De-Fi Lending: Flash Loans
What is a Flash Loan?
Flash loans are an increasingly popular financing option in the world of De-Fi. As a reminder, a flash loan is a trustless, no collateral loan system, where transactions all happen within the same block of a blockchain. If a borrower does not pay back the flash loan, using the smart contracts of the blockchain protocol, the transaction is essentially voided as though it never happened. Fees for flash loans are generally low because of low risk on account of the smart contracts, and loans open & close in the time it takes to complete a transaction. read more.
Cryptocurrency Regulation
The Future of Cryptocurrency
Regulations Varying by Locality and Nation
Because cryptocurrency remains a nascent field, the regulation for the market also remains relatively undeveloped. Depending on both the nation and even sometimes the smaller localities, cryptocurrencies can receive extremely varying treatment. read more.
De-Fi Lending: Introduction
The Banking Business Model
The Classic Framework for Saving & Lending
Banks have historically offered main services: deposit accounts where clients can safely store money and loans where applicants can apply to be given money for interest in return.
Once depositors put their money in the bank, the bank then pools this money and lends it out to the borrowers. Depositors receive interest for keeping their money at the bank, and borrowers pay interest to borrow money. The difference between these two interest rates becomes the bank’s earnings. read more.
Crypto Adoption – Measurement, Data and Current State
Definition of Crypto Adoption
The adoption (rate) of cryptocurrencies is an often-stated metric used to assess the prevalence and dissemination of these in economies and jurisdictions globally. Nevertheless, crypto adoption can refer to many different layers of perspective, whether one is taking a macro view on a whole economy or simply describing the acceptance of cryptocurrencies as a means of payment by businesses, with one layer influencing the other of course. As an example, for the latter one, Tesla’s announcement to accept Bitcoin as payment would be one kind of crypto adoption, potentially leading to more people in the respective economy to hold and trade cryptocurrencies. read more.
