Crypto Academy Week 4 Homework Post for @yohan2on [Introduction to Decentralized Finance (DeFi)]

We enter week 4 of the Steemit Crypto Academy, this time I want to make an article that will discuss the homework given by professor @yohan2on. As for this homework, I will discuss some of the DeFi DApps that the professor has given, including Maker, Compound, Synthetix, bZx, and Uniswap.

Maker

MakerDAO is a decentralized credit platform on the Ethereum blockchain, this platform creates a Token called a DAI which is a Stable Coin. What you have to remember is that a stablecoin is a cryptocurrency whose value is pegged to the USD due to market volatility, so the price hardly goes up or down. Maker DeFi provides an opportunity for each user to lock collateral such as ETH or BAT, and generate DAI as a debt against the collateral. DAI lightens the burden of ETH transfer fees as they are.

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Coumpound

Compound is a DeFi-based protocol engaged in financial lending which functions as a money market that allows users to store cryptocurrency assets and earn interest on assets from time to time as well as offering users the opportunity to borrow crypto assets against them (which requires repayment at the appointed time). The compound name is inferred from its operating protocol which allows the user to deposit and earn, and also offers loan assets provided by others in the system.

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Synthetix

Synthetix is a protocol project that provides the opportunity to publish synthetic assets on the ETH blockchain, supporting synthetic assets such as Gold and silver. It also supports synthetic cryptocurrencies, synthetic inverse cryptocurrencies, synthetic fiat currencies, and synthetic cryptocurrency indices. Synthetix brings non-blockchain-based assets into the crypto ecosystem to facilitate a more mutually beneficial and versatile financial market.

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bZx

The bZx protocol is a collection of smart contracts built on Ethereum. The protocol concentrates on lending and margin trading and is usually similar to another popular DeFi product called dYdX. The biggest difference between the two margin trading protocols is the basic usage of tokens in the bZx protocol. There are three main tokens in the bZx system: pTokens, iTokens, and BZRX tokens.

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Uniswap

Uniswap is a crypto exchange that runs entirely on smart contracts, allowing you to trade popular tokens straight from your wallet. This is in contrast to exchanges like Coinbase, which store your cryptocurrency for you and keep your private key for safekeeping. Uniswap uses an innovative mechanism called Automated Market Making to automatically verify trades near market prices. Adding to the trade, each user can become a liquidity provider, by supplying cryptocurrency to Uniswap contracts and getting a share of the exchange fees.

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Conclusion

DeFi is something that is still new in the crypto world, we should take advantage of this momentum to be able to study DeFi DApps in more detail, I am sure we will be able to get a lot of profit from this DeFi.

cc: @steemcurator01
cc: @steemcurator02
cc: @yohan2on
cc: @steemitblog