The Steemit Crypto Academy Week 7: Homework Task | DEFI Ecosystems and Projects ,Protocols

I mean it when I say decentralized finance. I always tell people that "open finance" is a much better term for this movement. Open access to financial services regardless of location or background, as well as instant clear access to any financial service desired.

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DEFI or Decentralized Finance

It's become standard that we work with the traditional financial system, putting money in a savings account and earning practically nothing on those savings. But, at the end of the day, we don't trust them to act in our best interests, even though we know we're reliant on them because, in many cases, they appear to be our only option.

DEFI, or open finance, flips the concept of reliance on traditional financial services provided by centralized controlled institutions on its head, proposing that what if you could bring all of the same services you expect from your traditional bank or services to your home?

Smart contract platforms, also known as decentralized applications, are fancy terms for applications that allow you to earn interest or make trades without having to deal with any middlemen. You're doing it in a programmable network where your funds are held by no counterparty or third party at the end of the day.

DEFI LENDING(ECOSYSTEM)

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In a nutshell, what is DEFI lending? It makes use of something called collateralized debt positions, or CDPs. You may have heard of these before, but what they essentially do is allow you to lock up your crypto coins with smart contracts in exchange for loaned stable coins.

This allows you to leverage your existing crypto assets by using those stable coins to buy even more crypto, thereby increasing your overall exposure (this is the gist of margin trading), and then you can get your original locked up crypto back when you return the staple coins.

What are some of the reasons people want to do this? Defi lending can be used for almost anything as long as you have cryptocurrency to use as collateral. Anyone can access this because there is no need for know your customer (KYC) or identity verification.

KAVA(Project/Protocol)

What exactly is KAVA? And how does it relate to defi lending? Well, they have their own defi lending platform, and they plan to support Binance Coin first (BNB, BTC, XRP, and Atom). You can use these to mint their stable token USDX, and they're built on CosmosSDK so that they're fully interoperable with other block chains.

Photo screenshot from kava.io

How to borrow Using KAVA?

This video will help or guide you on how to borrow on KAVA.

CONCLUSION

We are here in this day and age that we can't trust the traditional banking or lending system, so that is why I think DEFI defies the old system and created projects and protocols that helps individuals whether its traders or normal users to maximize the security without the needs of intermediaries that causes extra costs and extra time as well. Thanks again to one of our great prof, sir @gbenga for another outstanding lecture.