This document discusses the composable primitives of decentralized finance (DeFi). It describes how various DeFi protocols can be combined in any order, including stablecoins, portfolios, derivatives, lending platforms, and more. Specific protocols are discussed for tokenization of assets like USD, EUR, BTC, and gold into stablecoins. Instant and complex rebalancing portfolio protocols are also covered. Finally, lending platforms that allow borrowing and leveraging assets through tokenized collateral are summarized. The document conveys that the modular and composable nature of DeFi allows for infinite combinations of financial applications on blockchain networks.

1. DeFi
Composition
Decentralised Finance is taking over the world 🚀 🚀 🚀
Anton Bukov, April 23 2020

2. DeFi Composable Primitives
Compose em in any possible order
• Stablecoins
• Portfolios
• Derivatives
• Payment streams
• Order books
• Liquidity AMM
• Aggregators
• Borrowing
• Leverage
• Lottery
Exchanges LendingTokenization

3. DeFi Composable Primitives
Compose em in any possible order
• Stablecoins
• Portfolios
• Derivatives
• Payment streams
• Order books
• Liquidity AMM
• Aggregators
• Borrowing
• Leverage
• Lottery
Exchanges LendingTokenization
I have separate presentation about DEXes

4. Tokenization: Stabletokens
Some are decentralized, some are not, some are even aggregators like BTC++
• USD: DAI, USDC, USDT, TUSD, sUSD, PAX, GUSD, USD++
• EUR: Augmint E-EUR, EURS, sEUR
• BTC: WBTC, sBTC, pBTC, tBTC, BTC++
• GOLD: DGX
• XXX: sXXX (by Synthetix)
Ethereum
Blockchain
Token
Bank Account

5. Tokenization: Stabletokens
Some are decentralized, some are not, some are even aggregators like BTC++
• USD: DAI, USDC, USDT, TUSD, sUSD, PAX, GUSD, USD++
• EUR: Augmint E-EUR, EURS, sEUR
• BTC: WBTC, sBTC, pBTC, tBTC, BTC++
• GOLD: DGX
• XXX: sXXX (by Synthetix)
Ethereum
Blockchain
Token Pegging
Smart
Contract
Collateral

6. Tokenization: Stabletokens
Some are decentralized, some are not, some are even aggregators like BTC++
• USD: DAI, USDC, USDT, TUSD, sUSD, PAX, GUSD, USD++
• EUR: Augmint E-EUR, EURS, sEUR
• BTC: WBTC, sBTC, pBTC, tBTC, BTC++
• GOLD: DGX
• XXX: sXXX (by Synthetix)
Ethereum
Blockchain
Token Pegging
Smart
Contract
Other
Blockchain
Collateral

7. Tokenization: Portfolios
Some are instant-rebalancing, some are implementing complex strategy
• Instant-rebalancing:
• Uniswap, Bancor, Balancer, Curve
• Complex rebalancing strategy:
• TokenSets, Melon
• Diversification:
• BTC++, USD++

8. Tokenization: Portfolios
Some are instant-rebalancing, some are implementing complex strategy
• Instant-rebalancing:
• Uniswap, Bancor, Balancer, Curve
• Complex rebalancing strategy:
• TokenSets, Melon
• Diversification:
• BTC++, USD++
~|~
BNT
ETH
~|~
BNT
DAI
~|~
BNT
MKR
ETH BNT
ETH
DAI
ETH
MKR
MKR
DAI
SNX
BNT
ETH
SNX
DAI
BNT
DAI
USDC USDT

9. Tokenization: Portfolios
Some are instant-rebalancing, some are implementing more complex strategy
• Instant-rebalancing:
• Uniswap, Bancor, Balancer, Curve
• Complex rebalancing strategy:
• TokenSets, Melon
• Diversification:
• BTC++, USD++
Ethereum
Blockchain
SNX
MKR
ETH
BNT
DAI

10. Lending: Compound,Fulcrum,Aave,dForce
Tokenized lending, where borrowers continuously pay liquidity providers
• Borrowing:
• Compound, Fulcrum, Aave, dForce
• Leverage:
• Fulcrum, iLeverage, 1x.ag
• Lottery:
• PoolTogether

11. Lending: Compound,Fulcrum,Aave,dForce
Tokenized lending, where borrowers continuously pay liquidity providers
• Borrowing:
• Compound, Fulcrum, Aave, dForce
• Leverage:
• Fulcrum, iLeverage, 1x.ag
• Lottery:
• PoolTogether
cDAI
DAI DAI
DAIDAI
DAI DAI
DAI
DAI
DAI
DAI DAI
DAIDAI
DAI DAI
cETH
ETH
ETHETH
ETH ETHETH
ETH
ETH
ETH
ETH

12. Lending: Compound,Fulcrum,Aave,dForce
Tokenized lending, where borrowers continuously pay liquidity providers
• Borrowing:
• Compound, Fulcrum, Aave, dForce
• Leverage:
• Fulcrum, iLeverage, 1x.ag
• Lottery:
• PoolTogether
Funds
Position
Debt
Collateral
—
Borrowed
+

13. Lending
Tokenized lending, where borrowers continuously pay liquidity providers
• Borrowing:
• Compound, Fulcrum, Aave, dForce
• Leverage:
• Fulcrum, iLeverage, 1x.ag
• Lottery:
• PoolTogether
Funds
Spins up funds to turn it into
difference between collateral
and debt
Funds
Collateral
Debt
—

14. Lending: Compound,Fulcrum,Aave,dForce
Tokenized lending, where borrowers continuously pay liquidity providers
• Borrowing:
• Compound, Fulcrum, Aave, dForce
• Leverage:
• Fulcrum, iLeverage, 1x.ag
• Lottery:
• PoolTogether
Participants
Funds
Collateral
Winner receive
overall interest
+

15. Attention!
Thanks for your attention!
Anton Bukov, @k06a
Co-Founder of 1inch.exchange