Lately I’ve noticed that more people are getting interested in DeFi (Decentralized Finance) applications. With this guide I would like to help you to get started with learning the basic fundamentals of DeFi and setting up your wallet and tools.

Fundamentals

Let’s start with some fundamentals first, so that you fully understand how DeFi works,

What is Decentralized Finance

Decentralized Finance (DeFi) is a movement that uses decentralized networks and blockchains to transform traditional financial products into trustless and transparent protocols that work without intermediaries.

Currently, almost all DeFi applications are built on the Ethereum blockchain and Binance Smart Chain (EDIT: Binance Smart Chain is…


If you’re just getting started with crypto, or are struggling with all the terms that go around on social media, this list is for you.

Behold the top 50 crypto terms you should know!

  • 51% attack

A 51% attack represents the situation where more than half of the computing power within a given blockchain of one person or one concentrated group. This ensures that this group gains full control over this blockchain. For example, they can stop all mining, stop all transactions or spend every coin of this specific blockchain infinitely often.

  • Address

A cryptocoin address is the location where…


In traditional stock markets, millions of dollars are invested into Index funds. The most popular category of index funds are ETFs, which are passively managed funds that fill their investment basket by tracking a particular index. This makes it easy for investors to have good spreading in their portfolio without putting too much effort and time into managing it. Crypto also has its indices, which are very similar to how ETFs work. Typically, crypto indices track currencies or tokens. …


You might have heard of forks. A fork is a piece of cutlery, which… Oops, wrong fork! Forks play an essential role within the crypto world. New blockchains and platforms are born on a daily basis because of them. Once you understand what forks are — And what they do, it will be much easier to wrap your head around most blockchains, cryptocurrencies and tokens.

What is a fork?

When a blockchain is getting too large, it is almost impossible to adapt new stuff to the protocol. Consider Bitcoin — Imagine that Satoshi comes up with the idea to adjust the protocol of the…


Every day, millions of transactions are performed on various blockchains. To perform a transaction, a user has to pay a transaction fee. Transaction fees are paid to cryptocurrency miners in exchange for their transaction verification work.

Consensus mechanism

All transactions that take place on the blockchain are verified by a consensus mechanism on the network. In short, a consensus mechanism is a fault-tolerant mechanism that is used in computer and blockchain systems. It is used to achieve the necessary agreement on a single data value or a single state of the network among distributed processes or multi-agent systems, such as with cryptocurrencies.


Many new tokens are created on the blockchain every day. However, these tokens can be very different from each other in terms of usability. While one token could give you the right to profit sharing, the other gives you the right to perform certain actions on the blockchain and yet another type of token functions as a digital share.

There are currently five different token types, with each token type having its own utilization. The five token types are:

  • Asset Tokens
  • Equity Tokens
  • Utility Tokens
  • Reputation Tokens
  • Security Tokens

The above mentioned tokens will be further explained in this post.

Utility tokens


Traditional banking does not offer any attractive interest rates anymore. Some of them even go so far as to have a negative deposit rate. Because of this, It is getting more popular by the day for investors to move their money from their banking account to centralized exchanges to buy stocks or crypto. And then there are investors who take it even further: They invest in DeFi. It is common knowledge to spread your investments in, for example, various stocks, crypto and indices to minimize risks. In case of stocks and indices, this would still require the investor to invest…


Compared to the traditional stock market, the crypto market is extremely volatile. During bull runs, profit can easily be made: You invest (in a coin you researched thoroughly) and wait for your profit to grow. But what if the bull run turns into a bear market? In what assets should you invest? This is where stablecoins come into play.

Why stablecoins exist

Stablecoins have different functions. We will discuss two of them below.

Hedging against the volatility of the price of crypto coins

One of the main arguments against cryptocurrencies is that the price is too volatile. …


The crypto market took a big hit this week. However, new opportunities arise during the most bearish momentum. Let’s take closer look at Zapper.fi’s highest yielding liquidity pool opportunities on Ethereum of week 25.

1. With a ROI of 151.19%, Uniswap V2’s WOMI/ETH liquidity pool takes the crown. Wrapped Omi (WOMI), is the token of technology company ECOMI. The company focuses on developing a digital collectibles space through it’s VeVe app. The VeVe app allows users to buy digital collectibles through it’s marketplace. Users can buy common, rare and one-of-a-kind digital collectibles.

Tokenomics

  • Total supply: 750bn OMI
  • Ticker symbol: OMI

Yield farming is becoming increasingly popular among crypto investors. Of course, this is not illogical: DeFi platforms offer much higher interest rates compared to traditional banks. To understand yield farming, you first need to know what the interest-on-interest effect (or compound interest) is.

Compound interest

When you are saving money at a bank, you receive an interest payment for this: the so-called savings interest. Depending on the chosen type of savings, the interest is paid into the savings account or another (checking) account. If the interest payment is added to the savings account, you also accrue interest over that interest amount. …

Mos DeFi

Experienced Crypto and DeFi content writer.

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