STEEM CRYPTO ACADEMY WEEK 7 HOMEWORK POST FOR @gbenga ; BY @azizulhassan

Decentralized Finance If I explain in simple words All the work in the financial system which we do physically by going to to office If we take that and put it on blockchain with the help of smart contract   we can basically call that decentralized finance or DEFI

Let me give you an example suppose there is Aziz and I have some extra money so  if I go to a bank ok and deposit my money E Bank will give me a certain amount of interest rate on that That depends upon me how much time do you want to keep that money in the bank

now there is is a person name Hasan he comes to a bank and you want to start a new business he need money for that so what he will do evil take money from the bank for land money from the bank and give his gold for property to the bank as a guarantee   now the bank will take Aziz money and give it to   Hasan  on a higher interest rate That is what we called traditional banking system or centralised Finance bank is playing the role of a centralised Bank is responsibility  Borrowing and lending money

Now in decentralized finance the bank is being replaced by smart contracts in easy words Smart contracts are 100% transparent unlike Bank And they follow Simple rules which are are Coded in the smart contracts these codes can be verified before investment Ek taiyar right or not  in centralised finance We use gold and property and in decentralised finance we use  cryptocurrency assets like Bitcoin and ethereum

Let's do the examples again  if there is a boy name Aziz  and he have some cryptocurrency assets like  ethereum  and he want to earn  interest on that What he can do ways we can deposit is cryptocurrency acids into defi  smart contract and he can earn a good amount of interest

monthly or yearly

Now we have a a a boy name Hasan  and he have some crypto-currency  like it therium but he don't want to sell that what he can  Keep that as a mortgage in a smart contract and he can take a loan on that and once he have got the money  he  can pay the loan and all his assets back

There are many protocol or project going on  in  decentralized finance ecosystem  I cannot talk about all of them there are so many things going on but I will specifically pick a random project and I will tell you about that that is my homework today so let's speak and I hope that you understand what the  decentralized finance 

Let's first talk about  unsiswap  this is a decentralized exchange If I give you example of centralised exchanges it will be Binance  bittrex  centralised exchanges Where you can buy and sell cryptocurrency The problem is that these exchanges are centralised and a company is running all these exchanges that not all of them but a specific one there is a company behind each exchange The company is holding   holding all your funds until and unless you want to withdraw it 

Uniswap Is a decentralized exchange where you can buy and sell to  tokens  The good thing about this exchange is all the time you are the controller of your money If you buy and sell something it will happened live just like you by something in physical and you give them money from your wallet There will be no control of anyone else on your wallet This is the basic for concept of decentralization  exchanges And the number one  is exchange is unsiswap  according  according to my knowledge

And they have recently launched their own token which is    uni token 

I will try to explain it is possible I want get into the technical thing ok so let me give you an example of a bitcoin we all know that to mine a bitcoin we need a GPU and heavy powerful computer to mine Bitcoin   or    ethereum In the defi space  of there is a concept of yield  of farming You can  stake your cryptocurrencies You can  mine new token  Nawaz wieland in Bitcoin mining you need computers but here you don't need computer instead you need cryptocurrency stablecoins like tather. dai .

You can stake your   cryptocurrencies and early good passive income Let's oppose it stake  

If you stake your tether  in uniswap    through liquidity mining  you will get uni tokens as interest You can hold it or sell it that's completely on you This is the simple explanation of liquidity meaning or yield  farming  and this is running and decentralized Finance now

 you must should have  wallet to do transaction on  un  uniswap 

Mataask  Is the wallet that I suggest in I have created a whole post on how to create this wallet this is a must and this is the most famous and trustworthy wallet there are many other wallets in the market you can also check them out

 is now if you have balance and a wallet  now your completed is just go to the official website be careful with this because there are so many factors sites in the market and you can be scanned 

you can start your trading over there there are many steps and that wants are separate post on how to do everything but I give you a brief explanation of the  project

Mentioning

respected @cryptokannon, @steemcurator01 @steemcurator07 and @steemcurator02 to get their support.

with love @azizulhassan