The first unsecured DeFi mortgage, MakerDao’s deployment on StarkNet, and a $400 million fund for web3 startups.
101 today:
A topic we explain —
Recap of all the topics we’ve covered till now and all about Tokenomics.
Major happenings in the DeFi ecosystem —
The first house mortgage on a Blockchain, MakerDao’s deployment on StarkNet, and a VC raising $400 million to fund web3 startups.
A Goldmine of a Twitter thread that sums it all up —
Get a broad idea of what Tokenomics stand for.
A peek behind the doors —
We’ve got an announcement to make!🎤
👋Before we move any further ahead, let’s recap all the things we have covered in our newsletter till now:
Explaining DeFi and the differences between DeFi & Tradfi - Find the issue here.
How do banks earn - Find the issue here.
What are stablecoins, and liquidity pools, and why are they important - Find the issue here.
AMMs, their significance, and DeFi lending & borrowing. - Find the issue here.
💡 When you buy cryptocurrency, where does the fiat currency from which you bought the crypto go?
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Questions? Mail us.
Tokenomics:
‘Tokenomics’ is made up of two words: Tokens and Economics. It studies how people interact with tokens, their issuance, distribution, and burn rate.
The term ‘token’ has embodied multiple definitions in the course of the last few years. However, tokens are simply the other name of ‘crypto assets’ or ‘cryptocurrencies.’ They are also defined as the crypto assets that run on top of another cryptocurrency’s blockchain.
Let’s have a look at a few categories of crypto assets that have the term ‘token’ in them:
DeFi Tokens are tokens that are native to decentralized finance applications. These tokens enable users to access a wide variety of decentralized financial services like lending & borrowing, insurance, trading, etc.
Governance Tokens are specialized DeFi tokens that give their holders a vote in deciding the future of that DeFi protocol or application.
Non-fungible Tokens (NFTs) represent the ownership of a unique digital asset that may also have special utilities.
Florian Strauff has explained the design aspect of tokenomics to include:
How tokens are created,
How they are brought into and removed from the circulation, and,
How to get network participants to do what you want them to do?
“If you want transactions to be added to the blockchain, you will need to pay miners to include them. If you want people to stake their tokens and validate the network, you will have to pay a fee to them. The design aims to direct how people interact within the network.”
Read more here.
We’ll explain the creation, distribution, and burning of tokens along with the tokenomics of Bitcoin in our next edition. For now, find all tokenomics-related resources on @tokenomicsdao.
News that made people go 🤯:
👀Teller Brings to the World the First House Mortgage on a Blockchain 🏠
USDC.Homes give out crypto loans by partnering with mortgage lenders and brokers. It completed its first sale on 26th April 2022 through DeFi lending protocol Teller - a mortgage of $500,000 was taken out on a condo valued at $680,000 in Austin, Texas. Teller claims it is the 'first unsecured DeFi mortgage' - the borrower did not get the loan by putting up collateral; instead, he won it on the strength of his credit score. Read more about it here.
👀MakerDAO Announces Deployment on StarkNet to Reduce Gas Costs and Speed Up Transactions ⏩
StarkNet is Ethereum's layer-2 scaling solution, which DeFi "blue chip" project MakerDAO is integrating with on 28 April 2022. The integration would involve rollups that settle transactions outside the main blockchain, alleviating the bottleneck on the mainnet and reducing gas costs by 10x. In addition, the zero-knowledge cryptography technology employed by StarkNet protects the users' security. Read more about it here.
👀Framework Ventures raises a whopping $400 million for its blockchain-focused fund😲
Venture capitalist firm Framework Ventures recently announced a $400 million fund to invest in enthusiastic blockchain startups. The two-year-old firm affirms that it is nothing like a traditional Silicon Valley VC; it stays true to the ethos of decentralization by backing less than 10% of the tokens of the projects it funds. The firm will devote about half of its new fund to startups developing crypto-based video games. Read more about it here.
One Tweet:
Now, an update:
#DeFiwithBrew Twitter Spaces event with Shiv Sakhuja and thirdweb went extremely well. We loved the energy with which the community was eager to learn about new & old concepts in DeFi.
We have multiple Twitter Spaces events planned for the entire month of May with different DeFi space leaders. It’s going to be fun. Keep a track of it through Brew’s Twitter handle.
Speaking of Twitter, we are also hosting super cool giveaways with rewards up to $100 every week there. Check them out!
That’s it for today, folks. See ya next Friday. 🎩