5. What is DeFi
A movement that uses open source and distributed
networks to transform traditional financial products
into a reliable and transparent protocol without
intermediaries.
6. Traditional finance
Financial intermediaries
Decentralized finance
• Requires trusted, centralised
intermediaries
• Batch clearing and settlement
• Higher fees and costly infrastructure
Blockchain protocol
• No intermediaries required
• Faster processing and management
• Lower fees and reduced infrastructure
cost
Source:Blockchain for Digital Transformation in Banking, FLOYD DCOSTA
7. Unbundling of financial intermediary functions
Lending/Borrowing
Investing
Exchanging
Transferring
Traditional
Banks
Banks/Exchanges
Exchanges/Brokers
Cash
Fintech
Lending Club
Robinhood
TransferWise/Revolut
DeFi
Tokenized P2P Debt
Tokenized financial
Products
DEX
Cryptocurrency
8. Benefits
Benefits and Concerns of DeFi
Concerns
• Permissionless
• Censorship Resistant
• Immutable
• Reduced Counterparty Risk
• Transparent
• Open Source
• Programmable
• Efficiency
Source: Decentralized Finance (DeFi) Thematic Insights, Delphi Digital
• Regulatory risks
• Limited product/market fits
• Potential for high
spreads & low liquidity
• Limited on-chain throughput
10. The total usage volume of DeFi
Locked about 2.2% of total ETH
Source: https://mikemcdonald.github.io/eth-defi/ Source: https://defipulse.com/
11. Major services of DeFi
MakerDAO
CDP Portal
https://cdp.makerdao.com
83% of ETH locked of DeFi
Compound
https://compound.finance
4% of ETH locked of DeFi
Dharma
https://www.dharma.io
4% of ETH locked of DeFi
12. A use case of MakerDAO
Margin trading
(Long position on the ETH/DAI pair)
MakerDAO
CDP Portal
Exchange
14. A problem that I felt using DeFi
Portfolio management is difficult
15. A service to aggregate crypto asset information
• account balance and
transaction history
• present value
• DeFi portfolio
Watch your all crypto portfolio in a single page
Cross protocol position
monitoring
17. System
EthereumMy AppUser
Ethplorer API
Ethereum tokens data
LoanScan API
DeFi activities data
CoinMarketCap API
Cryptocurrency data
Etherscan API
Ethereum accounts data
• DONE: Monitoring account balance and transaction history
• TODO: Automatic aggregation of DeFi portforio