Understanding DeFi and Hover: A Beginner's Guide
Welcome to another insightful episode of "Web3 with Sam Kamani." In this 87th episode, we delve into the fascinating world of decentralized finance (DeFi) with our special guest, Vincent Wu. Vincent is a seasoned expert in the crypto space and is currently building a DeFi platform called Hover. We will explore the current state of DeFi, the concept of liquidity aggregators, and the unique offerings of Hover.
Vincent Wu's Journey into Crypto
Vincent's journey into crypto began in 2016, driven by curiosity about Bitcoin and Ethereum. His background in investment banking and his early involvement with ICO due diligence set the stage for his deep dive into the DeFi space. Vincent has worked with various liquidity protocols, centralized exchanges, and led institutional sales efforts at Crypto.com, which eventually led him to create Hover.
What is DeFi and a Liquidity Aggregator?
DeFi (Decentralized Finance): DeFi refers to financial systems built on blockchain technology that operate without central intermediaries. It offers services such as lending, borrowing, and trading using smart contracts.
Liquidity Aggregator: A liquidity aggregator sources liquidity from multiple exchanges to provide users with the best possible prices for buying or selling assets. This helps prevent price slippage, especially for large transactions.
Introducing Hover
Hover is a non-custodial liquidity market protocol that facilitates lending and borrowing on the Kava network, part of the Cosmos ecosystem. Unlike traditional financial systems, Hover operates without a central authority, providing users with greater control over their assets.
Key Features of Hover
- Lending and Borrowing: Users can lend their assets for interest or borrow assets by providing collateral.
- Cross-Chain Support: Hover aims to support multiple blockchain networks, enhancing interoperability.
- Unique Token Economics: Hover offers a distinct token economic model, including features like distributing a portion of protocol earnings back to token holders.
Why Choose Hover?
- Safety and Security: Hover's smart contracts are audited to ensure safety. The team has extensive experience in building secure protocols.
- Competitive APYs: Hover offers competitive annual percentage yields (APYs) by aggregating liquidity from various sources.
- User Incentives: Hover provides various incentives to users, such as token rewards, voting rights, and rebates on liquidations.
Challenges and Future Vision
Vincent highlights the challenges of growing Hover's ecosystem, particularly attracting both borrowers and suppliers. The team is focused on making DeFi more accessible by improving user experience and reducing friction in the onboarding process. The vision for Hover includes expanding cross-chain support and continuously enhancing the platform's features to benefit both retail and institutional users.
Hover is poised to make significant strides in the DeFi space, offering innovative solutions for lending and borrowing. As the DeFi landscape evolves, Hover aims to be at the forefront, providing users with secure, efficient, and rewarding financial services.
Connect with Us
You can connect with me, Sam Kamani, on social media or reach out directly. My DMs are open, and I’m always eager to engage with fellow innovators.
This episode covered the exciting development in the world of Web3.You can listen to it here .
Stay tuned for more episodes where we dive into the world of Web3. Thank you for your support and best of luck in building your startups and projects.
