April 14 – 20, 2021
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DeFi Strategy of the Week
Aave is a decentralized, non-custodial liquidity market protocol. The platform lets users participate as either depositors or borrowers. Depositors provide liquidity to the market, in return for passive income. Borrowers, on the other hand, borrow in an overcollateralized or undercollateralized manner.
One of the most significant advantages of Aave it its wide range or cryptocurrencies using both stable and variable interest rates. Additionally, Aave includes several distinguishable features, including:
- Uncollateralized Loans
- “Rate Switching”
- Flash Loans
- Unique Collateral Types
Yield Farm of the Week
Compound Finance was the first yield farm to offer permissionless lending pools. These lending pools enable users to earn interest on their crypto deposits. Essentially, Compound lets lenders and borrowers interact directly with the protocol to earn or pay a variable interest rate.
The best part for users is, you don’t have to negotiate terms such as maturity, interest rates, or collateral with the other party. Compound’s guiding protocol pools together Ethereum-based assets, and lends them out at an automatically-adjusted floating rate. This rate is typically much better than those offered at any traditional bank.
Learn more about Compound Finance here.
News & Industry Updates
1. PwC: China Isn’t Winning the Central Bank Digital Currency Race
China has advanced a lot with its central bank digital currency. Still, per PwC, China isn’t actually the most advanced country in developing one.
2. Cryptex Introduces a New Token
Cryptex, is focused on building dencentralized financial instruments on Ethereum. One of its first projects is the launch of the “Total MarketCap Token” or TCAP. The TCAP gives holders a real-time price exposure to the total cryptocurrency market cap.
3. Low-ish Ethereum Gas Fees & Flashbots Adoption
Ethereum continues to reach new highs, but average gas prices have remained relatively stable throughout April. And these stable gas prices may be thanks to the adoption of Flashbots.
4. PayPal Adds $1 Crypto Buys to Venmo
Now, Venmo users can buy and sell Bitcoin and three other cryptocurrencies.
5. US Dollar & Bitcoin Both Slumping in a Rare Trend
What could this dual trend mean for the future of Bitcoin?
