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DreamAnalysis | Understanding Liquidity Pools in DeFi EP03✨ Welcome to the Third Lesson of DeFi Education! 🔄 In the previous session, we discussed liquidity pools and understood that they serve as a source of passive income. Today, I want to talk about how profits and losses occur in liquidity pools. 👀 Common Scenarios in Liquidity Pools The most common scenario is when the prices of the two tokens in the pool remain stable, allowing users to earn income solely through transaction fees. 🔼Price Increase Scenario The second scenario occurs when both tokens increase in value equally. For example, in the ETH-BTC pool, if Bitcoin and Ethereum both rise by 20%, the user not only earns fees but also benefits from the increased value of their tokens. 📉 Price Decrease Scenario In the next scenario, both tokens may decline in price equally. Here, the user still earns transaction fees, but the overall value of their Bitcoin and Ethereum holdings decreases. 📊 Asymmetrical Price Movement If one token significantly outperforms the other, the number of tokens held by the user decreases, and they miss out on the potential profits from that token's increase. Conversely, if one token experiences a substantial drop in value, the user's assets become more concentrated in that depreciating token, leading to potential losses. 🧠 Understanding Optimal Strategies These various scenarios can arise for users when creating liquidity pools. As you progress in this education series, you will gradually learn how to identify the optimal conditions to maximize your profits. ⏰Upcoming Topics In the next session, I will cover different types of liquidity pools, such as liquidity pool staking, to gradually guide you into the world of DeFi with real money. ❌Disclaimer The information provided in this lesson is for educational purposes only and should not be considered financial advice. Liquidity pools and DeFi investments involve significant risks, including potential loss of capital. Please conduct thorough research and consult with a financial advisor before participating in any DeFi platforms. The channel and its creators are not responsible for any financial losses incurred.
by DreamAnalysis
DreamAnalysis | Understanding Liquidity Pools in DeFi EP02✨ Welcome to the second DeFi educational content! 🔄 Active vs Passive Income Recap In the previous session, we discussed the concept of active and passive income. To briefly explain, active income refers to the income one must work for every day, while passive income does not require daily effort, and one can still earn money over weeks or even months without doing anything special. If you want to read more about this concept in detail, you can check out the first part of DeFi education in this channel. 📅 Introduction to Liquidity Pools Today, I want to dive into the concept of liquidity pools for tokens and how these tokens generate income. First, I’ll explain what a liquidity pool is and how it has evolved from the past to the present. ✅ From Barter to Currency In ancient times, before the invention of money, people bartered goods with each other. For example, they would exchange wheat for meat. But there were days when no one had meat available, and those who needed it couldn't find what they were looking for. After the creation of governments, with rationing and the supply of necessary goods, this problem was somewhat solved, as any time a commodity became scarce in the city, it was quickly brought to the market so people could obtain it. 🏛 The Role of Banks and Exchanges With the establishment of banks and exchanges, people shifted from bartering goods to exchanging currencies, but the issue of availability still exists. Sometimes, banks or exchanges don’t have the currency a person is looking for. For instance, someone who wants to exchange their dollars for euros can likely do so in most exchanges because euros and dollars have high liquidity. However, finding an exchange that will give Turkish Lira in return for dollars may be harder because Lira doesn’t have high liquidity in most countries, and the bulk of its liquidity is in Turkey. 💵 Liquidity in the Crypto Space In the crypto space, there are also many liquidity pools. For example, Binance is the largest cryptocurrency exchange because 1) it has a large user base, and 2) it has large liquidity pools. This means that the market depth on this exchange is high, allowing users to buy and sell their coins and tokens without causing price fluctuations. 📊Trading without Price Slippage For instance, if someone wants to sell $1,000 of Bitcoin at a price of $60,000, and someone else wants to buy the same amount at the same price, the transaction can happen without moving the price, and the exchange earns a fee from both parties. 🕯 Price Fluctuations with Lower Liquidity In another scenario, someone wants to buy $1,000 at $60,000, but the second person is only willing to sell $900 at that price. In this case, the price moves upward, and now the buyer purchases $900 at $60,000 and the remaining $100 at $60,001. If another seller offers $100 at this price, the transaction happens, and the price moves slightly higher. So now we understand how price changes and how exchanges earn fees. 🌱 DeFi’s Liquidity Pools and Token Swaps This also exists in DeFi. For example, when you exchange Ethereum for Bitcoin through the Uniswap platform, you are essentially trading, and Uniswap needs to have Bitcoin in its reserve to give you in exchange for your Ethereum, just like Binance does. But there is a significant difference between Binance and Uniswap. 🟢 As mentioned earlier, Binance creates liquidity pools, and therefore it charges fees for your trades. However, on Uniswap, users themselves can create liquidity pools and earn transaction fees. 🔔 For example, a user can deposit their Bitcoin and Ethereum into this platform and earn fees from the trades of other users. So if someone wants to exchange Ethereum for Bitcoin, they can give their Ethereum to the user who created the liquidity, and the liquidity provider will give them Bitcoin and earn the transaction fee. All these processes are automated, which is why the user who provides liquidity earns passive income. 🤝 I’ll stop here so that the explanations don’t get too lengthy, and in the next part, I’ll explain more about liquidity pools. ❌Disclaimer The information provided in this lesson is for educational purposes only and should not be considered financial advice. Liquidity pools and DeFi investments involve significant risks, including potential loss of capital. Please conduct thorough research and consult with a financial advisor before participating in any DeFi platforms. The channel and its creators are not responsible for any financial losses incurred.
by DreamAnalysis
DreamAnalysis | What Is DeFi? EP01✨ Welcome to the first DeFi educational content! 📅 Today, we have prepared the first DeFi lesson for you, and we want to present this sweet topic completely and comprehensively in this channel. In this lesson, we want to cover the basic and fundamental concepts of DeFi, review DeFi in general, and assess the risks and how to generate income from this space. 🧩 To better understand DeFi, it is better to first become familiar with the concept of "Passive Income." The income we have in life is divided into two types: active and passive. ⚡️ Active Income Active income means the income that a person must earn every day to receive a salary in exchange for the work they do. For example, an employee who earns $10 per hour has active income because they only earn money as long as they work, and if they don’t work for an hour, they won’t receive that hour's wage. In the crypto market, active income can be exemplified by futures trading. Although you don’t get paid hourly, the money you earn depends on market conditions. However, if you stay away from the market for a week and don’t make any trades, you won’t make any profit. Most jobs and most of the population have active income. 🔄 Passive income Passive income means the income that a person doesn’t need to work every day and hour to receive in return. For example, if a person deposits $100,000 in the bank and the bank gives them a 5% annual interest, after a year, they will have $105,000, and they didn’t do anything for the $5,000 they earned. Of course, we must consider that this person took on a risk and put their money at risk because the bank might go bankrupt, and all their capital could be lost. In the crypto space, DeFi acts as a passive income where the individual earns profit not based on time spent but by taking on risks. 🌱 Now that we understand the difference between active and passive income, we will better understand the concept of DeFi. 🔑 What is DeFi? DeFi (Decentralized Finance) in English means "decentralized finance." In fact, the DeFi space is a kind of decentralized bank where you can do things like lending, borrowing, creating liquidity, staking, etc., completely decentralized. Given its decentralized nature, all the money exchanged in between is moved by the platform's users, and the profit and loss of this process are also in the hands of the users. 💵 For example, you can create liquidity in decentralized exchanges and receive transaction fees when other users make trades, or you can lend the money you have and earn interest in return for lending it to another user. All your contracts and transactions are recorded on the blockchain and can be tracked. In future lessons, we will examine all DeFi income generation methods and cover all methods step by step and practically. ✅ So far, we have mentioned the good parts and advantages of DeFi, such as DeFi being a passive income that doesn’t require daily work and is completely decentralized. But there are also risks that may keep many people away from this space. Let’s go over the risks of the DeFi space. ❗️ DeFi Risks Let’s move on to the risks you must accept when entering the DeFi space. First, let’s start with the market trend. In DeFi, we buy various coins based on their use cases, and it is possible that these coins may lose their value over time and be worth less than when they were purchased. So, if the market is bearish, the likelihood of losing money in the DeFi space increases significantly. Of course, in future lessons and when we reach advanced training, we will teach you how to profit in a bear market. However, if the market is bearish, the chances of losing money increase. 🔔 The next risk you must accept when entering DeFi is related to device and wallet security. There are always hackers trying to seize your assets in any way possible, and since DeFi is completely decentralized, there is no way to pursue it if your wallet gets hacked. So, by entering DeFi, you must also consider the possibility of being hacked, in which case all the capital you have invested will be lost. 📍 The last risk is the platforms and websites to which we connect our wallets. By connecting your wallet and signing digitally, which is stored on the blockchain, the platform in question will have limited access to your wallet. If you sign the wrong contract or the site gets hacked, the assets in your wallet may be lost. 📚 These three risks are the most important in DeFi. But how can we reduce and control these risks? First of all, you must manage your capital. Given the risks of DeFi, the maximum amount of capital that I think can be invested in DeFi is 10% of your crypto capital. For example, if you have $100,000 in the market, invest a maximum of $10,000 in DeFi so that if your investment is lost, only 10% of your total capital is destroyed. The second solution is that you can increase security by creating several wallets and distributing the 10% of the capital you want to enter the market between them so that if one of the wallets is hacked, only a small part of your capital is lost. 🤝 I hope this lesson has helped you. DeFi training will be provided every Saturday so you can learn this skill without any cost. Next week, we will have training on the initial steps and prerequisites for entering DeFi, so I recommend continuing with us. ❌ Disclaimer The information provided in this lesson is for educational purposes only and should not be considered financial advice. DeFi is a highly volatile and risky market. It is essential to conduct thorough research and consult with a financial advisor before making any investment decisions. The channel and its creators are not responsible for any financial losses incurred.
by DreamAnalysis
Gone are the days of passive investing, but...Gone are the days of passive investing, but mid-term trading could be the solution. The term passive investing was first made famous by Warren Buffet, who once said, 'If I like a stock, I will hold it forever.' However, in recent years, he has been seen cutting losses on his wrong decisions and taking profits when he finds the time is right. The dynamic of the markets have changed, and he has adapted to them. Technical Reasons - From the chart, it's clear that the days of passive investing are behind us. We can refer to the Dow Jones or S&P Index; they provide similar readings as Nasdaq, although Nasdaq has a shorter history. Since the beginning of 2022, the great volatility started with a year of bearishness. In my opinion, this could be a start of a long-term bear. What we are seeing in 2023 rally, possibly a bear retracement. Let’s support my analysis with the fundamental factors. 3 Fundamental Reasons – • Why did the decades of long-term growth, forming a linear bull market, come to an end at the beginning of 2022? This is because it marks the beginning of long-term inflationary pressure that we all have to contend with. To counter inflation, one of the most effective measures is to raise interest rates. As we all know, higher interest rates bring challenges to businesses and stock markets. Please take note of the timing. Inflation first exceeded 2% in April 2021, and since then, it has been on an upward trend, something unprecedented in the last 40 years. However, the Federal Reserve only began raising interest rates in March 2022, while the markets peaked at the beginning of 2022. Consumer Price Index Feb 21 1.68% Mar 21 2.66% Apr 21 4.15% May 21 4.94% Jun 21 5.34% Jul 21 5.27% Aug 21 5.21% Sep 21 5.39% Oct 21 6.24% Nov 21 6.83% Dec 21 7.10% Jan 22 7.53% Feb 22 7.91% Mar 22 8.56% Apr 22 8.22% May 22 8.52% Jun 22 9.00% • Why did the market turn bullish in 2023. Many attribute the rally to AI, but it goes beyond that. By the end of 2022, the market was still hovering around its lowest point. However, as seen in the inflation numbers below, there was a gradual decline from 9% in June 2022 to 6.5% in December 2022, creating a divergence between this positive news and the market's performance. At that point, I was preparing for a bear rebound or retracement. Of course, the inflation number continued its decline to 3.2% in October 2023, and the rally has continued until now. Continue Price Index Jun 22 9.00% Jul 22 8.50% Aug 22 8.30% Sep 22 8.20% Oct 22 7.70% Nov 22 7.10% Dec 22 6.50% • Why have the days of passive investing come to an end? Unless inflation can back down to 2% in a sustained manner, we should expect to see much more volatile markets in many years to come. Traders welcome volatility but not investors. There are reasons why back down to 2% in a sustained manner is unlikely to happen. Please leave me a comment, I hope to exchanges ideas with you. E-mini Nasdaq Futures and Options: Minimum fluctuation 0.25 index points = $5.00 Code: NQ Micro E-mini Nasdaq and Options: Minimum fluctuation 0.25 index points = $0.50 Code: MNQ Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
CME_MINI:NQ1!Short
by konhow
The mathematical model of Hugh Math IndexThe mathematical model of Hugh Math Index ✅ What is Hugh Math Index? It is a rule-based indicator designed to measure the overall growth of the crypto market by the market capitalization of passive investors ✅ Fund Manager 🔹 Mo'men Mohammad Jaradat ▪️ Institutional investor and developer of trading algorithms and investment research ▪️Has more than 7 years of experience in many financial markets ▪️ Worked on many scientific researches on financial mathematics and quantitative methods in investment decision making ▪️ He holds many professional certificates, the most important of which are EPAT, CFA, FRM ▪️ Previously worked with several research teams to develop machine learning algorithms for kaggle trading strategies ♻️ The main criteria for selecting the components of the index 🔰 Safety Standards ▪️The original must have more than 85 points by accredited security audit agencies 🔰 Liquidity Standards ▪️The asset must be listed on three central exchanges with a security rating of more than 7 points ▪️The weighted average monthly trading volume of the asset must be more than $100 million 🔰 Subtraction Criteria ▪️The asset must be publicly traded for a period of no less than 3 months 🔰 Exclusion Criteria ▪️ Stable Token ▪️Tokens (don't have their own blockchain) ▪️Coins under attack 51 ▪️ Coins that have litigations with the US Securities and Exchange Commission (SEC) ✅ The investment methodology has been designed based on numerous academic researches by an independent working team, Mo'men Jaradat. ✅ More details will be shared to copy the investment at the time of the launch of the fund.
CRYPTOCAP:TOTALEducation
by Mr_Jaradat
4
🔥DeFi Opportunity - STRONG Entering MAJOR Buy Zones🔥The StrongBlock protocol offers “Nodes as a Service” (NaaS) which allows you to create a full Ethereum and Polygon nodes in a few seconds with no technical expertise. You then get rewarded 0.9 STRONG per day. WHO & WHAT IS STRONGBLOCK? StrongBlock was the originator of NaaS projects and its main co-founder is David Moss who was the VP and Head of Development for Block.one the creators of the EOS blockchain (currently #57 on CoinMarketCap) before launching StrongBlock. The problems that StrongBlock solve are that nodes are an important part of decentralization yet almost all blockchains currently have too few nodes to be anywhere near decentralized and these lack of nodes also become a weakness in the strength of their blockchain. PATIENCE Patience has been the key for potential success in STRONG. StrongBlock has a fully doxxed team, a clear and strong roadmap and most importantly, they solve real world cryptocurrency problems. For these reasons, StrongBlock has the potential to become a major in crypto. You simply had to wait for the right time to enter to start earning your daily rewards, benefit from price appreciation of STRONG which will greatly reduce the time to recoup your initial investment and be able to purchase more nodes because the investment cost has decreased. BUY ZONES 🧨🧨🧨 After an extended period of price decline, STRONG has entered major buy zones. Currently STRONG is in Buy Zone 1 🔥 which is based on historical support & resistance ranges. This range is a good place to start DCA'ing (Dollar Cost Average) into STRONG. STRONG has the potential to go down into Buy Zone 2 🔥 which is a great zone for you to continue to DCA into STRONG. Zone 2 is where it will encounter some historical strong price volume activity which may become a floor to the price. If STRONG falls through this zone into Buy Zone 3 🔥 , then this is definitely a great zone to continue to purchase STRONG as it is in the $0-$50 range which is a new territory for the price but the fundamental strengths of the project remain, therefore a great buy zone to accumulate STRONG. ⭐ If you liked this content, please consider subscribing and giving it a Thumbs Up 👍. If you have any feedback or suggestions, please leave a comment below as I answer each comment. Namaste 🙏
SLong
by TheUnbounded
4
#HEX up over 42% in a day!Hope some of you caught those wonderful prices in the teens. crytpo's as we all know correct 60-70% some never recover of course HEX has suffered many such corrections over the course of two years of operation. an ideal scenario for me would to get back n the 30's dip/consolidate so e can get a measured move well into the new highs. 37% APY remember on average length stakes around 12% for one year and getting into the 60's for max length bonus length stakes. Stake it until you make it.
Long
by BallaJi
1
Centrifuge (CFG) - undervalued low cap gem (Kucoin)Centrifuge bridges real-world assets like invoices, real estate, and royalties to DeFi. Borrowers can finance their real-world assets without banks or other intermediaries, and providing liquidity is open to everyone, investors receive a return plus CFG rewards. By opening these doors to small and medium enterprises, which have historically faced financial issues, we are enabling them to access financing securely, transparently and efficiently. Centrifuge is mainly looking for Tinlake (tinlake.centrifuge.io) investors, asset originators, and validators. An Asset Originator is a company that advances financing to multiple businesses or individuals. Tinlake, a Dapp built on the Centrifuge chain, allows Asset Originators to finance their assets and investors to invest in them. Tinlake investors can invest in the pools made by asset originators, and receive a stable return. Source - blog.coinlist.co CFG currently on an uptrend since the huge sell-off soon after the coinlist token unlock. This is not financial advice please DYOR on this project and place stop loss below the red lines accordingly. This is massively undervalued and going to moon soon. Start accumulating for long term and take advantage of Tinlake for passive income.
Long
by CryptoCafeClub
2
FTMBTC - prepairing for bullrunFantom is currently in accumalting phase. In the simulation on the righ site down on the chart is described how the bottom works with triangle. We can see strong downtrend, after that is formed symetrical triangle and then is usualy breakout which can start bullrun. So you can execute a trade now, place stoploss below the support trendline of triangle and wait for the targets. . First target can be the red box, 2nd around 340 sats. and last around 392 sats. . You can see a great long-term opportunity too. So for a long-term trade you can buy now, place stoploss below the last swing low of the triangle and wait for 2nd and 3rd target.
Long
by HarmonicParadise
1
|RENBTC| Grab your Darknode at lowest possible price !Overview: Republic Protocol is a decentralized dark pool exchange protocol, built for trading large volumes of digital assets. It is a decentralized network that utilizes secure multi-party computation to match orders without exposing the price or volume or of the orders. Dark pool exchanges powered by Republic Protocol can support large volume trades, with minimal price slippage and market impact, whilst mathematically guaranteeing inherently fair order execution. Intent: The team at Republic Protocol is determined to bridge the gap between traditional finance and digital assets. Building a base layer for the first provably fair dark pools is a necessary component to achieve this, with the ultimate goal of not only making a superior product but moving the entire ecosystem forward. So basically you need 100.000 REN to own a Darknode and get fees from the REN exchange . Perfect for Passive Income on the long run Perfect entry would be at 556 sats More details about ren republicprotocol.zendesk.com Our Telegram @insiderfoundation Twitter @insider_fund
Long
by Mr_Berns