March 23, 2023
413

How to Find the Ideal Outstaffing Company in 7 Simple Steps

By opting for Outstaffing, you can enjoy several advantages, including the ability to have complete control over the software development process, enhance your business focus, and free up internal resources. Read here our advantages in providing Outstaffing services. But, assuming you’re up to speed, let’s dive a bit deeper into the world of Outstaffing and answer popular questions, as well as busting some common myths.

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Step 1.   Begin by Clearly Defining the Project's Scope

In order to ensure a smooth and productive engagement with outstaffing companies for your project, it's recommended to clearly state your requirements upfront. This will help establish a common understanding between both parties from the start. As you consider your project requirements, important factors to consider include the number of developers needed, required skills and experience, and the nature of your business. By being clear about these details, you'll be able to have a more efficient and effective conversation with outstaffing companies, leading to a successful outcome for all involved.

 

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Step 2. Explore Your Options by Reviewing Outstaffing Companies

Would it be bold of us to say that you don’t need to look any further as we are sure that Cyber Bee can fulfill all of your wildest Outstaffing dreams? But in case you want to play the field a little here is what you should do next;
You can begin by using search engines, business forums, or consulting professional platforms. Be sure to note each company's location, years in service, and areas of expertise. By compiling a list of potential partners that meet your requirements, you'll be able to make an informed decision and select the best fit for your project.

 

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Step 3.  Evaluate the Portfolio and Customer Feedback

To ensure that you engage a reliable outstaffing partner, conducting a background check should be your first step. A great resource for this is the TrustPilot.com platform, which features authentic reviews of outstaffing companies from around the world. Additionally, visiting a vendor's website can provide insights into their achievements, years in business, mission, expertise, and more. After comparing the companies you've identified, you'll be able to make an informed decision about which ones to contact. By taking these steps, you'll be able to select a trustworthy outstaffing partner and set your project up for success.

CyberBee boasts a team of experts with vast experience across multiple fields. We pride ourselves on delivering cutting-edge solutions and actionable insights that drive your success. Here is a list of our core industries:

  • Real Estate
  • Legal
  • Insurance
  • FinTech
  • Healthcare
  • Logistics and others.
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Step 4.  Arrange an interview

Consider scheduling an interview with a potential outstaffing partner as a crucial step in the process of evaluating whether they are a suitable fit for your project. To gain more insights into their development process, we recommend speaking with a technical manager during the interview. It's vital to ascertain upfront if the outstaffing company has developers with the precise expertise you need, and having experience in similar projects is a significant advantage. Gathering this information early on will enable you to make an informed decision on selecting the most suitable outstaffing partner for your requirements.

 

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Step 5.  Negotiate the Terms of Partnership

Once you've identified the developers who meet your requirements, it's essential to discuss the project's process, security, liabilities, and other legal considerations. We recommend documenting these discussions in writing to avoid any potential misunderstandings. By addressing these topics in a thorough and transparent manner, you'll be able to establish a solid foundation for your partnership and move forward confidently.

 

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Step 6.  Determine and Finalise Communication Channels

Given that outstaffing involves frequent interaction with remote team members, it's crucial to establish effective communication channels and a reliable means of monitoring development progress. Popular options for this include Slack for communication and Jira for task tracking. Additionally, as English is widely used as a universal language of communication between experts located in different countries or even continents, it's typically preferred in these scenarios. By setting up clear and efficient communication and tracking processes, you'll be able to stay on top of your project's progress and ensure that everyone is on the same page.

 

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Step 7.  Recruit and Onboard the Professionals

Once a formal outstaffing agreement has been signed, it's time to onboard new members to your development unit. We recommend giving them a warm welcome and providing them with comprehensive guidance on your project objectives and the milestones you wish to achieve. By doing so, you can set a clear path for their contributions to your company's success. With a warm and supportive onboarding experience, your new team members will be able to integrate more quickly and contribute to your project's success more effectively.

 

Why You Don’t Need to Look Further than CyberBee:

Cyber Bee is more than just a software engineering firm – we’re your trusted partner in transforming your business. From ideation to implementation, we’re with you every step of the way, providing end-to-end cooperation that ensures a seamless and transparent software delivery process.

Our proven delivery framework is built on a foundation of tested standards and best practices, guaranteeing tangible results at every stage. We believe in a dynamic and collaborative approach to software development that goes beyond mere coding. When you choose to work with us, you can expect a personalized and engaging experience that delivers transformative solutions to drive your business forward.

Experienced Professionals

We understand how challenging it can be to find the right kind of assistance. But don't worry; you've landed in the perfect spot! Our team is made up of seasoned developers with years of industry experience under their belts. When you work with us, you'll quickly see the difference that our top-tier talent can make for your project. We're here to make your life easier, and your software dreams a reality, so why wait? Let's get started today!

Progress Reporting

Effective communication is crucial; that's why we believe that scheduling frequent short meetings during the project development process is highly advantageous. This way, you'll be up-to-date on every aspect of your project. Our project tracking tools keep you informed about the progress of each component, and we can seamlessly integrate with any existing systems you might be using.

On-demand Services

We are here to support your business, whether you require assistance for short-term or long-term projects. Our team is committed to providing the best possible service and assistance, no matter what type of support you require.

Clean Code

At our Cyber Bee, we adhere to rigorous coding and documentation policies in all of our work. Our goal is to produce products that are readily comprehensible and manageable by anyone, whether they are a member of our team or not. By adopting this philosophy, we strive to empower you to maintain control over your organization by allowing you to modify the structure as necessary in-house.

Dedicated Staging Environment

To ensure that you have the ability to view changes within the appropriate context, we utilize a separate staging environment prior to implementing any modifications. Additionally, we employ version control systems to safeguard all work, enabling us to seamlessly transition between previous project iterations.

Full Cycle Support

Our team of dedicated professionals is always here to help, whether you need assistance with a short-term project or ongoing support for your business. We understand that your success is our success, which is why we prioritize your needs and make ourselves available to you whenever you need us.

So if you’re looking for a partner that will be there for you every step of the way, look no further than our company. Contact us today to learn more about how we can help you achieve your business goals.

In conclusion, outstaffing has become an increasingly popular business model in recent years due to its many benefits. By leveraging the expertise and resources of a specialized outstaffing provider, businesses can efficiently and effectively manage their workforce, reduce costs, and focus on their core competencies. Outstaffing also offers greater flexibility, scalability, and access to a larger pool of talent, which can be particularly valuable for businesses seeking to expand into new markets or industries.

Need help improving the way you deliver healthcare services?

Talk to our experts!
January 23, 2023
818

Oracles: Heroes of the Blockchain World

Managing a blockchain can be complex, especially when it comes to distinguishing between on-chain and off-chain data. Oracles are a powerful tool that can bridge the gap between the real world and blockchain transactions.

They offer a vast array of possibilities to make blockchain technology applicable to everyday life. To find out more about these fascinating systems, here is a comprehensive guide.

What is a Blockchain Oracle?

Blockchain oracles are third-party services that provide smart contracts with external information by acting as a bridge between blockchains and the outside world. Oracles are invaluable because they provide access to relevant data from outside the network, which blockchains and smart contracts cannot. This broadens the scope of what smart contracts can do, enabling more functionality and more efficient contractual agreement execution.

Smart contracts would be useless without blockchain oracles because they could only access data from within their networks.

It’s significant to recognise that a blockchain oracle is not the data source itself but rather the interface that investigates, affirms, and verifies external data sources and afterwards passes on that information. The data sent by oracles can take various structures – cost data, the productive result of an instalment, or the temperature estimated by a sensor. To get data from outside sources, a smart contract must be triggered, and network resources have to be used. Additionally, some oracles have the capability to communicate information not only to smart contracts but also to external sources.

For instance, John and Emma can use a smart contract to place a wager on the outcome of a football match. The total sum of $100 is held in escrow by the smart contract, with Emma betting $70 on team X and Jhon betting $30 on team Y. To ensure that the smart contract knows which team wins, an oracle mechanism is required to retrieve and securely deliver accurate match outcomes from off-chain sources to the blockchain.

So why are Blockchain Oracles so important?

Oracles are a critical part of most blockchain applications, as they provide a connection between the blockchain and external data sources. Without oracles, blockchains are isolated and unable to respond to external events. Therefore, it is clear to see why oracles are essential for blockchain functionality, as they enable the blockchain to interact with the outside world and be impacted by it. There are numerous use cases for blockchain oracles, making them invaluable to many blockchain systems.

Added functionality

Blockchain oracles add extra functionality to the blockchain by providing external data to enable more complex operations. This makes it possible to use blockchains for a wide range of activities such as purchasing, trading, gambling and investing, giving them greater flexibility and power. As a result, more people are turning to oracles to make the most of blockchain technology in their everyday lives.

Agile Parameters

Oracles come in a range of styles and offer an unrivalled level of flexibility. You can configure them to carry out just about any task you require, whether that be repeating an action or executing it only once. They can provide passive updates or take action in the blockchain on your behalf. This versatile nature is a major draw for oracles, as it allows them to be used in multiple scenarios and tailored to specific needs. Setting up an oracle, even for complicated tasks, is much easier compared to other blockchain tools.

Time-saver

The benefit of using oracles is that they provide automation which eliminates the need to manually initiate transactions on the blockchain. By setting up an oracle, it is possible to have a smart contract carried out in response to an external trigger. This simplifies tasks which would otherwise require constant monitoring, such as buying tokens when a crypto falls to a certain price or creating new NFTs for a game.

Problems Facing Oracles

Smart contracts are essential for a successful blockchain system, as many of them are based on data from oracles. However, this also brings with it a major issue known as The Oracle Problem, which occurs when an oracle is compromised, thus compromising the smart contract that relies on it. Since oracles are not part of the blockchain consensus, the trustless execution of smart contracts is compromised. Additionally, man-in-the-middle attacks can be used to modify or falsify data between the oracle and the contract, further increasing the risk. The Oracle Problem remains an unsolved issue, representing a challenge in designing oracles.

Another problem is that a blockchain does not typically incorporate an oracle directly. Instead, it is a third-party process that necessitates that a user collaborates with an external provider in order to be connected to the blockchain. This can result in centralisation problems as the main purpose of decentralisation is to give power to the users. As most oracles are operated by single entities, they can end up giving control to parties that may not have the user’s best interests in mind.

For instance, if Chainlink, which is the biggest provider of blockchain oracles, is acquired by a financial institution, then it could mean the user’s finances are once again being managed by a vast, bureaucratic organisation. Additionally, if a malicious oracle is given access to the crypto accounts or other assets of a user, it could lead to disastrous results. To avoid these risks, users should choose trusted oracles and use decentralised oracle providers based on blockchains.

Types of Oracles

The various types of blockchain oracles can be divided based on their function. These can range from outbound oracles to software oracles, providing many uses. It’s common for an oracle to be a combination of multiple types, so understanding the different kinds available is key to finding the best one for your needs.

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Human Oracles

Individuals with specialised knowledge in a certain area can act as oracles, researching and confirming the accuracy of info from multiple sources and then translating it into smart contracts. The use of cryptography to verify the identity of a human oracle means there is a low risk of fraudulent activity and corrupt data being supplied.

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Hardware and Software Oracles

Most crypto oracles analyse digital data, though this isn't always so. Hardware oracles provide data from the physical world, while software oracles deliver information from digital sources like websites, servers or databases. Further, hardware oracles can relay data from motion sensors and RFID sensors. Software oracles can offer real-time data like currency exchange rates, cost variations and travel info.

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Inbound and Outbound Oracles 

Inbound oracles send data from external sources to smart contracts, while outbound oracles send information from smart contracts to the outside world. For instance, an inbound oracle could provide a smart contract with the temperature sensed by a sensor. An outbound oracle can be thought of in relation to a smart lock. If funds are deposited to an address, a smart contract can send this information through an outbound oracle to open the lock.

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Centralised Oracles

Centralisation can refer to both a controlling entity and a sole source of information. In some cases, an oracle can be considered centralised if it is set up and managed by a single individual or group or if it only receives data from one source. While some level of centralisation may be necessary for certain blockchain oracles, it can be a risk, as a single incorrect piece of information or malicious actor could have a damaging impact on the entire system.

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Decentralised Oracles

Decentralising oracles can help diminish certain risks by enabling blockchain oracles to run without needing to trust that all parties are honest and legitimate. Nonetheless, setting up a decentralised oracle can be difficult. To make a completely decentralised oracle, multiple network participants are required to form a consensus before forming smart contracts and also taking advantage of multiple data sources. Consequently, a third-party blockchain may be essential for managing the oracle.

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Computation Oracles

Both an inbound and outbound aspect is present in computational oracles. These oracles take in data from the blockchain, operate on it off-chain, and then feed the result back into the blockchain. This approach offers a cost-effective way to access off-chain data solutions and reduce gas fees.

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Contract-specific Oracles

Creating multiple contract-specific oracles in order to deploy more than one smart contract is time-consuming and not recommended. It is more efficient to use a single oracle that can work with all smart contracts, as opposed to building separate ones for each one. In most cases, the use of contract-specific oracles is inconvenient and should only be done if absolutely necessary.

Oracle Usage Examples

Blockchain oracles, acting as a connection between blockchains and off-chain data, have numerous potential applications. As their use becomes more pervasive, they have the capability to revolutionise many blockchain-driven industries.

DApps

The advantages of oracles are especially evident when it comes to decentralised applications (DApps). DApps are useful tools that enable everyday users with minimal technical expertise to interact with the blockchain. They offer day-to-day services while still allowing users to maintain control of their data. Oracles have broadened the abilities of DApps far beyond what they were originally designed for, thus making it possible to utilise DApps in a much wider range of scenarios. From insurance policies to financial forecasting markets to social media, you can find DApps to suit almost any purpose.

DeFi

Oracles are essential for any serious decentralised finance (DeFi) system. The core concept of DeFi is providing financial services without allowing any single institution to control them. Blockchain oracles make it possible to use crypto for a variety of tasks, from buying a house to managing retirement. As a bridge, oracles ensure that real-world information guides smart contracts. Whenever cryptocurrency is used to receive payments, seek a loan, or for any other purpose, oracles are a critical tool.

NFTs

With the growing popularity of Non-Fungible Tokens (NFTs), there are challenges that arise when connecting them to off-chain activities. NFT enthusiasts usually leverage the blockchain for registering assets and trading them. But this could present issues when attempting to incorporate off-chain data. Take sports-themed NFTs as an example. If an individual wanted to generate a digital NBA card for players who have achieved a certain number of shots, would it have to be done manually? Oracles allow the quick creation of NFTs associated with specific events in the real world.

To Conclude

Crafting a reliable infrastructure to support communication between smart contracts and external resources is essential for the worldwide adoption of blockchain technology. Without oracles, smart contracts will lack the capacity to reach their full potential as they would only be reliant on on-chain data for operation.

Different portals are providing blockchain classes centred on oracle implementation within a decentralised system. By means of decentralised oracles, blockchain networks can effectively decrease numerous system risks and functional constraints.

Moreover, the growth of blockchain oracles can help provide users with a secure, safe, and trustless interface to develop and thrive within the decentralised economic network.

January 18, 2023
1601

What is DeFi 2.0?

The DeFi revolution has been a groundbreaking wave of blockchain-based innovation, with decentralised finance (DeFi) being one of its most influential and successful components. DeFi is an expansive array of decentralised applications that enable alternative financial services while leveraging the capabilities of blockchains and secure oracle networks like Chainlink.

By taking advantage of their permissionless composability and open-source development, DeFi protocols are continuously advancing, with the recent rise of liquidity-focused projects leading to the emergence of DeFi 2.0. 

This article looks at the DeFi 2.0 wave, a subset of protocols built on the breakthroughs of DeFi, such as yield farming and lending. It dives into the liquidity constraints that many on-chain systems with native tokens face and how the DeFi 2.0 movement is attempting to solve this issue. Moreover, it discusses the breakthroughs that led to the emergence of DeFi 2.0 and how it has become a significant and successful part of the blockchain world.

So what exactly is DeFi 2.0?

DeFi 2.0 is the second generation of decentralised finance (DeFi) and is characterised by the issuing of applications and projects based on various models of financial-based agreements. This new era of DeFi has seen rapid growth since 2021 due to its efficiency and has been revolutionised and upgraded from its predecessor, DeFi 1.0. DeFi 2.0 has seen the resolution of limitations of DeFi 1.0, making it a more comprehensive description of decentralised finance. With every new innovation in technology, the world moves into a new space, and DeFi 2.0 is no different. It provides a range of benefits and opportunities to its users, allowing for further evolution in the field of DeFi.

Significance of Defi 2.0

The introduction of DeFi 2.0 has ushered in a new era of revolutionary protocols. Aimed at resolving the restrictions of previous generations of DeFi, the second version offers innovative solutions and advances the growth of the DeFi space in the blockchain world. It provides users with new, unique mechanisms that promote financial independence.

Early DeFi projects suffered from scalability issues and an unfriendly user interface, mainly due to their Ethereum blockchain roots. These complex features made them difficult to use, especially for newcomers unfamiliar with decentralised products. Additionally, users had to contend with high gas fees and long waiting times for transactions. DeFi 2.0 is set to solve all of these problems and establish the necessary infrastructure.

Liquidity Mining

In decentralised finance, liquidity is sourced from users themselves instead of large, central entities. Suppose you are exchanging ETH for USDT on Uniswap. You choose the tokens, enter the amount, and receive USDT in exchange. But the question is: Where did the USDT come from, and where did your ETH go? The answer is a liquidity pool. This is a reserve of coins kept by a protocol that can be utilised by users to quickly swap. The liquidity is provided by other users, named liquidity providers or LPs. They are rewarded with a yield from the exchange for leaving their tokens in the pool.

 

However, this brings about a problem. The yield for LPs is highest in exchanges with the lowest liquidity in order to attract them, but then the rewards decline when liquidity is brought back to the protocol.

 

The DeFi ecosystem is highly dynamic and volatile, with platforms in a perpetual battle for user liquidity and LPs seeking better incentives for their liquidity. This can lead to inadequate token liquidity for protocols after the native token rewards have been depleted.

Scalability

Introducing DeFi 2.0 aims to address scalability issues faced by most DeFi solutions. During peak network activity, DeFi 1.0 protocols experience data congestion, leading to slower transactions and higher network fees.

Security

Security is a major issue for DeFi 1.0 projects due to frequent upgrades and modifications in the software. Even the most reputable DeFi security firms have provided outdated and inadequate information, leaving many users unaware of security risk management and effective ways to validate network security. Given the considerable amount of funds locked up in DeFi protocols, security is a critical necessity that needs to be addressed.

Centralisation

Stablecoins are generally supported by a reserve asset, such as the US Dollar. This means that, in theory, each stablecoin is backed by one dollar, and it can be redeemed at any given time – thus providing a reliable and trustworthy value. 

 

However, in order to maintain this reserve, a centralised entity is required - a 'treasury'. This raises questions about trustworthiness, as well as potential conflicts with governmental regulations and seizures. 

 

Recent headlines have shown that this can have serious consequences for stablecoins, leading to lawsuits and disputes. It is clear that the current approach to creating coins with stable value has significant drawbacks.

Oracles

The effectiveness of existing DeFi models is highly dependent on the use of external data from Oracles. As a third-party source, the accuracy of information provided by Oracles can be a determining factor for DeFi users and the protocol's success.

The unsung hero of the DeFi world: Olympus DAO

When OlympusDAO launched in 2021, its ambition was to revolutionise the DeFi space by providing a decentralised and community-driven infrastructure for finance. The project’s unique Protocol-Owned Liquidity (POL) model was lauded as a breakthrough, and its OHM token quickly skyrocketed to a market cap of $4.4B in November. This made OlympusDAO the leader of the “DeFi 2.0” movement, offering a powerful solution to the issue of sustainable liquidity for native tokens. DeFi enthusiasts were quick to recognise the potential of this game-changing project, and it has since held its position at the forefront of open finance.

Advantages of DeFi 2.0

An overview of the foundations and technologies of DeFi 2.0 reveals its necessity in today’s world. What are the value advantages of the second generation of decentralised finance for users? Here is a summary of the notable beneficial use cases of DeFi 2.0.

Smart Contract Insurance

The use of DeFi 2.0 for insurance-backed smart contracts is an interesting example. With its open-source infrastructure and focus on transparency, DeFi can be difficult for those with limited technical knowledge to assess risk and carry out due diligence. DeFi 2.0 crypto may offer solutions in the form of insurance on smart contracts, providing users with a guarantee of their deposits for a fee. Currently, these platforms are in development and need to be configured with smart contracts.

Automate Loans

The second iteration of DeFi is known to decrease the associated risks of lending activities. It also helps to reduce or even eliminate the interest payments on loans.

Liquidity Supply

DeFi 2.0 offers a cost-effective solution for executing transactions with a low gas fee and rapid processing. Additionally, it promises an efficient supply of liquidity.

Safety

Changes in price ratios can have an adverse effect on users investing in liquidity pools through liquidity mining. To mitigate the risks of impermanent loss, DeFi 2.0 protocols are developing new approaches. Users need to work with the protocol to form token pairs - where a user adds a token to the pool; the protocol adds the corresponding native token to balance the pair. Both the user and the protocol can collect fees from swaps associated with the pair. The protocol can use the generated fees to create an insurance fund to protect against impermanent loss.

Risks of DeFi 2.0

The advantages of DeFi 2.0 are numerous, but there are risks associated with the system that must be considered. These include:

  • Potentially poor user experience
  • Lack of smart contract security
  • Changing regulations
  • The possibility of impermanent loss (IL). 

Users may find themselves unable to withdraw assets if a DeFi project becomes unavailable, and smart contracts can never be 100% secure. It is important to weigh the risks and rewards of DeFi 2.0 before investing and to ensure that the protocols used are both trusted and secure. Regulations may also shift, resulting in unforeseen losses. Lastly, market volatility may lead to unexpected issues, such as temporary data loss.

Investing carries a risk. It is vital to be aware that any form of financial product can be risky. Smart contracts in the new digital asset space may also be susceptible to risk. It is recommended that investors carry out thorough research before investing in any project. Liquidity is another risk to consider. It is possible to reduce liquidity risk; however, it cannot be completely eliminated. DeFi 2.0 offers protection against risks such as impermanent loss, but miners may still be exposed to potential losses. Therefore, liquidity miners should be cautious and well-prepared.

DeFi 2.0 Protocols

OlympusDAO is a pioneering DeFi 2.0 solution designed to create a policy-governed currency system which utilizes a decentralized reserve protocol and the native OHM token. The Olympus Treasury supports a variety of assets and allows investors to purchase OHM tokens at a discounted rate in exchange for their assets. Staking the discounted OHM tokens can result in potential returns unless the token experiences any price appreciation. Olympus offers various bonds with varying ROI shares, such as those with fixed or floating interest rates, asset-backed bonds and bonds with lock-up periods. Some of these bonds include;

  • DAI Bond 
  • FRAX Bond 
  • OHM-FRAX LP bond
  • OHM-DAI LP bond

What Is Defi Staking, and How It Can Benefit You?

DeFi Staking is becoming a popular method of gaining interest on crypto investments. It involves holding digital assets in smart contracts in order to generate returns. This method has become more accessible as some providers allow users to pool their tokens, with a fee, to achieve a minimum investment amount.

Binance has enabled users to take part in a DeFi project without needing to manage private keys, resources or make trades. Lido, a DAO community, provides a liquid staking service that does not require a minimum token amount making it easier for individuals to use the tokens within the DeFi ecosystem.

By staking assets on the Ethereum, Solana, Kusuma, or Polygon blockchains, users of Lido can generate additional yield. This allows DeFi 2.0 to promote more consistent liquidity provision, while providing further incentives such as yield farming tokens for loans. Furthermore, smart contracts insurance can be used to reduce lender risks by offering deposit guarantees, whilst self-repaying loans enable the lender to use the interest earned on deposited collateral to pay off the loan.

Is DeFi 2.0 The Next Big Thing?

This new generation of DeFi is based on an open-source model that allows developers to create quickly and easily. With this, DeFi can evolve faster than traditional finance since progress doesn’t need to wait for lengthy business processes. 

DeFi 2.0 exemplifies this, and the longevity of the term is uncertain. What we can be sure of is that protocols like Olympus and Ampleforth have opened up new possibilities for the crypto industry, and these use cases will shape the future of DeFi. 

The latest iteration of decentralized finance is creating new possibilities for users to gain rewards in a more transparent manner. This is a result of DeFi 2.0 providing better user experience, increased liquidity, and faster blockchain execution systems. Thus, gas fees should become more economical as Ethereum 2.0 rolls out. Furthermore, DeFi 2.0 should increase scalability, security, and liquidity. The emergence of DAO communities operating on DeFi staking, such as Lido, may further bolster DeFi 2.0 operations. Consequently, projects like Binance Smart Chain, Ethereum 2.0, Solana, and others should be more capable of delivering these advantages to their users.

This is how DeFi 2.0 is changing the game.

December 13, 2022
786

How to Create Your First NFT Project

Have you ever wanted to create a non-fungible token (NFT)? If yes, then this guide is for you. If not, maybe it’ll make you want to create one!

What Is NFT?

NFT stands for non-fungible token. NFTs are unique digital assets that don’t share the same value as fungible tokens do. Cryptocurrencies and artworks are popular types of NFTs, but NFTs can also be music pieces, game designs, physical items and other things.

So how does an NFT piece work? Let’s consider the example of a piece of digital art as NFT.

Image source: ArtyNFT

Everything starts with the artwork. Whether it’s a physical piece, a digital one or a digital reproduction of a physical image, it is uploaded (minted) to the blockchain. A smart contract is then created, and an NFT is generated. 

That’s it! Now the token is stored in the blockchain and can be sold.

Why Create NFT Projects?

With the first NFT created in 2014, the market has exponentially grown since, reaching a total value of $4.1B in 2021 in the US alone. And it is expected to continue growing significantly by the end of the decade.

Image source: Grand View Research

Obviously, a growing market offers great opportunities for investments. Besides, the average cost of creating an NFT ranges from $70 to $150 while it can be sold for as much as millions of dollars. So the potential return on investment is just spectacular.

How to Create an NFT Project

NFT projects take some time to be created from start to finish since there are different steps you have to go through to get your first token up. Here’s a detailed guide for you on how to create your first NFT project.

Step 1: Research your audience

First, you need to figure out who will be interested in your NFT. If you’re creating a new cryptocurrency, for example, then your primary target audience is probably other people interested in cryptocurrency. 

But if you’re creating an NFT that’s relevant to art or design and has no connection to cryptocurrencies or blockchain technology at all, i.e., an NFT that represents artwork or an artist, then your primary target audience would be totally different.

Regardless of who your audience may be, you will still have to define them all the same way. In particular, look at how they interact with each other and with the world around them on a daily basis. This is more important than what types of products they buy off store shelves.

The next step is to figure out what your target audience values. Try finding answers to the following questions:

  • Do they care about art and design? 
  • Do they care about making a profit on their investments and want to make money off of selling their NFTs at some point down the line? 
  • What are the things that motivate them as people, and how can you use those motivations as an advantage?

After analyzing the above, you will get an image of your audience and will be able to create the type of NFT your audience will be interested in and market it accordingly.

Step 2: Create the content

Now you can start creating your first non-fungible token. First, think about what you would like to create. Is it a piece of art? A virtual item for a video game? A physical object like a car or book? NFTs can represent all of these things and more!

Whatever your idea is, take some time to really flesh it out — the more detailed and thought-out your project is, the better it will be received by other creators and users of the marketplace.

One great way to make your NFT project more costly on the market is to create collectibles that are only valuable if they’re rare, such as if there are only a few hundred copies out there, for example. Then those few hundred copies will be worth more than the average copy of something else with a higher print run.

Next, think of who is going to be the creator. If you plan on selling your own works, then it’s time to start working on your music, art, game design or any other type of NFT you have in mind. Remember that your NFTs have to be unique, so use original ideas only.

If you don’t have the skills, you can hire a content creator who will help you make your NFTs. There are many content creators out there — they can do anything from writing music or lyrics for songs to creating artwork for comic books and designing characters or even games. So you’ll definitely find someone to work with!

The important thing to remember is that you need to find someone who shares the same vision as you and can help make your project a reality. 

Also, the content creator will be responsible for making sure any sounds or images created during development are properly licensed for use in your project. This can get complicated, so it’s best to talk to a lawyer before signing any contracts.

In most cases, you will pay your content creator in fiat currency. But if they’re an artist, it’s not uncommon to pay them in NFT tokens instead. So you’ll also need to sign up for a cryptocurrency exchange like Binance or Coinbase to be ready to handle your payments for content creation.

Step 3: Choose a platform and enter the marketplace

Now that your digital assets are on display, it’s time to start trading them! NFT collectors will visit your page and see all of the items you have for sale. Some may want the dog tokens because they’re cute and funny; others may be looking for a dragon token because they want to own every type of NFT in existence.

So to start selling your NFTs, you first need to choose a platform and enter the marketplace. Begin with considering which digital asset exchange (DAX) will be the easiest for you to use and which has a good reputation among NFT collectors. 

For example, NFT marketplaces like OpenSea, MarketPlace and CryptoPunks are great places to sell your NFTs. These are easy to set up and use as well as are popular in the community.
Image source: NFT Tech

After you’ve decided which platform to go with, set up your profile. This is when you mint your NFTs and add metadata about your NFT and its creators (like who, what, where and when). Be sure to choose the right category for your tokens — you don’t want people searching for “dog” tokens when they could be looking for “dragon” ones. 

You can also add any additional info that would be relevant for people who want to know more about the token. This includes links to images with high-quality versions of the items so that people can have a closer look before purchasing.

Step 4: Start promoting your project

Now that you’ve made your NFT and have it live on the blockchain, it’s time to handle the promotion. There are lots of ways to promote your project, but here are some tips for getting started.

1. Promote your project on social media. Use hashtags like #crypto or #cryptocurrency to reach a wider audience. You can also collaborate with other creators who have similar projects as yours to get help spreading the word about what you’re doing. This would give you both the mutual benefit of exchanging your audiences and growing that of each of you.

2. Create a marketing plan. A marketing strategy with specific goals will help you achieve them sooner. Make sure the goals and efforts you’re going to make to reach them are

realistic, given the budget available. Don’t expect an enormous response if people don’t know about what you’re doing yet!

3. Reach out to influencers. People who have large followings on Instagram, Twitter, TikTok or YouTube and might be interested in promoting NFTs could be great partners to you. Especially, if they share similar interests and are compatible with your vision and goals.

And remember that it’s okay to reach out to those who are more experienced and successful. Of course, asking for help may be tough, but it’s an important part of growing an audience and making sure people are aware of the NFT project you’re doing.

Wrapping Up

Starting a new project in any field may seem like a challenge, but it is so fun at the same time! Now that you know how to create your NFT project, it should be easier to get started for you.

In fact, this is a great time to get involved in the NFT space. It’s constantly evolving and growing, meaning that there are plenty of opportunities for creators and entrepreneurs. 

If you have any questions about how to create your own NFT project, feel free to reach out and we’ll do our best to help you get started with NFTs.




 

 

 

 

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July 19, 2022
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What are Solidity Smart Contracts?​

Solidity Smart Contracts

The term “blockchain technology” wasn’t widely used outside of Bitcoin circles until about a decade ago, when developers started using Solidity programming to build smart contracts on the Ethereum, a decentralized layer-1 blockchain that executes and verifies peer-to-peer smart contracts.

When developers began coding Solidity smart contracts, the true potential of Web3 was revealed, leading to a universal explosion in blockchain use cases. Web3 contracts, such as Ethereum smart contracts, enable new forms of commerce and use distributed ledgers for better supply chain management, promote digital collectibles (such as NFT’s) and facilitate instantaneous and secure payment and financial transaction processing without the need for a central authority.  

This article provides a thorough introduction to the Solidity programming language as well as a deeper dive into blockchain technology topics.

Brave New World

It is becoming increasingly evident that the internet is rapidly replacing traditional methods of global communication. Web3 features decentralised banking systems, digital artwork, social media without permission, and virtual real estate, among other things.

Perhaps many of us are unhappy with the real world, and so we are searching for methods of communication on networks that cannot be governed by centralised authorities and untrustworthy intermediaries. We are transitioning from an era of centralised authority to one in which power is more widely distributed. In this digital, decentralised marketplace, participants are are able to operate freely still availing of the benefits to transparency.

The internet is developing at a breakneck speed thanks to the prospect of Web3, a new generation of the internet that will put control of the network back into the hands of individual users. Blockchain technology is the only thing that even comes close to making this possibility a reality. Let’s look into the blockchain technology and the smart contracts that have been developed using Ethereum’s Solidity platform!

Why Blockchain Technology?

Then, why is the technology behind blockchain so revolutionary? To begin, it removes the need for third parties to broker transactions, making it possible for anybody to make a transaction directly between two parties. As a corollary of this, we are able to complete tasks rapidly efficiently.

For example, if you want to transfer cryptocurrency between users, you don’t need a bank, notary, or broker to certify or authenticate the transaction. Similarly, if you want to buy something with bitcoin, you do not need an intermediary. Because each transaction is saved on the blockchain in its own block, it is incredibly difficult to falsify, alter, delete, or steal the assets involved in the transaction.

Smart contracts, which are essentially strings of code, provide all of the information required for a safe, secure, and authentic transaction between participants. But what are smart contracts exactly, and why are they so important in the Web3 world?

What is Solidity?

Once upon a time, blockchain technology use cases involved cryptocurrencies. Solidity, however, is a fresh new programming language that was developed by programmers in 2014. Solidity was created with the goal of making it simpler to create smart contracts that are both scalable and adaptable.

The Ethereum network, driven by the Ethereum Virtual Machine (EVM), is utilized for the execution of Solidity smart contracts and the insertion of these contracts to the blockchain. In order for smart contracts to be widely implemented, the Solidity programming language had to be kept as simple as reasonably possible. As a result, it would be simple for untrained coders to learn and apply.

To better mimic a real human contract transaction, Solidity also needed to be more human-like (high-level) and object-oriented (contract-oriented). The founding programmers adapted the most appropriate components of well-known programming languages to create this type of elegant language. Python, C++, and JavaScript were all included. Then they made Solidity. Instead of using ones and zeros, the Solidity programming language employs curly brackets and “if/then” statements to handle complex user inputs.

Because Solidity is both versatile and contract-oriented, it is perfect for designing smart contracts for a wide variety of decentralised applications (dapps). Depending on their complexity, developing Dapps can be challenging and time-consuming, especially for people who are new to programming.

What are Solidity Smart Contracts?

Solidity smart contracts are code strings written in the Solidity programming language. These specify the terms and conditions that all parties involved in a transaction must satisfy before the contract can be executed.

A smart contract, like a work contract, specifies the terms of engagement. However, no witness, bank, or other intermediary is required to verify the contract’s validity. Only if both parties meet all of the requirements will the smart contract execute and authenticate. The smart contract is saved in a new block once the transaction is completed. It is also stored alongside a stack of other smart contracts. This block is then added to the end of the blockchain, which is a linear chain of blocks. This new block contains information on all previously stored smart contracts. It also contains the stack of newly fulfilled smart contracts.

Each completed smart contract is assigned a public key, which is a string of randomly generated numbers that serves as its address. This is done so that anyone can verify its existence. Although the smart contract is permanently stored on the blockchain and is accessible to everyone, this does not mean that everyone can view its contents. Only the contract’s parties receive a private key, which grants them access to an unencrypted version of the smart contract.

Blockchain and Solidity Smart Contracts

When the blockchain stores the smart contract on its chain, the transaction is irreversibly confirmed. Encryption and block confirmation are crucial components of blockchain technology because they make it nearly impossible to manipulate or corrupt data. To alter a smart contract, a hacker would have to alter the code in each block. This is a challenging, if not impossible, endeavour. Because there are no middlemen engaged in the transaction process, smart contracts can execute automatically at any moment. Smart contract transactions therefore present a game-changing means for all parties to enter into agreements.

You must sign up for a Web3 wallet in order to build and execute a smart contract on a blockchain. This wallet can be used to store your coins and assets, public and private keys, and transaction-related data.

Each smart contract transaction necessitates the deposit of “gas,” also known as a “gas fee.” As a result, whenever a user interacts with an Ethereum dapp, the user must pay for the gas needed to run the Solidity smart contract. Although each user can choose how much gas to spend on each smart contract, the more currency a user reserves for a transaction, the faster it is executed and verified by miners. This is primarily because miners prefer to validate more profitable smart contracts. As a result, miners and node owners can profit by contributing to the growth of the blockchain. However, this is not always profitable because it necessitates expertise, specialised equipment, and the necessary know-how.

Use Cases for Solidity Smart Contracts

Since Solidity’s smart contract architecture is highly configurable, its utility is not limited to crypto currencies like bitcoin and ethereum. Decentralized applications (dapps) in the fields of banking, the arts, real estate, gaming, social networking, and crowdfunding are all attainable thanks to Solidity’s smart contracts. Smart contracts can be implemented in a variety of ways depending on the industry, but they all use tokens. Tokens’ values can be established in advance, as with cryptocurrencies, or they can be set by market forces, as with NFTs whose worth is tied to factors like scarcity and demand.

Decentralized Finance (DeFi)

Imagine having the ability to buy, sell, send, borrow, and invest in anything, at any time, in any part of the world, and with whomever you choose. Decentralized finance, often known as DeFi, is the future of finance, and cryptocurrencies and blockchain technology will serve as its pillars.

Art

Using blockchain technology, it is now possible to sell or trade virtually any tokenized creation. NFTs are likely the most recognisable tokens. These tokens can be pieces of art, music, film, text, or even a URL. Consider the token’s popularity, scarcity, demand, rarity, collectability, market value, etc. when determining its value. The intriguing aspect of NFTs is that the purchaser does not necessarily own the art. The buyer essentially purchases bragging rights to the original digital artwork as the sole owner, not the art itself.

Crowdfunding

Crowdfunding is one of the most neglected blockchain markets, despite being one of the most promising blockchain applications. Contributors to decentralised crowdfunding platforms can own a portion of the funded project. When people have a stake in a project, they feel a genuine sense of participation and investment in it. Due to numerous middlemen fees and stringent donation eligibility requirements, traditional crowdfunding can be time-consuming. Decentralized crowdfunding sites that use smart contracts can also function as financial instruments, as users can earn money from the projects they support.

Gaming

Gaming has emerged as one of the most interesting, popular, and lucrative integration of smart contracts. People have built entire universes (metaverses) on blockchains, where user interaction is frequently the game itself. Other NFT games, such as Axie Infinity, are “pay-to-earn” games in which users receive rewards for participating in various aspects of the game. Furthermore, there is a wide range of blockchain gaming themes. These themes range from trading card collecting to exploring far-away universes to sports games like fantasy football.

What are Solidity Smart Contracts – Summary

The Internet is transitioning to Web3, and the new decentralised frontier necessitates the development of high-quality decentralised applications (dapps). Dapps are smart contract-driven blockchain-based applications. What’s more, they can perform a wide range of transactions between participants quickly, securely, and permanently, without the risk of corruption or censorship. They are also verified directly between users, removing the need for intermediaries such as banks, notaries, and brokers.

Developing decentralised apps from scratch is currently a complex, difficult, and time-consuming process, particularly on the backend. Now, with Cyber Bee, you don’t have to start from scratch to create a decentralised application!

Cyber Bee provides all of the tools you’ll need to complete the job quickly and efficiently. As a result, your dream concept may become a reality! Will you take part in Cyber Bee’s Web3 revolution?

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May 20, 2022
730

What is DeFi? Everything You Need to Know

Modern-day banking is being disrupted by DeFi, or decentralised finance. DeFi’s popularity is steadily rising as a result of the traditional financial system’s inefficiencies and rapid decline. DeFi also has the advantage of eliminating intermediaries and allowing users to earn high interest on assets, borrow, lend, trade, etc. For Web3 users, the preceding is just a small taste of what decentralised finance will accomplish.

DeFi enhances the sophistication of the decentralised crypto ecosystem to replicate traditional finance (TradFi) activities. Beyond merely reproducing past patterns, DeFi dapps are redefining how financial transactions are conducted. But what precisely is DeFi? The phrase “DeFi” is comprised of the words “decentralised” and “finance.” This innovative hybrid concept combines characteristics of decentralised blockchain technology with conventional financial products and services. In addition, you can incorporate brand-new assets such as non-fungible tokens (NFTs) into DeFi. Decentralized exchanges, including the two most popular platforms, Uniswap and PancakeSwap, include permissionless marketplaces where anyone can trade fungible and non-fungible commodities.

What is Decentralized Finance?

DeFi is an acronym for “decentralised finance.” It is an umbrella phrase for a completely new financial infrastructure predicated on decentralisation. In other terms, DeFi eliminates the conventional financial middleman. Consequently, both the notion and the blockchain technology that supports it are disruptive and revolutionary.

In traditional finance, or TradFi as it is known in blockchain and Web3 , major banks and institutions support transactions as trusted intermediaries. Blockchain technology eliminates the need for such middlemen in DeFi. Moreover, blockchains enable anonymous or pseudonymous online transactions.

The Role of Smart Contracts

The foundations of DeFi are built on smart contracts, commonly known as Web3 contracts. They are the foundation of decentralised transactions, or transactions that do not require the use of an intermediary. They also ensure that different DeFi platforms work together flawlessly. Solidity, Ethereum’s programming language, is being used to create smart contracts (the first Turing-complete blockchain). However, several other blockchains have evolved since Ethereum’s introduction, each with its own set of advantages. These blockchains built on Ethereum’s and EVM’s (Ethereum Virtual Machine) knowledge and tweaked things like transaction speeds and gas fee structures.

Create DeFi Dapps

Smart contracts, also known as Web3 contracts, are essential to DeFi. They are the foundation of decentralised transactions, or transactions that do not involve an intermediary. They also ensure that various DeFi protocols work together seamlessly. Solidity, Ethereum’s programming language, is now used by developers to create smart contracts (the first Turing-complete blockchain). However, many other blockchains have emerged since the launch of Ethereum, each with its own set of strengths. These blockchains have built on Ethereum and EVM (Ethereum Virtual Machine) knowledge and modified certain aspects, such as transaction speeds and gas fee structures.

Create DeFi Dapps

NFTs, the Metaverse, and DeFi

NFTs, or non-fungible tokens, cover a wide range of topics, from digital art to digital real estate and gaming. The ERC-721 and ERC-1155 token standards enable you to represent anything in the DeFi ecosystem as a unique digital asset. They also provide exciting applications in the Web3 metaverse, where they integrate with the GameFi and play-to-earn (P2E) experiences.

DeFi and the metaverse use Web3 wallets like MetaMask. Through these decentralised wallets, anyone can generate a Web3 address and authenticate to any DeFi dapp or blockchain game. Web3 wallets don’t use KYC. They don’t require personal information either. DeFi protects user privacy. Web3’s blockchain interoperability unifies everything. Since we’ve discussed smart contracts, how to develop DeFi dapps, and the function of NFTs and the metaverse in DeFi, let’s look at different DeFi applications and components.

DeFi Applications and Components

As many financial services, companies, and institutions as there are DeFi dapps. DeFi copies, improves, or innovates our current financial services, hence the possibility for more dapps is open-ended. To answer “what is DeFi?” one must also consider its uses and components. The following are samples of DeFi dapps and components.

Decentralized Exchanges

DEX is a peer-to-peer marketplace where crypto dealers trade directly. DEXs foster financial transactions without banks, brokers, payment processors, or other intermediaries. DEXs allow crypto trading without KYC. They allow anonymous trading. DEXs are permissionless. Uniswap or PancakeSwap in DeFi are popular DEXs that support the crypto industry.

Stablecoins

Stablecoins are pegged cryptocurrency. Most are dollar-pegged (USD). A USD-backed stablecoin will always be worth one dollar. Other stablecoins include:

  • Crypto-backed stablecoins are decentralised and over-collateralized to absorb fluctuation.
  • Commodity-backed stablecoins use gold, real estate, oil, and other precious metals as collateral.
  • Algorithmic Stablecoins like this use an algorithm to control supply and seigniorage shares.

DeFi ecosystems benefit from stablecoins. Bitcoin and Ethereum may be volatile and not suited for some uses. Stablecoins stabilise the DeFi ecosystem. They can also soften bitcoin price volatility. Stablecoins help explain DeFi. They stabilise decentralised financial ecosystems and instruments.

Yield Farms

You invest or stake your crypto assets in yield farms in order to earn passive revenue. Yield farms have grown in popularity among Web3 users as a practical approach to earn income on assets with less risk and effort. However, not all yield-type dapps are created equal in terms of trustworthiness, safety, and soundness, so proceed with caution and due diligence before investing. When you look into “what is DeFi?” you’ll notice that yield farms are a part of the passive income or investment component that makes DeFi so appealing.

Wrapped Coins

Wrapped coins, in a nutshell, are coins that are represented by another coin on a different blockchain. This is frequently done to improve interoperability and transaction speed. Although the execution is more complicated than the concept, it is one of the most practical DeFi ideas. Furthermore, wrapped coins maintain the original coin’s value while being traded on a different network. Wrapped BTC, for example, can be traded on Ethereum as wBTC. Furthermore, the depicted currency can fully back the wrapped currency.

Lending and Borrowing DeFi Dapps

Lending and borrowing Dapps follow the same concepts as TradFi credit. The main difference is that they don’t require a middleman. For example, stablecoins can be borrowed using crypto as collateral, such as Bitcoin or Ethereum. Other models entail lending cryptocurrency to other Web3 users in exchange for interest on the loan.

Gambling Applications

If you’ve ever questioned if gambling dapps fall under the category of DeFi applications, the answer is yes. Anonymity, decentralisation, and trustlessness are key features of DeFi gambling dapps. Furthermore, gambling dapps allow for the transparent display of game results while maintaining user privacy.

What is a Decentralized Exchange?

Now that we know the main types of DeFi applications, we can look into

DEXs. DEXs, which stand for “decentralised exchanges,” are a key part of figuring out “what is DeFi?” Also, they are a very important part of the DeFi ecosystem. They let people trade assets without the usual “Know Your Customer” checks.

In recent years, the trading of crypto assets on DeFi DEX platforms has skyrocketed. According to Uniswap’s website at the time of writing, its DEX boasts over $959 billion in trading volume and over 96 million trades in total. Uniswap continues to promote community involvement in addition to its phenomenal growth. Its DEX model features token-based decentralised governance that is novel (using an ERC-20 token). In addition, it offers developers incentives through a grant programme.

The trading of crypto assets on DeFi DEX platforms has skyrocketed. According to Uniswap’s website at the time of writing, its DEX boasts over $959 billion in trading volume and over 96 million trades in total. Uniswap continues to promote community involvement in addition to its phenomenal growth. Its DEX model features token-based decentralised governance that is novel (using an ERC-20 token). In addition, it offers developers incentives through a grant program.

What is DeFi? DEX vs CEX

The difference between a DEX and a centralised exchange (CDEX) is critical to understanding “what is DeFi?” (CEX). DEXs offer an alternative to CEXs, which rely on outdated processes and necessitate a great deal of user input before they can be used. Disintermediation is the goal of DEXs. To make things easier, they use smart contracts.

DEX vs CEX – Order Books

There is no order book trading engine for DEXs. Algorithmic trading engines may be used instead of a traditional order book. In other words, they use automated algorithmic trading facilitated by “automated market makers”, or AMMs. Hence, you need to understand AMMs and liquidity pools.

What is an AMM?

To comprehend “what is DeFi?” and AMMs, we must comprehend the fundamentals of market-making. Market making is the process of supplying markets with liquidity. Market makers quote prices to simultaneously acquire and sell assets. Generally, centralised exchanges utilise an order book and an order matching mechanism to pair buyers and sellers. Order books maintain an electronic record in real-time that lists all purchase and sell orders at any one time. In addition, the engine enables efficient order matching and settlement.

AMM Formulas

Using liquidity pools, an automated market maker (AMM) enables you to trade digital assets automatically. It employs smart contracts to establish token or asset liquidity pools. In addition, it determines the prices of these assets using mathematical algorithms, hence eliminating the need for human market makers.

Whenever customers trade on an AMM-powered DEX, the tokens are instantly sent to the liquidity pool through smart contracts. The smart contracts then exchange the tokens for their trading pair counterparts. The DEX calculates the exchange rate between the two tokens automatically.

The AMM formula on Uniswap is “x*y=k.” “x” and “y” in this formula stand for the number of each traded token in the pool. Also, the exchange makes “k” a constant that has already been set. With this model, each trade will still have slippage. But when liquidity pools are bigger, large orders slip less.

What is a Liquidity Pool?

A liquidity pool is a pool of tokens that are secured under a smart contract. These tokens are market-making instruments on a decentralised exchange. Using liquidity pools, you can switch between tokens while trading on the blockchain directly. Additionally, you can anticipate DEXs to have many liquidity pools. Each pool has two distinct cryptocurrencies that comprise a trading pair. These trading pairs can represent any two crypto assets or tokens that adhere to the same token standard. Typically, the ERC-20 standard is used.

What is DeFi? AMM and Staking

To show how DeFi helps its users, consider the passive income generated by staking. You can become a market maker using an AMM. In addition, you can generate income by staking your crypto assets (tokens or cryptocurrencies) as capital. In DeFi, market makers are referred to as “liquidity providers” or LPs. In addition, as an LP, you provide the equivalent of two tokens to their respective pool. For instance, $100 worth of USDC and $100 worth of ETH can be deposited into the USDC/ETH pool. You will then receive LP tokens indicating your proportional share of the pool. In addition, you can immediately begin collecting fees from the trades in that pool.

Your return reflects your contribution. You receive a proportional portion of the fees earned from trades in the pool. However, you must be aware that each protocol charges a different transaction cost (percentage) Moreover, each protocol’s rewards vary. As DEXs incorporate a governance component, users can also determine their own rewards. To comprehend decentralised governance, please refer to our page on governance tokens.

Simply return your LP tokens to the smart contract to withdraw your earnings and stop supplying liquidity. You’ll get your original staked tokens as well as any earned fees.

Summary

DeFi enables Web3 users and blockchain developers to investigate alternative financial models outside of conventional banking. With these models, one can generate, transact, exchange, and distribute digital assets in novel ways. In addition, DeFi is a vast ecosystem, and its TVL (total value locked) hit a record $305 billion in November 2021