A new movement is pumping oxygen into the cryptocurrency industry despite asset prices that remain 65% lower than where they were in late 2017. It’s called DeFi, short for decentralized finance—it’s the notion that crypto entrepreneurs can recreate traditional financial instruments in a decentralized architecture, outside of companies’ and governments’ control. Let's take a look at what DeFi is, what tools are available out there, are they viable or just theoretical, who and how uses them, and most importantly, how can you use them (and if there is a reason for that). Agenda: - What is DeFi - Open Lending Protocols (MakerDAO, Dharma, Compound) - Decentralized Prediction Markets, Hedging (Augur, Gnosis) - Exchanges (IDEX, EtherDelta, Binance DEX, Uniswap) and Open Marketplaces (OpenSea, Rarebits, Decentraland) - Stablecoins (Dai, Tether) - Usecases for you

1. DEFI:
LENDING
HEDGING
EXCHANGE
STABLECOINS

2. What is DeFi
● Individual is the sole custodian of assets
● Open source and dev tool allow for new
instruments
● Traditional and newly tokenized assets
● Transparency of issuance, repayments,
loans, collateral
Traditional Fintech: Banks govern & control people’s assets
DeFi - extra functionality, reduced operational risks

3. Hybrid Financial Instruments
● Crypto wrapped around legacy: stable
coins, gold bars. Issued, traded, settled
on blockchain
● Legacy wrapped around crypto: Bitcoin
ETFs, Futures, other derivatives. Issued,
traded, settled on Legacy Systems
Crypto assets - digital bearer instruments by nature

4. New Capital Formation (Fundraising)
● A community of supporters can bring
more value than VC
● Capital comes with fewer constraints
● Tokens offer more liquidity for investors
● Room for experimentation
DeFi elevates Trust, not Performance (Yet)

5. Open Lending Protocols - MakerDAO
● Central Bank on Blockchain
● MKR token holders vote on interest rate
● Create CDP with ETH
● Borrow Dai
● Dai pegs to USD

6. Open Lending Protocols - Dharma
● Fixed Duration (90 days), Fixed Interest
Loans
● Need matching
● Borrow: ETH 1%, Dai 10%, USDC 8%
● 1.5x ETH collateral
● Liquidation at 1.25x

7. Open Lending Protocols - Compound
● Liquidity pool (not 1-on-1)
● Algorithmic interest rates (change every block)
● No fixed duration terms
● cTokens - tokenized balances
● Liquidity effect - interest spread between all
suppliers
● 1/10th - reserves and safety cushion
● Community can repay 50% of borrowed asset at 5%
discount on collateral
● ETH, DAI, USDC, 0x, BAT, AUG, wBTC

8. Decentralized Prediction Market - Augur
● Wisdom of the crowd
● Binary (Yes/No) prediction - buy
shares, sum up to 1
● Reputation (REP) token for dispute
resolutions
● Sport betting
● Price hedging

9. Exchanges - Uniswap
● Uniswap allows exchange any ERC20
and ETH on chain
● Contribute to liquidity pools and earn
commissions
● Liquidity pairs 50%ETH and 50%ERC20
● 0.3% fee distributed among liquidity
providers

10. Stablecoins
● Dai (Crypto collateralized)
● Tether (Fiat collateralized)

11. Tips
● Backup your seed phrase
● Never Keep Coins on Exchanges
● Denis Serebryakov
twitter.com/ThatCryptoTO