{"id":1005,"date":"2021-08-25T08:57:50","date_gmt":"2021-08-25T08:57:50","guid":{"rendered":"https:\/\/de.fi\/blog\/?p=1005"},"modified":"2023-06-28T21:38:51","modified_gmt":"2023-06-28T21:38:51","slug":"how-defi-works-explained-by-industry-ogs-8842692dd851","status":"publish","type":"post","link":"https:\/\/de.fi\/blog\/how-defi-works-explained-by-industry-ogs-8842692dd851","title":{"rendered":"How DeFi works? \u2014 Explained by Industry Og\u2019s!"},"content":{"rendered":"<h3 id=\"harmony-apeswap-bancor-and-more-on-our-recently-launched-youtube-channel-\">Harmony, Apeswap, Bancor and more on our recently launched Youtube channel!<\/h3>\n<p>As you may know, recently we\u2019ve launched our own Youtube channel \u2014 <a href=\"https:\/\/www.youtube.com\/@DEDOTFI\">DeFi<\/a>. What we found really interesting to try is to speak with other people of DeFi and discuss what\u2019s DeFi about, how projects actually work, and what\u2019s worth knowing.<\/p>\n<p>But we also know that there are many of our supporters that like reading better than listening. As we do really think that these interviews with key players of DeFi are invaluable, we prepared an article with main points that our team members chose. Timecodes included \u2014 go and watch a full version of any interview you like!<\/p>\n<h3 id=\"table-of-content\">Table of Content<\/h3>\n<blockquote><p><strong>Interview with 88mph co-founder<\/strong><br \/>\nWhat\u2019s the mechanic behind depositing with 88mph?<br \/>\nBest networks to build on<br \/>\n<strong>Interview with Apeswap community director<br \/>\n<\/strong>Why is it not possible to create a new Bitcoin?<br \/>\nAre exploits and hacks ethical?<br \/>\n<strong>Interview with Harmony COO<br \/>\n<\/strong>What is blockchain for Harmony?<br \/>\nHow to handle the barriers of entry to DeFi?<br \/>\n<strong>Interview with Launch Zone Biz Dev<br \/>\n<\/strong>KYC in DeFi?<br \/>\nWhat can make you successful in DeFi?<br \/>\n<strong>Thanks!<\/strong><\/p><\/blockquote>\n<h2 id=\"88mph\">88mph<\/h2>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/1Gfcj4Fsh69vOGkP6W3FOfQ.png\" alt=\"\" \/><\/p>\n<h3 id=\"what-s-the-mechanic-behind-depositing-with-88mph-\">What\u2019s the mechanic behind depositing with 88mph?<\/h3>\n<p><strong>Michael<\/strong>: How do you guys manage custody? If someone is depositing with you it is going to Compound or Aave. What\u2019s the mechanic?<\/p>\n<p><strong>Guillaume, co-founder at 88mph<\/strong>: It\u2019s a good question. We\u2019re 100% non-custodial. And the way it works, the money flow is let\u2019s say you have 100 DAI and you deposit it at 88mph \u2014 what you\u2019ll be getting in change is an NFT representing your deposit of 100 DAI plus the amount of fixed interest we\u2019re promising to you. So that\u2019s the first part \u2014 NFT ERC-721 representing your deposit price of interest. Your money and other users\u2019 money \u2014 we\u2019re depositing it on Compound or Aave or whatever market you decided to use on 88mph. When you want your money back \u2014 you can withdraw your money early with a penalty \u2014 withdrawal fee. We\u2019re incentivizing deposits with our governance token \u2014 MPH. With that MPH things basically what you can do is get voting rights.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=hyY248Bdrgc&amp;t=98s\">Check more on 12:45 \u2192<\/a><\/p>\n<h3 id=\"the-best-networks-to-build-on\">The best networks to build on<\/h3>\n<p><strong>Michael<\/strong>: What about the networks. You guys are built on Ethereum but you also work with Aave and it\u2019s also built on Polygon so are there any plans to go to other platforms and chains?<\/p>\n<p><strong>Guillaume<\/strong>: We\u2019re big fans of ZKsync and we\u2019re mainly waiting to release their things but of course we need an ecosystem so we decided to move when there\u2019s an ecosystem like Aave or others. But from what I heard Aave will be on Arbitrum, Arbitrum will be on Optimism, Optimism will be on ZKsync so it\u2019s not like a zero-sum game when you\u2019re on board on this kind of things so each community has its own user base so you\u2019re adding more and more. If you\u2019re on mainnet but not on Polygon \u2014 you\u2019re losing a big chunk of users. So we plan to go on Polygon because it\u2019s the most obvious currently in terms of liquidity and ecosystem partners we can find there like Aave. Mainly Phantom is also an option for us and ZKsync is the most promising.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=hyY248Bdrgc&amp;t=98s\">Check more on 25:30 <\/a>\u2192<\/p>\n<h2 id=\"apeswap\">Apeswap<\/h2>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/1hnZeB0wWD05jvYSEl7L_MQ.png\" alt=\"\" \/><\/p>\n<h3 id=\"why-is-it-not-possible-to-create-a-new-bitcoin-\">Why is it not possible to create a new Bitcoin?<\/h3>\n<p><strong>Michael<\/strong>: I feel like that\u2019s a common thing throughout crypto in general. If you think about for example Some people say \u201cOh bitcoin isn\u2019t worth anything. Just go and take it and start your own code. It\u2019s like \u201cno, you couldn\u2019t\u201d. Because the value is in this intangible network. It\u2019s actually not the code, it is really valuable about Bitcoin. And the same thing with a lot of these examples like Twitter \u2014 it\u2019s really obvious that it\u2019s the network value but it\u2019s interesting how all of these structures have the same commonality to them.<\/p>\n<p><strong>Chip, Apeswap Community Director<\/strong>: You know, my history goes back to kind of the proof of workspace and it\u2019s near impossible to replicate bitcoin security in this modern environment. You kind of see that with the way the projects launch because everything is staking now \u2014 everything is proof-of-stake now and validators and delegates produce blocks and there\u2019s no network consensus. Bitcoin has developed the proof-of-work mining space so much that any coin that launches they don\u2019t stand a chance. Someone can throw their hash and take over the network and shut it down, reorganize it, do various things. There isn\u2019t going to be with Bitcoin.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=TUMSvopsQPw\">Check more on 04:55 \u2192<\/a><\/p>\n<h3 id=\"are-exploits-and-hacks-ethical-\">Are exploits and hacks ethical?<\/h3>\n<p><strong>Michael<\/strong>: On the one hand, I actually had an ethical conversation with my friend yesterday or the day before and we were talking about this interesting concept that if you find a vulnerability is it ethical to exploit it. You can make different arguments depending on what\u2019s going on. You can see some really insane flash loan attacks that happened and it\u2019s almost always a work of art how sophisticated they are\u2026<\/p>\n<p><strong>Chip<\/strong>: very sophisticated..<\/p>\n<p><strong>Michael<\/strong>: Was that unethical? On the one hand, obviously, you can make arguments why it was unethical but on the other hand, if you know that you\u2019re going to take money and do something good with it \u2014 even if you don\u2019t do it, somebody else will do that and they may use money maliciously. So if you have an imperative to go and direct it for good and you get kinda this weird thing around it.<\/p>\n<p><strong>Chip<\/strong>: Yeah I\u2019d like to comment on it. I think you can and I\u2019ve seen this internally with our team, when you\u2019re approaching ethical situations like it\u2019s easy to kinda tie yourself into a pretzel and try to justify different behaviors. But if you take money from people without their consent \u2014 it\u2019s never ethical. If you\u2019re leaving people in financial ruin \u2014 that\u2019s never gonna be ethical. Bit, that being that, space needs this. The market is really immature, irrational and people rely on the projects that don\u2019t deserve their support and so when these projects that never stood a chance to make it more than a few months \u2014 the market runs behind them. And they get exploited \u2014 the market needs to leave that project to die. But they keep rallying back to it and keep going back for more and they keep taking part in the ICOs. So I think the process of taking people\u2019s money is never gonna be ethical. These alpha predators are needed to weed out.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=TUMSvopsQPw\">Check more on 13:30 \u2192<\/a><\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/1InBsO_9cOZ4pfHRpeHQ2QQ.png\" alt=\"\" \/><\/p>\n<p><em>If you wanna stay safe and be up to date \u2014 subscribe to our newsletter! We will send you our <strong>DeFi Security Handbook <\/strong>straightaway. In the ebook we explain how to stay safe, what are we paying attention to while auditing projects and what should you do to not get REKT. You can expect insights, interesting content and updates from us.<\/em><\/p>\n<h2 id=\"harmony\">Harmony<\/h2>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/1uh2o9QxWiQI7I2XtgLF6Lg.png\" alt=\"\" \/><\/p>\n<h3 id=\"what-is-blockchain-for-harmony-\">What is blockchain for Harmony?<\/h3>\n<p><strong>Li Jiang, COO at Harmony<\/strong>: Blockchain is all about human participation. It\u2019s all about human participation and coordination. I think EC<a href=\"https:\/\/en.wikipedia.org\/wiki\/Elliptic-curve_cryptography\">C [Elliptic-curve cryptography] <\/a>was the best example of the entire community to be inspired and energetic. You can see how the Decentralization process will never go away. Everyone here is gonna die for it because it\u2019s their life.<\/p>\n<p>Same for us. I think that\u2019s what\u2019s so amazing.<\/p>\n<p><strong>Michael<\/strong>: How did you get into this? What was the inspiration to set up Harmony?<\/p>\n<p><strong>Li Jiang:<\/strong> Yeah so it was in 2017 with a group of friends in the bay area in Silicon Valley. I\u2019m not technical but many of the early team and of course the founder were. They\u2019ve built infrastructure skill projects, whether it\u2019s Google Maps, Apple Maps, Google Play Store, Amazon Web Service, Facebook. Everyone was working on massive scale products for Web2.0 companies and it was really an opportunity that the team saw to come out and do something in blockchain that could scale to billions of people and be an open platform.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=hDidt-cD6lw\">Check more on 10:00 \u2192<\/a><\/p>\n<h3 id=\"how-to-handle-the-barriers-of-entry-to-defi-\">How to handle the barriers of entry to DeFi?<\/h3>\n<p><strong>Li Jiang<\/strong>: We\u2019ve reduced the barrier of entry. 2,000 artists have joined the platform to mint 20,000 NFTs and we\u2019re seeing teenagers, even young children 9\u201310 years old come and create something. Everyone is using computers these days, they are all online.. That\u2019s really what we are thinking about is how to democratize access to blockchain. Because if you think about blockchain \u2014 you think \u201cWhat\u2019s the purpose?\u201d. And one of the purposes is to give an opportunity to everyone in the world. I\u2019d say if you\u2019re a teenager growing up in a rural place, poor in a third world country, you didn\u2019t have opportunities in Web2.0 \u2014 all the opportunities for the well-educated people in San-Francisco. But with Web3.0 you can create art, you can write a blog, create a DeFi protocol to start, launch anything \u2014 if you have skills and talent and learn by yourself. And that\u2019s what Harmony is about \u2014 to democratize these opportunities. You don\u2019t need $100 to start.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=hDidt-cD6lw\">Check more on 28:30 \u2192<\/a><\/p>\n<h2 id=\"launch-zone\">Launch Zone<\/h2>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/1pavJtDLcKaTOAbLl6KxnUQ.jpg\" alt=\"\" \/><\/p>\n<h3 id=\"kyc-in-defi-\">KYC in DeFi?<\/h3>\n<p><strong>Michael<\/strong>: You mentioned that you require KYC. Does that mean that they can\u2019t be private from the public? If a private team \u2014 they\u2019re a bunch of these \u2014 could they reveal them to you but that information won\u2019t be available to the public?<\/p>\n<p><strong>Luke<\/strong>: Yes. So, that KYC process is mainly about our branding protection. As long as they are not gonna rug pool soon \u2014 KYC is like a safe life, so we\u2019re saving ourselves. The process gonna be support one way or another when they work with Launch Zone but the incubation process only happens with the projects when we see that\u2019s really potential and we\u2019re gonna need to have more support and care for them.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=TUMSvopsQPw&amp;feature=youtu.be\">Check more on 10:00 \u2192<\/a><\/p>\n<h3 id=\"what-can-make-you-successful-in-defi-\">What can make you successful in DeFi?<\/h3>\n<p><strong>Michael<\/strong>: Have you noticed what makes a project successful or not successful? What have you seen? Are there any common things?<\/p>\n<p><strong>Luke<\/strong>: Well, I guess we can have a lot of answers for this. So from my perspective is the loyalty of the project to its idea and also to the value that he\u2019s trying to get to the community. So for all the things that we have done so far and also about the things we have been through and other changes that we\u2019ve made from the brand naming or token itself \u2014 everything about us works for you until now. But what\u2019s really staying with us is still the same. It\u2019s the idea of connecting really good projects to the community.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=TUMSvopsQPw&amp;feature=youtu.be\">Check more on 15:00 \u2192<\/a><\/p>\n<h2 id=\"thanks-\">Thanks!<\/h2>\n<p>We\u2019re glad you made it through to this sentence. Hope you found something meaningful \u2014 we really want to hear from you. <a href=\"https:\/\/t.me\/DeDotFi\">Join the conversation in Telegram<\/a> or reply to us on <a href=\"https:\/\/twitter.com\/DeDotFi\">Twitter<\/a>.<\/p>\n<p><strong>Join De.Fi \u2014 join the revolution.<\/strong><\/p>\n<h2 id=\"check-our-guides-\">Check our guides:<\/h2>\n<p><a href=\"https:\/\/de.fi\/blog\/the-ultimate-yield-farming-guide-for-solana-network-infographics-985936db4392\">Solana Network Ultimate Yield Farming Guide [Infographics]<\/a><br \/>\n<a href=\"https:\/\/de.fi\/blog\/ultimate-yield-farming-guide-for-fantom-network-5c5dea0c719a\">Fantom Network Ultimate Yield Farming Guide [Infographics]<\/a><br \/>\n<a href=\"https:\/\/de.fi\/blog\/the-ultimate-guide-for-yield-farming-with-huobi-eco-chain-cde009ed3457\">Huobi ECO Chain Ultimate Guide for Yield Farming<\/a><br \/>\n<a href=\"https:\/\/de.fi\/blog\/the-ultimate-guide-for-yield-farming-with-polygon-network-373b77ccb1cf\">Polygon Network Ultimate Guide for Yield Farming<\/a><br \/>\n<a href=\"https:\/\/de.fi\/blog\/the-ultimate-guide-for-yield-farming-with-binance-chain-dbc23beb6df4\">Binance Chain Ultimate Guide for Yield Farming<\/a><br \/>\n<a href=\"https:\/\/de.fi\/blog\/the-ultimate-yield-farming-guide-for-eos-9fe6d8d07f37\">EOS Ultimate Yield Farming Guide<\/a><\/p>\n<p><strong>Good luck in farming!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Harmony, Apeswap, Bancor and more on our recently launched Youtube channel! As you may know, recently we\u2019ve launched our own Youtube channel \u2014 DeFi. What we found really interesting to try is to speak with other people of DeFi and discuss what\u2019s DeFi about, how projects actually work, and what\u2019s worth knowing. But we also [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1006,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[22,6,7,21],"class_list":["post-1005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-defi","tag-binance","tag-blockchain","tag-defi","tag-harmony-one"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.10 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How DeFi works? \u2014 Explained by Industry Og\u2019s!<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/de.fi\/blog\/how-defi-works-explained-by-industry-ogs-8842692dd851\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How DeFi works? \u2014 Explained by Industry Og\u2019s!\" \/>\n<meta property=\"og:description\" content=\"Harmony, Apeswap, Bancor and more on our recently launched Youtube channel! As you may know, recently we\u2019ve launched our own Youtube channel \u2014 DeFi. What we found really interesting to try is to speak with other people of DeFi and discuss what\u2019s DeFi about, how projects actually work, and what\u2019s worth knowing. 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As you may know, recently we\u2019ve launched our own Youtube channel \u2014 DeFi. What we found really interesting to try is to speak with other people of DeFi and discuss what\u2019s DeFi about, how projects actually work, and what\u2019s worth knowing. 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