[Defi products] - Crypto Academy / S4W8- Homework Post for @reminiscence01
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Hello steemians, it's with my pleasant greetings to you all beautiful souls, and I am happy to be a partaker in the last session of the steemit crypto academy with a wonderful course by professor @reminiscence01 on ” DeFi products”...Happy reading 🙂
In your own words, explain DeFi products and how it is shaping present-day finance.
In as much as we were asked to explain what Defi products are, I would love to first explain the meaning of DeFi and what it is for.
DeFi is a blockchain-based network that stands for Decentralized finance. Decentralization is part of the main reason for it to be unable to dissolve cryptocurrencies, this gives sole ownership to the buyer with safe and assured security over assets bought.
DeFi is an advanced exchange decentralized platform where further activities like borrowing, lending, staking of assets are carried out in the ecosystem.
DeFi products are different varieties of decentralized finance applications or software built on the blockchain system, where traders and investors have the room for peer-to-peer transactions, liquidity mining, and other recreational transactions they wish to carry.
Defi application/systems were developed to omit the idea of a their-party or intermediary in finance transactions.
DeFi being built on blockchain technology makes use of smart contract as its logical system. The smart contract is an AMM (automated market maker) which do not need or make use of any Intermediary or staff in the transaction of funds, exchanges, and as well as recordings.
Decentralized finances are made up of a peer-to-peer system, this is for instance, in a decentralized application where there is no third party in exchange and transaction making, exchange of currency and transactions are done peer-to-peer from one individual to another with the help of the logical system “smart contract”.
This gives room for a secured and fast transaction with a lesser fee charge. The decentralized finances allow the aspect of “lending and borrowing” from one individual to another through With the help of “smart contract”.
Most decentralized finances are built with the use of the ethereum network. DeFi allows individuals to transact and exchange currencies with one another without the need for an intermediary.
The image below shows some of the examples of DeFi products for lending.
There are lots of DeFi products, and this product serves as a portal to carry out exchanges, lending, borrowing, and other sorts of transactions and staking possible.
The DeFi products have given room to investors and crypto literates to carry out exchanges, lend, borrow and transact money from one individual to the other. This has helped the crypto world in bringing to reality more uses of decentralized applications and systems.
The DeFi products have shaped modern-day finance by removing the presence of an intermediary or third party from transactions and exchanges made between two parties. These have shaped modern finance into keeping secured and safely transferred funds and assets.
The DeFi products have given room to traders and investors to trust the process of their transactions and savings in the decentralized system because it can't be altered or tampered with by anyone.
These DeFi products can be accessed from a different decentralized system like the tronlink pro, trust wallet and other decentralized wallets.
DeFi product has brightened the system of finances in exchanges and transactions between two parties by removing the middle man in the transaction, creating room for a fast and less expense transaction.
Why won't this be the best part of transaction in life? Why not crypto?
Explain the benefits of DeFi products to crypto users.
In as much as Decentralized system/application are Non-user friendly to new traders, DeFi apps are the most secured and dependable means of transactions. So here, I would be talking on the benefits of DeFi products to crypto users.
1 -Decentralization
2 -automated market maker (AMM)
3 -permissionless System
4 -Transparency
Decentralization is one of the greatest advantages of DeFi products to crypto users. The word “decentralized” means that every crypto user has the right to do as wished with their crypto-asset without being governed by a central body who has access to the user’s asset.
With this, investors and traders have strong faith that their assets can never be tampered with or manipulated. Decentralization gives a user right to their assets to do as the wish.
The automated market maker is quite different from DEX (decentralized exchanges), this is because DEX platforms makes use of the “order book” in order to record transactions and exchanges placed by traders and investors.
But the AMM makes use of a different and unique mathematical formula in pricing assets whereby liquidity comes from liquidity providers where tokens are be earned as a reward to users.
The DeFi products are like a free world, where every user has access to the platform anytime and any day. This is different from our traditional go.amcial system whereby the concept and permission from an intermediary must to ascertained before the user can perform transactions.
In the DeFi system, withdrawals are done at will, whenever the User’s wishes to sell of their assets the can, unlike the traditional a financial system where the user must get approval from the bank in other to commence transaction.
The transparency in decentralized system are 100%, here nodes, blocks, transaction details of every transaction made with the currency reflects in it's scan ecosystem.
Here the user can monitor their transaction details because every exchange, swap, transfer, and all other activity performed with the cryptocurrency would reflect on its ecosystem publicly that other users have the right and ability to see the transactions made as well if they wish to.
Nothing is hidden here unlike the traditional bank, where users' assets may be used for other financial purposes displaying fake figures as the user's asset.
Discuss any DEX project built on the following network;
1 -Binance Smart Chain
2 -Tron Blockchain
Firstly, I would be talking on pancake swap which is built on binance smart chain .
Pancake swap is a decentralized exchange platform build on binance smart chain which is among the leading automated market maker (AMM) in the decentralized exchange.
Currently pancake swap trading volume has outperformed uniswap’s trading volume, Because the BEP-20 token used in swapping in pancakewap is secured and efficient.
Because pancake swap is being powered by BSC scan, this makes it a cheaper and with a fast transaction time of 5-seconds more than uniswap.
The pancake swap also provided new project Know as the launchpad In other to lunch there own binance smart chain token (BEP-20).
Developers of the DeFi product “pancake swap”, created a token known as CAKE which the developers used in motivating and encouraging the liquidity providers.
The cake token can be unstaked in the pancake swap ecosystem with a zero holding time. A single lottery ticket in pancake swap cost 10 cakes in a 6 hrs lottery session.
Interesting isn't it?.
Below is an image of how pancake swap looks like
- Fundamental analysis of pancakeswap
Pancakeswap is one of the topping DeFi exchanges with the following features;
PANCAKESWAP | FEATURES |
|---|---|
| Market cap | $4,286,466,414 |
| Market cap/ TVL ratio | 0.7355 |
| Rank | 43 |
| Price | $18 |
| Fully diluted market cap | $4,312,945,261 |
| Total value locked (TVL) | $5,863,903,873 |
| Volume (24hrs) | $416,818,802 |
| Circulating supply | 236,053,362.08 CAKE |
| Max supply | N/A |
| Total supply | 236,087,362 |
- Objectives of pancakeswap
Pancakeswap aims to be a complete developed and established DeFi system which would be an alternative to centralized exchanges. The pancakeswap has many unique objectives such as the provison of secure transactions using the binance smart chains and holding of the cake crypto as a long term investment token.
Due to ethereum high gas price the pancakeswap was invented as a BSC-based token which would serve as an alternative to ethereum -based decentralized exchange in uniswap.
The pancakeswap gives traders and investors the opportunity to earn from the liquidity pool, their initial investment and also some share of trading fee.
They pancakeswap was for the objective of correcting the high eth gas fee in uniswap and also a better version of decentralized exchanges platform for users (traders and investors) to have a more secure and fast transactions.
Some of the important features users’ enjoy making use of pancakeswap are as follows;
- 1 -Yield farms
- 2 -IFOs
- 3 -Lottery v2
- 4 -market Prediction
1 -YIELD FARMS
Users earn reward from the yield farm by staking their cake token making them liquidity providers to the system.
2 -IFOs
Cake holders has the ability to swap their tokens for Projects which has not yet been lunched before its availability to the public, giving them leverage over the return of their investments unlike those who purchased the token after it has been punched.
3 -LOTTERY v2
The Lottery v2 gives users the chance in participating in cake lottery.
Users use there cake token in the purchase of lottery tickets at a cheap and affordable rate, giving them the chance to acquire more cake token
4 -MARKET PREDICTION
Markets can be predicted by users’ by the staking their assets as a bet whether as to a coin would rise or fall in a 5-15 minutes chart, and users who were lucky to win the stake, would as well acquire the stake amount of users’ who lost.
Over to the second DEX project built on Tron blockchain , which I would talking on justswap.
Justswap just like all other DeFi products is a decentralized exchange built on Tron blockchain which is widely considered to be one of the largest platform on Tron system. Justswap was invented in 2020 which was a golden year for DeFi products.
Justswap has about 15k members in there telegram group and over 50k followers on twitter, this made them a quite large social platform.
Transactions and exchanges carried out in justswap decentralized finance is only when the wallet is connected to tronlink pro wallet.
So in other words, if the account is not yet come t to the users tronlink pro, the user cannot access and make use of the justswap DEX.
Justswap has also important features which users’ find interesting and attracting, one of these features is the instant swapping of Trc20 token. This gives the market-makers an instant profit in the market.
Justswap also provides unlimited liquidity, this consistency and efficiency has made it a more used platform for users who wish to swap their Trc20 tokens.
Justswap is a convenient and accessible platform where exchange of tokens are done very fast and with a standby accessibility for users’ who tend to use the DeFi product anytime the wish.
In the DEX projects mentioned in question 3, 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 would be showing the step by step processes on how I swapped my Tron to win token on justswap
I logged into my tronlink pro app
Tronlink pro dashboard
Under the dashboard displaying balance, I clicked on the discover icon, then click on the search bar and type justswap
Screenshot from my Tronlink pro app
The page or site for justswap would open. On the balance bar is your total Tron amount, on the other bar showing from, is the amount of Tron to be converted.
On the to(estimated) bar is the amount of win token I’m to get after conversion.
Under the advanced setting, there is a bar in other to select your preferred token to swap to, I selected win. Then click on swap.
Screenshot from Tronlink pro
I clicked on confirm swap which shows the amount of tron to be swapped, likewise the amount of win.
Screenshot from Tronlink pro app
I clicked on confirm, after checking my Bandwidth fee which is 348.
Screenshot from my Tronlinkpro app
I entered my password in which I used in theRegistration Of my Tronlink pro app in other to confirm my transaction.
This is for a better security purpose against fraud dealers.
Screenshot from Tronlink pro app
Here shows the completion of my swapping from Tron token to win token
Screenshot from Tronlink pro app
Image gotten from Tronscan
I would be showing step by step processes on how I swapped my SAFEMARS to BNB
I logged into my token pocket, then clicked on Discover, the icon showing below.
Then, you would see the different DeFi products, which some would be listed ontop due to its popularity, then click on pancakeswap
Image from Tockenpocket app
On the balance bar showing above, I choose SAFEMARS as my token of preference to swap.
On the “from” bar, I selected the amount of SAFEMARS to be transferred.
On the “to(estimated)” bar is the amount of BNB I would get after the swapping must have been successful. I used BNB because it is my coin of preference to swap to.
On the lower balance bar after the arrow pointing down is the bar where you could choose any token of preference, just like I chose BNB
Image gotten from pancakeswap site
I accepted the market price by clicking on accept. This is due to price change in asset value.
Image gotten from pancakeswap site
I clicked on confirm swap in other to approve my transaction.
Image gotten from Pancakeswap site
I was redirected back to my wallet “tockenpocket” in other to confirm the smart-contract call
Image gotten from Tockepocket app
And that’s all for the transaction of my SAFEMARS to BNB
DeFi product has influenced the mind of traders, holders and investors into making use of the peer-to-peer exchange format by performing their exchanges and trades on a decentralized finance application/system.
This has increased the efficiency and speed in transactions from one individual to another unlike our traditions banks which transfers made take a lot time due to network and other issues.
The DeFi products has brought a greater opportunity and trust due to its decentralized system towards the assurance of a better secured savings. Investors and holders can at least have a systems where the trust the could save their coins without panicking or fear of hackers attacking the system, unlike the decentralized system where we hear and experience our assets being tampered with by hackers and internet fraudsters.
Thanks to evolution in currencies to the point of digitalization and decentralization which has given all crypto users a secured platform to save their coin, make a fast and efficient transactions and also less fee charge.
Thanks to professor @reminiscence01 for a lecture well taught
Happy break 🙂
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