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Cryptonomics – Solana Chain News – One Stop News Solution for Solana

Category Archives: Cryptonomics

Raydium Protocol: An On-Chain Orderbook Powered by Serum and Solana

Raydium Protocol has been making significant volume and seeing major growth and acceptance for nearly a month since its launch on Solana. Through its utilization of on-chain liquidity, Raydium provides seamless swaps. What is Raydium? Raydium is a decentralized exchange (Dex) that leverages automated market maker (AMM) technology. As a liquidity provider on top of the Serum Dex, Raydium[Read more…]

Cryptonomics: Liquidity Pools in Decentralized Finance

The financial freedom and control that decentralized finance offers users has led to a rapid growth of the DeFi sector. Liquidity pools and automated market makers (AMMs) are a major reason why DeFi has so much utility. ‍ Introduction It is easy to understand why decentralized finance (DeFi) is experiencing a great boom. The advantages[Read more…]

Cryptonomics: Network Effect Explained

The greater the number of users of a particular product, the more value it tends to attain. This is due to the “Network Effect” concept, which heavily affects the value of projects in cryptocurrency. ‍ Introduction Across the modern financial landscape,  the adoption of cryptocurrency is rising rapidly. With over 4000 cryptocurrencies available at this[Read more…]

Cryptonomics: Smart Contracts Explained

The most significant adoption will be mainstream businesses using smart contracts for daily use. Imagine going to the car dealership with no wallet, no paper bills, and only your mobile device to sign agreements using smart contracts. ‍ Abstract Following closely in the success and widespread adoption of blockchain technology and cryptocurrency are smart contracts’. [Read more…]

Cryptonomics: What Is Impermanent Loss?

Impermanent loss (IL) is a loss of funds that a user will incur when they provide liquidity on Automated Market Making (AMM) exchanges. AMM’s utilize an algorithm and game theory to generate liquidity, in turn, creating IL through the arbitrage opportunities presented. ‍ AMMs, DEXS and Impermanent Loss As Decentralized Finance (De-Fi) has experienced a[Read more…]

Cryptonomics: Yield Farming Explained

Yield farming refers to a blockchain protocol that incentives users with some holding of crypto assets to ‘lock-up’ those holdings with a custodian(the protocol). Introduction The concept of Yield Farming surely creates an imagination of agricultural activity to any mind new to cryptocurrency and the blockchain space. While yield farming may sound a bit obscure,[Read more…]

Cryptonomics: Decentralized Exchanges Explained

Decentralized exchanges (DEX) leverage block-chain technology; instead of relying on a centralized entity, a network of computers is used to complete and verify transactions. ‍ Exchanges Exchanges have been utilized since the inception of cryptocurrencies to facilitate transactions. Exchanges play a role similar to modern-day brokers, matching buyers and sellers user order books. These are[Read more…]