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A Detailed Summary of Every Single Reason Why I am Bullish on Ethereum

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself on the DeFi Pulse website.

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA player Spencer Dinwiddie tokenized his own NBA contract.)

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (Jitsi for the zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

submitted by Tricky_Troll to CryptoCurrency [link] [comments]

A Detailed Summary of Every Single Reason Why I am Bullish on ETH.

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself at: https://defipulse.com

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA Star Spencer Dinwiddie Tokenized His Own NBA Contract.

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (https://meet.jit.si/ for zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

submitted by Tricky_Troll to ethtrader [link] [comments]

A detailed summary of every reason why I am bullish on ETH.

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself at: https://defipulse.com

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA Star Spencer Dinwiddie Tokenized His Own NBA Contract.

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (https://meet.jit.si/ for zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

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Lego Mindstorms Bitcoin wallet that is a Lucky Cat

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Bitcoin Wallet made from Lego (x-post /r/bitcoin)

Bitcoin Wallet made from Lego (x-post /bitcoin) submitted by amerrigan to BitcoinWallet [link] [comments]

All you need to know about Yield Farming - The rocket fuel for Defi

All you need to know about Yield Farming - The rocket fuel for Defi
Source
It’s effectively July 2017 in the world of decentralized finance (DeFi), and as in the heady days of the initial coin offering (ICO) boom, the numbers are only trending up.
According to DeFi Pulse, there is $1.9 billion in crypto assets locked in DeFi right now. According to the CoinDesk ICO Tracker, the ICO market started chugging past $1 billion in July 2017, just a few months before token sales started getting talked about on TV.
Debate juxtaposing these numbers if you like, but what no one can question is this: Crypto users are putting more and more value to work in DeFi applications, driven largely by the introduction of a whole new yield-generating pasture, Compound’s COMP governance token.
Governance tokens enable users to vote on the future of decentralized protocols, sure, but they also present fresh ways for DeFi founders to entice assets onto their platforms.
That said, it’s the crypto liquidity providers who are the stars of the present moment. They even have a meme-worthy name: yield farmers.

https://preview.redd.it/lxsvazp1g9l51.png?width=775&format=png&auto=webp&s=a36173ab679c701a5d5e0aac806c00fcc84d78c1

Where it started

Ethereum-based credit market Compound started distributing its governance token, COMP, to the protocol’s users this past June 15. Demand for the token (heightened by the way its automatic distribution was structured) kicked off the present craze and moved Compound into the leading position in DeFi.
The hot new term in crypto is “yield farming,” a shorthand for clever strategies where putting crypto temporarily at the disposal of some startup’s application earns its owner more cryptocurrency.
Another term floating about is “liquidity mining.”
The buzz around these concepts has evolved into a low rumble as more and more people get interested.
The casual crypto observer who only pops into the market when activity heats up might be starting to get faint vibes that something is happening right now. Take our word for it: Yield farming is the source of those vibes.
But if all these terms (“DeFi,” “liquidity mining,” “yield farming”) are so much Greek to you, fear not. We’re here to catch you up. We’ll get into all of them.
We’re going to go from very basic to more advanced, so feel free to skip ahead.

What are tokens?

Most CoinDesk readers probably know this, but just in case: Tokens are like the money video-game players earn while fighting monsters, money they can use to buy gear or weapons in the universe of their favorite game.
But with blockchains, tokens aren’t limited to only one massively multiplayer online money game. They can be earned in one and used in lots of others. They usually represent either ownership in something (like a piece of a Uniswap liquidity pool, which we will get into later) or access to some service. For example, in the Brave browser, ads can only be bought using basic attention token (BAT).
If tokens are worth money, then you can bank with them or at least do things that look very much like banking. Thus: decentralized finance.
Tokens proved to be the big use case for Ethereum, the second-biggest blockchain in the world. The term of art here is “ERC-20 tokens,” which refers to a software standard that allows token creators to write rules for them. Tokens can be used a few ways. Often, they are used as a form of money within a set of applications. So the idea for Kin was to create a token that web users could spend with each other at such tiny amounts that it would almost feel like they weren’t spending anything; that is, money for the internet.
Governance tokens are different. They are not like a token at a video-game arcade, as so many tokens were described in the past. They work more like certificates to serve in an ever-changing legislature in that they give holders the right to vote on changes to a protocol.
So on the platform that proved DeFi could fly, MakerDAO, holders of its governance token, MKR, vote almost every week on small changes to parameters that govern how much it costs to borrow and how much savers earn, and so on.
Read more: Why DeFi’s Billion-Dollar Milestone Matters
One thing all crypto tokens have in common, though, is they are tradable and they have a price. So, if tokens are worth money, then you can bank with them or at least do things that look very much like banking. Thus: decentralized finance.

What is DeFi?

Fair question. For folks who tuned out for a bit in 2018, we used to call this “open finance.” That construction seems to have faded, though, and “DeFi” is the new lingo.
In case that doesn’t jog your memory, DeFi is all the things that let you play with money, and the only identification you need is a crypto wallet.
On the normal web, you can’t buy a blender without giving the site owner enough data to learn your whole life history. In DeFi, you can borrow money without anyone even asking for your name.
I can explain this but nothing really brings it home like trying one of these applications. If you have an Ethereum wallet that has even $20 worth of crypto in it, go do something on one of these products. Pop over to Uniswap and buy yourself some FUN (a token for gambling apps) or WBTC (wrapped bitcoin). Go to MakerDAO and create $5 worth of DAI (a stablecoin that tends to be worth $1) out of the digital ether. Go to Compound and borrow $10 in USDC.
(Notice the very small amounts I’m suggesting. The old crypto saying “don’t put in more than you can afford to lose” goes double for DeFi. This stuff is uber-complex and a lot can go wrong. These may be “savings” products but they’re not for your retirement savings.)
Immature and experimental though it may be, the technology’s implications are staggering. On the normal web, you can’t buy a blender without giving the site owner enough data to learn your whole life history. In DeFi, you can borrow money without anyone even asking for your name.
DeFi applications don’t worry about trusting you because they have the collateral you put up to back your debt (on Compound, for instance, a $10 debt will require around $20 in collateral).
Read more: There Are More DAI on Compound Now Than There Are DAI in the World
If you do take this advice and try something, note that you can swap all these things back as soon as you’ve taken them out. Open the loan and close it 10 minutes later. It’s fine. Fair warning: It might cost you a tiny bit in fees, and the cost of using Ethereum itself right now is much higher than usual, in part due to this fresh new activity. But it’s nothing that should ruin a crypto user.
So what’s the point of borrowing for people who already have the money? Most people do it for some kind of trade. The most obvious example, to short a token (the act of profiting if its price falls). It’s also good for someone who wants to hold onto a token but still play the market.

Doesn’t running a bank take a lot of money up front?

It does, and in DeFi that money is largely provided by strangers on the internet. That’s why the startups behind these decentralized banking applications come up with clever ways to attract HODLers with idle assets.
Liquidity is the chief concern of all these different products. That is: How much money do they have locked in their smart contracts?
“In some types of products, the product experience gets much better if you have liquidity. Instead of borrowing from VCs or debt investors, you borrow from your users,” said Electric Capital managing partner Avichal Garg.
Let’s take Uniswap as an example. Uniswap is an “automated market maker,” or AMM (another DeFi term of art). This means Uniswap is a robot on the internet that is always willing to buy and it’s also always willing to sell any cryptocurrency for which it has a market.
On Uniswap, there is at least one market pair for almost any token on Ethereum. Behind the scenes, this means Uniswap can make it look like it is making a direct trade for any two tokens, which makes it easy for users, but it’s all built around pools of two tokens. And all these market pairs work better with bigger pools.

Why do I keep hearing about ‘pools’?

To illustrate why more money helps, let’s break down how Uniswap works.
Let’s say there was a market for USDC and DAI. These are two tokens (both stablecoins but with different mechanisms for retaining their value) that are meant to be worth $1 each all the time, and that generally tends to be true for both.
The price Uniswap shows for each token in any pooled market pair is based on the balance of each in the pool. So, simplifying this a lot for illustration’s sake, if someone were to set up a USDC/DAI pool, they should deposit equal amounts of both. In a pool with only 2 USDC and 2 DAI it would offer a price of 1 USDC for 1 DAI. But then imagine that someone put in 1 DAI and took out 1 USDC. Then the pool would have 1 USDC and 3 DAI. The pool would be very out of whack. A savvy investor could make an easy $0.50 profit by putting in 1 USDC and receiving 1.5 DAI. That’s a 50% arbitrage profit, and that’s the problem with limited liquidity.
(Incidentally, this is why Uniswap’s prices tend to be accurate, because traders watch it for small discrepancies from the wider market and trade them away for arbitrage profits very quickly.)
Read more: Uniswap V2 Launches With More Token-Swap Pairs, Oracle Service, Flash Loans
However, if there were 500,000 USDC and 500,000 DAI in the pool, a trade of 1 DAI for 1 USDC would have a negligible impact on the relative price. That’s why liquidity is helpful.
You can stick your assets on Compound and earn a little yield. But that’s not very creative. Users who look for angles to maximize that yield: those are the yield farmers.
Similar effects hold across DeFi, so markets want more liquidity. Uniswap solves this by charging a tiny fee on every trade. It does this by shaving off a little bit from each trade and leaving that in the pool (so one DAI would actually trade for 0.997 USDC, after the fee, growing the overall pool by 0.003 USDC). This benefits liquidity providers because when someone puts liquidity in the pool they own a share of the pool. If there has been lots of trading in that pool, it has earned a lot of fees, and the value of each share will grow.
And this brings us back to tokens.
Liquidity added to Uniswap is represented by a token, not an account. So there’s no ledger saying, “Bob owns 0.000000678% of the DAI/USDC pool.” Bob just has a token in his wallet. And Bob doesn’t have to keep that token. He could sell it. Or use it in another product. We’ll circle back to this, but it helps to explain why people like to talk about DeFi products as “money Legos.”

So how much money do people make by putting money into these products?

It can be a lot more lucrative than putting money in a traditional bank, and that’s before startups started handing out governance tokens.
Compound is the current darling of this space, so let’s use it as an illustration. As of this writing, a person can put USDC into Compound and earn 2.72% on it. They can put tether (USDT) into it and earn 2.11%. Most U.S. bank accounts earn less than 0.1% these days, which is close enough to nothing.
However, there are some caveats. First, there’s a reason the interest rates are so much juicier: DeFi is a far riskier place to park your money. There’s no Federal Deposit Insurance Corporation (FDIC) protecting these funds. If there were a run on Compound, users could find themselves unable to withdraw their funds when they wanted.
Plus, the interest is quite variable. You don’t know what you’ll earn over the course of a year. USDC’s rate is high right now. It was low last week. Usually, it hovers somewhere in the 1% range.
Similarly, a user might get tempted by assets with more lucrative yields like USDT, which typically has a much higher interest rate than USDC. (Monday morning, the reverse was true, for unclear reasons; this is crypto, remember.) The trade-off here is USDT’s transparency about the real-world dollars it’s supposed to hold in a real-world bank is not nearly up to par with USDC’s. A difference in interest rates is often the market’s way of telling you the one instrument is viewed as dicier than another.
Users making big bets on these products turn to companies Opyn and Nexus Mutual to insure their positions because there’s no government protections in this nascent space – more on the ample risks later on.
So users can stick their assets in Compound or Uniswap and earn a little yield. But that’s not very creative. Users who look for angles to maximize that yield: those are the yield farmers.

OK, I already knew all of that. What is yield farming?

Broadly, yield farming is any effort to put crypto assets to work and generate the most returns possible on those assets.
At the simplest level, a yield farmer might move assets around within Compound, constantly chasing whichever pool is offering the best APY from week to week. This might mean moving into riskier pools from time to time, but a yield farmer can handle risk.
“Farming opens up new price arbs [arbitrage] that can spill over to other protocols whose tokens are in the pool,” said Maya Zehavi, a blockchain consultant.
Because these positions are tokenized, though, they can go further.
This was a brand-new kind of yield on a deposit. In fact, it was a way to earn a yield on a loan. Who has ever heard of a borrower earning a return on a debt from their lender?
In a simple example, a yield farmer might put 100,000 USDT into Compound. They will get a token back for that stake, called cUSDT. Let’s say they get 100,000 cUSDT back (the formula on Compound is crazy so it’s not 1:1 like that but it doesn’t matter for our purposes here).
They can then take that cUSDT and put it into a liquidity pool that takes cUSDT on Balancer, an AMM that allows users to set up self-rebalancing crypto index funds. In normal times, this could earn a small amount more in transaction fees. This is the basic idea of yield farming. The user looks for edge cases in the system to eke out as much yield as they can across as many products as it will work on.
Right now, however, things are not normal, and they probably won’t be for a while.

Why is yield farming so hot right now?

Because of liquidity mining. Liquidity mining supercharges yield farming.
Liquidity mining is when a yield farmer gets a new token as well as the usual return (that’s the “mining” part) in exchange for the farmer’s liquidity.
“The idea is that stimulating usage of the platform increases the value of the token, thereby creating a positive usage loop to attract users,” said Richard Ma of smart-contract auditor Quantstamp.
The yield farming examples above are only farming yield off the normal operations of different platforms. Supply liquidity to Compound or Uniswap and get a little cut of the business that runs over the protocols – very vanilla.
But Compound announced earlier this year it wanted to truly decentralize the product and it wanted to give a good amount of ownership to the people who made it popular by using it. That ownership would take the form of the COMP token.
Lest this sound too altruistic, keep in mind that the people who created it (the team and the investors) owned more than half of the equity. By giving away a healthy proportion to users, that was very likely to make it a much more popular place for lending. In turn, that would make everyone’s stake worth much more.
So, Compound announced this four-year period where the protocol would give out COMP tokens to users, a fixed amount every day until it was gone. These COMP tokens control the protocol, just as shareholders ultimately control publicly traded companies.
Every day, the Compound protocol looks at everyone who had lent money to the application and who had borrowed from it and gives them COMP proportional to their share of the day’s total business.
The results were very surprising, even to Compound’s biggest promoters.
COMP’s value will likely go down, and that’s why some investors are rushing to earn as much of it as they can right now.
This was a brand-new kind of yield on a deposit into Compound. In fact, it was a way to earn a yield on a loan, as well, which is very weird: Who has ever heard of a borrower earning a return on a debt from their lender?
COMP’s value has consistently been well over $200 since it started distributing on June 15. We did the math elsewhere but long story short: investors with fairly deep pockets can make a strong gain maximizing their daily returns in COMP. It is, in a way, free money.
It’s possible to lend to Compound, borrow from it, deposit what you borrowed and so on. This can be done multiple times and DeFi startup Instadapp even built a tool to make it as capital-efficient as possible.
“Yield farmers are extremely creative. They find ways to ‘stack’ yields and even earn multiple governance tokens at once,” said Spencer Noon of DTC Capital.
COMP’s value spike is a temporary situation. The COMP distribution will only last four years and then there won’t be any more. Further, most people agree that the high price now is driven by the low float (that is, how much COMP is actually free to trade on the market – it will never be this low again). So the value will probably gradually go down, and that’s why savvy investors are trying to earn as much as they can now.
Appealing to the speculative instincts of diehard crypto traders has proven to be a great way to increase liquidity on Compound. This fattens some pockets but also improves the user experience for all kinds of Compound users, including those who would use it whether they were going to earn COMP or not.
As usual in crypto, when entrepreneurs see something successful, they imitate it. Balancer was the next protocol to start distributing a governance token, BAL, to liquidity providers. Flash loan provider bZx has announced a plan. Ren, Curve and Synthetix also teamed up to promote a liquidity pool on Curve.
It is a fair bet many of the more well-known DeFi projects will announce some kind of coin that can be mined by providing liquidity.
The case to watch here is Uniswap versus Balancer. Balancer can do the same thing Uniswap does, but most users who want to do a quick token trade through their wallet use Uniswap. It will be interesting to see if Balancer’s BAL token convinces Uniswap’s liquidity providers to defect.
So far, though, more liquidity has gone into Uniswap since the BAL announcement, according to its data site. That said, even more has gone into Balancer.

Did liquidity mining start with COMP?

No, but it was the most-used protocol with the most carefully designed liquidity mining scheme.
This point is debated but the origins of liquidity mining probably date back to Fcoin, a Chinese exchange that created a token in 2018 that rewarded people for making trades. You won’t believe what happened next! Just kidding, you will: People just started running bots to do pointless trades with themselves to earn the token.
Similarly, EOS is a blockchain where transactions are basically free, but since nothing is really free the absence of friction was an invitation for spam. Some malicious hacker who didn’t like EOS created a token called EIDOS on the network in late 2019. It rewarded people for tons of pointless transactions and somehow got an exchange listing.
These initiatives illustrated how quickly crypto users respond to incentives.
Read more: Compound Changes COMP Distribution Rules Following ‘Yield Farming’ Frenzy
Fcoin aside, liquidity mining as we now know it first showed up on Ethereum when the marketplace for synthetic tokens, Synthetix, announced in July 2019 an award in its SNX token for users who helped add liquidity to the sETH/ETH pool on Uniswap. By October, that was one of Uniswap’s biggest pools.
When Compound Labs, the company that launched the Compound protocol, decided to create COMP, the governance token, the firm took months designing just what kind of behavior it wanted and how to incentivize it. Even still, Compound Labs was surprised by the response. It led to unintended consequences such as crowding into a previously unpopular market (lending and borrowing BAT) in order to mine as much COMP as possible.
Just last week, 115 different COMP wallet addresses – senators in Compound’s ever-changing legislature – voted to change the distribution mechanism in hopes of spreading liquidity out across the markets again.

Is there DeFi for bitcoin?

Yes, on Ethereum.
Nothing has beaten bitcoin over time for returns, but there’s one thing bitcoin can’t do on its own: create more bitcoin.
A smart trader can get in and out of bitcoin and dollars in a way that will earn them more bitcoin, but this is tedious and risky. It takes a certain kind of person.
DeFi, however, offers ways to grow one’s bitcoin holdings – though somewhat indirectly.
A long HODLer is happy to gain fresh BTC off their counterparty’s short-term win. That’s the game.
For example, a user can create a simulated bitcoin on Ethereum using BitGo’s WBTC system. They put BTC in and get the same amount back out in freshly minted WBTC. WBTC can be traded back for BTC at any time, so it tends to be worth the same as BTC.
Then the user can take that WBTC, stake it on Compound and earn a few percent each year in yield on their BTC. Odds are, the people who borrow that WBTC are probably doing it to short BTC (that is, they will sell it immediately, buy it back when the price goes down, close the loan and keep the difference).
A long HODLer is happy to gain fresh BTC off their counterparty’s short-term win. That’s the game.

How risky is it?

Enough.
“DeFi, with the combination of an assortment of digital funds, automation of key processes, and more complex incentive structures that work across protocols – each with their own rapidly changing tech and governance practices – make for new types of security risks,” said Liz Steininger of Least Authority, a crypto security auditor. “Yet, despite these risks, the high yields are undeniably attractive to draw more users.”
We’ve seen big failures in DeFi products. MakerDAO had one so bad this year it’s called “Black Thursday.” There was also the exploit against flash loan provider bZx. These things do break and when they do money gets taken.
As this sector gets more robust, we could see token holders greenlighting more ways for investors to profit from DeFi niches.
Right now, the deal is too good for certain funds to resist, so they are moving a lot of money into these protocols to liquidity mine all the new governance tokens they can. But the funds – entities that pool the resources of typically well-to-do crypto investors – are also hedging. Nexus Mutual, a DeFi insurance provider of sorts, told CoinDesk it has maxed out its available coverage on these liquidity applications. Opyn, the trustless derivatives maker, created a way to short COMP, just in case this game comes to naught.
And weird things have arisen. For example, there’s currently more DAI on Compound than have been minted in the world. This makes sense once unpacked but it still feels dicey to everyone.
That said, distributing governance tokens might make things a lot less risky for startups, at least with regard to the money cops.
“Protocols distributing their tokens to the public, meaning that there’s a new secondary listing for SAFT tokens, [gives] plausible deniability from any security accusation,” Zehavi wrote. (The Simple Agreement for Future Tokens was a legal structure favored by many token issuers during the ICO craze.)
Whether a cryptocurrency is adequately decentralized has been a key feature of ICO settlements with the U.S. Securities and Exchange Commission (SEC).

What’s next for yield farming? (A prediction)

COMP turned out to be a bit of a surprise to the DeFi world, in technical ways and others. It has inspired a wave of new thinking.
“Other projects are working on similar things,” said Nexus Mutual founder Hugh Karp. In fact, informed sources tell CoinDesk brand-new projects will launch with these models.
We might soon see more prosaic yield farming applications. For example, forms of profit-sharing that reward certain kinds of behavior.
Imagine if COMP holders decided, for example, that the protocol needed more people to put money in and leave it there longer. The community could create a proposal that shaved off a little of each token’s yield and paid that portion out only to the tokens that were older than six months. It probably wouldn’t be much, but an investor with the right time horizon and risk profile might take it into consideration before making a withdrawal.
(There are precedents for this in traditional finance: A 10-year Treasury bond normally yields more than a one-month T-bill even though they’re both backed by the full faith and credit of Uncle Sam, a 12-month certificate of deposit pays higher interest than a checking account at the same bank, and so on.)
As this sector gets more robust, its architects will come up with ever more robust ways to optimize liquidity incentives in increasingly refined ways. We could see token holders greenlighting more ways for investors to profit from DeFi niches.
Questions abound for this nascent industry: What will MakerDAO do to restore its spot as the king of DeFi? Will Uniswap join the liquidity mining trend? Will anyone stick all these governance tokens into a decentralized autonomous organization (DAO)? Or would that be a yield farmers co-op?
Whatever happens, crypto’s yield farmers will keep moving fast. Some fresh fields may open and some may soon bear much less luscious fruit.
But that’s the nice thing about farming in DeFi: It is very easy to switch fields.
submitted by pascalbernoulli to Yield_Farming [link] [comments]

It is a good time to reflect on the departure direction of DeFi

It is a good time to reflect on the departure direction of DeFi

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In which direction should DeFi develop in the next step?
The market is changing dramatically. The past few days have been like riding a roller coaster. But after several rounds of fluctuations, the DeFi segment in the stock market is still unabated. However, the hidden worries lurking under the surface are always existing.
Almost all resources in the DeFi ecology are on Ethereum. However, there are problems with the DeFi network built by Ethereum, such as the single system performance brought by the foreseeable homogeneous sharding in the future, high gas fee, low security, and low scalability, etc. These vulnerabilities make the many applications hard to use on the DeFi network, including high-frequency trading and the transaction matching modes (We use the Uniswap asset pool model today.)
The problem with ETH1.0 is that the performance is limited, and all the transactions are mixed without any organization. Although there is composability for the DeFi applications, the network needs to operate both DeFi applications and other transactions or DApps.

Network congestion and skyrocketing gas fees

As we all know, Ethereum relies on the consumption of GAS to run its economic operation. Every step of the chain requires the consumption of GAS. Bitcoin plummeted by almost 50% to $3,800, and ETH fell as much as 65.2% just on March 12 and 13, 2020. The plummet caused a run, the Ethereum miner fees that carried a large number of DeFi and DApps skyrocketed, and the network was also congested. The Ethereum GAS fee increased to 10 times of the usual, and the GAS fee was once as high as 1 ETH to successfully package transactions. After that, because the lending operations of DeFi applications require frequent interaction with contracts, the gas fees on Ethereum have also remained high.

Problems inherited from ERC20 tokens are affecting the DeFi products on Ethereum.

If you use Ethereum’s native token ETH, the operation is simple. As long as the ETH is transferred to the contract of the target DeFi application, the contract operation will be the same as when we use cash to invest in stocks or wealth management products. No other operations are required.
However, the operation of tokens minted using ERC20 contracts is very different from native ETH, regardless of whether the tokens minted by these ERC20 contracts are well-known. Before trading, the ERC20 contract first authorizes the DeFi platform’s contract to transfer a specified number of ERC20 tokens on the account, such as USDT, USDC, or WBTC. After approval, the DeFi contract is called to transfer money. The intuitive understanding is to avoid frequent password input in small transactions, we authorized Paypal to open a password-free payment, so that the payment can be directly deducted during consumption. It sounds convenient, but is it that good?
There is a crucial problem here: if the DeFi contract is malicious during the approval process, this DeFi contract has the right to transfer all the ERC20 tokens on our account to any account. It is similar to that we authorize Paypal to perform a password-free operation of the balance, but if a hacker attacked Paypal successfully, this hacker could transfer all our money to his account. Similar things have happened before.
There is a famous project called Bancor, which used to rely on the type of authorization contract for ERC20 processing. However, there was a bug in the contract that allowed the contract to transfer the tokens in the user’s wallet to any hacker designated address after the user was authorized, which caused a loss of almost 100,000 US dollars.
The loss was not so significant because it occurred in the early stage of DeFi development. If it happens today that the DeFi asset scale on Ethereum already reached hundreds of millions, it would cause severe damage to the entire Ethereum ecosystem and the development of DeFi.

Cold shard and hot shard

DeFi needs composability, convenience, and a stronger capability of anti-run. If the throughput is insufficient, sharding technology can be introduced, which is what ETH2.0 does. However, due to the combinability of DeFi, these applications tend to aggregate into one shard, which is prone to clustering effects. This will result in different shards gathering different contents. This is called hot shards and cold shards, which are analogous to different types of cities such as metropolises as New York and Tokyo, and other places like Kyoto and Alaska. Some places have become Wall Street, while other places may become scenic or living areas. Because of the aggregation of different functions, different shards will have different features.
It is quite unwise to develop algorithms to forcibly redistribute load balancing on shards. This is equivalent to using a simple system to determine the development of a complex system, much like a planned economy. However, we can design different features in advance to make them more capable to display their own features, just as humans transformed and utilized the natural resources based on their understanding of nature, thereby improving efficiency. That means, to set up some shards with different performance and even different consensus algorithms (e.g., the features of PoW and PoS are different).
Maybe there will be a major financial shard, like London, or two other special shards with their own features, like New York City and Chicago. Financial shards require high throughput and high cost. These are called hot shards, which carry large-value transactions, otherwise, the gas fee may be too high. Most people will live in the countryside, which means cold shards here. When you need the hot shard features, you don’t need to live in Manhattan, nor do you need to travel to Manhattan occasionally. Most of the time, you will live well on another shard. When one really needs to run on a DeFi shard, it only takes a few minutes of cross-shard transactions.
But the problem generated from this is that since each shard has its own features, it may cause the shards to be independent. What we need is that shards can be harmonious but keep their differences, that is, cross-sharding DeFi needs to be achieved. Today’s multi-chain heterogeneous technology can contribute to solving this problem. Only by solving these problems can more DeFi applications be stimulated.
In our opinion, a mature DeFi platform must have the following features:
Higher Efficiency: Have faster concurrent processing capabilities, i.e., high TPS.
Lower Gas Fee: Lower gas fee can stimulate the enthusiasm of DeFi users and even catalyze the development of high-frequency trading.
More Secure: There are fewer interactive processes in the contract, at least structurally to avoid the problems ERC20 caused due to the different permissions, which leads to complicated interactions and lengthens the operation chain and increases loopholes.
Easier to Use: Various multi-native tokens can be used to pay gas fees during transactions, and thus no need to use designated tokens to pay gas fees.
Easier Combination: It can support the combination of a wide range of contracts, including the combination of different consensus in the same chain, ledger structure, and other elements, and even cross chains, making DeFi a real “Lego”.

Multi-chain heterogeneous + DeFi, one unhindered currency is helping to reach the perfect

Multi-chain heterogeneity has formed “cities” and “villages”, and DeFi has become the financial center among the cities. Since we use cities for comparison, how can we avoid each city’s independent governance and link up the chains of urban interests to form a greater network? The answer is the same as in real life, that is, the so-called currency everywhere.
Ethereum also provides currency, but this currency is not only inefficient, but also indirectly causes security risks. If you want long-term development, such a design is unreasonable.
In the QuarkChain mainnet, multi-native tokens are our primary function for building the next generation of DeFi. Multi-native tokens have basically the same status as QKC in the QuarkChain system. They can call contracts, perform cross-chain operations, and pay gas fees under certain conditions. Native tokens can achieve all of QKC’s functions, including cross-chain transactions, except participating in QKC governance. Most of the non-native asset inconvenience problems faced by Defi can be solved. In the future contracts, the functions of native tokens will be exactly the same as QKC, with the last barrier to the application of multi-native tokens being removed. This also avoids the problem of reducing the security of the entire DeFi system due to the ERC20 token’s authority issue. Next, we will launch our DEX, and then users will have the true feeling of the unimpeded DeFi platform on QuarkChain. Thus, the last piece of the puzzle of multi-chain heterogeneous + DeFi + multi-native tokens has been fulfilled, which brings cost efficiency, user easiness, and security to a new level.
Ethereum’s performance and contract security restrictions have affected development. After our repeated introduction and numerous testing, the multi-native token function is ready to be officially delivered to the community. Soon, community members can mint their own tokens and use them to transfer funds (including cross-sharding), pay gas fees, directly call smart contracts, etc. In conjunction with the DEX that we will launch in the next step, users can actually experience the convenience and innovation brought by multi-native tokens to the blockchain system.
To verify the validity of this theory, we recently launched the Game of DeFi Campaign. In the last stage of the campaign, we launched a simple DEX application and a game: QSwap — the multi-native token version of Uniswap, and Element Miner — a fun mining trading game. This is the new value that DEX and game-based mining will be able to bring to DApp and DeFi applications based on the verification of multi-native tokens with the game format. Because the gas fee is low enough, every step of the operation will be on the chain to ensure security. Meantime, instead of ETH’s high gas fee, which made users either high-cost and low-efficiency, or low-cost and low-security, the multi-native token proves the real security and convenience.
Our Game of DeFi Campaign has already entered the final stage. There are still millions of QKC reward pools waiting for the users to share. Users can download QPocket wallet to participate in this event.

Phase III: King’s Landing — Dex and Liquidity Mining

In this phase, all the community members can have the experience to use our two new products:

QSwap: Multi-native token version Uniswap

Unlike Uniswap, which can only support ERC20 tokens, QSwap supports multi-native tokens. Thus, no extra pre-authorized approval is required in the process, and any multi-native token can be used to pay gas fee ( not only QKC ). Users will get a better experience and maintain more security by avoiding granting unlimited authorization. Moreover, there will be a much lower gas fee due to sharding technology provided by QuarkChain infrastructure.

Element Miner: Interesting mining and trading DApp game

The player’s goal is to collect 5 elements to join the reward pool. However, since these elements are reinforcing to each other (just like the mining throughputs from different projects are different), using QSwap will be the most efficient approach.
One last question: This DeFi campaign uses test tokens. What if the network uses tokens with real value?
submitted by QuarkChain to quarkchainio [link] [comments]

What Is Defi?

Cryptocurrency’s promise is to make money and payments universally accessible– to anyone, no matter where they are in the world.
The Decentralized Finance (DeFi) or Open Finance movement takes that promise a step further. Imagine a global, open alternative to every financial service you use today — savings, loans, trading, insurance and more — accessible to anyone in the world with a smartphone and internet connection.
This is now possible on smart contract blockchains, like Ethereum. “Smart contracts” are programs running on the blockchain that can execute automatically when certain conditions are met. These smart contracts enable developers to build far more sophisticated functionality than simply sending and receiving cryptocurrency. These programs are what we now call decentralized apps, or dapps.
You can think of a dapp as an app that is built on decentralized technology, rather than being built and controlled by a single, centralized entity or company. (Get used to this word, dapp, you’ll be seeing it a lot from here on out.)
While some of these concepts might sound futuristic–automated loans negotiated directly between two strangers in different parts of the world, without a bank in the middle– many of these dapps are already live today. There are DeFi dapps that allow you to create stablecoins (cryptocurrency whose value is pegged to the US dollar), lend out money and earn interest on your crypto, take out a loan, exchange one asset for another, go long or short assets, and implement automated, advanced investment strategies.

What differentiates these DeFi dapps from their traditional bank or Wall Street counterparts?

At their core, the operations of these businesses are not managed by an institution and its employees — instead the rules are written in code (or smart contract, as mentioned above). Once the smart contract is deployed to the blockchain, DeFi dapps can run themselves with little to no human intervention (although in practice developers often do maintain the dapps with upgrades or bug fixes).
The code is transparent on the blockchain for anyone to audit. This builds a different kind of trust with users, because anyone has the opportunity to understand the contract’s functionality or find bugs. All transaction activity is also public for anyone to view. While this may raise privacy questions, transactions are pseudonymous by default, i.e. not tied directly to your real-life identity.
Dapps are designed to be global from day one — Whether you’re in Texas or Tanzania, you have access to the same DeFi services and networks. Of course, local regulations may apply but, technically speaking, most DeFi apps are available to anyone with an internet connection.
Permissionless” to create, “permissionless” to participate — anyone can create DeFi apps, and anyone can use them. Unlike finance today, there are no gatekeepers or accounts with lengthy forms. Users interact directly with the smart contracts from their crypto wallets.
Flexible user experience — don’t like the interface to a certain dapp? No problem — you can use a third party interface, or build your own. Smart contracts are like an open API that anyone can build an app for.
Interoperable — new DeFi applications can be built or composed by combining other DeFi products like Lego pieces — e.g. stablecoins, decentralized exchanges, and prediction markets can be combined to form entirely new products.
DeFi is now one of the fastest growing sectors in crypto. Industry observers measure traction with a unique new metric — “ETH locked in DeFi”. At the time of writing, users have deposited over $600 million worth of crypto into these smart contracts.
Intrigued? Let’s take a closer look at just a few of the popular DeFi dapps out there that you can try today. You’ll need a cryptocurrency wallet with a built-in dapp browser (like Coinbase Wallet) to connect to these dapps. You can also use most of these dapps on desktop by selecting the Coinbase Wallet option and scanning a QR code.
It’s still early days for dapps, so DeFi users should do their research on new products and services. Like any computer code, smart contracts can be vulnerable to both unintended programming mistakes and malicious hacks.

Stablecoin and Decentralized Reserve Bank: MakerDAO

Maker is a stablecoin project where each stablecoin (called DAI) is pegged to the US Dollar and is backed by collateral in the form of crypto. Stablecoins offer the programmability of crypto without the downside of volatility that you see with “traditional” cryptocurrencies like Bitcoin or Ethereum.
You can try creating your own DAI stablecoin on the Maker Oasis dapp. Maker is more than just a stablecoin project, though–it aspires to be a decentralized reserve bank. People who hold a separate but related token, MKR, can vote on important decisions like the Stability Fee (similar to how the Federal Reserve’s Federal Open Market Committee votes on the Fed Funds rate).
Another stablecoin with a different architecture is USD Coin (USDC), where every USDC token is backed by one US dollar held in an audited bank account.
Borrow and Lend: Compound
Compound is a blockchain-based borrowing and lending dapp — you can lend your crypto out and earn interest on it. Or maybe you need some money to pay the rent or buy groceries, but your funds are tied up in your crypto investments? You can deposit your crypto to the Compound smart contract as collateral, and borrow against it. The Compound contract automatically matches borrowers and lenders, and adjusts interest rates dynamically based on supply and demand.
Other popular borrow/lend dapps are Dharma and dYdX. Aggregators like LoanScan track borrow/lend interest rates across the various dapps, so you can shop around for the best rates.
Automated Token Exchange: Uniswap
Uniswap is a cryptocurrency exchange run entirely on smart contracts, letting you trade popular tokens directly from your wallet. This is different from an exchange like Coinbase, which stores your crypto for you and holds your private keys for safekeeping. Uniswap uses an innovative mechanism known as Automated Market Making to automatically settle trades near the market price. In addition to trading, any user can become a liquidity provider, by supplying crypto to the Uniswap contract and earning a share of the exchange fees. This is called “pooling”.
Other popular Decentralized Exchange platforms (DEXes) include 0x, AirSwap, Bancor, Kyber, IDEX, Paradex and Radar Relay. All have slightly different architectures.
Prediction Markets: Augur
Augur is a decentralized prediction market protocol. With Augur, you can vote on the outcome of events, except you put ‘skin in the game’ by attaching a value to your vote. Prediction market platforms like Augur and Guesser are nascent, but offer a view into a future where users can make better predictions by tapping into the wisdom of the crowd.
Synthetic Assets: Synthetix
Synthetix is a platform that lets users create and exchange synthetic versions of assets like gold, silver, cryptocurrencies and traditional currencies like the Euro. The synthetic assets are backed by excess collateral locked into the Synthetix contracts.
No-loss savings games: PoolTogether
The composability of DeFi lends itself to infinite new possibilities. PoolTogether is a no-loss game where participants deposit the DAI stablecoin into a common pot. At the end of each month, one lucky participant wins all the interest earned, and everyone gets their initial deposits back.

So what’s next for DeFi?

Money and finance have been around in one form or the other since the dawn of human civilization. Crypto is just the latest digital avatar. In upcoming years, we might see every financial service that we use in today’s fiat system being rebuilt for the crypto ecosystem. We’ve already seen asset issuance and exchange, borrowing, lending, custody, and derivatives built for crypto. What’s next?
The first generation of DeFi dapps rely heavily on collateral as a safeguard. That is, you need to already own crypto and provide it as collateral in order to borrow more crypto. More traditional unsecured borrowing and lending will need to rely on an identity system, so that borrowers can build up credit and increase their borrowing power, much like today’s SSN and FICO scores. Unlike today’s identity and credit systems however, a decentralized identity will have to be both universal and privacy-preserving.
We’re also seeing innovation in the insurance space. Many of today’s DeFi loans are overcollateralized (meaning that loans seem inherently safe because of the generous cushion of assets held in reserve). But the black swan for DeFi is smart contract vulnerabilities. If a hacker finds and exploits a bug in the open source code for a dapp, millions of dollars could be drained in an instant. Teams like Nexus Mutual are building decentralized insurance that would make users whole in the event of smart contract hacks.
Another trend we’re seeing is better user experience. The first generation of dapps was built by blockchain enthusiasts for blockchain enthusiasts. These dapps did a great job of demonstrating exciting new DeFi possibilities, but the usability left something to be desired. The latest iterations of DeFi apps are prioritizing design and ease of use in order to take open finance to a wider audience.
In the future, we expect that crypto wallets will be the portal to all your digital asset activity, just like an internet browser today is your portal to the world’s news and information. Imagine a dashboard that shows you not just what assets you own, but how much you have locked up in different open finance protocols–loans, pools, and insurance contracts.
Across the DeFi ecosystem, we’re also seeing a move towards decentralizing governance and decision-making. Despite the word “decentralized” in DeFi, many projects today have master keys for the developers to shut down or disable dapps. This was done to allow for easy upgrades and provide an emergency shutoff valve in case of buggy code. However, as the code becomes more battle-tested, we expect developers will give up these backdoor switches. The DeFi community is experimenting with ways to allow stakeholders to vote on decisions, including through the use of blockchain-based Decentralized Autonomous Organizations (DAOs).
Something magical is happening in the open financial system — crypto is bringing money online, and we’re seeing a quantum leap in what’s possible when it comes to the functionality of money. It’s a rare opportunity to see an entirely new industry blossom from scratch. The DeFi space will at first play catch up with today’s financial services industry. But over time, it’s hard to even fathom what innovations will come about when the power to build financial services is democratized to anyone who can write code.
submitted by jakkkmotivator to Latest_Defi_News [link] [comments]

Efficient But Simple! How QuarkChain Multi-Native Tokens Change the DeFi Concept

Efficient But Simple! How QuarkChain Multi-Native Tokens Change the DeFi Concept

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DeFi is the hottest topic in the blockchain society these days, and the active on-chain behavior has given new vitality to many public chains based on Ethereum. However, due to structural flaws in Ethereum1.0, there is a vast authority difference between native tokens and ERC20 tokens, and it has restricted the development of DeFi. QuarkChain aims at building the next-generation DeFi platform through sharding and multi-native token to solve the problems facing DeFi today: high GAS cost, poor user experience, insecurity, and vulnerability to attacks.
Let’s experience the security and the ease-of-use of the next generation of DeFi. These DeFi products will be launched shortly, but before that, we need to introduce why our multi-native token function will help us realize a new revolution to DeFi.

DeFi, the most prominent trend in crypto?

DeFi provides users with a new way to increase passive income. Compared with the inflation model of PoS pledge, DeFi income comes from a series of derivative transactions such as staking and lending operations of the mainstream cryptocurrencies, rather than pure token creation. The expected inflation rate is lower, which makes income more stable and more reliable. Once the bull market comes, in addition to the interest on loans, one can also enjoy the benefits of staking tokens. Coupled with the newly launched “lending is mining”, it has made this year’s hot market even hotter.
Data on DeBank showed that in the context of rising global asset prices, the lending amount in the crypto market was $1.08 billion. In terms of users, the current number of DeFi users is less than 240,000. Compared with the nearly 40 million ETH addresses held on Ethereum, DeFi may be able to leverage the entire market, but things do not develop so smoothly as expected.

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Network congestion and skyrocketing gas fees

Affected by the epidemic, Bitcoin plummeted by almost 50% to $3,800, and ETH fell as much as 65.2% just on March 12 and 13. The plummet caused a run, the Ethereum miner fees that carried a large number of DeFi and DApps skyrocketed, and the network was also congested. DeFi users were unable to redeem and borrow in time, and the forced liquidation was triggered due to the inability to replenish the positions in time, causing considerable losses to the users on it.
As we all know, Ethereum relies on the consumption of GAS to complete its economic operation. Every step of the chain requires the consumption of GAS. The miners will determine the order of transactions based on the price of the GAS fee. From Mar. 12 to 13, due to a large number of transactions such as transfers, replenishment, deposit, and withdrawal of users on the chain, the Ethereum GAS fee increased to 10 times of the usual, and the GAS fee was once as high as 1 ETH to successfully package transactions. The high handling fee restrains the demand for transactions. However, the value growth of DeFi comes from frequent transaction activities on the chain. It says that the high GAS fee has limited the upper bound of the value of Ethereum DeFi. ETH can only pay the GAS fee. Any ERC20 token issued on it cannot achieve this function, setting a bar for new users, and DeFi’s dependence on ETH, further restricting DeFi’s free transactions.

Your eyes are on the passive income, but the hackers are eyeing your principal.

“If you transfer Bitcoin to an Ethereum-based platform, you must pay attention to security issues, because the security of the two blockchains of Bitcoin and Ethereum is not the same. Although Ethereum has advantages and flexibility, the investment in security does not seem to be enough. This means that you may encounter various risks, such as a sudden increase in the gas price which leads to other related problems. All of these will cause you to lose part or even all of your investment funds.” Said by Andreas Antonopoulos, a well-known KOL in the cryptocurrency industry, made the above evaluation of Ethereum-based DeFi.
Why is there a vast hidden danger in Ethereum’s DeFi? The first thing to know is that when an ERC20 token is issued, an ERC20 contract is created. This ERC20 contract defines some necessary interfaces, which are mainly used for bookkeeping. But this ERC20 contract is a contract subordinate to Ethereum, and the authority of this contract is different from Ethereum itself.
Let’s introduce in detail, what the difference between native ETH and other ERC20 tokens is on the DeFi products of Ethereum.
If you use Ethereum’s native token ETH, the operation is simple. As long as the ETH is transferred to the contract of the target DeFi application, the contract operation will be the same as when we use cash to invest in stocks or wealth management products. No other operations are required.
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However, the operation of tokens minted using ERC20 contracts is very different from native ETH, regardless of whether the tokens minted by these ERC20 contracts are well-known. Before trading, the ERC20 contract first authorizes the DeFi platform’s contract to transfer a specified number of ERC20 tokens on the account, such as USDT, USDC, or WBTC. After approval, the DeFi contract is called to transfer money. The intuitive understanding is to avoid frequent password input in small transactions, we authorized Paypal to open a password-free payment, so that the payment can be directly deducted during consumption. It sounds convenient, but is it that good?


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There is a crucial problem here: if the DeFi contract is malicious during the approval process, this DeFi contract has the right to transfer all the ERC20 tokens on our account to any account. It is similar to that we authorize Paypal to perform a password-free operation of the balance, but if a hacker attacked Paypal successfully, this hacker could transfer all our money to his account. Similar things have happened before.
There is a famous project called Bancor, which used to rely on the type of authorization contract for ERC20 processing. However, there was a bug in the contract that allowed the contract to transfer the tokens in the user’s wallet to any hacker designated address after the user was authorized, which caused a loss of almost 100,000 US dollars.
The loss was not so significant because it occurred in the early stage of DeFi development. If it happens today that the DeFi asset scale on Ethereum already reached hundreds of millions, it would cause severe damage to the entire Ethereum ecosystem and the development of DeFi.
Therefore, many problems DeFi met were due to the imperfect design of the ERC20. However, we also observe fewer attacks on native tokens because of the complete authority control and the shorter operation chain. Therefore, to solve this problem, we can just increase the authority of ecological tokens so that they can have the same functions as native tokens. All tokens can become “first-class citizens” in this public chain ecology and enjoy the same convenience.

The next generation of DeFi platform

Many public chain projects, especially Ethereum itself, have, in fact, deeply recognized their own shortcomings and have also proposed new solutions. The fundamental core is to improve processing efficiency and avoid network congestion. Using PoS consensus instead of PoW can improve throughput and reduce packaging cost, which means reducing GAS cost. Of course, improving transaction efficiency and reducing GAS cost will become the primary long-term goals, but this does not enhance the security and usability of DeFi on Ethereum. In our opinion, a mature DeFi platform must have the following characteristics:
High efficiency: Have faster concurrent processing capabilities, which means higher TPS.
Low GAS rate: Lower fees can encourage the DeFi users’ enthusiasm for using it and even stimulate the development of high-frequency trading.
Safer: There are fewer interactive links in the contract, which at least structurally avoids the problems caused by the permission difference, such as the complexity of ERC20 interaction, the lengthening of the operation chain, and the increase of vulnerabilities.
Easier to use: Various types of multi-native tokens can be used to pay transaction fees during the transactions, and there is no need to use designated tokens to pay for that.
Easy to combine: It can support a wide range of contracts, including the combination of different consensuses on the same chain, ledger structures, and other elements. It can even open up other chains, and make DeFi like a real Lego game.

People always want a faster horse until the car appears.

In the QuarkChain mainnet, the multi-native token is the primary function for building the next generation of the DeFi Network. The multi-native token has the same status as QKC in the QuarkChain system. They can call contracts, cross-chain, and pay transaction fees under certain conditions. In addition to being unable to participate in QKC network governance, the multi-native tokens can achieve all of the QKC’s functions, including cross-chain transfers. Most of the non-native asset inconvenience problems faced by Defi can be solved. In the future contract, the functions of the multi-native token will be the same as QKC, eliminating the last barrier to applying multi-native tokens. We will launch our DEX afterward when users genuinely feel the unimpeded DeFi platform on QuarkChain.

The new DeFi world will start with the creation of personalized multi-native tokens.

Ethereum performance and contract security restrictions have affected the development, which is why DeFi will become the leading new field of QuarkChain. After intensive development and testing, the multi-native token function is ready to be officially delivered to the community. The QuarkChain community members can mine their tokens, as well as use them for transfer (including cross-sharding transfer), payment of fees, and directly call smart contracts very soon. All the users can experience the convenience and innovation that the multi-native token brings to the blockchain system in conjunction with the DEX we will soon launch.
To let everyone experience the security and ease of use of the next generation of DeFi we bring, QuarkChain will launch five DeFi-related products in August. These products are expected to be launched one after another from this week. Please stay tuned with us!


Learn more about QuarkChain multi-native token:

https://www.youtube.com/watch?list=PLKGfzFVHyMzGeV78paQ2qsmlaTyCssmfs&v=-at4Dmbn11M&feature=emb_title

Read more on the next generation of the DeFi network:

https://medium.com/quarkchain-official/building-the-next-generation-of-defi-network-9a5582d487d6
submitted by QuarkChain to quarkchainio [link] [comments]

Cryptocurrency Terminologies for Beginners

The rise of cryptocurrency is making a huge influence towards different businesses, companies or even simple individuals that supports the use of it in exchange of service, products, investments, etc.
Number of users increases seemingly. However, beginners often get confused with the jargons, known only in the said network. In this article, I will be sharing basic terms that exists in cryptocurrency world:
Cryptocurrency - is an internet-based, digital/virtual form of currency that is secured by cryptography (which makes it almost impossible to counterfeit) and operates independently from central bank. These include Bitcoin, Bitcoin Cash, Etherium, Ripple, Litecoin, etc.
Cryptography - process of securing communication and data in various electronic transactions (such as account name, account number, amount, digital signature, etc.) by converting plain texts to unintelligible texts and vice versa. It is also be utilized for user authentication.
Blockchain - refers to a growing list of record or the digital information (blocks) stored in public database (chain).
Wallet - or software wallet, is where you “store” your cryptocurrency. It is basically a digital program/system/site/app that store public and/or private keys used to track ownership and transactions of your cryptocurrency. Example: Coinbase, Trust Wallet, Exodus Crypto Wallet, Coins.ph, Binance Wallet, etc.
Wallet Address - is a destination associated with the software wallet where a user sends and receives cryptocurrency. Usually include a long series of letters and numbers. Example: qz8wlltmrj83mj2waw6rgaw9wtzqywuc5s3xqm67g7
Fiat Money - a currency that has actual value maintained; established as money; and backed up by the government. Example: US Dollar, British Pound, Philippine Peso, Japanese Yen, Euro, etc.
Altcoin - or "alts"; refers to any cryptocurrency other than Bitcoin.
ATH (All-time High) - it's when a cryptocurrency breaks its previous record price.
FOMO (Fear of Missing Out) - refers to the strong urge or need to purchase a cryptocurrency when the price starts increasing rapidly.
Mining - process of validation of transactions such as computers trying to solve blocks in a blockchain. Thus rewarding new cryptocurrency to successful user (miner). However, mining scams are rampant nowadays. Miners are always reminded not to provide private keys, deposits, etc to avoid these frauds.
FUD (Fear, Uncertainty and Doubt) - this is the greatest risk for investors; A state of mind that often influence when and how crypto-enthusiasts make trades, purchase or hold onto their coins thus affects greatly in the actual prices/convertion rate of cryptocurrency.
DeFi - short term for "decentralized finance" which includes digital assets, protocols, smart contracts, and dApps; is a financial software built on the blockchain that can be pieced together like Money Legos. Etherium is the primary choice for DeFi Application.
Stablecoin - refers to a class of cryptocurrency that attempts to stabilize coin prices, backed by reserve assets.
Reserve Assets - financial assets denominated in foreign currencies, held by central banks; must be readily available for monetization and/or must be an external physical asset. Example: US Dollars, Gold.
That's all for now, I hope this information might help especially beginners who still lack knowledge regarding these terms. Continue supporting #Cryptocurrency
submitted by jBaij to btc [link] [comments]

ARK. Here's what's it's all about, what's been going on, and what's coming. [Explain Like I'm Busy]

Dude, it said explain like I'm busy I'm not going to read all this

No problem. Check out these hand-picked relevant ARK Crypto Podcast episodes. Learn while you listen, drive to work or home, cook a steak, give your dog a bath, etc.
If you have decided to read all this, thanks, keep reading for a concise breakdown!

So what's the current big thing going on with ARK right NOW?

ARK.io has recently announced on both its blog and its Twitter that ARK Core v2.6 is coming to Mainnet February 11th. The iteration of 2.6 may sound anticlimactic, but it's far from that. Core v2.6 is the biggest upgrade to date- even bigger than the total Core overhaul performed for v2.0, deployed late 2018.
The new version brings new transaction types to the ARK Public Network, including types that will play a role in creating an ecosystem of linked chains. This ecosystem of linked chains will have the ARK Public Network in the center of the action, storing chain details and allowing for chain discovery.
These new transaction types include:
Multipayments — sending to multiple ARK addresses, while just initiating one transaction, saves time and cost
Multisignatures — you can now get all of the benefits of multisignatures where more than one user can propose or spend funds depending on the predefined terms (eg. 2 out of 3 users needed to successfully send tokens, vote, …)
IPFS — register IPFS compliant hashes on the ARK blockchain within Desktop Wallet.
Business & Bridgechain registrations — you can now register your business and bridgechain on the blockchain and soon, you will be able to get verified via our Marketplace to get access to some exciting new features.
Delegate resignation — delegates who don’t want to be voted for anymore can now opt-out of this by simply initiating delegate resignation.
Additionally, the Core v2.6 improves security against double-spend attacks by implementing nonces. Also, massive enhancements were made to the GTI or Generic Transaction Interface, a critical tool for developers who wish to develop decentralized applications.

What is ARK's unique approach to current issues plaguing the blockchain industry?

ARK empowers everyone, regardless of their aim or technical background, to quickly and easily leverage blockchain technology. In the current hype-driven blockchain landscape, ARK acts as a beacon for individuals, groups, and enterprises seeking to apply blockchain technology to both reach their individual goals and affect change in their local community. ARK’s uniquely simple technology stack allows almost anyone to create and deploy standalone blockchains for any use case with an intuitive graphical user interface and experience. These newly created blockchains also known as bridgechains will have the ability to interoperate through ARK SmartBridge Technology. ARK is also reinventing smart contracts with ARK Logic, a collection of tools including custom transaction types, templates, and plugins. ARK Logic brings security, adaptability, and scalability to decentralized computing workflows. Most importantly, the ARK Ecosystem fosters a growing international community of developers, node operators, blockchains, businesses, and enthusiasts who collectively breathe life into this disruptive technology. Get into the interactive whitepaper here.

Tell me about the ARK Public Network

Ok, no problem. Since coming online on March 21, 2017, the APN has operated as a P2P cryptocurrency with fast block times of 8 seconds and low dynamic fees (near a penny and somewhat novel for a DPoS blockchain). However, the end goal of the APN far exceeds that of just a cryptocurrency that is faster and cheaper to use than Bitcoin. I'll explain further in a minute.
The network, as mentioned, is set up as Delegated Proof-of-Stake. This means forging delegates are deemed worthy to secure the chain and add blocks to it by the holders of the ARK token, which vote for delegates using their ARK as vote weight. ARK remains in users' control at all times, and the top 51 delegates in vote weight enter forging status. The network awards each delegate 2 ARK per block (~12,705 ARK/mo) for services rendered. This continues ad infinitum resulting in a declining inflation rate each year (relative to total supply). When users add or remove ARK from a voting wallet address, vote weight adjusts automatically and they don't need to vote again. Voting continues even if user's wallet is offline.
The main uses of ARK as the cryptoasset of the ARK Public Network besides being a P2P cryptocurrency include:
If you're interested in more details about APN uses, check this direct link to that section of whitepaper.

Is team good?

Yes, team good. Team very good. General sentiment among ARK team members is that ARK is a dream project to work on, and this motivates them to do great work on a consistent basis as the ARK technology stack progresses. Very recently, ARK hired an additional half dozen people in various departments, including marketing department. This brings ARK team total to over three dozen experts. The ARK business entity is also well funded with around 10 years of budget. The ARK business entity spends funds in a very sensible manner compared to some other projects who spend with insufficient foresight or discretion.
Members of the board are thoughtful and deliberate, and the CEO FX Thoorens has been hard at work putting a spotlight on ARK, showing an 'intermeshing' of ARK with the global regulatory landscape in regards to crypto. Recently, ARK became a founding member of ADAN, a professional association based in France created to help structure and develop the digital assets industry. Other members include Consensys France and Ledger. ADAN will consult with public authorities, industry leaders and private bodies to promote the use of digital assets and all activities in this sector. This includes exchange platforms, brokers, hardware, protocols, decentralized applications and blockchain technology platforms. Hear FX Thoorens talk more about this in this podcast episode.
The ARK business entity is located in France, but the ARK team is distributed across 10+ countries and multiple continents.

What's going to happen?

Cool stuff. Organizations and open source projects have been stumbling across ARK and really like what they see. Multiple projects are working with ARK technology and are at various stages of development, but since you're busy, I'll highlight the project nOS which recently launched their public testnet and uses ARK technology for their blockchain. nOS also has great things to say about ARK that you can hear in this podcast episode or watch in this video.
We believe that as more businesses, organizations, and open source projects start looking around for blockchain solutions, they will also enjoy ARK's simplicity, flexibility, and feature set. Our powerful technology stack is backed up by a recently upgraded documentation hub for developers.
The product we have that makes it very easy for projects to join the ARK Ecosystem is called the ARK Deployer, which you can learn about in this two minute video. It allows developers from all walks of life to create, customize and launch a standalone blockchain in three simple steps. In the near future, what's going to happen is a big improvement to the Deployer. The ARK Deployer will get an upgraded and more powerful user interface that also facilitates chain management post-launch, as well as interface directly with cloud providers like Digital Ocean to launch genesis node and peers in background. This would allow for a massive leap forward in our vision of 'Point. Click. Blockchain.'
ARK.io is also working on a Marketplace for developers, where custom plugins and tools developed by both ARK.io as well as third parties can be acquired for assembling blockchains much easier. Imagine a wordpress-type environment where you can create a super-powerful and customized blockchain by connecting Legos together. In the same way that early World Wide Web needed WordPress/Squarespace style tools to bring the technology to every business or organization, we believe that this need will be out there for blockchain technology as this new decade progresses.
There is more cool stuff that is going to happen, but I'll wrap it up there for now.

After reading all this stuff, what is it you want me to do?

Well, not make any financial decisions, because that is not the purpose of this information. However, as a developer, there's a lot of interesting things you should know and may want to consider doing. The ARK technology stack uses TypeScript and other JS-style frameworks, so if you know those, you should get excited.
Here's some additional less 'developery' stuff you can do:
Thanks for coming along for the ride of this post. ARK has been out here, it's out here, and it's going to continue to be out here, doing its part to make sure everybody knows that blockchains are, in fact, a thing.
submitted by doubled1c3 to ArkEcosystem [link] [comments]

How we can generate a free $10/per person in under 10 minutes!

Repost without that dorky intro. This is actually a very serious opportunity for us!
Now that I have your attention


There is a well vetted, popular money sharing app called Cash App used by tons of people. My s/o and I use it daily to send our share of groceries, rent, meals, and bills. It's slick to use and free (Also supports bitcoin and cashcards). I genuinely love this app and vastly prefer it to Venmo or Paypal. Just my opinion.

Please note:

Here's the logistics of the free fundraising:

Cash App includes a referral link system where one person can send out a referral link, Yang Gang not currently signed up with the app can use the referral link/code and enter bank info. After completing one successful transaction (minimum $5), each party will get $5 deposited into their Cash App account.

That's a net of $10 free dollars!

I've just tested this with u/TeslaMecca. They can attest how simple and slick this is. This is a huge opportunity for us Gang.

Here are some more details on the logistics:

Again, net of $10 free dollars! Awesome!

The sweet potato about this is that we can elect and vet volunteers to set up a sort of 'referral link hub' where trusted yang gang could sign up to collect funds and max out their individual donor limit, and transfer any remaining funds to the next volunteer. We could do a weekly push to keep maximizing referrals.

More on the referral system:


For the lazy:
"Square Cash App Referral Program Details
You must have the Square Cash App on your mobile device to access the referral program.
Once you have opened the Square Cash App, just visit the “Invite Friends” link, where you can enter your friend’s phone numbers to send them a referral.
When your referrals download the Square Cash App, connect a debit card, and send $5 or more, you will both earn a $5 bonus credit.
It looks like you can refer as many friends as you like, and there is no limit to the amount of $5 referral bonuses that you can earn.
Referrals must be sent via your phone, as you cannot refer people from your online account."
Please note: if you do not have this app, please don’t download/sign up for it unless you have a referral link. It’s worth $10!



I think it's important for me to give a little background on myself before asking you all to trust me with this task. Below is a little about me if you're a skeptic, like myself. I'm taking a leap of faith revealing a LOT about myself and locations, so please be courteous to me and my family. Iowa nice <3.
About me:
My name is Jordan, I'm a normal 28yo guy from Central Iowa who has a similar background to many of you; never been actually involved in the political process until Andrew Yang. Andrew has really showed me that not only can the political process be fun and exciting, but also bring millions of Americans together in the process.
I'm from a small farm town of ~1,400 people. I graduated HS and moved out of state for college. I'd been involved, and in charge of several small-scale philanthropy and fundraising clubs (I'm willing to provide more detail and background for those who are skeptics). After graduation, I worked in several sectors. I've done a bit of marketing, TONS of customer service, retail, food service, management, and finally ended up in the healthcare sector. I'm currently working to help Americans in my state navigate their insurance to get their vital diabetic supplies. I have a s/o that I love to spend time with, as well as our two cats and dog. I'm very close with my family and friends, love to be outside, play video games, build LEGO (when I can afford it). I absolutely love helping people and making a difference (especially when I can SEE that difference!). I'm fortunate enough to be in a position in my life where I can dedicate some time and energy to this campaign that I so passionately believe in (<3 you YG!).
Anywayyyyy... I've been Yangin' since around debate 1 (late June).
Things I've been up to for YangGang:

Shameless plug for textbanking:
I've been textbanking for the past few weeks and I've got to say, it's a pretty great experience. I've had numerous hilarious encounters with fellow Americans while simply volunteering my time and texting. It's really fun. One of my canned introductory texts was met with the following:

Contact: ok boomer
Me: What? lol I'm a millennial? born in 91

Contact: bs, name 3 pokemon

Me: just 3? like from any generation?

The conversation went on to just shooting the spit with a fellow American around my age about pokemon (and a dash of politics). There are countless memorable experiences I've had while volunteering. I'm still currently talking with a contact that started with; "what did the optometrist say to trump after his eye exam?", which after a minute I laughed and understood the punchline. We veered off the political discussion and now we are talking about our favorite comedians and shows we have seen live.

I'm strongly encouraging anyone with free time to get signed up and send a few texts out. It takes about an hour or so to get signed up, but once you get going, it takes a few seconds to get signed in and sending texts and making a difference. My favorite thing BY FAR about this is you can actually see the difference you are making. Sure, you're going to get a few people telling you to fuck off, yell at you to opt them out, or ask tough questions that you're not sure how to answer. BUT, you will have the ability to answer meaningful questions to genuinely curious Americans about this candidate that we are so passionately pushing to the highest office in our land. The banking community is extremely welcoming and helpful. Please consider donating your time and energy to this. It's a great way to contribute, especially when I can't afford to donate.
Here is the To-Do List for signing up. Let me know if you need help, I'm passionate about this campaign and will take time to walk volunteers through.



Whew, that was a long post! Took me a few hours between cleaning/laundry. I hope you all can see what I'm seeing for this opportunity.
-I worked really damn hard on this, please upvote and share for visibility friends-

TL;DR: Let's secure the fucking bag, YangGang!

Dog Bless,

~Jordan
submitted by jorjorbiinks to YangForPresidentHQ [link] [comments]

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