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Data Science for Web3

You're reading from  Data Science for Web3

Product type Book
Published in Dec 2023
Publisher Packt
ISBN-13 9781837637546
Pages 344 pages
Edition 1st Edition
Languages
Author (1):
Gabriela Castillo Areco Gabriela Castillo Areco
Profile icon Gabriela Castillo Areco

Table of Contents (23) Chapters

Preface 1. Part 1 Web3 Data Analysis Basics
2. Chapter 1: Where Data and Web3 Meet 3. Chapter 2: Working with On-Chain Data 4. Chapter 3: Working with Off-Chain Data 5. Chapter 4: Exploring the Digital Uniqueness of NFTs – Games, Art, and Identity 6. Chapter 5: Exploring Analytics on DeFi 7. Part 2 Web3 Machine Learning Cases
8. Chapter 6: Preparing and Exploring Our Data 9. Chapter 7: A Primer on Machine Learning and Deep Learning 10. Chapter 8: Sentiment Analysis – NLP and Crypto News 11. Chapter 9: Generative Art for NFTs 12. Chapter 10: A Primer on Security and Fraud Detection 13. Chapter 11: Price Prediction with Time Series 14. Chapter 12: Marketing Discovery with Graphs 15. Part 3 Appendix
16. Chapter 13: Building Experience with Crypto Data – BUIDL 17. Chapter 14: Interviews with Web3 Data Leaders 18. Index 19. Other Books You May Enjoy Appendix 1
1. Appendix 2
2. Appendix 3

Lending and borrowing services on Web3

The bank receives deposits, saves part of them to be able to repay in case the owner wants the cash back, and offers the other part as a loan in the market at a certain interest rate. The loan can be collateralized or non-collateralized, depending on the risk of the loan taker. The interest rate is set high enough to generate revenue for the bank and the depositor. Certain protocols on-chain reproduce a similar mechanism, as we will describe in this section.

At the time of writing, the main lending and borrowing protocols only work with collateralized loans. The process resembles a mortgage where the user provides the house as collateral as insurance for the loan payment. If the loan is not repaid in full, the bank keeps the house. In this case, if the collateral ratio of the loan is not maintained, the protocol liquidates the collateral.

Let’s imagine that Alice wants to invest in a project in USD stablecoin but her collateral is...

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