OLET1208 Assignment
Prepare a report(essay) by selecting ONE question from the provided list of ten. Clearly specify the
chosen question in your response and exercise your discretion in determining how to address it. The
effectiveness of your response will be evaluated based on the strength of your argument and your
adeptness in reasoning with purpose and persuasion. Refer to the marking guidelines below for further
insights on the criteria for evaluation.
Standard University rules around referencing/citation apply.
Word Limit: 1,500 words.1
Due Date: 22nd December 2023
Weighting: 75%
1) Imagine you are an aspiring cryptocurrency trader, and you’ve decided to explore the world
of digital asset exchanges. You’ve heard about both centralised exchanges (CEX) and
decentralised exchanges (DEX). You want to understand the fundamental differences
between these two types of exchanges and the factors that might influence your choice.
a. What are the key differences between centralised (CEX) and decentralised (DEX)
exchanges?
i. Provide a concise overview of how CEX and DEX operate, highlighting their distinct
features (consider aspects such as ownership, control, security, liquidity, and user
experience).
b. When might a user choose a CEX over a DEX (or vice versa)?
i. Explore various scenarios where a trader’s preferences or requirements could
lead them to favour one type of exchange over the other (discuss factors like ease
of use, regulatory compliance, trading volume, privacy, and risk tolerance).
2) You are an aspiring DeFi enthusiast who has just discovered the fascinating world of
decentralised exchanges (DEXs). Uniswap, a prominent AMM protocol, has caught your
attention due to its innovative approach to liquidity provision and trading. As you delve
deeper, you encounter both the elegance and challenges of Uniswap’s swapping process.
Additionally, you’re aware that the AMM landscape is constantly evolving. Your task is to
analyse Uniswap’s mechanics and consider recent developments that impact its efficiency.
a. Explain the mechanics behind Uniswap’s swapping process. (Hint: Describe how liquidity
pools, automated market makers, and the constant product formula work together to
facilitate token swaps.)
b. What factors might result in a less than ideal (efficient) execution on Uniswap?
c. What alternatives could one pursue in such a situation. Explain.
1 This does not include referencing, words in figures, or a title page.
3) Explain the concept of NFTs (non-fungible tokens) and their initial surge in popularity.
a. How does the trading landscape for NFTs differ from traditional markets?
b. What were some key challenges that led to the decline in confidence within the NFT
market in 2021?
c. Considering the current landscape, what is the likelihood that the NFT market will rise
again? Explain.
4) What are stablecoins, and how do they function within the cryptocurrency ecosystem?
a. Identify and analyse the key risks that users should be aware of when using
stablecoins.
b. Explore the relationship between stablecoins and Central Bank Digital Currencies
(CBDCs).
c. What considerations should users consider when selecting a specific stablecoin?
5) Explain various methods of financing crypto projects.
a. With such financing, explain how different crypto projects manage their financial
resources.
b. What regulatory challenges do crypto projects face during fundraising?
c. How can crypto projects navigate the regulatory landscape while maintaining
innovation?
d. When choosing a financing method, what factors should crypto project founders
consider?
6) Explain the scalability limitations of blockchain networks.
a. What technological solutions or innovations are being explored to address
scalability?
b. Describe the role of consensus mechanisms in maintaining blockchain security.
c. How can blockchain networks enhance security without compromising
decentralisation?
d. Why is interoperability crucial for the success of blockchain ecosystems?
e. What projects or initiatives aim to improve blockchain interoperability?
7) Address the common perception that cryptocurrencies lack intrinsic value.
a. Can crypto enable the formation of useful businesses and technologies that were
previously unattainable?
b. What challenges do crypto-based businesses face, and how can they overcome
them?
c. Predict the role of cryptocurrencies in shaping the future economy and technological
landscape.
8) What is Web3, and how does it differ from the traditional web (Web2)?
a. How do cryptocurrencies fit into the Web3 ecosystem?
b. What obstacles do Web3 projects face, and how can they overcome them?
c. Predict the impact of Web3 on industries beyond finance. Discuss the likelihood of
several different scenarios and the implications of these scenarios.
9) Regulation of Decentralised Finance (DeFi) is being debated worldwide as regulators try to
come to terms with activities in this space. Consider the following questions in forming a
response to DeFi regulation.
a. Identify specific risks associated with DeFi platforms.
b. How can regulators strike a balance between fostering DeFi innovation and
safeguarding users?
c. What challenges might arise when applying traditional financial regulations to DeFi?
d. How can regulators ensure DeFi outcomes align with investor protection and market
stability?
e. What regulatory approach would you propose for DeFi?
10) The Australian Government (“The Treasury”) recently published a proposal paper titled
“Regulating Digital Asset Platforms” (October 2023). The document outlines the government’s
intention to introduce a regulatory framework for digital asset platforms. It emphasises the
need to address consumer harms in the crypto ecosystem whilst supporting innovation and
aims to apply consistent oversight and safeguards for consumers. If you were advising the
Government on a proposed framework to considered risk management, regulatory
approaches, and consumer protection, what would this look like? Discuss.
OLET1208 (Assignment) Subject Content Awareness of Issues Critical Thinking Takes a Position
Excellent - HD (85-100)
A markedly exceptional performance
Demonstrates a markedly
exceptional understanding
of the subject matter.
Exhibits a comprehensive
grasp of relevant concepts,
theories, and issues
pertaining to the topic.
Displays an ability to apply
these concepts and theories
to the topic at hand.
Shows evidence of
extensive research and in-
depth knowledge.
Able to link subject content
to broader theories and
concepts in the field.
Demonstrates a comprehensive
awareness of differing
viewpoints related to the topic.
Undertakes a rigorous
assessment of these differing
viewpoints where relevant.
Shows an ability to consider
these viewpoints within the
context of the topic. Uses
viewpoints to enrich
understanding and analysis of
the subject matter.
Demonstrates exceptional
ability to think critically.
Exhibits highly developed skills
in analysis, synthesis, and
evaluation of relevant
information. Uses examples
(analytical, theoretical, or
empirical) with purpose.
Substantiates elements with a
range of traditional and non-
traditional sources.
Thoughtfully presents and
defends a position that reflects
one's own perspective.
Supports position through
logical argument and carefully
selected detail. Builds
arguments to a consistent and
well-articulated conclusion.
Superior – CR + DI (65 -84)
Clearly above average performance
Demonstrates a solid
understanding of the
subject matter.
Shows a thorough grasp of
relevant concepts, theories,
and issues. Some critical
issues or concepts may not
be considered, but overall
understanding is clearly
above average. Displays
ability to apply learned
concepts to the topic.
Shows evidence of
substantial research and
understanding.
Demonstrates an awareness of
different viewpoints related to
the topic. Attempts an
assessment of these differing
viewpoints where relevant.
Some perspectives may lack
depth of consideration or
understanding. Uses viewpoints
to inform understanding and
analysis of the subject matter.
Demonstrates good critical
thinking skills. Shows ability to
interpret, analyse, synthesise,
and evaluate information. Some
elements may lack depth of
analysis or synthesis. Uses a
range of sources to substantiate
elements.
Clearly presents a position and
supports it logically.
Provides appropriate detail to
support the position. Builds
arguments to a logically
coherent conclusion.
Satisfactory – PS (50-64)
A fully competent paper
Demonstrates a basic
understanding of the
subject matter.
Shows a basic grasp of
relevant concepts, theories,
and issues.
Some critical issues or
concepts may not be fully
considered or understood.
Shows ability to apply basic
concepts to the topic.
Evidence of adequate
research and understanding
is present.
Demonstrates a basic awareness
of differing viewpoints.
Asserts viewpoint without
adequately acknowledging or
considering alternatives.
Lacks depth in understanding or
consideration of differing
perspectives.
Limited use of viewpoints to
inform understanding and
analysis.
Demonstrates a basic level of
critical thinking.
Accurate information is
conveyed incorporating relevant
sources and references.
Some elements may lack depth
of analysis, synthesis, or
evaluation.
Uses a limited range of sources
to substantiate elements.
Presents a position and argues
for it logically.
Some supporting detail may be
lacking or not fully relevant.
The conclusion may not fully
align with the arguments
presented.
Unsatisfactory – FA (<50)
An incomplete paper
Demonstrates a poor or
incomplete understanding
of the subject matter.
Fails to demonstrate a basic
grasp of relevant concepts,
theories, and issues.
Critical issues and concepts
are not considered or
understood.
Lacks evidence of research
and understanding.
Fails to demonstrate awareness
of differing viewpoints.
Asserts viewpoints without
evidence or consideration of
alternatives.
Lacks understanding or
consideration of differing
perspectives.
No use of viewpoints to inform
understanding or analysis.
Fails to demonstrate critical
thinking skills.
Information conveyed lacks
accuracy or relevance.
No critical analysis is provided,
and referencing is incomplete.
Elements lack substantiation
from relevant sources.
Fails to present a clear position.
Lacks logical argument or
supporting detail.
The conclusion is unclear or
inconsistent with the arguments
presented.