[Defi Products] - Crypto Academy / S4W8- Homework Post for @reminiscence01

in hive-108451 •  3 months ago  (edited)

Hello everyone hope all are doing good, I have taken the lecture properly and now I am going to answer the questions.

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In your own words, explain DeFi products and how it is shaping the present-day finance.

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Ans.

Before moving to defi products, let's first clear what we actually mean by DeFi.

So basically, DeFi means Decentralised Finance which is a system through which people can access to financial system by a decentralised blockchain network. It provide financial services to public with a secure and easy to use system.
Is is beneficial as people now don't have to depend middlemen like banks or brokerages. It is designed to remove intermediaries in transaction parties.

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It provide finance a new direction by allowing lending and borrowing, providing cypto traders borrowing opportunities for good annual returns. On the other hand lending allows people to take money on a specific interest rate which is also good for crypto holding community.

The quality of DeFi to provide financial services without asking third parties favoured the people and give them a simple, transparent and improved ecosystem.

If we talk about DeFi products basically we are speaking about decentralised exchanges.

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For example,

Uniswap

It is the largest token exchange by means of transaction volume. It gives liquidity to the public by automated transactions in crypto by smart contracts.

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The above pictorial representation shows a brief idea about how the uniswap works.

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b) Explain the benefits of DeFi products to crypto users.

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Ans.

Permission less

It provide a system which doesn't require much permission to do financial transaction by make the people way easier and provide them transparency.

Increased security

It provides better security to do financial services by using technical information.

Savings application

People can also prefer DeFi for the effective management of their savings. That's the reason many DeFi applications that provide savings have come out in recent times.

Transparency

Transparency is one of the most notable pros. Of DeFi. It is simple to use system which entails better transparency about all activities on blockchain network.

Lending and Borrowing Applications

DeFi foster the development of peer to peer lending and borrowing solutions which can substantially offer promising and beneficial for end-users.

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Discuss any DEX project built on the following network.

Binance Smart Chain

Tron Blockchain

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Binance Smart Chain

I will prefer to discuss pancake swap under binance smart chain.

Pancake is a popular decentralised exchange under the binance smart chain. It offers an ample of innovative ways to make income streams from crypto.

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Basically pancake swap allows traders to exchange BEP 20 tokens and also to use their cryptocurrencies to attain liquidity for the exchange pools.

Features that pancake swap allows you:

  1. Trade with BEP 20 tokens
  2. Gives liquidity to earn fees.
  3. Stake CAKE to earn coins of different projects.
  4. Stake your Liquidity provider to earn CAKE token.

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So, as we already see the benefits of pancake swap then lets go to some more advantages.

No kyc requirement

Almost every centralized exchange demand KYC(know your customer) which actually remover user privacy by providing them extensive documentation but in this anyone anywhere in the world have the right to trade in 100s of assets at pancake swap.

Low fees

As we know about the emerging complaints about the projects on Ethereum are mostly because of high fees. As pancakeswap do not use that network instead it uses BSC and BEP 20 token whose fees is much lower ranging from $0.04 to $0.02.

IFO

Pancakeswap users or cake holders have the power to swap the tokens before they are open for public.

Secured

It is also secured by cyber securuty firm certik for the following protections.,

Security oracle
Certik shield
DeepSEA
Certik virtual machine

Tron blockchain

In this i'm talkin about Justswap, It is the first decentralized token on TRON which allows its users to swap any TRC20 token at the system price.
It also provides users to earn transaction fees by making a liquidity provider.

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Now we go with some core strengths of Justswap.

  1. High profit: Here we'll get high profit because there is no commission in between by which user will get all ongoing processing fee.

  2. Convenience to use*: It is very easy to use and give instant exchange without even matching orders

  3. Full Availability : As Tron promised a true open and fair financial market, Justswap is available to everyone.

  4. Here market makers earn without any barrier to entry and it allows to exchange instantly between any TRC20 token.

  5. Liquidity: justswap provides unlimited liquidity to the users which is the most highlighted key point in it.

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(3) In the DEX projects mentioned in question 2, give a detailed illustration of how to swap cryptocurrencies by swapping any crypto asset of your choice. Show proof of transaction from block explorer. (Screenshots needed)

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How to Swap on JustSwap


I will show some steps in which I will tell how to Swap on JustSwap -

Step 1- Open TronLink wallet and then Click on Discover as shown in the below image.

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Step 2- Then, Select JustSwap and Click on it.

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Step 3- Then, You will redirected to JustSwap homepage. There, Click on Swap option and then select the currency which you want to swap. I have selected for swapping TRX to WIN.

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Step 4- Confirm the swap by clicking on Confirm.

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Step 5- Then Authorization tips will appear. So, Click on Continue and then Confirm the transaction by clicking on Confirm.

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Step 7- At last, Enter your password and then You will successfully swapped the tokens on JustSwap.

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Hash - 91d74dfc97861aa4ab56c5469a11d5805326b05efb88c539fc231370abaf5aaa

IMG_20211030_184957.jpgTransaction details on TronScan.

From above image, You can see that This Transaction consumed 349 Bandwidth and 46,431 Energy.

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Conclusion

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By this lecture now i am able to know how DeFi is important and growing more and more by providing users a variety of financial services in a proper, safe and transparent manner.
I also learned a lot about pancakeswap and justswap decentralized exchanges.
At last i would like to thank professor @reminiscence01 for writing a informative and wonderful lecture. Have a nice day.

Thanks a lot for reading.

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Hello @sachin08 , I’m glad you participated in the 8th week Season 4 of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:

CriteriaRatings
Presentation / Use of Markdowns2/2
Compliance with topic1.5/2
Spelling and Grammar1/1
Quality of Analysis1.5/2
Originality1.5/2
#Club50501/1
Total8.5/10



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