AAVE

JustStopppingBye

I know…. You said wait for it on EVM chain of choice and I said you don’t need to once AAVE integrates CCIP….

SunliMin

This is part of why this conversation is always so hard to have. "Crypto" is not a asset class, or a type of company. It's simply an immutable ledger with varying degrees of programability. Even if we just focus on ERC20 Ethereum tokens, a subset of crypto, they can be: \* A wrapped asset, like wrapped Bitcoin \* A stablecoin, like DAI \* A governance token, like AAVE \* A deposited/staked investment receipt, like cDAI for "DAI in Compound Finance" \* A untradeable tracking of debt, like AAVE debt tokens \* A utility token, like BAT \* A "Software As A Service" fee token, like LINK \* Untransferable point system, like a videogame and so much more. Not to mention, it can be a combination of the above, i.e. a governance token with utility that can be used as a fee in software as a service products. Before we can establish fundamentals, the first part of the discourse needs to be categorizing it. Otherwise, theres a counter example to every single point, cause there is no enforced consistency between cryptos. So far, we've pretty much just created categories for "Stablecoins" vs "Crypto", and sometimes we throw in "Utility Token" and "Governance Token", but we need to take it further, and talk about the separate use cases as distinct

MinimumFinancial6143

Throughout my years of investing in crypto, narratives such as AI, L2, Oracles, L1, and DeFi have been my long-term holds, from which I have benefited massively. For the coming years, that's not going to change. I have my eyes on PYTH as my new Oracle gem, TRIAS as my new L1, STK for L2, AAVE for DeFi, and the upcoming RIZ token by Rivalz, a project building the foundation for AI 2.0 by creating the first AI Intel, as my promising long-term gems.

CointestMod

#Chainlink Pro-Arguments Below is a Chainlink pro-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

SunliMin

It feels like context is needed here, both in that article, the title and comments. There are not "over 2.4m crypto projects". There are over 2.4m ERC20, ERC721 and ERC1155 contracts deployed. When a new ABC token comes out and someone makes a liquidity pool of it and WETH, that pool that was deployed is a new token being tracked, same with the ABC:WBTC, ABC:DAI, etc, each new pool gives you a token that is effectively your receipt to track how much you own of the backed assets for the withdraw, and that receipt is a contract per pool per defi app. This is also true with any form of staking. Defi apps use other tokens as receipts, but it does not make each of those token its own "project". Theres also the case that not every contract that exists is even built to be used. These numbers include Polygon and other sidechains. As a dev in this space, I have deployed probably... 30 or 40 NFT contracts to that blockchain. These aren't monkey NFTs to be traded, they are underlying infrastructure of our core products. In fact, at my current job, our NFTs are built to fail to transfer if it detects its being transferred by a 3rd party contract, because we explicitly do NOT want it to get picked up by defi apps, because our use case is not the average token use case, and it would go against our goals. All that is to say, this 2.4m number is wrong. If by "projects" they meant "dapp", the number is inflated at least 10:1, but probably closer to 50:1. For example, Uniswap V3 on mainnet Ethereum has 958 markets, so the 3rd version of Uniswap on one network accounts for nearly 1,000 of these "projects". Now imagine this for every version of Uniswap, across every chain, including every fork. Now imagine that same logic, but applied to Compound Finance, AAVE, every single Defi app on every chain and every fork. Easily hundreds of thousands are just from those big defi apps and clones alone.

Downtown_Feedback665

I cashed out many moons on my main account that I had earned here. Brian Armstrong wasn’t really wrong about the premonition, he was wrong about the execution. The implementation was just on Reddit, and it made bots and moon farming the only goal of people posting here. But also, I had both been tipped, and tipped other users in moons on multiple occasions. Outside of crypto, more than 90% of companies fail before they come close to an IPO. Then 90% of those that IPO’d also fail. Power law is everywhere and very real. Also vitalik was made by crypto. He was earning 10btc per article written on btc magazine in the early 2010s. He then went on to employ quite a few people. Same with the Solana folks, AAVE, folks, ATOM folks, DOT folks. There’s jobs that are created with crypto companies, but few are operating under good faith. There’s *maybe* 25 total use cases for blockchain/crypto, with more than 14000+ tokens out there. There are around 40-50 companies actually making a good-faith effort at the real use cases. Everything else is indeed a scam. Keep in mind, this is par for the course in a completely unregulated industry that favors the creators of the token and hurts all the investors. I’ve seen almost nobody go to jail for fraud for blatant rug pulls. Sure they got SBF, Do Kwon got a slap on the wrist, CZ got a slap on the wrist, but they aren’t going after “shitcoin x” run by a dude in his basement, building on Solana and marketing by himself. There is no socializing losses. The current government position on crypto is they want to milk the retail investor of every dollar when they go into crypto so that they never think of doing it again and stick to fiat.

jekpopulous2

Lending markets (like AAVE), exchanges (like UniSwap), derivative markets (like GMX), yield markets (like Pendle), RWAs (like Maker), oracles (like Chainlink), prediction markets (like Azuro), etc… all generate insane amounts of real yield. People are using them because they’re profitable financial products. Those of us who actually understand how DeFi works don’t give a single shit about Youtube influencers, Solana meme coins or ape NFTs. We’re using on-chain financial tooling to generate revenue the same way that we would off-chain.

cryptoAccount0

This. I'll also add AAVE or Compound for a safer means of leveraging

trizest

I have been holding a fairly sizable position using AAVE. It’s like 1.5X leverage for WBTC. The reason I use aave is because of the relatively low cost of around 10% per year. I’ve found a lot of exchanges are above 30%. Which is quite a lot really. As to whether it’s a good idea? Probably not for most people. I do one big trade every few years with lots of thought going into this. Understand fully the risks and would be ok with a full liquidation.

Somebody__Online

Priced into the crypto market at large. Not into the stable coin token price, obviously. I’m not talking about USDT units at centralized exchanges. Yeah those are fucked lol. Im talking about on chain liquidity depth in the defi ecosystem. USDC has passed USDT as the deepest liquidity stable coin on uniswap on ETH main net a while ago. On chain traders are weary of USDT. Even money markets like AAVE and Compound isolate the USDT market. I’m saying that USDT will likely collapse as you suggested but unlike your suggestion, I don’t think it’s gonna shock the crypto world. At least the on chain side of this tech has been expecting and adjusting risk exposure accordingly.

CointestMod

#Chainlink Con-Arguments Below is a Chainlink con-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

noncognitive

Curve ecosystem, CRV, CVX, FXS, PRISMA, FXN First three have been out for a few years now and teams continue to build new products (good products that are recognized by other parts of defi). AAVE recently acknowledged Curve's lending platform as being superior to AAVE's previous models, and is planning to adopt it in their next version. Frax recently launched their L2 chain. Prisma was exploited in March and they are discussing repayment plans preparing for a vote on that. Token price is in the gutter in the meantime. Really, token price of all of these projects is in the gutter right now, except maybe FXN. They might collapse into obscurity, but from watching these projects the past couple of years I think they will continue to surprise people.

MinimalGravitas

What are you referring to? The 5 biggest dApps by TVL on Ethereum are Lido, EigenLayer, AAVE, Maker and Uniswap... none of which have any kind of 'long term forced lock'... https://defillama.com/chain/Ethereum

MinimalGravitas

Celsius wasn't DeFi... **De**centralized **Fi**nance refers to applications that run entirely onchain. This means you can see exactly what is going to happen to your assets by looking at the smart contracts, all of which will be open source. If there are liquidity pools you can check them in a block explorer. You can copy code and try out trades on testnets, fork the code to add improvements, build your own front end to interact with it etc etc. This is how DeFi dApps like Curve, AAVE, Uniswap, Balancer, Alchemix etc etc all work. They are trustless and permissionless. Celsius on the other hand was just a company with effective marketing and a black box that people put money in hoping to be able to take out more in the future. Just like BlockFi, Nexo, Hodlnaut etc.

CointestMod

#Chainlink Con-Arguments Below is a Chainlink con-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

CointestMod

#Chainlink Pro-Arguments Below is a Chainlink pro-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

CointestMod

#Aave Pro-Arguments Below is a Aave pro-argument written by cryotosensei. > 1. AAVE has a novel flash loan concept that allows users to lend and borrow crypto assets from each other without the need for third party intermediaries. These flash loans are hassle free as they do not require users to submit collateral in advance. They also enable users to borrow from reserve liquidity pools and subsequently pay back their loans plus interest within the same transaction. This enables users to perform arbitrage trades. AAVE also offers a world of possibilities; at least 31 cryptocurrencies are available for borrowing and lending. > > 2. Borrowing and lending of cryptocurrencies with AAVE is completely anonymous - a plus point for people who are keen to protect their personal data and privacy. > > 3. The smart contracts on AAVE are open-source and thus, available for scrutiny. This increases AAVE’s accountability to its users. > > 4. AAVE is a Decentralised Autonomous Organisation, which means that the average retail investor is empowered with a voice. Should you own AAVE tokens, you will gain the chance to vote and decide on the outcome of AAVE Improvement Proposals (AIPs). Recently, AAVE token holders voted to close the ETH lending market ahead of the ETH Merge. An approval rate of 78% was achieved, and this proposal was implemented promptly ten hours later. Another example involved users approving a proposal on July 18, 2022; consequently, it all reserves on the AAVE V3 deployment on Harmony were frozen, which was effective in reducing the impact of the hack on users. Having users be directly involved in the decision-making process will appeal to people who wish to exercise more ownership of their assets. > 5. AAVE is also diversifying its services. For instance, it is jumping onto the Web3 bandwagon by launching a new decentralised social media platform called “Lens Platform”. Content creators will have total control over the content they create and how they choose to engage their community. Being allowed to have artistic integrity may help these content creators to flourish their creativity. > 6. AAVE launched its stablecoin $GHO in July 2022, which will be minted by depositors looking to take stablecoin debt. This is expected to increase AAVE’s bottom-line margin and enhance its sustainability. > > References > > https://p2pfinancenews.co.uk/2020/01/22/ethlend-winds-down-loanbook-in-favour-of-aave-flash-loans/ > > https://cryptobriefing.com/aave-makes-web3-social-bet-with-lens-protocol-launch/ > > https://messari.io/report/the-state-of-aave-q2-2022?__s=e9fmqmd8kryv9w3cjehv&utm_source=drip&utm_medium=email&utm_campaign=H-Aave+You+Met+Ted%3F > > https://messari.io/intel/event/c783e20c-b0cd-4ee3-845b-51137a6d729f?utm_source=newsletter_intel&utm_medium=organic_email&utm_campaign=intel_freeze_reserves_harmony ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Aave) to find submissions for other topics.

Downtown_Feedback665

I’d take a gander to say there might be less than 10 actual use cases. BTC is always gunna BTC, but past that there’s: Remittance - eg XLM Supply chain/logistics - eg Hyperledger Fabric Privacy - eg XMR Decentralized compute/Web3/smart contracts - eg ETH Contracts or real estate - eg companies like RealBlocks Decentralized Finance - eg AAVE Government processes - eg Estonia. The country. Decentralized Autonomous Organizations (DAOs) - eg UNI, MakerDAO Honestly I can’t think of any more actual use cases that make sense. People will say gaming, I don’t buy it People will say IoT, I don’t buy it People will say voting, I don’t buy it People will say for the memes, I don’t buy it There might be 50ish crypto companies all legitimately vying for the use cases I mentioned, and in good faith I might add. However, the power law should wipe out most of the competitors within our lifetimes. Which leads to maybe 10-20 real companies and more than 14k failed projects, scams, and Ponzi schemes.

CointestMod

#Chainlink Con-Arguments Below is a Chainlink con-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

FairDragonfly333

Can't sleep because my ETH loan on AAVE. I have alerts set up but I'm still scared.

moonRekt

I’ve made good gains in the past but I’m reaching the point I only want staked Ether, AAVE, BTC and then discount Grayscales in my brokerage/retirement, shitcoin casino wears you down especially when you lose faith it isn’t all ponzi

Ofulinac

I mean I usually leave a part of my holdings across multiple "trusted" platforms like Kraken, Binance, Coinbase and AAVE. Its lending of course though, not staking but kind of the same result.

0x0000001B

CRO, ATOM, SOL, MOBILE, BIFI, CTC, AAVE, OSMOSIS. I can make a full list of RWA and utility tokens in you really want

Yougetwhat

Bitcoin, ETH, AAVE,

Bash_2628

I think the Bitget's Crypto Loan stands out from DeFi lending including AAVE with its fixed interest rates, no requirement for external addresses, simpler borrowing operations, and no gas fees. I feel the opportunity is worth exploring.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by a deleted user. > ####**High Efficiency** > > **Very Fast network** > > The main benefit of using the Polygon PoS network is that it's an Ethereum scaling solution that provides much faster and cheaper transactions. > > * **High Throughput**: Current throughput is 350 TPS for 21k gas transfers and ~150 for ERC-20 tokens. It can go faster as a [7200 TPS test with 122 validators has shown](https://cryptoslate.com/matic-testnet-just-powered-ethereum-eth-to-7200-tps-dapps-next/), but Polygon decided to keep the limit at 30M gas per block to combat spam and storage bloat. > * **Fast Block Times**: It has very-fast [2-second average block times](https://polygonscan.com/chart/blocktime). Though due to its finality being probabilistic and high chance of reorgs, you would want to wait ~32 blocks or 1 minute before assuming finality. > > **Lower Fees than L2** > > * Fees are extremely cheap, so much that [validators have been colluding to set the priority fee at 30 Gwei](https://cryptoslate.com/polygon-matic-to-raise-gas-fee-to-30-gwei-to-prevent-spam-transactions/) to combat spam ever since [Polygon co-founder Sandeep's recommendation for it in Oct 2021](https://forum.polygon.technology/t/recommended-min-gas-price-setting/7604). > * Even with the artificially-inflated fees, Polygon transfer fees still only cost $0.001 while competing L2 rollup transfer fees are usually 10x to 100x more expensive in the [$0.02 to $0.20 range](https://l2fees.info/). > * A lot of games like Decentraland and The Sandbox moved to Polygon because they are able to airdrop NFTs to thousands of players at negligible costs. > > ####**Benefits from a synergistic relationship with Ethereum** > > There is a lot of overlap between the Ethereum and Polygon communities, and they both benefit from it. > > While Polygon is technically a sidechain, it helps offload a lot of traffic off Ethereum L1 and thus helps scale it. Thus, it's filling in the same role as an L2. > > * Polygon copies a lot of Ethereum's code and updates. For example, Polygon's London update for EIP-1559 is copied from Ethereum's London update. > * Nearly any wallet that works for Ethereum also works for Polygon. > * Polygon and Ethereum both use EVM for smart contracts, so it's easy for Ethereum's large number of devs to work on Polygon. Their blockchain explorers are also almost identical, so it's easy to audit transactions between them. > * Polygon's Bor block producer layer runs a version of Geth (the Go implementation of Ethereum), so they share similar consensus clients. > * Polygon generates hundreds of thousands of dollars of transactions fees for Ethereum through [MATIC Token transfers](https://etherscan.io/token/0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0), [PoS Bridge transfers](https://etherscan.io/address/0xa0c68c638235ee32657e8f720a23cec1bfc77c77), and their [Root Chain Proxy](https://etherscan.io/address/0x86e4dc95c7fbdbf52e33d563bbdb00823894c287) checkpoints every 30-45 minutes. > * Ethereum provides security for Polygon PoS through [their checkpoints](https://wiki.polygon.technology/docs/pos/heimdall/checkpoint/), which are necessary as Polygon bridge proofs. MATIC tokens are also [staked on the Ethereum network](https://wiki.polygon.technology/docs/faq/staking-faq/). > > ####**High TVL and app support** > > * **Top 10**: Polygon's TVL has declined greatly in the bear market [to $1.2B](https://defillama.com/chains), but it's still enough to hang onto its Top 10 spot. Its market cap is also still in the [top 10 at $10B](https://www.coingecko.com/en/coins/polygon). > * **Many dApps** like OpenSea, AAVE, Curve, and Uniswap support Polygon. **Reddit's Collectible Avatars** launched on Polygon PoS, which gave it a lot of social media publicity. > * **CEX support**: Most of the largest CEXs like Binance, Coinbase, and Kraken now support the Polygon network for withdrawals. > * **Metaverse**: The 2 largest metaverse games, Decentraland and The Sandbox uses Polygon for their player item NFTs. > > ####**Upcoming Polygon zkEVM** > > The whole Ethereum community is very excited for zkEVMs. > > Polygon was the first to launch a [public zkEVM testnet](https://polygon.technology/blog/polygon-zkevm-public-testnet-the-next-chapter-for-ethereum) in Oct 2022. They already have a [mainnet launch date of March 27, 2023](https://polygon.technology/blog/to-ethereum-with-love-announcing-polygon-zkevm-mainnet-beta-on-march-27th), and everyone is looking forward to it. > > #####**Nakamoto Coefficient is increasing** > > Polygon has a [limit of 100 validators](https://wiki.polygon.technology/docs/maintain/validate/validator-responsibilities/). While this is still quite low, it actually has a bigger Nakamoto Coefficient than both Bitcoin and Ethereum. The more important thing is that it's increasing. Only several months ago, it only took 5 validators to reach 50% stake of the network. Now it has increased to [7 staking validators](https://polygonscan.com/stat/miner?range=14&blocktype=blocks) of MATIC. You can track the identities of the validators, and they all seem to be distinct organizations. > > This is partially thanks to how its [staking website](https://staking.polygon.technology/validators) encourages delegates to stake with smaller validators. Validators with large stakes are hidden on the website while only the smaller ones are shown. There is also a message at the top saying: "To distribute power on the network, please delegate to other top performing validators." > > ####**Great user experience** > > I personally complain a lot about Polygon's centralization and lack of transparency. But I still use Polygon PoS more than any other network. > > Ultimately what matters to me is that it is fast, cheap, has a huge amount of dApps, has good CEX adoption, and has a great blockchain explorer. And those combined lead to a great user experience. > > For new users who don't have MATIC gas tokens, there is a [Polygon Wallet Suite](https://wallet.polygon.technology/polygon/gas-swap) where you can use meta transactions to convert bridged ETH to MATIC without first needing MATIC. > > ####**Long-term Economic Sustainability** > > - The MATIC token is used for staking, and those rewards come from both a token pool and from transaction fee. The [1.2B token pool allocated to Validator Rewards is expected to run out in 2023](https://docs.polygon.technology/docs/maintain/validator/rewards/), after which there will be no more supply inflation. Fifth year validator rewards from the 12% pre-allocated supply will total $150M. After the 5th year, validators are meant to survive on transaction fees alone. > - Currently, [transaction Fees generate $70M annually, with $40M of it burned](https://tokenterminal.com/terminal/projects/polygon). This equates to $300K per validator annually. That's more than enough to run a validator annually. So besides Ethereum, this is one of the few networks with an economically-sustainable security model without inflation. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

Itslittlealexhorn

>shitty centralized L2s that are a nightmare for users to use. ... what? How are Arbitrum or Optimism a "nightmare" to use? You can send funds for a fraction of a cent, you can interact with smart contracts for a few cents, you can bridge fairly cheaply between L2s, send it to a CEX to trade there, you can borrow or lend funds on AAVE for basically no cost... the UX is awesome. The security is not as bulletproof as ETH L1, but it doesn't need to be. "Shitty centralized" really just means you picked up some buzz words and have no idea what you're talking about. Yes many L2s are centralized to an extent, but that's only relevant for liveness of the L2 chain, meaning the worst that could happen would be the chain shutting down and having to recover your assets through L1 transactions. The security of your funds doesn't depend on some trusted authority. The ETH L2 paradigm is as close to a solution to the trilemma as currently exists. I'm not an ETH maxi, I own BTC, SOL and everything else. I'm just seeing that currently ETH is working really well.

DoctorofBeefPhB

Dumping Link and AAVE for Fetch/ocean/AIOZ back in January is maybe the best financial decision I will ever make in my lifetime

biba8163

Alts have all this technology, utility and fundamentals that should drive token demand but **the only hope of price appreciation for shitcoins is that BTC lifts the entire market with a post halvning bull run.** Sure sign that you have been scammed with bullshit narratives, meme tech, fictional utility and scammers who used their reputation for easy money grab through crypto - banks will use our token and buy your bags, load up while it is still cheap, it's going to be The Standard, no point in a stablecoin - peer-reviewed, scientific principles from associate degree holder form Front Range Community College who has never worked a day in his life but learned lessons creating multiple failed crypto projects - Turing Award winner, not a scammer, dumps tokens on you to buy sponsorship endorsements, only gifted 20% of the supply to himself - 10 Million, 20 Million, 50 Million, 100 Millions users downloaded the browser, demand for the token go through the roof, founder invented Javascript, look at the size of his head, he's genius and not a scammer - para-chains will drive demand for token will go through the roof, no the founder is not a pedo, it was just fiction - subnets coming, Snowball protocol, a Cornell professor but poses under subway signs saying "We're all going to make it" is not a moneygrab scammer - decentralized oracles. CCIP ultra-security, only thing the protocol does is centralized shitcoin price feeds but you know in the future crypto can't operate without decentralized oracles - fortune favors the brave, so lock up $40K to get one of our VIP credit cards while we rugpull you, no our founder isn't a scammer, he's only bankrupted like a half a dozen companies - trillions of transactions are coming, carbon-banking will be a reality for billions,Jinping and Macron will taste Blockchain-Verified Beef..ok none of this happened but we did pay $100 Million to verify UFC gloves on the blockchain, so it's not a scam gweilo ...paper hands, you're being too bearish, we're going to go up scammers and bagholders will tell you. The reality is 99% of Alts slowly bleed to death over the long run fooling your with their scam pumps giving the desperate dosages of needed hopium. - Only 2 coins from the top 25 from January 2018 are in profit (BTC, ETH) - Only 6 coins out of 1,500+ coins from January 2018 are in profit (BTC, ETH, BNB, DOGE, LINK, AAVE)

JimmyChitwoodMVP

I believe they are locked. You bring up an interesting thought though for how CCIP may integrate into lending platforms like AAVE / Compound / Summer.fi etc

CointestMod

#Chainlink Con-Arguments Below is a Chainlink con-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

CointestMod

#Chainlink Pro-Arguments Below is a Chainlink pro-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

gitk0

Ok here we go.... 1. Your speculating. you can lose all your money. 2. If your not investing with over 10k, STAY OFF ETHEREUM. There are other altcoins that are better. 3. If your looking into altcoins, buy the main memecoin on that altcoin. Why? the meemcoin will pump roughly 2-3x the altcoin. memecoins are like taking leveraged bets. For example, you can toss $100 on avax, or you can buy $30 worth of coq and kimbo. The point of leverage is not to yolo everything on leverage. The point of leverage is to obtain the same exposure to an asset as if you were risking your entire stack, but only risk part of the stack. 4. Learn how leverage engines like AAVE works. AAVE is lending/borrowing of altcoins. It allows you to either leverage up, or to take pure positions. A pure position for example would be to put 10k usd into aave, borrow some eth, then sell that eth for btc. Btw, that is a position that is short eth, long btc, and ONLY takes pair risk, not pair risk vs usd risk at the same time. Much more precise than buying btc, borrowing eth, and buying more btc. If btc were to go down and eth also goes down, you would lose dollars even if eth was going down slightly faster than btc in the second scenario. 5. learn how to use options. There are dex options and cex options. Futures and perpetual swaps are extremely important for your ability to limit risk. You want assymetric risk. That assymetical risk is your hedge if things go south, and they are guaranteed to go south 50% of the time.

DoinIt989

>What is the use case of lending and borrowing in the terms of crypto? You deposit assets and borrow other assets against them. It's basically "leverage" >Why is a cryptocurrency needed for this? Because it's easier to do >What is liquidity providing? Isn’t this the same as lending? No. "Liquidity providing" means you provide a pair of assets and earn yield from people trading the pair. For instance, you might provide an equal amount of "ETH" and "USDC" to an LP, and earn trading fees from people swapping ETH and USDC. There is risk of "Impermanent loss" however, if the value of one asset increases a lot more than the other in the pair. "Liquidity providing" is basically "playing the bank" for traders. "Lending" simply means that you depost an asset to a lending dApp like AAVE and earn some interest on your deposit. Then you can also potentially borrow a certain amount of another asset, paying interest on it with a risk of liquidation if the value of your collateral falls below a certain amount. >Airdrops are just giving crypto out for free right? Yes, but they are set up to reward users for a combination of risking capital and basically "beta testing" various new protocols.

Salvashunned

Got my alts loaded QNT AAVE ALGO ATOM LINK ETH

Yougetwhat

15k BTC 15K ETH 5k SOL 5k LINK 5K AAVE 1k OCEAN 1K THETA 1K ANKR 1K ARWEAVE 0,5K MATIC 0,5K CKB

thebug91

Putting 50$ into something like AAVE is a complete waste of time. I’d rather spend that money on farming airdrops. Than hoping AAVe will 10x’s

biba8163

> Any fool can make an Alt, and any fool will buy it. —Henry David Thoreau - Only 2 coins from the top 25 from January 2018 are in profit (BTC, ETH) - Only 6 coins out of 1,500+ coins from January 2018 are in profit (BTC, ETH, BNB, DOGE, LINK, AAVE) - Now you have 7,500+ coins and people think diversifying your portfolio with Alts that almost always lose money will somehow make them money

Powerplayrush

You can sort of do this with WBTC and AAVE.

jobitobi

You have 2 types of options: centralized and decentralized. Centralized would be almost any bigger exchange (e.g. https://www.binance.com/en/loan) Decentralized mostly work on other chains, like Ethereum (e.g. [https://app.spark.fi/](https://app.spark.fi/) or AAVE or [https://summer.fi/borrow](https://summer.fi/borrow) ). The process is pretty much: 1. Wrap your bitcoin (e.g. WBTC) 2. Use it as collateral for loan 3. Take part of the loan out, meaning you send it to your wallet (leaving enough margin so that in case of fluctuations you don't get liquidated before you pay back) 4. Once done, pay back, close the loan contract and get your WBTC collateral back

flyfree256

Totally. I just trust Compound or AAVE more than Lyra. I never short either way, but that's how I'd do it if I wanted to.

flyfree256

Deposit a stablecoin to Compound or AAVE, borrow the coin you're trying to short, sell that coin for more stablecoin. Pay back the loan when the price has gone down.

Zuzu1214

Also usually there is a drop around the halving. Maybe stake some ETH on AAVE (you will probably make 1.4x on eth alone) and you can take out a smaller loan to invest is smaller caps.

Fair_Raccoon9333

No, I mean, they loaned out valuable assets for valueless assets, raised APR to suck in more loanees for multiple weeks and then claimed their Safety Module doesn't apply despite this being an AAVE protocol failure.

Exotic_Cantaloupe_96

What's everyone's though on AAVE? my average is $80 and it seems to be going steadily up.

Mattie_Kadlec

Yes and no. The premise is the same but Soil acts like a middleman between crypto investors with idle funds and businesses that need loans. This way the yield is much more sustainable since it is backed by a real-world business, while AAVE yield comes from platform usage fees and token emissions.

Important_Addition

I’m trying to understand how Soil (the DeFi platform mentioned in the article) works. Is it a lending platform like AAVE?

virtual_black_whale

The error is not blockchain related but relative to the website. Are you using a VPN ? Might be that the shared IP you're using has been spamming AAVE.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by a deleted user. > ####**High Efficiency** > > **Very Fast network** > > The main benefit of using the Polygon PoS network is that it's an Ethereum scaling solution that provides much faster and cheaper transactions. > > * **High Throughput**: Current throughput is 350 TPS for 21k gas transfers and ~150 for ERC-20 tokens. It can go faster as a [7200 TPS test with 122 validators has shown](https://cryptoslate.com/matic-testnet-just-powered-ethereum-eth-to-7200-tps-dapps-next/), but Polygon decided to keep the limit at 30M gas per block to combat spam and storage bloat. > * **Fast Block Times**: It has very-fast [2-second average block times](https://polygonscan.com/chart/blocktime). Though due to its finality being probabilistic and high chance of reorgs, you would want to wait ~32 blocks or 1 minute before assuming finality. > > **Lower Fees than L2** > > * Fees are extremely cheap, so much that [validators have been colluding to set the priority fee at 30 Gwei](https://cryptoslate.com/polygon-matic-to-raise-gas-fee-to-30-gwei-to-prevent-spam-transactions/) to combat spam ever since [Polygon co-founder Sandeep's recommendation for it in Oct 2021](https://forum.polygon.technology/t/recommended-min-gas-price-setting/7604). > * Even with the artificially-inflated fees, Polygon transfer fees still only cost $0.001 while competing L2 rollup transfer fees are usually 10x to 100x more expensive in the [$0.02 to $0.20 range](https://l2fees.info/). > * A lot of games like Decentraland and The Sandbox moved to Polygon because they are able to airdrop NFTs to thousands of players at negligible costs. > > ####**Benefits from a synergistic relationship with Ethereum** > > There is a lot of overlap between the Ethereum and Polygon communities, and they both benefit from it. > > While Polygon is technically a sidechain, it helps offload a lot of traffic off Ethereum L1 and thus helps scale it. Thus, it's filling in the same role as an L2. > > * Polygon copies a lot of Ethereum's code and updates. For example, Polygon's London update for EIP-1559 is copied from Ethereum's London update. > * Nearly any wallet that works for Ethereum also works for Polygon. > * Polygon and Ethereum both use EVM for smart contracts, so it's easy for Ethereum's large number of devs to work on Polygon. Their blockchain explorers are also almost identical, so it's easy to audit transactions between them. > * Polygon's Bor block producer layer runs a version of Geth (the Go implementation of Ethereum), so they share similar consensus clients. > * Polygon generates hundreds of thousands of dollars of transactions fees for Ethereum through [MATIC Token transfers](https://etherscan.io/token/0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0), [PoS Bridge transfers](https://etherscan.io/address/0xa0c68c638235ee32657e8f720a23cec1bfc77c77), and their [Root Chain Proxy](https://etherscan.io/address/0x86e4dc95c7fbdbf52e33d563bbdb00823894c287) checkpoints every 30-45 minutes. > * Ethereum provides security for Polygon PoS through [their checkpoints](https://wiki.polygon.technology/docs/pos/heimdall/checkpoint/), which are necessary as Polygon bridge proofs. MATIC tokens are also [staked on the Ethereum network](https://wiki.polygon.technology/docs/faq/staking-faq/). > > ####**High TVL and app support** > > * **Top 10**: Polygon's TVL has declined greatly in the bear market [to $1.2B](https://defillama.com/chains), but it's still enough to hang onto its Top 10 spot. Its market cap is also still in the [top 10 at $10B](https://www.coingecko.com/en/coins/polygon). > * **Many dApps** like OpenSea, AAVE, Curve, and Uniswap support Polygon. **Reddit's Collectible Avatars** launched on Polygon PoS, which gave it a lot of social media publicity. > * **CEX support**: Most of the largest CEXs like Binance, Coinbase, and Kraken now support the Polygon network for withdrawals. > * **Metaverse**: The 2 largest metaverse games, Decentraland and The Sandbox uses Polygon for their player item NFTs. > > ####**Upcoming Polygon zkEVM** > > The whole Ethereum community is very excited for zkEVMs. > > Polygon was the first to launch a [public zkEVM testnet](https://polygon.technology/blog/polygon-zkevm-public-testnet-the-next-chapter-for-ethereum) in Oct 2022. They already have a [mainnet launch date of March 27, 2023](https://polygon.technology/blog/to-ethereum-with-love-announcing-polygon-zkevm-mainnet-beta-on-march-27th), and everyone is looking forward to it. > > #####**Nakamoto Coefficient is increasing** > > Polygon has a [limit of 100 validators](https://wiki.polygon.technology/docs/maintain/validate/validator-responsibilities/). While this is still quite low, it actually has a bigger Nakamoto Coefficient than both Bitcoin and Ethereum. The more important thing is that it's increasing. Only several months ago, it only took 5 validators to reach 50% stake of the network. Now it has increased to [7 staking validators](https://polygonscan.com/stat/miner?range=14&blocktype=blocks) of MATIC. You can track the identities of the validators, and they all seem to be distinct organizations. > > This is partially thanks to how its [staking website](https://staking.polygon.technology/validators) encourages delegates to stake with smaller validators. Validators with large stakes are hidden on the website while only the smaller ones are shown. There is also a message at the top saying: "To distribute power on the network, please delegate to other top performing validators." > > ####**Great user experience** > > I personally complain a lot about Polygon's centralization and lack of transparency. But I still use Polygon PoS more than any other network. > > Ultimately what matters to me is that it is fast, cheap, has a huge amount of dApps, has good CEX adoption, and has a great blockchain explorer. And those combined lead to a great user experience. > > For new users who don't have MATIC gas tokens, there is a [Polygon Wallet Suite](https://wallet.polygon.technology/polygon/gas-swap) where you can use meta transactions to convert bridged ETH to MATIC without first needing MATIC. > > ####**Long-term Economic Sustainability** > > - The MATIC token is used for staking, and those rewards come from both a token pool and from transaction fee. The [1.2B token pool allocated to Validator Rewards is expected to run out in 2023](https://docs.polygon.technology/docs/maintain/validator/rewards/), after which there will be no more supply inflation. Fifth year validator rewards from the 12% pre-allocated supply will total $150M. After the 5th year, validators are meant to survive on transaction fees alone. > - Currently, [transaction Fees generate $70M annually, with $40M of it burned](https://tokenterminal.com/terminal/projects/polygon). This equates to $300K per validator annually. That's more than enough to run a validator annually. So besides Ethereum, this is one of the few networks with an economically-sustainable security model without inflation. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

CointestMod

#Chainlink Con-Arguments Below is a Chainlink con-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

CointestMod

#Chainlink Pro-Arguments Below is a Chainlink pro-argument written by etj103007. > **What is Chainlink?** > > *Disclaimer: I have interacted with smart contracts using Chainlink, though I don’t hold any of the token itself.* > > Chainlink is an oracle network, allowing smart contracts to receive (and send) external information. In short, it allows the blockchain to interact with the outside world. > > It is supported on many different blockchains, including the Ethereum Mainnet, its L2s, and sidechains such as Polygon. > > However, the Chainlink network itself is not a blockchain. Instead, it calls itself “blockchain-agnostic” meaning it can theoretically be used on any chain that wants to support it. > > Say you want send 10$ of a coin or token to a certain address every day. Well, if it was a stablecoin, it’d be pretty easy. But maybe it’s Ethereum, or WBTC, or some other token that fluctuates in price. As such, the amount of said token/coin worth 10$ always changes. Using Chainlink, you can avail the price of that token/coin, and be able to calculate the exact amount to send so that it equals 10$. There are many other situations just like this that the Chainlink network is used for. > > The Chainlink token serves a niche; it is used to pay the node operators for the data they deliver. Recently, LINK staking has launched with the advent of Chainlink Staking v0.1. This allows operators and users to stake their LINK to secure the network. > > Chainlink is used as an oracle by various DeFi protocols like AAVE, dYdX, Synthetix, by various NFT projects such as those created by the NBA, even decentralized insurance (Etherisc) and more. ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)) > > # Pros of Chainlink (LINK) > > **1. Chainlink is secure, scalable, and reliable.** > > The nature of being a Chainlink node operator maintains these 3 qualities. Node operators are required to follow a set of guidelines for their nodes to ensure security. For example, nodes have to have backups for the nodes connecting to their data sources, snapshots of the chain for syncing, Ethereum to pay for gas, and more. > > Being decentralized and relying on the blockchain to secure the data feed transactions pretty much guarantees its security as well. > > Node operators also do their best to optimize the performance of their nodes and have also released multiple developments to increase scalability, such as the Off-Chain Reporting upgrade which has reduced operating costs by 90% ([https://blog.chain.link/off-chain-reporting-live-on-mainnet/](https://blog.chain.link/off-chain-reporting-live-on-mainnet/)) > > As said before, Chainlink (being based on smart contracts) can theoretically be used on any blockchain that wishes to adopt it. And with the use cases mentioned above ([https://blog.chain.link/smart-contract-use-cases/](https://blog.chain.link/smart-contract-use-cases/)), the only thing it needs is developers willing to adopt it into their respective blockchains. > > The Chainlink network also prides itself on its reliability. Being serviced by independent and reputable node operators such as Infura, Swisscom (telecom company), Huobi, Binance, and others, it relies on this network of operators to source the data needed onchain. As node operators need to stake their tokens as collateral, it also challenges them to offer good performance. > > For example, Chainlink held an “oracle Olympics” challenging operators to keep their uptime at 100% while undergoing several challenges. While 100% is impossible, the winners guaranteed 99.99%, ensuring that their nodes would be available for that amount of time while still surviving thru challenges. > > **2. Chainlink’s recently launched Chainlink Staking v.0.1 allows users to stake their tokens while securing the networks' nodes.** > > While currently only supporting the ETH/USD data feed on mainnet Ethereum, other data feeds will soon be supported. Meanwhile, Staking 0.2 is planned in 9-12 months and is expected to bring updates and developments to staking, and also allow withdrawals of currently staked LINK. > > Just like traditional staking, this version allows users to secure the network; unlike POS blockchains, Chainlink doesn’t run on a blockchain so stakers secure by raising alerts (if the oracle doesn’t report an update in 3 hours, for example). If the alerts are valid, they can earn LINK, improving the security of the network by penalizing unresponsive nodes. > > Reputation systems for nodes have also been developed, ensuring that nodes maintain their good performance and continue providing correct oracle prices. > > These two systems combined ensure every node performs well and allow users in the ecosystem to earn rewards while securing the network. > > **In conclusion:** > > Chainlink Network and its token will continue its developments in the next years as the demand for oracles increases across the crypto space. Its' progress in its tokenomics with the start of staking while simultaneously ensuring the performance of its nodes will be welcomed by users of the network. And as more and more chains support Chainlink, it won't be long until it'll be found everywhere in DeFi and other sectors. > > TLDR: LINK and its network is used in many sectors of crypto, is secure, scalable, and reliable, while its' tokenomics continue to progress. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Chainlink) to find submissions for other topics.

noncognitive

So, I'm still a bit confused, sorry. Let's use a lending protocol as a different example. You delegate to Vitalik, then you use the ETH as collateral by staking it into some protocol. At what point does the new holder of the ETH (Lido in previous example, AAVE or maybe crvUSD in this example) have the ability to overwrite the delegation? I'm just not sure I'm following how it would work from an architectural point of view.

sevenoutdb

EthLend tokens became AAVE, worked out to something like 40X

Crypto-Diggler

Still to come this week!! $GET Protocol rebranding to $OPN Ticketing Ecosystem, with new clients, new partnerships, new CEX listing(!!) and more important: the launch of DeFi for Event Financing!!! Missed out on AAVE? This is your chance.

Crypto-Diggler

Crypto DeFi for worldwide events industry!!! Yeah, baby, leettttsss go!!! Did you miss out on AAVE? Go get some $GET Protocol or from 28th march $OPN Ticketing Ecosystem after the rebrand!

HardRUser

between getting into it early and farming it for a long time on AAVE, snx

c0mbucha

> but bought about 40 alts varying in marketcap and risk Explain? I bought into about 200 projects since 2017 and I made over $250m in crypto investing in AAVE, Link, Doge, Avax, Polygon, Fantom and many others early making 100x gains on many projects. What are you in right now that will give 100x ?

HSuke

Interest-bearing DeFi (Terra Luna, AAVE, Yearn, Synthetix, Coumpoun, Maker) and CeFi (Celsius, Voyager), and their loaning platforms. Basically CeFi was sending money into DeFi for massive leveraged bets.

ftball21

The 8% interest on *every* asset was a little strange to me. I sent my link from Celsius 😮‍💨 to FTX, earned 0.5 link and got out a few months before it collapsed 😮‍💨 Unfortunately some of my eth and btc never made it out of Celsius 😭 I was relatively a crypto noob but could see the writing on the wall. Even Terra Luna always got a heavy side eye from me… you can tell when yield is not natural. No one calls Uniswap or AAVE or Curve scams because they *provably* do what they say, nothing more. When you have to trust the words of people over trusting numbers, there will always be information asymmetry and risk of fraud. TLDR: don’t trust, verify

Tiny-Dick-Respect

Currently 100% alts. Up avg 28% on portfolio. AXS DOT PERP CRO WRX AAVE AI

CryptographerHot4636

Hmm, what AAVE we got going on today?😁

FordPrefect343

That's extremely unsafe IMO The only way to generate USDT APR is through lending it. The only Safe places to really lend large amounts is something like AAVE. Finance may be lending it out themselves, but after what happened last cycle I would never trust a cex to lend out my coins.

p4ttl1992

>ANKR: $50 LINK: $35 PNG: $35 BAT: $35 BTC: $35 AAVE: $30 LRC: $25 XLM: $25 LTC: $25 I would consolidate all of this into something that's AI related

RandoStonian

Probably depends on what project you're thinking of. Are projects still really coming out that are layer-1 only on Ethereum? Interesting choice, if so. I mostly stick with swapping on Uniswap, or Hop.exchange, or borrowing $10s of thousands on AAVE, which all work great on layer-2s.

Tormian283

use AAVE, put your BTC up as collateral and you can borrow USDC against it, up to 75% of your collateral value. self custody + open source and much more reliable than Nexo

mmarkomarko

AAVE!

Legitimate_Cry_5194

Have a sensible allocation something like 60/30/10 or if you want higher risk 40/30/30 or 30/40/30 BTC/ETH/ALTS. Buy high cap alts, ADA, SOL, AVAX, LINK are good coins. DOGE maybe a little bit, AAVE is a low cap i like. Don't trade at all possibly for the next 1 year regardless ups or downs. Get your profits when things go berserk and prices seem too high. You must have intuition about this, better take your good profits 30%-40% from the top rather being greedy and starting dreaming about Ferrari's and ending up a bag holder that took no profits at all. Take care.

thegodpopper

I own more ETH than SOL but as a retail noob, getting around AAVE and paying hundreds of 💵 in gas isn’t fit for purpose, even bridging to L2 is costly. Play with the likes of Solend and it’s night and day 🤷‍♂️

PowermanFriendship

I like taking this opportunity to roll the dice into somewhat interesting projects. Cashed out the remaining AAVE I had into some Nettensor, and swapped all my FLOKI shitcoin as I assume this will be the last decent pump on that one, and into Bonk shitcoin as it hasn't had too many pumps (even though the market cap is LOLarious, still what the hell, why not). Fun times! I put 1k of real USD into crypto as sort of play money, about 8 years ago, and over the years I just shuffle it all around. At this point I consider it more of a targeted lottery/entertainment budget than anything else. At the most I was up to like 30k, but am now sitting around 10k. I have a regular retirement fund, this is all just thrashing around hoping for a moon shot for me.

Ok-Grapefruit1284

DOT / VET / XLM / Matic / AAVE / CELR

Fair_Raccoon9333

I need AAVE to stop stealing my ONE.

der789

Thoughts on AAVE? Think it may have been scammy at one point. May still be.

BigAd4488

Thanks, I'm still reading around and doing research. But AAVE only loans out stable coins, so you would still need to convert stable coins to FIAT, isn't that still a taxable event?

afkfrom

Staking means "lending your money to someone else, and TRUSTING them not to lose that money". They will do shady things and lose your money. In crypto, you cannot stake BTC, and you cannot stake USDC. You can stake Ethereum, but this requires additional knowledge, having a node (your own server) and it's complicated. It's not worth the risk. DON'T DO IT. It's 2022. You staked your money on FTX, it collapsed, you lost 100%. Celsius also collapsed and lost 100%. Tomorrow, it could be Kraken. Even funnier than that, Kraken's own CEO said "don't leave your tokens on any exchange including my own". Keep your crypto with your cold wallet, don't let anyone touch it. Have a look at DEFI however. AAVE has 7-10% return on USDC and your tokens don't leave your wallet, so that's a good thing. Have a look at Aave and other defi protocols.

LuckyGuy3992

I like [PoolTogether](https://pooltogether.com/) V4. You deposit USDC and then the interest earned on AAVE gets rewarded to winners.

AvengerDr

How would you? Right now. You have to provide collateral. I didn't say you cannot do it, I said that to do it you have to relinquish some control over it, which is against our of the main tenets of this sub. If I wanted a loan backed by crypto, I would need to use something like AAVE. If it is not an asset supported by the protocol, it also means you need to bridge / wrap it adding additional risks. Like for BTC for example.

coinfeeds-bot

tldr; HydraDX, a growing protocol in the Polkadot ecosystem, is evolving with new developments including the launch of a lending and borrowing platform, the introduction of a native decentralized stablecoin named HOLLAR, and a proposed rebrand to Hydration Network. The lending platform is a fork of AAVE v3, aiming for efficient and reliable liquidations. HOLLAR aims to be a future-proof stablecoin with an Adaptive Liquidity framework for peg stability. The rebrand to Hydration Network reflects the protocol's growth and focus on liquidity, accompanied by a visual refresh to align with its new identity. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

coinfeeds-bot

tldr; Aave, a leading DeFi protocol, has faced controversy and advisor departures over its governance and a proposed rewards system. Gauntlet, a risk management service, left due to disagreements with Aave's largest stakeholders. The protocol's governance, led by AAVE token holders, has been criticized for a new incentive system that punishes users of competing platforms, specifically targeting Morpho. This system would dilute rewards for users of 'non-aligned protocols' while boosting rewards for those who migrate assets back to Aave. The move has sparked debate over its impact on innovation and user choice in the DeFi space. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

phallicpunch

Join chains like Optimism’s, Arbitrum’s, Base’s, & Polygon’s discord servers. Also hit up crosschain projects like Curve, Beefy’s, AAVE’s, & Frax’s servers. Once you joined those & after you learn what they’re doing start branching out to chain specific liquidity hubs project servers & learn about them. Then join the servers of the projects that use those hubs & learn about them. Research all the intertwined partnerships & six degrees of separation & next thing you know your flywheelin & LP chain hopping. Warning this can be extremely addictive & you need a game plan to enter & exit. I suggest choosing ETH/USDC as your liquidity vehicle to traverse throughout EVM chains. If you can’t get there easily you can’t leave easily ETHER. Also TVL & transactions/fees are food. Lacking TVL & transactions you’ll starve to dEaTH. Chain has less than $100 milly TVL pass or gamble. Don’t fall in love with a coin, but it’s ok to have a long term relationship with one. Don’t be afraid to pull out ETHER vs being somebody else’s coincuck.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by a deleted user. > ####**High Efficiency** > > **Very Fast network** > > The main benefit of using the Polygon PoS network is that it's an Ethereum scaling solution that provides much faster and cheaper transactions. > > * **High Throughput**: Current throughput is 350 TPS for 21k gas transfers and ~150 for ERC-20 tokens. It can go faster as a [7200 TPS test with 122 validators has shown](https://cryptoslate.com/matic-testnet-just-powered-ethereum-eth-to-7200-tps-dapps-next/), but Polygon decided to keep the limit at 30M gas per block to combat spam and storage bloat. > * **Fast Block Times**: It has very-fast [2-second average block times](https://polygonscan.com/chart/blocktime). Though due to its finality being probabilistic and high chance of reorgs, you would want to wait ~32 blocks or 1 minute before assuming finality. > > **Lower Fees than L2** > > * Fees are extremely cheap, so much that [validators have been colluding to set the priority fee at 30 Gwei](https://cryptoslate.com/polygon-matic-to-raise-gas-fee-to-30-gwei-to-prevent-spam-transactions/) to combat spam ever since [Polygon co-founder Sandeep's recommendation for it in Oct 2021](https://forum.polygon.technology/t/recommended-min-gas-price-setting/7604). > * Even with the artificially-inflated fees, Polygon transfer fees still only cost $0.001 while competing L2 rollup transfer fees are usually 10x to 100x more expensive in the [$0.02 to $0.20 range](https://l2fees.info/). > * A lot of games like Decentraland and The Sandbox moved to Polygon because they are able to airdrop NFTs to thousands of players at negligible costs. > > ####**Benefits from a synergistic relationship with Ethereum** > > There is a lot of overlap between the Ethereum and Polygon communities, and they both benefit from it. > > While Polygon is technically a sidechain, it helps offload a lot of traffic off Ethereum L1 and thus helps scale it. Thus, it's filling in the same role as an L2. > > * Polygon copies a lot of Ethereum's code and updates. For example, Polygon's London update for EIP-1559 is copied from Ethereum's London update. > * Nearly any wallet that works for Ethereum also works for Polygon. > * Polygon and Ethereum both use EVM for smart contracts, so it's easy for Ethereum's large number of devs to work on Polygon. Their blockchain explorers are also almost identical, so it's easy to audit transactions between them. > * Polygon's Bor block producer layer runs a version of Geth (the Go implementation of Ethereum), so they share similar consensus clients. > * Polygon generates hundreds of thousands of dollars of transactions fees for Ethereum through [MATIC Token transfers](https://etherscan.io/token/0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0), [PoS Bridge transfers](https://etherscan.io/address/0xa0c68c638235ee32657e8f720a23cec1bfc77c77), and their [Root Chain Proxy](https://etherscan.io/address/0x86e4dc95c7fbdbf52e33d563bbdb00823894c287) checkpoints every 30-45 minutes. > * Ethereum provides security for Polygon PoS through [their checkpoints](https://wiki.polygon.technology/docs/pos/heimdall/checkpoint/), which are necessary as Polygon bridge proofs. MATIC tokens are also [staked on the Ethereum network](https://wiki.polygon.technology/docs/faq/staking-faq/). > > ####**High TVL and app support** > > * **Top 10**: Polygon's TVL has declined greatly in the bear market [to $1.2B](https://defillama.com/chains), but it's still enough to hang onto its Top 10 spot. Its market cap is also still in the [top 10 at $10B](https://www.coingecko.com/en/coins/polygon). > * **Many dApps** like OpenSea, AAVE, Curve, and Uniswap support Polygon. **Reddit's Collectible Avatars** launched on Polygon PoS, which gave it a lot of social media publicity. > * **CEX support**: Most of the largest CEXs like Binance, Coinbase, and Kraken now support the Polygon network for withdrawals. > * **Metaverse**: The 2 largest metaverse games, Decentraland and The Sandbox uses Polygon for their player item NFTs. > > ####**Upcoming Polygon zkEVM** > > The whole Ethereum community is very excited for zkEVMs. > > Polygon was the first to launch a [public zkEVM testnet](https://polygon.technology/blog/polygon-zkevm-public-testnet-the-next-chapter-for-ethereum) in Oct 2022. They already have a [mainnet launch date of March 27, 2023](https://polygon.technology/blog/to-ethereum-with-love-announcing-polygon-zkevm-mainnet-beta-on-march-27th), and everyone is looking forward to it. > > #####**Nakamoto Coefficient is increasing** > > Polygon has a [limit of 100 validators](https://wiki.polygon.technology/docs/maintain/validate/validator-responsibilities/). While this is still quite low, it actually has a bigger Nakamoto Coefficient than both Bitcoin and Ethereum. The more important thing is that it's increasing. Only several months ago, it only took 5 validators to reach 50% stake of the network. Now it has increased to [7 staking validators](https://polygonscan.com/stat/miner?range=14&blocktype=blocks) of MATIC. You can track the identities of the validators, and they all seem to be distinct organizations. > > This is partially thanks to how its [staking website](https://staking.polygon.technology/validators) encourages delegates to stake with smaller validators. Validators with large stakes are hidden on the website while only the smaller ones are shown. There is also a message at the top saying: "To distribute power on the network, please delegate to other top performing validators." > > ####**Great user experience** > > I personally complain a lot about Polygon's centralization and lack of transparency. But I still use Polygon PoS more than any other network. > > Ultimately what matters to me is that it is fast, cheap, has a huge amount of dApps, has good CEX adoption, and has a great blockchain explorer. And those combined lead to a great user experience. > > For new users who don't have MATIC gas tokens, there is a [Polygon Wallet Suite](https://wallet.polygon.technology/polygon/gas-swap) where you can use meta transactions to convert bridged ETH to MATIC without first needing MATIC. > > ####**Long-term Economic Sustainability** > > - The MATIC token is used for staking, and those rewards come from both a token pool and from transaction fee. The [1.2B token pool allocated to Validator Rewards is expected to run out in 2023](https://docs.polygon.technology/docs/maintain/validator/rewards/), after which there will be no more supply inflation. Fifth year validator rewards from the 12% pre-allocated supply will total $150M. After the 5th year, validators are meant to survive on transaction fees alone. > - Currently, [transaction Fees generate $70M annually, with $40M of it burned](https://tokenterminal.com/terminal/projects/polygon). This equates to $300K per validator annually. That's more than enough to run a validator annually. So besides Ethereum, this is one of the few networks with an economically-sustainable security model without inflation. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

MinimalGravitas

The best place to start if you want to learn about DeFi dApps is https://defillama.com/. There is a ludicrous amount of info on that site if you explore it. It's also probably the safest place to get links from, certainly better than just googling. Here's their page on AAVE: https://defillama.com/protocol/aave

MinimalGravitas

AAVE isn't a centralized exchange, it's a set of permissionless, open source smart contracts. No humans to rug you or go insolvent or whatever, it's one of the OG DeFi platforms alongside Maker, Uniswap etc. Another DeFi option if you don't plan on taking out the ether for a long time is Alchemix, which provides self-repaying loans. You can convert your ether to rETH (RocketPool's staked ether) and then deposit that in Alchemix. You then borrow alETH, swap that back for regular ether and then cash out to buy the car. The loan slowly repays itself using the rewards being earned by the staked rETH. When you come to pay back the loan it will be less than you borrowed. Obviously, don't do anything based on a random commenter's suggestion on Reddit, look into AAVE, Alchemix (also Compound) yourself. I just wanted to point out that there are lots of options in DeFi and so you don't need to rely on centralized exchanges.

TrueDreamchaser

I wouldn’t worry about AAVE and Uniswap. They are self sustaining. In bancor, if lenders needed their money back they would be compensated in Bancor token, which when everyone needed their money bank at once, crashed the token value. In AAVE, if lenders need their money back, the collateral stored by borrowers is what’s used to compensate. This means that for anyone to borrow from AAVE they need to put capital down (usually ETH) just in case things go south. If there is a bank run with every lender pulling out, the collateral is mathematically enough to be exchanged for the token lent and compensate lenders. If the collateral falls below a certain value, the BORROWER is liquidated. In summary, bancor was providing high returns for lenders and non/low collateral loans for borrowers. Collateral is important. Using a vapor ware token that is hyper inflationary cannot replace collateral. On the other hand AAVE has far more realistic returns for lenders as well as the requirement for full collateral. Which may be annoying to the user, but this algorithmically ensures the protocol cannot eat lender money and not compensate them. There are other security risks, don’t get me wrong, but what happened to Bancor literally cannot happen on AAVE.

CointestMod

#Avalanche Pro-Arguments Below is a Avalanche pro-argument written by cryotosensei. > > 1. Avalanche is a good layer-1 blockchain, which will offer an alternative to Ethereum mainnet and layer-2 solutions. Its less-than-2-seconds finality is superior to that of other blockchains. > 2. Avalanche makes possible the interoperability of blockchains as it allows for speedy transfers of Avalanche and Ethereum assets between blockchains. This is because of the availability of the Subnet-Ethereum Virtual Machine that lets developers create their own programmable EVM-compatible blockchain. > 3. Avalanche has a growing DeFi ecosystem. Last year, the Avalanche Foundation rolled out Avalanche Rush, a $180M liquidity mining incentive program and successfully wooed AAVE and Curve - two significant protocols - to launch on it. > 4. As such, Avalanche has attracted keen interest from both traditional institutional giants and crypto firms. Grayscale is considering it; Celsius allows investors to earn interest on it. FTX now accepts USDC in AVAX. Even 1inch network has expanded its limit order protocols to AVAX. > 5. Avalanche has goals that it is working steadily towards, which could inspire investor confidence. To solidify its niche in subnets, it has rolled out a dedicated Avalanche Multiverse program. DeFi Kingdoms is the first subnet to receive financial support through this program. Aside from subnets, it is funding creative projects through its Culture Catalyst Fund. A joint partnership with Web3 social media platform Op3n, this fund has decided on its first recipient, Grimes, who intend to launch an intergalactic children’s metaverse book on both platforms. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Avalanche) to find submissions for other topics.

blahhblah11

Yeah, I think so as well. But I found on Google that AAVE has ongoing airdrop which started today, so this could be legit. I don't remeber what wallet I was using for it so idk lol

blahhblah11

Just got an email with AAVE airdrop, how can I check if it's scam or not?

SheikhShake

AAVE. Rate could be lower than others, but it is the most reliable out there.

POLISHED_OMEGALUL

Which market should I use on AAVE for USDC? Is Polygon good or should I use another one?

POLISHED_OMEGALUL

Thanks, AAVE sounds good I think. Are you using the Polygon market on AAVE or something else?

DigitalDude_42

Does [AAVE](https://app.aave.com/?marketName=proto_optimism_v3) block you? I'm getting 8.42% on my USDT and 25.76% on my sUSD right now. 11.96% for USDC. Maybe [Sonne](https://sonne.finance/portfolio/)? They're giving 11.63% on USDT now. 13.18% USDC. Depending on which [Extra](https://app.extrafi.io/lend) pool you deposit into the USDC is earning 7.9% to 18.34%. [Idle](https://app.idle.finance/#/earn/yield-tranches) might block you.

TheWerewolf5

My concern with ONE and FTM specifically is that they have no leg to stand on ever since they had major hacks, and I saw that larger DeFi projects like AAVE no longer support them, which will likely restrict adoption. And does LRC have any fundamentals or hype worth paying attention to, now that GameStop is no longer working with them?

DigitalDude_42

I'm trying to convince a bank to give me a loan. I turn into Jean-Ralphio >[I'm FluUuUsh with CryYyYpto](https://www.youtube.com/watch?v=hgl6AoCmVlw) I wish it was as easy as AAVE or curve, they don't even *want* to know who I am.

TrueDreamchaser

DOT, AVAX, ATOM for large cap alts, AAVE, CFG STORJ, for medium cap, LIT, NCT are some of the small caps I’ve been eyeing. Not FA advice, just some projects I see being actively used and support personally.

Fair_Raccoon9333

Their protocol suffered a catastrophic failure, they didn't use proof of stake, they didn't close lending for weeks, they didn't compensate losses via the much promoted AAVE safety module that was created for this exact circumstance.

Random5483

I bought the top. I bought the bottom. I am significantly up on my investments since November 2021. It helps that I started investing in 2017, so I was up even in the depths of the bear market. But if you only look at the funds I invested since say July of 2021 or November of 2021, I am still up. Why? Dollar cost averaging (DCA). I DCA my purchases and sales. When the market goes up, I DCA sell. When the market goes down, I DCA buy. I try to keep my crypto investments at a set percentage range of my overall investments. I won't get a 100x, as I cash out slowly (e.g. 50% out when I get a 2x). But I also stuff my bags when the market crashes as I keep buying as the market goes down. With that said, some of my alt bags are massively negative. I only DCA for BTC/ETH (these make up 90% of my bag). I am down on ALGO. I am down on MATIC. I am down on ATOM (though massively up if you include air drops and staking rewards). I am down on some other alts I sold since 2021 (e.g. AAVE, TRU, ADA, and more). I was also up on alts last bull run (the biggest being SOL that I started buying at 20 and sold the bulk of my bags over $200). And I missed opportunities too. For example, I bought ETH late as I only started in early 2021 with DCA purchases. Crypto is fine as part of an overall investment strategy. Some go degen with altcoins and microcaps. Some go degen mode with 100% crypto. I keep my crypto investment small (10% of total investments). And I mostly stick to BTC/ETH (90% of crypto investments). This means my degen altcoin purchases for non-ETH altcoins is 1% of my total investments. As a 40 year old, this is the risk tolerance I am comfortable with. For a 20 year old, this may be too conservative.

Fair_Raccoon9333

harmony_one Also, fuck Harmony One and AAVE specifically for stealing my ONE.

RandoStonian

It's not like just *having* a large sum to work with automatically means they'll stop your funds up... but I'd probably work my way up over time, selling increasingly larger amounts over time-- if that's what you're looking to do. Alternatively, you could also consider bridging some BTC to Ethereum, locking it into a smart contract, then borrowing USDC from a lending service like AAVE against the value. Borrowing against the value of crypto is just a loan with collateral, so it's not taxable in most countries.

DigitalDude_42

I just noticed that [AAVE Optimism Tether](https://app.aave.com/reserve-overview/?underlyingAsset=0x94b008aa00579c1307b0ef2c499ad98a8ce58e58&marketName=proto_optimism_v3) is up to 57.82% supplier interest. 96.59% utilization rate. I suppose that means someone withdrew their Tether to use elsewhere. I doubt anyone would intentionally take a loan that high. Until things balance it's nuts.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by a deleted user. > ####**High Efficiency** > > **Very Fast network** > > The main benefit of using the Polygon PoS network is that it's an Ethereum scaling solution that provides much faster and cheaper transactions. > > * **High Throughput**: Current throughput is 350 TPS for 21k gas transfers and ~150 for ERC-20 tokens. It can go faster as a [7200 TPS test with 122 validators has shown](https://cryptoslate.com/matic-testnet-just-powered-ethereum-eth-to-7200-tps-dapps-next/), but Polygon decided to keep the limit at 30M gas per block to combat spam and storage bloat. > * **Fast Block Times**: It has very-fast [2-second average block times](https://polygonscan.com/chart/blocktime). Though due to its finality being probabilistic and high chance of reorgs, you would want to wait ~32 blocks or 1 minute before assuming finality. > > **Lower Fees than L2** > > * Fees are extremely cheap, so much that [validators have been colluding to set the priority fee at 30 Gwei](https://cryptoslate.com/polygon-matic-to-raise-gas-fee-to-30-gwei-to-prevent-spam-transactions/) to combat spam ever since [Polygon co-founder Sandeep's recommendation for it in Oct 2021](https://forum.polygon.technology/t/recommended-min-gas-price-setting/7604). > * Even with the artificially-inflated fees, Polygon transfer fees still only cost $0.001 while competing L2 rollup transfer fees are usually 10x to 100x more expensive in the [$0.02 to $0.20 range](https://l2fees.info/). > * A lot of games like Decentraland and The Sandbox moved to Polygon because they are able to airdrop NFTs to thousands of players at negligible costs. > > ####**Benefits from a synergistic relationship with Ethereum** > > There is a lot of overlap between the Ethereum and Polygon communities, and they both benefit from it. > > While Polygon is technically a sidechain, it helps offload a lot of traffic off Ethereum L1 and thus helps scale it. Thus, it's filling in the same role as an L2. > > * Polygon copies a lot of Ethereum's code and updates. For example, Polygon's London update for EIP-1559 is copied from Ethereum's London update. > * Nearly any wallet that works for Ethereum also works for Polygon. > * Polygon and Ethereum both use EVM for smart contracts, so it's easy for Ethereum's large number of devs to work on Polygon. Their blockchain explorers are also almost identical, so it's easy to audit transactions between them. > * Polygon's Bor block producer layer runs a version of Geth (the Go implementation of Ethereum), so they share similar consensus clients. > * Polygon generates hundreds of thousands of dollars of transactions fees for Ethereum through [MATIC Token transfers](https://etherscan.io/token/0x7d1afa7b718fb893db30a3abc0cfc608aacfebb0), [PoS Bridge transfers](https://etherscan.io/address/0xa0c68c638235ee32657e8f720a23cec1bfc77c77), and their [Root Chain Proxy](https://etherscan.io/address/0x86e4dc95c7fbdbf52e33d563bbdb00823894c287) checkpoints every 30-45 minutes. > * Ethereum provides security for Polygon PoS through [their checkpoints](https://wiki.polygon.technology/docs/pos/heimdall/checkpoint/), which are necessary as Polygon bridge proofs. MATIC tokens are also [staked on the Ethereum network](https://wiki.polygon.technology/docs/faq/staking-faq/). > > ####**High TVL and app support** > > * **Top 10**: Polygon's TVL has declined greatly in the bear market [to $1.2B](https://defillama.com/chains), but it's still enough to hang onto its Top 10 spot. Its market cap is also still in the [top 10 at $10B](https://www.coingecko.com/en/coins/polygon). > * **Many dApps** like OpenSea, AAVE, Curve, and Uniswap support Polygon. **Reddit's Collectible Avatars** launched on Polygon PoS, which gave it a lot of social media publicity. > * **CEX support**: Most of the largest CEXs like Binance, Coinbase, and Kraken now support the Polygon network for withdrawals. > * **Metaverse**: The 2 largest metaverse games, Decentraland and The Sandbox uses Polygon for their player item NFTs. > > ####**Upcoming Polygon zkEVM** > > The whole Ethereum community is very excited for zkEVMs. > > Polygon was the first to launch a [public zkEVM testnet](https://polygon.technology/blog/polygon-zkevm-public-testnet-the-next-chapter-for-ethereum) in Oct 2022. They already have a [mainnet launch date of March 27, 2023](https://polygon.technology/blog/to-ethereum-with-love-announcing-polygon-zkevm-mainnet-beta-on-march-27th), and everyone is looking forward to it. > > #####**Nakamoto Coefficient is increasing** > > Polygon has a [limit of 100 validators](https://wiki.polygon.technology/docs/maintain/validate/validator-responsibilities/). While this is still quite low, it actually has a bigger Nakamoto Coefficient than both Bitcoin and Ethereum. The more important thing is that it's increasing. Only several months ago, it only took 5 validators to reach 50% stake of the network. Now it has increased to [7 staking validators](https://polygonscan.com/stat/miner?range=14&blocktype=blocks) of MATIC. You can track the identities of the validators, and they all seem to be distinct organizations. > > This is partially thanks to how its [staking website](https://staking.polygon.technology/validators) encourages delegates to stake with smaller validators. Validators with large stakes are hidden on the website while only the smaller ones are shown. There is also a message at the top saying: "To distribute power on the network, please delegate to other top performing validators." > > ####**Great user experience** > > I personally complain a lot about Polygon's centralization and lack of transparency. But I still use Polygon PoS more than any other network. > > Ultimately what matters to me is that it is fast, cheap, has a huge amount of dApps, has good CEX adoption, and has a great blockchain explorer. And those combined lead to a great user experience. > > For new users who don't have MATIC gas tokens, there is a [Polygon Wallet Suite](https://wallet.polygon.technology/polygon/gas-swap) where you can use meta transactions to convert bridged ETH to MATIC without first needing MATIC. > > ####**Long-term Economic Sustainability** > > - The MATIC token is used for staking, and those rewards come from both a token pool and from transaction fee. The [1.2B token pool allocated to Validator Rewards is expected to run out in 2023](https://docs.polygon.technology/docs/maintain/validator/rewards/), after which there will be no more supply inflation. Fifth year validator rewards from the 12% pre-allocated supply will total $150M. After the 5th year, validators are meant to survive on transaction fees alone. > - Currently, [transaction Fees generate $70M annually, with $40M of it burned](https://tokenterminal.com/terminal/projects/polygon). This equates to $300K per validator annually. That's more than enough to run a validator annually. So besides Ethereum, this is one of the few networks with an economically-sustainable security model without inflation. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

DiscoverCrypto_org

No liquidity? Excuse me? AAVE markets are rich with liquidity on OP / ARB, and so is Uniswap and almost any major DEX or DEX aggregator. You can do EVERYTHING on L2 that you can do on L1. Lend ETH / Stables / Coins Borrow ETH / Stables / Coins Buy NFTs / Sell NFTs Bridge almost any coin in or out Buy LSTs Do Perps / Leverage / the "GMX" thing you're talking about Provide liquidity (which is what makes L2 very rich in liquidity) Open vaults ETC, do your own research (this goes without saying)