If you are interested in DeFi, it is extremely important to try out things before you start to invest significant amounts of your money. Sure, you can read many articles about DeFi (including mine 😎) — and everybody will tell you:

“Do your own research!”

But please don’t equate research with just “reading”. Nothing will beat hands-on experience, trying out DeFi projects you find interesting.

Photo by Natasha Chebanoo on Unsplash

Just do it.

While “trying out” sounds easy, it is not. The user experience (UX) of most DeFi projects is far from consumer friendly or anywhere near current banking apps you might be used to. …


[This is a cross-post. I first published this article on publish0x — always trying out something new]

DeFi lessons for Central Banks

We’ve come a long way: In previous parts of this series we discussed the influence of public Blockchains like Ethereum, their token ecosystems and especially the latest developments in Decentralized Finance (DeFi) upon financial markets. We went down the rabbit hole of DeFi in parts 2 and 3 — saw its shining and dark sides. In part 4 we went up again — investigating what’s in it for users and how to stay in control of one’s DeFi investments. In part 5 we…


[This is a cross-post. I first published this article on publish0x — always trying out something new]

A user’s view on the DeFi jungle

After the DeFi deep dive in part 2 and 3, we’ll now touch the surface again and delve into the (retail) user’s perspective on DeFi.

As you’ve seen it’s quite a “jungle” of DeFi opportunities out there. Sometimes, it is really hard to keep the overview. Let me try to pave your way through that jungle…

Photo by Maggie Collins on Unsplash

Let’s start with some tools and apps that really help with orientation.

Tooling for DeFi

One of my favorite DeFi tools is Zapper. Zapper first caught my attention with their…


Photo by Martin Lopez from Pexels

We talked about DeFi wallets in part 1 and typical DeFi investor profiles in part 2. Now, it’s about time to actually start to invest. I thought a lot about where to start in times of high prices and high transaction cost.

Where to invest?

So, let’s assume you want exposure to different projects from the DeFi space. This helps to minimize your risk. You also want to start small and certainly want to avoid too many transactions to keep the cost side in certain limits.

This scenario falls into my investor profile Lazy Aggregator (see part 2). Let the DeFi system work…


Investor profiles

The DeFi landscape is very diverse. Sometimes it even feels like a DeFi jungle as described in one of my other articles. That’s why it helps to take a step back and think about your investment profile and appetite for risk before you dive deeper into DeFi. Let’s try to do exactly that!

[If you are totally new to DeFi, you might want to start with part 1 of this series]

I thought a lot about potential categories lately and came up with the following investor profiles:

  1. The Ambitious HODLer
  2. The Stablecoin Purist
  3. The Yield Activist
  4. The Lazy Aggregator

There…


[This is a cross-post. I first published this article on publish0x — always trying out something new]

Bringing it all together

By now, we’ve covered DeFi full circle and brought many pieces together. I tried to pave your way on that bumpy road. You still need to walk carefully, but you should have collected basic knowledge about DeFi.

Photo by Jeffrey Blum on Unsplash

Firstly, we analyzed the increasing pressure from blockchain-born tokenized currencies and financial instruments upon the existing financial ecosystems. We’ve seen pressure coming from different angles and bringing fundamental change to financial markets.

Secondly, we dived deep into different DeFi use cases and their characteristics. We analyzed…


[This is a cross-post. I first published this article on publish0x — always trying out something new]

DeFi opportunities for retail banks

As we’ve learned in part 1, DeFi imposes additional (and significant) pressure upon existing players in the financial ecosystem — especially retail banks. DeFi reinvents basic financial instruments on top of permission-less Blockchains and their powerful interoperable token infrastructure. This pressure is considerably more fundamental than the usual FinTech competitors that attack retail banks predominantly on the user experience level — but leave the core banking untouched — at least compared to DeFi.

A nice view upon the bank towers in Frankfurt/Germany. Photo by Pixabay from Pexels

As we’ve seen in parts 2 and 3, DeFi offers…


[This is a cross-post. I first published this article on publish0x — always trying out something new]

The amazing parts of DeFi

In part 1 of this series we had a look at the broader picture of the financial ecosystem. In part 2 we went down the DeFi rabbit hole and discovered the first two ingredients for an excellent DeFi “meal” to understand the big picture. We talked about lending/borrowing as well as Automated Market Makers and Liquidity Providers.

With part 3 we’ll dig even deeper. You’ll learn about the truly amazing parts in this new DeFi world, before we’ll resurface and extract our lessons…


[This is a cross-post. I first published this article on publish0x — always trying out something new]

The rise of DeFi

In part 1 of this article series I introduced you to my personal macro view on Decentralized Finance and its possible disruption of the financial ecosystem. Now, let’s dive deeper. In this article we’ll work on the important question:

What makes DeFi so attractive and different?

The short answer is certainly: Its promise for “high yields”.

Photo by James Wheeler from Pexels

But while this sounds simple and plausible, I’m afraid the truth is more complex than many might think. That’s why I’ll give you some “historical context” about…


…and what to do about it…

[This is a cross-post. I first published this article on publish0x — always trying out something new]

A lot of people talk and write about cryptocurrencies these days. You’ve certainly read headlines like:

“Bitcoin reaches a new all-time high”

“DeFi crosses 15b$ TVL (total value locked) — and rising”

“>12% APY on the newest DeFi project”

Yet, most of these articles seem to miss the profound change that’s currently happening to the financial ecosystem as a whole. I’ll use my “lockdown XMas holidays” (December 2020) to take you on a trip: Instead of skiing in the Austrian alps (what I…

Stefan Grasmann

Working at the intersection of New Work and New Tech. IoT veteran. Blockchain enthusiast. Driving @zuehlke_group to the next level.

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