What is Avalanche blockchain? An Introducing Avalanche DeFi

avalanche blockchain

This section describes the avalanche blockchain.

Table of Contents

1. What is an Avalanche Blockchain?

2. Avalanche Consensus (avalanche blockchain)

3. Introducing some projects of Avalanche

 3.1 What is Aave?

 3.2 What is Curve?(CRV)

4. What is an Avalanche Multiverse?

5. Summary

1. What is an Avalanche Blockchain? ( avalanche blockchain )

avalanche blockchain
avalanche blockchain

Avalanche Blockchain is the fastest smart contract platform in the blockchain industry, with very fast time to finality. Avalanche is an open source platform for getting started with decentralized applications and enterprise blockchain in one interoperable and scalable ecosystem.

Avax is the first decentralized smart contract platform built for the scale of global finance, with transaction finals taking place almost instantly. Solidity (a smart contract creation programming language) works so quickly that Ethereum developers can quickly build Avalanche.

The main difference between Avalanche and other distributed networks is the consensus protocol. Over time, there has been a misunderstanding that blockchain is slow and not scalable. The Avalanche protocol takes a new approach to consensus, providing strong security assurance, rapid finality, and high throughput without compromising decentralization.

AVAX is Avalanche’s native token. This is a rare hardcap asset used to pay fees, protect the platform by staking, and provide the basic unit of accounts across multiple subnets created by Avalanche. 0.000000001AVAX is equal to 1nAVAX.

Avalanche Official Site: https://www.avax.network

2. Avalanche Consensus ( avalanche blockchain )

avalanche blockchain
avalanche blockchain

The Avalanche family of protocols works by repeating subsampled votes. When a validator decides whether to accept or reject a transaction, it asks a small random subset of the validator whether to accept or reject the transaction. The queried validator responds that it has determined that the transaction is invalid, has already rejected the transaction, or has prioritized a conflicting transaction and has determined that the transaction should be rejected. Otherwise, it responds that it has determined that it needs to accept the transaction.

The validator prefers to accept a transaction if it thinks that a large enough portion of the sampled response of the validator (alpha α) needs to accept the transaction. That is, when queried for a future transaction, it responds that it thinks it needs to accept the transaction. Similarly, validators prefer to reject a transaction if they respond that a sufficient majority of the validators think they need to reject the transaction.

The validator repeats this sampling process until the queried validator alpha responds in the same way (approved or rejected) to consecutive rounds of beta beta.

Finalization is very quick in the general case of no transaction conflicts. If there is a conflict, an honest validator quickly clusters the conflicting transactions and enters a positive feedback loop until all the correct validators prioritize the transaction. This allows you to accept non-conflicting transactions and reject conflicting transactions.

Avalanche Official Site: https://www.avax.network

3. Introducing Some Projects of Avalanche ( avalanche blockchain )

avalanche defi
avalanche defi

Here are some Avalanche projects.

3.1 What is Aave?

avalanche aave
avalanche aave

Aave is a decentralized financial protocol (DeFi) that allows you to lend and borrow virtual currencies. Lenders earn interest by depositing digital assets in a specially created liquidity pool. Borrowers can use this liquidity to use cryptocurrencies as collateral to obtain flash loans. Aave (“ghost” in Finnish) was originally known as ETHLend when it was launched in November 2017, but was rebranded to Aave in September 2018. (You can see why the token ticker is different from the name) AAVE offers platform owners a discount. It also acts as a governance token, giving owners a say in future protocol development.

Aave Official Site : https://aave.com/

What are the characteristics of Aave?

Aave has some unique selling points when compared to its competitors in the increasingly popular market. During the Summer 2020 DeFi Fever, Aave was one of the projects with the highest total protocol-locked cryptocurrencies. In this project, people can lend and borrow about 20 cryptocurrencies. In other words, the user has more choices.

One of Aave’s flagship services is flash loans. Flash Loans are the service advertised as the first unsecured loan on DeFi Space. But the important thing is that you have to repay within the same transaction.

Another big selling point is that you can switch between fixed and floating rates by borrowing through Aave. Fixed rates give you some certainty about the cost of the crypto market during the volatility period, but variable rates are advantageous if prices are expected to fall in the near future.

Is Aave Network Safe?

Aave’s open source protocol is currently built on Ethereum. Ethereum is a protocol that is moving from Proof of Work (PoW) to Proof of Stake (PoS).

How to purchase Aave?

avalanche defi
avalanche defi

The main exchanges that process AAVE tokens are CoinDCX, Binance, CoinBene, OKEx, etc. Learn how to convert from Fiat currency to cryptocurrency.

3.2 What is Curve? (CRV)

avalanche crypto
avalanche crypto

Curve is a decentralized exchange of stablecoins that uses an automated market maker (AMM) to manage liquidity. Launched in January 2020, Curve is now synonymous with the decentralized finance (DeFi) phenomenon and has grown significantly in the second half of 2020.

In August, Curve launched a Decentralized Autonomous Organization (DAO) that uses CRV as an internal token. DAO uses the Ethereum-based creation tool “Aragon” to connect multiple smart contracts used for user deposit liquidity.

avalanche defi
avalanche defi

TOP 3 of TVL ( Total Value Lock )

・1. MKR

・2. Aave

・3. Curve

When doing yield farming, be sure to check the TVL on the this site.


What are the characteristics of Curve?

As an AMM specializing in trading stablecoin, Curve has received a lot of attention to fulfill its mission. Since DAOs and CRV tokens are offered to users based on their liquidity commitment and retention period, the launch of DAOs and CRV tokens has improved their profitability when considering their use for CRV governance. The explosive popularity of DeFi trading guarantees the life of the Curve as AMM creates enormous liquidity and associated user benefits.

Therefore, Curve is suitable for those involved in DeFi activities such as yield farming and liquidity mining, or those who want to maximize returns without risk by holding stablecoins at a theoretically stable price. The platform makes money by charging low rates paid to liquidity providers.

4. What is an Avalanche Multiverse?

The Avalanche Foundation has launched Avalanche Multiverse, an incentive program for up to $ 290 million (up to 4M AVAX) focused on accelerating the adoption and growth of new “subnet” features. This enables a rich ecosystem of scalable app-specific blockchains.

First, the program will focus on supporting new ecosystems such as blockchain-enabled games, DeFi, NFT, and organizational use cases. Avalanche Multiverse provides a DeFi Kingdoms-specific subnet or “appchain”. The new Avalanche native token created by DeFi Kingdoms complements the existing $ JEWEL token and offers an incentive of up to $ 15M in total for $ AVAX and $ CRYSTAL. Details of reward allocation will be available shortly.

5. Summary ( avalanche blockchain )

Avalanche is an excellent chain with faster transaction processing and more processing than any other blockchain. You can also build smart contract Dapps right away with the availability of Ethereum tools. AVAX, Avalanche’s cryptocurrency, can also be used within DeFi Kingdoms for yield farming.

It can also be used on liquidity pool DeFi platforms such as Aave and Curve, allowing you to increase your crypto assets using liquidity pools. AVAX is priced close to other layer 1 blockchain Solana, and NFT games and various Dapps should continue to appear in the future. From this, it can be said that Avalanche is a layer 1 blockchain that can be expected in the future like Solana.

Yield farming and liquidity pool staking on Defi Kingdoms and various DeFi platforms are known to become unusable as soon as their winning patterns are known (no profits). In other words, the market is often already changed when it is whispered to be “profitable” on Twitter (so investors roam various DEX and liquidity pools).

Those who temporarily made money from liquidity pools, etc., found the law and method by themselves, and if many people did that method by teaching it, the odds would drop as well as horse racing.

It is a mechanism that makes no profit. Therefore, I think it is better to stop investing a lot in yield farming by swallowing information such as influencers on Twitter. If you do it in earnest, you need to decide to become a traveler who changes yield farming.

Reference URL: https://www.avax.network/




  • ITやガジェットなどをメインに記事を書いています。ご相談は、メールまでお願いします。Tokyo Web Writer | hideyuki001

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