DeFi Product / S4W8 - Homework Post for @reminiscence01

in SteemitCryptoAcademy7 months ago


Hello Everyone


Back again with me @chairulrizalx and Week 8 of Steemit Crypto Academy Season 4 has started and this time Professor @reminiscence01 and @lenonmc21 are mentors on this homework assignment. In this post, I will follow the homework given by Professor @reminiscence01 which discusses DeFi Product - Steemit Crypto Academy Season 4 Week 8 - Beginner's Course | DeFi Product


Hopefully this assignment will be a useful lesson for all of us.


Introduction


Technology has become something that cannot be separated from everyday life, updates and evolutions made by technology developers make today's life easier to access only by using technology. The increasingly modern era requires us to continue to adapt to all existing technologies as a provision to live a better life in the future.


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In the financial sector itself, the entry of technology that makes it easier for customers to make payments or other transactions, thanks to the technology in the system, increasingly provides many benefits for its users, one of the technologies in the financial sector that uses a blockchain system is called Decentralized Finance (DeFi).



1a). Explain DeFi products and how it is shaping the present-day finance.


The emergence of Blockchain technology with a decentralized system in recent years has had a lot of positive impacts on users around the world, cryptocurrencies which are an alternative currency with the transparency and convenience offered make it a form of future technology that will become something that needed by all levels of society.


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DeFi (Decentralized Finance) uses blockchain technology in running its system, as a program engaged in finance and banking makes DeFi a popular program because of the convenience it provides and the effectiveness of its performance. One of the blockchains that introduce DeFi to the public is Ethereum using a smart contract system which is a programming code that can run automatically without the need for contributions from third parties or other authorities.

One of the Decentralized Finance products is known as DApps (Decentralized Applications) which focuses on making traditional financial services as decentralized as cryptocurrency exchange platforms. If previously conventional financial services depended on one institution such as a bank as an intermediary in the transaction process, using DeFi, all transaction processes were carried out by programming codes written on smart contracts and using Peer-to-peer networks.


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To be able to run the DApps through a web browser, users must install a browser extension to make it easier for the browser to interact with the blockchain and manage user identities. After Ethereum success with DApps, other Blockchain networks have created their DApps like the Tron Blockchain, EOS, Steem, Binance, and others.

Decentralized Finance application code is generally open-source or can be accessed by users without being tied to authorities such as the government, users can verify the code from the application themselves. Thus, users can have complete control over their funds without fear of being cheated by certain parties. In addition, DeFi can generally be accessed digitally from anywhere because it is an online platform, we don't have to bother going to places like banks.


In short, DeFi is an open financial system without intermediaries because it is Decentralized which for several years has been successfully used in cryptocurrency transactions. With DeFi, cryptocurrencies can be transacted, transferred, traded, or used for other financial activities by prioritizing efficiency, security, and easy access.



2a). Explain the benefits of DeFi products to crypto users.


The emergence of Decentralized Finance which provides financial alternatives that use technology has now made many users feel the benefits of this technology, the following are the benefits of using DeFi for cryptocurrency users:

  • DeFi is easily accessible to cryptocurrency users
    Decentralized Finance is a technology that can replace the role of conventional financial systems because it can be accessed easily, every user connected to an internet connection can use DeFi and even design programs for DeFi development such as making DApps.

  • DeFi is open to all users
    By using DeFi technology, it is possible for people who previously did not have access to conventional financial services due to difficulties in meeting the requirements of financial service providers such as banks, all people can participate in the global economy and increase credit scores by using the platform from Decentralized Finance.

  • DeFi promotes trust and transparency
    DeFi does not cover all information related to the program, all information is easily available and can be accessed openly by all users. This system believes that a lack of transparency can reduce a person's accountability and motivation to do things responsibly.

  • DeFi is a choice for saving digital assets for the future.
    The emergence of DeFi is an option for users who want to store digital assets for the future without fear of losing assets and the monthly fees charged as done by conventional banks, Decentralized Finance is a solution to overcome financial problems in the future.

The development of the DeFi application has encouraged the realization of a more fair and transparent financial service system, where conditions allow everyone to have access to utilize financial products or services. Benefits of using DeFi are urgently needed at this time because financial inclusion has been proven to help people move out of poverty, reduce social inequality and promote economic growth for a better future for humanity.




2). Discuss any DEX project built on the following network.


Binance Smart Chain (BSC) - PancakeSwap


One of the most widely used decentralized financial applications in my opinion is PancakeSwap, a cryptocurrency exchange platform that uses the Binance Smart Chain (BSC) network to drive its network.


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The designation for this PancakeSwap is DEX (Decentralized Exchange) where users can conduct cryptocurrency transactions in a decentralized manner through centralized party intermediaries as implemented by CEX (Centralized Exchange). Binance, which is known as a centralized exchange service provider platform, does not control or operate PancakeSwap which was built by anonymous developers using the BSC network and BEP-20 tokens because from the beginning PancakeSwap has implemented a Decentralized system even though it uses Binance network.
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PancakeSwap is built on an AMM (Automated Market Maker) system, which relies on a user fueled liquidity pool to enable crypto trading. Users can exchange one type of token for another without intermediaries, while other users who stake their tokens in the liquidity pool get a share of the rewards generated by the transaction.


The following are the features available on the PancakeSwap platform:

  • Trade : Exchange & Liquidity
  • Earn : Farm & Pool
  • Win : Prediction & Lottery
  • NFT : Overview & Collections


Benefits of PancakeSwap

  • Decentralized, which means that there are no intermediaries
    PancakeSwap is an exchange platform that provides services without the need to use intermediary services as centralized platforms do. Users can set their transactions to be carried out on cryptocurrency exchanges.

  • Supported by many digital wallets that can facilitate transactions between users in different wallets
    PancakeSwap already has support from many popular digital wallets in the cryptocurrency world such as Metamask, Trust Wallet, WalletConnect, and several other digital wallets.

  • Relatively low transaction fees
    When using PancakeSwap offers significantly lower transaction fees than other platforms that use networks other than Binance Smart Chain (BSC). PancakeSwap uses the BSC blockchain which, when conducting transactions, the fees charged are very small when compared to the transaction fees charged on other blockchains.

  • Fast and easy transactions
    In addition to saving users from high transaction fees, using the BSC network can also facilitate faster transactions, which is a feature needed by cryptocurrency exchange platform users who don't want to waste time waiting for long transaction processes.

  • Audit security guarded by CertiK
    PancakeSwap uses the services of the cyber security company CertiK, which is guaranteed security when conducting audits and is trusted. In addition, PancakeSwap uses ShentuShield security insurance to protect user transaction data from cybercrime.


Tron Blockchain


One of the DeFi projects of Tron Blockchain is JustSwap, a cryptocurrency exchange platform based on the Tron network using the decentralized TRC-20 token. The Tron network is known for its transaction speed which is claimed to be faster than other blockchain networks, using JustSwap also allows users to earn transaction fees by becoming a liquidity provider, plus users are free from protocol commissions.

JustSwap website main page
Some of the features offered by the JustSwap exchange platform include:

  • Swap: Cryptocurrency token/coin exchange service with other types of crypto assets.

  • LP Pools: A service for mining with more energy-efficient resources to support projects from the blockchain.

  • Scan: This feature provides a service to view a list of transactions made on the Tron network and Trading Pairs made on the Tron blockchain.


Benefits of JustSwap

- Instant Exchange
JustSwap provides an instant Swap feature where users don't have to bother waiting for the transaction to complete because JustSwap does not match orders.

- Decentralization
It is clear that JustSwap offers an open cryptocurrency market and promotes transparency between the parties involved, and also that this platform can be used by anyone just by connecting to the internet.

- Unlimited liquidity
JustSwap and blockchain provide unlimited liquidity for all cryptocurrency traders and investors in need.


Because JustSwap is based on Tron network, users are no longer worried about being exposed to high fees like what happened in Ethereum. This JustSwap claims to be one of the Decentralized Exchange (DEX) with lower fees and faster instant payments than other networks.



3). In the DEX projects mentioned in question 3, 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)


Swap Using JustSwap



Previously I had not connected to the Tron digital wallet, in the menu on the left Select Connect to Wallet.
I was directed to the Connect to Wallet page, I Select Tronlink Wallet and wait for the system to initialize the data.
Since I already have a Tronlink Wallet account, I chose Restore to connect it to JustSwap.
  • On the Restore menu we will be directed to the Import account menu, here I choose to enter the Private Key. In addition to the Private Key, importing our account can also enter the Keystore, and also the Mnemonic phrase.

After inputting the Tronlink Wallet Private Key, on the Connect Account menu, make sure the wallet address is correct, then select Connect.
  • When the wallet connects process is complete, return to the JustSwap main page. The connected account will appear on the left page of the website as shown in the image below.

Swap TRX to WBTT

On the JustSwap website, select the Swap menu, here I swap 17 TRX to 457 WBTT, the price impact is 0.01% and the Liquidity Provider Fee is 0.051 TRX. If it is in accordance with the options Click Swap.
  • Make sure that the token will be swapped because if you enter the wrong data, it cannot be returned. If it is appropriate to select Confirm Swap.

Then we will be directed to the Smart Contract view, make sure our data is following the original if it is appropriate to select Sign.
The Swap TRX to WBTT process has been completed, click Close to end the process.
  • Block Explorer of Swap transactions that have been made can be seen on Tronscan.io - Link.


Conclusion


DeFi (Decentralized Finance) uses blockchain technology in running its system, as a program engaged in finance and banking makes DeFi a popular program because of the convenience it provides and the effectiveness of its performance.

The development of the DeFi application has encouraged the realization of a more fair and transparent financial service system, where conditions allow everyone to have access to utilize financial products or services.

Benefits of using DeFi are urgently needed at this time because financial inclusion has been proven to help people move out of poverty, reduce social inequality and promote economic growth for a better future for humanity.


Note: All screenshots that are not sourced are the property of the author.


Thank You


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Hello @chairulrizalx , 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 topic2/2
Spelling and Grammar1/1
Quality of Analysis2/2
Originality1.5/2
#Club50501/1
Total9.5/10



Recommendation / Feedback:

  • The student have completed the assignment for this lesson.
  • The student also answered all the questions in his/her own words.
  • Your overall presentation is good.
  • Excellent performance with detailed explanation on DeFi products. I commend your writing skills and i encourage you to keep it up.

Thank you for participating in this homework task.

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