Category: Learn
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What is Ethereum Virtual Machine (EVM)?
In the ever-evolving landscape of cryptocurrency and blockchain technology, the Ethereum Virtual Machine stands as a pivotal and transformative component. It plays a crucial role in enabling the execution of smart contracts, which have redefined how decentralized applications (DApps) operate on the Ethereum blockchain. The EVM operates on a stack-based architecture, meticulously executing code generated…
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What is DeFi 2.0?
The world of finance is undergoing a transformative revolution, and at its forefront is DeFi 2.0, redefining banking as we know it. Decentralized Finance (DeFi) emerged as a disruptive force in 2020, challenging traditional banking with its promise of transparency, immutability, and the elimination of trusted intermediaries. Now, with the advent of DeFi 2.0, we…
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DeFi Risks: Smart Contract-Based Risks
The world of Decentralized Finance (DeFi) has revolutionized traditional financial systems by leveraging smart contracts on blockchain technology. However, with innovation comes inherent risks. In this exploration of DeFi risks, we delve into the technical vulnerabilities of smart contracts, highlighting their non-legally binding nature and the potential for irreversible consequences. We examine historical exploits that…
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What is Automated Market Maker (AMM)?
Automated Market Maker , as known as AMM, is the basic algorithmic behind decentralized exchange for all crypto users to buy and sell digital assets in DeFi. This algorithm is built to replace a traditional order book in which your order will match only if you have the otherside order at the same price and…
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DeFi Risks: Operational Risks from Blockchains
DeFi apps depend on public blockchains to execute transactions and resolve contracts. Ethereum is currently the most popular base layer for DeFi, with approximately $46 billion in collateral used in its smart contracts. Other blockchains are also hosting DeFi apps and attempting to compete with Ethereum. However, the smooth operation of these apps relies on…
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What is MACD (Moving Average Convergence Divergence)?
MACD (Moving Average Convergence Divergence) is a renowned and widely used technical indicator in the world of trading and investing. Developed by Gerald Appel in the late 1970s, MACD has maintained its popularity for decades, offering valuable insights into market trends and potential trading opportunities. In this article, FWX will delve into the intricacies of…
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DeFi Risks : Governance and Regulatory Risks
Decentralized Finance (DeFi) has ushered in a new era of financial innovation, promising greater accessibility and autonomy for users. However, as the DeFi ecosystem grows in complexity and scale, so do the associated risks. In this second part of our series on DeFi Risks, we delve into two critical aspects: Governance and Regulatory Risks. These…
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DeFi Risks: Paradox of DeFi
Decentralized Finance (DeFi) does come with its own set of challenges. Despite the promise of interoperability, DeFi has resulted in a concentration of nearly all projects on the Ethereum blockchain, introducing a new type of concentration risk. In the pursuit of removing human involvement and automating processes, new risks have arisen or existing ones have…
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Derivative Trading: Understanding the Basics and Beyond
Derivative trading is a complex financial instrument that has been around for centuries. It is a type of trading that involves the buying and selling of financial contracts that derive their value from an underlying asset such as stocks, bonds, or commodities. Despite its long history, derivative trading remains a mystery to many people, and…
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What is the Automated Position Hedger (APH) protocol?
Automated Position Hedger (APH) is the protocol behind the FWX DeFi platform which tries to increase real demand in Lending-Borrowing service. This APH protocol will work with 2 services : Derivatives Exchange and Lending-Borrowing by acting as counterparty to instantly match every user’s orders in Perpetual Futures with borrowing assets in the platform’s pools to…