Antlia

There has been lots of buzz around the word "Liquidity Pools" in the DeFi environment as they drive trading and incentivize users. But what exactly are Liquidity Pools? Liquidity pools lock tokens inside a smart contract , a concept first introduced by a project named Bancor. As you can gauge by the name of liquidity pools, they work as market makers in decentralized trading finance. In a centralized setting, the buyer wishes to buy any asset at a lower price and the seller wants to sell it at a higher price. The challenge is to match these orders. Low liquidity will cause lots of order cancellations and customer dissatisfaction. This is where the liquidity pool plays an important role. How does this all play out in decentralized finance? As it is already mentioned that the centralized exchange is at a disadvantage of order cancellations due to the price fluctuations. The order book model relies heavily on individual market makers to create the market for certain assets. The ...

The financial paradigm is shifting at a rapid pace with the launch of the new DeFi tools. The launch of Ethereum 2.0 had been greatly anticipated by the finance experts as it can propel the DeFi market that faced a major dip in the last quarter of 2020. Steven Becker, the president and chief operating officer of Maker Dao stated that it is because of Ethereum 2.0 's capability of improving the major performance metrics such as scalability and throughput without affecting the decentralization that it can be the biggest boon for the DeFi future. Ethereum 2.0 had a network shift with the introduction of Proof-of-Stake consensus engine consequently improving throughput and scalability.  Proof-of-stake based blockchains have been the driving force for the major DeFi use cases. However, there is only yearly 6-15% rewards gain that a user receives for participating in proof-of-stake based systems which do not compare to the financial opportunities that DeFI market holds due to funds’ li...