DeFi is becoming more and more popular as the main use case for cryptocurrencies. This video explains in detail what DeFi is and what you should know about before getting involved.
0:38 Bitcoin and Our Financial System 1:24 Our Centralized Financial System 1:59 What is DeFi? 2:22 DeFi Components 4:16 – DAI explained 5:51 – DEXs explained 6:33 – Decentralized money markets 8:06 Money Legos 8:56 DeFi Advantages and Risks 10:02 Conclusion
Liquidity pools, in essence, are pools of tokens that are locked in a smart contract. They are used to facilitate trading by providing liquidity and are extensively used by some of the decentralized exchanges a.k.a DEXes.
One of the first projects that introduced liquidity pools was Bancor, but they became widely popularised by Uniswap.
Curve realised that the automated market making mechanism behind Uniswap doesn't work very well for assets that should have a very similar price, such as stable coins or different flavours of the same coin, like wETH and sETH. Curve pools, by implementing a slightly different algorithm, are able to offer lower fees and lower slippage when exchanging these tokens.
The other idea for different liquidity pools came from Balancer that realised that we don't have to limit ourselves to having only 2 assets in a pool and in fact Balancer allows for as many as 8 tokens in a single liquidity pool.
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✅ LYN ALDEN and I discuss portfolio that will HELP YOU profit from DOLLAR losing reserve currency status, click this link to check it out!! 🔥 https://www.georgegammon.com/portfolio
For more content that'll help you build wealth and thrive in a world of out of control central banks and big governments check out the videos below! 👇
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LYN ALDEN and I discuss portfolio that will HELP YOU profit from DOLLAR losing reserve currency status, click this link to check it out!! 🔥 https://www.georgegammon.com/portfolio
For more content that'll help you build wealth and thrive in a world of out of control central banks and big governments check out the videos below! 👇
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