Season 3

Episode 14

Available Now

Floating into DeFi

Tue Feb 28 2023





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Show Notes

Floating into DeFi

Jason is a computer scientist and musician who bumped into blockchain while searching for an honors project, resonating with Ethereum ethos immediately. As he learned more about protocols, DeFi stood out from him, where after hard lessons he decided to start and co-found an interesting and bold endeavor: a protocol to leverage without liquidations called Float.

0:00 - 7:08: Who’s Jason

7:09 - 14:30: What is Float?

14:30 - 18:19: Smart-Contract Audits

18:20 - 26:54: Impermanent Loss

26:55 - 27:49: Current State

27:50 - 30:14: Floating Pool

30:15 - 34:04: Liquidity Decay

34:05 - 37:49: Oracle

37:50 - 43:16: Foundry

43:17 - 50:24: Flash Loans

50:25 - 55:14: Miners

55:15 - 59:34: NFTs

59:35 - 1:08:29: Charity and Taxes

1:08:30 - 1:12:00: Rounding Off

Episode Important Links


Oracle - In blockchain, oracles are trusted sources that provide off-chain data to smart contracts. They allow decentralized applications to interact with external data in a secure and reliable manner, enabling blockchain to be used for a wider range of use cases beyond just cryptocurrency.

Volatility Decay - Volatility decay refers to the phenomenon where the value of a derivative product (such as options or futures contracts) decreases over time due to the diminishing time left until the expiration date, as well as the decreasing implied volatility of the underlying asset.

Side Chains - Sidechains are EVM blockchains that run in parallel to the Ethereum mainnet. Sidechains are a proven scaling solution that allow dapps to build extensive ecosystems. These chains have their own consensus models.

Layer 2 - Layer 2 solutions help to scale the Ethereum mainnet blockchain. Layer 2s are often servers, or a cluster of servers run by individuals, third parties, businesses or groups of individuals.

Roll Ups - Rollups execute transactions off-chain and then sent to Layer 1 via a validated cryptographic proof. Rollups scale the Ethereum mainnet while leveraging the mainnet’s security. Rollups can be used for any arbitrary contract execution and, therefore, can be used across a wide array of dapps.

Impermanent Loss - Impermanent loss is a risk that liquidity providers in automated market maker (AMM) systems face due to changes in the price ratio of the tokens they provide. If the ratio of tokens changes too much, the liquidity provider may end up with fewer assets than they originally provided, resulting in losses.

Zero-Knowledge Proof - A zero-knowledge proof is a way of proving the validity of a statement without revealing the statement itself.

ERC-20 - The ERC-20 introduces a standard for Fungible Tokens, in other words, they have a property that makes each Token be exactly the same (in type and value) as another Token. For example, an ERC-20 Token acts just like the ETH, meaning that 1 Token is and will always be equal to all the other Tokens.

Arbitrum - Ethereum layer 2.

DeFi - Short for decentralized finance, DeFi is an umbrella term for peer-to-peer financial services on public blockchains, primarily Ethereum.

Longs - In finance, a "long" position refers to the act of buying an asset in the hopes that it will increase in value over time, enabling the investor to sell it at a profit.

Shorts - In finance, shorting refers to borrowing and selling an asset in the hopes of repurchasing it at a lower price to make a profit. It's essentially betting against the asset's price, with the goal of making money if the asset's price falls.

Flash Loans - Flash loans are a type of uncollateralized loan that can be obtained within a single transaction on a decentralized finance (DeFi) platform. These loans allow users to borrow large sums of cryptocurrency instantly without requiring any collateral but must be paid back within the same transaction or they will be canceled.

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