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Webinar-Dubai DeFi Series-Webinar 1-The Basics of DeFi

In this episode of the Zeeve Defi Series, Ravi Chamria, the CEO and Co-founder of Zeeve bean by introducing himself and the platform Zeeve which is trusted by thousands of Blockchain startups, Enterprises, and Web3 Developers to deploy, scale, monitor and manage their decentralized applications. The webinar included an introduction to DeFi, an overview of its advantages, and a discussion of the most common DeFi protocols.

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Webinar-Dubai DeFi Series-Webinar 1-The Basics of DeFi

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  1. Decentralized Finance (DeFi) By Ravi Chamria CEO & Co-Founder, Zeeve

  2. Topics we will cover What is Defi - origins of Defi, features of Defi Evolution of Finance CeFi Vs DeFi Core construct of DeFi Ecosystem Uses/Benefits of DeFi Opportunities and Risks of DeFi

  3. What is DeFi? Financial applications based on the blockchain technology. Differs from existing traditional and closed financial markets as it uses smart contracts Allows for seamless, transparent andtrust lesstransactions. No intermediaries like banks or brokerages, who charge fees for providing this service. Inclusive:DeFi is accessible to everyone! Users can maintain complete control over their assets by using DAOs and Governance • • • • • •

  4. The Origin of DeFi : The evolution of financial technology

  5. Features of Defi • Permissionless - Any individual could access DeFi solutions through an internet connection and a crypto wallet, irrespective of the geographical boundaries such as Uniswap or Sushi Swap, where anybody can join Programmability - An opportunity for accessing smart contracts with higher chances of programmability • in DeFi could help in automatic execution Transparency - Every transaction has to be broadcast to other users on the network in the case of the • public Ethereum blockchain. All the users should verify the transaction broadcasted to them Immutability - With the assurance of safe and secure data transmission without any unauthorized • modifications, DeFi could offer the assurance of integrity for all transactions.

  6. Features of Defi Interoperability -With the assurance of safe and secure data transmission without any • unauthorized modifications, DeFi could offer the assurance of integrity for all transactions. For e.g. – Ethereum blockchain , and initiatives such as Polygon, Binance, Solana to allow seamless transfer of assets from one blockchain to another. (Using some Bridges) Non-custodial –You own and control your assets at all point of time. Now swapping platform or • DEX has access to it. The transactions get executed once your sign it using your wallet. . •

  7. Building Blocks of DeFi Infrastructure Blockchain Stable Coins Smart Contracts Cryptocurrency Digital assets whose values are pegged to a fiat currency, Automating transactions, creating ecosystem Framework on which everything is built Token of values, information storage Oracles Data feeds that allow information from sources off the blockchain, such as the current price of a stock or a fiat currency, to be integrated into DeFi services.

  8. DeFi CeFi DeFi vs CeFi - Differences User has full authority over fund’s custody Outside of user’s custody Funds Custody DeFi isn’t accountable for funds Vulnerable in case of security bridges on the exchange Security Trading (Margin, Derivatives), Borrowing, Lending, Payments, Flat- to-Crypto Trading (Margin, Derivatives), Borrowing, Lending, Payments Available Services No need to share unnecessary information. ZKP are coming too. KYC process & unrestricted access to data. Personal Information CEX bear the responsibility for security, plane to hacker attacks Security depends on the technology itself; faulty code can put funds at risk Risk Factor Market Cap $324 billion’’ $16 billion’ Provided by major exchanges NA Customer Services No Yes Atomicity

  9. Key Differentiators DeFi’s advantages over conventional centralised finance include: Decentralized Finance Tradition Finance Transparency: DeFi allows users to look into the specific rules that govern the operation of financial assets and products. Private agreements, back-deals, and centralization are all major barriers to transparency in CeFi, and DeFi seeks to eliminate them. Does not require employees or institutions Dependent on institutions and employees Does not offer any transparency Offer transparency for codes Control: In order to maintain ownership over its users’ assets, DeFi ensures that no one may censor, relocate, or destroy the users’ assets without the users’ permission. Does not offer any globalized application Offers decentralized application for finance Accessibility: While the blockchain and its distributed network of miners effectively administer any DeFi application, anybody with a computer and an internet connection can create and deploy DeFi products. Comes with an access restriction No access restriction Provides open-source algorithms Does not have any open-source programs

  10. Benefits of DeFi Permissionless access User empowerment Can not be tampered • Offers applications that are immutable. • These applications don’t empower organizations. • It’s more geared to users and users have utmost control. • All DeFi technologies have permissionless access. • It can offer rights to anyone around the world. • Once data gets verified and added, no one can alter it. • Offers full customization to smart contracts. • One needs to use crypto wallets and maintain their own account themselves • There are no restrictions based on their location. Interoperable design Fully transparent network • Most DeFi technology uses Ethereum’s standards and protocols • Typically uses public blockchain which is a fully transparent network. • Every user takes part in verification and thus any updates are broadcasted to them • Developers can introduce new features on top of the old DeFi application model which also streamlines interoperability. • Offers full customization to smart contracts. • Due to similar standards, the applications are interoperable.

  11. Core Construct of DeFi Ecosystem

  12. How DeFi Works?

  13. Major use cases of DeFi: Asset management Decentralized Gaming Insurance Data & analytics Margin Trading Staking Tokenization Decentralized P2P Lending and borrowing

  14. DAOs Gaming Asset Management Ethereum based games are becoming popular for the use-cases of DeFi because of their innovative incentive models. For Example, Pool Together is a no-loss DeFi audited game that enables users to purchase lottery tickets by depositing DAI stable coins. The ecosystem introduced DAOs to serve all financial operations such as fundraising, managing assets, implementing governance, etc. Ethereum blockchain Users can be their own custodians of their crypto assets. Crypto wallets such as MetaMask, Gnosis, Argent, etc. can be used to securely interact with Dapps for buying, selling, and transferring cryptos. Insurance Data & Analytics Prediction Markets A slew of new insurance options have emerged to help with liability reduction, DeFi overage reduction, and property preservation. Many DeFi projects (Nexus Mutual, Opyn, and Vouch For me are even offering blockchain for insurance coverage against DeFi or smart contract risks. DeFi projects such as DeFi Pulse or Co DeFi Data brings an impressive amount of value with analytics and risk management tools. Allows users to trade value by forecasting or predicting the outcome of future events. Augur is one of the leaders in the DeFi ecosystem that specialize in the prediction market.

  15. DEX Infrastructure Tooling Tokenization Allow for peer-to-peer financial transfers without the use of a central authority. Assets are not held by the exchange platform, reducing the dangers of manipulation, and theft. Examples of DEXs include Uniswap, PancakeSwap, dYdX, and Kyber. As DeFi projects are integrated through a network infrastructural tools are the notable use cases of DeFi. Tokens are digital assets created, issued, and managed on a blockchain network for secure and instant transfer. It is a cornerstone of DeFi. These tokens are digital alternatives for users to access, trade, and store value across the globe. effect, the hacking, price Margin Trading P2P Lending & Borrowing DeFi allows users to borrow money without having to fill out an application or having a bank account. The borrower does not need to locate a lender in certain DeFi applications; instead, the smart contract functions as a lender, and interest is computed based on supply and demand. With DeFi, traders don’t need to rely on the brokers to borrow. Instead, they could smart contracts to enforce decentralized and lending protocols. DeFi projects, such as Compound and dYdX have already implemented such lending blockchain protocols. non-custodial

  16. Key DeFi Players Uniswap SushiSwap Curve Compound Labs Inc. MakerDAO Aave Balancer USDT USDC DAI

  17. Key DeFi Players Synthetix Curve Finance Bancor Network Badger Network Cover Protocol Chainlink Nexus Mutual

  18. Opportunities in Defi Reduced friction and transaction costs for creation, distribution, trading, and settlement of financial assets. Increased standardization and functional interoperability, allowing reuse and recomposition of financial primitives Increased auditability and transparency of transactions through blockchain-based records. Improved accountability for decisions through software-based governance systems Greater stakeholder control through noncustodial, disintermediated service provision. Improved market access by providing global, 24/7 availability of services and removing barriers such as bank account requirements Faster settlement, reducing counterparty risks and freeing up capital. Greater inclusivity of financial services by making automated tools available to all, with transparent and non-discriminatory execution. Permissionless innovation, allowing the creation of novel products and services. • • • • • • • • •

  19. Challenges of DeFi High User Error Low Performance Scattered Ecosystem Bad User Experience Smart Contracts Bugs Low Scalability Oracle Manipulations Volatile Nature

  20. DeFi Statistics 42.6% 6.77 million $232 billion The growth of the DeFi market is estimated to happen at a CAGR of 42.6% until 2030 DeFi users worldwide in Jan, 2023 as per Dune Analytics Global DeFi Market is expected to surpass $232 billion by2030

  21. Top 10 Countries by DeFi Retail Value received 1. India 2. United States 3. Thailand 4. China 5. Philippines 6. Vietnam 7. Brazil 8. Canada 9. Japan 10. Germany

  22. Things to expect from DeFi in 2023 More Mature Startups: The first DeFi wave was about unlocking an entirely new area of finance. It was about finding an alternative to TradFi solutions. The next DeFi wave will be more about integrating/ bridging with Traditional Financial Solutions. • • Interoperability: Interoperability is also an issue in the current DeFi ecosystem. Several cross-chain solutions that aim to enable interoperability between different blockchain networks are in development. • • Mainstream Adoption: The DeFi ecosystem is still relatively new, and many people still need to learn how it works. However, mainstream adoption is expected to increase in the years to come. Regulatory Clarity in the Industry: More regulatory clarity around DeFi is desired for the long-term growth of the DeFi ecosystem. •

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  24. Address Zeeve DeepTech Pvt Ltd 1283, ATS Greens, Sector-93A Noida, India 201304 Zeeve Technologies Ltd. 2001, Regal Tower, Business Bay, Dubai, UAE Zeeve Inc. 395 Santa Monica Place, Unit 308, Santa Monica, California - 90405 USA Dubai India Contact Europe UK Email : success@zeeve.io / ghan@zeeve.io Reach us through : www.zeeve.io

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