Crypto Academy Week 7 Homework Post for @gbenga: DeFi Ecosystems and Projects/Protocols By @lhorgic.

Have been learning a lot from the lectures given by my Prof @gbenga and I must say,he is doing a good job. Here is yet another task that I took my time to understudy.

Task:
Write on a Decentralized Finance Ecosystem as well as a Project/Protocol in the Ecosystem

WHAT IS Defi

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Defi which is also known as Decentralised Finance is one of the latest development in the world today.It is built on a blockchain (Smart Contract to be precise) which allows for immutability & transparency in transaction.
What defi does is simple in that it encourages savings, borrowing, lending, trading and other financial transaction on a public network that is accessible to everyone unlike our regular bank or banking system which can be classified as Cefi (centralized finance) that centralizes it operations with stringent rules and regulations.

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We all know how rigorous it is sometime when you have a transact using your bank but with defi the stress is minimized as everything is done on the blockchain and within the ecosystem. It is an open network where anyone can access and transact without any form of restrain or middle man activities
Defi is not governed by any central body neither is there any rules or regulation or stringent laws guiding
It operation unlike Cefi that requires KYC and other requirements before activities can be carried out.
Our traditional banks,exchange market,insurance company are good examples of Cefi ecosystem.

Defi also has it ecosystem and project/ protocols.

Below are the ecosystem in Defi as highlighted by Prof @gbenga. In the the course of his lecture.

"Wallet and Asset Management: Tokeny Solutions, Bitpie Wallet, Cobo Wallet, Enjin, Coinbase Wallet, etc.
Lending: AAVE, BlockFi, Compound, Celsius, NEXO, SALT, e.t.c
Decentralized Exchange and Marketplace: Binance Dex, Poloni Dex, Uniswap, Curve, etc.
Payment: Moon pay, Matic Network, Request, Connext
Tokenization: Securitize, Tokensoft, Vertalo, CodeFi, etc.
Identity: Civic, Blockpass, Bloom, etc.
Stable coin: USD Coin, DAI, Gemini Dollar, Binance USD, etc. - @gbenga

Maker DAO project/protocol.

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Maker DAO is one of the prominent project on the defi ecosystem.
This project was founded by Rune Christensen in 2015.
This project is the type that specializes in lending and borrowing through decentralized etherium blockchain system.
The digital currency used in the project is called Dai.
This currency has been built overtime to level up with USD rate and has been able to stabilize it activities over time.This is why it has been considered as one of the best in the defi ecosystem

Advantages of this project

• it currency (Dai) is tied & also runs along side with other valuable currency such as US dollar which gives it a level of influence and stability in the market.

• It's free from government interference meaning it's fully decentralized. The government has no authority over the system,therefore they can dictates what happens there

• It has a founder which means the risk of investing or transacting on the project is minimal.
  Just like our Prof @gbenga told us.Its is not safe to go for a project that has no founder or CEO.

• This project allows lending borrowing and conversion of ether and other digital currency to Dai.

• The project support repayment of debt paying for goods and other kinds of transaction onbhe blockchain network using it digital currency (Dai) and saves cost.

• With this project,you get a 24hours kind of service meaning you can transact anytime and any day without any constrain unlike Cefi ecosystem which operate within specified hours.

Conclusion
The advantages of using a defi far more outweighs the benefit of using the Cefi and like Prof. @gbenga said,it will on the long run replace the traditional banking system.
The reason is not far fetched,no one one to continue in the inconveniences associated with the Cefi system when there is a very cool and convinient way of carrying out you transaction.
However one has to be careful when opting for a project in the defi ecosystem so that he doesn't fall prey of those who are out to scam or dupe investors.