Defi Flashcards
Over-collateralised OC
Placing an asset as collateral for a loan when the value of the asset exceeds the loan
Defi projects
Dao
Yearn finance
Comp
The graph
Aave
Yield farming
Liquidity mining
Staking and lending to generate returns or rewards
What is Aave
Aave is the the native governance token to aave protocol
Ethereum based
Borrowing and lending
Borrowing you can leverage
Lending you can can earn a regular safe return on otherwise idle capital
Previously called ETH lend it’s an algorithmic money market where loans are obtained from a pool. If the pool is nearly empty then interst rates are high to entice liquidity. If pool is full then interest rates are low to entice borrowing.
All loans are over-collateralised
Aave includes a liquidation process of your collateral falls under the ratio specified by the protocol.
Offers flash loans which are Un-collateralised. Only span one ethereum block and you pay the interest of one block. Allows large amounts of capital to arbitrage and enact other opportunities.
Aave protocol mitigates black swan events
Derivatives and synthetix
Hegic
Dex
Dao
Amm
Types of exchanges
What is yearn finance
A protocol that automatically find the best yields from different exchanges
