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Golden Observation丨Who can stand out on the decentralized lending track?



Jinse Finance Blockchain, April 17th It has been nearly a year since the "DeFi boom" last summer, but the pace of continuous innovation in this field has not stopped. Now there are many new decentralized financial lending protocols appearing, Both try to provide more competitive prices for loan providers and loan recipients. In this market environment, the total locked-up volume of decentralized lending continues to rise and is currently close to 2.8 billion US dollars. Undoubtedly, this achievement in opening up financial markets is extremely encouraging. In the rapidly developing decentralized financial industry, you will notice that there are two words that appear frequently - "Yield Farming" and "Liquidity Mining", these are profitable activity. Since the lending platforms Compound and Aave launched their governance tokens last June, individual users can maximize their substantial returns by strategically moving funds between various DeFi protocols. Based on these innovative profit models, the flywheel of decentralized finance begins to rotate: early adopters can exchange for generous returns as long as they provide the required liquidity to the decentralized financial agreement. Difficulties faced by the decentralized finance industry In the traditional banking system, loans are generally based on customer "credit worthiness", such as credit scoring and other "know your customer" (KYC) compliance methods, while most Decentralized financial lending platforms will match depositors who usually want to lend their funds at low-risk interest rates, but are often required to over-collateralize to get loan funds. That is, the value of the collateral provided by the borrower must be more than the value of the cryptocurrency loaned, usually 2-3 times. Based on this over-collateralized guarantee, even if there is no trust in each other, or the borrower and the lender do not know each other at all, they can lend or borrow funds with confidence. Jinse Finance Quotes Report | BTC rebounded in shock, and the overall situation remained stable: According to the Huobi market, the BTC market rose slightly after falling by 9278.19 USDT today, reaching a peak of 9451.90 USDT in the afternoon, and the local market fluctuated around 9420 USDT. From the daily chart, the recent market continues to fluctuate, maintaining a box pattern, and the shock range is in the range of 9500-9200USDT. And the long-term shocks make the moving averages gather together, and the local market has a slight advantage for the bulls. In the 4-hour chart, the bulls counterattacked after rising through the third line in the morning. After closing up three K-lines in a row, there is a need for adjustment. As of 18:30, the specific performance of the mainstream coins on the Huobi platform is as follows. [2020/6/22] But even if decentralized financial transactions are convenient and can obtain more reliable and profitable financial returns, why has decentralized finance not yet become mainstream? After reading the three reasons listed below, I believe the answer has come out. First, there is the variable interest rate, and the returns of decentralized financial lending protocols can sometimes vary widely. This is primarily due to the volatility of the underlying collateral, which affects the "utilization rate" and yield generated. For investors, this complicates long-term financial planning and indirectly exposes them to volatility in the broader cryptocurrency market. Secondly, there is a high gas fee. The congestion of the Ethereum blockchain network has caused the gas price to reach a new peak. Because many users do not want to pay such a high fee, no one uses decentralized applications. Admittedly, the higher cost is enough to deter people from trying decentralized finance. Finally, there are barriers to entry. For people who have never used cryptocurrencies, lending platforms such as Compound and Aave are actually not "friendly". In addition to clumsy technology (complex browser wallets, unintuitive UX, etc.), If you are a "crypto white" is likely to have distrust of this decentralized financial agreement, especially in the case of lack of understanding of the cryptocurrency industry. Countdown to BTC Halving|Jin Finance Mining Earnings Broadcast: Jin Jin Finance reported that according to data from the OKEx mining pool, the next BTC halving date is expected to be May 13, 2020, and today is 15 days away. The current block height of BTC is 627784, and the next block height will be halved to 630000. Today, the computing power of the entire network is about 111.36EH/s, the difficulty of the entire network is about 15.96T, and the next difficulty is predicted to be 16.55T (3.73%). There are still 8 days left before the adjustment. Today’s BTC income: 0.00001576BTC/T/day. [2020/4/27] Does the encryption industry need high-yield projects? Terra, the fifth largest stablecoin, is the only blockchain of the stablecoin TerraUSD (UST) protocol, which is linked to legal tender and is relatively well-known in the industry. Earlier this year, Terraform Labs also received a $25 million round of funding from Pantera Capital. Terra has built a rich application ecosystem, including Mirror Protocol, a synthetic asset protocol, and Chai, a Korean payment application with more than 2 million users. And just last month, a new project was launched on the Terra blockchain: Anchor, an easy-to-use savings platform that is likely to become a "game changer" in the field of decentralized finance. Anchor is more attractive than other decentralized financial agreements that can bring high returns to users, because it promises to provide savings products with an annualized rate of return of up to 20%. So how did Anchor manage to generate such high yields? Exclusive | Jinse Finance Mining Earnings Report on February 10: Jinse Finance reported that according to the data of Coinin Pool, the daily income of mainstream currency mining is: BTC (¥1.16/T), ZEC (¥0.35/T), LTC (¥22.04/G), BSV (¥1.10/T), BCH (¥1.15/T), DASH (¥0.18/G). The current popular mining machine data and net income are: Avalon A1066 (BTC, ¥28.85), Innosilicon A9+ (ZEC, ¥27.33), Innosilicon A4+ (LTC, ¥6.82). [2020/2/10] In fact, the "secret" of Anchor lies in its unique loan collateral method. At a higher level, Anchor is very similar to Compound, like a decentralized currency market. But the difference is that Anchor only accepts liquid collateralized derivatives provided by supply-side borrowers as collateral. Liquid pledged derivatives are tokenized claims on the cash flow of bond pledge positions on mainstream proof-of-stake blockchains, including Ethereum, Polkadot, Cosmos, Solana, etc. The pledged derivatives on Anchor are It is called bAssets, and bLUNA is the primary derivative of LUNA, the original asset of Terra blockchain. The borrower's pledge income will be "passed on" to the depositor. In addition, since the loan requires over-collateralization, the pledge return will be further amplified. All these income will be distributed between the borrower and the lender, resulting in a relatively high rate of return. Jinse Finance live report Wang Peng, founder and CEO of Deep Chain Finance: Only hard work and stupid work can make a good block chain media: Jinse Finance live report, at the 2018 Global Blockchain Elite Summit, carried out "From the perspective of the media" In the roundtable discussion titled "Development Trends of the Blockchain Industry", Wang Peng, the founder and CEO of Deep Chain Finance, pointed out that in the early stage of the blockchain industry, practitioners have different qualities, and many people are trying to participate after waiting and watching , They think that they can get benefits by combining the original project with blockchain technology, and we have also seen the myth of getting rich overnight. In the blockchain industry, we have to pay attention to various industries every day. In essence, the blockchain media is playing the role of a communicator. To be a good media, we must work hard and stupidly. This industry can trade without sleep, I hope the industry can have a little restraint, so that the media can also take a break. [2018/4/28] The consensus reached on most major proof-of-stake (PoS) blockchains is based on two aspects: native token supply release (i.e. network inflation), cross-network transaction fees (will distributed to stakers as rewards for securing the network). Since pledged derivatives will not be restricted by short-term debt cycles and speculative investment in the encrypted market, compared with the frequent fluctuations in the yields of other decentralized financial agreements (especially the currency market), the yield fluctuations are extremely low, almost equivalent to in fixed income. Pledged derivatives allow Anchor to adjust deposit rates on the demand side while ensuring that deposit rates are stable and not affected by speculative demand cycles. The rate of return of some decentralized financial agreements will drop sharply due to the sharp drop in the price of pledged tokens. After all, investors are unlikely to require lenders to use margin transactions to obtain greater returns. Golden Finance News: At about 21:50 on November 7, the official announcement of the parity client wallet stated that a serious loophole was found, which will affect users who deposited ETH after July 20 and cannot transfer assets out. Affected by this news, the price of ETH has dropped by about 5%, and the latest price of Huobi Pro is 1946 yuan. [2017/11/8] In fact, most "TradFi" interest rates are related to the federal funds rate, because the interest rate is derived from the federal funds rate, and the Anchor rate can be regarded as a decentralized federal funds rate The Funds Rate (DFR), which is equivalent to the decentralized financial benchmark interest rate. As an unleveraged source of income, Anchor's annualized rate of return of up to 20% can be used as one of the basic elements of the emerging return curve of decentralized finance. The 20% "Anchor Rate" is set at the beginning, but it can be adjusted later with the Anchor governance system. Because the ratio of lenders and borrowers usually changes, this rate sometimes fluctuates slightly, and the incentive mechanism for borrowers in ANC tokens will also be adjusted according to actual borrowing needs. So far, though, Anchor's stabilization mechanism has managed to keep yields at that 20% level. Who can stand out on the decentralized lending track? Although financial products are emerging in an endless stream, as far as the current situation is concerned, the decentralized financial industry has not yet launched a savings product that is simple and safe enough to gain public recognition. The goal of Anchor is different from that of most decentralized lending service providers. They do not seek arbitrageurs and traders who maximize their returns, but hope to focus on providing savings account services and become gold for passive income on the blockchain. standard. As a decentralized savings agreement, Anchor plans to increase the annualized rate of return of UST depositors to about 20%, which is compared to the 0.07% annualized rate of return of traditional bank savings accounts. The benefits provided by Anchor are ordinary bank savings accounts More than 200 times the deposit interest. Anchor offers unbelievably high returns on this low-risk fixed-income financial instrument. If the annualized rate of return can be sustained and stabilized around the level of 20%, then saving on Anchor must be very attractive to individuals and capital allocators. You must know that the competition in the cryptocurrency front-end application industry is extremely fierce. Anchor, which can provide a fixed annualized rate of return of up to 20%, obviously has an advantage over other similar protocols, and its income will basically not be affected by changes in cryptocurrency prices. Therefore, it quickly attracted a large number of users. At least until the next bear market comes, Anchor is still very competitive in the market. So besides that, what makes Anchor different? The first is its ease of use. As long as the web application is connected to the Terra wallet, users can deposit, borrow, vote and pledge, and the entire operation interface layout is clean and intuitive. Anchor's application programming interface can be easily integrated into financial technology platforms, neobanks, cryptocurrency exchanges, and digital wallets. In terms of financial technology compatibility positioning, the Anchor team's positioning is to be "Stripe in the field of encrypted savings". Of course, for those who are accustomed to using centralized financial applications, it may still be a little uncomfortable, but after all, Anchor has taken a very meaningful step in the right direction. The second is an independent blockchain. Anchor is built on the Terra blockchain, which is part of the Cosmos ecosystem. Although choosing the Terra blockchain may limit interoperability with applications on Ethereum, it can significantly reduce fees, while Brings greater flexibility to the protocol. Although not choosing the Ethereum blockchain may cause some obstacles in terms of popularization and application, these are short-term problems. It is worth mentioning that Terra Bridge has been launched as a cross-chain bridge solution from the Terra blockchain to the Ethereum blockchain and the Binance chain. Terra assets can be easily transferred between different blockchains at low cost. Transfer, all these operations can be done in one interface. About how to use Anchor, you can find related videos on YouTube, all of which can be mastered in less than 30 minutes. Even if you don't have a Terra wallet or any UST yet, just watch this video and study carefully, and you will soon have the opportunity to get a high return of 20% annualized rate of return. Once you're set up, you can use Anchor in a variety of ways. You can choose to deposit UST to get a 20% annualized rate of return, or you can borrow funds and get incentives higher than interest (the annual net loan interest rate is currently about 110%, and the reward will be distributed in the form of ANC tokens), of course You can purchase the Anchor governance token ANC, and benefit from the daily use of the platform, earn pledge rewards, and participate in the future development of the protocol. The remaining income from the supply side (borrowers) will be used to purchase ANC tokens in the open market and distribute the proceeds to ANC token holders, thereby linearly adjusting the price of ANC tokens according to the asset management scale of the agreement. It has to be said that Anchor has become an indispensable part of the open financial ecosystem and has been recognized by more and more people. Just two weeks after the launch of the Anchor protocol, more than 160 million US dollars in deposits and 110 million US dollars in loans have been obtained, which fully demonstrates that the 20% annualized rate of return is indeed very attractive, and the blockchain is very important for "savings as a service" The demand for the product is really high.


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