Decentralized Finance (DeFi) and Blockchain

DeFi derivatives offer a way for investors to capitalize on cryptocurrency’s volatility. Image: Quoteinspector

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A DeFi app is an arrangement of smart contracts, executing a pre-defined business logic in a transparent and deterministic permissionless blockchain ecosystem

Decentralized financial applications, popularly known as ‘DeFi’, are a new type of open financial applications deployed on publicly accessible, permissionless blockchains. A rapid surge in the popularity of these applications saw the total value of the assets locked in DeFi applications (TVL) grow from $675mn at the outset of 2020 to an excess of $40bn towards the end of the first quarter of 2021.

Permissionless Blockchain Technology and Decentralized Finance 

The commercial applications of smart contract technology have led scholars to examine its suitability for financial service activities like

  1. the settlement and clearing of ‘tokenized’ assets
  2. the execution and compilation of financial contracts 
  3. the complexities in supply chain logistics and beyond. 

A blockchain is a type of distributed database architecture in which a decentralized network of stakeholders maintains a singleton state machine. Transactions in the database represent state transitions disseminated amongst network participants in ‘blocks’ of data.The correct order of the blocks containing the chronological overview of transactions in the database is maintained with the use of cryptographic primitives, by which all stakeholders can manually verify the succession of blocks. 

A network consensus protocol defines the rules for what constitutes a legitimate transaction in the distributed database. In most cases, consensus protocols are rigorous game-theoretical mechanisms in which network participants are economically incentivized to promote network security through rewards and penalties for benevolent or malicious behavior. 

There are typically two types of blockchains:

  1. Permissionless blockchains, which are open environments accessible by all
  2. Permissioned blockchains, which are inaccessible to external parties not recognized by a system administrator.

Recent implementations of the technology introduce a virtual machine, the state of which is maintained by the nodes supporting the network. The virtual machine is a simple stack-based architecture, in which network participants can execute metered computations denominated in the native currency format.

Because all ‘nodes’ running the blockchain ‘client’ software must replicate the computations required for a program to run, computational expenditures are priced on the open market. This design choice is intended to mitigate excessive use of resources leading to network congestion or abuse.

Network participants pass instructions to the virtual machine in a higher-level programming language, the most recent generations of which is used to write programs, referred to as smart contracts. Because operations in the virtual machine are executed in a shared state, smart contracts are both transparent and stateful, meaning that any application deployed as a smart contract executes deterministically. This ensures that once a smart contract is deployed, it will execute exactly as instructed.

DeFi Agent Taxonomy

A ‘DeFi application’ is an arrangement of consumer-facing smart contracts, executing a pre-defined business logic within the transparent and deterministic computational environment afforded by a permissionless blockchain technology.

Blockchain technology is the core infrastructure layer (see Figure 1) storing transactions securely and providing game-theoretic consensus by issuing a native asset. As a basic financial function, standardized smart contracts are used to create base assets in the asset layer. These assets are used as the basis for more complex financial instruments in the application layer.

In the application layer, DeFi applications are deployed as sophisticated smart contracts and thus execute a given business logic deterministically. Contemporary DeFi applications provide a range of financial services within trading, lending, derivatives, asset management and insurance services. Aggregators source services from multiple applications, largely to provide the best rates across the ecosystem. Finally, user friendly front-ends combine the applications and build a service similar to today’s banking apps. In contrast to traditional banking services, in a blockchain-based technology stack, users interact directly with the application independent of any intermediary service provider.

Figure 1. DeFi applications on permisionless blockchain

The metered pricing of computational resources on permissionless blockchains means that DeFi applications are constrained by the computational resources they can use. Application designers seek to mitigate the need for the most expensive operations, such as storing extensive amounts of data or conducting sophisticated calculations, in the effort of reducing the level of complexity required to execute the service that their application provides. Because the resources required for interacting with a smart contract are paid by the user, DeFi application designers employ an innovative combination of algorithmic financial engineering and game theory to ensure that all stakeholders of their application are sufficiently compensated and incentivized.

In Table 1, we introduce a taxonomy for the different types of agents and their roles in contemporary DeFi applications. We highlight the incentives for participation and key risks associated with each role.

Owing to the original open-source ethos of blockchain technology, application designers are required to be transparent and build ‘open’ and accessible applications, in which users can take ownership and participate in decision-making processes, primarily concerning new features or changes to the applications. As a reaction to these demands, application designers often issue and distribute the so-called governance tokens.

Governance tokens are fungible units held by users, which allocate voting power in majority voting-schemes. Much like traditional equities, governance tokens trade on secondary markets which introduces the opportunity for capital formation for early stakeholders and application designers of successful applications. By distributing governance tokens, application designers seek to disseminate value to community members while retaining enough capital to scale development of the application by selling inventory over multiple years.

The generalized agent classification demonstrated in Table 1 is applicable to a wide area of DeFi applications providing peer-to-peer financial services on blockchain technology including, trading, lending, derivatives and asset management.

Popular DeFi Application Categories

The development principles presented above have been implemented in a number of live applications to date.

  1. Decentralized Exchanges and Automated Market Makers 
  2. Peer-to-Peer Lending and Algorithmic Money Markets
  3. Derivatives 
  4. Automated Asset Management

Identifying and Managing Risk in Decentralized Finance

Some of the risk factors which are likely to introduce new complexities for stakeholders involved with DeFi applications are – 

  1. Software Integrity and Security
  2. Transaction Costs and Network Congestion
  3. Participation in Decentralized Governance
  4. Application Interoperability and Systemic Risk

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Opulous, TrustSwap bring Music NFTs and DeFi loans

Opulous is set to collaborate with TrustSwap for their upcoming ASA $OPUL token offering on June 30th 2021 starting at 9:00 AM PST.

OPULOUS is the world’s first platform bringing Decentralized Finance to the music industry. The project will provide a launchpad for the first copyright-backed Music NFTs, as well as DeFi loans that would change the way artists access funding.

The platform will offer users the option of choosing Ethereum or Algorand as a blockchain for their tokens. In conjunction with Algorand, Opulous is building a bridge that will facilitate transfers between the two blockchains.

Meanwhile, partnerships and agreements are being established with major exchanges to support their multichain ETH/ASA $OPUL token. Users will be able to deposit ETH tokens, then withdraw ASA tokens, and vice versa.

Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

The Opulous platform has three main functions:

  • NFT Launchpad
  • NFT Exchange
  • DeFi Loans

Opulous Music NFTs are a new form of Non-Fungible Token that entitles holders to a share of a song’s future royalty earnings, and other exclusive rewards, in exchange for social media support.

Opulous peer-to-peer DeFi loans cut out traditional banks, middle-men, and major labels, allowing artists to access up-front cash based on the predictable royalties they generate over 12 months.

The Opulous Ecosystem

NFT Launchpad

Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

Opulous is the first platform to launch copyright-backed Music NFTs. Unlike other NFTs, Opulous tokens offer holders a share in the music’s future royalty earnings alongside exclusive rewards and fan experiences.

Whoever owns these groundbreaking NFTs will get paid every time the song is played on Spotify and other major music services. That also means their value can increase as an artist’s career progresses.

Fans and investors will not only receive royalty payments, but also be able to unlock other exclusive rewards such as backstage passes, gig tickets, and merchandise, simply by sharing the music on social media.

NFT owners can also track and withdraw their earnings directly from their Opulous account and trade their NFTs on the upcoming Opulous NFT Exchange.

NFT Exchange

The Opulous NFT Exchange creates a new sharing economy based on music where anyone can buy and trade copyright-backed Music NFTs to earn a share of the royalties generated.

For example, a music fan could find an underrated song they know is going to become more popular over time.

They can buy it as an Opulous NFT, support an upcoming artist right from the start of their career and earn ever-increasing rewards as the track becomes more valuable while gaining popularity.

DeFi Loans

Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

Opulous offers low-risk DeFi loans backed by real-world music assets and future royalties.

Despite earning a stable royalty income, too many artists are turned away by traditional banks or forced into unfair deals with major labels.

By evaluating an artist’s royalty reports from previous years, Opulous can accurately predict how much money the artist will generate over the next 12 months and offer this amount as a loan.

On the other side, investors can stake their crypto assets on the platform to generate high returns. Unlike most DeFi platforms, Opulous loans are always backed by predictable music assets vetted by the expert team, which greatly reduces risk on investment. In order to avoid loan defaults, Opulous will hold the copyrights used as collateral until the full amount is paid back.

Token Economy

Transactions within Opulous will use the platform’s native $OPUL token, which has a fixed supply and can be purchased through multiple decentralized and centralized exchanges. Users will also be able to purchase NFTs directly using credit or debit cards.

Users can stake $OPUL tokens in high-interest lending pools. Token holders will also receive special discounts on certain transactions as well as exclusive access to NFT drops from major artists.

Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

Opulous Team and Advisors

Opulous has attracted a senior team and board of expert advisors from across the music and crypto worlds.

Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans
Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

Opulous(OPUL) Token Offering Details

Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans
Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans
Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

$OPUL – Secure Launch Process

To guarantee a smooth and secure launch, Opulous has agreed to:

  1. Have their domain fully SSL certified one week prior to the presale date.
  2. Have their domain protected by Cloudflare and share proof with TrustSwap one week prior to the presale date.
  3. Disclose the vesting schedule of all tokens, including team, strategic investors, private presale, influencers, etc.
  4. Add no less than $200,000 liquidity on DEX immediately upon listing.
  5. Distribute tokens to launchpad participants within one hour of DEX listing using multisend.io.
  6. Lock liquidity within 3 hours of listing for no less than 60 days at http://team.finance/.
  7. Provide the timeline for token distributions, and distribute tokens within a one hour window of the agreed upon time.
  8. Have at least one community moderator on each social platform (Discord, Telegram, etc.) actively available 24 hours a day for the first 7 days following the launch on DEX.

OPUL tokens – Participation and Allocation 

Anyone can apply to participate in the $OPUL token offering as long as they’re eligible in their given territory, including those outside the TrustSwap ecosystem. However, application does not guarantee an allocation.

If the $OPUL token offering is over-subscribed priority will be given to the TrustSwap community as follows:

  • Anyone with over 4,000 SWAP staked or a SwapScore over 2500 when the launch begins (Snapshot is at 9 AM PST on June 30th, 2021) will be given a guaranteed allocation based on the tiers in the table below.
Opulous OPUL TrustSwap Rand Labs R3 DITTO ALGORAND SOMESING BASIC TRUSTVERSE MUSIC NFT Music DeFi Loans

Step-By-Step Guide

1. Between 9 am PST of June 30th, 2021 and 9 am PST of July 1st, go to https://dashboard.trustswap.org/app/launchpads

2. Complete the necessary steps and verify your identity.

3. The portal will close once 24 hours have elapsed. There will be a waiting period of up to 48 hours as the Opulous team finalizes internal processes.

4. If your application is successful, you will receive an email indicating how much you are able to contribute to the token offering. You will have 24 hours to send the funds or your position will be given to the others.

What Should I Do to Prepare for the Opulous ($OPUL) token Offering?

Based on the requirements set for a guaranteed allocation, stake your $SWAP tokens here before the deadline mentioned above.

Take a photo of your government issued ID card (Passport, Drivers License, or any other form of government issued ID card that has your photo in it).

Take a selfie of yourself holding the ID card along with a note that reads: “Opulous 30th June 2021”.

Submit your details and documents at any point during the 24 hours window at https://launchpad.trustswap.org/.

Where Can I Learn More About Opulous (OPUL)?

Website: https://opulous.org/

Medium: https://opulous.medium.com/

Telegram : https://t.me/opulousapp

Twitter: https://twitter.com/opulousapp

Reddit: https://reddit.com/r/opulous

Who Can Participate in Opulous token sale?

Anyone not domiciled in the USA or UN sanctioned countries can participate in the Opulous token sale.

*The eligible countries list is selected by Opulous . If your country is not listed, this does not mean you are ineligible for future TrustSwap Launchpad projects.

** Launchpad dates are subject to change. This is not an endorsement, partnership or an offer for investment by TrustSwap. Opulous is using the TrustSwap Launchpad as a customer, with specific requests as to how they need their launch to operate. TrustSwap is a provider of non-custodial, smart-contract-based software services. Digital assets carry a high level of risk. Participation is performed at your own risk. Exercise caution and conduct your own due diligence.

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Trustswap SaveTheWorld

TrustSwap and SaveTheWorld Partner to boost Donations for Eden Reforestation Project

Cryptocurrencies are often blamed for significant environmental damage, no matter the progress already being made in that sphere. Making the world a greener place hasn’t been a once-in-a-while shot for TrustSwap but rather a continuous, evergreen effort. Our partnership with the Eden Reforestation Project has been one of the ways to support this cause.

Eden Reforestation Projects is a 501(c)3 non-profit organization that began operations in 2005 with a simple mission: Plant Trees. Save Lives.

Eden has developed an efficient model for reforestation with nurseries set up in Madagascar, Haiti, Nepal, Indonesia, Mozambique, Kenya, Nicaragua, and Honduras and planted more than 500 million trees across its project nations with approximately 20 million trees added each month!

They achieve this by using the contributions received to open nurseries in deforested regions and pay impoverished communities a living wage to plant seedlings of native trees and nurse them to maturity (~10 years). This synergistic cycle helps nurture and revive both the forests and the communities that depend on them.

Today we are delighted to announce a new level of support for Eden. Every month, the SaveTheWorld project will host a charity livestream for Eden and donate BNB on behalf of TrustSwap to the Eden Reforestation Project. With a cost of only ten cents per tree, we are assuring an on-going endeavor to continually plant trees and raise them to full maturity while also employing people in developing areas. The deal is being inked for the next twelve months and we can’t wait to report the number of trees planted by this time next year!

Click here to watch Jeff’s interview with the SaveTheWorld team and the first donation of 6 BNB

SaveTheWorld ($SAVE) is a hyper-deflationary charity token that allows for frictionless rewards while taxing and generating fees per transaction. For each transaction, a 10% tax is charged. 2% will be distributed amongst SaveTheWorld token holders providing frictionless yield rewards and the remaining 8% goes to liquidity.

50% of liquidity generated will be removed each day with 100% of the $BNB going to charity and 100% of the $SAVE tokens burned forever. SaveTheWorld is using a Gnosis Multi-Signature Wallet to handle the donations in a transparent way.

Please read more about Eden Reforestation Project and learn how you can get involved or donate directly at: https://edenprojects.org/.

To know more about the SaveTheWorld charity initiative powered by the $SAVE token, visit savetheworld.health.

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