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I think the 'Intro to Bankless' podcast is a really good way to start learning the nuances. There are many parts of the crypto community that are very welcoming

I think the 'Intro to Bankless' podcast is a really good way to start learning the nuances. There are many parts of the crypto community that are very welcoming to newbies. /r/EthFinance is one of the best. Crypto is indeed very complex. You have everything from AMMs to no-loss lotteries to Arweave perpetual endowments. I spend 10 hours a day in crypto finance and don't understand all of the nuances, so I can see how it might be intimidating. The best way to learn IMO is send a few dollars to Polygon to play with different protocols like Uniswap, Aave, PoolTogether, things like that.

WanderPanda 4y ago
What I never understood about crypto finance is how it shall replace tradfi when it can only offer overcollateralised loans?
- tornato7 4y ago
  It only offers overcollateralized "trustless" loans (ie instant with no credit check or KYC). However, KYC'd undercollateralized lending protocols are making some headway. The most popular one currently is called Maple, wherein delegates can perform credit checks on borrowers, and provide first-loss capital, while lenders can be you and me. One can imagine that a "crypto finance" mortgage would look similar to a traditional mortgage in that credit checks and property assessments are needed, however when on-chain it could be done with more transparency (and having just gone through the process I can tell you it is NOT transparent) - the biggest benefit would be borrowing money from a real pool of user capital as opposed to a bank, so real people can earn 7% APY on their money backed by a basket of home loans, with a very transparent middleman. Does that make sense?
pas 4y ago
that's mostly product churn. yes, definitely part of crypto, but people don't have to understand each and every new thing in crypto to understand crypto.
prirun 4y ago
> Crypto is indeed very complex... I spend 10 hours a day in crypto finance and don't understand all of the nuances Which is why it will never succeed in its current form.
- tornato7 4y ago
  Yes, because software engineers understand every nuance about operating systems and financial advisors understand every nuance of the global financial system... I'm making the point that it's extremely complicated and not to worry about knowing everything.

WanderPanda 4y ago

What I never understood about crypto finance is how it shall replace tradfi when it can only offer overcollateralised loans?

tornato7 4y ago
It only offers overcollateralized "trustless" loans (ie instant with no credit check or KYC). However, KYC'd undercollateralized lending protocols are making some headway. The most popular one currently is called Maple, wherein delegates can perform credit checks on borrowers, and provide first-loss capital, while lenders can be you and me. One can imagine that a "crypto finance" mortgage would look similar to a traditional mortgage in that credit checks and property assessments are needed, however when on-chain it could be done with more transparency (and having just gone through the process I can tell you it is NOT transparent) - the biggest benefit would be borrowing money from a real pool of user capital as opposed to a bank, so real people can earn 7% APY on their money backed by a basket of home loans, with a very transparent middleman. Does that make sense?

pas 4y ago

that's mostly product churn. yes, definitely part of crypto, but people don't have to understand each and every new thing in crypto to understand crypto.

prirun 4y ago

> Crypto is indeed very complex... I spend 10 hours a day in crypto finance and don't understand all of the nuances Which is why it will never succeed in its current form.

tornato7 4y ago
Yes, because software engineers understand every nuance about operating systems and financial advisors understand every nuance of the global financial system... I'm making the point that it's extremely complicated and not to worry about knowing everything.