Mihail Milanov, Invest Club: From Yield Farming to NFTs: DeFi Applications in Crypto | ETHSofia 2024

[Music] so uh yeah thank you guys again uh I would like to thank V for making all of this happen and you being here today at this great conference I hope uh you definitely learned a lot of new things mostly technical but uh now we're going to keep it simple so for the guys uh who don't have that much knowledge this will be uh very beneficial uh so from uh I'll talk about what's the main developments on defi mainly on ethereum but who am I my name is Mel milanov and I'm the leading crypto expert in invest cop invest C is the largest uh platform for financial Education and Research uh this will be my third cycle so far and I have over eight years of experience already started heavily investing back in 2017 and actually my main holding is uh ethereum so again pleasure speaking to all of you uh but yeah because for the ogs sorry G to keep it simple for the new Commerce but definitely I'm talking about defi what is defi in general it refers to decentralized finance uh a growing ecosystem of uh different applications which is aim which the a main aim here is to replace traditional Financial Services like Banks brokerages Etc uh its main usages is because of its decentralization uh there's no single entity or organization which uh controls the whole process uh which helps uh prevent fraud which it's very evident in the traditional Financial Market as we can remember the 2008 crisis um also helps to prevent the single points of failure as everything is mainly run by smart contracts and code uh it's inherently transparent as you know the blockchain each transaction is publicly uh visible and verifiable uh and it's highly accessible just like crypto all you need to access uh those decentralized application just your phone computer and some internet connection uh why defi well many people around the world don't have actually access to traditional Financial Services uh there's no need for lengthy approval processes verifications all you need is just to uh download the uh Dex wallet and start interacting with them uh and it's way faster and efficient than uh going to a Traditional Bank uh we can see that this year actually we experien a significant growth over 42% which shows that actually people are more and more interacting with defi protocols and applications we grew to 130 billion uh yeah so some of the key protocols actually of course dexes uh decentralized exchanges uh this refers to a way that users can actually swap tokens uh without uh uh actually giving out control over their own assets from wallet to wallet uh it removes the need of centralized exchanges like binance coin coinbase uh and uh on ethereum still uh Unis swap Sushi Swap and curve Finance are the main uh dexes where Unis swap holds the crown spot with a great volume this year over 1.7 uh trillion uh it heavily relies on Smart contracts and an amm model the automated Market maker uh which helps uh connect buyers and sellers with the help of uh liquidity pools and liquidity providers uh basically uh users trade between the liquidity pools and we need liquidity providers to provide uh pairs of digital assets there uh this brings me to yield farming and liquidity mining uh probably some of you have already used this for some passive income or uh to uh gain some more of your favorite crypto uh liquidity mining takes it a step further when uh actually uh Dex gives you initial incentive more of their own traditional tokens uh ethereum is still the crown uh Network when it comes to dexes volume over 88.2 billion till September followed by Solana BNB and the base network but also you can see that there has been a downtrend so the past months due to geopolitical tensions other factors uh outside crypto uh actually the volume has been uh falling but still consistent volume over ethereum uh lending and borrowing this here is the main aim is to replace tradition bands so imagine instead of going to a bank you can go uh interact with one of these protocols and actually borrow some digital assets a holds the crown spot with a significant growth in its tvl over 70% uh reaching 12 billion uh mainly because of their Innovation with flash loans this allows you to borrow without giving any collateral uh we also have compound maker Dow but we can see a decrease in their market share and tvl mainly because there's new uh sectors like liquid staking which you can get more out of uh Pro lending your crypto there or staking it uh so which are the sectors that actually experienced the biggest growth uh this year in defi uh liquid staking Landing uh bridging and dexes where liquid staking has the highest tvl 48 U uh billion but what's interesting we see a different a new sub sector that emerge liquid risk taking for all of you ethereum whales out there this is a great way to get some uh multiple rewards on your already Stak ethereum uh this is made possible because U because of the genius at I igen Lair which actually allows allows us to restake our already Stak ethereum uh and earn multiple rewards by providing security to different product calls uh ethery puffer and Renzo are the uh leading protocols there uh picking at around 15 billion of TVA which shows uh how much people are interacting with u this technology in general uh stable coins everybody here knows about stable coins uh those are uh digital assets which are usually PL ped to a stable asset mainly fiat currency like the US dollar uh also commod different digital assets uh serve as they serve as a medium of exchange help reduce volatility uh also provide liquidity what's interesting to say here is that usdt and USD hold the uh main spot when it comes to dominance together both of them hold 90% of the C market share uh what's important to for you to know uh if you haven't noticed already some of the biggest exchanges like binance combas started delisting usdt uh this is because mainly of the regulations we have here in Europe from mic uh they need to provide proof of funds history which uh they have not done so far and that's why they're starting to being the listed from some of the biggest exchanges and usdc is now our uh legitimate stable coin that will be using here in Europe and it has gained the e-money license so you start seeing us DC way more than usdt being traded and we have a nice increase in the market share 26% reaching 173 uh billion but what's interesting maybe that's new from some of you even The Tech Guys here uh we have the emergence of EAS usde uh a new stable coin player uh which is now now the fifth largest stable coin by market cap uh it's crocketed more than 2,000% uh Main because of their good marketing high yield opportunities at some point the yield you could get by staking the stable coin was more than 100% uh so that was pretty nice hope some of you actually uh earned some meal from there uh they have a synthetic dollar protocol which is uh something pretty interesting it operates using a Delta uh neutral uh strategy which you take a volatile asset for example Bitcoin or ethereum and they hedge themselves by opening two positions long and short by doing so they Remain the stability of the uh oops of the uh stable coin overall pretty interesting especially in a market which is uh dominated by uh usdt and usdc uh nfts uh nonf funable tokens help us proof uh digital ownership of some kind of asset mainly using digital art collectible uh but they have evolved way more than this in defi they're being used now to provide liquidity uh in order for collateral as well but in general this year there has been a downtrend in the buying and selling of nfds uh ethereum was overthrown this uh cycle by Solana it's now the uh blockchain with the most active users when it comes to nfts ethereum is the third spot but actually big Bitcoin was the blockchain with the highest revenue this year because of the hype over with the runes uh maybe some of you actually uh have some runes uh earning approximately 41 million still openc Marketplace that's built on top of ethereum uh is the number one used Marketplace then we have magic Eden uh but here we come to l2s and the uh beneficial Factor they were for the growing adop option of defi as l2s are a technology which helps uh a big problem we have on ethereum you know transaction speed congestion High fees so what does the L2 technology do they move the transactions of the layer one blockchain of ethereum but then settle conest them and then settle the final data on the ethereum blockchain helping with transaction speed costs and still maintaining ethereum security overall optimistic rollups and zero uh K zero knowledge rollups are the most used one and most adopted ones like uh base uh which is blockchain of coinbase optimism arbitrum and polygon and ZK syc are the most popular ones uh as we can see from the graph the number of transactions keeps on growing where the base Network actually holds the number one spot uh arbitr tackle afterwards and on the right uh either it's small but you can see what's the difference for ethereum if you want to swap tokens around $5 when you use l two it's way way cheaper so this actually helps uh New Commerce interact with di because you know everyone here has been hit with the high fees on ethereum uh but overall what's good the tvl on ethereum keeps on growing more and more new Protocols are being adopted and emerge uh still the number one uh blockchain when it comes to uh TV VL uh and overall uh things es especially when we're in a bull market uh keep on growing main drivers liquid staking massive adoption of uh L tools The increased volume we saw inexes but what's important to know except the adoption also its security and decentralization keep on growing more and more ethereum is being staked uh which helps prevent the security uh and uh it's the calization over 100% of growth which is beneficial for all of us here uh some of the main pros and cons in defi uh mainly it's decentralized there's no control over one single entity it's highly accessible and transparent uh and there's a lot of high yield opportunities as we saw from etina stable coin main cons still complex for New Commerce uh smart contract are still vulnerable and uh still there's not like a certain regulatory frame when it comes to uh dii and different applications so that's for me guys hope it was uh beneficial for you hope you learned something new uh here with me and my uh partner buar bki wanted to make something special so for all of you who want you can scan this QR code and uh you can get one of our crypto curses completely for free it covers the fundamentals uh and it will help you uh get a nice start there I will leave it here so for or anyone who wants it just come let's speak interact uh uh it will be a pleasure for me uh and I also wanted to take a a selfie with all of you guys today uh so uh we can all say 8 sopia so it was a pleasure thank you guys so again so 8 sopia nice guys thank you and enjoy the rest 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