Crypto Academy Week 4 Homework Post for [@yohan2on] Introduction to Decentralized Finance (DeFi) – A new Fintech Revolution (Part 1)

in SteemitCryptoAcademy4 years ago (edited)

Hello @everyone i have attended the lecture of sir @yohan2on about Introduction to Decentralized Finance (DeFi) – A new Fintech Revolution. If you have not attended the lecture yet then come and join this class and learn important things about Decentralized Finance (DeFi). As i have learned many new things which i did not know even i did not heard about them.



Join Class : Topic 4: Introduction to Decentralized Finance (DeFi) – A new Fintech Revolution (Part 1)



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Today Homework Task To Attempt:

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Image Made By Canva by @mohammadfaisal

Briefly explain each of the following DeFi Dapps :

  • Maker
  • Compound
  • Synthetix
  • bZx
  • Uniswap

As today's topic is about the Decentralized finance so first of all let me explain about the Decentralized Finance.

What Is Decentralized Finance (DeFi) ?

Decentralized Finance is also known as DeFi which is the short name of the decentralized finance. It is the new invention in the blockchain technology. It is basically a change of traditional and old centralized system into Peer to Peer financial system which is proudly introduced by the Decentralized system. DeFi has revolutionized the blockchain world as it does not depend upon the central financial systems such as banks, brokerages or exchanges. It provides the service of lending assets , borrowing assets and the participation in the liquidity pool.

Brief Explanation Of DeFi Apps (Maker, Compound, Synthetic, bZx, Uniswap)

  • Maker: Maker is the first decentralized stablecoin which is built on the Ethereum. It is the lending platform. It is very easy and autonomous platform to get loan by staking your digital assets. You can stake Ether (ETH) to get loan. It is completely permissionless which means that there is no any KYC system to start. All the lendings are performed by the smart contracts which means there is no any involvement of any human. You can get unlimited loan without any specified limit.
    Maker is structured as a Decentralized Autonomous Organization (DAO). Although it has made by the team but there the community has all the authority. Maker DeFi provides its users the great opportunity to create your own vault lock in collaterals such as Ethereum (ETH) , Basic Attention Token (BAT) and much more.
    Overall Maker has done a great job to provide the real demand of the Decentralized Finance (DeFi )applications. It is clear that more and more new companies are also beginning to respect the importance of Dai every day.

  • Compound: Compound is an algorithmic and autonomous interest rate protocol specially built for the developers to introduce a universe of open financial applications. It is a Decentralized Financial lending program. It has an amazing system that it allows its borrowers to take loan and allows its lenders to provide loans by just stacking your crypto assets there. The interest rates are paid and received by borrowers as well as by the lenders are basically determined by the supply and the actual demand of each crypto asset. In the compound DeFi interest rates are generated by every block mined. So by using Compound you earn in both ways by lending or getting loan.

  • Synthetix: It is a Ethereum blockchain based protocol that allows the issuance of the synthetic assets on the Ethereum Blockchain. Firstly it started as a stablecoin before pivoting ot DeFi. Synthetix DeFi supports synthetic products such as gold and silver. It also supports synthetic cryptocurrencies, synthetic inverse cryptocurrencies, synthetic cryptocurrency indexes, and synthetic fiat currencies. Synthetix allows its users to bet on the different cryptocurrencies. By using Synthetix you can easily exchange your crypto assets. It is an also important feature of the Synthetix. It also has its own token SNX which is very stable and it is trading at the price of the $21.96 right now.

  • bZx: It is also based on the Ethereum blockchain. It is another DeFi lending platform which is built specifically for the traders. It is tokenized and uses smart contract system to automate the whole system Users can lend, borrow and do margin trades by using bZx without relying on the third parties. The process of lending and borrowing with the bZx is very easy and fully facilitated and all the orders are chain-baesd. It is running with its own token (bZx) which is currently trading at the price of the $0.430

  • Uniswap: Uniswap is another important DeFi application based on the Ethereum blockchain. It is the decentralized crypto exchange. As from the name we can consider that it is a swap service. Uniswap is used to swap the crypto assets based on the Ethereum blockchain. The whole platform is governed by the single authority and it uses a traditional order book to facilitate trading. Uniswap allows you to swap ERC-20 tokens directly from your wallet and it also allows automated transactions. It has alos its own tooken which is very stable and has very high price now. Right now it is trading at the price of $26.26

Advantages Of Decentralized Finance DeFi

As everything has its own advantages so DeFi has also many advantages . Some of them are given below:

  • It is build on the decentralized system.
  • There is no any middleman in the transactions.
  • It provides easy accessibility. If you have internet connection then you can easily start using DeFi.
  • It provides you complete ownership because it is based on the ethereum which is completely decentralized and run by the community.
  • The transactions are fully automated based on the ethereum decentralized platform.
  • There is complete transparency and no anything hidden in the transactions.
  • It always provide you innovation. Each and every day it provides new protocols.

Conclusion

Everything is clear as DeFi is changing the crypto world . As it is in its early stage and has launched recently but it has revolutionized the crypto eceosystem as it facilitates crypto exchanges, crypto lending, crypto borrowing. It also has made margin trading very easy with the complete transparency without the involvement of the third parties. The another important thing about the DeFi is the smart contracts which are completely automated and fastest.

Words Of Appreciations For

@steemcurator01
@steemcurator02
@steemitblog
@yohan2on

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Hi @mohammadfaisal

Thanks for attending the 4th crypto lecture and for submitting your homework.

Feedback
Good work. You have done well though your article has plenty of grammatical errors. I recommend that you start using Grammarly tool to help you out in correcting those grammatical errors.

Homework task completed
8

Thanks sir for checking my homework and leaving the suggestion of using grammarly tool to avoid grammatical errors. I will use next time and i hope next time you will not see any error of grammar in my post.

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