Settings
Light Theme
Dark Theme

DeFi: Sun Challenging Buterin

DeFi: Sun Challenging Buterin
Sep 5, 2020 · 8m 26s

You’ve probably seen that DeFi is heating up, which would be an understatement. And last 24 hours, it was really been rough for a lot of crypto, I guess what...

show more
You’ve probably seen that DeFi is heating up, which would be an understatement. And last 24 hours, it was really been rough for a lot of crypto, I guess what started it off is that a bunch of whales liquidated on various exchanges and that sent Bitcoin into a tailspin. Whenever macro forces were at work, it almost kissed 12,000 and now it’s down to almost 10,000.One must also bear in mind that all crypto is pegged to Bitcoin. Essentially, if you go to on any major exchange, they’ll all have BTC crypto swap pairs or crypto pairs. So when Bitcoin goes down, most all the ecosystem follows, except fiat or commodity-pegged tokens, but everyone’s materially affected except in the last 24 hours, you’re seeing Tron actually actually go higher.The reason? JustSwap. Justswap is the brain child of, as you might expect by the name, Justin Sun, the leader and architect of Tron. Justin is rolling out all sort of DeFi plays and is actively trying to be the effective Ethereum killer in the space. His chief tool is this Uniswap V2 clone in JustSwap, coupled with $SUN and other Yearn.finance-type fair-launch plays.And the difference between Uniswap V2 and V1 is that V2 actually sends you tokens that are representative of your portion of the pool. And what’s kind of interesting with JustSwap is it takes that Uniswap open source protocol and they integrate as the balancing pair TRX, which serves to further limit the circulating supply of TRX, allowing buying pressures to press the price upward. And the thing with Ethereum right now is that even Vitalik Buterin will say that Ethereum is under stress due to the costs of doing a transaction being prohibitively high.It’s to the point where some people were doing screenshots of it costing $35 to push through a standard transaction they wanted with some degree of swiftness. A few days ago it was 450 Gwei for a half an hour confirmation, which is insanity, because I remember I would wait half an hour when the Gwei got to 10 and I’m like, I’m not paying 10.Now it’s almost 50 times that. If people are trying to do DeFi on Ethereum, they’re seeing that let’s say they put in a thousand dollars, which you less than the vast majority of transactions. And if you’re going stake into DAI for a pretty high yield at the top single digits or ~10% then if it’s $35, that’s 3.5% percent off the bat, representing almost four months in the hole before you even begin getting a positive return. While banks do often give 0.1% or nothing at all on a checking or savings, at least it’s FDIC insured such that your access to the principal is sound and swift. So the high rate of return is an attractive proposition, but you either have it to go into it with many hundreds of thousands in order for that $35 to be a blip.Or you have to figure something out with gas so that you put a transaction in only when the gas hits a certain amount for a half an hour confirmation so it doesn’t get lost and you have to send it through again, or you have to pay something in order to even cancel the transaction, to get back the original principle of what you were sending out.Tron doesn’t have these high transaction fees issues. You can stake or “freeze” your tron coins and you’ll get some allocated “energy” to do transactions. And then you can also lease Tron energy. Tron compares most closely to EOS with their “freezing” feature having much in the way in overlap to EOS’ CPU model that requires a similar stake and reward to do functions with the blockchain mainnet.It’s proving to be a workable way to do DeFi and people are getting some traction. I saw DeFi watchdog Chris Blec mentioning Tron and some of the ones that are making some headway against Ethereum.The $Sun token that Justin Sun rolled out most closely mirrors the Yearn. Finance token. They allow you to stake your tokenization of your position in your chosen JustSwap to be granted this other type of token: Pearls, Hotdogs,...
show less
Information
Author Rekt Rob
Website -
Tags

Looks like you don't have any active episode

Browse Spreaker Catalogue to discover great new content

Current

Looks like you don't have any episodes in your queue

Browse Spreaker Catalogue to discover great new content

Next Up

Episode Cover Episode Cover

It's so quiet here...

Time to discover new episodes!

Discover
Your Library
Search