Summary

Summarising Decentralised Finance
Now we have seen some of the opportunities and potential of Decentralised Finance (Defi). Some of those opportunities are the applications of traditional banking services like borrowing and lending; with all the advantages of smart contracts operating on the blockchain. We have also seen  some Defi projects like Terra which proves that Defi is not totally risk free. However we can now use the knowledge we have gained from these now seemingly fraudulent projects and be more cynical with future Defi projects. We have also seen how Scallop is planning to integrate Defi into its ecosystem. 
Here are some question about Defi:
Question 1:  In the AAVE protocol, what safeguard is in place to protect the lender?
 All loans are over-collateralised, so the is no incentive to default the loan.
Question 2: what is meant by the term Money Lego's?
The equivalent tokens of your collateral that can be freely moved, traded and used on other dApps
Question 3: How does the Real estate assets lend themselves to tokenisation?
Real estate assets tend to be relatively secure investments. Usually significant sums are required to invest. Real estate assets are easily comparable  and they are famously illiquid investment. All these factors of real estate lend themselves to tokenisation.
Question 4: Where would you swap BTC to WBTC?
You can swap them on protocols that are WBTC partners like Coinlist, Poloniex and Deversifi.
Question 5: Why did some people believe that Terra was a Ponzi scheme?
Terra is a blockchain protocol supported by algorithmic stablecoins (TerraUSD or UST). This is pegged against another stablecoin LUNA. Terra used these coins to promise a rate of return of 20% annually for your investment; which a very high rate of return in a stable ecosystem.
Question 6:  why does the Ethereum blockchain support Defi whereas the Bitcoin does not?
The Ethereum network allows smart contracts and dApps to operate on its blockchain which creates its own ecosystem in other words Decentralised Finance (Defi). In comparison the Bitcoin network does not support these services.
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Last modified 1mo ago