Blockchain: Is it a hype or a hoax?  17

• Augur: Augur is a decentralised prediction market protocol. It pro-

vides the functionality to vote on the outcome of events by attaching

a monetary value to your vote.

Website: https://augur.net

• PoolTogether: PoolTogether is a platform where participant deposit

stablecoin into a common pool. At the end of each month, one lucky

participant wins all the interest earned on that cryptocurrency pool and

everyone gets their initial deposits back. It is a no-loss game platform.

Website: https://pooltogether.com

Use cases of DeFi

Asset management

Through the use of crypto wallets like Metamask, you own your own data

and custody of the digital assets. You can interact with various decentral-

ised applications to carry out transactions like buying, selling and transfer-

ring crypto to earn interest on your digital assets.

Compliance and Know Your Transactions (KYTs)

In the traditional financial ecosystem, there is a requirement to know your

customer (KYC) to comply with anti-money laundering (AML) and counter

the financing of terrorism. In the DeFi space, Ethereum decentralised tech-

nology enables compliance analysis around participants’ wallet addresses

rather than participant identity. This compliance of transaction (KYT)

mechanism helps compliance against fraud and financial crimes in real time.

DAOs

DAO stands for a decentralised autonomous organisation that cooperates

according to transparent rules within Ethereum blockchain technology. It

eliminates the need for a centralised administrative entity. Products like

Maker and Compound have launched DAOs to fundraise, manage financial

operations and decentralise governance to the community.

Data and analytics

DeFi offers a great range of transparency around data and network activity.

DeFi protocols offer great advantages for data discovery, analysis and decision-

making around financial opportunity and risk management. DeFi Pulse and

Codefi Data are a few examples of applications that help users to unlock the

value of DeFi protocols, assess platform risk and compare yield and liquidity.