The 7th International Conference on Digital Arts, Media and Technology (DAMT)

and 5th ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (NCON)

Financial Technology DeFi Protocol: A Review

Chaimade Busayatananphon Ekkarat Boonchieng
Department of Computer Science Department of Computer Science
2022 Joint International Conference on Digital Arts, Media and Technology with ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (ECTI DAMT & NCON) |

Faculty of Science, Chiang Mai University Faculty of Science, Chiang Mai University
Chiang Mai, Thailand Chiang Mai, Thailand
Email: therabbittech@gmail.com Email: ekkarat.boonchieng@gmail.com
(Corresponding Author)

Abstract— DeFi or Decentralized Finance is a new type of Smart Contract is a set of computer instructions or
financial application that does not require an intermediary. programs that can execute by itself when certain conditions
Banks or financial institutions. DeFi is built on Blockchain are met. When applied to Blockchain, it is notable for its
technology that stores DeFi transaction data or “decentralized security, transparency and reliability. Thus, unlocking new
finance” and aims to create financial services that are open to capabilities for Blockchain from trading, fundraising,
all. The DeFi platform can operate by itself without any control identity verification, and many other qualities that human
and is called “Smart Contract.” It is widely used as an imagination can create. A world where every asset in the
infrastructure for developers. Decentralized Applications world is digital, be it gold, oil, stocks, land or anything you
(Dapps), which is the purpose of this research aims to study the
can't imagine becoming an asset. These are not just things
operating system and capabilities of each platform. The
creators of Etheruem, in addition to Vitalik Bulletin, are also
that can be traded, but they can do much more than that.
other founding members who co-founded Ethereum, some of In the future, we may use the land to buy things, exchange
them have branched out to create their own networks, such as the lease for gold, take gold or even stocks as collateral for
Gavin Woord who spun off to create Polkadot (DOT), or borrowing. This may be a picture that many people think is
Charles Hoskinson who spun out to create Cardano (ADA), far away. But this is a concept in the digital asset endpoint
and Fabian Vogelsteller who spun out to create Lukso (LYXe), and it also works without middlemen. DeFi (Decentralized
etc. All three networks are proof-of-stake blockchains, unlike Finance) is one of the influencing factors that make this
Ethereum, which is Proof-of-Work and Proof-of-Stake system concept feasible. DeFi or Decentralized Finance is that. Born
which can do higher processing speed Proof-of-Work. It saves from the merging of the Ethereum Developer community on
a lot of energy, and instead of having each computer compete projects such as MakerDao, Kybernetwork Compound and
with each other to solve the equation in exchange for others, it discusses the idea of building a centralized financial
permission to verify transactions, Proof-of-Stake. The system. That can do what the current financial system or
reviewers are randomly selected by the system with higher banks do. Whether Create assets, borrow, guarantee, transfer
processing speeds than Ethereum. These networks are called assets, among other things that the current financial system
third-generation Blockchain Ethereum. It is about to have a can do. This may include money markets, assets or even
major update called “Ethereum 2.0” that will change the stocks. In fact, if we look at money transfers, Bitcoin is a
network to Proof-of-Stake including modifying various systems type of DeFi that can create a system that can create value
to make it easier to use for the general public. This update is
for coins, provide safety and the ability to transfer assets
expected to take effect in the year 2022.
without intermediaries, but Bitcoin is only DeFi's Proof of
978-1-6654-9510-3/22/$31.00 ©2022 IEEE | DOI: 10.1109/ECTIDAMTNCON53731.2022.9720373

Keywords—DeFi Protocol, Smart Contract, Centralized concept for non-intermediary transactions. Because in terms
Exchange, Binance, Ethereum Virtual, Proof-of-work, Proof-of- of use, it is very limited. We can't even write complicated
stake, Staking, Market Capitalization Decentralized Application, instructions in Bitcoin with the concept of Cryptocurrency.
EcoSystem, Liquidity Pool, Liquidity Mining Ethereum was born with the concept of Programable Money.
With Ethereum, developers were able to create complex
orders that were previously in the financial system. Ethereum
I. INTRODUCTION
has become the underlying platform that gives rise to the
concept of Smart Contracts, which are smart contracts that
will work properly, forming decentralized applications like
Daap, and building on to DeFi. Below is a comparison of
DeFi. VS Cryptocurrency.
The decentralized exchange is another important one
because it is a protocol or market where all assets can be
exchanged without any middleman. It is called Decentralized
Exchange or DEX. We usually use a regular exchange.
Those systems are run on a server client that is handled by a
Fig. 1. The Total Value Locked (TVL) on Multiple Blockchain overview. caretaker as an intermediary. On the other hand, the concept
of Decentralized Exchange is based on Blockchain, the
exchange actually takes place on Blockchain, making it
safer. Decentralized Exchange is extremely secure to use
because the user has to control the private key by himself, for
example Dex such as Uniswap, Kyber, Kulap.

978-1-6654-9510-3/22/$31.00
Authorized licensed ©2022 FEDERAL
use limited to: UNIVERSIDADE IEEE DE MINAS GERAIS.267
Downloaded on June 27,2024 at 17:56:09 UTC from IEEE Xplore. Restrictions apply.
 The 7th International Conference on Digital Arts, Media and Technology (DAMT)
and 5th ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (NCON)

TABLE I: The Comparison between DeFi VS Cryptocurrency II. LITERATURE REVIEW

Cryptocurrency DeFi A. DeFi Protocol
• It is a 'financial system' that DeFi or Decentralized Finance is the newest financial
• A form of does not rely on application that does not require the intermediary (banks of
What is
digital asset in intermediaries. financial units). The DeFi is developed from Blockchain
it?
digital form (Decentralized Finance) so technology, its duties are storing the transaction data or
no one owns it. “Decentralized Finance” and also aim to provide financial
• Ethereum is the most services that are opened for everyone. [4]
popular DeFi Platform.
• Borrowing: Aave, B. Smart Contract
Bitcoin / Compound, Oasis The Smart Contract is a manually proceed with terms of
Samples Ethereum/ • Steaming Payment: Sablier agreement between buyers and sellers. It was written directly
Litecoin/ Ripple • Insurance: Nexus Mutual, in line of code and agreement contained therein throughout
Etherisc. the decentralized Blockchain networking. The action control
• Exchange: Kyber, Tote, code, transactions are traceable and irreversible. The smart
MakerDAO contracts allow for anonymous transactions and agreements
• An alternative between parties without the need for central powers, legal
to diversifying systems, or external enforcement mechanisms. [6]
investment
portfolios/excha • Easy access C. Centralized Exchange
nge between • New financial services. The Centralized Exchange acts as a third party between
digital assets. There are many types of buyers and sellers and all crypto transactions are made
Benefits • As an things that the real world through a centralized exchange. The Centralized Exchange is
/ alternative to can't do or can do but the more reliable than Coinbase, GDAX, Kraken and Gemini.
Advanta various financial cost is too high. Some previous items are some examples of centralized
ges services such as • Fast transaction cryptocurrency exchanges. [9]
investment/fundi • Reduce the problem of
ng. including errors caused by human D. Binance
transferring decision making. Binance is a crypto-currency trading platform that is not
money abroad only Bitcoin, but also hundreds of other cryptocurrencies.
• Fast With a wide range of services covering over 10 crypto
transaction ecosystems, as of Jan. 2018, Binance is the world's largest
• Customers must bear their cryptocurrency exchange center by trade volume. Binance
own risk. was founded by Changpeng Zhao, a system developer who
Cannot be used • Many systems are not started out as a Hithg Frequency Trading (HFT) computer
for legal stable. because it is in the program, originally based in China. But then moved out due
payments. experimental stage to Chinese regulations that increased regulation on crypto-
• Price and value • Scalability issues, currency coin improvements. Currently, Binance averages $2
volatility. especially with large volumes billion in trades per hour with 1,400,000 transactions per
• Issues with the of microtransactions. second and then there is a 24x7 service, that is, there is no
Notice reliability of the From the technical problems break at all.
issuer and the of Blockchain and the
stability of the connection between DeFi E. Ethereum Virtual
system. developed from different The Ethereum Virtual Machine (EVM) is a smart
• Problems of camps contract code that is executed on every computer in the user's
using in illegal • Liquidity is low/transaction network. Moreover, EVM is classified as “Turing complete”
transactions. is not very high compared to which has the ability to execute any program without
the same type of transactions worrying about the programming language used. In other
in the real world. words, programmers can create applications using the
programming language. that are easy to write, such as
Python and JavaScript. Another important feature of EVM is
that it provides greater security for programmers who use
unfamiliar programming languages while helping to ensure
they can function properly. Furthermore, EVM is not
classified as part of the Ethereum network, which makes it
extremely safe for smart contract testing and
development.[2]

F. Proof-of-work
Fig. 2. DeFi’s Growth and future trending.
Proof of work (proof of work) is a set of rules or
protocols set up by a group of developers of a particular coin.
Its main purpose was to prevent DDoS (distributed denial-of-

Authorized licensed use limited to: UNIVERSIDADE FEDERAL DE MINAS GERAIS.268

Downloaded on June 27,2024 at 17:56:09 UTC from IEEE Xplore. Restrictions apply.
 The 7th International Conference on Digital Arts, Media and Technology (DAMT)
and 5th ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (NCON)

service attack) attacks, or attacks where multiple computers outstanding stocks. Its official name is "market
send requests to attack servers. It was only in hopes that the capitalization", which is usually expressed in the currency in
server would work hard and crash the concept of Proof of which the company's shares are registered. The number can
work even before Bitcoin, but today's Proof of work. be derived by multiplying the number of shares outstanding
Probably the most intelligent and intelligent idea applied to with the current market value of one share. It will be an
Bitcoin was by Satoshi Nakamoto back in 2008, because it indicator of the overall size This can tell investors the
allows for trustless and distributed consensus (a trustless potential of the company, about the investment opportunities
system that uses the discretion of the cryptocurrency) a large in that company.[1]
number of people instead).[7]
J. Decentralized Application
G. Proof-of-stake Decentralized applications (DApps) is an application or
Proof of stake is another different method used to verify digital program that providing and working on Blockchain
transactions. It is still another algorithm. And the aim is still platform or Peer-to-Peer platform on computer system
the same as proof of work, but the process of reaching that instead of single computer. DApps (also known as “dapps”)
goal is different. The concept of proof of stake was invented it is outside the scope of a single control of DApps. It can be
at the Bitcointalk forum in 2011, but the world's first coin to built on Ethereum platform. This platform can be developed
use the cryptocurrencies. The algorithm, known as Peercoin, for variety purposes including gaming, financing and social
was introduced in 2012 and has since followed media. [5]
ShaodowCash, Nxt, BlackCoin, NuShares/NuBits, Qora and
Nav Coin. It is awarded through mining or solving equations K. EcoSystem
to verify the transaction and create that new block. In Proof Ecosystem refers to the relationship of living things in a
of stake, the creation of a new block is determined by the habitat somewhere. There are two types of relationships,
coin holder's “richness”. Also known as stake, there is no namely the relationship between living things and nonliving
block reward in proof of stake. Another difference is that things and between living things and living things
proof of stake coins are generated entirely from scratch. And themselves. by transferring energy and nutrients in that area
their number will never change, meaning that in the PoS to the environment which is the meaning that we know in
system there will be no reward for creating new blocks. ecology These two relationships related and occur at the
Therefore, stake holders receive a fee instead. This is no same time, have to depend on each other. It cannot be alone
different from mining, that's why in PoS, miners are called without being involved in the various elements, relationships
blacksmiths instead.[8] within that ecosystem. There is a balance by nature. Unless
there is something that interferes with the system causing
H. Staking various changes, but it can be adjusted to be the same, except
Staking is a form of transaction verification in the world in the event that the interference is causing serious changes
of cryptocurrencies. Cryptocurrency is simply referred to as that system can then be destroyed.[12]
“a method of verifying transactions by depositing a margin”.
First you need a coin or token with a Proof of Stake (or L. Liquidity Pool
Hybrid PoW & PoS) transaction verification scheme. The Liquidity Pool is a group of cryptocurrencies or tokens
world of crypto is currently trading at the lowest price ever. locked in smart contracts that used to facilitate for trading
(e.g. at the end of 2017) to 70–90% with such a horrible between assets on Decentralized Exchanges (DEXs) instead
price swing record. This has caused many people to express of the traditional marketplace of buyers and sellers. When we
anxiety about the risks and fluctuations in prices. Moreover, focus on many Decentralized Financial (DeFi), they use
since the beginning of 2018 until now, the price of the coin Automated Market Maker (AMM) which are automated
in the market has never jumped back to where it was. It can authorize for trading for digital assets through the use of
be said that it has entered the period of a bear market for a liquidity pools.[3]
while. As a result, traders or even mining rigs (PoW) have to
enter into tightening measures and increase investment
caution, especially mining rigs. Lately, we will see news of M. Liquidity Mining
major mines being closed for a long time. Both by not having Liquidity Mining also known as yield. It is a network
to bear the cost (electricity, equipment cost, mining engagement strategy that allows you to provide liquidity
maintenance cost) complacency to invest large sums of (capital) to the Decentralized Exchange (DEX) liquidity
money to expand the mining power during the peak price in pool. On the other hand, you will be rewarded from the
2017 and after that the price returned. The three-month liquidity pool. It depends on farm. The user may be awarded
streak has devastated many investors today, besides trading either the original token or token control of the protocol
for daily profits, “HODL holds the coin” by buying coins which allows you to vote and support the future of protocol.
when they start to fall. More staking without the huge [11]
investment of mining resources but can use the method to
buy coins according to the amount of stakes. You can also III. METHODOLOGY
take these coins or resources and sell them in the market
where the price may not deteriorate or fall like a rig mining The objectives of this study aim to study DeFi Protocol
machine.[10] including Ethereum, Binance Smart Chain, Solana, Pokadot,
Cadano, Tron, the differences have pros and cons and
benefits, to academics and how investors. The details of the
I. Market Capitalization structure and innovations are compared to the modern and
Market Capitalization, sometimes abbreviated as "Market safe low cost return liquidity and investor risks.
Cap", is the total market capitalization of a company's

Authorized licensed use limited to: UNIVERSIDADE FEDERAL DE MINAS GERAIS.269

Downloaded on June 27,2024 at 17:56:09 UTC from IEEE Xplore. Restrictions apply.
 The 7th International Conference on Digital Arts, Media and Technology (DAMT)
and 5th ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (NCON)

A. Delimitation
This research collected smart contract network data to
compare network transaction data, speed limitations, and
usage security and fees incurred during use including the
technology used on the network. - "DeFi or Decentralized
Finance It is a term for a new financial service system that is
believed to solve the problems of the current financial
system.”
By using Blockchain technology to help with various
functions in finance especially the transmission of value on
the Internet It uses the ability of Smart Contracts to be able Fig. 3. The Roadmap to Ethereum 2.0.
to pre-set rules. It operates on a public blockchain which can
be verified. And there is no need for intermediaries or
employees to manage when there are no intermediaries on B. Presentation
DeFi, giving customers full control over their money. There
is no middleman to check or judge. Every decision is made
based on the customer and the pre-defined conditions. These
are the key points that enable DeFi-based applications to
offer financial products at a lower cost and directly to their
customers, moreover, services based on blockchain
technology. It is also able to operate 24/7 and can work
instantly across the world that is Open Finance or truly open
finance without borders.
In summary, we can divide DeFi's main advantages in
using blockchain technology into three areas: decentralized, Fig. 4. Top-tier Blockchain Platform Comparison.
decentralized, and decentralized. (Decentralized) is an open
(Permissionless) and transparent. From the results of the Smart Contract comparison, the
results work quickly and to maintain efficiency, security
 Decentralization (Decentralized) Blockchain is a
must be given to Solana, a blockchain platform that solves
decentralized, secure system that does not store data
the problem of transaction speed and high fees with an
in one place. Safe from data manipulation, system
innovation known as Proof-of-History Explain beforehand
crashes, and most importantly, no one owns or has the
that the methods for verifying transactions on the blockchain
absolute power.
range from the schematic method. Proof-of-Work or how to
 Permissionless Blockchain is an open system that dig later it was developed into a form of Proof-of-Stake, or
allows people to join and access services via the staking, where blockchain users place crypto-currency coins
Internet 24 hours a day, no matter where in the world in the system to help confirm transactions and receive returns
they are. Just have internet. in that coin, but Solana has developed a new technology
called Proof-of-History It verifies and verifies transactions
 Transparency (Transparent) Blockchain is a using historical data, eliminating the need for people on the
transparent system because every transaction is stored platform or Node to verify the transaction. The work of
irrevocably, and can check. Solana is mixed, that is, the concept of Proof-of-Stake Joined
From the benefits mentioned, it is therefore not surprising in, therefore came out as a hybrid. with a form of transaction
that nowadays, not only start-ups are interested in blockchain that is a combination of Proof-of-History and Proof-of-Stake
technology. Financial companies around the world are The highlight of SOL is the higher transaction speed with the
researching and developing to make the most of blockchain ability to create a new block every 400ms, enabling SOL to
technology. Causing new financial innovations come out all support applications with speeds of up to 50,000
the time with the same goal of serving customers better in Transections/sec. Compared to other blockchain platforms,
lower cost. Solana is extremely fast and fee-based: Solana can handle
65,000 transactions per second, compared to only 15 of
Ethereum, the smart contract leader, is going to launch Ethereum, Polkadot and Tron with 1,000, Cardano with 270.
Ethereum 2.0. It is designed with security in mind. Most Solana's average transaction fee is $0.0015 per transaction,
proof of stake networks have a small set of validators which while Ethereum is $15 and Binance Smart Chain is $0.01.
makes the system more centralized and the security of the Solana currently has 15 billion transactions, while Ethereum
network decreases, but Ethereum. 2.0 requires a minimum of has been transacted. 1,070 million hits and 1.7 billion Tron
16,384 validators, making it more decentralized and hence hits. It's a very fast growing blockchain, making SOL tokens
more secure. more popular in trading with the SOL price since it opened in
August 2020. The first year was not so good, but since the
beginning of 2021 the price has continued to rise. with
returns from the beginning of 2021 to the present (May
2021). It has grown 2,720 %. Today, a large number of
blockchain project developers, especially DeFi, are turning to
Solana technology for its speed and low fees. You can study
Solana's basics at the official website at this link. It must be

Authorized licensed use limited to: UNIVERSIDADE FEDERAL DE MINAS GERAIS.270

Downloaded on June 27,2024 at 17:56:09 UTC from IEEE Xplore. Restrictions apply.
 The 7th International Conference on Digital Arts, Media and Technology (DAMT)
and 5th ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (NCON)

followed to see that Solana will step up to compete with D. How important is BNB to Binance chain?
those who were before. Can Ethereum, Polkadot, Cardano, At that time, the Binance chain also had Decentralized
Tron, and Binance Smart Chain become an alternative for Finance (DeFi), which was a trend that led Binance to
developers of the DeFi Protocol? develop the protocol, forming the Binance smart chain,
The creators of Etheruem, in addition to Vitalik Bulletin, making BNB an important digital currency. Originating from
are also other founding members who co-founded Ethereum, the Binance chain's network of exchanges, it can open up a
but some of them have branched out to create their own space for developers to design and build DeFi to be more
networks, such as Gavin Woord who spun off to create efficient than the Ethereum network's support and to be able
Polkadot (DOT). Or Charles Hoskinson split up to create to use it for other transactions. A wide variety of products
Cardano (ADA) and Fabian Vogelsteller branched out to and services for merchants and it's also a trading fee.
create Lukso (LYXe). Etheruem 2.0 nearing the 2022 update
time is expected to run faster than other networks.

Fig. 5. Thrift Savings Plan (TSP) of Blockchain Platforms VS VISA Fig. 6. Binance Coin time and Price Chart. [13]
and Paypal services. https://coinmarketcap.com/currencies/binance-coin/

The researchers opted for the Binance smart chain E. Binance smart chain and asset transfer across networks
network as it was designed to support all Dapps running on
the Ethereum network, a blockchain network that would Although the Binance smart chain is designed to be
enhance the digital currency industry. Investors who like similar to the Binance chain, it is actually considered an
DeFi must know the very popular Binance smart chain. As independent system. But because of the dual-chain
this is a new network developed from the Binance chain, the architecture, assets can be transferred between blockchains
origin of BNB currency for ultra-fast exchange. But since the easily and quickly. This allows users to experience a large
Binance chain is not compatible with many other programs, ecosystem that supports a wide range of transactions. Able to
BSC has made a difference in trading. Binance smart chain trade with no limits with a platform that can effectively
working process Creating a new block of Binance smart decentralize.
chain takes only 3 seconds, while participants staking
Binance coin will be used as a reviewer. If the block is F. Decentralization Leads to Good Flexibility of Binance
verified as valid the participant receives a transaction fee. Smart Chain
However, the key aspect of creating Binance coins is that Due to the flexibility of independent systems such as the
over time the Binance coin is coin burned. To reduce the Binance smart chain, multiple asset transfers can be made
number of coins, the purpose is to cause an imbalance of across the network. And even in the midst of the DeFi trend,
supply and demand and increase the value of the coin even there are many protocols developed on various BSC
more. platforms, including interconnection networks to how to
build services and many other assets.
C. Binance, A smart chain working processing
Note that the major Market Makers and many platforms
The advantages of Binance smart chain: are heavily decentralized trading on the BSC making it
 Supports all Ethereum functionality. today. Nearly 300 billion in transactions have been added. As
a result, the value of Binance coin soared.
 While BSC's transactions are more stable, faster, and
the fees are cheaper. G. Monitor Binance smart chain with PoSA
 Supports working across networks. Including the To make BSC a valid, verifiable system, a Proof of
opportunity to create more development channels in Staked Authority (PoSA) system is used. It supports short
DeFi. blockchain times and cheaper fees. The transaction and
confirmation that anyone can verify the authenticity of the
 With the Proof of Staked Authority system, Binance PoSA system by using the Binance Smart Chain Verification
smart chain won the BNB award for good Tool.
performance of the blockchain.
 Every user can create a unique address. represents the H. Transaction volume on BCS is growing more than
growth of the network. Ethereum
Binance smart chain is one platform with more and more
users every day. Observing the transaction volume of BSC,
there are more than 2 million transactions, and the major

Authorized licensed use limited to: UNIVERSIDADE FEDERAL DE MINAS GERAIS.271

Downloaded on June 27,2024 at 17:56:09 UTC from IEEE Xplore. Restrictions apply.
 The 7th International Conference on Digital Arts, Media and Technology (DAMT)
and 5th ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunications Engineering (NCON)

market makers and decentralized trading platforms on BSC ACKNOWLEDGMENT

are gaining in popularity. This study was studied by searching and summarize from
But even though BSC's transaction volume is growing, many sources about the FinTech and technologies.
however, BSC's fee rates are much cheaper than Ethereum.
REFERENCES
IV. CONCLUSIONS AND FUTURE [1] Admiralmarkets (2021) Market Capitalization. Updated Jan 14, 2021,
Accessed on December 9, 2021. [Online].
The origin of cliptocurrency. This is the foundation of Available:https://admiralmarkets.sc/th/education/articles/shares/mark
Defi. Starting in 2009, bitcion has emerged in several other et-capitalization-explained
cryptocurrencies such as Ethereum, litecion, and bitcoin [2] Bitkub Support (2021). Ethereum Virtual. Updated Aug 09, 2021,
cash. This group was the first wave of cryptocurrencies for Accessed on December 9, 2021. [Online].
financial transactions between each other and also use smart Available:https://support.bitkub.com/hc/th/articles/360004468671-
contract as Consensus Algorithm. อะไรคือ-Ethereum-Virtual-Machine-
[3] Cryptopedia Staff (2021) Liquidity Pool. Updated Dec 01, 2021
Subsequently, a system was developed providing financial Accessed on December 9, 2021. [Online]. Available: :
services with big clips through the work on smart contract https://www.gemini.com/cryptopedia/what-is-a-liquidity-pool-crypto-
market-liquidity
systems on the block chain system, resulting in financial [4] Gwyneth Iredale (2021). DeFi Protocol. Updated Sep 06, 2021,
transactions such as deposits, borrowings, and investments Accessed on December 9, 2021. [Online]. Available:
without intermediaries. This system is called DeFi, which https://101blockchains.com/top-defi-protocols/
everyone believes in smart contracts today, DeFi happening. [5] Jake Frankenfield (2021) Decentralized Application. Updated Nov
1. Lending 2. Stablecion and 3. Decentralized application. 16, 2021 Accessed on December9,2021.
[Online].Available:https://www.investopedia.com/terms/d/decentraliz
In the future DeFi believes that the new generation will ed-applications-dapps.asp
drive DeFi to grow and create financial innovation that is [6] Jake Frankenfield (2021). Smart Contract. Updated May 26, 2021,
controlled by using information technology to connect and Accessed on December 9, 2021. [Online] .Available:
https://www.investopedia.com/terms/s/smart-contracts.asp
Stay safe and grow for maximum benefit. [7] Jiraboon (2017). Proof-of-work. Updated Aug 13, 2017, Accessed on
December 9, 2021. [Online]. Available:
There are many other financial services or goods that are https://siamblockchain.com/2017/08/13/proof-of-work-vs-proof-of-
evolving in the world of DeFi. Cryptocurrencies and stake/
blockchains are not just representatives of money or value [8] Jiraboon (2017). Proof-of-stake. Updated Aug 13, 2017, Accessed on
but will come with a variety of financial services. Although, December 9, 2021. [Online]. Available:
most of them are still in their early stages and are limited in https://siamblockchain.com/2017/08/13/proof-of-work-vs-proof-of-
the world of people who are interested in cryptocurrencies stake/
[9] Kanan Arora (2021). Centralized Exchange. Updated Aug 06, 2021,
and studying how to use them in detail. There are still many Accessed on December 9, 2021. [Online].
risks and obstacles to making these financial services Available:https://www.analyticssteps.com/blogs/centralized-and-
available to the masses. decentralized-cryptocurrency-exchanges
[10] Minyarinn Chaotrakul (2019) Staking. Updated Nov 11, 2019,
From the reason above the benefit to be able to fix many Accessed on December 9, 2021. [Online].
problems in today's financial world. And the people in the Available:https://medium.com/bitkub/staking-and-cryptocurrency-
finance and technology industry around the world who are c762ff8daf5d
now actively devoting themselves to developing and [11] M Glenn Bonez Bona (2021), Liquidity Mining(2021) Updated May
10, 2021. Accessed on December 9, 2021.
delivering new financial innovations on DeFi make 2022 an [Online].Available:https://www.matrixswap.io/blog/what-is-liquidity-
exciting year for sure. Technology will change our way of mining
life faster and faster like we never thought before. Hopefully, [12] T. Treesirichot, “EcoSystem” Updated Aug 08, 2021. Accessed on
financial technology companies and developers will be able December9,2021.[Online].Available:https://
to use this article as a guideline for the benefit of society in www.bangkokbiznews.com/business/952903
[13] Binance Coin time and Price Chart. Accessed on
the future. December9,2021.[Online].Available:https://coinmarketcap.com/curre
ncies/binance-coin/

Authorized licensed use limited to: UNIVERSIDADE FEDERAL DE MINAS GERAIS.272

Downloaded on June 27,2024 at 17:56:09 UTC from IEEE Xplore. Restrictions apply.