The Steemit Crypto Academy Week 7: Introduction to Defi and Yield Farming. For @gbenga by @endersontowers

First of all I want to say that I am pleased to be here as part of the steemitcryptoacademy team, contributing new ideas and leaving learning to those who do not know about the subject and my task can be useful. Starting with the topic, actually whenever the world of cryptocurrencies is talked about, the topic Defi is heard very often and many do not know what it refers to, and others understand that the cryptographic world is locked and they do not know anything at all about the basic definitions of each component that makes up this great world of cryptocurrencies, Defi means decentralized finance, they are networks that are used for open source applications and some protocols with smart contracts in blockchains of the blockchain, in short, everything named It is used to found a transparent financial product or service without dependence on a centralized entity.

This time I will talk about the Compound protocol (COMP).

It is an extraordinary decentralized finance project born in 2017 by Robert Leshner and Geoff Hayes and is currently one of the popular ones by members of the defi ecosystem, compound seeks to create an ecosystem capable of making loans with credits to its investors, creating an interest on their assets that investors have on the platform. This protocol is based on the ethereum blockchain and can operate with Ether (ETH), DAI (DAI), Augur (REP), Basic Attention Token (BAT).

Current market value.

The protocol is essential for investors as it offers significant benefits of defi, but for many track record investors this protocol is very new, but as in this world of cryptocurrencies it is not always based on track record but on facts, then let's see its advantages and disadvantages to know him better.

* If you invest as a form of savings in this protocol, you can earn interest just by using it.

* You can generate income with a small or large investment.

* the ecosystem is decentralized.

* You can take advantage of the volatility of the currency, but many times this can be a guillotine.

* you can redeem your tokens without having to sell them.

* Investors who enter this protocol tend to have a little stress due to the volatility that this currency presents, and it affects those who borrow or enter in the form of savings.

Basically its operation is an exchange system in internal markets in the system based on crypto assets, these exchanges being in real time, according to supply and demand, the update of this market is every 10 seconds. Both the lenders and those who ask for the loans interact with the system to carry out the process according to the internal market.

They cannot be purchased directly with a credit card, this protocol can be acquired through exchange platforms with other cryptocurrencies such as bitcoin, ethereum, through coinbase, binance, myetherwallet.

The defi protocols are often very useful for those who know and handle everything related to cryptocurrencies, but for users who do not have knowledge it can be very fatal, for this I recommend a huge technical advice on everything related to the topic of defi to take away a stable financial ecosystem.

Good luck in your future investments to my beloved steemit team.

Thanks for reading my homework, thanks for the support.