The Steemit Crypto Academy Week 7: Introduction to Defi and Yield Farming @gbenga
Source
Introduction
First of all thanks to #Criptoacademy for always being at the forefront of crypto decentralization, thanks also to professor @gbenga for the work he is doing in the community. i am @laser145 and this is my assignment number 7 of week 7 i will talk about the DEFI a brief summary and an example of a defi project thank you very much.
We are talking about DEFI
The control by the monetary power has been linked to the centralization of the banks and what better control than the monetary one is where all the world finances are centered, with the arrival of DEFI that is relatively new a new world was created opening minds and decentralizing everything that we looked impossible now we can save even make our money grow with only having access to a network.
You have to study very well have you heard of performance farming? well I will tell you something short about it, through your assets you can generate more assets, yes because it blocks the tokens to provide liquidity in the liquidity pool. these funds are used for lenders and exchanges. but eye you have to be very careful when choosing because there are many scams that are waiting like hungry vultures inexperienced victims to defraud.
Example of a DEFI project
What better example than a stable currency, we are talking about the USDC.
is a currency that works with DEFI for being decentralized is an ERC-20 token was created in September 2018 by the consortium of the center, the USDC currency was created with the aim of providing stability against volatility in the Digital market so convert a centralized currency in a decentralized digital currency, this means that for every 1USDC will receive in return 1USD or vice versa. each USDC token is backed with $ 1 US dollar, its market capitalization is currently more than 10.6
USDC Security
Is a company created by coinbase and circle registered in the united states which gives us a lot of security when it comes to safeguarding our assets in it, It is also registered as a money services company with endorsement in Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department. The money is distributed in 48 states and has a license in BitLicense of New York and a Financial Conduct Authority endorsement. These notes are very important for all investors and people who want to use this currency as protection to feel more secure and can do so with more peace of mind and confidence.
Advantages and Disadvantages
advantages
Its popularity on the Daaps or Dex is quite wide.
The security is very well developed.
It is faster than other stablecoins because it is linked to Ethereum's chain.
Disadvantage
It is a centralized model
It is managed by third parties
It is not transparent with the management of reserves
It cannot be used to make hold because it is a totally stable currency.
Source
These are currently all the portfolios that are accepted by USDC
Conclusion
Thank you very much for reaching the end of my research I explained what is DEFI for what it works on how to earn on DEFI farm, and I also gave as an example a Defi project, really defi is changing the world and we are just at the beginning I see a great future for decentralized cryptocurrencies this means that there will come more surprises among those projects that will change once and for all the total centralization of conventional banks in the not too distant future. i thank the curators @steemcurator02 , @steemcurator01 and to the professor for his work @gbenga
THANK YOU FOR YOUR VISIT
by @laser145
Thanks for being a part of my class and for participating in this week's assignment. I hope you learned from the class as the aim of the school is to teach and allow people to learn alongside.
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