Editor's Note: This article comes fromVernacular Blockchain (ID: hellobtc), Author: William Chen, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Vernacular Blockchain (ID: hellobtc)
, Author: William Chen, reproduced by Odaily with authorization.
If your understanding of Ethereum is still stuck in the "token issuing tool", then obviously you are a bit behind the times.
Of course, this is not to say that Ethereum is no longer capable of this function. In fact, most of the new Tokens are currently issued on the Ethereum platform, and only a small number of them are selected on other public chains, such as BNB, EOS and TRX.
So, what kind of "tool" is Ethereum now? One blogger (founder of Mythos) tweeted: "If you haven't experienced this, don't tell me what you think about Ethereum."
What he mentioned was roughly something like this:
Only after you have performed the following operations are you qualified to comment on Ethereum:
Used Argent Wallet
used DAI
Borrowed money with Compound
Traded on Uniswap DEXDeFi (Decentralized Finance)。
I believe that after reading this tweet, the first reaction of many people is: Is this the same as the Ethereum I know?
DeFi (Decentralized Finance)
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Stablecoin Dai
DeFi ranking, data source: DeFi Pulsesecondary titleStablecoin Dai
The vernacular blockchain in the previous tweet "
What is a stable currency and what does it have to do with legal digital currency
", introduced three types of stablecoins, one of which is the "encrypted asset-backed" stablecoin.
Any financial system must operate based on a stable currency. Stocks need to have a price, bonds need to have a price, and it is impossible to borrow ten yuan today and change it to five yuan tomorrow. All of these require a relatively stable currency as a support.
Maker CDP
The future of DeFi (decentralized finance) must be based on relatively stable cryptocurrencies. Some people think that it is Bitcoin that will gradually stabilize after its huge value in the future, but it must be based on stable coins at present, otherwise it will be difficult to have a stable financial system.
Therefore, the "encrypted asset-collateralized" stablecoin represented by Dai is the most basic support for DeFi.
This "tool" on Ethereum is actually where the stablecoin Dai above is "produced". You can mortgage ETH here to get the stable currency Dai.
Compound
After binding the wallet and confirming that there is enough ETH in the wallet, just click the "Generate" button (and enter the amount of ETH pledged and the amount of Dai generated), and the portal will start the generation process in the background, that is, in the Ethereum Several smart contract transactions are completed on the blockchain.
That's right, in Maker CDP, everything is handed over to the smart contract for processing. After all, decentralization is everyone's core pursuit.
Compound is an open-source decentralized lending protocol based on Ethereum. Unlike general peer-to-peer lending protocols, Compound is more like a decentralized bank.
Uniswap
Being able to see real-time benefits is one of the characteristics of Compound. Currently, Dai, the stablecoin asset launched by MakerDAO, is stored in Compound, which can obtain an annualized rate of return of nearly 5%. Since this income is updated in real time, for ordinary users, they can see their assets growing every day. Compound is very similar to Yu'e Bao.In addition, the interest rate of Compound is self-adjusted according to the supply and demand of the Token market, so exaggerated interest rates often appear in the short term, such as the interest rate in the figure below (does not represent normal income):secondary title
Funded by the Ethereum Foundationsmart contractHayden Adams, the developer of Uniswap, released a decentralized trading platform protocol on the Ethereum mainnet: Uniswap.
Uniswap is a set ofsmart contract, all operations take place on the chain; Uniswap does not have its own Token and is completely decentralized. Except for the previous funding from the Ethereum Foundation, the founder will not earn any income through this Uniswap project.
The idea of Uniswap is very simple but ingenious, it uses the equivalent
ETH and ERC-20 Tokens
Compared with other trading platforms, the smart contract design of the Uniswap trading platform can greatly reduce the amount of Gas used and save costs.
This may sound complicated and difficult to understand, especially since many people don't know much about market makers. But it doesn’t matter, just remember this: Unlike the trading experience of other trading platforms, what Uniswap gives you is a “exchange” experience.
The interface is very simple, just like we go to the bank to exchange currency, tell us the current exchange rate, how much you want to exchange, just exchange it. Not only simple, but also sufficiently decentralized.
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In fact, the essence of finance is still "borrowing and lending". At present, the attempt to decentralize "borrowing and lending" is indeed feasible, but it is also prone to relatively large risks, and this risk mainly comes from the fact that the price fluctuations of encrypted assets are too large.
summary
Finally, I still want to emphasize that the practicality of the current DeFi ecology is still not strong, and the learning cost is relatively high. For example, the most representative DeFi projects on Ethereum introduced in this article, even practitioners in the blockchain industry and ordinary investors in cryptocurrency, are not many people who have personally used them.
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