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Counterparty Trilemma for Derivative DEXs

Counterparty Trilemma for Derivative DEXs

This article explains what counterparty means in finance, explores the concept of the counterparty trilemma for derivative DEXs, and examines some examples, such as DeFi Option Vaults (DOVs), Oracle-based Perps, and intent-based Perps, to illustrate how different platforms navigate this complex landscape. What is the Counterparty In finance, a counterparty

What is Ethena and Its USDe

What is Ethena and Its USDe

Recently, a new project called Ethena broke through the noise and attained a high TVL (total value lock, not to be confused with LTV). This post explains what it is, how it works, and where the yield comes from. What is Ethena and It Works Before diving into the Ethena,

What are Gas Fees on Ethereum, and How are They Calculated

What are Gas Fees on Ethereum, and How are They Calculated

If you've ever transacted on Ethereum or its Layer 2 solutions, you've encountered the unavoidable "gas fees." And even on centralized exchanges (CEXs) like Binance, you've likely noticed charges labeled as "network fees." But what exactly are these fees? How

What's Fractionalization in Finance (with Latest Examples!)

What's Fractionalization in Finance (with Latest Examples!)

Fractionalization has become increasingly popular in the investment world, but does it really provide a solution to liquidity for high-value assets? In this piece, we delve into the concept of fractionalization, and its practical applications, and explore whether it truly enhances liquidity or if there are any underlying challenges that

Ethereum's EIP-4844 Upgrade: Bringing Massive Scalability to L2s

Ethereum's EIP-4844 Upgrade: Bringing Massive Scalability to L2s

The Ethereum network has undergone one of its most significant upgrades since The Merge on March 13, 2024. The Dencun upgrade, which combines the Deneb and Cancun upgrades, will implement EIP-4844, also known as proto-danksharding. This upgrade is poised to bring massive scalability improvements and cost reductions to Ethereum'

Bitcoin Spot ETF Approval = Bull Market? Understanding the Actual Impact of Bitcoin ETFs

Bitcoin Spot ETF Approval = Bull Market? Understanding the Actual Impact of Bitcoin ETFs

Introduction In the past month, bitcoin's price has soared by an astonishing 30%. The recent surge in price can largely be attributed to the growing excitement about the potential approval of a bitcoin spot exchange-traded fund (ETF) by authorities in the United States. Indeed, the crypto community is

Recap of the Term Structure’s Testnet Trading Competition

Recap of the Term Structure’s Testnet Trading Competition

The Term Structure Testnet Trading Competition, held from March 4 to March 10, 2024, offered participants a unique opportunity to test their trading skills in a simulated market with dynamic yield curves and interest rates. This article explains the procedures to claim the prizes, highlights critical metrics during the game,

What is the Loan-to-value ratio (LTV)?

What is the Loan-to-value ratio (LTV)?

The loan-to-value (LTV) ratio is a critical metric used in lending to assess risk and determine financing terms. It compares the amount borrowed to the value of the asset or collateral. A lower LTV ratio is favorable as it indicates a larger down payment and lower risk for lenders. Lenders

What is a Primary Market?

What is a Primary Market?

The primary market is a financial environment where new securities, such as stocks and bonds, are initially issued and sold to the public for the first time. Companies, governments, and other organizations use the primary market to raise capital by selling these securities directly to investors, often with the assistance

What are Wrapped Assets, and Why Do They Exist?

What are Wrapped Assets, and Why Do They Exist?

“Ah! Why do I have to use wETH?“ If you’ve used decentralized finance (DeFi) applications before, chances are you’ve been in such a situation. This post will explain what a wrapped asset (like wETH) is, the famous examples in DeFi, and why they exist. What is a Wrapped

What's the RPC, and Why It’s a Must-Know for a Crypto User

What's the RPC, and Why It’s a Must-Know for a Crypto User

Understanding the RPC, or Remote Procedure Call protocol, is crucial for anyone stepping into cryptocurrency. This post explains the what (what’s the RPC), the why (why it’s important), and the how (how to add or customize an RPC link yourself). Again, feel free to skip certain sections if

Difference between USDC.e and USDC on L2s

Difference between USDC.e and USDC on L2s

If you just started using DeFi applications on an L2 recently, you may have wondered why there are USDC.e and USDC. This article explains USDC, its connection with USDC.e, and the current status between these two. Feel free to skip the sections that you already know. What is

Crypto Fixed-Income Token 101: How to Win the Term Structure Testnet Trading Competition

Crypto Fixed-Income Token 101: How to Win the Term Structure Testnet Trading Competition

Term Structure will host a trading competition that is distinct from other trading contests: it involves trading not only the price of crypto tokens but also their interest rates. As many might still be unfamiliar with how to approach interest rate trading, we wrote this article to help everyone establish

Introducing Term Structure’s Trading Competition - Join to Win $10,000 USDC and Get an NFT!

Introducing Term Structure’s Trading Competition - Join to Win $10,000 USDC and Get an NFT!

Are you ready to showcase your trading skills in a simulated market environment? The Term Structure Testnet Trading Competition is a unique opportunity for users to test their strategies and compete for attractive prizes without using real funds. The competition is designed to offer a realistic simulation of a market

Understanding Different Order Types on an Order Book - Basic

Understanding Different Order Types on an Order Book - Basic

Huh? Market order? Limit order? If these terms have you scratching your head, you're in for a treat! Let's unravel the mysteries of these basic order types on an order book, which can be found on a centralized exchange (CEX), while making it as fun as

Unveiling the Next Frontier: Term Structure's 'ZK Roast-up' Event Illuminates Revolutionary ZK-Rollup Innovations

Unveiling the Next Frontier: Term Structure's 'ZK Roast-up' Event Illuminates Revolutionary ZK-Rollup Innovations

Term Structure, a non-custodial fixed-income protocol that facilitates fixed-rate, fixed-term, and peer-to-peer borrowing and lending on Ethereum, recently organized the "ZK Roast-up: Unleash the Power of ZK Rollups" event. This meetup, which drew an audience of over 250, was a collaborative effort with HashKey Capital, BTQ, Zomma Protocol,

Term Structure Successfully Raised Initial Funding of $4.25 Million in a Series Seed Fundraising Round, With Cumberland DRW Taking the Lead in the Investment

Term Structure Successfully Raised Initial Funding of $4.25 Million in a Series Seed Fundraising Round, With Cumberland DRW Taking the Lead in the Investment

Term Structure, a decentralized finance (DeFi) protocol offering non-custodial fixed-income solutions for peer-to-peer and fixed-rate borrowing and lending, has successfully raised initial funding of USD 4.25 Million in a series seed fundraising round. Cumberland DRW took the lead in this funding round, joined by Decima Fund, HashKey Capital, Longling

Maturity Dates in Finance: Bonds, Options, and Beyond

Maturity Dates in Finance: Bonds, Options, and Beyond

Previously, we discussed the bascis of bonds. One of the important characteristics of bonds is maturity date, the date on which a financial instrument, such as a bond or an option, will expire. Understanding the maturity date is crucial for investors because it can help them plan their investment strategies

Building a Robust Bond Ecosystem in Decentralized Finance

Building a Robust Bond Ecosystem in Decentralized Finance

Previously, we explained the term structure of interest rates and its crucial role in laying a critical foundation for pricing derivatives in decentralized finance (DeFi). We also illustrated the role of bond markets in traditional finance (TradFi) in shaping the term structure of interest rates and the importance of establishing

Aave's GHO: A Strategic Move for Growth in DeFi's Stablecoin Market

Aave's GHO: A Strategic Move for Growth in DeFi's Stablecoin Market

Introduction Aave is a prominent decentralized finance (DeFi) lending platform that leverages peer-to-peer (P2P) liquidity pools to establish robust cryptocurrency borrowing and lending markets. Renowned for pioneering the concept of "flash loans," Aave has earned its place as one of the most substantial money markets in the DeFi

Curve Finance's $crvUSD: Unveiling Soft Liquidation for Stable DeFi Growth

Curve Finance's $crvUSD: Unveiling Soft Liquidation for Stable DeFi Growth

Introduction Stablecoins play a vital role in supporting the development of the decentralized finance (DeFi) ecosystem, providing a crucial tool in the money market to guard against the inherent volatility of cryptocurrencies. In early May 2023, Curve Finance introduced $crvUSD, its highly anticipated native stablecoin that distinguishes itself by presenting

How zkTrue-up Guarantees Privacy, Security, and Scalability for the Term Structure Protocol

How zkTrue-up Guarantees Privacy, Security, and Scalability for the Term Structure Protocol

To efficiently manage the order book and auction processes on the Term Structure protocol on Ethereum at a minimal cost, a robust and reliable scaling solution is necessary. zkTrue-up, a tailored ZK-rollup solution, is designed specifically to operate the protocol and enhance user experience. It allows users to place orders

Referral Programs in DeFi: Analyzing Effectiveness and Strategies for Success

Referral Programs in DeFi: Analyzing Effectiveness and Strategies for Success

A referral program is a word-of-mouth marketing strategy that incentivizes customers to refer friends, family members, or connections to use a financial product or service. It is a popular, low-cost marketing strategy used in the financial industry and banks to promote business, raise brand recognition, and build customer loyalty. This

Unleashing the Power of the Term Structure: Transforming DeFi's Pricing, Risk Management, and Investment Strategies

Unleashing the Power of the Term Structure: Transforming DeFi's Pricing, Risk Management, and Investment Strategies

In the previous article, we explored the concept of the term structure of interest rates and its importance in both traditional finance (TradFi) and decentralized finance (DeFi). With that in mind, you may be curious about the importance of establishing an interest rate curve for various cryptocurrencies within DeFi. This

How to Start Your Data Analysis Journey from Scratch

How to Start Your Data Analysis Journey from Scratch

Our intern Bradley Lin wrote this piece in the first person. We hope that whoever wants to start your data analsis journey can learn from his experience. Introduction If you find yourself standing at the threshold of the crypto world, surrounded by terms like DeFi, Web3, and blockchain, do not