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188
defi_and_trading/README.md
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188
defi_and_trading/README.md
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## 🌮 defi and day trading
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<br>
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### tools
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<br>
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* [Dex screener](https://dexscreener.com/)
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* [Etherscan gas tracker](https://etherscan.io/gastracker)
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* [Impermanent Loss simulator for Balancer pools](https://baller.netlify.app/)
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<br>
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---
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### dexes
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<br>
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| Blockchain | DEXs |
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| ----------- | ----------- |
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| Ethereum | Uniswap, 1inch, SushiSwap |
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| BSC | PancakeSwap, BurgerSwap |
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| Solana | Serum |
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| Cardano | Cardax |
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| Polkadot | Polkadex |
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<br>
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----
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### indexes and asset management
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<br>
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* [Bancor](https://app.bancor.network/pools)
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* [dydx](https://trade.dydx.exchange/portfolio/overview)
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* [Kwenta](https://kwenta.io/exchange/sETH-sUSD)
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* [Augur](https://augur.net/)
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* [CREAM](https://app.cream.finance/)
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* [Paraswap](https://www.paraswap.io/)
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* [Synthetix](https://synthetix.io/)
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* [Pool providers](https://vfat.tools/)
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* [Arch finance](https://beta.archfinance.io/)
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* [Tokensets](https://www.tokensets.com/)
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* [Fracium](https://francium.io/)
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* [Babylon](https://www.babylon.finance/)
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* [Indexcoop](https://indexcoop.com/)
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* [Token terminal](https://tokenterminal.com/terminal)
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* [FTX](https://ftx.us/?fromIntl=true)
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* [MarketCipher](https://marketciphertrading.com/)
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* [HotBit](https://www.hotbit.io)
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* [Cointelegraph](https://subscriptions.cointelegraph.com/marketspro-cpc/)
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* [Slingshot](https://app.slingshot.finance/trade/m/MATIC)
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* [GMX](https://gmx.io/trade)
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<br>
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---
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### derivatives
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<br>
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* [TracerDAO](https://github.com/tracer-protocol)
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<br>
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----
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### multi-chain projects
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<br>
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* [Yearn finance](https://yearn.finance/#/portfolio)
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* [Stader Labs](https://staderlabs.com/)
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* [Hop](https://app.hop.exchange/#/send?token=ETH)
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* [Aave](https://app.aave.com/)
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* [Synapse bridge](https://synapseprotocol.com/?inputCurrency=ETH&outputCurrency=ETH&outputChain=10)
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* [Popsicle finance](https://popsicle.finance/)
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* [Matcha](https://matcha.xyz/)
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* [Beefy](https://app.beefy.finance/#/)
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* [Maple](https://www.maple.finance/)
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* [Tokemak](https://www.tokemak.xyz/)
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* [DeFi helper](https://app.defihelper.io/protocols?filter=All)
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<br>
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|
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---
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### l2 projects
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<br>
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* [Curve finance](https://curve.fi/mim/)
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* [Fei proocol](https://fei.money/)
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* [Stakewise](https://app.stakewise.io/)
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* [Lido](https://lido.fi/)
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* [Oasis.app](https://oasis.app/)
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* [Compound](https://app.compound.finance/)
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* [Euler](https://www.euler.finance/)
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* [Elementifi](https://app.element.fi/fixedrates)
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* [Fodl](https://app.fodl.finance/nft)
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* [Zapper](https://zapper.fi/invest)
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<br>
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---
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### avalanche projects
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<br>
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* [TraderJoe](https://traderjoexyz.com/farm#/)
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<br>
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---
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### arbitrum Projects
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<br>
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* [Vesta](https://vestafinance.xyz/)
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<br>
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---
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### terra projects
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<br>
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* [Terra swap](https://app.terraswap.io/#Provide)
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* [Anchor](https://app.anchorprotocol.com/)
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<br>
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---
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### solana projects
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<br>
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* [Step.finance](https://app.step.finance/#/dashboard)
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* [Orca staking](https://www.orca.so/staking)
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* [SolanaBeach](https://solanabeach.io/)
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<br>
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---
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### fantom projects
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<br>
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* [Solidly](https://solidly.exchange/liquidity)
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<br>
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---
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### NEAR projects
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<br>
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* [Rose](https://app.rose.fi/#/)
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---
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### resources
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<br>
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* [Ultimate DeFi & Blockchain Research Base](https://github.com/OffcierCia/ultimate-defi-research-base)
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29
defi_and_trading/bridges/README.md
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defi_and_trading/bridges/README.md
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## Bridges
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<br>
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### Centralized Bridge
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* Centralized bridges are essentially hot wallets straddling the fence between multiple chains.
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* They hold a user’s assets on one chain and issue them a corresponding amount of tokens on another chain.
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* Liquidity on both sides is managed by the centralized entity.
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* Binance is probably the best example of a centralized bridge operator, straddling the fence between Ethereum and Binance Smart Chain.
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* The security risks of a centralized bridge are the same security risks that exist for exchanges and custodians.
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* Their primary responsibility is securing private keys (key management), and as a result centralized bridges have proven to be pretty secure.
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### Proof of Stake Bridge
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* Proof of Stake bridges are like little blockchain networks narrowly focused on facilitating cross-chain activity.
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* Whereas centralized bridges are managed by a single entity, proof of stake bridges are managed by a group.
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* They often involve multisigs or some form of escrow mechanism controlled by a group of signers/validators that watch and vote on the ability to unlock corresponding assets on another chain.
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* Because POS bridges involve both smart contracts and a group of centralized gatekeepers, they inherit all the code risk of Web 3 and the traditional security risks of Web 2 (key management, access controls).
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* POS bridges have the most attack vectors, and have unfortunately been the victims of most of the major exploits.
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### Decentralized Bridge
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* Decentralized bridges take a proof of deposit from one chain and validate it on the other chain (ex: Polygon Plasma Bridge).
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* Decentralized bridges are all code. They don’t rely on centralized signers/validators, so while there’s more code risk, they don’t have to worry about the traditional security risks that POS bridges deal with.
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* Decentralized bridges are newer and facilitating less activity than the other bridge types, but there are no known exploits.
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17
defi_and_trading/day-trading/README.md
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# Day trading
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<br>
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* [Notes on order types](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/orders-types.md)
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* [Notes on trade types](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/trading-types.md)
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* [Notes on techical analysis](https://github.com/bt3gl-labs/Blockchains-AMMs-and-MEV/blob/main/DeFi/day-trading/technical-analysis.md)
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<br>
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---
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## Resources
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### Technical analysis
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* [How To Read Candlesticks Chart](https://www.youtube.com/watch?v=9fqBykOBeCg)
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92
defi_and_trading/day-trading/orders-types.md
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# Order types
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#### tl;dr
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* You can "take " or "make" prices with market and limit orders.
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* The spread prevents us from making free money without risk.
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* Stop order can limit our risk.
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<br>
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### Order book
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* open market for crypto pairs
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* red: sellers; green: buyers
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<br>
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### Spread
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* the difference between the best bid and best offer
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* you want a tight spread
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<br>
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### Market order
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* choose the amount you trade
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* don't choose the price
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* can trade quickly, easy to use
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* can easily pay too much for crypto
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* always on the wrong side of the spread
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* already in a loss
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<br>
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### Limit order
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* choose the amount you trade AND the price
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* get a better deal
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* can't guarantee we trade the whole order
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* must wait for sellers to come
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* maker fees are lower
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* Limit orders ensure a user is getting the price they want when buying or selling an asset, without worrying about slipage.
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* When a limit order is placed, the price at which the order is placed is known as the limit order.
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* The limit price is the worst price the trader is willing to execute the trade at, the order will only be filled at this price or better.
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* Limit orders can serve as an effective method od captureing the volatility of an asset.
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* Orders can be set at prices significantly higher or lower than the current price, while being monitored and adjusted.
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<br>
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### Stop market order
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* choose the amount you trade
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* don't choose the price
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* choose at what price to place your market order
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* some trading strategies will need this order
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* fast trading for buy/sell breakouts
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* "if price gets to X, sell with a market order"
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<br>
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### Stop limit order
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* choose the amount you trade AND the price
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* choose at what price to place your limit order
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* add on to an winning trade or specific price level (TA)
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<br>
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### Stop loss order
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* a version of a stop limit order
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* stops your losses
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* important for day trading, to mitigate trading risks
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* choose the price level with TA
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* must be below the current trading price
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<br>
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### Take profit order
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* a version of a stop limit order
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* trades your position with a profit
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* important for day trading, to automate trading
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* choose the price level with TA
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* must be above the current trading price
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<br>
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257
defi_and_trading/day-trading/technical-analysis.md
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# Technical analysis
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<br>
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## What's technical analysis
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* uses trading data to analyse and predict price patterns
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* gives us data points to compare and contrast
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* uses chart patterns, price data, trading volume and indicators
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* allows us to follow a systematic strategy that can be improved
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* cannot predict the future
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<br>
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|
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---
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## Candlestick charts
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* data rich trading analysis
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* time and price details
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* traders use candlestick chat patterns to antecipate the future
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* show market high and low for a given time period
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* each candle is a period in time
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* tells: open/close (body) high/low (wick) for a period of time
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<br>
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<p align="center">
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<img src="https://user-images.githubusercontent.com/1130416/172071731-4cfd9c34-e7c9-4bff-84b1-ec3144ed7516.png" width="20%" align="center" style="padding:1px;border:1px solid black;" >
|
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<img src="https://user-images.githubusercontent.com/1130416/172071770-3cfa971d-28bd-4532-bd48-324a256091b8.png" width="20%" align="center" style="padding:1px;border:1px solid black;" >
|
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|
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</p>
|
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|
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<br>
|
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|
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### Hammer pattern
|
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|
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* bullish pattern
|
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* sellers drove price lower during the day
|
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* buyers came in and the price finished higher
|
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* will continue tomorrow?
|
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* where are open, close, high, low?
|
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|
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|
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<br>
|
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<p align="center">
|
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<img src="https://user-images.githubusercontent.com/1130416/172071878-e34d61ca-61ba-4ba0-b2b5-7f75cd8efa4a.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
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</p>
|
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|
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|
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<br>
|
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|
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### Shooting star pattern
|
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|
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* bearish pattern
|
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* buyers drove price high
|
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* sellers won and price fell lower
|
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* will this continue tomorrow?
|
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|
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|
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<br>
|
||||
<p align="center">
|
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<img src="https://user-images.githubusercontent.com/1130416/172071957-7c5ff9f4-957a-4cb8-89b1-c091cf4c4cc0.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
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</p>
|
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<br>
|
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|
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### Bullish engulfing pattern
|
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|
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* bullish pattern
|
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* bullish candlestick "engulfed" the bearish candlestick
|
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* represents a strong reversal in the price action
|
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* will continue tomorrow?
|
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|
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<br>
|
||||
<p align="center">
|
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<img src="https://user-images.githubusercontent.com/1130416/172072021-91b32a2a-08e8-4c68-9756-111ae05764b1.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
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</p>
|
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<br>
|
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|
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### Bearish engulfing pattern
|
||||
|
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* bearish pattern
|
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* bearish candlestick engulfed the bullish candlestick
|
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* represents a string reversal in the price action
|
||||
* will continue tomorrow?
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072097-e9058226-65b4-43ff-a017-f2a235691fc6.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
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<br>
|
||||
|
||||
----
|
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|
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## Chart patterns
|
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|
||||
* used in conjuction with candlestick charts
|
||||
* longer-term analysis of market movements
|
||||
* bullish and bearish patterns
|
||||
* used with day trading and swing trading
|
||||
* dont tell about longer term trends
|
||||
|
||||
|
||||
### Double top
|
||||
|
||||
* bearish pattern
|
||||
* buyers tried wtice to push price higher
|
||||
* buyers unable to push price higher
|
||||
* price has no moment at this level
|
||||
* buyers run ot of steam
|
||||
* sellers are in the market
|
||||
|
||||
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072239-54e95e3f-df11-4ec9-92a2-737ec05c1fd9.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
||||
<br>
|
||||
|
||||
### Double bottom
|
||||
|
||||
* bullish pattern
|
||||
* sellers came in twice
|
||||
* price found support of buyers twice
|
||||
* buyers happy to pay up
|
||||
* sellers may run out and buyers need to pay more
|
||||
* buyers are in the market
|
||||
|
||||
|
||||
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072325-c19f5111-abf3-4c38-8e18-9a1e3526ea11.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
||||
<br>
|
||||
|
||||
|
||||
### Asceding triangle
|
||||
|
||||
* charts never trade in a straight line
|
||||
* charts trend
|
||||
* highs and lows are important
|
||||
* consolidation is imporant
|
||||
* higher highs or higher lows is bullish
|
||||
* narrowing of a range can preceed a breakout
|
||||
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072378-59cffb28-7589-44fc-8e54-b040ec239496.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
||||
<br>
|
||||
|
||||
|
||||
---
|
||||
|
||||
|
||||
## Trends
|
||||
|
||||
|
||||
* we can't trade from patterns all the time, they are quite rare
|
||||
* trends patterns will guide us more often
|
||||
* patterns can be housed within trends
|
||||
* if we can find the trend, we can ride the trend for profit
|
||||
|
||||
<br>
|
||||
|
||||
### Asceding wedge - higher lows
|
||||
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072540-324afc3d-0b31-4ffd-ab4f-96a829d244bf.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
||||
<br>
|
||||
|
||||
### Desceding wedge - lower highs
|
||||
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072564-59a193ef-f374-4924-8c0c-ddda21487675.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
||||
<br>
|
||||
|
||||
### Consolidation
|
||||
|
||||
* give us a strong area of trade where traders have been before
|
||||
* area in the chart moving sideways
|
||||
* we can use consolidation as a guide for our entry/exit points
|
||||
* sometimes preceed breakup
|
||||
* where buyers/sellers are at equilibrium and can't last forever
|
||||
* use these levels for our stop loss levels
|
||||
|
||||
<br>
|
||||
<p align="center">
|
||||
<img src="https://user-images.githubusercontent.com/1130416/172072655-e0b13963-4b68-4641-9c6b-888a4fc9a5f1.png" width="40%" align="center" style="padding:1px;border:1px solid black;" >
|
||||
</p>
|
||||
<br>
|
||||
|
||||
### Support and resistance
|
||||
|
||||
* support and resistance are simply significant price levels
|
||||
* resistance can become support if a price breaks through that level in an uptrend
|
||||
* vice versa for a downtrend
|
||||
|
||||
|
||||
### Moving averages
|
||||
|
||||
* SMA: arithmetic mean of prices over a given time period
|
||||
* EMA: weighted and give more importance to recent prices
|
||||
|
||||
### Relative strength index (RSI)
|
||||
|
||||
* plots the relative strength of the price compared to previous prices
|
||||
* momentum indicator
|
||||
* above 70: price is relatively expensive (overbought)
|
||||
* below 30: price is relatively cheap (oversold)
|
||||
* can't predict how the price will change in the future
|
||||
|
||||
### Average true range
|
||||
|
||||
* measure of daily price volatility
|
||||
* tell us the true amount the price could move in a given day
|
||||
* largest probably move for one day based on previous data
|
||||
* can be used to set our stop loss and give the trade some breathing room
|
||||
|
||||
|
||||
----
|
||||
|
||||
|
||||
## How to trade with trends
|
||||
|
||||
1. Identify the market trends
|
||||
2. Ask where are the main areas of trade
|
||||
- where is support and resistance?
|
||||
- any chart pattern?
|
||||
3. Make your entry based on the daily trade action
|
||||
- is the candlestick telling us that the trade will go in the direction of our trade?
|
||||
- is the trade bullish or bearish based of candlestick patterns?
|
||||
|
||||
|
||||
### Trading tools:
|
||||
|
||||
* [Tradingview](https://www.tradingview.com/)
|
||||
* [Tokenmetrics](https://tokenmetrics.com/)
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
67
defi_and_trading/day-trading/trading-types.md
Normal file
67
defi_and_trading/day-trading/trading-types.md
Normal file
|
@ -0,0 +1,67 @@
|
|||
|
||||
# Types of trading
|
||||
|
||||
<br>
|
||||
|
||||
### Swing trading
|
||||
|
||||
* short-medium term trades
|
||||
* open trades for days-weeks
|
||||
* uses both technical and fundamental analysis
|
||||
* capture a % of a price move
|
||||
* requires less time
|
||||
* potential short-term profits
|
||||
* use TA without extensive FR
|
||||
* could miss longer term trends and profits
|
||||
* short-term swings can stop you out of traders
|
||||
|
||||
<br>
|
||||
|
||||
### Breakout trading
|
||||
|
||||
* short term trades
|
||||
* oepn trades for hours-days
|
||||
* mainly use TA
|
||||
* use specific chart setups
|
||||
* capture a breakout in price
|
||||
* require less time
|
||||
* potential short-term profits
|
||||
* requires dicipline
|
||||
* uses day or hours chart
|
||||
* could miss long term terms and profits
|
||||
* short-term swings can stop you out of traders
|
||||
|
||||
<br>
|
||||
|
||||
### Scalping
|
||||
|
||||
* intra-day trades
|
||||
* opem trades for minutes-hours
|
||||
* only TA
|
||||
* uses specific TA strategies
|
||||
* trade off tiny movements
|
||||
* require lots of time
|
||||
* potential short-term profits
|
||||
* extra opportunites on top of long-term trades
|
||||
* 100's trading opportunities
|
||||
* use 5-10 minute charts
|
||||
* requires more funds
|
||||
* difficult to implement
|
||||
* short-term swings can stop you out of trader
|
||||
|
||||
|
||||
<br>
|
||||
|
||||
### Dollar cost averaging
|
||||
|
||||
* long-term strategy
|
||||
* price agnostic
|
||||
* fundamental analysis
|
||||
* investments, not trading
|
||||
* not interested in short term
|
||||
* markets go up over time
|
||||
* no mathematical advantage compared to lump-sum investing
|
||||
* can face significant losses in your losers over time
|
||||
|
||||
|
||||
<br>
|
102
defi_and_trading/defi-glossary.md
Normal file
102
defi_and_trading/defi-glossary.md
Normal file
|
@ -0,0 +1,102 @@
|
|||
## 👩🏻🏫 DeFi glossary and important info
|
||||
|
||||
<br>
|
||||
|
||||
|
||||
|
||||
* Fully diluted valuations (FDV): refer to the total number of tokens ever multiplied by the current price of a single token.
|
||||
|
||||
* Market cap (MC): refers to the number of tokens that are available RIGHT NOW in the market multiplied by the price of a single token.
|
||||
|
||||
* Airdrop: “free money”. When we drop tokens from the air to people who meet certain qualifications. In our case, we want that qualified. Have to register, and prove you’ve used DeFi protocols before. Goal is to build community and loyalty.
|
||||
|
||||
* AML: anti-money laundering. Refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.
|
||||
|
||||
* BSC: Binance smart chain
|
||||
|
||||
* Back-running: happens when a transaction A is broadcasted with a slightly lower gas price than already pending transaction B so that A gets mined right after B in the same block. (e.g. to execute a DyDx liquidation after a price oracle update that triggers a DyDx loan to go under the required collateralization ratio).
|
||||
|
||||
* CA: Contract account, controlled by code and can be activated only by an EOA
|
||||
|
||||
* Cold wallet: A cryptocurrency wallet that cannot be compromised because it is not connected to the Internet. Also called a "hardware wallet" and "offline wallet," the cold wallet stores the user's address and private key and works in conjunction with compatible software in the computer.
|
||||
|
||||
* DEX arbitrage: happens when two DEXe are offering a token at two different prices and one can buy the token on the lower-priced DEX and sell it on the higher-priced DEX.
|
||||
|
||||
* Doxxing: act of publicly revealing previously private personal information
|
||||
|
||||
* EOA: externally owned account. An account which is a combination of public address and private key. You can use these accounts to send and receive Ether to/from another account.
|
||||
|
||||
* ERC20: One of the most significant Ethereum tokens is known as ERC20. ERC20 has emerged as the technical standard; it is used for all smart contracts on the Ethereum blockchain for token implementation and provides a list of rules that all Ethereum-based tokens must follow. ERC20 is similar, in some respects, to bitcoin, Litecoin, and any other cryptocurrency; ERC20 tokens are blockchain-based assets that have value and can be sent and received. The primary difference is that instead of running on their own blockchain, ERC20 tokens are issued on the Ethereum network.
|
||||
|
||||
* EVM: Ethereum Virtual Machine. Computation engine which acts like a decentralized computer that has millions of executable projects. It acts as the virtual machine which is the bedrock of Ethereum's entire operating structure.
|
||||
|
||||
* FATF: Financial Action Task Force
|
||||
|
||||
* Forking: Copying someone else’s open source code base. Common in DeFi, where people copy entire protocols.
|
||||
|
||||
* Flash loans: borrower must pay back the loan before the transaction ends, otherwise the smart contract reverses the transaction – so it’s like the loan never happened in the first place.
|
||||
|
||||
* Front-running: also known as Priority Gas Auctions (PGAs), happens when a miner steals a profitable opportunity (such as arbitrage) for themselves by sending the same transaction with a higher gas price. For example, a transaction A is broadcasted with a higher gas price than an already pending transaction B so that A gets mined before B (e.g., to snatch a Uniswap price arbitrage trade to rebalance a pool).
|
||||
|
||||
* FUD: Fear, uncertainty, doubt.
|
||||
|
||||
* Gas: refers to the computational efforts, fee, or pricing value, required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform.
|
||||
|
||||
* HODL: In early bitcoin forums, someone posted a message that spelled the word “hold” wrong, and readers interpreted it as an acronym “hold on for dear life,” Now, it’s become a meme of sorts, so that when the prices are highly volatile, crypto buyers say ‘HODL!’”
|
||||
|
||||
* KYC: Know your customer
|
||||
|
||||
* Layer-1 vs Layer-2: Layer-1 is the term that’s used to describe the underlying main blockchain architecture. Layer-2, on the other hand, is an overlaying network that lies on top of the underlying blockchain. Consider Bitcoin and Lightning Network. Bitcoin is the layer-1 network, while the lightning network is layer-2.
|
||||
|
||||
* Liquidation: happens when the value of a borrowed asset exceeds the collateral and anyone can liquidate the collateral and collect the liquidation fee for themselves.
|
||||
|
||||
* Long Tail MEV:encompasses all other forms of MEV not described here. Long Tail MEV describes niche, arcane, undiscovered MEV often realized through interacting with lesser known protocols, event based strategies, or unorthodox economic mechanisms.
|
||||
|
||||
* Mainnet: when a blockchain protocol is fully developed and deployed, meaning that cryptocurrency transactions are being broadcasted, verified, and recorded on a distributed ledger technology (blockchain).
|
||||
|
||||
* Mempool: (a contraction of memory and pool) is a cryptocurrency node’s mechanism for storing information on unconfirmed transactions. It acts as a sort of waiting room for transactions that have not yet been included in a block.
|
||||
|
||||
* Merkle tree: a type of binary tree, composed of a set of notes with a large number of leaf nodes at the bottom of the containing the underlying data, a set of intermediate nodes where each node is the hash of its two children, and finally a single root node, also formed from the hash of its two children, representing the top of the tree.
|
||||
|
||||
* Minting: computer process of validating information, creating a new block and recording that information into the blockchain.
|
||||
|
||||
* Multi-sig: Short for multisignature wallet, a type of onchain wallet where multiple signers must sign for a transaction to be executed.
|
||||
|
||||
* NMI: Needs more information.
|
||||
|
||||
* Nonce: an abbreviation for "number only used once," which, in the context of cryptocurrency mining, is a number added to a hashed—or encrypted—block in a blockchain that, when rehashed, meets the difficulty level restrictions. The nonce is the number that blockchain miners are solving for. When the solution is found, the blockchain miners are offered cryptocurrency in exchange.
|
||||
|
||||
* OSINT: Open-source intelligence is a term used to refer to any information which may be freely gathered from public sources; generally it refers to information that can be found on the internet.
|
||||
|
||||
* Pentests: A pentest is short for a penetration test, wherein security experts attempt to break into a protected computer system and disclose results so that they can be mitigated.
|
||||
|
||||
* PoC: Proof of concept (proof of how much funds can be stolen).
|
||||
|
||||
* Sandwich attack: when slippage value is not set, occurs by bumping price of an asset to an unfavorable level, executing the trade, and then returning the asset to the original price.
|
||||
|
||||
* Sats: short for “satoshis,” a term derived from the first name of Satoshi Nakamoto. It refers to the smallest fraction of a bitcoin that can be sent, which is 0.00000001 of a bitcoin.
|
||||
|
||||
* Shitcoin: to talk about projects that are well...shit. Projects that are more interesting in memes and getting people to pump the token so they can sell a ton and "rug" a project. People will say things like "That shitcoin is a pump and dump, Im not falling for that". Some people say shitcoin as well for just really small projects that arent huge. BSC was known for having a large number of these because their fees were so low so many projects could pop up. Some people say memecoins interchangeably.
|
||||
|
||||
* Slippage = delta in pricing between time of order and when order is executed.
|
||||
|
||||
* Stablecoin: digital currency pegged to a 'stable' reserve asset like the USD or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin. Swap pair = “trading pairs” or “cryptocurrency pairs” are assets that can be traded for each other on an exchange.
|
||||
|
||||
* Tabnabbing (a sophisticated phishing attack).
|
||||
|
||||
* Testnet: instance of a blockchain powered by the same or a newer version of the underlying software, to be used for testing and experimentation without risk to real funds or the main chain.
|
||||
|
||||
* TVL: Total value locked. Value of all tokens locked in various DeFi protocols such as lending platforms, DEXes, or derivatives protocols increased from less than $1B in April 2020 to over $32B in Feb 2021.
|
||||
|
||||
* VAR: Value at risk.
|
||||
|
||||
* VASPs: virtual assets and virtual asset service providers.
|
||||
|
||||
* Gwei: a small unit of the Ethereum network's Ether (ETH) cryptocurrency. A gwei or gigawei is defined as 1,000,000,000 wei, the smallest base unit of Ether. Conversely, 1 ETH represents 1 billion gwei! Gwei is a useful denomination to calculate gas fees (paid to miners for transaction processing) in a convenient way.
|
||||
|
||||
* Whales: individuals or institutions who hold large amounts of coins of a certain cryptocurrency; can become powerful enough to manipulate the valuation.
|
||||
|
||||
* Zero-day attack: (also referred to as Day Zero) is an attack that exploits a potentially serious software security weakness that the vendor or developer may be unaware of. The software developer must rush to resolve the weakness as soon as it is discovered in order to limit the threat to software users. The solution is called a software patch.
|
||||
|
||||
|
||||
* Ethereum address of an EOA account: the last 20 bytes (least significant bytes) of the Keccak-256 hash of the public key of the EOA’s key pair.
|
42
defi_and_trading/derivatives/README.md
Normal file
42
defi_and_trading/derivatives/README.md
Normal file
|
@ -0,0 +1,42 @@
|
|||
# Notes on Derivatives
|
||||
|
||||
<br>
|
||||
|
||||
|
||||
## Synthetix
|
||||
|
||||
* [Synthetix](https://synthetix.io/) is one of the Ethereum's ecosystem's leading derivatives projects.
|
||||
* It's a derivative liquidity protocol that powers the creation of "synths" (synthetic assets) that can be traded in a decentralized and permissionless manner.
|
||||
* Synths let traders capitalize on exposure to assets without having to directly own the assets in question.
|
||||
* Some of Synthetix's most popular synths are its forex synths: sUDS and sEUR.
|
||||
* A foundational element of Synthetix is SNX staking, which is used for collateralizing the derivatives protocol and for creating deep liquidity for synths.
|
||||
* SNX stakers earn inflationary SNX rewards and a cut of sUSD fees generated by protocols that work on top of Synthetix.
|
||||
|
||||
<br>
|
||||
|
||||
|
||||
### Kwenta
|
||||
|
||||
* The primary DEX in the Synthetix ecosystem.
|
||||
* Designed to facilitate zero-slippage synth trading.
|
||||
* It does not rely on an orderbook or liquidity pool model, but instead the DEX employs a peer-to-contract system in which synths are traded against a smart contract informed by Chainlink price feeds.
|
||||
|
||||
<br>
|
||||
|
||||
### Lyra
|
||||
|
||||
* Lyra is a decentralized options trading protocol powered by a specialized AMM system.
|
||||
* It uses Synthetix's sUSD stablecoin as its exclusive quote asset, so traders pay for opening long positions or closing short positions with sUSD.
|
||||
* Lyra also uses Synthetix as a one-stop protocol for getting long and short exposure on its markets' base assets (delta hedging).
|
||||
|
||||
<br>
|
||||
|
||||
### Thales
|
||||
|
||||
* Decentralized binary options protocol that a group of Synthetix community members spun in 2020.
|
||||
* If held until expiry, binary options have only two payoff possibilities: a predetermined amount of profit or nothing.
|
||||
* Relies on Synthetix's sUSD stablecoin for minting its binary options tokens and as the platform's unit of account.
|
||||
|
||||
|
||||
|
||||
|
10
defi_and_trading/liquidity/tokemak.md
Normal file
10
defi_and_trading/liquidity/tokemak.md
Normal file
|
@ -0,0 +1,10 @@
|
|||
## Notes on Tokemak
|
||||
|
||||
<br>
|
||||
|
||||
* protocol designed to generate liquidity for DeFi and future tokenized Dapps coming up in the space.
|
||||
* It's a decentralized market making platform that allowe liquidity flows and provides an easy way to liquidity.
|
||||
* It has reactors that host staked assets on each side of the pools.
|
||||
* Participants are broken down into 3 components: LP (providing assets), Liquidity directos (direct assets), and pricers (third party pricers for non-AMM venues).
|
||||
* Tokemak locks up ETH and USDC which are base tokens that any pool could be built on. Users deposit these base assets for APR paid out in TOKE.
|
||||
* TOKE can be thought of as tokenized liquidity.
|
6
defi_and_trading/stablecoins/Curve.md
Normal file
6
defi_and_trading/stablecoins/Curve.md
Normal file
|
@ -0,0 +1,6 @@
|
|||
## Curve
|
||||
|
||||
<br>
|
||||
|
||||
* Curve, whose unique feature is the low slippage in swapping, is a decentralised exchange (DEX) for stablecoins to swap pairs like USDT - UST or USDC - BUSD.
|
||||
* CRV is the native token, whose main utility is governance. People need to lock CRV to get veCRV to vote on decisions. The most important one is voting on allocation of rewards. Monthly CRV unlocks from the release schedule and the trading fees generated on the platform are distributed to each pool's liquidity provider. Additionally, veCRV holders can vote on proposals and pool parameters.
|
24
defi_and_trading/stablecoins/README.md
Normal file
24
defi_and_trading/stablecoins/README.md
Normal file
|
@ -0,0 +1,24 @@
|
|||
## 💰 Stablecoins
|
||||
|
||||
<br>
|
||||
|
||||
### Fiat-collateralized stablecoins
|
||||
|
||||
* Fiat-collateralized stablecoins are stablecoins that are backed by fiat currencies like the US dollar.
|
||||
* Their reserves are held by a central entity. The most popular fiat-backed stablecoins at this time are USDC, USDT, and BUSD.
|
||||
* The main weakness of fiat-collateralized stablecoin is centralization as the collateral of a fiat-collateralized stablecoin is held by one independent party.
|
||||
|
||||
|
||||
### Cryptocurrency-backed stablecoins
|
||||
|
||||
* This motivated the development of more decentralized, cryptocurrency-backed stablecoin.
|
||||
* The main player in this category today is MakerDAO’s Dai stablecoin.
|
||||
* While crypto-backed stablecoins are good for their decentralization, they are capital inefficient. '
|
||||
|
||||
|
||||
### Decentralized (algorithmic) stablecoins
|
||||
|
||||
* The average consumer or institutional investor would rather mint 1:1 through a centralized fiat stablecoin than have to over-collateralize by at least 150% to issue a decentralized stablecoin.
|
||||
* For this reason, developers set out to create non-collateralized (or algorithmic) stablecoins.
|
||||
* These coins maintain their peg without having to directly collateralize the issuance.
|
||||
* The two largest forces in the market in this category are Terra and Fei.
|
20
defi_and_trading/stablecoins/UST.md
Normal file
20
defi_and_trading/stablecoins/UST.md
Normal file
|
@ -0,0 +1,20 @@
|
|||
## LUNA, UST, and The Terra Blockchain
|
||||
|
||||
<br>
|
||||
|
||||
* LUNA is the native utility token of the Terra network. Since Terra is a proof-of-stake (PoS) chain, holders can stake their LUNA in order to help secure the network and earn further LUNA rewards.
|
||||
|
||||
* Terra is both a stablecoin protocol and an L1 blockchain.
|
||||
|
||||
* The network is built on Cosmos SDK using Tendermint Proof-Of-Stake (PoS) as its consensus mechanism, where validators bond (stake) LUNA in order to secure the network.
|
||||
|
||||
* Terra recently became IBC compatible, enabling it to facilitate swaps between all the different blockchains in the Cosmos ecosystem.
|
||||
|
||||
* UST is an algorithmic, dollar-pegged stablecoin. To mint UST, a user must burn a commensurate amount of LUNA (i.e. $1:$1). To redeem LUNA, a user will have to similarly burn an equal of UST. This means that UST is not backed by an external collateral asset, but rather relies on market incentives to maintain stability.
|
||||
|
||||
* Let’s say the price of UST is $1.01, trading above its $1 peg. This means that demand for the stablecoin is exceeding supply, which the protocol calls “expansion.” In this situation, in order to decrease the price of UST, an arbitrageur is incentivized to burn $1 of LUNA in order to mint new UST in order to capture the $0.01 difference between the target peg and the current peg.
|
||||
A similar arbitrage opportunity also exists when UST is trading below its peg, meaning supply for the stablecoin is outweighing demand. If the price of UST was at $0.99, an arbitrageur would be incentivized to burn UST to mint $1 of LUNA, reducing its supply, thereby helping to raise the price of UST back to the $1 peg and pocketing the difference.
|
||||
|
||||
* Another key insight to be gleaned from this mechanism is that it ties the value of LUNA to the demand for UST. All else equal, as demand for UST increases, more LUNA will be burned, which should serve to place upward pressure on the price.
|
||||
|
||||
* One of the most successful ways in which Terra has managed to increase the utility and usage of UST has been Anchor. A money market on Terra and now Avalanche, Anchor allows UST holders to deposit their holdings to earn a fixed yield that currently sits at 19.46% APY. Users can also collateralize the staking derivatives of L1 assets, currently bLUNA, bETH, bATOM, and wasAVAX, to borrow the deposited UST.
|
17
defi_and_trading/staking/Lido.md
Normal file
17
defi_and_trading/staking/Lido.md
Normal file
|
@ -0,0 +1,17 @@
|
|||
## Notes on Lido Finance
|
||||
|
||||
<br>
|
||||
|
||||
* Lido finance is a liquid staking protocol that offers its services to Ethereum, Terra, Solana, Kusama, and Polygon.
|
||||
* It's governed by the Lido DAO through the LDO governance token.
|
||||
* Lido's first product was liquid staking for ETH 2.0 deposits on the beacon chain. It allowed users access to ETH 2.0 staking without the 32 ETH deposit requirement and gave them a composable tokenized representation of their staking deposit, stETH.
|
||||
* Lido uses a single token model, stETH that represents users' staking deposits. stETH is minted at 1:1 ratio of ether deposited into the Lido platform.
|
||||
* Staking rewards accrue to the stETH token through a daily rebasing mechanism.
|
||||
* 10% fee on accrued staking rewards that is evenly split between the Lido DAO and node operators.
|
||||
|
||||
<br>
|
||||
|
||||
<img width="507" alt="Screen Shot 2022-04-20 at 4 18 11 PM" src="https://user-images.githubusercontent.com/1130416/164340131-8415e886-5a7d-4705-ab4d-210677cba6db.png">
|
||||
|
||||
<br>
|
||||
|
14
defi_and_trading/staking/README.md
Normal file
14
defi_and_trading/staking/README.md
Normal file
|
@ -0,0 +1,14 @@
|
|||
## Stacking
|
||||
|
||||
|
||||
<br>
|
||||
|
||||
### ETH
|
||||
|
||||
<br>
|
||||
|
||||
* [Lido](https://github.com/bt3gl-labs/Blockchain-DeFi-and-MEV/blob/main/DeFi/staking/Lido.md)
|
||||
* [Stakewise](https://github.com/bt3gl-labs/Blockchain-DeFi-and-MEV/blob/main/DeFi/staking/Stakewise.md)
|
||||
* [RockePool](https://rocketpool.net/)
|
||||
* [StakeUS](https://staked.us/)
|
||||
* [Bitcoin Suisse](https://www.bitcoinsuisse.com/staking)
|
18
defi_and_trading/staking/Stakewise.md
Normal file
18
defi_and_trading/staking/Stakewise.md
Normal file
|
@ -0,0 +1,18 @@
|
|||
## Stakewise
|
||||
|
||||
<br>
|
||||
|
||||
* Liquid ETH2 platform.
|
||||
* You don't need 32 ETH so anyone can benefit from the beacon chain.
|
||||
* Deposits into the staking pool are tokenised so users can participate in the wider ETH landscape.
|
||||
|
||||
<br>
|
||||
|
||||
### Tokenomics
|
||||
|
||||
<br>
|
||||
|
||||
* Stakewise has a dual token system that pays rewards in separate token, rETH2, mapped to ETH earned in the Beacon chain.
|
||||
* The other token, sETH2. represents the ETH deposit and acts as an interest-bearinng wrapped ETH.
|
||||
* Holders of sETH2 tokens earn daily rETH2 rewards.
|
||||
* Stakewise has a flat fee of 10% on rewards earned by their pools.
|
5
defi_and_trading/whales.md
Normal file
5
defi_and_trading/whales.md
Normal file
|
@ -0,0 +1,5 @@
|
|||
## List of whale wallets
|
||||
|
||||
<br>
|
||||
|
||||
* https://zapper.fi/account/0x6555e1cc97d3cba6eaddebbcd7ca51d75771e0b8
|
Loading…
Add table
Add a link
Reference in a new issue