Your Decentralized Finance Guide the Future of Finance
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Diversifying into DeFi The future of finance Your DecentralizedPage 1 Finance Guide Introduction to DeFi Decentralized Finance (DeFi) moves at such an accelerated pace that it can be quite difficult to keep up, let alone evaluate new projects in a timely manner. What makes it even more challenging is the lack of a standard approach – there are many different ways to measure and compare DeFi protocols. Fundamental analysis seeks to determine whether a protocol is overvalued or undervalued, so that investors and traders can make better decisions on their positions. Currently, the DeFi space is primarily focused on Ethereum, a blockchain on which most DeFi tools are built. However, this is only a starting point for decentralized finance, and progress must occur on other blockchains, including Bitcoin, XRP, LTC, EOS, Fusion, etc. Why is DeFi important? In short, Decentralized finance (DeFi) follows the idea of rebuilding the infrastructure of financial services and moving it onto decentralized networks to take the finance industry from a centralized system full of monopolies towards a trustless and transparent world that runs with no intermediaries. Currently DeFi is primarily built on the Ethereum network, where DeFi applications provide users with traditional financial services but in a decentralized, borderless manner that enables anyone across the world with an internet connection to gain access to financial products and services. DeFi is believed to be the future of the Financial Services industry. The freedom from the monetary control of centralized institutions is the ultimate vision of this movement. In the long run, institutions and FinTech innovators must look to collaborate to efficiently build on traditional markets while leveraging the innovations in DeFi. Page 2 The notion of DeFi as a distinct subsection of the crypto industry first came to be in May 2018 at the Decentralised Finance Meetup in San Francisco. Fast forward to today and a multitude of startups are now working on creating innovative smart contract instruments, which not only allow for more decentralised and seamless peer-to-peer transactions and swaps, but ones which also encompass much better yield opportunities for users. However, it is important to note that the vast majority of DeFi platforms are currently focused on the Ethereum blockchain, and this prompted many to voice concerns regarding high blockchain fees and bottlenecks. Only recently, Blockchair’s DeFi analytics showed that the average and median ETH transaction fees skyrocketed to record highs of $10.33 and $5.68, respectively. Furthermore, the dependency on Ethereum has meant significant downturns in terms of network speed, with ETH based stablecoin transactions hogging the majority of bandwidth congestion. It is therefore imperative that DeFi dApps start to build and operate on multiple different platforms in order to take advantage of the speed and flexibility of other blockchains, and it seems like the Fusion team have risen to the occasion with their delivery of Anyswap. Fusion is built around cross-chain technology, that will take DeFi to the next level, enabling interoperability between blockchains. Tools like Uniswap and Trustswap have some limitations when it comes to this aspect. One of the newest DeFi projects, Anyswap is a game changer, thanks to Fusion’s DCRM technology which is able to ensure interoperability and communication between the different blockchains. These features allow Anyswap to have more use cases and potential than others. Trustswap will also use a cross-chain technology, however, according to their roadmap, this feature will be launched in Q4 of 2021. Page 3 Anyswap, built on Fusion chain, is a new project whose main goal is to link traditional finance to the blockchain. Fusion started working on decentralized finance as soon as it launched. The project has developed features such as a time-lock function and multi-triggering mechanism which allow complex financial operations to be carried out. Fusion offers a flexible DeFI ecosystem, creating the foundation for Anyswap, to implement efficient features and use cases. Future DeFi Prospects According to btconethereum.com, over 131,000 bitcoins are already currently locked in the Ethereum blockchain, a figure that increasing every day, representing over 0.7% of the circulating supply of BTC. This gives a clear idea on how early we are in the DeFi space. DeFi is now worth over $10 billion. Wondering how you can measure and find the highest value of DeFi assets? Read on to learn about some of the strongest and most innovative projects in the space. Disclaimer The information provided is for educational purposes only and should not be construed to be investment advice or considered to be a recommendation of any particular security, strategy or investment product. No portion of this content should be construed as an offer or solicitation for the purchase or sale of any security or investment. An offering may be made available only to certain sophisticated investors through official delivery of confidential offer documents along with other documents. Readers must understand that past performance is not a guarantee of future results. Page 4 Table Of Contents ▪ Top 5 DeFi Projects ◦ 1. Anyswap.exchange ◦ Anyswap Technical Overview ◦ ANY Anyswap Token ◦ Anyswap Lower Fees ◦ How Safe is Anyswap? ◦ Getting Started with Anyswap Now ◦ DeFi Example: $150 Hourly From Anyswap ◦ It’s Much More Than Passive Income ◦ 2. MakerDAO ◦ 3. Synthetix ◦ 4. dydX ◦ 5. Uniswap ▪ Diving Into DeFi ◦ What is DeFi? ◦ Why is Decentralized Finance Important? ◦ Understanding the History of Finance ◦ The Problems With Centralized Finance ◦ Birth of Bitcoin & the Crypto Boom Page 5 ▪ The World of DeFi ◦ Understanding the DeFi Ecosystem ◦ DeFi Explained Beyond the Surface ◦ Understanding Ethereum inside of DeFi ◦ Other DeFi Blockchain Networks ◦ Wallets in the DeFi Ecosystem ▪ The Power of DeFi in Action ◦ Peer to Peer Transfers ◦ Decentralized Exchanges ◦ Anyswap ◦ Uniswap ◦ Trustswap ◦ Comparative Analysis ◦ DEX DeFi Rewards and Fees ◦ DEX Security ◦ DEX Overview ◦ Lending Pools ◦ Roles of Stablecoins in a DeFi Network ◦ Wrapped Bitcoin, Ethereum, and Other Digital Assets ◦ Single Block DeFi Collateral Loans aka “Flash Loans” ◦ Derivatives on a DeFi Network Page 6 ▪ DeFi Risk Management ◦ Learn About the DeFi Space ◦ Reduce Risk With Stablecoins ▪ APPENDIX 1: DeFi Indicator Terminology ◦ Total Value Locked (TVL) ◦ Price-to-sales ratio (P/S ratio) ◦ Token supply on exchanges ◦ Token balance changes on exchanges ◦ Unique address count ◦ Non-speculative usage ◦ Inflation rate ▪ APPENDIX 2: Index of DeFi Projects ◦ DeFi Blockchains ◦ Lending ◦ Decentralized Exchanges: ◦ Decentralized Derivatives: ◦ Payments: ◦ Digital Assets and Asset Management Page 7 CoinGecko.com/en/yield-farming - check latest DeFI and yield farms Page 8 DeFiPulse.com - check for latest DeFi stats and leading projects Page 9 Top 5 DeFi Projects DeFi growth could not be at a weirder time, with a lock-down sweeping the world, forcing much of the worldwide economy into a shutdown, we have seen this new world of decentralized finance being populated by new projects from teams across the world. There are currently over 100 projects tackling various DeFi solutions. Without a doubt, there will continue to be a plethora of promising and exciting DeFi projects coming out, but for now, we believe that the below five are likely to stand out above the rest and have enormous potential. Page 10 1. Anyswap.exchange Anyswap is a fully decentralized cross-chain swap protocol, based on Fusion DCRM technology, with automated pricing and liquidity system. Anyswap enables swaps between any coins on any blockchain which uses ECDSA or EdDSA as a signature algorithm, including BTC, ETH, USDT, XRP, LTC, FSN, etc. Why is Anyswap the top DeFi token to watch in 2020? Anyswap is the first completely decentralized swap exchange that allows the user to swap any coin or token, from almost any blockchain (ECDSA and EDDSA as signature algorithms means 98% of all blockchains) with one another, without any third party risk. Other leading decentralized exchanges (DEX’s) such as Uniswap only deal with Ethereum based tokens, while Anyswap allows full interoperability between 98% of all blockchains. Anyswap released in July 2020, has already pooled over $6.58M USD, with yearly yield rates over 430% from staking your crypto. Page 11 The ANY token issued is a governance token, which allows voting rights for holders to choose which coins will be listed next. With the ANY token there has been ICO, no fundraising, and no airdrop. One of Anyswap’s most noticeable features is its low cost. Anyswap charges a low fee of only 0.4% for every swap transaction, among which 0.3% goes to liquidity providers and 0.1% goes to Anyswap Company. Anyswap protocol also supports the following features: • Decentralized Cross-Chain Bridge — Users can deposit any coins into the protocol and mint wrapped tokens in a decentralized way. • Cross Chain Swaps — Users can immediately swap from one coin to another. • Programmed Pricing and Liquidity — Liquidity providers could add and withdraw liquidity into swap pairs. The programmed pricing system is based on the liquidity provided. For those who have been involved in the crypto space over the last 4 years, there are certain events and trends which will immediately come to mind when reminiscing about each year. 2017 was highlighted by ICO mania, and 2018 by a persistent bear market, and 2020 has very much been the year of the DeFi revolution - with many pointing to NFTs as next (non-fungible tokens). Leading the DeFi charge have been decentralized exchanges, liquidity pools and protocols, which according to DeFi Pulse, now account for over $10 billion in total value locked (TVL). Suffice to say, DeFi is now the number one buzzword in the space, with seemingly every project looking to make inroads here. As a result, there is now an ever increasing emphasis on providing the best user-experience, Page 12 interoperability and fees on the market, meaning that the well known platforms such as Uniswap are now facing challenges from new players on the block.