Crypto Academy Week 7 Homework Post for [@gbenga]
Hello..!!
My Dear Friends,
This is @eh-shohag from 🇧🇩Bangladesh
The course outline is assigned on...
Write on a Decentralized Finance Ecosystem as well as a Project/Protocol in the Ecosystem.
Prior to discuss the topic we should have the basic concepts on decentralized finance (DeFi).
Decentralized finance (DeFi) is one of the most discussed about trends in the cryptocurrency market. Among us who are new to this trend, the only question is what is Decentralized Finance (DeFi)? It will be clear as follows -
Decentralized finance (DeFi) is not a very perplexing matter. The matter is very easy understandable. Simply think, decentralized finance (DeFi) is the decentralized (without government control) financial process. DeFi system on which the application is created is called decentralization application (DApps). Basically the application is built on a smart contract. For example, BTC, BNB, Ethereum, Neo network smart contract etc.
DeFi system is the opposite of the centralization method. Decentralized finance where your assets and complete control are in your hands. In this case no other third party has control over your assets. That's why there is no need to depend on others for the safety or control of your assets.
Fundamentally, DeFi works through blockchain technology. I have said above thet DeFi is made on a smart contract by decentralized application. It is managed by a system determined by the steps. There is no person or organization has regulatory authority over it here. The whole system is automatic. All transactions are incurred person to person (P2P).
In essence, DeFi is a totally independent ecosystem. The main purpose is that it remains to be seen how fast or as soon as it can bring the whole world to one platform. Waiting..
Let's know about Uniswap in details..
Uniswap is a completely decentralized exchange. We may have seen or used many decentralized exchanges before. Such as: IDEX, ForkDelta etc. But Uniswap is different than these. I hope you will understand in detail how it is different. Uniswap Exchange gives us two benefits. One is Swap and the other is Pool. Today I will discuss about Swap.
For example, imagine that we have a TT token. And we need to buy APEX tokens by selling TT. The matter is that if we want to do this by any normal exchange, then we have to sell TT with BTC, USDT, USDC or BNB. Now we have to buy APEX token with that BTC or ETH again. This process is little complicated but we can perform this very simply using Uniswap directly without much dispute. However, we can purchase APEX directly against TT using Uniswap's Swap method.
source
From aforesaid, someone may say that since there are several decentralized exchanges from the past. In fact, they will say," wecan trade in all those exchanges in existing exchanges."
I will reply them, sure, you can trade there. But, mind it the Uniswap exchange is a little different from the decentralized exchanges that I mentioned earlier. Basically someone doesn't need to take trade entry like Uniswap normal exchange. Discussed point is that don't forget that it's a swap method.
By using Uniswap we can swap any token of our ERC-20 directly. By using IDEX or ForkDelta we can't do as like as it. For this reason, Uniswap has become so popular & well-known. If we see cryptocurrency market, many project tokens are vending through Uniswap.
In this case I have connected the wallet using MetaMask.
If we want to perform swap or pool activity, first click on "Browse" button. If we click on "Add Funds", the wallet will be show the wallet address. Through the address we deposit our funds
Now if we want to swap a token from another token, then we have to click on "select a token". By searching the name of token we can choose ann token in etherium blockchain. The below interface will be shown :
You can search your coin by typing with rectangular box. I wanted to swap between ETH & USDC. That's why I searched USDC coin or token & clicked on the token. The below interface showed me.
Here we can see that the two coins are selected for swap. The picture tells us that ETH will be converted in USDC coin. Just we need to have minimum balance. If we have, we have to fix the USDC balance as per ETH. Then the "Swap" button will be floated in place of "enter an amount. Click on swap button & confirm it again. Thus we can easily swap any token without much hassles.
Note : These screenshots are taken from my MetaMask wallet.
In gratitude I would like to thank @gbenga for disclosing another informative chapter. Thanks a lot.
Thanks for being a part of my class and for participating in this week's assignment. I hope you learned from the class as the aim of the school is to teach and allow people to learn alongside.
Remark
Your writing on the Usages of Uniswap was very comprehensive explaining how to connect using MetaMask, Depositing, and then Swapping. Thanks for giving good screenshots
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