This article is mainly aimed at new entry-level users to introduce what is defi, how to participate in defi, basic applications and other contents, so as to enable new people to understand and really participate in the process of defi.
The resource link address can be directly pulled to the end of the text!Defi is the abbreviation of decentralized financial, which refers to digital assets, financial smart contracts, protocols and decentralized applications (dapps) based on blockchain (mainly Ethereum).
In short, financial software built on the blockchain can be pieced together like Lego to form an overall utility, which is similar to the overall ability formed by API integration in the software field.
The essential difference between defi and cefi (represented by centralized exchange) is that everything you participate in is real. Every transaction, every loan, money deposited in the flow pool and assets in the wallet are real on the chain, not a database record of the exchange.
The main applications of defi include exchange, stable currency, deposit and lending, financial management, financial derivatives, payment, futures contract, cross chain payment, Oracle and other businesses, as well as lottery, auction, prediction and so on.
Defi has huge product and service content, but you may also find that they are too decentralized, which also gives birth to some aggregation applications, such as transaction aggregation, financial strategy agent, asset list and so on.
The revenue sources of defi mainly include the following directions:
1. Gain gains from currency price fluctuations from transactions
2. Interest income from deposit and loan of mortgaged assets
3. Provide liquidity mining for DEX to obtain income
4. Financial strategy (yield 2arming)
5. Other unexpected wealth (lottery, auction, Ido, etc.)
These benefits do not occur alone. You can use a base currency to obtain all the above benefits, that is, the benefits can be superimposed and amplified, but the risks will also be superimposed!
If you have the belief of long BTC, long Eth and long def, you can adopt this operation mode of revenue superposition:
1. Mortgage wbtc or eth in Oasis and lend Dai (0 interest rate)
2. At zapper Fi's investment observation liquidity mining income ranking
3. Choose a financial strategy and exchange Dai for corresponding tokens for betting
The above operations can enable you to enjoy financial benefits when your local currency (BTC, ETH) is fixed. When it comes to the application types of defi, such as stable currency, deposit and loan, liquidity mining, aggregation tools, you can basically understand how to play defi after one operation.
Participating in defi is to use various ecological applications. The following describes in detail the ways of wallet, exchange, deposit and loan, mining and data viewing.
First of all, we need to understand the stable currency when participating in defi. The first well-known stable currency is usdt. In the field of defi, the stable currency is divided into three categories:
1. Stable currency against "equivalent" US dollar reserves:
Usdt, usdc, tusd, etc
2. Stable currency forged by digital currency asset mortgage:
Dai, SUSD, etc
The credit assets behind these stable currencies are different. Usdt and other institutions rely on teher's credit and have audit risks. Dai and SUSD are issued by users themselves by pledging digital assets. The risk is mainly the change of collateral price. Therefore, the mortgage rate should not be too close to the clearing line.
Usdt and other stable currencies are mainly exchanged through OTC channels, and Dai and other stable currencies are mainly forged through users' personal mortgage digital assets (at present, many 0 interest rate mortgages).
We used to participate in some stable currency financial management. At present, there are many financial products of defi, and the annualized income is more than 15%. Therefore, casting Dai by mortgage is a stable arbitrage mode, which can make the cash holding profit superimposed.
If you feel that the application of defi is troublesome, you can directly mortgage eth into Dai, and then transfer the Dai to the exchange to participate in 16% annual financial management. It is the most stupid and easy way to get started.
All applications participating in defi need to use digital wallet, which is the most basic blockchain application. You must master the use before you can carry out other businesses.
Using digital wallet is to be responsible for your own assets, and all assets are under your own control. There are also risks, mainly the loss of personal property caused by the loss of private key. Therefore, be sure to keep the private key. This is the only proof of possession of private property.
Actually, using digital wallet is not difficult at all. What's more, it doesn't make much difference from using Alipay and WeChat. Hundreds of thousands of digital wallets are as secure and even safer as Alipay packs.
Mobile end users can install imtoken wallet, and users transferred from EOS can use meet One or MyKey, PC users use the Chrome browser to install the metamask plug-in wallet.
imtoken： https://token.im
meet. one： https://meet.one
mykey： https://mykey.org
metamask： https://metamask.io
There are a lot of specific wallets. You can search them. There is not much difference between using digital wallets and Alipay.
After setting up your wallet, you can withdraw money at the exchange. First use a small amount of money to verify whether the wallet address is correct, and add the coin withdrawal address to the white list to facilitate coin withdrawal in the future. Then withdraw the rest of the assets into the personal wallet.
Three trading methods are recommended here: 1inch, uniswap and curve.
1inch is a transaction aggregation application, which can automatically match the optimal transaction path for users and execute it with one click.
The following is the 1 inch transaction page. The input window above means to buy the right token with the left token. In short, it is a transaction pair. Enter the amount of functional currency used on the left, and the system will automatically calculate the number of target tokens that can be exchanged and the suggested transaction path. Click swap now to trade directly (there is also an unlock process in local currency for the first time. The handling fee is low. You can unlock it directly).
The lower part of the page is the strategy comparison given by the system. The first is the optimized transaction, which is mainly for users' reference.
Uniswap is the most popular DEX at present. The transaction interface is very friendly and the experience is first-class. Joining the flow pool of uniswap can obtain transaction handling fee dividends.
In the following transaction page, the upper part is the transaction functional currency and the lower part is the token to be purchased. The top is sold and the bottom is bought. The meaning in the screenshot is to sell eth / Dai trading pairs.
Price impact: the transaction slip point (the proportion lost). If the slip point is too large, consider suspending the transaction. Go to 1inch to see if there is a more optimized path.
Liquidity provider fee: transaction handling fee, which is 0.3% of the functional currency of a transaction.
Uniswap also has a great ability to mine liquidity. It can pay dividends on the handling fees of corresponding transaction pairs by mortgaging transaction pairs to the liquidity pool. Some tokens have additional mortgage incentives.
Also in the transaction DAPP, click the fund pool, select the corresponding transaction pair to be mortgaged, and directly supply.
Curve is a large stable currency exchange platform with high depth and low slip point. If there is a demand for mutual exchange of stable currencies, it can be used. At the same time, the flow pool of curve can be mortgaged to earn mining income, and it is also the main concentration of defi financial management.
In the transaction page, the left side is the currency to be exchanged and the right side is the currency to be exchanged. After selecting the direct selection box, the system will give the exchange rate (there is also an exchange rate difference between stable currencies).
Including fees: transaction fees.
Trade routed through: SUSD, indicating that intermediate currency conversion is required.
Many applications of defi are contract calling contracts, and sometimes multiple contract conversions may be carried out, which means that there is an intermediate conversion risk, and the superposition of contracts will also amplify the risk. The significance of listing intermediate conversion currencies here is to let users know what intermediate risks there are.
Max slippage: indicates the maximum sliding point ratio (loss ratio) acceptable to the user.
As mentioned above, the interface used in the app is basically the same as that on the web, and there is no difference in the process. You can directly access the DAPP address in the imtoken wallet.
