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...
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 ...
xuanling11The only way
Technology isn't always directly translate to what we desire it to become. For example, we wish social media to become a place to keep in touch of others but it created another whole new level of distrust and misinformation that spread like a Pandemic. Be careful of your wishes! Like AI we think they can bring up a new level of the game in the creative industry and possibly to replace writers like you and me, but can they? It seems they are very powerful to execute what we want them to, ...
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...
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 ...
xuanling11The only way
Technology isn't always directly translate to what we desire it to become. For example, we wish social media to become a place to keep in touch of others but it created another whole new level of distrust and misinformation that spread like a Pandemic. Be careful of your wishes! Like AI we think they can bring up a new level of the game in the creative industry and possibly to replace writers like you and me, but can they? It seems they are very powerful to execute what we want them to, ...
Subscribe to xuanling11
Subscribe to xuanling11
Share Dialog
Share Dialog
<100 subscribers
<100 subscribers
Let’s learn Defi together! I researched online and with my understanding about Defi. I put all the resources I gathered and made a Defi Guide in Notion page here. I shared my Defi cheat sheet here with you.
TL;DR
I layout questions:
What is Defi?
Why Defi?
What are the risks of Defi?
What is Defi?
Defi or Decentralized Finance is a peer-to-peer financial system built on the Ethereum blockchain. It does not need third parties involvement like banks to charge services fees and to transaction your money slowly.
Why Defi?
In Defi, it can solve:
Centralized control created a single point of failure
Limited access: to be more inclusive to the unbanked population which estimated was 1.7 billion people in 2017
Inefficiency: multiple charges on foreign transaction fees and other service fees charged with slow transaction speed
Lack of interoperability: artificially created barriers to switching services with high-cost fees
Opacity: with no transparency on banks operations and to cause the financial crisis in 2008
What are the risks of Defi?
There are several risks associated with Defi.
Smart contract risk: prone to hacking, and lost total of approximately $2.3B of 83 incidents
Governance risk: induce governance attack through minting exceeded governance tokens from hacking
Oracle risk: if the cost of corruption is smaller than profit from corruption
Scaling risk: particularly in Proof of Stake where stakers have more assets than the entire rest of the participants
DEX risk: vulnerable to sophisticated arbitrage bots
Custodial risk: lost private and lost control of wallet due to hacking or scams
Environmental risk: wasted more energy on mining (up to debate)
Regulation risk: overlapping jurisdictions and regulations to bring Defi under banking regulations
Stay tuned for the next cheatsheet!
Let’s learn Defi together! I researched online and with my understanding about Defi. I put all the resources I gathered and made a Defi Guide in Notion page here. I shared my Defi cheat sheet here with you.
TL;DR
I layout questions:
What is Defi?
Why Defi?
What are the risks of Defi?
What is Defi?
Defi or Decentralized Finance is a peer-to-peer financial system built on the Ethereum blockchain. It does not need third parties involvement like banks to charge services fees and to transaction your money slowly.
Why Defi?
In Defi, it can solve:
Centralized control created a single point of failure
Limited access: to be more inclusive to the unbanked population which estimated was 1.7 billion people in 2017
Inefficiency: multiple charges on foreign transaction fees and other service fees charged with slow transaction speed
Lack of interoperability: artificially created barriers to switching services with high-cost fees
Opacity: with no transparency on banks operations and to cause the financial crisis in 2008
What are the risks of Defi?
There are several risks associated with Defi.
Smart contract risk: prone to hacking, and lost total of approximately $2.3B of 83 incidents
Governance risk: induce governance attack through minting exceeded governance tokens from hacking
Oracle risk: if the cost of corruption is smaller than profit from corruption
Scaling risk: particularly in Proof of Stake where stakers have more assets than the entire rest of the participants
DEX risk: vulnerable to sophisticated arbitrage bots
Custodial risk: lost private and lost control of wallet due to hacking or scams
Environmental risk: wasted more energy on mining (up to debate)
Regulation risk: overlapping jurisdictions and regulations to bring Defi under banking regulations
Stay tuned for the next cheatsheet!
No activity yet