Banks, DeFi, Aave, Terra’s Luna, and more.
101 today:
A topic we explain —
What do these short forms mean? DeFi, TradFi, & Cefi.
Major happenings in the DeFi ecosystem —
AAVE and Terra’s LUNA touch new heights.
A Goldmine of a Twitter thread that sums it all up —
Balaji Srinivasan’s views on DeFi.
A peek behind the doors —
Community Gathering with the leading thinkers of the DeFi space.
One Topic:
Where it all starts: DeFi & TradFi
DeFi or Decentralized Finance is a movement that aims at making a new financial system that is open to everyone and doesn’t require trusting intermediaries like banks.
TradFi or Traditional Finance refers to the mainstream financial institutions we see around us today- from banks and brokerages to stock markets.
What is CeFi?
CeFi, or Centralized Finance offers reduced yield offerings of DeFi with the same security and ease that traditional finance has been providing us.
With DeFi, users trust that the technology will perform as proposed to execute on services being offered. On the other hand, with CeFi, users trust a business’s people to manage funds and execute the business’s services.
- Akash Takyar, CEO LeewayHertz
UpDive on Youtube here breaks down the major differences between DeFi and CeFi.
To dive deeper into the topic, we suggest this podcast from Bankless featuring Hasu: DeFi vs. Banks | Hasu
News that made people go:
Aave’s V3 Launch Doubles AAVE Token Price.😲
But First - What is Aave?
Aave is a decentralized non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers can borrow in an overcollateralized or undercollateralized fashion.
(It’s an open-source protocol.) Check it out here.
Back to the news:
Following the launch of Aave V3, the price of AAVE skyrocketed by almost 50%. Investors remain optimistic that the uptrend will continue, thanks to the expansion of the protocol to six blockchains. With renewed DeFi capabilities, the non-custodial liquidity protocol is set to create history.
Terra’s LUNA experiences a 10% spike!👀
TerraUSD (UST) and Luna (LUNA) are two native tokens of the Terra network, a blockchain-based project developed by Terra Labs. Check them out here: TERRA
When news of the Luna Foundation Guard (LFG), a non-profit organization supporting the Terra network, buying $135 million worth of Bitcoin broke, LUNA experienced a 10% spike that went down in history. At $106.14, it reached a record high.
Read more: LUNA's record high
Enjoying reading DeFi Fridays?
One Quote:
“The nature of sound money lies precisely in the fact that no human is able to control it, and hence, a predictable immutable algorithm is uniquely suited for this task.”
— Saifedean Ammous, Author of The Bitcoin Standard
One Tweet:
Balaji Srinivasan’s year-old tweet on how different the fundamentals of DeFi and TradFi are:
A Peek Behind the Doors:
Our team is hosting a special series of Twitter Spaces on our handle @brew_defi with the biggest educators in the DeFi space starting next week.
Our subscribers will be updated exclusively well before time.
Stay Tuned!
Brew Money is a polygon wallet built on top of the Aave protocol and is currently in the Beta version. Users can start with as low as $50 and start earning APY.
You can sign up to join our waitlist or get chosen exclusively to try out the Beta version! Signup here: Brew Money
That’s it for today, folks. Have a Brewtiful weekend! 🎩