What is DeFi?
You may have heard the term DeFi a lot in the past few weeks and months. So what does it mean and why should we list them? First of all, DeFi is short for Decentralised Finance. As the name implies, it’s pretty broad but the most important thing you have to know is that most projects in this space try to recreate financial services in a decentralised manner. Think earning interest, getting loans, trading synthetic assets and so on without relying on any third-party or intermediary. Instead, you put your trust in computer code, or more precisely, in smart contracts running on, mostly, the Ethereum blockchain.
What we list and why we list them
We want to give our users access to as many assets as possible, but it’s also very important for us to make sure that those assets are legitimate, trustworthy and - most importantly - still going to be around for the years to come. You can read more about our internal decision-making process in this blog post. Please note that some of the projects are relatively young and while they passed our internal quality checks, you should be aware that they involve more risk than established assets like BTC or ETH. UNI for example is very new and has relatively high volatility. Please be aware of the risk involved.
Here are the six DeFi assets we identified as eligible for listing on Bitpanda:
Uniswap (UNI)
Uniswap was launched in 2018 as an exchange that allows decentralised trading for Ethereum-based ERC20 tokens. It’s an automated market maker protocol (AMM) where users deposit supported digital assets into liquidity pools and then receive a share of the transaction fees as interest. UNI is the governance token of the Uniswap Protocol, which allows users to delegate votes and influence the protocol’s future. You can find more information about the Uniswap Protocol and the UNI token on the official page.
yearn.finance (YFI)
yearn.finance is a range of decentralised finance applications running on the Ethereum blockchain. It consists of four main products: yVaults, Earn, Zap and Cover. yVaults is a community-developed yield farming robot; Earn optimises profits by automatically switching between lending providers; Zap is a way to make swapping various coins more convenient and Cover is a pooled insurance product. YFI is the governance token of the yearn.finance ecosystem, you can find more information about the governance model on their official page.
Synthetix Network Token (SNX)
Synthetix is a derivatives liquidity protocol. Their goal is to act as the backbone for decentralised derivatives trading by allowing users to gain exposure to synthetic assets running on Ethereum. The native asset SNX (Synthetix Network Token) is used to collateralise Synths, which are tokens that provide access to assets such as gold, Bitcoin, US dollars, TESLA and APPL. You can read more about SNX and the Synthetix protocol in the official Litepaper.
Polkadot (DOT)
Polkadot is an open-source protocol that wants to enable cross-blockchain transfers of any type of data or asset. This means that Polkadot gives you the ability to interoperate with a wide variety of blockchains within the Polkadot network. The native token DOT serves three main purposes: Governance, Staking and Bonding. Governance means that DOT holders are the ones who control the protocol; Staking makes the network more secure by rewarding good actors; and lastly, Bonding makes sure that bonding tokens verify that new parachains are useful. You can learn more about DOT on their official website.
Compound (COMP)
Compound is an algorithmic, autonomous interest rate protocol built for developers. The project’s goal is to, as the name suggests, allow users to earn interest on their crypto holdings within the Compound ecosystem. COMP is the native token running on the Ethereum blockchain. Its purpose is to govern the autonomous Compound protocol, which allows anyone to borrow and lend Ethereum-based tokens on a decentralised market. Lenders can earn interest on the cryptocurrency they supply to the protocol and borrowers pay interest to borrow it. You can read more about Compound on their official website.
Maker (MKR)
Maker was among the first decentralised governance protocols. Holders of the MKR token govern the Maker protocol, which are the smart contracts that power the Ethereum-based stablecoin Dai. The goal of Dai is to offer a decentralised currency for anyone to use anywhere. MKR tokens are created or destroyed in response to the price fluctuations of the stablecoin Dai. The goal is to keep the price of Dai hovering at around $1. You can read more about MKR on the official Maker website.
Trade and win part of a massive total amount of €55,000
To celebrate the listing of the six new DeFi assets, we are conducting nothing less than the largest giveaway on Bitpanda yet! Our giveaway starts at 00:00 CEST on the 25th of September, 2020 and ends at 23:59 CEST on the 8th of October, 2020. Ready to win? Here are the prizes.
Prizes for trading any DeFi token
Prize 1: €2,000 worth of BEST
The top five users with the highest total amount purchased of all six DeFi tokens combined (Uniswap, yearn.finance, Synthetix Network Token, Polkadot, Compound & Maker) will each receive €2,000 in BEST!
Prize 2: €1,000 worth of BEST
The users ranked between places 6-10 with the highest total amount purchased of all six DeFi tokens combined (Uniswap, yearn.finance, Synthetix Network Token, Polkadot, Compound & Maker) will each receive €1,000 in BEST!
Prize 3: €100 worth of BEST
Lastly, 100 users who are BEST VIP level 1 and above and who trade any amount of any of the six DeFi tokens (Uniswap, yearn.finance, Synthetix Network Token, Polkadot, Compound & Maker) will be randomly selected to receive €100 in BEST each! Please note that winners of the previous prizes are excluded.
Prizes for trading Uniswap (UNI)
Prize 1: €600 worth of Uniswap
The top five users with the highest total amount purchased of Uniswap will each receive €600 in Uniswap!
Prize 2: €400 worth of Uniswap
The users ranked between places 6-10 with the highest total amount purchased of Uniswap will each receive €400 in Uniswap!
Prizes for trading yearn.finance (YFI)
Prize 1: €600 worth of yearn.finance
The top five users with the highest total amount purchased of all yearn.finance will each receive €600 in YFI!
Prize 2: €400 worth of yearn.finance
The users ranked between places 6-10 with the highest total amount purchased of all yearn.finance will each receive €400 in YFI!
Prizes for trading Synthetix Network Token (SNX)
Prize 1: €600 worth of Synthetix Network Token
The top five users with the highest total amount purchased of Synthetix Network Token will each receive €600 in SNX!
Prize 2: €400 worth of Synthetix Network Token
The users ranked between places 6-10 with the highest total amount purchased of Synthetix Network Token will each receive €400 in SNX!
Prizes for trading Polkadot (DOT)
Prize 1: €600 worth of Polkadot
The top five users with the highest total amount purchased of Polkadot will each receive €600 in DOT!
Prize 2: €400 worth of Polkadot
Users ranked between places 6-10 with the highest total amount purchased of Polkadot will each receive €400 in DOT!
Prizes for trading Compound (COMP)
Prize 1: €600 worth of Compound
The top five users with the highest total amount purchased of Compound will each receive €600 in COMP!
Prize 2: €400 worth of Compound
The users ranked between places 6-10 with the highest total amount purchased of Compound will each receive €400 in COMP!
Prizes for trading Maker (MKR)
Prize 1: €600 worth of Maker
The top five users with the highest total amount purchased of Maker will each receive €600 in MKR!
Prize 2: €400 worth of Maker
The users ranked between places 6-10 with the highest total amount purchased of Maker will each receive €400 in MKR!
Good luck everyone!
You can read the terms and conditions here and we will credit the winners within one week to their Bitpanda wallets.
