Weave FAQ for new user

What is Weave?

Weave is creating the next generation of auto-compounding yield farming platforms. Our strategy builder will allow yield farmers to build their own custom strategies on their favorite pairs ( cross-chain as part of phase 2 roadmap) and set the yield to be harvested/compounded exactly as they want it. They may choose to compound only 50% of yield and withdraw 50% for example, or even take the yield in other crypto-assets they’re bullish on. Our drag and drop interface will make building strategies easy and even fun! We’re delivering an incredibly powerful set of tools unlike anything else that exists in DeFi currently. We also want to encourage huge numbers of new users to defi. We have the ability for strategies to be shared and copied by less experienced investors (similar to copy trading). Our team includes Youtubers and marketing experts who aim to help us get our platform out to the masses and attract people who may never have even purchased crypto before.

Why did Weave design each strategy as a unique smart contract?

If we do a vault for everyone to join, we will just be another project offer compounding service. We want to build a strategy that represents multiple projects ut we intend to do more. That's why we talk about strategies and not vaults here. A strategy represents multiple projects you interact with basically all your daily DeFi work in one place. If you are only invested in one project and don't intent to do more then yes weave might be an overkill for you. If you are investing in multiple projects it gets tricky to keep and overview of everything and taking profits from one project then investing it in another project. This is something which should be done automatically and not a tedious daily work. And this is what we intend to do we want you the user as much freedom as possible.

You want to compound one project? fine!

You don't want to compound 100% of your yield but take some profits automatically or move them to another project to invest there? well you are out of luck on traditional compounders but not here. Our end goal is even more ambitious because we want to allow the users to do all their work on multiple chains with one strategy on weave!

What is a blockchain

What is a blockchain? Blockchains are found on the internet. A blockchain is a public record of property ownership. Property recorded on blockchains are called “cryptocurrencies” or “crypto assets.” Using a blockchain you can verify who owns crypto assets. You can send money or perform other transactions on a blockchain. There are many blockchains. The first, and most commonly known is Bitcoin, but there are now many more, including Ethereum, Cardano, and Polygon. Each blockchain is an official record of the ownership of all the crypto assets on it. Blockchains try to be easily accessible and secure systems. They do this by keeping identical copies of the official record on many computers. This system of accounting is called a distributed ledger. There can be many thousands or more computers maintaining these records. The computers keeping the records are called the network. When all the computers agree it is called “consensus.” Consensus is what proves you own Bitcoin or other crypto assets. When all the computers in the Bitcoin network agree someone owns 1 Bitcoin, it proves that they own that Bitcoin. The owner can spend parts of the Bitcoin as they wish. That unit of Bitcoin cannot be faked or spent more than once by the owner. When you want to send money to someone else, you broadcast a transaction to the network. In exchange for a fee payment, the network will add your transaction to the permanent record. This transaction is added to a new transaction block. Each block is linked to all older blocks in the record. There is a continuous chain of transactions all the way back to the first transaction. This is where the name blockchain originates.

Same wallet address for different blockchain?

For EVM(Ethereum Virtual Machine) blockchain, the address all initiated with 0X in the beginning. You have one address in Ethereum network and the same address will exist in other EVM blockchain network under your control as well. The assets between different blockchain are different therefore needs to be bridged in order to go cross chain.

Example:

Your address can be 0x22334455667788 in Ethereum. You will have control on same 0x22334455667788 in BSC and Polygon and Avalanche and many other EVM compatible chains. The USDC you owned on Ethereum blockchain is only on your Ethereum network wallet 0x22334455667788. If you want to use your USDC on BSC, you will need to bridge your USDC(ERC20 format at Ethereum) into USDC(BEP20 format at BSC). In each blockchain, the gas token is different, you will need to have gas token in your wallet to proceed transactions.

What is Defi?

What is Defi? DeFi stands for Decentralized Finance. Decentralized Finance is a permissionless system for trading money and risk on the internet. Decentralized finance institutions are generally called “protocols.” Protocols enable the exchange of money, loans, tokens, and investments without middlemen. How does it accomplish this? Let’s break this down and explain how Finance andDecentralization can come together to create something with very exciting possibilities.

So first of all, What is Finance? Finance is defined as the transmission of money and risk. Banks are a great example. In exchange for giving a borrower a mortgage, they accept the credit risk of the individual. They exchange money now (the mortgage principal) in exchange for risk (future interest rate payments). Looking closely at the word risk, risk is defined in financial terms as the chance that an investment's actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment. Decentralized means DeFi reduces reliance on trusted third parties, such as banks. Instead, decentralized finance is built on top of smart contract blockchains. Blockchains follow publicly published rules and store redundant data so there is no possibility of double spending money. In DeFi, transactions generally occur between individual users and pools of investors. The pools of investors will function in some way like a financial entity, enabling trading or loans to occur. Defi is also permissionless. Permissionless means there are no barriers to entry built into the system. There is an equal treatment of everyone on the blockchain, as identity does not matter. While it is permissionless, it comes with significant transaction costs. Blockchains collect fees to process transactions, and defi protocols also collect fees for their services.

Why choose decentralized finance? Decentralized Finance generally offers users better rates and terms than traditional banks and brokerages. However, because it is the direct exchange of money and risk, risk is significantly higher in defi than in traditional finance. Transactions are generally irreversible and losses are permanent. Another reason to choose DeFi is because its accessible from anywhere with an internet connection. Opportunities are global. The returns and yields of Decentralized Finance can be high. This comes with the understanding that money is not free- it comes with the acceptance of risk. Users of DeFi become the banks and brokerages, claiming the big risks and big rewards for themselves. We hope you enjoyed this short explanation of what is defi.

What is stablecoins?

Stablecoins are special cryptocurrencies that are pegged to the value of another currency or commodity. The US dollar is the most popular stablecoin peg. You can also find Euros, Yen, gold, and other currency pegs. Stablecoins use different methods to maintain their value. They will all tend to fluctuate in value to some small degree. As a stablecoin user, you can send money to anyone else and expect to retain its value. You can also invest them and use them as a unit of account. Not all stablecoins are equally risky. Smaller stablecoins (especially algorithmic stablecoins) often behave more like ponzi schemes than true stablecoins. Small or unusual stablecoins should be avoided by beginners. Stablecoins rely on other blockchains to maintain accurate transaction ledgers and security. They require a separate coin such as Bitcoin or Ether for the purposes of enabling transactions and paying fees. Typically to use a stablecoin, you need to buy it on an exchange and then also buy the same network coin, such as Bitcoin, Ether, or Terra, to pay the sending fees to your wallet or someone else’s wallet. Many exchanges now enable paying fees in stablecoins themselves. Stablecoins are cross-chain tokens meaning they are not tied to a particular blockchain and operate on several at the same time. The largest stablecoins by market capitalization are Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Maker DAI, Terra USD (USD), and Magic Internet Money (MIM). The blockchain with the most stablecoins on it is Ethereum, which functions as somewhat of a hub for multiple chains.