Episode 8: DeFi Dashboard with Zapper.fi

MikoBits Blockchain NFT and DeFi show

We speak with Nodar Janashia who is the CEO and founder of Zapper which simplifies Yield Farming.

So we discuss yield farming in DeFi with Nodar.

Ever since Compound Finance launched their governance token COMP

"If you don't understand where the yield is coming from in DeFi Yield Farming, it's coming from YOU"

Nodar's perspective is that different platforms offer different equations, borrowers pay yield and lenders get yield.

In the compound, the borrower pays yield... in Maker, you collateralize in order to get a loan, and you do pay interest. If you collateralize ETH and take out Dai the interest is zero, so you can be incentivized to convert. But to unlock you need to pay back with interest. In uniswap a liquidity provider gains fees from swappers. If you get liquidated you can pay 13% or more in fees. The liquidity provider or market maker gets some of the fees. Now you can combine these pieces to form Zaps in Zapper.

What makes Zapper special initially was providing assets to Uniswap as a market maker--you need equal worth assets--two piles. So if you come with just ETH you need to split it into two different piles. This creates user friction, so initially Zapper just made this into a single action. So these kinds of transactions can be made much easier.

Synthetix created the most popular uniswap V1 pool with their SNX token. Now there are a ton of them with Balancer and Curve as well.

Ultimately we want to give the power to the people to make their own combinations of transactions in DeFi. A DeFi "sandwich" maker or Zapper being a money lego set.

Resources

https://ethhub.io/

https://defirate.com/

https://bankless.substack.com/