DeFi Markets are Lit! : Episode 46
How’s it going guys. Altcoin author. So as you guys have probably seen, DeFi is kicking it to the next level with the amount of excitement and high level people that are getting involved in the projects. I think the number of 3 billion comes and then there are a lot more people that will reach out to me on LinkedIn and ask like: what’s the state of DeFi and is this something I need to get involved with?
How do I stake? Is there a possibility that I lose my funds with the Metta mask? And you know, how do the wallets work kind of all bull level questions for trying to understand the space coming in with a very little understanding of. The ecosystem and just kind of knowing about Bitcoin. And then now they’re starting to hear more about defy and Ethereum smart contracts, Oracles, and trying to piece together kind of what it all is and are intrigued with the adoption that is getting the nice clip in the last few months of the staking that’s doing really well.
And understanding that. Yeah, I think someone on this one, LinkedIn. He’s like, I’m an expert at getting you, what was it? 400 times what you’re going to get in your checking account? So what he did is he kind of walked people through how to use maker Dao and some of these other defy solutions to create a platform that would, or to use the platform to get some sort of return on your Ethereum.
And then I think like he was posting a lot of videos from DeFi Dad and people that were breaking down the whole process of sending it, the wallet or sending the crypto from your wallet and the determining gas fees, just kind of basic stuff. That’s not so basic if you just getting into it in 2020, which many, many thousands of people are.
And I mean, I’ve been bullish on the road that for a while, I mean, I, when I’m waiting. My username on LinkedIn is LinkedIn slash I am, you know, slash DeFi. So that’s essentially my username and I’m keen on this space and I’m interested to see what the newest iteration of a theory and will do with making those gas fees less expensive.
I like how you can do the transactions, but if it costs a few bucks to. Get it in, unless you’re doing large amounts of money, it’ll take a few days to earn back those transmission fees that you burned when you sent it off in interest. So I think also the interest in defy and Ethereum is one of the reasons why the prices are, are they actual, auction price to send a transmission through in a reasonable amount of time are going up so high.
Cause people want their transmission done immediately and you know, they’re willing to pay for it. And a lot of these projects are very well healed and you know, there’s an incentive to make a splash in terms of the total amount of transactions being done. Cause it reflects well on your project and shows the rest of the ecosystem that wow, this particular defy app or project is really.
Getting some traction. And so that’ll justify, they hope people looking into it a little bit further, but just serve just up to blockchain itself. That makes it more expensive for the people to interact with different applications. So I do hear that to tell you, Peter and his talking about how, you know, V2 and beyond it’s going to address a lot of those difficulties.
And we’re going to see how, you know, with prod pal and a few that are solutions and some initiatives that are being, I put forth through the board of governance that will make the whole process pretty seamless, and they can already do a good job of incentivizing people to ever keen program with that sticky model.
And. I do feel they’ll always be a place for proof of stake or proof of work, as you know, is how Bitcoin was set up. And that’s one of the appeals of Bitcoin is that you’d have to harness so many computers and get so much in the way of resources, way more than nice hash even has or all of mining regrettables can put together in order to put something together, to try to.
Double spend or pull back some transactions, which can fairly inexpensively be done with all these other low level projects and ones that it makes economic sense to do a takeover on like a theorem classic. I think it is, is being, or being done pretty habitually, you know, one or two times a year. And they’ll.
And that’s also why when you go to exchange, like a lot of these projects will require like 20 confirmations. So even if it’s a blockchain that mimics Bitcoin where each block is like 10 minutes, you’re supposed to do 20 blocks. so, you know, that’s, you know, using my expert math skills, that’s 200 minutes.
So you’re sitting there for three hours trying to deposit, which you know, is fine. If you’re. Just doing a few, but a lot of people in Bitcoin and crypto want stuff immediately. And because you never know how long a platform is going to be rock solid. And with every investment you do, you have to consider the platform risk.
And with that platform, risk comes, you know, you may see 11% APR on putting your theory in there. And yeah, they have a lot of volume, which. A lot of which is bots and can be easily manufactured by low level people. you know, what’s promising today is evaporating it’s dust and you’re getting a four Oh four air tomorrow.
So a lot of this is experimental. I do like that. There’s been some news in the last few days where. Banks are now allowed under, you know, by the regulators spearheaded by this one regulator that came out of Coinbase to hold the actual physical, private keys for crypto. So that speaks volumes to pro crypto people making their way into government in the U S and heating the warning call are shot across the bow that China’s doing with their adoption of.
The, digital, Chinese yen and kind of seeing how that goes in the effort to off the United States is having the worldwide based currency. You know, all the conspiracy theorists worry about having a one world government or one currency and what effect that could have. Well, that’s really the case already with the dollar, you know, in my travels, through Mexico, you.
Hey, they want you to pay, pay in dollars, but of course they’ll give you change in pesos because they know that yeah, that is not as stable. Yeah. And if you go around the world, yeah. People are holding dollars. You know, the Chinese are really the ones that are buying these bonds from the U S government and people are loading up on, you know, U S real estate and everything as a means of, yeah, there’s the, the opportunity for appreciation, but also think about that real estate can give you dollars for people to come through and rent or down the road.
You know, if you do sell it for a profit, but at very least you’re getting a steady stream of us dollars. So the dollar stable and your own currencies. It’s pretty easy to devalue or is being actively devalued by the government. You know, I don’t know, ruble or all these other ones that are subject to a lot of inflation.
And when you do a Forex pair, if you are long, like the ruble or the peso, and you’re short the dollar or the Euro, like you’re going to get a heck of a lot of the swap interest rate overnight. That’s going to pay you. Pretty handsomely to take on that exposure risk for a currency that has baked in a fair amount of inflation.
And even though you have central banks are offering pretty high rates because they know that because of the inflation, that international investors aren’t going to get involved because when you do an investment, you already have that fairly well baked in. And a lot of these bonds investors will.
Actually take futures positions in the currency so that they can try to make a little bit more than what they could make with treasury bonds, but they’re making them in other country bonds. and the only costs they’re getting. To kind of maintain some sort of stability is the actual overnight swap rates, which are coming.
It didn’t like once a day. So they kind of worked their way around doing that by doing different cross-platform traits. But this isn’t really a trading show. I just kind of commentate on crypto topics related to what’s going on at the present time. But it’s interesting that so many people were getting into this space and they’re trying for the first time.
Trading it. And a lot of the companies that before like JP Morgan chase, I thought there was no way they would get in bed with any kind of crypto company. And lo and behold, Gemini and Coinbase are actively feel wrapped up with the company like they’re taking deposits and they’re doing the banking activities for Gemini.
And Coinbase. So I thought that that was way down the horizon. I also thought that this thing with the regulators and them even being able to hold in safe deposit boxes, the keys, or however the custodial structure is set up would even be possible, but it appears that anything’s possible. So with Senator Kelly Loffler, In Georgia.
we don’t know that she is a huge proponent of crypto and with her getting in power and then with all these other pro crypto people really getting in power. And then there are a lot of money to interest for crypto in the United States, which I thought that was surprising just because of the regulations and the possibilities of running a foul with securities industries is happening.
So that. In and of itself is impressive. I would, I was on Bitcoin and beers. They asked me, what do you see as the state of dApps in a year? And I said, yes, there’s going to be a lot more adoption. And the last time I checked, I think on the podcast, I said 10 X, but last time I checked, it was more like two or three X.
And then if you include defy into that, DAP ecosystem, which some people do, some people don’t then I guess, yeah, it was definitely more than 10 X cause a lot of these dApps we’ll see daily activity of interactions on the site, which means I’m actually sending in some sort of transaction. I think I’ll be curious to see what their analytics are.
They’re pulling Google analytics or what their sources for. I used to operate our, which is my go to, but it says. Like a thousand a day will be the top one or, I think one day I was like 1500, but now I’ve see they’ve routinely hit that way more every day. but so I’m bullish on the ecosystem. Always been bullish on the talent and a team around him.
I’ve done development in Tron and then a few other solidity based blockchains. And I do know that patella is looked upon favorably. And in a more of a serious light than kinda like Justin sine or people that are, you know, good promoters and good at advancing the knowledge of the ecosystem, but are not necessarily as technically minded as metallic is who do you see?
Interviews does a quite good job of explaining the technology the possible. Con or the multiple ways that it could be improved upon, in the way that a lot of the crypto personalities can’t, won’t be specific any further than that. In our, in my estimation, you have a telos. I’m a good representative for the ecosystem, and to see the work that he does for get coin and the grants for people that are working actively on programs that advance the ecosystem through open source applications is.
Is a really positive to see. So I like what he does with that. And, I think that for the most part, the ecosystem is going in the right direction. And I like that people are getting really enthused about defy because there’s a lot to be enthused about. So. Go ahead and check out my YouTube and my podcast.
And yeah. Also got a new Twitter, at rent, you know, act R E K T. And for people that trade you’ll know that if you get wrecked, then essentially you’re closed out of position. And it’s just one of the industry terms. That are important to know in crypto, you know, probably the most important one, I would say, besides huddle, you know, HODL or a few of the other ones, but there’s, I think at some point I’ll do some more videos on trading, active trading, for sure.
You know, on these various platforms that I like, you know, I please, no, this is financial advice and that I don’t, I’m not a broker dealer don’t hold any security licenses. It’s just kind of my own experiences in blockchain educator. But I’ve used for a while, FTX, which had an agreement with Binance for the longest time.
And, it had a cash infusion of, I think, 50 million from finance to keep the platform going. And they took it a lot of traction. If you buy their native token is really strong and really valued. but I also see that they have ones that are more nimble, like, Dara bits, which you go on there and, you know, very little KYC and it’s all fairly well streamlined.
I like the whole experience of being able to, you know, deposit and then create a bunch of different sub-accounts so that you can limit your risk exposure because you may do well for weeks and weeks, and then something will shift
completely zeroed out. So if you have to get a bunch of gains and then you sub like separate them into different subgroups, then you stand, you know, you will have protection against any sort of one going the wrong way really quickly and closing yourself out.
So. It’s a good platform in my experience. When it was available in the United States, I did use BitMex and I know they get a ton of volume from international trading, but I am seeing more and more platforms that will do. Different types of, leverage trades. And then what I’m keeping my eye on the most, most is platforms that will do actually I’m leveraged trades within the context of an ERC 20.
So like a lot of these platforms you’re sending in a little bit. Of Ethereum. And then the actual ERC 20 is holding, let’s say three X of that, you know, the basic attention token and it will close. Well, actually it’s actually holding those and
Lending, in essence, to itself, within the confines of the contract. Fascinating stuff. Check out our newest podcast, Rekt Radio, launching Monday where we’ll interview tech influencers on all manner of topics!