# Onboarding Guide ### 1. DeFi Guide for Beginners * DeFi (Decentralized Finance) means exactly that: finance without centralized control. * It is a new type of Web3 ecosystem where anyone can freely participate. * It is designed to allow anyone to freely access on-chain asset services based on blockchain networks and smart contracts, without going through centralized institutions (like traditional exchanges). ### 2. Differences Between CeFi (Centralized Finance) and DeFi (Decentralized Protocols) > The biggest difference between traditional financial systems and the new Web3 ecosystem is the presence or absence of a 'centralized entity'. Here is a comparison with the types of exchanges that represent each. #### 1) Representative Form of CeFi: Centralized Exchange (CEX) Centralized Exchanges (CEX) are the familiar approach. Asset trading on a typical CEX (e.g., major global institutions) provides a User Experience (UX) similar to traditional financial transactions, resulting in a low entry barrier that anyone can easily access. * Example: Upbit, Bithumb, Binance, etc. #### 2) Representative Form of DeFi: Decentralized Exchange (DEX) & Protocols The interaction method of Decentralized Exchanges (DEX) and protocols is fundamentally different from a CEX. You may experience technical friction during the following processes: * Personal Wallet Management: Creating a personal wallet (e.g., MetaMask) and storing the recovery phrase/private key yourself. (\* The Aqua ecosystem strictly adheres to the non-custodial principle, meaning we do not control or recover these for you.) * Network Fees: Transferring mainnet base assets (e.g., AVAX) to cover network gas fees. * On-chain Interaction: Executing swaps and liquidity interactions through smart contracts. Additionally, unfamiliar on-chain terminology like 'providing liquidity', 'withdrawing', and 'swap routing' increases the risk of operational mistakes. #### 📊 CeFi vs DeFi Comparison at a Glance | **Category** | **Centralized Finance (CeFi / CEX)** | **Decentralized Protocol (DeFi / DEX)** | | -------------------- | ---------------------------------------- | -------------------------------------------------------------------------- | | Operator | Centralized institution (CEX, etc.) | Smart contract code | | Access Method | Sign-up and KYC required | Only a personal wallet is needed | | Personal Info | Collected and stored on a central server | Not required (wallet address-based interaction) | | Trust Structure | Based on trust in a specific institution | Based on code integrity and on-chain verification | | Asset Storage | Custodially held by the institution | Directly controlled by the user (Non-custodial) | | Reward Opportunities | Limited structure | Transparent and diverse structures like liquidity provision, routing, etc. | > ℹī¸ Why move beyond Centralized Exchanges (CEX) to DeFi? ### 3. Advantages of DeFi * Permissionless: Anyone around the world can start on-chain activities with just the internet and a wallet. * Anonymity: Connect with only a wallet, without requiring personal information like name, email, or phone number. * Diverse Reward Opportunities: Expect competitive reward rates (APY) compared to centralized institutions through various methods like liquidity provision and swap routing participation. * Transparency and Autonomy: All transactions and smart contract codes are publicly available on the blockchain for anyone to verify. * Decentralized Operation: The ecosystem operates autonomously by code, not by a central server. ### 4. Are High Expected Reward Rates (APY) Truly Safe? In DeFi, you will often encounter Expected Reward Rates (APY) that are higher than those of centralized institutions. However, these reward rates are often structurally inflationary or involve inherent smart contract risks. > ❗ Caution: Entering purely based on numbers can lead to a drop in the underlying asset's value, or impermanent loss when providing liquidity to pair pools (V2/V3, etc.). Always remember this: * Always research the protocol mechanism yourself before connecting your wallet or providing assets (DYOR). * Do not make blind decisions based solely on recommendations from acquaintances or social media information. * Do not interact impulsively just because an asset's price or reward rate spikes (FOMO). ### 5. DeFi is a Space that Requires Technical Understanding and Careful Judgment DeFi is open for anyone to participate, but without proper understanding and risk management, it is also a space where losses can occur. If you are new to this, we highly recommend taking the time to learn the basic concepts step-by-step alongside this document. ### 6. Differentiators of the Aqua Ecosystem The Aqua ecosystem is an on-chain onboarding hub that lowers the entry barrier for users who are familiar with digital asset trading but new to DeFi. * b-Token Provision Model: Efficiently separates asset provision and utilization, offering an optimized single-asset model (bUSDT, bUSDC, bAUSD) that secures both liquidity and contribution rewards simultaneously. * Multi-Pool Infrastructure: In addition to single asset provision, it offers advanced options such as V2/V3 pair pools, single pools, and NFT pools via the PumpSpace Decentralized Exchange (DEX) within the ecosystem. * 1:1 Interaction Support: b-Tokens within the ecosystem can be converted back to their underlying assets (USDt, etc.) at any time via the withdrawal function. (A 0.2% protocol fee applies upon withdrawal). * Intuitive UX/UI: Designed with a familiar UX/UI, much like traditional digital asset apps, allowing beginners to participate in the on-chain ecosystem without technical barriers. * Transparent On-chain Structure: All provision histories and reward algorithm structures integrated with external protocols are transparently disclosed as on-chain data. ### 7. The New DeFi Experience Created by the Aqua Ecosystem The Aqua ecosystem is not just a service for providing assets and receiving rewards. It aims to be a "transparent, non-custodial gateway where anyone can easily experience the on-chain ecosystem." * One-stop support for asset management, liquidity provision, and contribution reward collection just by connecting a personal wallet. * Intuitive terminology and interface that even beginners can understand immediately. * A globally standardized smart contract integration structure that accounts for all protocol contribution rewards. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://aquabank.gitbook.io/aquabank/en/overview/onboarding-guide.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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