Defi | Covalent

Archives for “Defi”

author By Ganesh on March 17, 2020

TLDR; Today we are excited to release an industry-defining notification engine for the Ethereum blockchain. In light of recent events that occurred with the Maker system, we leaned into our product roadmap to ship this urgent feature today rather than sometime later in the year. Our vision is to materially reduce the number of liquidations that happen to borrowers because nobody should lose funds due to bad or unavailable data.

Read more
author By Ganesh on February 23, 2020

TLDR; When investors evaluate the risks associated with Staking Yields, they are usually considering smart contract security risk, economic risk and perhaps regulatory/compliance risk. In this post, we make the case that there’s also an opportunity cost risk behind staking that an investor often overlooks. This is the risk of participating in a staking network as a validator as opposed to simply staying put on your initial cryptoassets. Our thesis is that this facet of risk will come under increased scrutiny as more Proof-of-Stake (PoS) networks come online.

Read more
author By Ganesh on February 12, 2020

Covalent is going to Denver to participate in the largest Ethereum – and other blockchains – event of the year. Ganesh (Covalent’s co-founder) will be giving a talk on the DeFi data availability gap and will showcasing common DeFi use-cases that can lead to a nightmare when it comes to record-keeping.

We really love the Ethereum community, so feel free to message Ganesh (his DM’s are open.)

Read more
author By Ganesh on February 9, 2020

TLDR; Staking is radical in the crypto world. It recreates parallels to traditional finance which is something mainstream investors understand. We make the case that though staking yields look approachable, they are still nuanced. An investor must think about token economics, security budgeting and tax efficiency when considering staking.

Read more
author By Ganesh on February 5, 2020

TLDR; Today, we are happy to open-source a compilation of customer research on the DeFi userbase. We’ve invested 100’s of hours researching the most engaged DeFi users to understand their immediate and urgent needs. We are also sharing our process of whittling down these insights into a list of priority action items. Part 1 of this post includes research on Set protocol and Gnosis wallets.

Read more
author By Ganesh on February 2, 2020

TLDR; Founders want to build big expansive products. In my opinion, starting to build a big product with lots of use-cases is the wrong approach and is very difficult to pull off. It’s better to start planning your roadmap as a set of narrow overlapping use-cases with a tight narrative. We present a repeatable process to apply to your product roadmap to achieve product-market fit and wide adoption.

Read more
author By Ganesh on January 26, 2020

TLDR; All blockchain data on Ethereum is public, yet getting data off them is hard. It’s messy, disorganized and time-consuming even for an engineer. If you’re non-technical – forget about it. 😡 In this post, we discuss a common use-case of MakerDAO with leveraged lending that can lead to a nightmarish situation when it comes to record-keeping. We have a solution – Covalent – to this specific problem and broadly to what we call the DeFi data availability gap.

Read more
author By Ganesh on January 22, 2020

TLDR; Towards the end of 2019, the Maker project released the next major update of their system – the Multi-Collateral DAI – usually abbreviated as MCD. An overlooked component of their system is the DAI Savings Rate (DSR) – a “risk-free” way of earning interest on your DAI stablecoin holdings. In this post, we’ll take a look at what the DSR is, how it works and how to keep track of your interest income.

Read more
author By Ganesh on January 17, 2020

TLDR; For better or worse, the crypto industry has fixated on Total Value Locked (TVL) in DeFi protocols as the unit of measure to benchmark the traction / adoption of this nascent industry. In this post, we make the case that it’s neither and the metric tracks factors irrelevant to traction/adoption. The entirety of this metric depends on the ETH-USD market.

Read more
author By Ganesh on November 20, 2019

Getting accurate crypto data is HARD and continues to be an adoption blocker. In this episode, we look at a surprising discrepancy of interest rates for a popular lending platform Nuo Networks.

Read more
author By Ganesh on November 7, 2019

Ganesh (Covalent’s co-founder) had the opportunity to speak to a group of DeFi enthusiasts last week in Toronto on sustainable business models in the blockchain chain. Video recording LIVE from the #DeFi Toronto meetup! https://t.co/nns5A7DIEq — Ganesh Swami (@gane5h) November 8, 2019

author By Ganesh on November 4, 2019

How does $400,000 of profit per month from #DeFi sound to you? Skeptical? 🤔

That’s what dYdX Protocol liquidators made in September 2019 by liquidating undercollateralized loans.

Read more
author By Ganesh on October 28, 2019

TLDR; We’re excited to launch DeFi behind the scenes – an exploratory look at business models and traction behind various decentralized finance applications on the blockchain. Two widely held beliefs about Ethereum DApps: 1) Nobody uses them for anything useful besides speculation and 2) There are no business models and nobody is making money. Our vision behind this series is to use data to provide a credible narrative behind the dollars and users that make these projects stick. We are experimenting with a video format to tell this story – short 5 to 10 minutes that builds a case.

We kickoff the first episode with InstaDApp - an intuitive frontend for MakerDAO, Compound, Uniswap and other decentralized finance applicaitons.

Read more
author By Ganesh on August 29, 2019

TLDR; Stablecoins have been all the rage in 2019 – arguably one of the few products on the blockchain that have found product-market fit. There are over 30 stablecoins live on Ethereum. But picking one stablecoin over another can be challenging. We need a deeper understanding of stablecoins to analyze investment returns, build portfolios and reduce risk. We explore the concept of velocities – an economic signal to determine the activity of an economy. Higher velocities correspond to more activity and vice-versa.

Read more