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What is Decred software (What does Decred mean)?

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Decred is an open-source software, according to official sources, that allows u

What is Decred software (What does Decred mean)?

Decred is an open-source software, according to official sources, that allows users to manage their cryptocurrencies in a very simple way. It is a decentralized trading platform based on Bitcoin, which provides liquidity pools for cryptocurrency providers to obtain high returns.

DECRED is an Automated Market Maker (AMM) protocol that allows anyone to create and deploy smart contracts to manage their own cryptocurrency portfolios and assets. With the help of this platform, it is possible to implement leveraged long/short strategies for cryptocurrency assets.

What does Decred mean?

Editor’s Note: This article is from the “Orange Book” (ID: chengpishu), author: degen, reprinted with authorization from Odaily Planet Daily.

During the DeFi boom in December 2017, a project called Decred began to attract attention in the market. The bull market in 2017 made the decentralized finance field more active, attracting more developers to enter this industry. With the development of the DeFi ecosystem this year, “Decentralized Finance” has once again become a popular term. From Ethereum, Bitcoin, Tron, and other blockchain projects to the recently popular stablecoin platform Dex, they have gradually become familiar and understood by people. At the end of 2018, after the DeFi protocol Compound launched its governance token COMP, the DeFi market experienced explosive growth. At the end of 2017, due to large market fluctuations, a large amount of funds flowed into this field for investment, and Dex gained recognition and support from a large number of users as soon as it went online. However, since last summer, after Dex’s total locked position exceeded $5 billion, the overall DeFi market has been sluggish, and some investors have suffered heavy losses. Therefore, the popularity of DeFi liquidity mining has continued to decline.

So what is Decred? It is a decentralized lending service based on blockchain technology. Users deposit cryptocurrencies into smart contracts as collateral and then borrow other digital currencies to purchase the value of a specific virtual commodity or service (such as stocks). According to DeFiPulse data, as of the end of 2018, the total locked assets on DeX platforms reached $13.56 billion, accounting for more than 80% of the entire DeFi field; the total value of locked assets exceeded $3 billion. This means that the DeFi market is gradually moving towards a “bankless” state, where no one can directly deposit or lend money to anyone else. Currently, there are mainly three products in the DeFi market:

1. MakerDAO, which is a decentralized company powered by a decentralized autonomous organization (DAO) on the Ethereum network. DAI is issued by Compound and adopts a fully automated oracle solution that helps users generate price prediction models (such as ETH’s price);

2. Curve, which is an automated market-making mechanism based on the Ethereum blockchain, allowing users to hedge risks and earn fees through automated market makers (AMM);

3. Uniswap, an upgraded version of UniswapV2, aims to facilitate exchanges between decentralized exchanges;

4. Kyber Network is an infrastructure for building decentralized applications that allows the use of trusted third parties for asset exchanges.

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