Steemit Crypto Academy / S4W8- Homework Post for @reminiscence01 Topic: Defi Products by @goodspeed22 30/10/2021

Hello friends. Good evening. Here is by entry for this week's homework task.

Question 1a: In your own words, explain DeFi products and how it is shaping the present-day finance.

Defi products are those instruments produced or made so that it can be used in the finacial sector especially digital asset to implement decentralisation in the financial ecosystem. By applying decentralisation, I mean a platform whereby users can perform financial operations on their own without using another person or third party before carrying out any of these operations or transactions. users can have assess to their wallets at any time, connect with other users through peer - to-peer method, and at same time offering a better security to the user's money.

Thus, Defi products allows this method of operations to be possible. For instance, Justlend allows a user borrow money with ease by connecting to other users that provides this funds and other requirements that not hard, JustSwap will permit a user to exchange another cryptocurrency of his choice to the one that he is presently holding with ease in seconds. Defi products also provides insurance against risk, and also permits its users to gain interest from his account that has saving system and many more uses.

Moreover, Defi products are actually transforming the modern day finance because of its numerous uses like staking, liquidity pool and other. It has also seen a great light in the crypto market with market capitalisation of $45 billion and in 24 hours of trade, has $9.1 billion volume from all the trading platforms.

Question 1b: Explain the benefits of DeFi products to crypto users.
To cryptocurrency users or holders, the under-listed values applies:

• Transparency
  The financial operations carryout by Defi applications are seen by all the users. The can seen from anywhere they are, so that they know what is happening in their wallets as these transactions are documented on blockchain. There is hidden financial operation.

• Permissionless:
  Unlike CEX, or other forms of financial system, its operations are open for anyone in the digital market to access and crosscheck to know all that takes place in the blockchain. There is no restriction at all.

• Decentralisation:
  This benefit implies that there is no third person or middle man before any financial operation is done. Individual users access their wallets with their private keys and passwords and this provides them adequate free access to their funds. Thus, they have full control and can secure their assets.

• Low Cost:
  As mentioned above, decentralisation brings about free access to one's funds without any middle man, this on the other hand, heightens the speed of financial operations and cost of operations are bring to its barest minimum.

Question 2: Discuss any DEX project built on the following network.
Binance Smart Chain- Pancake Swap
As one of the Defi products, is built on Binance Smart Contract despite the fact that it performs Centralised exchange services. Pancakeswap is meant for BEP-20 tokens that are developed on Binance Smart Chain. Although it handles swapping services, it also permits its users to earn money through liquidity transactions fees based on AMM protocol.

Through the peer-to-peer system of decentralised system, users store their tokens into a liquidity pool, so that others that want to swap can have access to this pool and swap the token of their choice and those who provide this liquidity earn income from their liquidity accounts as this swap is done.

Pancake also allows its users to stake their coins, like cake, which is a pancake swap. These users can as well earn their reward by holding this CAKE.

Tron Blockchain - JustSwap
This is an automated decentralised platform introduced by Tron blockchain, that gives its users the opportunity to swap or give out TRX or any TRC20 tokens in place of another token that is from the same family within a twinkle of an eye. As a Tron dApp, it is supported by smart contract.

Justswap allow its users to have access to so many projects and their liquidity is unlimited. As a decentralised application, the exchange is done at one's convinence without matching orders and is avalable to all, that is, it a fair and open financial marketplace. Users of this exchange make huge profits with zero commission fee.

Justswap provides liquidity pool by following a protocol introduced in DEX (AMM mechanism). Based on this, users can add to the liquidity pool and then their earnings are determined by the quantity of their contribution. Investors must contribute equal amount on each side of the token. For instance, if a user want to swap 50 TRX to USDT, he must give the USDT equivalent. So that both sides must balance.

Mover, each time a user supply coins to the liquidity pool, he earns bonus.

**Question 3: In the DEX projects mentioned in question 2, 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)

I will like to swap TRX to USDT.

Step 1
I connect my TRX wallet to Tronlink after downloading the Tronlink app from my play store. then I click on Discover and the selected Justswap from the dApp that pop up as seen below.

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Step 2:
My TRX balance is displayed:

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Step 3:
I then click on swap as shown and selected token to swap and inputted the amount, which 5 TRX to 0.50635USDT

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Step 4

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Step 5
It displays the minimum amount received, which is 0.503828,
Price impact <0.01%
Liquidity provider fee 0.015TRX

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Step 6:
Authorisation tips pop up and I tap on continue. It took me to confirm transaction, where it shows my balance from TRX wallet, which is 77.967043, the fee charged by this operation - 344 Bandwidth and I tapped on confirm.

It finally displays swap completed and that's all.

I am really happy to have performed this yransaction, it is my first transaction in Justswap.

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Conclusion
I appreciate this lecture as I now see the part blochain is playing when it comes to financial transactions carryout on Cryptocurrency today. Unlike traditional financial system of operation, that requires the third party, a lot of protocols and at the end waste time as well as cost more. But thanks to this modern methods.

Best wishes to my professor @reminiscence01 and to the Admin.

Reference

Cc: @reminiscence01