Hello!!
My dear friends!
This is @md-raju from #Bangladesh 🇧🇩

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Hope that all of you in this platform is doing well. I am also fine by the grace of almighty Allah. Friends, now I am going to submit the homework on Introduction to Defi and Yield Farming' lesson 7' assigned by @gbenga.

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Homework Task

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

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Financial ecosystem

Source
Financial ecosystem consist of all element related to financial matter. Among the major players in the financial ecosystem are:
Providers of capital, Users of capital, Intermediaries, Groundskeepers, Traders of capital. All of these parties make a balance among financial ecosystem.

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Defi ecosystem

In every sector there is an ecosystem.
Like traditional centralized Finance system has an ecosystem, Decentralized Finance (Defi) has its ecosystem which is making it easy for anyone to access Decentralized form of financial services. The Defi Ecosystem include;Wallet and Asset Management, Lending,
Decentralized Exchange and Marketplace, Payment, Tokenization, Identity, Stable coin.
Fiat banking system makes provisions for lending to pay within a fixed time frame. Decentralized Finance for being a decentralized financial system also make provision for lending and borrowing. DeFi ecosystem also like banks gives loans for business and a certain amount is added to the loan as interest. The services rely on smart contract and uses Dapps.
In DeFi systems, there is transperncy of transaction, flexible software and opens among many other benefits.

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Compound project of DeFi ecosystem

Source
A well known project on DeFi ecosystem is compound. Compound is a decentralized lending and borrowing platform built on the Ethereum blockchain.It does not want a third party to manage it. It is always open and frictionless. Borrowed fund is based on certain interest rate protocol. Most of the exchanges keep idle fund in their wallets. Now compound seeks to uses these funds for lending purposes and in turn receive interest for the allocated loans which are paid back on retrieval of borrowed funds.

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Compound interest rate
Everything is done for making interest. So, interest rate is very important part of lending the and borrowing assest. Compound's interest is based on the available liquidity within the protocol at any fixed time . The rates depends on demand and supply of cryptocurrency asset.

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How compound works
Compound protocol makes regulations available to lenders and borrowers for either giving or taki loan by keeping their funds in the system. Interest rates charged on the lender and the borrower are strictly depending on supply and demand of crypto assest whilst the block mined determines the rates of interest.
In case of compound protocol, whenever a user request for a loan, the protocol ensure that there are availablility of funds locked up in the system is more than what he has requested. By this his request is granted and fund disbursed to the borrower. The user is then allowed to do whatever he want with his funds, as soon as he redeems his loan the lock asset which can be called a collateral can then be withdrawn.When a user supply asset to the compound protocol, he is given a token which can be traded and even transfered, assuming you deposit Etherum and recieve cetherum in return.

Risk of the compound protocol

One important type of risk is wallet security. We all know that compound stores cryptocurrency in wallets. This can be hacked and this can pose a serious risk on the compound. But it is rare case.

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Governance on Compound Project
COMP is the goverance token for the compound project. This is used for proposing and voting for upgrades. Token holders and delegates are charged for the management of Compound.

Firstly, I want to thank @gbenga for his informative class. Thank you everyone on this platform.

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Cc :
@steemcurator01
@steemcurator02
@steemitblog