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Summary

Summarising Decentralised Finance
Now we have seen the potential opportunities that Defi provides within cryptocurrencies, such as providing traditional banking services with the added advantages of smart contracts operating on the blockchain. Defi also allows for projects such as Terra, which is a warning that the ecosystem is not risk-free; however, these seemingly Ponzi scheme projects should incentivise us to gather as much information and knowledge about Defi and know what projects to invest in for the future. Scallops mission is to integrate the innovative and utility based Defi protocols into its ecosystem.

Here are some questions to recap what we have learned about Defi:

Answer: All loans are over-collaterised so there is no incentive to default a loan.
Answer: The equivalent tokens of your collateral that can be freely moved, traded and used on other dApps.
Answer: Real estate is relatively secure. It has significant investment sums. They are easily comparable. They are traditional illiquid investments.
Answer: You can swap them with WBTC partners like Coinlist, Poloniex and Deversifi.
Answer: Terra is a blockchain protocol supported by algorithmic stablecoins famously LUNA. Terra states a 20% rate of return of investments, which is a very high for a claimed stable ecosystem.
Answer: The Ethereum blockchain supports smart contracts and dApps which creates the possibility of traditional banking on the blockchain which is Decentralised Finance (Defi).
Well done for completing this section, up next we learn about Scallops very own exchange and how you can get stated with trading...