DeFi needs message notifications. Explore how the notification protocol EPNS can improve the DeFi experience

Today, let’s explore the need for DeFi message notifications!

DeFi, or decentralized finance, has been one of the biggest buzzwords in the crypto space. Since the launch of Bitcoin 11 years ago, Ethereum has become one of the leading platforms for the next step in financial technology, as most DeFi applications are built on top of it.

While DeFi’s influence continues to grow, we’ve seen the difficulties that regular DeFi users and even dedicated yield farming miners face in designing ways to keep track of what’s happening and get real-time alerts and information when important events occur.

This article will explore how decentralized notifications can enhance the overall experience of DeFi. Someone said: "Sometimes you don't realize how much you need something until you really get it."

To give you an idea of ​​what we mean, here are the 13 DeFi notifications that Ethereum needs today:

Buy lottery tickets on PoolTogether

PoolTogether is a no-loss Defi Savings Lottery that draws prizes every 7 days. Currently, there is no other way to know if you won the prize in this week's draw unless you log in to the dApp again.

If you win the lottery after the draw, notifications can remind you, so you can say goodbye to your inner cheapskate and enjoy the joy of becoming rich!

C-Ratio and Liquidated Damages

The C-ratio, or collateralization ratio is the ratio between your collateral assets and any outstanding loans you have. In DeFi, collateralized lending is the basis of open lending protocols.

When you take out a loan, there is an agreed penalty, and if your collateral ratio falls below the allowed ratio, your assets will be liquidated. To avoid this, as a user, you also want to be notified when the collateral ratio starts to drop significantly so that your assets can be avoided from being liquidated.

Recently, Synthetix.io changed its collateralization penalties to below 200% collateralization ratio. This means that if you are staking on synthetix.io and your collateralization ratio drops below 200%, your assets will be liquidated.

This is important information that not only Synthetix needs to know, but anyone involved in the protocol needs to know. But we can’t expect a user to constantly monitor the website and get updates on important things like this. Notifications can help solve this problem by notifying users when something like this happens.

Enhance and fix CDP from DefiSaver

CDP means Collateralized Debt Position. In layman's terms, it means you use assets as collateral and then use the collateral to obtain a loan or debt.

With DefiSaver you can raise or pay off your CDP in the standard way or through a flash loan. Flash loans allow for the settlement of a CDP in one transaction.

If you choose to repay or increase your CDP, you will want to be notified after the transaction is completed and understand the CDP position. Therefore, notification is particularly important.

When Yearn launches the new yVaul

Vaults use strategies to automate the highest-yielding available liquidity mining opportunities.

They are designed so that the community can work together to develop new strategies that can yield the highest returns. Currently, all machine gun pools are developed by the original creators of yearn.finance, but in the future users will be able to submit their own strategies to compete with the machine gun pools to see who can come up with the best strategy.

If you want to increase your returns and want to keep track of new staking pools listed on Yearn Finance, notifications can help you do that. Notifications enable you to understand what options are available to you and decide where to use your assets.

Yearn Finance even recently started a weekly column on the Medium website called "Yearn Machine Gun Pool Status" - the column is updated weekly and includes yvault-related updates from the previous week, as well as more in-depth information about yVaults, such as current vault strategies.

By pushing updates such as weekly APY, current vault strategy, etc., Yearn can ensure that all users "stay in the game" through decentralized notifications.

When Loopring lists a new trading pair

Loopring is a decentralized trading protocol based on Ethereum that allows users to exchange assets across various exchanges. It enables anyone to build high-throughput, non-custodial, order-book-based transactions on Ethereum using zero-knowledge proofs.

Currently, LoopRing publishes news of new trading pairs going live on Medium. This is clearly not an efficient way to deliver information. Wouldn’t it be more convenient to be notified when a new trading pair is listed?

$MEME NFT: Your Daily Pineapple???

$MEME is an experimental protocol that fuses some of the most exciting innovations in DeFi and crypto collectibles. With Meme, you can stake tokens to farm limited edition NFTs, bringing accessible DeFi to the community.

You can stake 1–5 MEME tokens, and you will receive a certain percentage of pineapples every day. (If you stake 1 MEME, you will receive 1 pineapple every day, and if you stake 5 MEME, you will receive 5 pineapples every day).

Don't Buy MEME

Decentralized Notifications will notify you when your well-earned Pineapples arrive in your wallet!

$MEME NFT: When you have enough pineapples to buy NFTs

Next, when you get a certain number of pineapples from your daily rewards, you can buy NFTs. The price will vary depending on the type of NFT offered (commemorative, common, rare, legendary). It ranges from 1 PNPL (for commemorative NFTs) to 75 PNPL (for legendary NFTs).

With notifications, you will be notified when you are eligible to purchase different types of NFTs at their prices. This can also be extended to notify when new artists join the protocol and a new pool is launched to create new crypto collectibles, thus increasing excitement and heat. For example,

“ARIST DROP 0 — SVEN: The Meme team is proud to announce our first exclusive digital artist show with Sven Eberwein. Earn enough PNPL to get new and exclusive MEME x SVEN crypto collectibles.”

Uniswap adds a new token list

Uniswap is a decentralized trading platform built on Ethereum. It automatically implements liquidity and allows you to exchange between different ERC20 tokens. The token list on Uniswap is essentially just a list provided by different projects that contain different ERC20 tokens, and the reputation of these tokens is supported by the reputation of the projects that list them. This is done to minimize air coins and distinguish high-quality and legitimate ERC20 tokens, because air coins have become an obstacle to the expansion of the Defi community.

With notifications, you will be alerted when a new token listing is added to Uniswap, allowing users to check out the new tokens and research if there are any tokens on the list that might catch their attention for investment.

On-chain governance voting period

As discussed in our On-Chain Governance article, governance is an area where notifications are in great demand.

EPNS on-chain governance

What if you run a Defi-based service, if your service has an on-chain governance model, and you want to notify users to vote on really important or urgent proposals that will determine the future of the protocol in the near future? What if your protocol is threatened due to a bug, and you want to expand your user base as much as possible to reach the agreed number of people to vote on the bug fix proposal as soon as possible? Or maybe you want to understand the general preferences of token holders through "signaling" before actually letting users vote to ensure that no forks occur?

Decentralized notifications are critical in this context and demonstrate why protocols must choose a more efficient communication medium for governance-related matters than what is currently available (Twitter, Medium, Telegram, etc.).

DEX limit orders

When buying or selling tokens on a DEX, there are two main methods to determine the trade price, market orders and limit orders. With a market order, you can trade a token at any price up to the current market price. With a limit order, you can list your preferred price, and the trade will usually be executed if the token price reaches your target.

If you have placed a price as a limit order, notifications will allow you to be notified as soon as the trade is executed. This ensures that you do not need to constantly check your wallet to see if the trade has gone through.

GAS Price Tracker

One of the main issues plaguing Ethereum today is its high GAS cost. Sometimes, GAS can be ridiculously high, so during these peaks, users simply don’t want to buy or sell on the platform. As a DeFi enthusiast, you might want to know when GAS goes up or down. This way, you can decide whether to transfer and remit funds, etc. while maximizing your returns. With decentralized notifications from EPNS, this is entirely possible, and you will be notified when GAS reaches a peak or drops below a peak, allowing you to make better decisions about what to do with your assets.

Also, keep an eye out for EPNS's upcoming GAS price tracker channel!!

Exit the game at Layer 2

Current Layer 2 is built on top of Ethereum to facilitate scalability and faster throughput on the chain. For example, the basic principle of some Layer 2 solutions is that any transaction on the Layer 2 protocol is real within a certain time frame until it is proven otherwise by the verifier. However, during this verification period, these transactions are not yet stored on the Ethereum mainnet. Only after this time frame is the entire transaction sent to the mainnet and not permanently stored on the blockchain, which is called the end game or exit game of Layer 2.

The idea behind this is that DeFi protocols can leverage Layer 2 functionality to increase their throughput, thereby enhancing scalability. However, the time interval between exits for such Layer 2 solutions often takes several days, or even up to a week.

With notifications, users can be notified when they have successfully exited the game so that their transactions can be finally confirmed on the chain.

Preventing the risk of losing funds in AMM

Rug Pulls or exit scams are one of the biggest problems in Defi right now. Many people have been swearing at unsuspecting newbie crypto enthusiasts while promising them huge ROIs, and then running away with the money when “the time is right” and when other liquidity providers least expect it.

A novel solution implemented by BUILD Finance is to set a 2-day grace period from the time the token is issued to the time the token enters the AMM (Automated Market Maker). Subsequently, when the token is generated, the LPs (Liquidity Providers) are notified through decentralized notifications (such as EPNS). Therefore, if LPs see someone trying to run away under their noses, they can sell their tokens, thus giving up their idea!

The need for notifications can be applied to many different areas and has a lot of practicality that people may not imagine. The above notification utilities in DeFi are just the beginning. As the DeFi space expands rapidly, notifications that help users keep track of everything will become more important. EPNS does just that, allowing you to receive notifications in the most decentralized way and adhere to everything DeFi stands for.

Distributed Notifications of EPNS

EPNS (Ethereum Push Notification Service) is a decentralized notification protocol that allows users (wallet addresses) to receive notifications. Using this protocol, any dApp, service, or smart contract can send notifications to users in a platform-independent way (mobile device, tablet, web, user wallet, etc.). DeFi protocols ensure that users receive notifications and profit from them.

With EPNS, we can be sure that DeFi will receive the timely notifications it absolutely needs.

EPNS is the hero we need and deserve to be praised in DeFi.

Source link: medium.com