Topic 4: Introduction to Decentralized Finance (DeFi) – A new Fintech Revolution (Part 1) - homework done by @davchi
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I have to start first by giving my overview of the DeFi world.
This is a system of financing that took place at the peak of the discovery of the Bitcoin around 2009.
Hence it is a finance routine which has no Centralized or control point, it further uses certain sophisticated public and private keys used in it's transactions which makes it to be abit difficult as being hacked, as compared also to the centralized system of finance which has a central control system like Banks and some other financial institutions.
Maker or MKR is an invention accredited to MakerDAO which supports the stability of MKR and DAI token that also serve as an alternative to a more fluctuational or volatile tokens.
I can also add that the Maker serves as a counter balance of Cryptocurrencies against the Dollar as partaining to atabilizing it's price value against the Dollar.
This also reduce the weight of cryto transfer as it facilitate low transaction cost to user or traders.
This is a form of let's say market Capitalization which gives users the opportunity to make deposits and also earn interest on their crypto deposits differently. Not withstanding it also gives room for borrowers to leverage on other people's investments to also make higher profit as they pay back at a stipulated time or period.
More so this could be seen as an option called overlying where an investor receives another option called underlying.
As the name implies when we say compound, it means something that is more than one in nature, here it gives one an upper hand in striking more than a price which also has two expiring dates. nevertheless it gives an investor the ability or advantage of a large possibility of leveraging as to make huge or a reasonable amount of profit from trade.
This is a concept in the Defi world which facilitate the vast possibility of synthetic exchange of CRYPTOS, Fiats and other valuables in the DeFi system without any possible hitches. Like the exchange of Fiat to Cryptocurrency and vice versa or either
one Cryptocurrency and another.
This could be seen as an invention in the DeFi world, that has ocastrated room for
possible lending, borrowing and swaps of crypto currencies for trading either on margin or spots without probably going through some external means of funding may be from banks before initiating any trade action.
UNISWAP as the name implies does not necessarily mean one exchange but it is an invention in the DeFi world that has given room for swaps of CRYPTOS on different application crypto swap supporting exchange, which does not call for probably exchanging your earned cryptos before having another one in the DeFi ecosystem.
I wish to appreciate professor @yohan2on for giving me the opportunity to go through the research as I haven't had the opportunity to be on such a quest as this till the apportionment of this task.
Moreso am grateful to @steemitblog for creating such a community as this that has been so informative and educative to us, thanks.
Cc:@steemcurator01
Cc:@steemcurator02
Cc:@yohan2on
Hi @davchi
Thanks for attending the 4th-week Crypto course and for your effort in doing the homework task.
Feedback/suggestions/corrections
This is good work though you need to keep improving on the quality of your articles though doing extensive research and laboring to be creative and as detailed as possible in your articles as that will attract more rewards for you.
Homework task
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Am grateful prof. @yohan2on that you were able to go through my work, it's really my pleasure you accented to it am grateful sir.