BC CRYPTO
Saved by @Shubham51ngh

We're in the phase of the market where there's a lot of retail inbounds but not enough education about the Ethereum ecosystem and DeFi.

So, let's break down the basics of some of the top protocols.

First on deck: Aave (@AaveAave), an Ethereum-based money market protocol.

A 🧵

 TL;DR: Aave is a protocol through which any user anywhere in the world can take decentralized loans by collateralizing their assets.

Aave also allows those will idle assets to earn a relatively safe return on capital from lenders, whose rates are determined by a curve.
1/ For years, most crypto assets had no indirect or direct utility.

Users would hold BTC, ETH, and other assets (including many ERC-20 tokens) with no expectation of a native yield or dividends.

ETH, for instance, was long just an asset for transaction fees, as was Bitcoin.
2/ If users wanted to borrow against their assets, they were relegated to centralized platforms—which were few and far between years ago.
3/ Aave, formerly ETHLend, is a protocol allowing users the ability to lend and borrow on-chain, without KYC and untransparent fees.

Users can deposit a variety of assets as collateral, then use that collateral as ammo to borrow other assets to be used in DeFi or beyond.
4/ Today, Aave supports a handful of Ethereum-based assets, including but not limited to stablecoins (USDC, DAI, USDT), Ethereum itself, DeFi blue chips (UNI, YFI, SNX), Wrapped Bitcoin, and a number of other assets.

Loans are *overcollateralized*.
5/ There are two core buckets of users of Aave:

1. Those looking for steady, relatively safe yield on idle assets.

2. Those that want to leverage their assets by borrowing against their holdings, then trading and spending the loan to achieve utility beyond the rate they pay.
6/ For those in the first bucket, the user flow is:

- Find idle assets that can be lent out on Aave
- Deposit said assets
- Earn a per-block, pro-rata interest paid for by those that borrow your assets (assets are pooled, then used) from the protocol
7/ For those in the second bucket, the user flow is:

- Find inactive, useless asset
- Deposit it into Aave
- Enable it as collateral
- Borrow desired assets from protocol
- Use borrowed assets for trading, yield farming, spending, etc.
8/ There are a few use cases with borrowing on-chain. Let's explain a few.

Shorting:

A user can borrow an asset from Aave, sell it, buy it back when the price is lower, then pocket the delta.

This works because the loan is denominated in the asset(s) borrowed.
9/ Earning a yield on any asset:

ETH natively does not produce yield.

It can be used as collateral to borrow assets that *can* earn yield.

Assuming you can earn 15% on USDC and borrow @ 5%, borrowing USDC at a 200% collat. ratio will allow for an effective yield of 5% on ETH.
10/ Spending:

Say a user is holding Wrapped Bitcoin and wants something on-chain or IRL, though doesn't want to get rid of their WBTC exposure.

A user can collateralize their WBTC, buy what they want, then pay back the loan with income or other assets to reclaim their WBTC.
11/ Now that we have some use cases out of the way, let's take a look at flash loans.

Aave pioneered flash loans, a concept where anyone can borrow any amount of capital within a single block for a number of use cases.

Did a thread here in the past.

https://t.co/FRn5Pj2TFk
12/ Due to inefficiencies in the market, users can borrow large chunks of capital from Aave within a block, to balance the price of assets between different exchanges, along with other use cases.
In the above transaction:

- A user borrowed 2,048,000 USDC from dYdX

- Traded that USDC for 2,028,367 DAI in Curve's Y pool

- Traded that DAI for 2,064,182 USDC in Curve's sUSD pool

- Paid dYdX back + 2 wei

All in one block...

Profit: 16,182 USDC
Cost: $60 in gas
13/ Now, a look at a few of the mechanics of the protocol to help contextualize how Aave works.

I'll cover:

- Interest rates
- Terms
- Liquidations
- aTokens
14/ Interest rates: Aave's rates on the lender and borrower sides are determined by a curve.

The more an asset is utilized, the higher the rate lenders earn and borrowers pay.

The borrow rate is always above the deposit rate.

Here's the borrow rate model for USDC / USDT.
15/ Aave has the added component of a "stable" borrowing rate.

To mitigate unexpected spikes in utilization affecting the rate one pays on their loan, users can lock in a fixed rate, so they can manage risk properly.

This rate can readjust based on market conditions.
16/ Terms:

Aave has a number of loan terms that dictate how much one can borrow, at what point they are liquidated, and how much they pay when they are liquidated.

These terms are determined by a risk team, who assess market conditions to minimize risk to protocol collateral.
17/ Liquidations:

Unlike traditional loans, Aave loans are liquidated autonomously when a user's loan-to-value ratio falls below certain values.

A large enough drop in the value of one's collateral will allow users to bid the collateral, sell it, then pocket a bonus.
18/ aTokens: Users that deposit assets into Aave are granted an aToken representing their deposit (USDC -> aUSDC).

aTokens are yield-bearing assets that accrue interest in real time, allowing one to watch their deposited assets grow by block.
19/ These basics aside, Aave, at the end of the day, is a core money lego.

It can be used by other developers to build interesting applications and use cases.

For instance...
20/ @BasketDAOOrg: BasketDAO deposits assets under management into Aave, which creates a yield-bearing index

@APWineFinance: APWine allows users to trade unrealized yield

etc.

aTokens, flash loans, etc. can all be used in tandem with other contracts to create use cases.
Fini/ As always, none of this is investment advice. Please take caution when interacting with protocols on-chain and understand all risks before doing so.

As I said at the start of the thread, this is the first of many.

More to come.

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Larry Cermak
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1/ ETH reached 18-month low today and there is this narrative that the price of is dropping because ICOs are liquidating their treasuries. Well, it’s completely wrong. Let’s look at the data!

https://t.co/yG0vecC7VT


2/ The sum of ETH holdings of ICO treasuries is now a little over 3.57M ETH (3.5% of supply). In April, the treasuries held 4.65 million ETH (4.5% of supply) indicating that they likely liquidated (or moved) about 23% since then.

3/ Despite the decline in ETH price, the selloff hasn’t been as drastic as many analysts anticipated. In the past two months, treasuries of projects that held ICOs liquidated (or moved) 172,00 ETH, or ~4.6% of total holdings.

4/ The most aggressive sellers were Status, district0x and Tierion (in order), which sold (or moved) nearly 55,000 ETH combined since September 9. Out of the 57 companies I tracked, 50% didn’t touch any of the ETH in their treasuries.


5/ At least 11 ICOs currently have a smaller “market capitalization” than the amount that they hold in their ETH treasuries alone (see table below).
CRYPTO
Altcoin Sherpa
Altcoin Sherpa
@AltcoinSherpa
Quick Thread on #Altcoins/ #Altseason

Step 1: $BTC has a huge correction. Every range starts with either a pump (or dump) and then follows with a dump (or pump). In this case, #Bitcoin pumped and is now pulling back. This is


Step 2: $BTC ranges big once it finds a bottom. This will allow it to reaccumulate for a big summer run in 2021. This is HEALTHY IMO.


Step 3: Once $BTC finds a bottom and starts to grind up again, I expect $ALTS to do very very well in both alt/usd and alt/btc pairs. ALTSZN is almost always characterized by strong alt/btc pairs moving- I've already accumulated most and have done my final buying today and more.

$BTC.D typically has a very nice time during this time of the year. I was off on December prediction bc I thought $BTC was going to pull back by then but oh well! #Altcoins will start their pumping time VERY soon now.


More information on what #Altseason is and $ALTS market
CRYPTO
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@0x_b1
0/ Predictions for 2021:
(This is not investment advice, or any other type of advice. DYOR)

1/ #ETH hits new ATH(s).

2/ #Bitcoin breaks $55K; but BTC YE2021 close is < $30K.
wins!

3/ > 3 billion-dollar crypto IPOs successfully occur (eg CoinBase, BlockFi, et al).

4/ @SBF_Alameda’s ‘off-chain BTC folding’ strategy goes unnoticed; whole crypto ecosystem wins!
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Tahinis Restaurants
Tahinis Restaurants
@TheRealTahinis
Hodling #Bitcoin as a Company is not easy, over the past year it felt like we were battling an opposing public opinion in our community all the time.
This was resolved by us learning & studying which was crucial
.
Thread 👇🏽👇🏽👇🏽

2/ The arguments were exhausting especially if you didn't put time into education
1. Too volatile
2. Untrustworthy
3. Will get banned
4. Consumes too much energy
5. Not an investment, its speculation
6. Manipulated market
7. CBDC's
8. Used by criminals

3/ We saw something different, #Bitcoin was the most stable asset in our lives. Block after block it operated with perfection as promised. #Bitcoin hasn't changed at all since we got into it (yes, we verified) but the echo system built on top of it grew immensely

4/ Meanwhile everything else around us was insanely volatile, Our Central Bank printed more money than was ever printed in the country's history. Prices of real estate, commodities, groceries shot through the roof, more importantly the prices of Chicken

5/ Our business is built on the back of fresh high quality Chicken which increased in price by >25%
Nassim Taleb came out on @CNBC and suggested that owning a business should be sufficient to protect you from inflation because you can raise prices,
CRYPTO
\U0001f42e Mikko Ohtamaa
🐮 Mikko Ohtamaa...
@moo9000
1/ Welcome to #DeFi Wednesday.

Let's talk about how interest-bearing cash on a blockchain is going to revolutionise boring corporate treasury management that concerns every company is is a larger business than all crypto trading in the world.

Enter the thread

👇👇👇


2/ Blockchain community is often seen as toxic maxis and redditors who shill other their weekly favourite shitcoin in the hope of getting Lambo.

Sometimes we also do things that progress humanity towards the better future and interest-bearing cash is one of those things.


3/ Less chad and more things that actually matter:

My incomplete theory of interest-bearing cash is also available also as a blog post:

https://t.co/uiG0fZiVyu

It is 15 pages. Pick your slow poison or die fast by continue reading here.

4/ First time in the history we have an ability to create interest-bearing cash-like instruments.

Interest-bearing cash ticks up dollar (euro) balance real-time in your wallet.

Here is a demonstration using @aaveaave aDAI, based on @makerdao DAI, and @TrustWalletApp


5/ Interest-bearing cash is not like your bank's saving account. Your money in a bank is not yours, but bank's. There are some flaws in the current banking system causing a headache for Chief Financial Officers (CFOs)
CRYPTO

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Samayapuram Mariamman Temple is located in Samayapuram of
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Timur Lang, was the founder of Timurid Empire. He was born in April 1336 CE, somewhere in central asia.


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Timur Lang decided to invade India in 1398 as he heard about India's splendid wealth and had a desire to conquer India which his ancestor Genghis Khan couldn't do.


After Firoz Shah's demise in1388, Delhi Sultanate was in a state of political turmoil.During this time, Timur sent his grandson Pir Mohammad to attack Indian front. He invaded Multan&was able to defeat Iqbal Khan's brother but when he met with resistance,he asked help from Timur.


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