Pro Yearly is on sale from $80 to $50! »

Decentralized Finance Ecosystem: A Cross-Chain Study

Decentralized Finance Ecosystem: A Cross-Chain Study

F72cefdfe57f86372f5a5ef16e1f1baf?s=128

Over The Block

October 11, 2020
Tweet

Transcript

  1. STRATEGIC INSIGHTS ON BLOCKCHAIN INNOVATION DECENTRALIZED FINANCE ECOSYSTEM: A CROSS-CHAIN

    ANALYSIS Roberto Moncada, Enrico Ferro LINKS Foundation
  2. STRATEGIC INSIGHTS ON BLOCKCHAIN INNOVATION Overtheblock is a LINKS Foundation’s

    initiative aimed at promoting a wider awareness of the opportunities offered by the advent of exponential technologies in reshaping the way business is conducted and society is governed.
  3. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 Contents

    1. What is DeFi? 2.Blockchain infrastructures analysis 3.DeFi ecosystem
  4. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 SESSIONE

    SOTTOTITOLO Aliquam nibh augue, elementum et mi tincidunt, ornare ornare nisl. Quisque dapibus dolor eget lectus mollis, quis porttitor nisl maximus 1. What is DeFi?
  5. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 TRANSPARENCY

    All users have access to transaction data stored on the blockchains while still maintaining privacy (at least for public blockchains). What is DeFi? Solutions to CeFi critical issues AUTONOMY FINANCIAL INCLUSION No trusted third parties are needed. DeFi is based on non-custodial management of assets. DeFi can foster financial inclusion providing the possibility to have access at least to essential financial services (e.g., transaction account, savings deposit). DeFi is a decentralized financial system composed of dApps, developed upon permissionless or (public) permissioned blockchains, that grant access to financial services through the execution of smart contracts, provided that an Internet connection is available.
  6. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 DeFi

    Medium of Exchange Currencies and cryptocurrencies For the DeFi ecosystem to exist, there must be a circulating medium of exchange that we define as currency in the traditional system while in the DeFi context, we call cryptocurrency. If, on the one hand, fiat money is generally under the monopolistic control of CBs, on the other, cryptocurrencies represent a form of unregulated and programmable digital money that is consensually accepted by the community members of the blockchain. New transactions are performed through the implementation of a consensus algorithm. Hence, it is on the community and algorithm that the DeFi bases its functioning.
  7. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 SESSIONE

    SOTTOTITOLO Aliquam nibh augue, elementum et mi tincidunt, ornare ornare nisl. Quisque dapibus dolor eget lectus mollis, quis porttitor nisl maximus 1. What is DeFi? 2. Blockchain infrastructure analysis
  8. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 Blockchain

    Infrastructure Analysis Selection criteria 1 2 3 The Market capitalization of the blockchains’ native cryptocurrencies. The permissionless and public permissioned nature of the platforms. The platforms predisposition towards financial innovative objectives. The analysis focuses on eight blockchain infrastructures with the aim to present the technical scenarios within which the DeFi ecosystem has proliferated in the last years. The selection criteria of the blockchains are essentially three:
  9. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 BLOCKCHAIN

    BITCOIN ETHEREUM TRON STELLAR EOS TEZOS NEO CARDANO Accessibility Permissionless Permissionless Permissionless Permissionless Permissioned (Public) Permissionless Permissioned (Public) Permissionless + Permissioned Consensus Mechanism PoW PoW → PoS DPoS SCP BFT-DPoS LPoS DBFT Ouroboros PoS Cryptocurrency Issuance Method Mining Pre-Mined (72 million) + Mining Pre-Mined (65 billion) Pre-Mined (100 billion) Pre-Mined (700 million) Pre-Mined (≅763 million) Pre-Mined (50 million) Pre-Mined (30 million) Cryptocurrency Symbol BTC ETH TRX XLM EOS XTZ NEO ADA Cryptocurrency Total Supply Limited (21 million) Unlimited Limited (100 billion) Unlimited Unlimited Unlimited Limited (100 million) Limited (45 billion) Blockchain Uses Transaction Platform Fuel Issuer + Smart Contracts and dApps Deployment Web Decentralization + Smart Contracts and dApps Deployment + Entertainment Industry Transaction Platform + Smart Contracts Deployment Transaction Platform + Smart Contracts and dApps Deployment Self-Amending + Smart Contracts and dApps Deployment Assets Digitalization + Smart Contracts and dApps Deployment Fuel Issuer + Smart Contracts and dApps Deployment Target Audience Individuals + Businesses Individuals + Businesses Individuals + Businesses Individuals + Businesses Individuals + Businesses Individuals + Businesses Individuals + Businesses Individuals + Businesses Market Capitalisation ≅ € 178.6 B ≅ € 23.6 B ≅ € 1 B ≅ € 1.4 B ≅ € 2.5 B ≅ € 2 B ≅ € 700 M ≅ € 1.5 B Creation Year 2008 2014 2017 2014 2018 2018 2014 2017
  10. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 SESSIONE

    SOTTOTITOLO Aliquam nibh augue, elementum et mi tincidunt, ornare ornare nisl. Quisque dapibus dolor eget lectus mollis, quis porttitor nisl maximus 3. DeFi ecosystem
  11. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 DeFi

    Ecosystem Financial services categorization Borrowing and Lending 01 02 03 04 05 Exchange Deposit / Asset Management Derivatives Stablecoin Issuance Users can exchange tokens (even of different blockchains) not only for utility reasons but also to take advantage of rising and decreasing prices. Users can access non-custodial dApps to manage funds and digital assets, monitoring their investments directly. Users can invest in synthetic tokens whose value is anchored to the underlying asset's price through dApps that allow tokenizing every kind of asset. Users can exploit the issuance of tokens characterized by minimal fluctuation rates that are generally fiat-backed or crypto-backed. Users have access to P2P lending platforms, where borrowers can obtain funds over- collateralizing (generally at 150%) a loan by blocking (not selling) their digital assets.
  12. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 BITCOIN

    ETHEREUM TRON STELLAR EOS TEZOS NEO CARDANO Borrowing & Lending Exchange / Trading Deposit / Asset Management Derivatives Stablecoin issuance AnchorUSD
  13. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 DeFi

    Map Results summary The map above summarizes the information collected during the analysis, presenting the actual DeFi ecosystem since the first execution of smart contracts in 2014. BITCOIN ETHEREUM TRON STELLAR EOS TEZOS NEO CARDANO Borrowing & Lending Exchange / Trading Deposit / Asset Management Derivatives Stablecoin issuance No dApps available for that service At least one dApp offers that service
  14. overtheblock.io COPYRIGHT ©2019 LINKS TORINO | XX SET 2020 CONTACTS

    Over The Block STRATEGIC INSIGHTS ON BLOCKCHAIN INNOVATION overtheblock@linksfoundation.com overtheblock.io COPYRIGHT ©2019 LINKS POWERED BY Via Pier Carlo Boggio 61 | 10138 Torino (Italia)