Seasonal Tokens: A Case Study For Emergent Phenomena In Decentralized Finance
When Bitcoin first emerged on the scene, it was hailed as a new way to conduct transactions, after all, it eliminates the need for a middleman or central authority. With Bitcoin, parties can transact anonymously and efficiently in real-time.
Ethereum was next, ushering in virtual machines that enable applications to operate trustless. If you verify everything about a system independently, there isn’t a need for trust between parties. Both developments paved the way for decentralized finance, or DeFi, an entirely new sector of financial services.
DeFi leverages blockchain technology, the underpinnings of cryptocurrency, to provide financial services from lending to trading without intermediaries. Since DeFi splashed on the scene about a decade ago, it has become a big business. As of October 2024, the total value locked in DeFi platforms was around $81.2 billion.
With DeFi projects smart contracts automatically execute transactions based on the terms coded within. There is no need for financial institutions to connect a borrower with a lender, for example.
Seasonal Tokens Within DeFi
But DeFi doesn’t end there. In addition to the coded behavior of the smart contracts, platforms like Ethereum Virtual Machine enable environments where smart contracts can interact outside …
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