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Introduction

My name is @mituu. I am new to this project. Reading is actually an uninterrupted process, and no matter how much I learn about blockchain and cryptocurrency with Steemit Crypto Academy, it will never end for me, as Sir @gbenga said. And since I am new, I have to study a lot. I will try to complete the seventh (7th) class homework at @gbenga Fertilizer's Steemit Crypto Academy today. In this course, I will try to complete my homework about the world of Defi.

Introduction to Defi

The world is creating new ideas every day. And I think there is no break in learning or learning what is new in this world. Especially in the case of cryptocurrency, no matter how much you learn, your learning will never end. But it has become a means for us to learn that it is steemit that through our crypto academic professors we can learn better about this now. This week we are back again to share information about DeFi and Yield Farming. I search in many places to know about Defi and I can understand from our Professor Sir @gbenga in many discussions about Defi. Defi is the best aspect if I say that those who will use Defi will be able to easily perform peer to peer financial transactions. Defi is a financial system built on decentralized finance technology. So that through this system Defi users can get financial services faster without having to follow the long term financial bureaucratic process that has happened so far. Until now, users of traditional financial services have often complained about the limitations of financial transactions, but through the blockchain system, everyone in different parts of the world can manage unlimited financial transactions.

History of Defi.

Everything starts a new chapter. As anyone can argue defi started with Bitcoin in 2009. Although Bitcoin will be considered the first default currency, it didn't happen until Ethereum introduced the Smart Contract in 2014, it became a reality. In 2018, several projects began to be involved in popularizing Defy. DFI is nothing new to the world. The first financial application built on blockchain technology. Simplicity is widely used today as a medium of transaction without the involvement of intermediaries adopted by various traditional financial sectors and blockchain actors in general, DFI, but not everyone understands this because the process can be done using the Internet network, so only a few groups Taking this action after switching from.

Decentralized Finance (Defi) vs Centralised Finance (Cefi)

The first idea we have about Cefi is that by Cefi we mean our regular financial system. That could be the example of traditional central banks, insurance companies, and stock exchange market central funds, in fact, many exchange centralized finances in cryptocurrency spaces such as Binance Polonex, Hubi, etc. With Safe, each transaction is handled by an intermediary.

Currently, in cryptocurrency, Cefi still has a lot more names than Defi, because most exchange firms are centralized, so many projects are centralized, and so on. Centralized finance follows government rules to be effective and able to carry out their activities.

DeFi Ecosystem

The definition of DeFi is a concept of a financial ecosystem living digitally on a shared infrastructure. In this world, typical financial services such as borrowing, lending and trading exist, but they operate on a public network, meaning it’s accessible to anyone with an internet connection. Open-source protocols or modular frameworks are relied upon for creating and issuing assets on this network, much like email exists today. Below we listed a few companies in different categories that comprise the DeFi ecosystem.

If you would like to be included in the list, please let us know.

ASSETS TOKENIZATIONCOMPLIANCE & IDENTITYMARKETPLACES & LIQUIDTYINFRASTRUCTURELENDINGPAYMENTSPREDICTION MARKETSSTABLECOINSWALLETS & ASSET MANAGEMENT source

Yeild farming and Defi

Yield farming is a way to make more crypto with your crypto. It involves you lending your funds to others through the magic of computer programs called smart contracts. In return for your service, you earn fees in the form of crypto. Simple enough, huh? Well, not so fast.

Yield farmers will use very complicated strategies. They move their cryptos around all the time between different lending marketplaces to maximize their returns. They’ll also be very secretive about the best yield farming strategies. Why? The more people know about a strategy, the less effective it may become. Yield farming is the wild west of Decentralized Finance (DeFi), where farmers compete to get a chance to farm the best crops.
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Yeild Farming Protocols/Platform

Yield Farming has undoubtedly become one of the most trending topics in decentralized finance and there is a well-defined reason for this hype.
Yield Farming may be defined as an effective mechanism to maximize the return of investments with the help of various DeFi protocols.
The process of Yield Farming involves various strategies where the yield farmers(people who follow the practice of Yield Farming) jump from one DeFi protocol to another with one common goal, maximizing their profits.2

Conclusion

It is still in its nascent stage, and therefore nothing can be predicted for sure. The DeFi synthetic space needs continuous research from developers and financiers to bring innovative instruments in DeFi space, thus allowing real flexibility and ease of access and use.

Cc:-
@steemitblog
@steemcurator01
@steemcurator02
@gbenga