SPOILER ALERT!
Lin Rong: Three present problems and benefits of decentralized financial (DeFi) over traditional finance
Since 2020, the field of decentralized financing, or DeFi, is continuing to grow rapidly. Its general market worth exceeded $1 billion in March, and it has become a narrative within the blockchain sector. (Omni-China Finance Digital Economy Forum Also asked Cao Yin to give a lecture on the transformative significance of DeFi).
But what cannot be ignored is the fact that DeFi has also experienced many incidents this year, from lightning financial loans used to assault bZx, to MakerDAO's bad liquidation causing several ETHs to be auctioned for 0 yuan. On March 12, the electronic currency market was bloodbathed and Substance had to rely on it for some time VC injected money to continue, and even dForce stole $25 million in Apr.
Undoubtedly, this industry is still very young and there are lots of shortcomings and shortcomings. It claims to reform conventional finance, but it lacks sufficient focus on risks. It is in awe of custom. It still has a big gap with all the financial regular military with regards to data sources, cost verification & emergency digesting, real-time liquidation, and warehouse penetration digesting. ;
DeFi projects still have to be refined in the choice between centralization and decentralization, and design philosophy. Of course, DeFi still gets the chance for reform and advancement for unified finance. The latter needs to learn from the former, similar to the situation when FinTech was born.
In a word, DeFi needs to cheaper its so-called "change makers" position and focus on learning fully developed and stable paths, methods and versions from traditional finance. Traditional finance should further open its hands and compete with DeFi in the broader sense. .
In the third phase of Omni-China Financing Digital Economy Forum, Ms. Lin Rong discussed the main topics bridging DeFi and conventional finance, [Previous Vice Leader of Global Advertising Division of Deutsche Financial institution and former Senior Professional of Ant Financial]. The following is the transcript of the lecture, Enjoy !
Since the beginning of the year, progress in the DeFi field will probably be worth paying attention to. For more than a year, Decentralized Financial (Decentralized Finance, known as DeFi) provides flourished.
The DeFi task deploys contract contracts on a decentralized blockchain network, and conducts financial business in accordance with code rules-each task can be thought to be an open and transparent bank.
At present, a lot of the employees doing work for each "bank" are just several to 20 or 30 employees, however the "saving balance" is continuing to grow rapidly, reaching a maximum of 1 billion US bucks in March. Even after the historical market turbulence in March, It rapidly retrieved to around 700 million US bucks. The number of users in addition has increased all the way from zero to 50,000 to 60,000.
This may not be a big quantity for traditional financing, but what must be considered is that blockchain finance continues to be at an extremely earlier stage-among the more than 7 billion people on the planet, it is estimated that there are just a lot more than 2,000 cryptocurrencies. Mil. The growth craze of the amount of users is close to that of the web in the first 1990s.
Let's have a look at the four consultant task dynamics in the initial four several weeks of 2020, and discuss advantages and unsolved difficulties of decentralized finance over traditional centralized fund. These four projects involve borrowing and financing businesses that we are familiar with, and they all deploy agreements in the Ethereum (ETH) blockchain system.
The month of january: 15-2nd mortgage: Aave Display Loan will be online
In traditional finance, the bank provides you with a loan. Generally, if it is not for investigating your situation to confirm that your credit score has exceeded, or you must provide collateral.
In flash loans, neither of the items is necessary.
Even if you certainly are a bankrupt person, you can lend a large amount of cash to some "bank" such as for example Aave, and circulate it for make use of. How can the bank guarantee you pay back? You need to pay back the amount of money before the next bookkeeping in the lender network system, or else the system will declare all of the activities of borrowing money and doing issues with the money invalid-yes! Anyway, the money and your operations are usually on the system, which means that the system is usually registered.
The "banks" we talked about all use the Ethereum network system. Normally, a block will be signed up in about 15 mere seconds to take into account a series of transactions. This is a loan of about 15 seconds.
"Lightning Mortgage" has been in operation for a period of time. In Feb, it suddenly grew to become famous because of a clever attack.
Someone discovered a loophole in a leveraged trading protocol called bZx. Verify the latest price before placing an order to find out in case your margin will do. This step will be skipped: that is, you should use less money to improve your assets. Cost, so the assault began. For particular analysis, it is possible to read this short article "PeckShield: Evaluation of Hardcore Technology, The Whole Tale of the Hacker Vulnerability Assault within the bZx Protocol".
To put it simply, he initial borrowed a large amount of money from another task that offered lightning loans (that's, ETH, which can be reported to be the standard foreign currency around the Ethereum system), and partly pledged to lend and hoard a small-scale resource. WBTC, part of the problematic platform pointed out earlier, additional leverage to get WBTC, which forced up its market price. Then, he required the opportunity to sell the WBTC earlier stocked at a price and came back the lightning mortgage, leaving a profit. Such a simple operation is in fact completed within 15 mere seconds, and within 15 mere seconds this person will make a profit around 350,000 to 60,000 U.S. bucks.
February: The guaranteed lottery (Pool Collectively) will get investment
The PoolTogether task thought of a casino game: Enable you to buy a lottery ticket with a dollar, and promise to protect the capital: a few days later, the original dollar will be returned for you. What kind of prize can be won by this type of lottery? The total amount of all lottery tickets sold will be deposited in the bank to earn attention. Once the attract day arrives, all the interest will be taken away with the winner at random.
Will there be an electronic "dollar" to put an purchase online? Yes, they incorporate the Dai and USDC from the USD stable currency MakerDAO, which is 1:1 with the specific USD anchor price.
PoolTogether also adopted the agent Uniswap to provide customers with trade services; integrated protocol AragonDAO to supply audits for everyone; plans to integrate another project Chainlink to supply better random quantities to choose winners...
what is this idea? For example, when you are weak no one cares, it is possible to access the e-check system of JPMorgan Run after Bank, the deposit service system of Citibank, the trade service of Financial institution of Cina, the audit service of the Big Four accounting firms... Provide support for your task, tell your customers the ins and outs of each transaction, open, clear, and traceable.
In the original world, there are nearly monopolistic and closed basic support modules. Now they're deployed for the blockchain, like blocks, open for you to use, in order to utilize the smallest resources to be creative, combine numerous ready-made modules, and construct Various forms.
March: 0 yuan to buy ETH, MakerDAO loses 4 million US dollars
The MakerDAO task is a traditional "pledge financing" logic. For instance, if you mortgage your house, you can borrow cash at a discount on the home price, or a more similar conventional financial tool is repurchase, mortgage shares, treasury bonds, precious metal or copper and other commodities to borrow funds.
Putting it simple, in MakerDAO, it is possible to pledge digital currencies such as for example Ethereum ETH, in a discount to the market price, and lend the USD stablecoin Dai issued by the task itself. The purchase price target of every Dai is equal to one dollar.
To be able to prevent the cost of the pledge from dropping too sharply rather than enough to settle the loan, the rules are set if the market price of ETH falls to a particular level and you also do not add the pledge or repay in time, you'll eliminate the pledge, and the machine will allow others go on it and auction To repay the loan.
On Black Thursday night, March 12, the price tag on ETH plummeted, plus some orders joined the pledge auction process. Because of this, about 4 million US dollars of ETH has been auctioned away at 0 yuan.
Where may be the problem? As long as we carefully go through the description of the rules one sentence, we know that in addition to the obvious interest rates and special discounts, you can find three special factors to pay focus on in safety.
The foremost is the "selling price"-how the market price is determined, or called the "oracle" in the blockchain. For instance, it really is stipulated that when the Ethereum falls to 120 US dollars, you will get rid of the pledge. After that who defines the Ethereum at this time is 121 US dollars or 119 US bucks? MakerDAO uses the median value of multiple information sources to transmit prices with the blockchain network. Nevertheless, in the slump, the complete network has been congested, leading to the shortcoming to transfer and update marketplace prices with time.
The next "auction"-that is definitely, the liquidation mechanism for handling pledges. MakerDAO offers several problems with the pledge liquidation system:
You are that at public sale, the stablecoin Dai issued by the project itself can be used to get pledges, but the entire market does not have Dai. Originally there is not much blood flow on the market. Under the panic, no one was ready to pledge ETH to cast a fresh Dai, and a lot of Dai loans had been returned, which led to the exhaustion of Dai liquidity in the complete market. The initial goal was 1 USD : 1 swap, the price rose to 1 1.12 US dollars at that time.
The second reason is the design from the auction mechanism in the blockchain adopted with the liquidation: the public sale starts at 0 yuan, as well as the auction price is usually submitted over the Ethereum blockchain. In ten minutes, no one will pay a higher price, you can bid. At that time, the network was congested, and the fee for sending transactions on Ethereum had been a lot more than 10 times the standard. Users who pay out ordinary handling fees to take part in the auction cannot submit the price in time.
So someone paid a relatively high commission, submitted an effective bid price of 0 Dai, and bought near 4 million US bucks in ETH, and the entire system fell into insolvency.
Third, "Pledge"-May this "bank" guarantee the security of the pledge you place it in? MakerDAO didn't have any problems this time around, but what we shall introduce below is the attack on this.
04: Lendf Me stolen $25 million
On April 19th, the decentralized lending project Lendf.me was attacked by code hackers and took away almost $25 million of resources in the project. Of course, it was very dramatic the fact that hackers later returned the money.
How did it do it? To put it simply, this starts with the accounting style of Lenf.me.
When you come to this financial institution to withdraw money and deposit money, your passbook accounts registration method is set up in the machine first. In the deposit counter-top, the calculation method of your balance is certainly: (the figures in the circle are illustrations).
At the cash withdrawal counter, the account balance calculation method will be:
But like saving money, everyone thinks it's best to intersperse in some other operations. For example, before entering the account, go to the anti-money laundering middle to check whether the address of the foundation of the money is the robber who robbed the lender. You must initial ban it. Therefore, Lenf.me adopts a better standard on the net. Based on compatibility with the initial logic, it supports the event of calling external operations.
This feature continues to be targeted.
Because the operation called by the hacker would be to withdraw money.
Let us resolve a problem:
If your account starts with 5 yuan, go directly to the deposit counter-top and deposit 1 yuan. Through the deposit process, you go to the withdrawal counter and withdraw 2 yuan. What should the final balance become?
As a result, Lenf.me registered 6
We know that the solution should be 4, but through the whole process, although the cash withdrawal counter registered the withdrawal action, the final confirmation was made at the down payment counter. It had been only told which the calculation method had been to use balance + deposit The amount of money you entered, instantly, 5+1=6, yes.
The two individual methods of depositing and withdrawing money are okay. If they're called together without the logic to avoid maliciousness, there is a problem. Hackers utilize this call to constantly withdraw the bank's possessions until the cash is exhausted.
It is especially regrettable that this method of hackers, which we call "re-entry attacks", occurred long ago in Ethereum. Also the day prior to the incident, everyone acquired seen this vulnerability and reminded the group that it had been unfortunately not handled well.
Of course, the hacker paid back the money extremely dramatically, and additional a "better upcoming" message to everyone. However, not because of any special miracle, but as the hacker's identity had been leaked.
Incidentally, this improvement that may be called externally is an important difference between the token regular that Ethereum calls ERC777 and the ERC20 regular token. ERC20 may be the standard used by a lot of the tokens within the "ICO" and "coin issuance" bubble that everyone offers been hearing before 2 yrs. It do a quite good thing: standardization. Everyone uses the same regular interface. Regardless of how many new assets are added, and what each resource symbolizes, access to numerous company wallets, exchanges, etc. gets to be very simple.
What should DeFi learn from traditional finance?
Despite the speedy advancement of decentralized fund, it is nevertheless in its early stages. The above illustrations can actually reveal some of the current complications. What should we learn from traditional finance?
First, respect and learn from financial logic.
Finance is rolling out for thousands of years, and technologies and accounting strategies are changing, but many important logics remain unchanged. Blockchain continues to be recognized through the circle of technology geeks, but to some extent, what kind of logic exists in the industry before calling out to "subvert" the vertical monetary industry? What kind of risks ought to be taken notice of? When it comes to real money, it needs to be treated more carefully.
Traditional finance has accumulated many years of experience, including: (1) Choosing credible data resources as price resources, and making modifications according to rules to reflect market changes (2) Making use of VWAP, that's, having the volume-weighted typical price as a reference (3) Establishing and improving Check out and emergency handling mechanism. Like the vertical time, how can be this price different from the previous cost? From the horizontal perspective, how does one databases deviate from other data resources... etc.
Another point that is overly ignored may be the "liquidation" mechanism, that actually directly affects the mortgage rate required for loans. When the price of collateral falls sharply, you can quickly realise the security at the best price, and you don't need a lot of collateral-this is actually where DeFi happens to be criticized.
(1) Traditional fund provides leverage, and the main element is a comprehensive set of security clearing system: connecting probably the most liquid traders on the planet, adopting intelligent investing strategies, including ideal volume and price selection, and large-amount splitting Orders, real-time monitoring of transaction quantity and flow manage, etc... To be able to balance risk and user experience, some institutions also have introduced operations such as for example stepwise liquidation.
(2) To be able to avoid the pledged items from penetrating warehouses and insolvency under severe circumstances, we are able to also study from the practices of many centralized exchanges. For example, in normal every day operations, it is necessary to calculate the VaR value of the asset (the worthiness at risk, that is linked to the volatility from the asset and the utmost loss that may be continual), and carry out a stress check (assuming what will happen under extreme market situations) Etc.) In turn, guide the product pledge rate, the total risk exposure modification rules, etc.; get ready an insurance account for closing placements; create the auction process for closing opportunities, etc.
Second, create a good choice between decentralization and centralization.
Do not force all problems to be solved through decentralization. For instance, if a corporation issues bonds with the blockchain, the blockchain cannot guarantee that the company will repay the principal and interest at maturity, but we don't need to power a one-time solution to all "trust" problems, and it will be automatically executed through blockchain sensible contracts Fund assets are settled across multiple institutions instantly, and bonds can ensure the authenticity of property when reselling, which already brings value to the financial system.
Another example is the oracle just described, namely the purchase price index. Many people locally want to pursue comprehensive decentralization, but you can find very strong economic requirements for that frequency of cost updates, not forgetting the FIX contract between financial institutions. This need reaches the millisecond level, and the complete decentralization may in many cases bring deficits to users.
The key part of the project ought to be as decentralized as you possibly can. For example, we shall talk about the best benefit of decentralized projects afterwards. Although you're a small business, with the blockchain, users cannot worry about misappropriating my property at will.
And now there are lots of small decentralized economic projects. Even though code is open up and transparent, you will see administrator rights upon this. The administrator can update the overall program code, call a stop in emergency, etc., many of which are essential Sexual.
However, many tasks, including the previously mentioned administrator authority designed by PoolTogether, can take away customer resources. This can be a design that should be avoided whenever you can. Users should keep their eyes open up and give consideration, and once it can happen, it'll inevitably have an enormous impact on the popularity and growth of the entire DeFi.
Passing these assessments is in turn to set the entire risk aspect and what actions should be taken when. If you find a problem with all the liquidation, what type of auction process will undoubtedly be carried out, what kind of fees will undoubtedly be charged during the auction process, or just how much will the founding users spend together to make the entire exchange deposit Operation.
Third, liquidity is king.
In essence, a blockchain system needs many individuals to show its value. Nevertheless, the root of several problems in present decentralized finance will be precisely the higher threshold for use and inadequate liquidity. This is of course because of the small level of DeFi, but there are still some areas that may be worked hard.
On the main one hand, an individual experience is where DeFi needs to work hard. For instance, as mentioned previously, the MakerDAO project was liquidated in 3.12. It was intended to motivate more folks to directly participate in the auction, but how should everyone take part? There is a lot of space for enhancement in the look of interactive interfaces and so forth.
On the other hand, especially in the first stages from the project, DeFi project parties can actively invite and motivate some liquidity companies to go to the platform. When creating a platform, there will always be chickens before eggs. Proactively resolve the issue of relatively concentrated incentives first. Only once more providers arrived at the platform will it attract more users.
Although DeFi provides many shortcomings in the transformation of traditional finance, there's still quite a distance to visit before large-scale apps, but at the same time we can furthermore see that decentralized finance provides played many new tricks that traditional finance cannot perform today.
To begin with, what we can see is the fact that decentralized finance provides superior characteristics in comparison to today's services, especially including openness, specifications, transparency, and programmable.
However, many people actually confuse the idea.
These characteristics aren't necessarily decentralized in nature. If only a single entity can be involved, today's financial institutions can also do it. They just quit this path away from business considerations.
This is like Yu'e Bao's turnout. In fact, could the commercial banks in those days provide more convenient and easy-to-use money funds with higher interest rates? totally okay. But it is obvious you could absorb a large amount of deposits at low interest rates, so why trouble to find factors yourself.
I must say that in fact, the usage of blockchain in many scenarios is a pseudo demand. Many places assume that there is a strong centralized organization, as well as the blockchain is not necessarily the most efficient party.
So, what's the difference between blockchain financial and traditional financing today?
First, there's native money on the blockchain network, that may improve settlement performance and reconstruct governance rely on across entities.
Today, on the Internet, the information coating and the funding layer are individual. For example, if you send money from Tiongkok to the United States, the information can be received instantly, but the money need to vacation slowly or perhaps a few days.
why? At this point remittances won't need to move gold.
Today the Internet transmits information, as well as the settlement of resources is the exchange of cash, which requires sign up in various entities: through your local bank, local clearing network, intermediary bank, local US bank...
The blockchain just takes full advantage of the type of coordinating multi-agent data processing at exactly the same time, and the simultaneous stream of funds can be realized in the network.
With the resource layer for the blockchain, decentralized governance could be effectively implemented to build trust.
Governance requires rules and punishment. It is difficult to understand governance independently on the easy information network trade. For example, you communicate point-to-point with somebody in the southern hemisphere, such as Brazil, on the Internet. He deceived you. It is difficult for you to definitely punish him just through the web today.
To some extent, why perform we trust large institutions like Google, Amazon . com, and Tencent? We do not believe that large companies are type, but implicitly state that we think that their big goals, the benefits that can be acquired for evildoers, are usually much smaller compared to the losses they result in by damage to their popularity and offline law enforcement, so they There is absolutely no motivation to do evil easily.
However, the system itself has money, and the problem is different. In the end, you can scold someone a long way away online, and the effect is a bit different from you could directly deduct cash from him. This asset on the system can be locked and settlement can be completed in real time. When our punishment is carried out effectively, we don't need to rely on this kind of centralized trust and huge institutional providers.
In this way, the initial centralized provider monopoly service can be divided and recombined: imagine your personal information information management, item requirements can pick the provider at will certainly, various financial products can be coupled with other services at will, around the blockchain Many really decentralized and rich financial ecosystems can be grown.
Second, where centralization is definitely absent, blockchain offers a way to organize multi-agent cooperation.
Many people within the encryption circle think that the public chain may be the blockchain, and the alliance chain isn't everyone's ideal. However in fact, the second option in fact coordinated multi-agent cooperation.
Actually, a centralized institution is enough for many things. For instance, if you want to realize the spreading of offline vendors of various banking institutions among different domestic banks and enhance the effectiveness of clearing, actually, the organization of UnionPay will link the various banks.
But even though CVPLab is already a large institution supported by hawaii, it has came across plenty of level of resistance during its advancement history. I won't talk much about the history of UnionPay and Net Union. That it is very interesting. You can take a look at the difficulties from the rise of the centralization.
Hawaii cannot permeate into every part, let alone some small situations. Centralization is in fact impossible.
Once the centralization can't be achieved, even if cooperation can boost mutual benefits, why do I need to listen to your directions and let me pay as much as you want? I don't desire to listen to you, and you don't want to pay attention to me.
At this time, the blockchain provides a coordinated method. It's neither me hearing you nor you hearing me. Everyone can become the bookkeeping party. Based on the guidelines of consensus, in addition they type an alliance-a dispersed database, but a lot of parties have the proper to keep accounts. Blockchain too.
Third, it noises more metaphysical, but what can actually bring a direct effect to the is that blockchain finance signifies a new mode of thinking, a fresh organization method, and a fresh service form.
As mentioned previously, the services supplied by Yu'e Bao weren't the latest providers, but it was the attempts of financial technologies that forced the entire industry to go forward.
Another example reaches the information level. What is the difference between your content of a centralized organization, such as for example Xinhua News Company and the open up WeChat public account and Douyin video platform? Can you state that Xinhua Information Agency is solid in reporting capability, professionalism and ability to mobilize resources? Or could it be a small WeChat public accounts/person who uploads videos on Douyin is usually more powerful?
With regards to overall power, Xinhua News Company may be more powerful, but the second option offers a new possibility: it offers an open platform, and under easy rules, it gives each individual an innovative space. Perhaps from the viewpoint of interviewing nationwide events, Xinhua News Agency is better than a WeChat general public platform that writes fashion magazines; however in this small aspect, the things written by the public accounts of fashion evaluations are more good requirements of some readers.
Blockchain provides this type of platform not only in terms of information, but also in the part involving possessions. Under simple rules, open finance will undoubtedly be constructed, that will release more sources and productivity.
Somewhat, the thought of ??blockchain actually suits the idea of "complex" techniques that we are usually gradually discovering in the natural world. In the complex system, each small unit only gives very simple rules, but under the rules, it can release all sorts of possibilities and shine with excellent vitality.
Represented by the proof-of-work mechanism from the Bitcoin public string, the blockchain offers described a totally open, free and transparent monetary world since its birth.
It represents a new possibility that will be even greater than the impact of monetary technology in the banking industry. It will force the entire business to reform and redistribute the structure within the development process.
Q&AQ1: Will the situation of DeFi projects become normal? So how exactly does the industry react to such a scenario?
A1: I think it will be normalized. First, it is a new thing, as well as the accumulated risk consciousness on the market may not be enough. In addition, it is a lot more open and clear than centralized financial, making it easier for everyone to see your weaknesses. Some people even stated that blockchain is currently the golden 10 years of hackers.
But we believe this may be a necessary phase in the growth of a economic industry or perhaps a new technology. SWIFT has had major attacks until 2015/16, including the central bank of Bangladesh that have been hacked, and there may be many risk activities in banks that will not tell you.
So I desire to just say relax, this can be a normal issue, and like this, you can build up more and more experience, exactly like today's traditional financial risk control, generally only after several incidents have occurred before. A process that'll be perfected.
Therefore, we may say that DeFi nowadays is a pioneer and experimental field for future years overall blockchain economic applications.
Q2: Along with traditional fund and DeFi, will DC/EP have an impact on traditional financing? Maybe there is a chemical response between DC/EP and DeFi?
A2: First of all, the understanding of DC/EP identifies the DC/EP of the Central Bank of China. Does it have an impact on traditional financing? I think it can. It is the digitization of M0, that's, the digitization of cash, and it'll also realize dual offline payments. To a certain degree, the introduction of DC/EP may help banks plus some operators gain a place in the electronic payment landscape monopolized by Alipay and WeChat nowadays.
Will DC/EP have a chemical response with DeFi? At present, as far as public information can be involved, it generally does not impose limitations on technical outlines and will not state that blockchain providers will be used. However, there may be a particular blockchain component on this technical attempt, and decentralization The economic sector creates some organic combinations.
Q3: DeFi on BTC seems to be very popular this season. DeFi that anchors BTC, such as tBTC and WBTC, is rising rapidly. How will you take a look at its future?
A3: First of all, the current DeFi project is actually the roof of Ethereum. In the current immature cross-chain circumstance, it really is its overall system users and the marketplace value of resources on the network.
We can clearly see that the marketplace worth of BTC is much bigger than that of Ethereum, and contains received a lot more attention than Ethereum. Conventional institutions still take a look at BTC, in the end, its market value is the 1st.
The rapid increase of tasks anchoring BTC is a way to expose BTC to Ethereum, the primary platform for DeFi. Consider pledged lending, for example. If you take a look at a decentralized economic lending platform, the majority of its volume originates from BTC pledged financing, not ETH pledged lending. Its market value is there, as well as your business volume Limited by the value from the assets getting pledged. The bigger the amount, it will naturally market you.
This matter can be regarded as the issuance of a secured asset on Ethereum, anchoring another resource in the true society. For instance, USDC, the united states dollar stable currency, furthermore anchors another asset-the US dollar in real life. Exactly like WBTC, look for a centralized and relatively trusted platform for custody.
WBTC places BTC in BitGo (Note: a licensed custodian in NY State, United states) to problem "BTC stablecoins". BTC-denominated resources raise the richness of the entire ecosystem. Needless to say tBTC is doing it within a decentralized method. The richer the assets on the platform, the more monetary services it is possible to build, so that it will definitely turn into a good driving push for the growth of the complete DeFi.
Q4: What do you think about the skyrocketing market worth of stable cash in the past two months?
A4: There are many reasons. The first is that after March 12, the marketplace has lost leverage plus some digital currencies have been replaced with steady coins. It is a bit such as, many traditional traders have dumped shares and other dangerous assets and held stable US dollar assets. It is one of these; the other is actually a good thing, there are a few traditional institutions entering the venue. Of course, it is vital that Tether can be an organization that is not particularly reassuring to everyone. Recently, many USDTs have already been issued. The reason why are different, therefore i won't comment right here.
Time is almost up, then our sharing today ends here. Pleasant everyone to really have the opportunity to communicate a lot, many thanks all.
Edit this issue�UWang Zelong
Contributions in this particular problem�ULin Rong
Focus on us and be a waver of the digital economy~
But what cannot be ignored is the fact that DeFi has also experienced many incidents this year, from lightning financial loans used to assault bZx, to MakerDAO's bad liquidation causing several ETHs to be auctioned for 0 yuan. On March 12, the electronic currency market was bloodbathed and Substance had to rely on it for some time VC injected money to continue, and even dForce stole $25 million in Apr.
Undoubtedly, this industry is still very young and there are lots of shortcomings and shortcomings. It claims to reform conventional finance, but it lacks sufficient focus on risks. It is in awe of custom. It still has a big gap with all the financial regular military with regards to data sources, cost verification & emergency digesting, real-time liquidation, and warehouse penetration digesting. ;
DeFi projects still have to be refined in the choice between centralization and decentralization, and design philosophy. Of course, DeFi still gets the chance for reform and advancement for unified finance. The latter needs to learn from the former, similar to the situation when FinTech was born.
In a word, DeFi needs to cheaper its so-called "change makers" position and focus on learning fully developed and stable paths, methods and versions from traditional finance. Traditional finance should further open its hands and compete with DeFi in the broader sense. .
In the third phase of Omni-China Financing Digital Economy Forum, Ms. Lin Rong discussed the main topics bridging DeFi and conventional finance, [Previous Vice Leader of Global Advertising Division of Deutsche Financial institution and former Senior Professional of Ant Financial]. The following is the transcript of the lecture, Enjoy !
Since the beginning of the year, progress in the DeFi field will probably be worth paying attention to. For more than a year, Decentralized Financial (Decentralized Finance, known as DeFi) provides flourished.
The DeFi task deploys contract contracts on a decentralized blockchain network, and conducts financial business in accordance with code rules-each task can be thought to be an open and transparent bank.
At present, a lot of the employees doing work for each "bank" are just several to 20 or 30 employees, however the "saving balance" is continuing to grow rapidly, reaching a maximum of 1 billion US bucks in March. Even after the historical market turbulence in March, It rapidly retrieved to around 700 million US bucks. The number of users in addition has increased all the way from zero to 50,000 to 60,000.
This may not be a big quantity for traditional financing, but what must be considered is that blockchain finance continues to be at an extremely earlier stage-among the more than 7 billion people on the planet, it is estimated that there are just a lot more than 2,000 cryptocurrencies. Mil. The growth craze of the amount of users is close to that of the web in the first 1990s.
Let's have a look at the four consultant task dynamics in the initial four several weeks of 2020, and discuss advantages and unsolved difficulties of decentralized finance over traditional centralized fund. These four projects involve borrowing and financing businesses that we are familiar with, and they all deploy agreements in the Ethereum (ETH) blockchain system.
The month of january: 15-2nd mortgage: Aave Display Loan will be online
In traditional finance, the bank provides you with a loan. Generally, if it is not for investigating your situation to confirm that your credit score has exceeded, or you must provide collateral.
In flash loans, neither of the items is necessary.
Even if you certainly are a bankrupt person, you can lend a large amount of cash to some "bank" such as for example Aave, and circulate it for make use of. How can the bank guarantee you pay back? You need to pay back the amount of money before the next bookkeeping in the lender network system, or else the system will declare all of the activities of borrowing money and doing issues with the money invalid-yes! Anyway, the money and your operations are usually on the system, which means that the system is usually registered.
The "banks" we talked about all use the Ethereum network system. Normally, a block will be signed up in about 15 mere seconds to take into account a series of transactions. This is a loan of about 15 seconds.
"Lightning Mortgage" has been in operation for a period of time. In Feb, it suddenly grew to become famous because of a clever attack.
Someone discovered a loophole in a leveraged trading protocol called bZx. Verify the latest price before placing an order to find out in case your margin will do. This step will be skipped: that is, you should use less money to improve your assets. Cost, so the assault began. For particular analysis, it is possible to read this short article "PeckShield: Evaluation of Hardcore Technology, The Whole Tale of the Hacker Vulnerability Assault within the bZx Protocol".
To put it simply, he initial borrowed a large amount of money from another task that offered lightning loans (that's, ETH, which can be reported to be the standard foreign currency around the Ethereum system), and partly pledged to lend and hoard a small-scale resource. WBTC, part of the problematic platform pointed out earlier, additional leverage to get WBTC, which forced up its market price. Then, he required the opportunity to sell the WBTC earlier stocked at a price and came back the lightning mortgage, leaving a profit. Such a simple operation is in fact completed within 15 mere seconds, and within 15 mere seconds this person will make a profit around 350,000 to 60,000 U.S. bucks.
February: The guaranteed lottery (Pool Collectively) will get investment
The PoolTogether task thought of a casino game: Enable you to buy a lottery ticket with a dollar, and promise to protect the capital: a few days later, the original dollar will be returned for you. What kind of prize can be won by this type of lottery? The total amount of all lottery tickets sold will be deposited in the bank to earn attention. Once the attract day arrives, all the interest will be taken away with the winner at random.
Will there be an electronic "dollar" to put an purchase online? Yes, they incorporate the Dai and USDC from the USD stable currency MakerDAO, which is 1:1 with the specific USD anchor price.
PoolTogether also adopted the agent Uniswap to provide customers with trade services; integrated protocol AragonDAO to supply audits for everyone; plans to integrate another project Chainlink to supply better random quantities to choose winners...
what is this idea? For example, when you are weak no one cares, it is possible to access the e-check system of JPMorgan Run after Bank, the deposit service system of Citibank, the trade service of Financial institution of Cina, the audit service of the Big Four accounting firms... Provide support for your task, tell your customers the ins and outs of each transaction, open, clear, and traceable.
In the original world, there are nearly monopolistic and closed basic support modules. Now they're deployed for the blockchain, like blocks, open for you to use, in order to utilize the smallest resources to be creative, combine numerous ready-made modules, and construct Various forms.
March: 0 yuan to buy ETH, MakerDAO loses 4 million US dollars
The MakerDAO task is a traditional "pledge financing" logic. For instance, if you mortgage your house, you can borrow cash at a discount on the home price, or a more similar conventional financial tool is repurchase, mortgage shares, treasury bonds, precious metal or copper and other commodities to borrow funds.
Putting it simple, in MakerDAO, it is possible to pledge digital currencies such as for example Ethereum ETH, in a discount to the market price, and lend the USD stablecoin Dai issued by the task itself. The purchase price target of every Dai is equal to one dollar.
To be able to prevent the cost of the pledge from dropping too sharply rather than enough to settle the loan, the rules are set if the market price of ETH falls to a particular level and you also do not add the pledge or repay in time, you'll eliminate the pledge, and the machine will allow others go on it and auction To repay the loan.
On Black Thursday night, March 12, the price tag on ETH plummeted, plus some orders joined the pledge auction process. Because of this, about 4 million US dollars of ETH has been auctioned away at 0 yuan.
Where may be the problem? As long as we carefully go through the description of the rules one sentence, we know that in addition to the obvious interest rates and special discounts, you can find three special factors to pay focus on in safety.
The foremost is the "selling price"-how the market price is determined, or called the "oracle" in the blockchain. For instance, it really is stipulated that when the Ethereum falls to 120 US dollars, you will get rid of the pledge. After that who defines the Ethereum at this time is 121 US dollars or 119 US bucks? MakerDAO uses the median value of multiple information sources to transmit prices with the blockchain network. Nevertheless, in the slump, the complete network has been congested, leading to the shortcoming to transfer and update marketplace prices with time.
The next "auction"-that is definitely, the liquidation mechanism for handling pledges. MakerDAO offers several problems with the pledge liquidation system:
You are that at public sale, the stablecoin Dai issued by the project itself can be used to get pledges, but the entire market does not have Dai. Originally there is not much blood flow on the market. Under the panic, no one was ready to pledge ETH to cast a fresh Dai, and a lot of Dai loans had been returned, which led to the exhaustion of Dai liquidity in the complete market. The initial goal was 1 USD : 1 swap, the price rose to 1 1.12 US dollars at that time.
The second reason is the design from the auction mechanism in the blockchain adopted with the liquidation: the public sale starts at 0 yuan, as well as the auction price is usually submitted over the Ethereum blockchain. In ten minutes, no one will pay a higher price, you can bid. At that time, the network was congested, and the fee for sending transactions on Ethereum had been a lot more than 10 times the standard. Users who pay out ordinary handling fees to take part in the auction cannot submit the price in time.
So someone paid a relatively high commission, submitted an effective bid price of 0 Dai, and bought near 4 million US bucks in ETH, and the entire system fell into insolvency.
Third, "Pledge"-May this "bank" guarantee the security of the pledge you place it in? MakerDAO didn't have any problems this time around, but what we shall introduce below is the attack on this.
04: Lendf Me stolen $25 million
On April 19th, the decentralized lending project Lendf.me was attacked by code hackers and took away almost $25 million of resources in the project. Of course, it was very dramatic the fact that hackers later returned the money.
How did it do it? To put it simply, this starts with the accounting style of Lenf.me.
When you come to this financial institution to withdraw money and deposit money, your passbook accounts registration method is set up in the machine first. In the deposit counter-top, the calculation method of your balance is certainly: (the figures in the circle are illustrations).
At the cash withdrawal counter, the account balance calculation method will be:
But like saving money, everyone thinks it's best to intersperse in some other operations. For example, before entering the account, go to the anti-money laundering middle to check whether the address of the foundation of the money is the robber who robbed the lender. You must initial ban it. Therefore, Lenf.me adopts a better standard on the net. Based on compatibility with the initial logic, it supports the event of calling external operations.
This feature continues to be targeted.
Because the operation called by the hacker would be to withdraw money.
Let us resolve a problem:
If your account starts with 5 yuan, go directly to the deposit counter-top and deposit 1 yuan. Through the deposit process, you go to the withdrawal counter and withdraw 2 yuan. What should the final balance become?
As a result, Lenf.me registered 6
We know that the solution should be 4, but through the whole process, although the cash withdrawal counter registered the withdrawal action, the final confirmation was made at the down payment counter. It had been only told which the calculation method had been to use balance + deposit The amount of money you entered, instantly, 5+1=6, yes.
The two individual methods of depositing and withdrawing money are okay. If they're called together without the logic to avoid maliciousness, there is a problem. Hackers utilize this call to constantly withdraw the bank's possessions until the cash is exhausted.
It is especially regrettable that this method of hackers, which we call "re-entry attacks", occurred long ago in Ethereum. Also the day prior to the incident, everyone acquired seen this vulnerability and reminded the group that it had been unfortunately not handled well.
Of course, the hacker paid back the money extremely dramatically, and additional a "better upcoming" message to everyone. However, not because of any special miracle, but as the hacker's identity had been leaked.
Incidentally, this improvement that may be called externally is an important difference between the token regular that Ethereum calls ERC777 and the ERC20 regular token. ERC20 may be the standard used by a lot of the tokens within the "ICO" and "coin issuance" bubble that everyone offers been hearing before 2 yrs. It do a quite good thing: standardization. Everyone uses the same regular interface. Regardless of how many new assets are added, and what each resource symbolizes, access to numerous company wallets, exchanges, etc. gets to be very simple.
What should DeFi learn from traditional finance?
Despite the speedy advancement of decentralized fund, it is nevertheless in its early stages. The above illustrations can actually reveal some of the current complications. What should we learn from traditional finance?
First, respect and learn from financial logic.
Finance is rolling out for thousands of years, and technologies and accounting strategies are changing, but many important logics remain unchanged. Blockchain continues to be recognized through the circle of technology geeks, but to some extent, what kind of logic exists in the industry before calling out to "subvert" the vertical monetary industry? What kind of risks ought to be taken notice of? When it comes to real money, it needs to be treated more carefully.
Traditional finance has accumulated many years of experience, including: (1) Choosing credible data resources as price resources, and making modifications according to rules to reflect market changes (2) Making use of VWAP, that's, having the volume-weighted typical price as a reference (3) Establishing and improving Check out and emergency handling mechanism. Like the vertical time, how can be this price different from the previous cost? From the horizontal perspective, how does one databases deviate from other data resources... etc.
Another point that is overly ignored may be the "liquidation" mechanism, that actually directly affects the mortgage rate required for loans. When the price of collateral falls sharply, you can quickly realise the security at the best price, and you don't need a lot of collateral-this is actually where DeFi happens to be criticized.
(1) Traditional fund provides leverage, and the main element is a comprehensive set of security clearing system: connecting probably the most liquid traders on the planet, adopting intelligent investing strategies, including ideal volume and price selection, and large-amount splitting Orders, real-time monitoring of transaction quantity and flow manage, etc... To be able to balance risk and user experience, some institutions also have introduced operations such as for example stepwise liquidation.
(2) To be able to avoid the pledged items from penetrating warehouses and insolvency under severe circumstances, we are able to also study from the practices of many centralized exchanges. For example, in normal every day operations, it is necessary to calculate the VaR value of the asset (the worthiness at risk, that is linked to the volatility from the asset and the utmost loss that may be continual), and carry out a stress check (assuming what will happen under extreme market situations) Etc.) In turn, guide the product pledge rate, the total risk exposure modification rules, etc.; get ready an insurance account for closing placements; create the auction process for closing opportunities, etc.
Second, create a good choice between decentralization and centralization.
Do not force all problems to be solved through decentralization. For instance, if a corporation issues bonds with the blockchain, the blockchain cannot guarantee that the company will repay the principal and interest at maturity, but we don't need to power a one-time solution to all "trust" problems, and it will be automatically executed through blockchain sensible contracts Fund assets are settled across multiple institutions instantly, and bonds can ensure the authenticity of property when reselling, which already brings value to the financial system.
Another example is the oracle just described, namely the purchase price index. Many people locally want to pursue comprehensive decentralization, but you can find very strong economic requirements for that frequency of cost updates, not forgetting the FIX contract between financial institutions. This need reaches the millisecond level, and the complete decentralization may in many cases bring deficits to users.
The key part of the project ought to be as decentralized as you possibly can. For example, we shall talk about the best benefit of decentralized projects afterwards. Although you're a small business, with the blockchain, users cannot worry about misappropriating my property at will.
And now there are lots of small decentralized economic projects. Even though code is open up and transparent, you will see administrator rights upon this. The administrator can update the overall program code, call a stop in emergency, etc., many of which are essential Sexual.
However, many tasks, including the previously mentioned administrator authority designed by PoolTogether, can take away customer resources. This can be a design that should be avoided whenever you can. Users should keep their eyes open up and give consideration, and once it can happen, it'll inevitably have an enormous impact on the popularity and growth of the entire DeFi.
Passing these assessments is in turn to set the entire risk aspect and what actions should be taken when. If you find a problem with all the liquidation, what type of auction process will undoubtedly be carried out, what kind of fees will undoubtedly be charged during the auction process, or just how much will the founding users spend together to make the entire exchange deposit Operation.
Third, liquidity is king.
In essence, a blockchain system needs many individuals to show its value. Nevertheless, the root of several problems in present decentralized finance will be precisely the higher threshold for use and inadequate liquidity. This is of course because of the small level of DeFi, but there are still some areas that may be worked hard.
On the main one hand, an individual experience is where DeFi needs to work hard. For instance, as mentioned previously, the MakerDAO project was liquidated in 3.12. It was intended to motivate more folks to directly participate in the auction, but how should everyone take part? There is a lot of space for enhancement in the look of interactive interfaces and so forth.
On the other hand, especially in the first stages from the project, DeFi project parties can actively invite and motivate some liquidity companies to go to the platform. When creating a platform, there will always be chickens before eggs. Proactively resolve the issue of relatively concentrated incentives first. Only once more providers arrived at the platform will it attract more users.
Although DeFi provides many shortcomings in the transformation of traditional finance, there's still quite a distance to visit before large-scale apps, but at the same time we can furthermore see that decentralized finance provides played many new tricks that traditional finance cannot perform today.
To begin with, what we can see is the fact that decentralized finance provides superior characteristics in comparison to today's services, especially including openness, specifications, transparency, and programmable.
However, many people actually confuse the idea.
These characteristics aren't necessarily decentralized in nature. If only a single entity can be involved, today's financial institutions can also do it. They just quit this path away from business considerations.
This is like Yu'e Bao's turnout. In fact, could the commercial banks in those days provide more convenient and easy-to-use money funds with higher interest rates? totally okay. But it is obvious you could absorb a large amount of deposits at low interest rates, so why trouble to find factors yourself.
I must say that in fact, the usage of blockchain in many scenarios is a pseudo demand. Many places assume that there is a strong centralized organization, as well as the blockchain is not necessarily the most efficient party.
So, what's the difference between blockchain financial and traditional financing today?
First, there's native money on the blockchain network, that may improve settlement performance and reconstruct governance rely on across entities.
Today, on the Internet, the information coating and the funding layer are individual. For example, if you send money from Tiongkok to the United States, the information can be received instantly, but the money need to vacation slowly or perhaps a few days.
why? At this point remittances won't need to move gold.
Today the Internet transmits information, as well as the settlement of resources is the exchange of cash, which requires sign up in various entities: through your local bank, local clearing network, intermediary bank, local US bank...
The blockchain just takes full advantage of the type of coordinating multi-agent data processing at exactly the same time, and the simultaneous stream of funds can be realized in the network.
With the resource layer for the blockchain, decentralized governance could be effectively implemented to build trust.
Governance requires rules and punishment. It is difficult to understand governance independently on the easy information network trade. For example, you communicate point-to-point with somebody in the southern hemisphere, such as Brazil, on the Internet. He deceived you. It is difficult for you to definitely punish him just through the web today.
To some extent, why perform we trust large institutions like Google, Amazon . com, and Tencent? We do not believe that large companies are type, but implicitly state that we think that their big goals, the benefits that can be acquired for evildoers, are usually much smaller compared to the losses they result in by damage to their popularity and offline law enforcement, so they There is absolutely no motivation to do evil easily.
However, the system itself has money, and the problem is different. In the end, you can scold someone a long way away online, and the effect is a bit different from you could directly deduct cash from him. This asset on the system can be locked and settlement can be completed in real time. When our punishment is carried out effectively, we don't need to rely on this kind of centralized trust and huge institutional providers.
In this way, the initial centralized provider monopoly service can be divided and recombined: imagine your personal information information management, item requirements can pick the provider at will certainly, various financial products can be coupled with other services at will, around the blockchain Many really decentralized and rich financial ecosystems can be grown.
Second, where centralization is definitely absent, blockchain offers a way to organize multi-agent cooperation.
Many people within the encryption circle think that the public chain may be the blockchain, and the alliance chain isn't everyone's ideal. However in fact, the second option in fact coordinated multi-agent cooperation.
Actually, a centralized institution is enough for many things. For instance, if you want to realize the spreading of offline vendors of various banking institutions among different domestic banks and enhance the effectiveness of clearing, actually, the organization of UnionPay will link the various banks.
But even though CVPLab is already a large institution supported by hawaii, it has came across plenty of level of resistance during its advancement history. I won't talk much about the history of UnionPay and Net Union. That it is very interesting. You can take a look at the difficulties from the rise of the centralization.
Hawaii cannot permeate into every part, let alone some small situations. Centralization is in fact impossible.
Once the centralization can't be achieved, even if cooperation can boost mutual benefits, why do I need to listen to your directions and let me pay as much as you want? I don't desire to listen to you, and you don't want to pay attention to me.
At this time, the blockchain provides a coordinated method. It's neither me hearing you nor you hearing me. Everyone can become the bookkeeping party. Based on the guidelines of consensus, in addition they type an alliance-a dispersed database, but a lot of parties have the proper to keep accounts. Blockchain too.
Third, it noises more metaphysical, but what can actually bring a direct effect to the is that blockchain finance signifies a new mode of thinking, a fresh organization method, and a fresh service form.
As mentioned previously, the services supplied by Yu'e Bao weren't the latest providers, but it was the attempts of financial technologies that forced the entire industry to go forward.
Another example reaches the information level. What is the difference between your content of a centralized organization, such as for example Xinhua News Company and the open up WeChat public account and Douyin video platform? Can you state that Xinhua Information Agency is solid in reporting capability, professionalism and ability to mobilize resources? Or could it be a small WeChat public accounts/person who uploads videos on Douyin is usually more powerful?
With regards to overall power, Xinhua News Company may be more powerful, but the second option offers a new possibility: it offers an open platform, and under easy rules, it gives each individual an innovative space. Perhaps from the viewpoint of interviewing nationwide events, Xinhua News Agency is better than a WeChat general public platform that writes fashion magazines; however in this small aspect, the things written by the public accounts of fashion evaluations are more good requirements of some readers.
Blockchain provides this type of platform not only in terms of information, but also in the part involving possessions. Under simple rules, open finance will undoubtedly be constructed, that will release more sources and productivity.
Somewhat, the thought of ??blockchain actually suits the idea of "complex" techniques that we are usually gradually discovering in the natural world. In the complex system, each small unit only gives very simple rules, but under the rules, it can release all sorts of possibilities and shine with excellent vitality.
Represented by the proof-of-work mechanism from the Bitcoin public string, the blockchain offers described a totally open, free and transparent monetary world since its birth.
It represents a new possibility that will be even greater than the impact of monetary technology in the banking industry. It will force the entire business to reform and redistribute the structure within the development process.
Q&AQ1: Will the situation of DeFi projects become normal? So how exactly does the industry react to such a scenario?
A1: I think it will be normalized. First, it is a new thing, as well as the accumulated risk consciousness on the market may not be enough. In addition, it is a lot more open and clear than centralized financial, making it easier for everyone to see your weaknesses. Some people even stated that blockchain is currently the golden 10 years of hackers.
But we believe this may be a necessary phase in the growth of a economic industry or perhaps a new technology. SWIFT has had major attacks until 2015/16, including the central bank of Bangladesh that have been hacked, and there may be many risk activities in banks that will not tell you.
So I desire to just say relax, this can be a normal issue, and like this, you can build up more and more experience, exactly like today's traditional financial risk control, generally only after several incidents have occurred before. A process that'll be perfected.
Therefore, we may say that DeFi nowadays is a pioneer and experimental field for future years overall blockchain economic applications.
Q2: Along with traditional fund and DeFi, will DC/EP have an impact on traditional financing? Maybe there is a chemical response between DC/EP and DeFi?
A2: First of all, the understanding of DC/EP identifies the DC/EP of the Central Bank of China. Does it have an impact on traditional financing? I think it can. It is the digitization of M0, that's, the digitization of cash, and it'll also realize dual offline payments. To a certain degree, the introduction of DC/EP may help banks plus some operators gain a place in the electronic payment landscape monopolized by Alipay and WeChat nowadays.
Will DC/EP have a chemical response with DeFi? At present, as far as public information can be involved, it generally does not impose limitations on technical outlines and will not state that blockchain providers will be used. However, there may be a particular blockchain component on this technical attempt, and decentralization The economic sector creates some organic combinations.
Q3: DeFi on BTC seems to be very popular this season. DeFi that anchors BTC, such as tBTC and WBTC, is rising rapidly. How will you take a look at its future?
A3: First of all, the current DeFi project is actually the roof of Ethereum. In the current immature cross-chain circumstance, it really is its overall system users and the marketplace value of resources on the network.
We can clearly see that the marketplace worth of BTC is much bigger than that of Ethereum, and contains received a lot more attention than Ethereum. Conventional institutions still take a look at BTC, in the end, its market value is the 1st.
The rapid increase of tasks anchoring BTC is a way to expose BTC to Ethereum, the primary platform for DeFi. Consider pledged lending, for example. If you take a look at a decentralized economic lending platform, the majority of its volume originates from BTC pledged financing, not ETH pledged lending. Its market value is there, as well as your business volume Limited by the value from the assets getting pledged. The bigger the amount, it will naturally market you.
This matter can be regarded as the issuance of a secured asset on Ethereum, anchoring another resource in the true society. For instance, USDC, the united states dollar stable currency, furthermore anchors another asset-the US dollar in real life. Exactly like WBTC, look for a centralized and relatively trusted platform for custody.
WBTC places BTC in BitGo (Note: a licensed custodian in NY State, United states) to problem "BTC stablecoins". BTC-denominated resources raise the richness of the entire ecosystem. Needless to say tBTC is doing it within a decentralized method. The richer the assets on the platform, the more monetary services it is possible to build, so that it will definitely turn into a good driving push for the growth of the complete DeFi.
Q4: What do you think about the skyrocketing market worth of stable cash in the past two months?
A4: There are many reasons. The first is that after March 12, the marketplace has lost leverage plus some digital currencies have been replaced with steady coins. It is a bit such as, many traditional traders have dumped shares and other dangerous assets and held stable US dollar assets. It is one of these; the other is actually a good thing, there are a few traditional institutions entering the venue. Of course, it is vital that Tether can be an organization that is not particularly reassuring to everyone. Recently, many USDTs have already been issued. The reason why are different, therefore i won't comment right here.
Time is almost up, then our sharing today ends here. Pleasant everyone to really have the opportunity to communicate a lot, many thanks all.
Edit this issue�UWang Zelong
Contributions in this particular problem�ULin Rong
Focus on us and be a waver of the digital economy~
 over traditional finance)