The Graph is a show in view of tecnología blockchain, which has the justification behind filling in as a data indexer on other square chains. This to develop a decentralized informational index that updates permission to the information contained in said blockchain. Thusly, various undertakings that need this information at a given time can get to the normal information in a considerably more compelling and faster manner. To achieve this, The Graph has built an entire structure maintained by two amazing advancements: Ethereum (ETH) e IPFS. The primary allows the development of an association of interoperable center points to which information trades are connected alongside a neighborhood token for the stage. While the second enables the creation of an association of center points to store information in a decentralized, secure and high speed way. Consequently, The Graph opens up to designers of dApps induction to a phase that speeds up their sales for information and helps them with encouraging a cross-chain participation system easily.

About Graph (GRT) crypto

The Graph is a decentralized show that engages clients to rundown and glance through data from blockchains. This makes it plausible for individuals or relationship with hard-to-request information, for instance, Ethereum trades on the blockchain, to make them accessible in a really addressed way.

Applications using GraphQL can address open APIs, which are called subgraphs. By scrutinizing these open data sources on the association, originators will really need to recuperate recorded information in a serverless environment with The Graph.

Requesting data from blockchains has transformed into a critical issue as progressively more blockchains and dApps are emerging lately. It is really difficult to examine or get data from projects with complex splendid arrangements like Uniswap from Ethereum Network.

In case you truly need to perform complex data access, for instance, scrutinizing the metadata or taking care of each trade from a blockchain, it would require hours or even days. Having a certain server to process and save data to its own informational collection is moreover a decision. In any case, there will be extra turn out expected for upkeep and security.

Thusly, The Graph settles this issue with a decentralized show that records and engages the performant addressing of blockchain data.

How does The Graph function?

Accordingly, the most un-requesting technique for explaining what The Graph does to blockchains is comparable to how Google achieves for looking.

The undertaking utilizes “Subgraph Manifest” to list data from the Ethereum Network. This insinuates the data considering subgraph, which contains data from splendid arrangements, blockchain events or trades.

All data from decentralized applications that are added to the Ethereum blockchain through splendid arrangements are composed in a particular stream. The essential stage begins with trades, followed by subgraph shows in conclusion an informational collection.

The Graph Node is the second piece of the data taking care of framework. It takes in all blockchain information and searches for any that matches client inquiries to make a record, which makes scrutinizing significantly more straightforward.

GraphQL is a strategy for passing on data from the blockchain into an application that has been referenced. It does this through Graph Nodes, which then, passes delayed consequences of requests back on to clients’ applications directly following searching for them with their request.

What Does The Graph (GRT) Network Consists of?

The Graph Network is made out of Indexers, Curators, and Delegators who feed data to Web3 applications and deal kinds of help to the association. Buyers partner with the applications and consume the data.

Individuals stake and use GRT tokens to guarantee the monetary security of The Graph Network and the decency of data addressed. GRT is an ERC-20 token on the Ethereum blockchain that is used to administer network resources. Dynamic Indexers, Curators, and Delegators can give benefits and acquire cash from the association taking into account their organizations and stakes.

Engineers

The fashioners can use the subgraph studio used expressly for subgraphs that can document the Ethereum mainnet. The architects can similarly use worked with organizations through which they record networks that are accessible outer to the Ethereum mainnet.

Indexers

Indexers are center directors in The Graph Network who offer requesting and request taking care of organizations as a trade-off for GRT. Question charges and requesting rewards are paid to them as a trade-off for their undertakings. They also benefit from the Cobbs-Douglas Rebate Function, which disperses a Rebate Pool somewhat to crafted by all network benefactors.

The Graph is a show in light of tecnología blockchain, which has the justification for filling in as a data indexer on other square chains. This to build a decentralized informational collection that overhauls induction to the information contained in said blockchain. Thusly, various assignments that need this information at a given time can get to the normal information in a significantly more successful and faster manner. To achieve this, The Graph has built an entire structure maintained by two astonishing advancements: Ethereum (ETH) e IPFS. The primary allows the development of an association of interoperable centers to which information trades are connected alongside a neighborhood token for the stage. While the second engages the creation of an association of center points to store information in a decentralized, secure and high speedway. In this manner, The Graph opens up to specialists of dApps induction to a phase that speeds up their sales for information and helps them with cultivating a cross-chain collaboration system easily.

The Graph is a decentralized show that enables clients to rundown and glance through data from blockchains. This makes it possible for individuals or relationship with hard-to-request information, for instance, Ethereum trades on the blockchain, to make them accessible in a addressed way.

Applications using GraphQL can address open APIs, which are called subgraphs. By scrutinizing these open data sources on the association, originators will really need to recuperate recorded information in a serverless environment with The Graph.

Requesting data from blockchains has transformed into a critical issue as progressively more blockchains and dApps are emerging lately. It is genuinely difficult to scrutinize or get data from projects with complex splendid arrangements like Uniswap from Ethereum Network.

In case you truly need to perform complex data access, for instance, scrutinizing the metadata or dealing with each trade from a blockchain, it would require hours or even days. Having a verifiable server to process and save data to its own informational collection is similarly a decision. Regardless, there will be extra turn out expected for upkeep and security.

Hence, The Graph settles this issue with a decentralized show that documents and enables the performant addressing of blockchain data.

The Graph’s network applications

Thusly, the most un-requesting technique for explaining what The Graph does to blockchains is identical to how Google achieves for looking.

The errand utilizes “Subgraph Manifest” to list data from the Ethereum Network. This suggests the data considering subgraph, which contains data from splendid arrangements, blockchain events or trades.

All data from decentralized applications that are added to the Ethereum blockchain through splendid arrangements are composed in a particular stream. The essential stage begins with trades, followed by subgraph shows finally an informational collection.

The Graph Node is the second piece of the data dealing with framework. It takes in all blockchain information and searches for any that matches client inquiries to make a record, which makes scrutinizing much easier.

GraphQL is a strategy for passing on data from the blockchain into an application that has been referenced. It does this through Graph Nodes, which then, passes delayed consequences of requests back on to clients’ applications following searching for them with their request.

What Does The Graph (GRT) Network Consists of?

The Graph Network is made out of Indexers, Curators, and Delegators who feed data to Web3 applications and proposition sorts of help to the association. Buyers partner with the applications and consume the data.

Individuals stake and use GRT tokens to guarantee the monetary security of The Graph Network and the decency of data addressed. GRT is an ERC-20 token on the Ethereum blockchain that is used to supervise network resources. Dynamic Indexers, Curators, and Delegators can give benefits and acquire cash from the association taking into account their organizations and stakes.

Becoming a crypto millionaire is not as easy as it sounds. However, with the right investment strategy, you can make it much easier. To do this, you must avoid common mistakes in investing in cryptocurrencies.

People often lose money because of personal mistakes. This is a serious problem because it is very difficult for those who do not have enough knowledge of this technology to use and maintain multiple digital currencies. Not many mistakes can be made in this area and some mistakes may cause you to lose all your assets.

In an effort to ensure that crypto enthusiasts have a lucrative future, we have selected a final investment strategy for digital currencies that includes a list of common mistakes that should be avoided when investing in crypto space. By learning from the mistakes of other investors, you will be able to potentially avoid increasing costs and potential losses. Even if you make these mistakes, do not be hard on yourself and focus on growth. To help you, some of the most painful and common mistakes that are commonly associated with entering the crypto world, and a list of the biggest mistakes of crypto investors are given in this article, so stay tuned.

Common Mistakes in Cryptocurrency Investments

When investing in the world of cryptocurrencies you may encounter many mistakes that can cause you to lose your assets. We will try to tell you all the common mistakes in digital currency investing below

You are looking for cheap coins to invest in!

According to celebrities, one of the mistakes is to chase cheap coins in the hope of buying a Lamborghini and a private jet. Many untrained investors in crypto buy low-priced digital currencies and think they will have a better chance of making a profit!

For example, if such a person were offered two coins priced at $75 and $0.01, they would most likely buy the blindfolded coin for $0.01; because he thinks he will be able to double his fortune, and this coin is more likely to go from one cent to two cents. In fact, this is not true and is a common trap.

There are many factors that affect the price of a coin, including two important factors: its current inventory and the value of that coin in the world. Usually a cheap coin has a lot to offer. The number of coins in circulation can exceed one billion coins, in which case it is clear that the price of each coin will go down. If supply is high and there is little demand in the real world, the price of a traditional coin will not be lower than its real price, and its price should remain the same.

When looking for coins with high growth potential, there is another important factor to consider, and that is the market value of those coins. Market volume is calculated by multiplying the number of coins in circulation by the current price and is often a better indicator of the value of a coin by investors; although this indicator is not perfect.

If you want to find the next most valuable coin, look for coins that have a lower market size than other coins. These quinces will have more potential for growth if they climb; yet there are more risks involved. These are risks such as project failure, lack of liquidity and so on. Finally, if you are an amateur, you should avoid such coins, and when you put a currency in your shopping cart, you should only focus on its potential in the real world. So do not be fooled by cheap coins.

You think that you are always on the right track

We are sorry to say this, but you have to overcome yourself. You are not always right and if you make a mistake, it is not a problem. It must be said that investing is a risky game and luck is involved in it.

To succeed in this space, you need to tell only X% of the time correctly and predict correctly. For instance, if you can double your capital 51% of the time, then you will be able to lose it 49% of the time; if you have invested the same amount in all investments. Investing is a systematic game that if you are at a loss, you have to stop it, and if you are at a profit, you have to make a profit and plan.

You know less about commissions!

Use your time and research to choose the right exchange with the best commission. Coinbase Pro and Binance are two of the largest and most trusted digital currency exchanges with reasonable fees.

People who are just starting out are trying to make many trades a day to earn one percent here and five percent elsewhere. Although in theory, the idea of ​​these people seems good, but eventually they will fall victim to commissions. There are a number of in-depth savings strategies involved in saving commissions that you should be aware of. When making a profit, make sure you make it after paying the commission.

You invest your life savings!

The first law of investing is that we should not invest more than we can afford to lose. This means being prepared to lose what you have invested. Ultimately, as the price goes up and down, you need to stay calm and still have a healthy life and be able to spend normally. We have heard countless stories of fear from people who have greedily invested all their life savings or borrowed large sums of money. This is a very big mistake.

Since if you make a big profit, greed will eventually overcome you. For example, if you invest $50,000 and make $150,000 somewhere, your mind will rationalize and normalize this success, and you will feel that this success is less prominent than it actually is. After a while, the market will fall and you will be in a Break Even or loss position.

There seem to be many horror stories about crypto millionaires who think their funds will continue to grow forever and that they will lose the opportunity to sell at a profit. Then these people will be at a loss and will be waiting for the next bullish market. The best way to avoid such a situation is to have a plan that will take us to the next point.

You have no plans to follow!

As mentioned earlier, many people have high expectations of themselves, and when their shopping cart reaches its highest point in history, they just want it to go up. On the other hand, as a coin goes down in price, they keep it at zero, and that is because of their stubbornness about investing.

The best way to avoid this situation is to have a goal for yourself, stick to your goal and not be greedy. So when you get into a situation, be sure to have a plan. This brings us to two other points. Be clear and unequivocal about receiving your profits and cutting your losses.

It is easy to be stubborn, but in the end, the market continues to move despite your feelings. There is no right or wrong here. If your plan is to prevent a loss of 15%, then do it and it does not matter how you feel at that time. Do not convince yourself that the price of this asset will rise again; Avoid losses and trust your plan.

Do you want your investment strategy to be profitable in the end? If so, you will eventually have to sell and make a profit. Learn from the mistakes of others; by the end of 2017, during the boom in digital currencies, many investors would have become rich if they had sold their currencies for profit. On the other hand, many expected to pay dividends in return for their investment; But they kept too much capital in this bear market; Remember that you will not make a profit until you sell. If your plan is to make a 25% profit, then stick to your plan.

You sell when you should buy and vise versa

We bet that when the price of Bitcoin was $15,000 or $20,000, you would be interested in crypto, or if you had already invested, people would ask you about digital currencies; because it is blind obedience to the sum of the natural tendencies of human beings. As prices rise, people are buying, but when prices fall, people close their losses and sell.

It is precisely this vicious cycle that leads to the loss of money. Do not buy at a high price and do not sell at a low price, but instead buy at a low price and sell at a high price. If the price of a digital currency is low but you believe in its future, then buy it. If you believe in bitcoin, why buy it for $20,000 instead of $3,000? Once you have bought the currency you believe in, wait for it to reach its potential. Buy at a low price and sell at a high price. This opens the door to another law, which is to buy rumors and sell news.

Introducing Strike protocol in one sentence can suffice; Strike is made to be more scalable and decentralized than the compound protocol. In Strike, you can lend and make a profit, or get a loan on bail. It is also easier to add new markets to this platform. Distributing tokens without initial public offering and raising capital has also helped make the platform more decentralized. In this article from CoinMarketSIG , we will talk about what the Strike protocol is, what its purpose is, how it works, and what services it provides. In the following, STRK token, its purchase and maintenance methods, as well as the roadmap, partners and team of this project are reviewed.

What is the Strike protocol and its purpose?

The Strike Protocol is a decentralized money market in Ethereum Blockchain that enables users to lend or borrow digital assets. This protocol is non-custodial, which means that the control of assets is always the responsibility of the users. The Strike protocol is autonomous and algorithmic, and governance bids and Yield Curves determine its parameters.

The strike is forked by the Compound protocol. This protocol seeks to build the ability to support more collateral and lower the threshold for a new collateral. With the current architecture and parameters of the Compound Protocol, 100,000 COMP tokens are required to create a Proposal to add a new asset, and the proposal must receive at least a positive 500,000 COMP.

Compound provided a mechanism by which users could obtain the number of tokens needed to bid, but it was still difficult to obtain that amount and a positive vote of 500,000 COMP. It is true that this creates more security and prevents the addition of unqualified assets, but it also prevents the protocol from scalability.

Striking makes scalability easier and adding new assets without compromising security. In Strike, a number of governors who are members of the community are elected by community vote. Their job is to create a white list of assets that can be added to the platform, and then these assets need the vote of community members to approve.

Another problem with the compound is the over-control of venture capitalists and start-ups, and as a result, the current distribution of COMP tokens is very disproportionate. There are plans to distribute more than 4 million COMP tokens over the next four years among platform users, and by the end of this time, it is expected that the platform will be decentralized enough, but institutions will still have a lot of control over the tokens.

In the Strike protocol (STRK), the government is completely decentralized and more than 45% of the total tokens supply of this platform is distributed at the time of launch. The remaining tokens will be distributed during the cash extraction rewards program over a proposed 8-year period. With this tokonomix, the protocol will be completely decentralized and the tokens will be used from day one. It can be said that Strike aims to become a completely decentralized and scalable money market based on the Ethereum blockchain.

How does Strike (STRK) work?

In the Strike protocol (STRK), there are generally two categories of users and several important elements. Users include:

Suppliers: Those who pledge an asset in the Strike Protocol to make a profit. When a digital asset is successfully released and validated in blockchain, sToken is created accordingly.

Borrowers: Those who intend to borrow from Strike and must first pledge their assets to secure the repayment of their loan. The user must also pay the registration fee for the Ethereum blockchain.

The following is a description of the elements and coefficients used in the strike, which will help you understand how the protocol works:

sToken

In addition to the STRK sovereign token, there are other native tokens in the sToken format in Strike. These tokens are attached to a digital asset (Peg) and can be moved between different Ethereum wallets. For example, if you bail out the USDC Strike Protocol, you will receive the equivalent of sUSDC. The main use of sToken is to display a value commensurate with the underlying asset in the protocol and redeem it at any time.

For sToken we have two processes of creation (Mint) and burning (Burn) which are done automatically by smart contracts. The mint process represents the delivery of a token to the protocol, and the burning process is performed to release the pledged asset and destroy the sToken.

Collateral Factor

Several factors determine how much you can borrow. The protocol first determines the present value of the pledged asset. The market for each asset has a parameter called the Collateral Factor, which indicates how much you can borrow against the pledged asset. The amount of this factor is present in the initial smart contract and can then be changed by members of the community. The protocol will automatically liquidate the asset if the value of the user’s assets is less than the amount allowed to borrow.

Reserve Factor

To ensure the security and maintenance of the protocol, there is another parameter called Reserve Factor in each market strike. This factor represents the percentage that is taken from users and assigned to the protocol. How to control and use the collected funds is specified in the protocol governance process.

Governance

Smart contracts for network governance fully enforce compound rules, and the advantage of using a Governor has been added. 21 addresses that have the highest number of STRK tokens, personally or with the help of other people (Delegate them), will be selected as governors. Governors are elected in 28-day time periods.

To add a new digital asset to the Strike protocol, ‌ these 21 addresses are first voted on to be whitelisted. All STRK token holders can then vote to add or delete that digital asset.

Each STRK token is equivalent to one vote. A bid must have at least 65,000 tokens, and at least 130,000 votes are required to approve it. In addition, the majority must vote within the time limit, which is approximately 72 hours, depending on the speed of the Ethereum blockchain.

Users can bid on almost any parameter in the Strike protocol, such as what assets to add, which assets to delete, change of collateral ratios, and the booking and oracle used. Each offer must wait approximately 48 hours after approval and before implementation. If at any time during the proposal, the bidder has less than 65,000 tokens, any user can cancel it.

Yield Curve

For the independent operation of the Strike protocol, there is a yield curve mechanism for determining the Borrow and Supply profit, which is controlled by code and by the governance processes of the Strike protocol. This curve creates a balance in each of the markets and follows the traditional economic model of supply and demand.

When demand for a particular market, or loan application, is low, the borrowing rate should be lower and more profitable, and the supply interest should be lower. When demand for loans increases and market demand increases relative to existing supply, interest rates on both the Borrow and Supply sides increase.

What services does Strike provide?

Now that we know what the Strike protocol is and how it works, by entering the Strike site and clicking on the Launch App, after confirming and connecting the wallet, we enter the platform environment. There are four main parts, each of which is described below.

Dashboard: On this page, you can see your general status on the left. For example, how much you have stewed or how much you have borrowed. On the right, in the Supply Market section, you will see cryptocurrencies where you can pledge your assets. The annual profit you will receive is also known. In the Borrow Market section, the codes that you can borrow and their annual interest are specified. You can also repay your loan from this section.

Vote: This section is used to vote on the suggestions that are submitted. You will see the offers on the right and by clicking on each one; its details will be specified. If you have a suggestion, you can submit it by clicking Create Proposal. By clicking on Get Started, you can either vote for yourself or transfer your voting power to another address.

Rewards: The distribution of rewards can be seen on this page. There is STRK balance and bonus in this section and you can also withdraw your bonus.

Market: In this section, the status of the platform can be seen both in general and separately for different ciphers; how much has been deposited and how much has been borrowed.

Perpetual Protocol (PERP)

Perpetual Protocol (PERP) is an Ethereum token that powers the Perpetual Protocol, a decentralized exchange for perpetual contracts. Perpetual Protocol (PERP) is a DeFi platform that focuses on futures trading such as support for digital currency trading and other assets such as gold, crude oil and fiat. Crypto derivatives came to add entertainment to virtual currency trading. Common derivative products include perpetual and perpetual contracts. In a futures contract, participants bet on the future price of a crypto asset.

A perpetual contract, on the other hand, mimics the features of a futures contract, but lacks a fixed expiration date. Unfortunately, due to the risks and costs of the other party, its absorption has been slow.

Fortunately, decentralized financing (DeFi) has eliminated the risks of derivatives trading on a centralized platform. However, the approach of Uniswap, Balancer and other DeFi networks to power the DeFi ecosystem to manage perpetual contracts was not ideal. Thus, the Perpetual Protocol (PERP) filled the gap with a new marketing model.

What is a Perpetual Protocol (PERP)?

Perpetual Protocol (PERP) is a decentralized exchange (DEX) for futures trading in Ethereum and xDai. Traders can leverage an increasing number of assets such as BTC, ETH, DOT, SNX, YFI, etc. with 10x leverage. Trading is illegal, which means that traders always keep their assets and are in a chain. Perpetual Protocol uses a virtual automated market maker (vAMM) that provides liquidity in a predictable pricing chain determined by fixed product curves. In addition, the perpetual protocol designed its VAMMs to be market neutral and completely secure.

The stated vision is to create a decentralized, accessible and secure derivative trading platform in the world. By creating our DeFi projects and allowing projects based on a perpetual protocol, the company embraces the “DeFi money lego” ethic. The Perpetual Protocol, after achieving several milestones in its roadmap, such as launching stock pools and enforcing restrictions and stop orders, intends to expand into other chains, introduce leverage tokens and pave the way for dynamic liquidity in pools. The part of the spirit that led to the creation of the perpetual protocol is clearly evident in your community. In fact, we can combine them into four very clear points that explain the purpose and vision of the Perpetual Protocol (PERP), which are:

1. Democratize powerful trading tools and expand economic inclusion around the world. This is due to the fact that the Perpetual Protocol can provide access to perpetual instruments, one of the most complex and centralized financial instruments in the traditional financial world, and is now available to everyone thanks to the Perpetual Protocol.
2. Establish a suitable AMM for low-liquidity futures due to domestic liquidity, which enables the trading of long-term assets. This is possible thanks to VAMMs, which are improvements to the AMMs we typically find in other projects.
3. Reduce perpetual losses for participants in protocol liquidity pools. In this way, the investment of liquidity suppliers is protected from fluctuations in the price of digital currencies.
4. A system that minimizes the risks of price manipulation. This is thanks to the combined system of Oracles and internal algorithms that ensure accurate information and asset price formation in the market.

Project goal and vision

• The part of the spirit that led to the creation of the perpetual protocol is clearly identified in your community. In fact, we can combine them into four very clear points that explain the purpose and vision of the perpetual protocol, which are:
• Democratize powerful trading tools and expand economic inclusion around the world. This is due to the fact that the Perpetual Protocol can provide access to perpetual instruments, one of the most complex and centralized financial instruments in the traditional financial world, and is now available to everyone thanks to the Perpetual Protocol.
• Create an AMM suitable for futures trading with low liquidity due to internal liquidity, which enables long-term trading of assets. This is possible thanks to VAMMs, which are improvements to the AMMs we usually find in other projects.
• Reduce perpetual losses for participants in protocol liquidity pools. In this way, the investment of liquidity providers is protected from fluctuations in the price of digital currencies.
• A system that minimizes the risks of price manipulation. This is thanks to the combined system of oracles and internal algorithms that ensure accurate information and the formation of asset prices in the market.

How Perpetual Protocol works

The transactions that appear in the perpetual contract play a major role in the perpetual protocol model (PERP). In general, it works almost like most centralized exchanges.

However, the biggest difference here is that the perpetual protocol does not require the use of a sales order book. This means that the transaction is always done immediately and without waiting for a partner or payment for the buyer.

For high volume transactions, processing speed in Perpetual is often slower than in centralized products. To overcome this defect, Perpetual performed anti-slip measures exactly on the xDAI tool. Thus, although it works on the Ethereum platform, Perpetual processing speed is much faster than the base layer of the Ethereum blockchain.

Who are the founders of Perpetual Protocol (PERP)?

Perpetual Protocol (PERP) was launched by Yenfen Weng and Shao-Kang Lee, two Taiwanese digital currency entrepreneurs who had previously started payroll and accounting firms for crypto startups. Most team members are based in Taiwan. Perpetual Protocol (PERP) is supported by many reputable investors such as Zee Prime Capital, Multiarrows Capital, CMS Holdings, Binance Labs and Alameda Research, FTX Strategic Partner. With their support, the company closed the first round led by Multicoin Capital for $ 1.8 million in 2020.

What makes a Perpetual Protocol unique?

The purpose of the Perpetual Protocol is to create a platform for the trading of perpetual contracts that anyone can use. To do this, users must be able to trade with good liquidity and low slip. The Perpetual Protocol solves this problem using the vAMM solution. The Perpetual Protocol (PERP) does not follow the typical centralized exchange order model. Instead, traders trade with a virtual automated market maker whose initial liquidity is determined by the operator.

For example, suppose an operator sets vAMM liquidity at 100 VETH to 40,000 vDAI. A person who deposits DAI in ETH for a long time pushes the price of ETH upwards and creates an incentive to reduce VETH if the price does not match market prices. Traders who abandon VETH also deposit DAI as collateral and return the VETH price to equilibrium. Having a liquidity swap is unnecessary, because vAMM acts as an account for all transactions and automatically balances in the long run. In practice, transactions in the Perpetual Protocol are all settled in the USDC.

Using this vAMM model and creating an exchange in xDai, traders can enjoy chain transactions without payment and instant settlement. In addition, the Perpetual Protocol (PERP) supports non-gaseous deposits over $500, meaning that traders can deposit with 0 ETH in their wallet.

Advantages and disadvantages of Perpetual Protocol (PERP)

These are the positive aspects:

There are several things that differentiate Perpetual Protocol (PERP) from their counterparts.

High levels of security

Perhaps one of the biggest selling points of this platform is the very secure perpetual protocol. The source is open, so anyone can check out the red flag. In addition, external audits have been performed by the well-known cryptocurrencies ConsenSys and PeckShield, and recommendations have been received from both. In order to secure users’ funds, it also has insurance coverage from Unslashed Finance and Nexus Mutual, two companies specializing in DeFi-related protection.

Staggering interest rates, strange and irrational conditions for receiving loans, paperwork and dependence on a central financial institution, and worst of all, long periods of time to receive money; are just some of the problems with registering and getting loans from traditional banks and financial institutions. Yet, borrowing from a decentralized financial system with reasonable interest without the need for even a single dollar of collateral and most importantly receiving money instantly is not just a dream! An instant loan or Flash Loan in a Decentralized Finance ( DeFi ) without asking for collateral does not waste even a second of the user’s time.

The blockchain has always been promising in the global financial world, without the need for a central institution of power. This technology underpins the formation and flourishing of decentralized finance with smart contracts and decentralized financial applications that help people anywhere in the world benefit from any type of banking service without having to deal with complex administrative processes.

Peer-to-peer features and strong, transparent backing such as the Blockchain make these services distinct and superior to traditional financial services in many ways. One of the most widely used areas in the defense industry is lending platforms, which replace the tedious process of borrowing from traditional financial institutions with a few simple clicks.

The increasing development of blockchain technologies has made lending platforms more attractive to their users every day. One of these options is to be able to get an “flash loan” in the shortest possible time without the need for collateral. For more information about this type of loan, read this article from Coinmarketsig.com.

What is a flash loan or an instant loan in DeFi?

Flash loans allow digital currency users to receive millions of dollars in digital assets in a matter of seconds without the need for collateral. This process is completely decentralized and does not require special documents. Proponents of her case have been working to make the actual transcript of this statement available online.

The Marble Definition Protocol introduced the concept of instant loans in 2018; But its main reputation dates back to 2020, and it offers lending options through both the Aave platform and the dYdX decentralized exchange. It is interesting to know that in the last days of 2020, Avi was lending $100 million a day, and the total amount of loans offered on this platform by the end of 2021, reached more than $5 billion.

To better understand the reason for the popularity and popularity of Flash Lones, it is better to first look at the process of receiving traditional and defaults.

Traditional loans

Traditional loans are often offered under the supervision of banks and financial institutions, which are controllers and intermediaries between depositors and borrowers. In this case, the borrower must provide a certain asset to the bank as collateral in order to receive a certain amount of money. Also, these loans are generally associated with relatively high interest rates.

Although the system has provided funding and boosted the cycle of businesses and manufacturing companies over the years, problems such as banks’ strict criteria for customer authentication, the lengthy loan application process, and large interest rates on some loans (especially those with low collateral) have caused many Individuals and small startups are not eligible for a loan or receive it too late.

Lending in Defi

Distributed head office technology allows users to receive products and services such as digital loans in a decentralized and peer-to-peer manner. In diff lending instead of centralized financial institutions, we are dealing with intelligent contracts that work on the basis of algorithms and often provide the same financial services at the same interest rate to all users without the need for a complex process of customer identification and authentication.

However, due to the fluctuations of digital assets, most platforms require excessive collateral from the user to cover the risk in order to cover the risk, which can face the borrowing process with many risks and problems, especially for the borrower.

Flash loans in DeFi

Instant lending is a type of smart contract lending that some decentralized financial networks and protocols provide to investors. Instant loans are exactly the opposite of regular defaults and not only do they not receive excessive collateral, but they do not receive any “guarantee” from the borrower at all.

However, like any other type of loan, in instant loans the borrower has to repay the loan, except that the receipt and repayment are in a single transaction and are done in just a few seconds. If during this period, the borrower does not repay the principal, the conditions specified in the smart contract and the transaction will be refunded.

Key features of instant loans

By comparing the three types of loans we have described, we can summarize the basic features of instant loans in DeFi as follows:

No need for collateral

Most lenders ask borrowers to provide collateral to make sure they can get their money back on collateral if they do not repay the loan; however, it is not necessary to provide such proof in instant loans without collateral.

Of course, the lack of collateral does not mean that lenders cannot get their money back. Flash loan transactions through smart contracts guarantee the safety of lenders. Borrowers, instead of providing collateral, agree to repay the loan within a few seconds, otherwise the transaction is reversed; just like the borrowing process is not done at all.

based on Smart contracts

The mainstay of instant loans is smart contracts; these contracts ensure that no cash will be received until certain laws are enforced. These rules do not include receiving collateral, checking the borrower’s credit or similar processes; Therefore, the borrower can easily get large loans without having the initial capital.

However, the terms of these smart contracts require that the entire loan process, use, and repayment be done in a single transaction. In the Ethereum network, each transaction takes about 13 seconds; so we only have a few seconds between receiving and paying instant loans on the Ethereum network. If during this period, the borrower does not repay the principal, the conditions specified in the smart contract and the transaction will be refunded.

In practice, even if the borrower does not receive a guarantee, under the terms of the smart contract, not repaying is tantamount to not receiving a loan. Therefore, getting an instant loan poses little risk to both the lender and the borrower. The borrower does not need the initial capital and the lender can be sure that he will receive the loan repayment.

Delivery in the shortest time

Getting a loan is usually a long process, and eventually, if the borrower is approved for a loan, they will have to repay it continuously over months or years. Yet, the loan is repaid and repaid immediately.

What are the uses of an Flash Loan?

You’ve probably wondered what it would be like to get a loan in just a few seconds. Here are some common methods that are currently used by instant loan borrowers.

Arbitrage

Arbitrage is the main way to make a profit from instant loans. In this way, traders can earn money by using price differences in different exchanges. Suppose a certain currency is traded for $1 in exchange A and $2 in exchange B. In this case, you can use the instant loan to buy $100 of this coin from exchange A and sell the same amount in exchange B for $200. Then you repay the loan and put $100 in your pocket.

It should be noted that these loans, in addition to not requiring collateral, do not have a high fee. For example, the AVI platform deducts only 0.09% of the total loan amount as a fee. Therefore, we can now consider the most important application of instant loans to be the multiplication of profits in digital currency transactions.

Exchange of collateral

Collateral Exchange is the rapid exchange of the collateral of a loan for another type of collateral. Because the assets pledged in DeFi are subject to price fluctuations, there is a possibility of liquidation and loss of initial loan capital. Instant loans help users quickly close a collateral position and immediately open a new collateral position with different assets. Although this method does not have much potential for profit, it is a good tool to facilitate the DeFi borrowing process for professional traders.

These days there is usually an old currency behind every new digital currency. A classic example is when the bitcoin cache was separated from the bitcoin. In the volatile and dynamic world of DeFi (Decentralized Finance), consider SushiSwap Fork Uniswap, one of the largest and most valuable decentralized digital currency exchanges. SushiSwap is one of the fastest and most exciting types of digital currencies.

What is SushiSwap?

SushiSwap is software that runs on the Ethereum network and seeks to encourage a network of users to use a platform where users can buy and sell encrypted assets. Similar to platforms such as Uniswap and Balancer, SushiSwap uses a set of liquidity pools to achieve this goal. Users first lock assets in smart contracts, and traders then buy and sell cryptocurrencies from these pools and exchange one token for another.

SushiSwap is one of a growing number of Decentralized Financial Platforms (DeFi) that allows users to trade digital currencies without the need for a central operator. This means that its original digital currency holder, SUSHI, decides on SushiSwap software. Anyone with an asset balance can make changes to the way it works and can vote on suggestions made by other users.

How does SushiSwap (SUSHI) work?

SushiSwap is a platform that allows users to buy and sell various digital currencies. The fee for each swap is 0.3%, of which 0.25% is paid to liquidity providers and 0.05% to SUSHI and given to SUSHI token holders.

This automated market making (AMM) platform as mentioned earlier, acts as a decentralized exchange. There is no central reference or grammar. SushiSwap digital currency trading is done using smart contracts in liquidity pools. SushiSwap customers become liquidity providers (LPs) by locking their encrypted assets into a liquidity pool. At SushiSwap, anyone can provide cash and incentives commensurate with their share of the pool. This is done by placing two tokens of equal value in the pool. Each pool acts as a marketplace where other users can buy and sell tokens. For a more complete explanation of how AMM works in DEX protocols, read our Uniswap page.

You can exchange ERC-20 tokens in SushiSwap like any other DEX protocol. For instance, stable coins such as USDT and BUSD can be converted to digital currencies such as Bitcoin (BTC) and Ethereum (ETH). You can also generate passive cash by participating in other sushi operations. For example, you can share SUSHI and get xSUSHI in SushiBar. Holders of xSUSHI staked can receive 0.05% bonus on all transactions from all cash pools. Sushi holders who invest their tokens in xSUSHI can earn 2.5% of every NFT transaction in the NFT market after the release of Shoyu.

Bentobox SushiSwap is another way to get motivated. This unique treasury enables customers to take advantage of all of SushiSwap’s lucrative options. This means that by storing your assets in BentoBox, you can earn money both by owning shares in SushiBar and by lending them to other users. At the same time, xSUSHI cardholders can benefit from the transaction fee collected by Bentbox.

Who are the founders of SushiSwap (SUSHI)?

Chef Nomi and 0xMaki (alias) founded SushiSwap in August 2020. Aside from their Twitter identities, there is little information about the two. The project attracted a large number of users immediately after launch and was listed on Binance on September 1, 2020.

Sam Bankman-Fried, CEO of FTX Derivatives Exchange and small trading company Alameda Research, seized real ownership of SushiSwap on September 6 and transferred the tokens from Uniswap to the SushiSwap platform on September 9.

Bankman-Fried joined Jane Street Capital, a small business, after graduating from MIT with a degree in physics, where she first encountered digital currencies. Sam Bankman-Fried is a well-known figure in the world of digital currencies and was first associated with SushiSwap when the SUSHI token was listed on the FTX Derivatives Exchange.

What makes SushiSwap (SUSHI) different?

SushiSwap distinguishes itself from traditional decentralized exchanges as an automated market making (AMM) by eliminating order books while avoiding liquidity problems. SushiSwap, like its parent company AMM Uniswap and others, has done several important tricks to increase the impact of network participants on the company’s future.

The fate of SushiSwap is completely under the control of SUSHI holders. SUSHI users can vote on protocol improvement proposals, determine cost structures, vote on new liquidity pools, and jointly fund sushi-related projects.

Some Uniswap consumers were unhappy with what they thought was a low liquidity provider fee. The platform’s interaction with venture capitalists and the decentralization of Uniswap governance were also criticized.

The introduction of the SUSHI token was one of the key innovations of SushiSwap. SUSHI tokens allow LPs to receive incentives, however, unlike Uniswap, they allow holders to receive a percentage of the fee long after the liquidity has stopped actively.

In addition, digital currency addresses the issue of Uniswap decentralization by granting sovereign rights to sushi holders. SushiSwap took a similar approach to distribution and opted for “fair startups”, which means not assigning passwords to venture capitalists.

Sushi tokens

Sushi tokens are given as a reward for extracting liquidity. This token allows its holders to participate in the management of the platform and gives them the right to receive part of the costs paid to the protocol by traders. To manage the platform, SUSHI holders can submit a SIP Improvement Swipe offer that token holders can vote on with their tokens.

Of course, some people are also speculating about the price of sushi, and the tokens can be traded in large exchanges such as Binance, FTX and OKEx.

By March 2021, approximately 140 million sushi will be in circulation, for a total supply of approximately 205 million sushi, which will grow at the rate of the Ethereum block. According to the strategy, according to this strategy, the daily supply of sushi will increase by 650,000 machines, bringing the total supply to 326.6 million one year after launch and close to 600 million sushi after two years. Shortly afterwards, the SUSHI community voted to gradually limit the number of sushi produced per block by 2023, when the maximum sushi supply will reach 250 million.