‘Académie française.— La dénigrer, mais tâcher d’en faire partie si on peut.’ –Flaubert
Recognizing that most are not familiar with decentralized finance, or DeFi, details are in order. DeFi does not use an order book like regulated exchanges. Instead, it has over 72,000 liquidity pools. Anyone can be a liquidity provider to these pools or even start one and earn interest (more coins) for their effort. Traders use these liquidity pools to trade cryptos. The entire protocol is run by computer code called an automatic market maker. No humans are involved in the trading on these exchanges.
The largest decentralized exchange is Uniswap. To access it, one must use an electronic wallet away from a regulated exchange and connect it to uniswap.org. This exchange allows customers to trade several thousand different cryptos. Uniswap founder Hayden Adams tweeted that Uniswap executed $6.3 billion of trades on Wednesday, well above Coinbase’s first-quarter average of $3.7 billion. Uniswap experienced no downtime and no slow service. No customer lost money because the exchange let them down.
oil on canvas on two joined panels { Ellsworth Kelly, Orange Red Relief, 1959 }
related { Around 4.5% of all bitcoin mining takes place in Iran }
related { Crypto-mining gangs are abusing the free tiers of cloud computing platforms — They have been operating by registering accounts on selected platforms, signing up for a free tier, and running a cryptocurrency mining app on the provider’s free tier infrastructure. }
