Rainbow on FI

How dumb a timing can that be right? Especially when I just blogged about crypto cycle and DCA .  Nevertheless, I think it's a good learning experience and I didn't regret for not sitting on my hands. Let me share some quick takeaways that I have from dabbling in this very intriguing space. (Due to the high gas cost when I started, I migrated most of my funds to Polygon which is a Layer 2 solution to bypass the high gas cost on the Ethereum mainnet.) SushiSwap liquidity mining

I wrote at the end of my post The Awakening that I will post Awakening 2 when the crypto market crashes. Regretfully, I have to put up this post sooner than the blink of an eye (it's been less than 3 weeks?!).  I hope my Awakening post didn't cause anyone to chase the ATH. (Let me dig out and flash my blog disclaimer as a shield.)

In this post, I will talk briefly about the main risk of participating in  lending and borrowing Defi protocols  eg. Makerdao, Aave - which is  liquidation  and what can lead to it.

Defi stands for Decentralized finance. Tradfi stands for Traditional finance. If you are new to cryptocurrency, I would encourage you to read a little more in-depth on Blockchain platforms  here before you get started. Here are my five investment logics:

So this is how the story goes... Current BTC market cap  $1,049,693,871,380   [Source:  https://coinmarketcap.com/ ] (I know that the limelight is away from bitcoin for now. For crypto natives.) Ooh... just nice that Seth Godin's new post today is - But How Will You Know? When this insane crypto market crashes, I will post The Awakening2. -- Related posts: Making sense of some Defi concepts Some thoughts - tokens & asset backed crypto Like what you read? Follow me on  Facebook  or  Twitter  for updates and news that I dig. Check out  my referrals  for fantastic sign up bonuses on SAXO, Moomoo, Gemini, Celsius, Blockfi and more. 🤗 Thanks for reading! Disclaimer: Contents of this blog are personal opinions and NOT financial advice to buy or sell any mentioned securities, commodities or assets.

Making sense of AMM Instead of reading a lengthy write up by me on what is Yield Farming, I think the video by Finematics below would give a much clearer picture. Finematics (Youtube channel) has created many brilliant introductory and explanatory videos on various aspect of cryptocurrency and I would recommend a follow. My notes Liquidity mining - the process of distribution of tokens to users of the protocol. It's additional incentive for yield farmers (these tokens can be staked for additional reward). Leverage - Farmers can deposit their coins as collateral to one of the lending protocols to borrow other coins, they can repeat this procedures. Risks - liquidation risk (from leveraging), smart contract risk, defi specific risks. Crop rotation can help farmers keep up with changes in yields. You can check out  this article for brief descriptions of some popular yield farming protocols. Yield farming need not only be from liquidity providing, it can also be from lending and staki...