized. It is also possible that DeFi runs on the Bitcoin blockchain that is coming. There are many more possibilities to come in DeFi and makes financial services more accessible.
Scams
Of course, DeFi has lots of scams too. Bad characters are trying to lure beginners and take away their investments. Therefore, to be able to use DeFi, you may require extensive study and comprehensive knowledge about the technology behind the DeFi.
In conclusion
DeFi is one of the future. It gives an option for people to use without a high bar to screen out the opportunities in traditional finance.
I tried to explain what DeFi is in comic strips.
TL;DR
I explained what DeFi can do and what the drawback of DeFi is.
Some Takeaway
The idea of a DeFi is contrary to traditional finance which is decentralized, transparent, pseudonymous, flexible, and open to all. It is a financial service that runs on top of the blockchain. The technology helps the financial system run without third parties and it forces the system to become more efficient or it will cost more on participants which will discourage users to anticipate. Of course, when the network is busy, it costs more to use such a service too. The benefits are DeFi will have a transparent, flexible alternative to traditional finance options. Although it may not be the best solution, it is a good way to choose when traditional finance is not only an option for one to use.
Types of DeFi
There are many options including lending, loan, trading, savings, derivatives, gambling and insurance. There will be more to come. It opens other options for users to anticipate and choose from.
Downsides of DeFi
As the crypto market is fluctuating, the cost for people to anticipate can be steep. The Ethereum blockchain is also very expensive to use when the network is busy. For many people to join with limited resources, it can be difficult for them to join.
What Are Missing
There are more details on how DeFi can be used and other aspects on how DeFi can be utilized. It is also possible that DeFi runs on the Bitcoin blockchain that is coming. There are many more possibilities to come in DeFi and makes financial services more accessible.
Scams
Of course, DeFi has lots of scams too. Bad characters are trying to lure beginners and take away their investments. Therefore, to be able to use DeFi, you may require extensive study and comprehensive knowledge about the technology behind the DeFi.
In conclusion
DeFi is one of the future. It gives an option for people to use without a high bar to screen out the opportunities in traditional finance.
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