[Music]
come to the crypto corner this week
we've got some interesting news for you
but as usual let's start looking into
the market how did the market perform in
the last seven days if we can see no big
changes here last week it was a draw and
SEP 274 billion today or currently it's
278 billion
Bitcoin an increase of 2.4% in last 7
days but if we sort this year by 7 days
we see suddenly compound increasing by
292 percent the over 20 coins that had
an increase of over 15% and on the
downside only two coins lost more than
15% so what happened here why is there
suddenly such a big change and if we
look into the d-file market cap because
compound is part of the defy market we
see that most of those changes are
coming from compound so last week I
showed you this this chart and it was a
2.3 billion not 6.7 billion as you can
see most of that is coming from compound
now let's dive a little bit deeper into
this you can check what happened and if
we take a look at the compound plot
platform so compound finance we see it's
basically like a bank so you can supply
money to the environment or you can
borrow money and in the case of let's
say Bay 80 basic attention token you
will receive 27 percent and if you
borrow money you have to pay 34 percent
so far everything is fine now last week
compound was listed on coin base and
that caused a huge increase in price and
because of that this environment went
absolutely crazy and the reason is that
every time you take out a loan or
receive money you will be compensated
with comps which is the native token of
this platform so you receive money in
other words if you take out a loan and
to check that there's another website
called predictions dot exchange and if I
say I want to have 1,000 here
so enter 1,000 basic attention token and
I do calculate then I see that I will
receive on top of those thousand dollars
I will receive 17 percent interest so I
don't have to pay interest I will
receive 17 percent interest
now some people are clever and they take
that money and put it back into the
system and that's called yield farming
and with yield farming you can achieve
interests of over 100 percent now I have
to clearly say at this stage so it's a
huge disclaimer what you're hearing here
is not financial advice this is a very
young industry it's guided by software
and there are plenty of bucks in
software and also it can be hacked so
it's a very risky environment and if you
don't understand the details of what is
happening here please do not invest any
money even small amounts can be
dangerous because the fees can be as
high as fifteen dollars for one
transaction so just to give you an
example of why one has to be careful
here's somebody that put money into the
system and took out so he was doing
yield farming and then suddenly realized
that he had much less money available
and the reason is that he was liquidated
because of the interest that he didn't
consider and this is a hard environment
it's guided by software and if you don't
have enough collateral in the system you
will be liquidated there's nobody that
will call you and say hey you need to
put money in this year so you know
you're not liquid you're not being
liquidated and that's why you have to be
really please be careful I'm showing
this to you because defy as such is a
market that is coming as you can see
it's completely different to what you
are accustomed to as a bank customer but
it's the future
yeah it's decentralized which means
there is no entity behind this year it's
completely autonomous from any federal
institution or financial institution and
its global so everybody in the world can
participate here and
you can be your own bank by putting
money into it and taking money out but
as mentioned you need to understand what
this is about and so as long as you
don't understand things like what is are
they what do they do what wvd see
wrapped BTC ran BTC dy/dx wrapped eath
all those things if you don't understand
what is happening here please don't put
money any money into that there is no
there is no customer service that you
can call in case something goes wrong
but as mentioned this is the future this
is where finance will go to because it
cuts out the middleman it cuts out the
bank and you can do business directly
and it's secured because it's secured to
the theorem blockchain so more - more is
to come in this in industry more is
going to be invented and yeah anyway
that that's it from me and this week I
hope you enjoyed this short excursion to
the defy market then use on what's
happening there and thank you very much
for watching and I hope to see you next
week again so thank you bye bye
well thanks Robert always appreciate
your insight
just a reminder for those of you
watching at home we are not providing
basically financial investment advice
what we're doing is we're giving you the
information about the cryptocurrency
market and leaving it up to you to make
the decisions