and scripting language called Solidity ➔ Ethereum is a widely-used platform for creating decentralized applications ➔ Decentralized applications are deployed on public ledger
estimated 1.7 billion people who currently lack access to financial services. Remittance is expensive and time consuming in the existing siloed services Any kind of loan issuance is a costly and time consuming process
up with a set of open-source protocols that are deployed on a public blockchain like Ethereum, EOS, TRON. ➔ It has the ability to be a financial tool that is outside of government and regulatory control ➔ It doesn’t have geographical barriers ➔ DeFi system is not completely decentralized as they still depend on some of the external inputs.
secured lending methods ➔ No credit checks, meaning broader access to people that cannot tap into traditional services ➔ Transparency of loan issuance, collateral, repayment ➔ Standardization and interoperability (Open integration) ➔ Collateralization of digital assets
that stabilizes the value of Dai through a system: Collateralized Debt Positions ➔ CDPs hold collateral assets deposited by a user and permit this user to generate Dai ➔ Active CDPs are always collateralized in excess
depositing collateral ➔ Step 2: Generating Dai from the collateralized CDP ➔ Step 3: Paying down the debt and Stability Fee ➔ Step 4: Withdrawing collateral and closing th e CDP ➔ Default: CDP is automatically liquidated if the collateral value (in USD) falls too low
establishes money markets on Ethereum blockchain ➔ Contains pools of assets with algorithmically derived interest rates, based on the supply and demand
the protocol, using cTokens as collateral with floating interest ➔ Each market has a collateral factor ( borrowing capacity), ranging from 0 to 1 ➔ Liquidation is performed when borrowing outstanding exceeds their borrowing capacity
exchange on Ethereum blockchain ➔ A simple smart contract interface for swapping ERC20 tokens ➔ Provides liquidity of any Ethereum asset ➔ Kyber, Oasis, 0x are other popular DEXs
the profit and non profit businesses. ➔ The investors can directly and collaboratively take decisions ➔ DAOStack provides an interoperable scalable governance platform for companies ◆ Submit project proposal ◆ Proposals are passed by community vote ◆ Records are secured and transparent
general audience (learning curve) ➔ Scalability limitations of the existing blockchain platforms ➔ No friendly regulatory compliance for the digital assets