DeFi Archives • SynQ

Category: DeFi

DeFi – FTX Exchange

FTX Exchange

Introduction

FTX is a crypto derivative exchange offering scalable futures, leveraged tokens and OTC trading for the DeFi market. The Hong Kong-based exchange was only launched in May 2019, but has grown to be one of the top five exchanges in traded volume and is quickly outpacing most competitors.

This growth could be attributed to the solid reputation the company has established for itself, even before its adoption of DeFi projects. As interests and competition in DeFi grew, FTX stood out from the competition due to their adaptability and innovation.

Alameda Research, the exchange’s primary market maker, is also a investor in the DeFi project, mStable, a stable assets swapping protocol. The company is also an active participant in the Defi ecosystem. Alameda has proposed and voted on several Compound governance proposals, in addition to playing a crucial role in enhancing the Balancer‘s protocol distribution mechanics.

FTX operates by tokenizing leveraged futures positions using a generated ERC20 token as representation, which can then be traded as a spot token. The token could additionally also be listed on other exchanges, allowing users to take on a leveraged position without personally managing the collateral themselves. But the appeal for users is the unique products available on FTX such as the MOVE indices, FTX leveraged tokens, or the Bitcoin Perpetual Futures.

The platform’s utility token is known as FTT, and holders receive additional benefits such as lowered FTX trading fees, OTC rebates, collateral for futures trading, and socialized gains from the insurance fund.

Source: The FTX Team is also developing the SERUM Exchange.

FTX Services are available globally, except in restricted countries such as the United States, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Antigua or Barbuda.

Fundamentals

FTT is currently trading at $3.45, with a marketcap of $329,344,002. The current circulating supply is 95,434,860 out of a total supply of 344,446,952 FTT.


Source: https://ftx.com/en/ftt

DeFi – Uniswap

Uniswap

Introduction

Without a reserve of capital, decentralized exchanges cannot be utilized to their full potential. Uniswap aims to provide this service by regulating token exchanges on the Ethereum chain using liquidity pools rather than traditional order books.

Liquidity providers who invested value into a pool will earn interests in proportion to their shares from the 0.3% trading fee that the pool generates. Anyone can contribute to an existing pool, or create a new one by supplying an equal value of both ETH and an ERC20 token. Funds can be deposited or withdrawn at any time.

Image

Source: https://twitter.com/UniswapProtocol/

The creator of the pool can set the exchange rate, which will be shifted through Uniswap’s “constant product market maker” mechanism for trading. When one side of the pair’s liquidity is reduced relative to the other, the price is automatically adjusted. This is designed to “create arbitrage opportunities, in order to encourage more trading”.

Fundamentals

Uniswap does not have a native token, but each liquidity pair is represented by a unique, transferable ERC20 “pool” token which users can use to swap between ETH and any ERC20 token. These tokens are created when funds are deposited into the pool and represents user’s share of the pool’s total assets. When funds are reclaimed, the associated pool tokens are burned.

Source: https://defipulse.com/

Source: https://uniswap.info/home

DeFi – Tellor

Tellor

Introduction

Tellor is a decentralized Oracle for bringing high-value off-chain data onto the ETH chain. The platform operates using a network of staked miners that compete to solve a PoW challenge to submit official values of the requested data. The goal of Tellor is to provide a secure price feed for DeFi applications.

Tributes, TRB, are the native token of Tellor, and is minted with every successful Tellor data point. These tokens are used to pay for data requests and miners on the platform compete to satisfy the submissions.  The Oracle prioritizes the best-funded query every ten minutes, collects the required specific data, and makes it available on-chain.

How Tellor (TRB) Decentralized oracle for DeFi dapps work

Source: https://cryptogems.com/

In addition to the security of the PoW protocol, Tellor will also require miners to stake a deposit of Tributes before they are allowed to mine. Miners risk losing their stake if their submitted values are successfully challenged. This design ensures the integrity of operating miners on the platform.

Fundamentals

Tellor’s token, TRB, is currently valued at $32.73, with a market cap of $49,092,725 USD. There are currently 1,499,574.397 TRB in the total supply.

Source: Etherscan.io

 

 

 

 

DeFi – Synthetix

Synthetix

Introduction

Synthetix is an Ethereum-based decentralized synthetic asset issuance protocol. The platform allows for the creation of synthetic assets that track the value of its real-world equivalent within its chain.

These synthetic assets, or Synths, can be minted through the use of the Synthetix Network Token (SNX) and cover a large range of derivatives including fiat currencies, commodities, and cryptocurrencies such as BTC, MKR, and LINK. The most popular being the platform’s native stable-coin, sUSD, which acts as an onramp to trade for other Synth assets. Stocks, indices, and other derivative support are planned for the future.

Source: https://twitter.com/synthetix_io

Synths are minted relative to the value of locked SNX at a collateralization ratio. Once minted, it is a tradeable ERC20 token that can be used for long-term investing, trading, or remittances. Stakers of SNX also earn a percentage of fees generated on Synthetix’s non-custodial DEX.

The Synths copy the price of an asset but don’t misunderstand that it is the same as holding the asset itself. For example, a synthetic crypto token would be the same price as it’s “real” equivalent, but without the voting and other rights associated with an actual token holder. However, the benefit is this allows users to bet on the price of an asset without holding the actual equivalent, enabling users to gain both long and short exposure to all available assets on the platform.

It is no surprise that Synthetix is the current third-largest DeFi project. The protocol enables multiple additional options for users in the market, both in terms of assets and trading strategies.

Fundamentals

Synthetix’s token, SNX, is currently valued at $4.30, with a market cap of $482,797,505 USD. There are currently 112,205,257 / 195,899,536 SNX in the circulating supply.

Source: https://defipulse.com/synthetix

 

 

 

 

DeFi – Compound

Compound

Introduction

The compound is a decentralized finance protocol, the second-largest in the current DeFi industry.

Similar to MakerDAO, Compound is also a decentralized finance protocol. However, it is more flexible than Maker. The platform supports BAT, DAI, SAI, ETH, REP, USDC, WBTC, and ZRX, compared to Maker supporting only ETH, BAT, and USDC. Depending on the quality of assets, users can apply for loans up to 50-75% of their collateral.

With the rise of Maker’s stability fees, Compound has been proving to be a very viable alternative to its competitors. During June 15, the platform’s governance token, COMP, began distribution and garnered additional interests for the project. Users could earn COMP for all cryptocurrencies lent, and borrowed on the app. Demands for the token was high due to limited liquid supply in the market, resulting in a large growth in project capital. Compound even briefly overtook Maker as the protocol with the most value locked during this period.

Fundamentals

Compound’s token, COMP, is currently valued at $132.66, with a market cap of $419,109,289 USD. There are currently 3,154,176 / 10,000,000
COMP in the circulating supply.

 

Source: https://defipulse.com/compound

 

 

 

 

DeFi – MakerDAO

MakerDAO

Introduction

MakerDAO is a credit platform supported by Dai, a stable coin cryptocurrency whose value is pegged to USD. As a credit market, Maker allows users to collateralize cryptocurrencies and apply for Dai loans.

Holders of the MKR token can participate in Maker’s governance system by votes.

The platform itself was a major component for the growth of the DeFi industry in 2019, providing systemically important protocols that supported a majority of the DeFi ecosystem. As a result, MakerDAO has become the sector’s largest protocol, recently surpassing $1 billion in collateral value. However, it is noted that this increase in value is driven by ETH’s rising value, not by additional supply being deposited into the protocol.

A majority of activities on the platform consists of users taking leveraged long positions on ETH. This is accomplished by borrowing Dai against ETH and using that Dai to acquire more ETH. Users can borrow Dai up to 66% of their collateral value, with a 150% collateralization ratio. Vaults of users that fall below this rate are subjected to a 13% penalty and liquidation. Liquidated collateral is offloaded on an open market at a 3% discount.

Fundamentals

Maker’s token, MKR, is currently valued at $512.97, with a market cap of $515,833,035 USD, totally 1,005,577 MKR in the current circulating supply.

 

Source: https://defipulse.com/maker