In today’s post we take the perspective of a liquidity provider (LP) and ask: how much you can expect to earn by providing tokens to the reserve pools?
Uniswap, Balancer, and Curve have achieved to construct purely peer-to-peer exchanges which do not require any intermediary, and attracted already many users. But it is important to bear in mind that things could go wrong when using these AMMs naively as a price oracles.
Early decentralized exchange (DEX) proposals took their inspiration from classical exchange markets and made use of order books to match sell and buy orders. A complementary approach to offchain order books for decentralized exchanges uses the concept of automated market makers (AMMs). In this post we look at the basics of the following three AMM projects: Uniswap, Balancer, and Curve.
Market makers at stock exchanges are companies or individuals who stand ready to buy and sell securities. Similarly, market makers at crypto exchanges sell and buy crypto assets on a continuous basis at a publicly quoted price. Since everbody can place an order at crypto exchanges, like e.g. Binance or BitMEX, and order execution is […]
Public blockchains allow insertion of arbitrary data. Even specific-purpose blockchains like Bitcoin already contain a lot of non-financial data. Although this data insertion can be beneficial in some use cases (e.g. proof of existence), it can also cause damage. If a blockchain contained videos with instructions on how to torture someone, there would immediately be broad consensus that this data must be deleted. But since blockchains are supposed to be immutable databases, the question is: what can be done if this happens?
The security of your crypto-assets depends on one piece of information that you must protect: your private key. If your private key is stolen, all your assets can be stolen. If your private key is lost, all your assets are lost.
Any information stored in a blockchain is supposed to be preserved forever, nobody will be able to change it or even less erase it. But is this really true? Is there any chance that governments or private groups with enough money to finance costly attacks might delete information from a blockchain?
Blockchains are already used to store non-financial data for diverse purposes, e.g. to prove authorship of ideas or to prove the existence of a document. One of the largest files stored successfully into the Bitcoin blockchain is an image of Nelson Mandela.
If you’ve been following crypto news over the past few months, you have probably heard the words Polkadot and Substrate. However, you might also be curious about what they are exactly, why they’ve been on the news so much and how relevant they are to your business. This article aims to give you a clearer […]
Micropayment take place in pay-as-you-go software service models, micro donations, and the Internet of Things (IoT). In these contexts payments for values which are usually under the smallest unit of fiat money (e.g. $0.001) are needed. Prepaid cards can solve this problem. Another approach uses cryptocurrencies in the blockchain, having the advantage of allowing exact […]
See our updated article: Algorand Block Explorer and CoinFabrik spin-off Randlabs. AlgoExplorer: A tool for retrieving human-readable data from the new Blockchain Algorand. As you probably know (or you should if you are in the crypto environment), there is a new blockchain right around the corner: Algorand. We are glad to have the opportunity to […]
Lately, there has been a lot of talk about permissioned blockchains, in which only certain entities have the authority to validate transactions and generate blocks. The use of these technologies is currently highly required by different companies, since it allows them to store data in a decentralized way and show complete transparency in all their […]