[Music]
welcome back to the world of cryptos and
welcome back to the crypto corner
i hope you're well and i hope you
survived the recent correction in the
market without any harm
this week i'd like to focus on something
that i touched on before
which is d5 decentralized finance and
the reason is
that some of our viewers started asking
questions hey isn't d5 a scam
why should i be part of this year so let
me answer you those questions
first no it's not a scam it's on the
country
it's going to be the future of our
financial system as we know it
and yes you should definitely be part of
this year now
where is this coming from and if we look
at this website here you can see that if
you would provide ample eth as liquidity
you would get over a thousand percent
apr and that
sounds like magic right it doesn't sound
very real especially if you would put
money in your normal account in your
traditional bank
you would probably get 0.5 apr
so why is this number so big and what
i'm going to do now is i'm going to go
into the detail of where this number is
coming from
and i'm not going to be going too much
into too much detail
so i'm simplifying a lot but you will
get the idea
the first part is if we look at the
rates
of where the market is in the in the
crypto market
it's not that much different from the
traditional bank yeah so usdc
if i would provide usdc's to to
uh for example ava i would get 2.1
percent
uh interest if i would borrow at other
um usdc then i would got 4.4 percent
so far so good right so that's not
different so that's part one part two
is if i would provide liquidity and for
that we go to something called uniswap
and uniswap is where you can exchange
uh tokens so if you've got eth and you
want to buy
let's say band then as you can see down
here
you would have to provide a liquidity
provider you would resear you would have
to pay a liquidity provider fee
and this this year and if you would
provide money into this pool so if you
in other words you provide eth and band
so that other people can participate in
this year
then you would get part of this uh fee
most part even yeah so it's very simple
you click on pool
you click on add liquidity you say what
is it going to be
and then you approve this year and
that's it that's all you have to do
so that's how you provide liquidity
that's something that is unknown in the
current market yeah
that's reserved to banks market makers
federal reserve you're not allowed to
provide
you're not allowed to be a market maker
in the traditional market
crypto market is different you can be
participating in that
the fourth one is something that we know
also in the traditional market
and there are high incentives and let me
show you some examples first one
is um here with credit cards
if i sign up with this blue cash
preferred card
they would give me 250 dollars straight
away
or if i would go with chase sapphire
there's a bonus value of 1200
attached to this card so as you can see
there's also marketing costs
that they are investing in that you will
participate off
so that's that's one way of um
how the so-called traditional market is
incentivizing you to be part
of their network other example is
flights yeah i've kind of
booked a flight now at the moment from
dallas to las vegas for only 36 dollars
return
no airline will survive on those rates
but they do that to attract people
to fly uh on this day with that
uh airline on that on that journey
if you booked that a day before that
would be probably 300 400
um same with air miles why don't why do
they give you air miles
so that you can book them after a few
flights
a free flight same thing it's just they
want to attract you to be part of their
network
and the third one that i forgot to
mention before is
taking rewards so if i i would take for
example tesla's
to secure the network um
by proof of stake then tesla's would
give me in this case through coinbase
five percent staking fee yeah that's
just by providing by keeping my money
my teslas in a wallet and not using it
i would receive five percent so there
are a few incentives that are compared
to the traditional market equivalent and
not that much different
to uh the default market now the beauty
of the default market is it's software
it's not just some people sitting there
and deciding what the interest rate is
or what the
incentives are going to be it's a
software
platform that you just participate in
and it's neutral you can nobody will ask
you for some
weird uh passport pictures or so you
just be part of that
and that's the strengths of this year so
these software packages
or software platforms don't have high
costs
in building people and so on just a
bunch of people that coded something
they put it online and that's why they
can
can offer you so high interest rates
now before you really dive into this
yeah i would like to show you two
websites that are important
the first one is here defy safety dot
com
because here you can see which platform
is really safe and which one isn't safe
so if i take ave for example
which is one of the big ones then they
have got a score of 84 percent
and why it's because execute code
validation 96
documentation because it's all public
available they documented everything 90
testing almost done audit like in a
traditional market with finance where
you've got an auditor to
uh review your books so they do that
here with the code so
it's a third party that reviews your
code how good it is
so this is pretty good but on the other
hand you've got something like based
that bring in principle did not do
anything really
i mean they just put the code online and
didn't even test it
beforehand there's nothing is documented
and an audit was done only to 20
so this is something that i would really
be careful of
yeah unless you you are you know what
you're doing i would not be
part of those that are in here in red
because it's a little bit dangerous
that's the first website the second
website is one where you can learn a lot
it's defyrate.com this includes
everything in relation to the
decentralized finance market
yeah so if you want to learn what uh
how insurance can be done and
what the lingo is everything in relation
to d5 yield farming and so on
you'll find on this website it's very
well explained and i can only highly
recommend you to be
a part of that anyway i hope
i was able to explain to you why it is
important that you participate in this
uh just play around a little bit don't
plan to make thousand two hundred
percent just make hundred percent
um but at least be part of this year and
learn more about
uh d5 because as you saw it is going to
be the future
um anyway that's it from me today
i hope you enjoyed it i hope you learned
something i thank you very much for
watching
and i'm looking forward to see you next
week again thank you
bye bye thanks so much robert now if
you're watching
we are not giving financial advice this
is uh educational purposes on how the
cryptocurrency market works
and things that you need to know and
different uh tips and tricks
uh you know as we've always said in the
past you know and as robert has said
you know only invest what you're willing
to lose because the market is very
volatile
it's always on and things can change in
a heartbeat so again we're not giving
financial advice
it's just more so education for you
you