Uniswap Trading forecasts and signals

The cryptocurrency market has remained in a narrow range recently. At the end of last week, the price of bitcoin rose slightly to the resistance of $48,000. Ethereum strengthened to the level of $3,400, and XRP - to the price value of $1.08. The total capitalization of the crypto assets market amounted to $2.14 trillion.On Tuesday evening, the Ethereum blockchain was attacked. Unknown miners published their own chain of 550 blocks, but the vast majority of nodes rejected them as faulty. According to the developers of Ethereum, the blocks released by hackers had incorrect confirmations. Most of the network nodes, after determining an incorrect confirmation, rejected alternative blocks. However, a small proportion of the nodes on which the Nethermind client is installed have switched to a fake chain. However, very soon the length of the main Ethereum chain exceeded the indicator of the alternative one, and customers independently switched to the correct version of the blockchain. At the same time, the hackers were unable to take advantage of the situation in their favor.September 14 was the day of mass attacks and errors in blockchains. The main network of the Solana cryptocurrency did not function for more than 20 hours. Analysts believe that the failures of Solana and Arbitrum have cast a shadow on the alternatives of Ethereum in general, and now there is a rotation of capital in the market between ecosystems. The events of last week in the cryptocurrency market simply show that genuine decentralization and well-developed security represent an essentially extremely significant value proposition. Perhaps this is more important than the throughput indicators. Before the fall of the network, the Solana token rose more than four times in three weeks and exceeded the level of $200. It is currently trading around $160.The spread of decentralized finance among institutional investors in the second quarter surpassed previous records, analysts of JPMorgan bank note in the weekly report on the state of the cryptocurrency market. According to their observations, in the reporting period, more than 60% of DeFi transactions occurred for amounts over $10 million, and there were less than half of such transactions in the market. The institutions of large economies promote activity in the DeFi space, and developing countries continue to develop more traditional cryptocurrency assets.According to Dune Analytics, the trading volume on 14 different decentralized exchanges based on Ethereum over the past 7 days exceeds 15 billion. Of these, over 62% are accounted for by Uniswap. The data also indicates that the total amount of assets in DeFi, including the Binance Smart Chain, Avalanche and Solana networks, has already exceeded 170 billion. More than 270,000 bitcoins have been tokenized for use in the Ethereum blockchain. The total trading volume of decentralized exchanges on all blockchains for the week exceeded 23 billion. At the same time, the turnover of the largest cryptocurrencies decreased compared to the previous week, JPMorgan writes. The average daily volume of transactions in the bitcoin and Ethereum markets fell by 18% and 21%, respectively, along with volatility. The turnover of Litecoin, Dogecoin and Uniswap also decreased.In the forecast for the coming week, bitcoin is expected to decline to the levels of 47700, 47000, 46500, 46000 and 44000 dollars. Ethereum will fall to the supports of $ 3370, 3350, 3300, 3200 and 3000, and XRP will fall to the levels of $ 1.05, 1.03, 1, 0.98 and ...

Bitcoin price has risen to $44,800. Ethereum hit $3,125 and XRP was 81 cents. The total cryptocurrency market capitalization has increased to $1.83 trillion.On Sunday, bitcoin quotes for the first time since mid-May overcame the resistance of $45,000, but failed to gain a foothold above this level. Over the week, the price of the first cryptocurrency increased by 6.1%. According to cryptocurrency market analysts, the upward momentum will push the price of the first cryptocurrency to $53,000. This is evidenced by the imbalance between supply and demand. The bitcoin difficulty tape indicator, which consists of simple moving averages on the mining difficulty indicators, indicates a decrease in the volume of sales by miners, which has a positive effect on the price of the asset. The hash rate tape indicator, which consists of two moving averages of the hash rate of the bitcoin network, also speaks of the recovery of the fundamental indicator after the surrender of the miners. Some experts expect a short-term correction in the market, in particular noting the difference between the market price of bitcoin and the closing price of the corresponding contracts of the Chicago Mercantile Exchange. This situation may indicate an upcoming decline in quotations. Glassnode analysts said that the current growth of the first cryptocurrency is showing the impact of liquidations on the crypto derivatives market, and without improving on-chain metrics, it should be treated with caution.Ethereum also surpassed the important $3,000 level for the first time since early May. At the same time, the coin still remains 30% below its absolute highs recorded on May 12 at $4,362, but to a large extent it has won back the decline that has occurred during this time. Last week, the London update took place on the network, along with which a mechanism for burning Ethereum coins paid as commissions was introduced, which changes the principles of adding new transactions to the network and ultimately reduces the amount of miners' earnings. Now it is not users who choose commissions when sending transactions, but the network itself sets them based on the size of the previous block. The coins paid as commissions no longer go to the miners, but are burned, that is, they are sent to a specialized address to which no one has access, and are actually withdrawn from circulation. The developers find commissions on the Ethereum network too volatile, which in turn negatively affects the user experience. During increased load, computationally intensive transactions, such as exchanging tokens for Uniswap or interacting with other services in the decentralized finance space, can cost several hundred dollars. Recent changes are aimed at mitigating this problem, but not everyone welcomes them. It is estimated that after the launch of London, miners' revenues will fall by 20-50%. Despite the understandable discontent, it is expected that miners will not sabotage the process, since in this case they risk losing even those rewards that are still provided for them by the protocol.Although the annual emissions of Ethereum will decrease, it cannot be said that Ethereum will immediately become a deflationary asset. Some of the coins are already being withdrawn from circulation, but the specific dynamics of the coin issuance / burning ratio will depend on how actively users make transactions.Before the update, Ethereum gained 60% in two weeks, breaking the correlation with Bitcoin, which, despite recent gains, remains in its multi-month range. Some analysts admit that the cryptocurrency is now facing a period of decline, starting from the old trading principle of "buy on expectations, sell after the fact."In our forecast for the coming week, we expect the Bitcoin price to pull back to $44,400, $44,000, $43,000, $42,000, and $40,000. Ethereum will drop to the levels of $3100, $3000, $2970, $2930, and $2900, and XRP to prices of 80, 78, 75, 72 and 70 ...

The decentralized finance ecosystem (DeFi) has become one of the most promising and growing segments in the crypto space, reaching a total value of almost $ 100 billion in early May, according to The Block. And this is despite the general decline in the value of cryptocurrencies.Many tokens have risen sharply in price, as DeFi supporters continue to view these networks and platforms as pioneers of a changing paradigm that will revolutionize the financial industry.Given the growth of this sector and the recent drop in the value of cryptocurrencies, opportunities for investors seem very likely. To help you find promising tokens and projects, let's look at the new DeFi coins that are worth paying attention to in 2021.But first, let's talk about some aspects that make DeFi such a promising part of the crypto space.What is DeFi, and also why you should think about investing in DeFi coinsDeFi is short for decentralized finance. The DeFi ecosystem parallels the traditional financial industry and uses decentralized networks and smart contracts to exclude intermediaries from processes such as lending, borrowing, asset exchange and investing.Some DeFi protocols, such as Uniswap (UNI), Chainlink (LINK) and Maker (MKR), have become one of the largest tokens in the crypto space by market capitalization.Supporters of DeFi believe that these protocols will eventually act as a real replacement for financial institutions, brokerage firms and banks. Users will be able to make transactions with each other without having to pay an intermediary.However, although the ecosystem is promising because of its real-world application, it is still in its infancy. Investors have the opportunity to try to determine the next successful DeFi coin by analyzing several new projects.Kyber Network (KNC)The Kyber network is promoted as the "liquidity level" of DeFi. The protocol offers a reward to liquidity providers in the form of spreads received when exchanging various tokens through Kyber.Since DeFi is a new ecosystem, low liquidity often leads to a high level of price volatility, which opens up the possibility of manipulation by large players.Read more: Volatility: types, how to track and how to useTo eliminate this feature, the Kyber Network acts as an intermediary combining liquidity on the seller's side with liquidity on the buyer's side to increase the flow of liquidity.Kyber Network is an in-network liquidity protocol that combines liquidity from different sources to ensure fast and secure transactions in any decentralized application (DApp).Cryptocurrency: Cyber Network Crystal LegacyToken: KNCMarket capitalization: 123 million USDMaximum offer: 226 millionOutstanding: 205 millionHistorical maximum: 6 USD (January 9, 2021)Historical minimum: 0.11 USD (February 6, 2019)Since its creation in July 2020, the KNC token has grown by 155%, currently trading at 1.36 USD per coin. Interestingly, the total amount of KNC will be gradually burned, which should lead to higher prices over time if the demand for the token remains constant or high. The maximum total volume of the KNC offer is set at 226 million tokens. Progressive burning will occur every time a transaction is made through the Kyber network.According to Wallet Investor, the KNC token can reach 3.87 USD.Serum (SRM)Serum is a decentralized exchange built on Solana (SOL), a protocol similar to ethereum (ETH) that supports smart contracts. It was developed by FTX, a well-known exchange that offers access to derivatives, including options, volatile products and futures contracts for cryptocurrencies.Read more: What are futures: types, features, advantages and risksThe decentralized exchange operates on smart contracts and algorithms. They have become an inexpensive alternative to centralized analogues. In particular, Serum offers a fast execution time and low transaction fees of $ 0.00001 per transaction – a valuable offer that makes it one of the most promising DeFi coins in the future, especially because of the attractiveness of the platform for high-frequency traders and market makers.All commissions paid by traders in the Serum network are used by the system to buy and burn (B&B) SRM tokens. Burning gradually reduces the number of tokens. In a scenario where demand remains unchanged or gradually increases, a lower supply should eventually lead to a higher price for the token.Cryptocurrency: SerumToken: SRMMarket capitalization: 462 million USDMaximum offer: 10 billionIn circulation: 50 millionHistorical maximum: 12.89 USD (May 3, 2021)Historical minimum: 0.11 USD (August 11, 2020)The SRM token was introduced back in August 2020. During the first trading session, the SRM rose from 0.110 USD to 1.550 USD. At some point in early May, it soared to 13 USD per coin, and since June 9, 2021, it has been established at the level of 4.2 USD per coin. This is part of the fall of the latest negative momentum observed by cryptocurrencies in general.According to the forecasts of Wallet Investor, the price may rise to 14.64 USD per coin over the next 12 months.Dodo (DODO)The goal of Dodo is to change the way market makers and exchanges work by implementing an innovative protocol known as Proactive Market Marker (PMM). Most exchanges, including the popular Uniswap (UNI), use the Automated Market Maker (AMM) protocol, which uses liquidity pools to make transactions.According to this protocol, the market maker sets prices following a certain algorithm, and transactions can be executed immediately due to the liquidity provided by these pools. But this approach has its drawbacks, including a high level of slippage and short-term losses.Read more: What is Slippage in trading?Dodo aims to minimize these disadvantages by implementing its own PMM protocol, which uses oracle-driven algorithms to optimize transactions, reserves and other important market-making variables, enabling professional market makers and retail investors to implement their strategies without the limitations that other protocols often have.Cryptocurrency: DODOToken: DODOMarket capitalization: 122 million USDMaximum offer: 1 billionIn circulation: 110 millionHistorical maximum: 8.51 USD (February 20, 2021)Historical minimum: 0.06 USD (October 19, 2020)The DODO token was launched on April 1, 2021, that is, it is one of the last DeFi coins released this year. Since then, its value has decreased by 66.5%, as the development team said that hackers were able to steal a total of $ 3.8 million from some of the project's crowdpools.Read more: Who are Market Makers and what are they doing on the market?A total of $1.89 million was returned by one of the hackers, who turned out to be a white hat – a person who penetrates the network to discover its flaws and help developers improve the code and prevent further attacks.The remaining funds were not returned, and this undermined the credibility of the project. However, the DODO offer is still quite interesting, and with its current market capitalization of 155 million USD, the growth potential remains large as long as the development team can prevent further unauthorized intrusion into the network.According to Wallet Investor, in a year, the DODO token should reach a value of $8.15, based on an analysis of the latest price and trend actions.ConclusionDo you believe that these 3 new DeFi tokens expect rapid growth?Their projects look promising. Features such as buying and burning support bullish arguments in their favor due to the gradual reduction in the total supply of their tokens.Improvements in the technology and coding that support these protocols should lead to a higher level of trust in the sector and higher prices for the most successful projects and ...

Bitcoin as the first widely known cryptocurrency immediately took the place of a leader in the industry. A number of applied technological solutions in it, such as the use of blockchain technology, a distributed structure and anonymity, have become the main principles for other coins, which have been called alternative cryptocurrencies or altcoins.How to make money on altcoins, a list of the most promising coins of 2021 and other important information is further in our article.What are altcoins?Altcoins are alternative cryptocurrencies that, in addition to transferring value, offer users certain solutions that Bitcoin does not have.Despite the genius of bitcoin, created by Satoshi Nakamoto, the main cryptocurrency has a number of vulnerabilities. Altcoins, being inferior to Bitcoin in the scale of application and the balance of the internal structure, offer improved blockchain technologies and capabilities, unlike bitcoin, whose main function is the transfer of value.For example, such altcoins as Monero and Zcash offer anonymous transactions, and such an altcoin as Dash is easy to handle, has a high speed of asset transfer, and you can send it even without an Internet connection - just via SMS. The Tether stablecoin (USDT), is a US dollar in digital form.Types of altcoinsAltcoins, depending on their characteristics, can be divided into three groups.Unique altcoinsThese are altcoins that have exclusive technologies that are different from bitcoin. Examples include the Ethereum altcoin (ETH) with the function of smart contracts, or IOTA with its directed acyclic graph (DAG) technology, which is not a blockchain, or Dash (DASH) with its ability to transfer via SMS.StablecoinsSo-called stable coins, stablecoins designed to hedge financial risks, "digital havens", digital assets protected from volatility, which even the main cryptocurrency Bitcoin is subject to.These include such altcoins as Tether (USDT), TrueUSD( TUSD), Binance USD (BUSD), Dai( DAI), Gemini Dollar (GUSD).Read more: What are Stablecoins and how do they differ from other cryptocurrenciesAnonymous altcoinsConfidential cryptocurrencies aimed at users who want to hide their digital assets from prying eyes, whether it is the government or criminals.In addition to hiding wallet addresses and personal data of users, they also encrypt the movement of cryptocurrencies, transactions on the network, without disclosing information about the movement of funds from address to address.Most of the world's governments and financial regulators are extremely negative against this type of altcoins, calling them a tool for money laundering and terrorist financing.Earnings on altcoinsAltcoins, thanks to the constant fierce competition between projects and the rapid growth of the entire industry, offer enough ways to earn money for both experienced users and beginners. These methods can be briefly divided into earnings with investments and earnings on altcoins without investments.We can immediately say that the most realistic and effective way to improve your financial situation is precisely the ways of earning altcoins with investments.This both encourages the user to take a more responsible approach to the process of earning altcoins, and will help to avoid a long period of "swinging", during which the user will have to operate with amounts that at best barely exceed several tens of US dollars.We recommend reading: 11 ways how to make money on cryptocurrency with or without investmentsAltcoin earnings without investmentsLet's look at how you can earn altcoins without investing:AirdropAs you can understand from the name, alcoins "fall on you from the sky", that is, tokens are obtained for free. Many novice crypto projects want to introduce users to the capabilities of their cryptocurrency and send it to users who have completed simple tasks.Large amounts of altcoins should not be expected, but you will get the skills to work with cryptocurrency.Cryptocurrency faucetsYou perform a number of simple tasks on specialized Internet resources, such as viewing ads or selecting images for a very small amount of remuneration (on average up to $0.50 per 1 hour) and get altcoins.There is also no need to expect large sums, no matter how much time you spend on this type of activity.Subscription campaigns on BitcointalkThe most important forum dedicated to the topic of cryptocurrencies offers its users participation in subscription campaigns of various crypto projects in exchange for a reward in the form of tokens of this team.There are several pitfalls in this method, such as the status of the profile on the forum (the more prestigious it is, the higher your reward, respectively), the promotion of accounts on other platforms, access or ownership of a thematic Internet site. The better the situation in these matters — the better the bonuses and more altcoins.Read more: What is an airdrop of cryptocurrencies - is the game worth the candleAlso, the possible amount of remuneration in altcoins depends on the number of participants in the subscription campaign and the honesty of the team (there were precedents with non-payment and fraud).Affiliate programsBlockchain projects are interested in maximizing their influence and provide both site owners and well-promoted and popular social media accounts with the opportunity to earn money by providing a special referral link.For each user who clicked on such a link and performed the necessary action, the resource owner is given a bonus, usually in the form of payment with project tokens.Perhaps this is the most realistic and profitable way to earn altcoins without investment.Content on cryptocurrency topicsThe number of thematic cryptocurrency information resources is growing, and they constantly need high-quality specialized content. If you have the necessary knowledge and are able to coherently express your thoughts in printed form — this is a real way to earn good amounts both in altcoins or bitcoin, and in the usual fiat money.Ways to earn altcoins with attachmentsTradingIn fact, the same game on the stock exchange as in the case of stocks, futures or currencies. You will need the amount in altcoins, composure, the ability to "read the market", financial discipline and a lot of luck.Altcoins are very volatile digital assets, their price is constantly rising and falling, so if you have strong nerves and an excellent understanding of the situation on the cryptocurrency market, then you have every chance to multiply funds by correctly operating trading orders on cryptocurrency exchanges.Be especially careful with trading based on margin trading, since the wrong choice of "leverage", a bet, a traded asset or a crypto exchange can cost you all your savings, and literally in one second.Read more: How to invest in stocks and what you need to knowInvestingHere you will need savings, a deep understanding of the market and patience. Bitcoin is a direct demonstration of the high profitability of such activities with an increase from a few cents to tens of thousands of dollars for 1 BTC.Altcoins are not inferior to bitcoin in any way, and some of them have already shown impressive growth. But their stability is much lower than that of bitcoin, and in a bear market or during a crisis, they can devalue dozens of times!On the other hand, the price of altcoins at the moment is significantly lower than their previously reached maximum value and possible potential, and now, with a higher probability, is a very good time to enter them.The main condition for the success of investments in altcoins is the principle of distributing your funds among several promising projects (not investing all your funds in one promising project) and a very deep study of all available information regarding their technology, team, reputation of the founders and development prospects.Read more: Bulls and bears, as well as other animals on the stock exchangeYou should definitely study the latest news on projects, understand the trends of their development, analyze the project profile on Reddit.MiningMining is the extraction of altcoins through the provision of computing power for internal calculations of the project and support of its transactions.It is necessary to purchase either specialized mining devices (ASIC miners), or high-performance components for PCs or farms, depending on the consensus algorithm on which the altcoin works.It is also necessary to take into account the financial and time costs for servicing both the mining devices themselves, and for organizing the appropriate infrastructure for cooling them and blocking the noise coming from them.The cost of equipment is high, and the probability of profit is not obvious, since the volatility of altcoins or the increase in electricity tariffs can negate all the efforts of the miner.In addition, the time of private solo miners has long passed and to make a profit you will have to launch a very large number of ASICs, mining farms or join a pool for mining.Ways to earn money with investments, despite the real possibility of losing investments, offer the most effective methods of increasing cryptocurrency assets with competent financial management and endurance.Understanding the volatility of the cryptocurrency market and knowledge of the principles of blockchain technology, as well as a thoughtful analysis of the situation with the development of projects and the state of affairs in their teams will give you all the necessary tools for effective earnings on altcoins.Read more: Volatility: types, how to track and how to useAltcoins: list of top coinsList of altcoins from the TOP 20:Ethereum is the TOP 2 cryptocurrency by capitalization after bitcoin, the leading ecosystem for launching smart contracts and dApps;Binance Coin is a native cryptocurrency of the exchange of the same name;Cardano is the leading cryptocurrency for building blockchain 3.0, an ecosystem for launching smart contracts;XRP is a means of payment aimed at application in the banking sector;Dogecoin is a meme-cryptocurrency, the main purpose is a means of payment, supported by Elon Musk;Polkadot is a technology aimed at creating "bridges" between different blockchains;Uniswap is the most famous decentralized cryptocurrency exchange (DEX);Bitcoin Cash - payment method, a fork of bitcoin;Litecoin - payment method, a fork of bitcoin;Solana is a scalable blockchain with high throughput for running dApps;Chainlink is a network of oracles that allows you to upload any information to the blockchain;Wrapped Bitcoin - ERC-20 token secured by bitcoin;Polygon - a network for scaling the Ethereum blockchain;THETA is a streaming platform that works on the basis of blockchain technology;Ethereum Classic is a coin that appeared as a result of the Ethereum hard fork;Stellar is a fork of the XRP cryptocurrency.StablecoinsStablecoin is another altcoin (alternative cryptocurrency) created to solve the main problem of modern digital assets — high volatility and vulnerability to pumps and dumps on crypto exchanges.The cost of a stablecoin is usually tied either to one specific fiat currency or to their basket.Precious metals, such as gold or palladium, can also act as a stabilization fund that ensures the stability of the price of a stablecoin.Stable coins make it possible to save investors ' funds during high volatility in the cryptocurrency market or translate the results of activities into more understandable units of value, in the form of a digital version of the US dollar.The most popular stablecoins (according to the CoinMarketCap rating):Tether;USD Coin;Binance USD;Dai.Tether (USDT)The most popular stablecoin with the largest capitalization on the market. It was launched by the vice president of Starbucks in 2014. It is launched on several blockchains, including Tron, Ethereum, Solana and others.  USD Coin (USDC)An example of a pronounced stable cryptocurrency with its price pegged to the US dollar. This stablecoin is managed by two of the largest companies in the crypto industry — Coinbase and Circle and is an ERC-20 token, using the Ethereum blockchain as the basis.Binance USD (BUSD)A native stablecoin on the exchange of the same name, launched on the Binance Chain blockchain. It is one of the top coins in its segment, thanks to trading without commissions on Binance.TrueUSD (TUSD)Another stablecoin, also pegged to the value of the US dollar. The developer of this altcoin is the TrustToken company, which positions this coin as an alternative to the scandalous Tether token (USDT) with its extremely controversial situation with a failed audit.Gemini Dollar (GUSD)The brightest representative among the stablecoins, a token from the famous Winklevoss twins. This stablecoin is approved by the NYDFS itself, known for its extremely tough position on issues related to cryptocurrencies, which indicates the impeccable reputation of the project.JPM Coin (JPM)Altcoin from the giant of the financial world JP Morgan, the largest US bank. This cryptocurrency is in fact an internal token of a closed blockchain and is used exclusively within JP Morgan to work with large institutional clients of the company.Diem (formerly Libra)The sensational cryptocurrency project from Facebook. Altcoin was supposed to be provided with a whole basket of assets made of currencies and precious metals and provide access to an instant payment system, but at the moment it has met fierce resistance from financial regulators and governments around the world and is now winning back its right to exist.What will happen next with this altcoin is still unclear, it may be banned.DAIThe first decentralized stablecoin using the Ethereum blockchain. It is more open compared to other stablecoins and its issue does not cause any questions from market experts.Altcoins, like bitcoin, provide all the possibilities of blockchain technology, while the user can find and use altcoins for almost any task or orientation, without making compromises.Using stablecoins, you will avoid volatility, the main scourge of this industry, and using anonymous cryptocurrencies, you will be able to keep assets secret from unnecessary attention from third parties.In the case of investments with a high level of risk, altcoins will provide you with much more interesting opportunities, and in the case of earnings, competition between individual altcoins will play into the hands of both you and the entire cryptocurrency market.Read more:What are AltcoinsAltcoins for ...

According to the DeFi Pulse service, the value of digital assets blocked in DeFi protocols has demonstrated explosive growth and has grown from $1 billion in 2019 to $15 billion in 2020. Another growth jump-up to $87 billion - was recorded in May 2021. At the same time, DeFi is still at an early stage of its development. In this article, we will tell you what DeFi is, how it works, whether there is a future for this technology and how to make money on DeFi tokens.ContentHow DeFi worksDeFi: what is it in simple wordsAdvantages and disadvantages of DeFiHow to make money on DeFiHow to invest in DeFiHow DeFi worksDeFi is a financial instrument in the form of services and applications created on the blockchain. The main task of decentralized finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open source protocols. That is, to open access to decentralized lending and new investment platforms to a large number of people, as well as to allow them to receive passive income from cryptocurrency assets.Most of the existing DeFis are created on the Ethereum blockchain, and the number of new applications in the field of decentralized finance is steadily growing.The pioneer among the DeFi applications that have gained wide popularity was the MakerDAO platform, launched at the end of 2017. Since then, the total amount of funds placed in DeFi protocols (TVL, Total Value Locked) has been constantly growing, and faster. So, in May 2018, TVL was $150 million, in May 2019 – $500 million, in May 2020 – $950 million, and on May 12, 2021, the figure reached a record $87 billion.DeFi: what is it in simple wordsDeFi uses various technologies developed in the field of blockchain. All of them find application outside of decentralized finance, but they play an important role in the DeFi ecosystem.According to a joint study by Wharton Blockchain and Digital Asset and the World Economic Forum, there are several components of what DeFi is.First of all, DeFi projects are blockchains, distributed registries for recording transactions. Currently, most DeFi services work on the Ethereum network due to its capabilities and popularity among developers. However, the activity of DeFi is also growing in other blockchains.Then there are digital assets, that is, DeFi tokens that represent value that can be sold or transferred in the blockchain network. “Bitcoin and other cryptocurrencies were the first blockchain-based digital assets. Others have a number of functions that go beyond payments”, the study notes.The next component is wallets: software user interfaces for managing assets stored in the blockchain. With the help of a non-custodial wallet, the user fully controls his funds through private keys. In the case of custodial wallets, the private keys are managed by the service provider.Another important block of the ecosystem is smart contracts. It is a blockchain-based program code that executes, monitors and documents relevant events and actions in accordance with predefined conditions and rules.Based on smart contracts, decentralized applications (DApps) are created, which are often integrated with the user interface using traditional web technologies, and decentralized autonomous organizations (DAO): organizations whose rules are defined and regulated using smart contracts.The next step is stablecoins (digital assets whose value is tied to a fiat currency, a basket of fiat currencies or other assets with a stable value).Software mechanisms that manage changes in smart contracts or other blockchain protocols are embedded in DeFi management systems. They are often based on tokens that distribute voting rights among interested parties.Read more: What are Stablecoins and how do they differ from other cryptocurrenciesAdvantages and disadvantages of DeFiAdvantagesTransparencyInclusivityCross-border natureDisadvantagesLow system performanceRisk of user errorRandomnessThe advantages of decentralized financial services have been known on the market for quite a long time. This is also decentralization: DeFi tokens allow you to conclude transactions between users using a variety of computers of other participants, and the absence of a human factor. Decentralized finance (DeFi) works on the basis of smart contracts, which eliminates the human factor.We can also mention transparency – the DeFi market is created on the basis of source code. All information about transactions is always available to any user. Therefore, such applications will easily pass an honest audit.The second significant advantage of the ecosystem, experts call inclusiveness, that is, the ability to launch a DeFi product for any project, without the permission of banks and regulators.Another strong feature of the DeFi system is its cross-border nature. Here you can use financial services without intermediaries. Loans are issued in a few clicks at home, without bureaucratic red tape and draconian interest rates.However, this new tool certainly has its drawbacks.Experts attribute low system performance to them. Blockchains are inherently slower than their centralized counterparts, which leads to the creation of additional applications. Developers of DeFi applications should take into account such limitations and optimize their products accordingly.There is a high risk of user error within the system. DeFi applications transfer responsibility from intermediaries to the user. This can be a negative aspect for many. Developing products that minimize the risk of user error is particularly challenging when products are deployed on top of immutable blockchain networks.Another factor of instability in the ecosystem is its chaotic nature. Finding the most suitable application can be quite a difficult task, along with this, users must have a certain skill to choose the best option. According to experts, the problem is not only in creating applications, but also in thinking about how perfectly they can fit into a large ecosystem of decentralized finance.How to make money on DeFiDespite some instability and high risks, DeFi tokens allow you to earn money. Experts talk about three popular ways to make a profit using the ecosystem.Commissions from transactionsThe investor places liquidity (cryptocurrency) on a decentralized crypto exchange and receives a share of the commission from trading transactions. The commission is usually 0.25-0.3% and is divided between liquidity providers according to their share in the pool.The more active the trading is, the more commission income the protocol receives and the higher the yield, but in many pools it can also be negative. The maximum value is 0.27% for 30 days, that is, about 3.2% per annum. In smaller pools, you can earn more, but the risks are much higher.CryptolendingThe investor contributes part of the funds to the pool of the landing protocol, and this money is issued as loans. This service is popular, first of all, among traders who are not satisfied with the conditions offered by a centralized crypto exchange.The borrower must place a pledge in the amount of more than 100% of the loan amount (sometimes 150% and even 200%); in case of non-payment of the debt, this pledge is automatically liquidated (sold), so that the lender gets his money back in any case.The yield depends on the currency of the loan and is constantly changing. The highest rates are usually for stablecoins - USDT, USDC and DAI (up to 15%).Profitable farmingThe standard scheme is as follows: an investor buys a token, most often Uniswap, and places it in the liquidity pool of a trading or landing protocol. And as a confirmation of participation in the pool, he receives special LP tokens, which are deposited (staked) on a special smart contract.Immediately after the launch, projects often pay large farm bonuses, so that the nominal yield can reach 1000%. Gradually, the number of tokens distributed every week decreases, but the yield still remains at the level of 50-100%.It should be remembered that this profit is nominal, and the real income will depend on the price of the token.How to invest in DeFiHowever, before you give your liquidity to other users, you need to enter the ecosystem. The most popular "door" is the world's largest stablecoin by capitalization — Tether (USDT).Unfortunately, it is impossible to buy this stablecoin inside the DeFi application. The most reliable and at the same time the easiest way is to buy USDT from a bank card in a regulated crypto exchange. It is quite easy to register in such an exchange, and this process will not take much time from a potential investor.Also, to participate in DeFi, you will need a MetaMask wallet, which is supported by all DeFi protocols. Next, you need to send the purchased USDT to MetaMask, and then link the wallet to the selected DeFi protocol. Usually, the DeFi application itself offers to do this. After establishing a connection with the wallet, you can place funds on the protocol.However, the complexity of DeFi is not in the mechanism of placing funds and generating income, but in the choice of high-quality projects. Therefore, experts advise to keep in mind the risks and enter resource applications with a small ...

Decentralized applications (DApps) - more resistant to attacks and transparent applications that have become possible thanks to the blockchain. Thanks to such decentralized applications, Bitcoin and Ethereum actually appeared. Now dApps help to solve the most complex tasks within cryptocurrency projects, and without them it is already impossible to imagine an ecosystem of digital currencies. We will tell you what DApps are for and give examples of decentralized applications.ContentHow DApps workCommon features of decentralized applicationsClassification of DAppsAreas of application of DAppsAdvantages of DAppsPromising projects using DAppsHow to create DAppHow DApps workIn order to understand what DApp is, you need to refer to the definition of blockchain. This is a register of records that are stored in "blocks" that are linked by cryptographic verification. All actions are performed as a result of consensus.The register is not stored in a centralized location, it is not managed by a single organization. The block validation system leads to the irreversible addition of new transactions, and old records are saved forever and for everyone.The second important factor for understanding DApp is the difference between decentralization and distribution. A distributed system is a network consisting of autonomous computers. The components interact with each other to achieve a common goal. Decentralized computing is the allocation of resources for each individual workstation. This means that neither node informs the other what to do and how to do it. Therefore, decentralized applications — DApps are applications that run on a network of P2P computers.Read more: P2P: where peer-to-peer networks are usedCommon features of decentralized applicationsProduct decentralizationTokens are generated inside the productMaking a profit inside the systemThere are several common features of DApps. First, it is the decentralization of the product, when records are stored in an open, publicly available block chain-usually it is open source. This is followed by the cryptographic component: tokens are generated inside the product. Third, it is important to note the profit within the system, when tokens are awarded to miners or validators, as well as other community members.In addition, the application must generate tokens in accordance with a standard cryptographic algorithm that acts as proof that the nodes contribute to the application (for example, PoW or PoS).If we take the most universal definition, the first DApp is actually bitcoin itself. This is an implemented solution on the blockchain, a self-supporting public ledger that allows you to conduct effective transactions without intermediaries and centralized authorities.In turn, the most popular DApp - Ethereum, written in its own language, allows developers to create smart contracts on the Etinerum Virtual Machine (EVM). Now almost 1000 applications built on Ethereum are registered.The Ethereum platform allows everyone to write smart contracts and decentralized applications (DApps), where you can choose your own rules for the ownership of funds, the format of transactions and other functions, so applications can serve different spheres of life: from finance to healthcare. They allow you to build an interaction between two or more participants.Classification of DApps Depending on how decentralized applications (DApps) interact with the blockchain, they can be divided into three types.The main types of DApp applications:On its own blockchainBased on an existing blockchainThey have a mechanism for issuing tokensThe first type includes applications that run on their own blockchain, for example, the Ethereum platform.The second type includes applications that are developed and work on the basis of an existing blockchain. The most popular blockchain platforms for DApp of this type are Ethereum, Tron, EOS. An example of the second type of DApp is the MakerDAO protocol, which allows converting ETH cryptocurrency into DAI stablecoins. At the same time, MakerDAO is based on the Ethereum blockchain.The third type is applications that have a mechanism for issuing tokens. For example, the Augur application, which in April 2020 switched from using the Ethereum blockchain to using the MakerDAO protocol in order to reduce volatility.Let's say that your computer has an operating system — Windows, macOS or Linux. This is an analog of the first type of DApp . To access the Internet, you use a browser that is designed for a specific operating system — for example, Safari for macOS or Microsoft Edge for Windows. This is an analog of the second type of DApp . Your browser has extensions — for example, the Translate Safari translator, which is designed for a specific Safari browser. This is an analog of the third type of DApp .Read more: What are Stablecoins and how do they differ from other cryptocurrenciesAreas of application of DApps Many DApps are associated only with cryptocurrencies, but their scope of application is much wider. One of the most popular sites is the Auctionity auction. Thanks to smart contracts, online auctions become as transparent as possible, since the system automatically records the time and size of bids, excluding manipulation.In the field of online games, DApps offer users applications with built-in marketplaces, where players can already buy and sell their items using NFT technology.One of the first decentralized games was CryptoKitties, developed on the Ethereum blockchain. It caused such a stir that the number of transactions on the network reached a record, overloading the blockchain.Where DApps are used:Online auctionsOnline gamesDeFi appsDecentralized Financial Applications (DeFi) are another popular type of DApp . They simultaneously provide transparency and confidentiality of data. The distinctive features of DeFi include their accessibility: everyone who has an Internet connection can use the financial system. The most popular decentralized application from the world of DeFi is the Uniswap cryptocurrency exchange.Decentralized applications (DApps) began to appear in 2017, and the main period of growth occurred in 2019. The largest number of DApps is created on the basis of smart contracts in the Ethereum ecosystem.During the formation of the DApps' market, the question arose about the need to track, evaluate and simply search for various decentralized applications created in different blockchains.Read more: What is NFT and why are they worth millions?Advantages of DApps Stability of operationTransparencyLack of censorshipThe main advantage is the stability of the work. On the servers, regular applications may experience temporary problems or technical work. For example, you go to Instagram and see only the interface, and the images are temporarily not loaded. DApps servers are located on the devices of the users themselves, so they will work until the moment when there is at least one user on the network.The next plus of such applications, according to experts — is transparency. At any time, any user can view the open source code of the application.There are no functions hidden for the user in DApps. For example, a decentralized application cannot collect users' personal data in secret from the community. If it collects personal data, then the part of the code responsible for this will be publicly available.Another argument in favor of such applications is the lack of censorship by the state or the developer. Corporations cannot buy out a decentralized application and then change the terms of use, functionality, or close it altogether. Any changes must be confirmed by the community.If you use DApp, it will only change according to the preferences of the majority of users.Promising projects using dAppsThe VeChain project is focused on the introduction of blockchain technology into the work of corporate structures, as well as on the development of the Internet of Things (IoT). In turn, the NEO blockchain is positioned as an open network for the "smart economy". In total, 13 DApps are launched on it, of which the most popular are the gaming NEOLand and Switcheo. In September, there was a surge in activity — more than 2000 active digital wallets, but the average for the year was 250.The Waves blockchain has only recently been used to launch DApps, the number of which is 21 applications. These are mainly gaming DApps, of which the most notable are Dice Roller, Coin Flip and Ride on Waves. The maximum of active digital wallets was observed in October — more than 500 per day, and at the end of the year this figure was about 200.The WAX blockchain project was launched in December 2019 with a focus on decentralized gaming applications, and 26 DApps are already working on the network. The game application Prospects and the social network KARMA are also popular.How to create DAppPublish white papersConducting an ICO or IPOProduct developmentFirst, publish an official document on DApp with a "roadmap". As a rule, these are white papers that explain the concept, functions and technical characteristics of DApp. This step is important because it allows you to get feedback from the community.As part of the "white papers", highlight the opportunities and history of the best developers of your project in order to gain trust and reliability among the community.The second step is to conduct an ICO or IPO. ICOs are the starting point of modern startups or DApp. However, recently, the ICO is coming to naught, and an IPO is coming to replace it.It is very important to explain all aspects of your DApp here. In addition, it is worth telling interested community members whether your decentralized application will use tokens or mining. To strengthen the trust of the community, specify how much money will be spent on development, marketing and other necessary expenses.It is important to be open with the distribution of tokens, because most DApps projects have destroyed their reputation in the past due to lack of transparency. After preliminary preparation, as a rule, product development begins. At this stage of app creation, it is critical to share weekly or monthly updates on development progress in order to create an inclusive environment for community members.After the launch of the product, continue to support and change it as necessary in accordance with the roadmap, strategic vision and opinion of the community.Read more: What is an ...