KeyTango - The easiest way to get started with DeFi

Blockchain technology has always opened up new horizons for financial investors, and DeFi also contributes significantly to the Blockchain fever when it is the most searched keyword in the industry in 2019. surely the series of articles on the topic of Defi will not be easy to read, because these are very new knowledge. The author himself also needs to research, learn a lot, and also have new concepts that have not been fully understood. However, it is impossible for us to stop learning because of the new, because the structure of the human brain is to constantly explore, the more new, the more interesting it stimulates the brain. Defi is so “on trend” that even Forbes magazine has an article titled “Why everyone in crypto is talking about Defi”

The most widely used application of blockchain technology is the creation of digital currencies that require a certain level of development of the financial market to support an exchange. However, the current state of the financial markets prevents fair and open access. Furthermore, blockchain-based market-supporting infrastructure is susceptible to counterparty risk, censorship risk, lack of transparency, and manipulation as it is still largely centralized. Existing infrastructure flaws undermine trust and hinder the adoption of new technologies, just as the internet allows for the creation of new information infrastructure, blockchain technology enables the creation of infrastructure. New financial infrastructure and completely new market development. The Defi Movement comes about as an attempt to upgrade the infrastructure that supports new and existing decentralized blockchain-based markets. Also based on the advantages of Defi as well as blockchain technology, a completely new project is launched — KeyTango.

What is Keytango?

keyTango is a Web3 application made for those who are struggling with complex UI/UX that looks straight out of the Bloomberg terminal, which acts as a frictionless gateway to popular DeFi products and services ready to be unraveled within a couple of clicks. Unlike YFI which takes some familiarity with deep DeFi as granted, we offer easy to grasp and navigate UI/UX, that empowers you with tailored content and suggestions based on your level of experience and your blockchain history.

Market Making (MM)

In financial markets, liquidity ratios and depth are very important factors, Market Markers will work on measuring them. MM tracks the asset prices they are creating in real time and captures the opposite of the market trend found in a favorable position. Simply put, when most traders in the market try to sell an asset, the market makers buy it and when most traders in the market try to buy an asset, market makers will sell it. Asset prices also prevent an unpredictable spike in prices due to poor liquidity.

Traditionally, a market maker is a firm or individual who actively quotes two-sided markets in a security, providing bids and offers (known as asks) along with the market size of each. The most common type of market maker is a brokerage house that provides purchase and sale solutions for investors in an effort to keep financial markets liquid. However, DeFi allows any investor to market make using Automated Market Makers.

Automated Market Makers (AMMs)

You can think of an automated market maker as a robot that’s always willing to quote you a price between two assets. Some use a simple formula like Uniswap, although more sophisticated approaches such as the ones handled by Curve, and Balancer among others are gaining popularity in parallel with time..

On AMM-based decentralized exchanges, the traditional order book is replaced by liquidity pools that are pre-funded on-chain for both assets of the trading pair. The liquidity is provided by other users who also earn passive income on their deposit through trading fees based on the percentage contribution of the liquidity pool.

Not only can you trade confidently using an AMM, but you can also become the “house” by providing liquidity to a liquidity pool. This allows essentially anyone to become a market maker on an exchange and earn fees for providing liquidity.

Players in the market

• Uniswap

Uniswap was the first true decentralized AMM to enter the market in November 2019. Uniswap allows for anyone to deploy a liquidity pool on the network, and enables any other trader in the ecosystem to contribute liquidity.

• Balancer

Balancer is considered to be the pioneer of AMMs recently released onto the market. Balancer functions similarly to Uniswap but also offers industry-first, dynamic features that enable the protocol in having a broader arsenal of AMM use-cases.

• Curve

Another yet fresh AMM protocol to enter the DeFi ecosystem in early 2020 was Curve Finance. Curve has admin-only generated liquidity pools where everyone can contribute to these pools, but they have one big distinction; Curve’s liquidity pools only support stablecoins.

Curve’s decision to focus on only stablecoins is a feature and not a limitation. By offering stablecoin only liquidity pools, the exchange is able to complete large trades with low slippage due to its concentration of deposits in its limited amount of pools.

Concludion

I see in addition to the plethora of technologies currently on the market, AMM emerges as a great option as it provides the fundamentals for instant liquidity access to any digital asset. AMM not only created price action in previously less liquid markets, but also created a highly secure, globally accessible and unattended way. While AMMs are not spearheading the fintech ride, the innovations around greater capital efficiency, multi-asset pools, and mitigating impermanent loss provide the necessary infrastructure to attract large-scale traditional liquidity providers that have been looking for a viable angle to tap into DeFi.

Want to learn more about DeFi with keyTango? Sign up for our beta at keytango.io, and stay up-to-date with our latest developments, and get whitelisted for our upcoming token sale. Have friends that don’t like to read? You can find the relevant video explainer at the official keyTango youtube channel.

Author

Username Bitcointalk: LazerPanther

Profile link bitcointalk: https://bitcointalk.org/index.php?action=profile;u=364158

ETH Wallet Address: 0x5b6F37D6C771D1f2b6e852A5CB6cB175fb9F89e6