DeFi Explained
Understanding the Mechanics of Automated Market Makers Paid Members Public
Automated Market Makers (AMMs) are reshaping the landscape of DeFi. They offer a new way to trade assets without traditional intermediaries. This innovation is crucial for understanding the evolving crypto market. AMMs use algorithms to set prices and facilitate trades. They rely on liquidity pools, which are collections of funds
How DeFi Oracles Work: Price Feeds Explained Paid Members Public
What Are DeFi Oracles? Oracles are the infrastructure that connects blockchains to the outside world. In the context of DeFi, oracles primarily provide price data, letting smart contracts know what an asset is worth so they can calculate collateralisation ratios, execute liquidations, settle derivatives, and perform countless other operations that
Flash Loans: How Uncollateralised DeFi Borrowing Works Paid Members Public
What Are Flash Loans? Flash loans are one of the most novel financial primitives to emerge from DeFi, uncollateralised loans that must be borrowed and repaid within a single blockchain transaction. If the loan is not repaid (plus any applicable fee) by the end of the transaction, the entire transaction
What Are Wrapped Tokens? How WETH, WBTC, and Token Wrapping Work in DeFi Paid Members Public
What Are Wrapped Tokens? Wrapped tokens are digital assets that represent another cryptocurrency on a different blockchain or in a different token standard. The most common examples are Wrapped Bitcoin (WBTC), which represents Bitcoin on the Ethereum network as an ERC-20 token, and Wrapped Ether (WETH), which converts Ethereum&
DeFi Governance: How DAOs and Token Voting Work Paid Members Public
Understanding DeFi Governance: How DAOs and Token Voting Work Governance is one of the defining features that separates decentralised finance from traditional financial systems. In conventional finance, decisions about how a bank sets interest rates, how an exchange lists new assets, or how a fund manages its portfolio are made
What Are Layer 2s? Ethereum Scaling Explained Paid Members Public
What Are Layer 2s? If you have spent any time in crypto over the past few years, you have almost certainly encountered the term “Layer 2” or seen network names like Arbitrum, Optimism, Base, and zkSync appearing alongside Ethereum in DeFi applications. Layer 2 networks (L2s) are a category of
Understanding Gas Fees: The Complete Guide to Transaction Costs in Crypto Paid Members Public
Every transaction on a blockchain costs something. Whether you're swapping tokens, minting an NFT, deploying a smart contract, or simply sending ETH to another wallet, you pay a fee to the network for processing that transaction. These fees are commonly called "gas fees," and understanding how
DeFi vs CeFi: What Is the Difference and Why Does It Matter? Paid Members Public
The crypto space is broadly split into two ways of doing things: CeFi (Centralized Finance), platforms run by companies that hold your assets and execute trades on your behalf and DeFi (Decentralized Finance), protocols that run on smart contracts where you maintain custody of your own assets. Both let you
