Not all stablecoins are the same as they employ different mechanisms to keep their peg against USD. There are three types of stablecoins—fiat-collateralized, crypto-collateralized, and algorithmic stablecoins. Most stablecoins use the fiat-collateralized system to maintain their USD peg.

How does Opyn work? Opyn allows users to hedge against the risk of price fluctuations, smart contract exploits, administration/governance risks, and black swan events. For instance, Opyn allows users to buy put options on ETH and WBTC.

Why Synthetic Assets? As mentioned above, Synths give traders price exposure to the asset without the need to hold the underlying asset. Compared to traditional gold brokerages, Synthetic Gold (sXAU) allows traders to participate in the market with much less hassle (no sign-ups, no traveling, no middleman, etc.). Synths have another utility—they ca

Fund management is the process of overseeing your assets and managing its cash flow to generate a return on your investments. There are two main types of fund management - active and passive fund management. Active fund management has a management team making investment decisions to beat a particular benchmark, such as the S&P 500. Passive fund

To address DeFi protocol governance, projects such as Compound pioneered the governance token model. Governance tokens provide voting power, allowing token holders to vote on protocol proposals that any community member can submit. Admittedly, this system is not perfect. There are all kinds of problems such as voter apathy, high participation cost

There are several dashboards in the market with the capacity to track your assets, but the two leading players for dashboards are Zapper (previously known as DeFiSnap) and Zerion.

Prices of assets in the pool are algorithmically determined using the Automated Market Maker (AMM) algorithm. AMM works by maintaining a Constant Product based on the amount of liquidity on both sides of the pool. Let’s continue the ETH-DAI liquidity pool example, using 100 ETH and 20,000 DAI. To calculate the Constant Product, Uniswap will multipl

Dai (DAI) was launched in November 2019 and is also known as Multi-Collateral DAI. It is currently backed by a basket of third-party assets such as Ether (ETH), Basic Attention Token (BAT), USDC and Wrapped Bitcoin (wBTC). More types of collateral are continuously added based on community proposals.

Based on the top 5 stablecoins’ market capitalization, Tether dominates the stablecoin market with approximately 68% of the market share. Although DAI’s market share only stands at about 5%, its trading volume has been increasing at a much faster rate. DAI’s trading volume increased by over 158% relative to Tether’s growth of 95% throughout Q1 2021