Author: misamaliraza94
-
Developers are the new Masters of Universe
Flash Loans have emerged as the existing approaches within TradFi have blended with the technical realities of DEFI. Decentralised Finance has grown so fast because of the composable nature of the Ethereum ecosystem, within which it exists. Composability is the ability of different components to seamlessly integrate; DEFI is often described as financial lego. Applications…
-
Time is Money
Michael Lewis is one of the greatest financial journalists of the last 30 years, most celebrated for his book ‘The Big Short’ about the build-up to the 2008 financial crisis, later made into a film with Brad Pitt and Christian Bale. He followed up on that success with another equally important book in 2014, Flash…
-
What is a flash loan?
A flash loan is a way to borrow crypto funds from a lending pool without the need for collateral, provided the liquidity is returned before the underlying chain confirms transactions in the next block. Flash Loans are therefore a form of unsecured loan used to fund complex chains of instant, programmed trades exploiting arbitrage within…
-
Popular DEXs for Liquidity Providers
There are a great many DEXs that utilise the AMM type protocol to create liquidity pools, which you can become a liquidity provider for. Here is a sample list of some DEXs and a brief explanation of their unique features. 1. Uniswap Uniswap is one of the oldest DEXs around, and one of the first…
-
How LP tokens work
So if you were to contribute liquidity (in the shape of assets) to liquidity pools on these DEXs, you would be issued LP tokens. These tokens track your individual contributions to the overall liquidity pool and correspond in direct proportion to your share of liquidity in the overall pool. The value of 1 LP token…
-
What are Liquidity Provider tokens or LP Tokens?
When people provide liquidity on decentralised exchanges or DEXs that operate on the automated market maker (AMM) protocols, they are usually issued separate tokens that represent their share of liquidity on the liquidity pools. These are called liquidity provider tokens or liquidity pool tokens, abbreviated as LP tokens. Uniswap and SushiSwap are major DEXs on…
-
Is it safe to make money from becoming a Liquidity Provider?
The short answer is yes, you can reliably make money from becoming a liquidity provider by earning a portion of the trading fees imposed by the DEX on traders. Bear in mind, however, that this all comes with its own caveats and risks you must understand. We’ll briefly cover some of the risks of becoming…
-
Liquidity Provider in Cryptocurrency?
Liquidity Providers are how decentralised exchanges or DEXs allow people to trade without an intermediary. Instead of having a large central entity providing all of the digital assets for trading, DEXs rely on individuals and institutions to provide their own cryptocurrencies to a common pool, with which others may trade. These providers are called Liquidity…
-
What to look for when choosing a crypto staking platform
When choosing a crypto staking platform, it is important to understand what your needs are as a user. Obviously, the amount of yield you can earn from staking will be an important part of the overall selection criteria but there are other factors to consider as well. For example, all of the sites covered in…
-
eToro
eToro is the oldest among the options listed here as it actually started life out as a digital broker that today includes cryptocurrency markets. Because of its experience in traditional markets, it has a large user base of traders active in stocks, commodities and forex. As a cryptocurrency broker, eToro also allows for crypto staking from…