Part 1 — Introduction
Part 2 — Stable Coins, Borrowing, and the Balanced Network
Part 3 — Money Markets, Lending, and the OMM Network
Part 4 — Automated Market Makers: Unifi and ICONPOOL
Part 5 — Stable Asset Trading and the Equality Exchange
Part 6 — Optimizing Yield with Optimus
Part 7 — Where DeFi Has Gone Wrong
Part 8 — Yield Farming Strategies on ICON
Part 9 — How ICON Benefits from DeFi
If you’ve been paying even superficial attention to blockchain over the past year or so, it’s almost a certainty that you’ve heard the term “DeFi.” DeFi…
Below is a master roadmap for all releases/milestones for the ICON network. This will be updated frequently.
In the last chapter, we looked at the “automated market makers” (AMMs) that operate on ICON.
AMMs work great for exchanging assets that trade at different prices. But what about assets that should — under normal conditions — trade at the same price? The best example of this would be stablecoins, but it could also apply to assets that aren’t stablecoins but should theoretically trade at the same price (for example, wrapped versions of bitcoin such as wBTC and renBTC, which exist on Ethereum).
Here’s why utilizing a typical AMM for this sort of transaction isn’t optimal.
Let’s pretend you…
Toward the end of 2020, amidst the wave of new projects and P-Reps that began to emerge offering reward tokens to their voters, Metanyx officially announced that they too would be serving as a P-Rep on the ICON network and would be sharing a portion of their rewards with their voters.
However, their involvement in the ICON ecosystem dates back long before then, all the way back to September 2019.
At first glance, their reward model may come off as just another “give back” reward model. …
So you bought ICX back in 2017 or early 2018 when hype and attention were at their peak.
Since that time, you’ve seen the price fall by a good amount, and maybe you stopped paying as much attention to cryptocurrency projects, including ICON.
But now that it looks like the market is heating back up again, you’ve been inspired to re-evaluate your holdings, which has led you to ask “Has ICON been making progress? Do they have things coming down the pipeline? Is the token worth holding?”
Well, this article is here to help answer those questions for you!
As an ICX holder, it’s likely you’re always wondering how certain developments and projects will benefit the ICON network: more specifically, how will they increase the number of transactions on the network (and thus the demand for the token)?
Fortunately, with a full suite of DeFi products on the network, there are a number of ways the transaction count will increase.
So what is yield farming?
The most simple explanation of yield farming is platforms giving users tokens for utilizing those platforms. And in most cases “utilizing” the platform means depositing your funds (aka capital) for some purpose.
Not so scary when you think of it that way, right?
Of course, there are a lot of ways this concept can be abused, either intentionally or unintentionally (as we saw in the prior chapter); however, there are a lot of ways this concept can be used for good.
Like many other applications on blockchain, DeFi (and yield farming) is a tool available…
Now that you’re caught up to speed on the various DeFi products that ICON has to offer and how you can use them, I want to take a minute to dispel some misconceptions about DeFi while also being sure to emphasize the risks.
Since you know a bit more about these protocols, they’re probably already less scary in your mind than they used to be. But it’s possible you still have memories of headlines from the Summer/Fall of 2020 about hacks, rug pulls, and other issues that plagued the DeFi ecosystem.
However, in many cases, these issues were brought on…
(Note: This chapter focuses on the Optimus protocl. Most of the content is derived from the Optimus project description. While this chapter works to educate readers on the basics of Optimus, there are some more advanced features that users may benefit from as well. If interested, I encourage you to read the project description in it’s entirety. In addition, it’s possible the parameters laid out in that document may change as the project evolves.)
Before we dive in, you may be wondering what exactly “yield” means. You’ve probably seen it in reference to “yield farming” or used in other manners.
If you’re reading this, it’s likely you’ve used a cryptocurrency exchange such as Binance or Coinbase before.
Those two and others like them are centralized exchanges. You sign up for an account with them and can connect your bank account. You deposit an asset (either crypto or fiat) into the exchange, place an order on an orderbook to buy an asset, and then can withdraw the asset you just bought.
Of course, throughout this process, you’ve sent the exchange some cryptocurrency, meaning they are the ones who are holding it. That means it can either be hacked and your asset…
ICON contributor and analyst, ready to hyperconnect the world. Twitter: @iconographerICX