Steemit Crypto Academy Week 7 || Methods to Generate Income with Cryptocurrencies// Posted by Prof @imagen // homework by @chilaw

in SteemitCryptoAcademy3 years ago

Hi friends, it's nice participating in this week's class on Methods to Generate Income with Cryptocurrencies. This should be every users main stay in the crypto space which are geared towards getting passive incomes.

Homework:
You must choose at least 1 of the methods of generating income with cryptocurrencies mentioned in the class (You can do staking but HOLD is not allowed.).
You must investigate about a platform that allows you to perform the chosen method.

1.) What platform did you choose? Why did you choose it? What other types of services do you offer? (Add relevant information)
2.) Explain the process to transfer the funds to that web platform. Show Screenshots
3.) Explain the profitability of the chosen method.

For the purpose of this post , I will be dealing in the Loan aspect of this homework task as a means of Generating income in the Cryptocurrencies. There are other viable products and projects all out there with capacities to generate passive incomes like the launchpool and Savings schemes seen in the Binance exchange with ability of users/investors to earn according to their status, risk aversion levels and expertise.

So, I will be choosing the TRON NETWORK. This is a decentralized blockchain which was founded in 2017 by Justin Sun. It is one of the largest blockchain based protocols with aim of becoming a worldwide free content/entertainment decentralized provider. It has high Scalability, high throughput seen in its network.

With TRON being a Decentralized network, with consensus algorithm that runs on Delegated Proof of Stake (DPoS). it is a digital content which seem to be it's main stay does not require the activities of middlemen before they are published or available to the market. TRON NETWORK has shown unlimited building not utility application on its main network. Moreso, when Contents are created by developers, all payments derived from this posting goes to directly to the Content initiator. Without any form of middlemen activities.

The native coin of the TRON is the Tronix (TRX) and it is available in the world number one exchange platform Binance Exchange. It is also found in buttrex and other top exchange platforms. The Tron blockchain is known to host a number of engaging protocols like the JustLend and Just swap and they are all efficient in their best forms to deliver high powered decentralized services to its diverse users.
Though some of the outstanding services offered by the Tron Blockchain include:

  • Justswap
  • JustLend
  • JustWrapper
  • JustStable (USDJ)
  • JustLink

But I will like small light on JUSTSWAP and JUSTWRAPPER before having a robust and concise discussion on the JustLend which happens to be one of the ways of Generating income in the Tron blockchain and Cryptocurrency world at Large.

THE JUSTSWAP
It's a decentralized protocol that allows the automated Liquidity system of token exchange within the network. Tokens exchaged here are TRC20 tokens and which are done instantly when actioned. Just the like likes of Mooniswap and Uniswap that runs on the Ethereum blockchain, the Justswap runs on the Tron Blockchain.

It has a trading fee of 0.3% and this was tactically done to redistribute fees charged to liquidity providers. Since it runs on the Tron Network, it can be accessed easily via the TRONLINK wallet.
With this Dapp, one can easily have access to any of it's preferred coins at a blink with a very low transaction fees

THE JUSTWRAPPER
This is another fantastic offering from the Tron blockchain with specialty in keeping users transaction closed. Sending and receiving Cryptocurrencies in and out of your wallet could be done with any form of traces. It guarantees high form of confidentiality and no traceability in users account. This Dapp ensures safety and reliability, quick delivery, Privacy and intuitive/smooth interaction.

THE JUSTLEND
JUSTLEND is a lending protocol built on the Tron blockchain. Just as we see our loaning institutions in the conventional finacial system, so is the JustLend in the decentralized system. It is a money market system that encourages the Supply of funds in a pool with interest rates based on the demand and supply of the Tron assets. The JustLend works majorly on the borrower and depositor protocols which leaves them with an uninterrupted interaction with the protocol to either earn or pay what we know as floating interest rate. In simple terms, the borrowers are seen to sell short and assets which automatically places the lender to earn interests from supplied assets.

The JUSTLEND has continued to play major roles relating to decentralized financial services given to diverse connection seen in the Blockchain protocols amongst different users of the digital assets. Though for now, there are fewer assets seen in the JustLend protocols with ability to either be accepted as collateral for loan or have the capacity to redistribute jTokens to underlying assets.
See screenshots below to show us the available assets in the JustLend.

iMarkup_20210528_162812.jpg

SUPPLYING ASSETS IN JUSTLEND
This group of users who involve in supplying liquidity into the pool are one of the major players in the protocol seen in JUSTLEND. Without limitations of access assets, suppliers have unlimited access to pull asset from pool at any given time without necessarily having to wait until loan expires. Assets supplied are seen in the form of jTokens and therefore interest are earned after due diligence.

BORROWING ASSETS IN JUSTLEND
This is the second active protocol seen in the JustLend where they are seen to access the liquidity provided by the suppliers in the pool. But before they are seen to acquire any assets in the ecosystem, they are meant to supplier some percentage of jTokens which they are limited to have access to a certain percentage of it while borrowing an asset.

STEP BY STEP GUIDE TO INITIATE A LEND ACTIVITY IN THE JUSTLEND

  • Login to the TRONLINK
  • click on the discover icon
  • on the interface, click on JustLend or you can scroll down and click on the needed assets in list.
  • From the asset; in this case we are using the TRX. So click on the "Supply" icon
  • Select and input the amount of TRX to be used. I will be using 100TRX at a supply APY of 4.02%.
  • then click on the supply icon
  • click on "Confirm"
  • A confirmation message would pop up to verify this transaction.

iMarkup_20210528_234037.jpg

iMarkup_20210528_234555.jpg

iMarkup_20210529_000507.jpg

iMarkup_20210529_000648.jpg

iMarkup_20210529_001337.jpg

iMarkup_20210529_001048.jpg

iMarkup_20210529_001643.jpg

iMarkup_20210529_001848.jpg

iMarkup_20210529_092439.jpg

iMarkup_20210529_093718.jpg

DATA COLLECTED FROM TRANSACTION:
Lend Amount : 100TRX
jTokens: 9,996.61931
Bandwidth consumed: 284bandwidth
Energy Consumed: 80,377energy
Burn: 11.25278TRX

We will be calculating the Profitability of this transaction

A). Profitability = (Interest amount /Lend Amount)/100%
While to calculate the interest Amount;

B). Interest amount = {(lend Amount x %APY)/(360DAYS)} x Number of Lend days chosen.
(Chosen number of Lend days is 15days)

Therefore, Interest amount = {(100 x 4.02%)/(360)}x 15 Interest Amount = 0.1675TRX

Profitability = (0.1675TRX /100)/100%
So, Profitability = 0.17%

The Profitability of lending 100TRX, gave me an interest of 0.1675TRX which represents 0.17% of Lend amount.

CONCLUSION
Generating income in Cryptocurrency in a trusted exchange and platform is a must do for every passive income user. It is a win win for everyone who wants to tow trend of earning everyday from the Crypto space.

Thank you Prof @imagen, this is my submission for this week's homework.

Sort:  

Hola @chilaw

Gracias por participar en la Academia Cripto de Steemit.

Mi apreciacion: La forma de describir el proceso de transferencia de fondos y de operar en JustLend, no es el mas adecuado, es engorroso y se presta a confusion.

Calificacion: 7.0

Coin Marketplace

STEEM 0.35
TRX 0.12
JST 0.040
BTC 70541.68
ETH 3582.21
USDT 1.00
SBD 4.74