[DeFi Products] - Crypto Academy // S4W8- Homework Post for @reminiscence01

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1 a) In your own words, explain DeFi products and how it is shaping the present-day finance.

b) Explain the benefits of DeFi products to crypto users

Defi means decentralized finance. It is a financial service given to the individual with no central Authority or says without the interference of a third party

Defi is the term for the next generation of finance and products that have been built on and enabled by blockchain technology.
That is to say that blockchain technology is the overall innovation of Bitcoin and Bitcoin is the largest used blockchain technology in today's world.
The whole idea of Defi is to create a new digital financial system that can be faster, transparent than the normal system and also make it global. This means that anyone in any part of the world can use this financial system.

With the help of defi, one can build an exchange, lend money, put up an insurance company, and other related organizations that aren’t controlled by a central owner.

Let’s take Etherum for example,
It helps users to write a decentralized program known as dApps. Through Etherum, one can write automated codes known as smart contracts. Once these codes are written, the user no longer has sole control over them which now makes it decentralized.

Benefits of Defi Product to crypto users

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• One of the core benefits is the fast and low cost of using the Defi: This means that in the Defi system, users get to enjoy a faster way to transfer funds in and out without the delay of time under and less charge, unlike the centralized finance where you charge more.

• Another benefit is that there is no third party needed which makes you the only person to handle your affairs and the only soul holder of your private keys.

• Permissionless: The Defi products are designed for the public to access. Which gives you unlimited access to all the necessary transactions you need. Unlike the centralized traditional system where a user will have to seek permission before he or she gets to access his funds, The Defi system rather intends to work on the opposite which means that you don’t need any permission from no one before you use it.

• Programmable: The Defi system is highly programmable which is why smart contracts are automatically executed and also enables the creation of a new financial instrument.

2) Discuss any DEX project built on the following network.

Binance Smart Chain

Tron Blockchain

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DEX: Decentralized exchange is a type of crypto exchange that offers its users the freedom to choose whoever they wish to make a trade with without the interference of a third party.
Unlike the centralized where all transactions are been monitored, the decentralized exchange offers a safe and secure way of monitoring with the help of a code that is written to be independent ( smart contracts).

Due to its decentralized nature, the system is quite resistant to hacks and theft which makes it reliable.

Binance Smart Chain: Binance Smart Chain is a type of blockchain that was built to run in parallel with the Binance chain. Using the consensus of proof of stake Authority (PoSA), BSC enables the creation of smart contracts for tokens in the Binance blockchain.

It is known that the binance competes with the Etherum network with its contract ecosystem called the binance smart chain. To capture a portion of the Defi liquidity, Etherum and the binance smart chain have the same goal.

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Pancakeswap was built on the balance smart chain which serves as a decentralized exchange that has gained popularity among the individual.
The pancakes was offers standard Defi opportunity, token swapping and Yield Farming, and other forms of liquidity pools. Pancakeswap also stands out by going above and beyond in terms of what decentralized exchanges usually offer. Uses of Pancakeswap have access to lotteries, digital collectibles in a form of non-fundable tokens.
This Pancakeswap assist its users to trade in any crypto they wish without the interference of any other party(third party)

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Tron Blockchain
The idea of Tron blockchain was first lunched in the year 2017 with it's own cryptocurrency called Tron(TRX). Tron blockchain is a centralized based system which uses the feature of peer to peer exchangle without the interference of a third party.

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One of the Tron blockchain projects is the introduction of Justswap.
This is a decentralized blockchain finance that runs on the Tron network. It is known that one of the biggest advantages of Justswap is the speed it takes to process a transcation. Justswap users earns liquidity automatically.
The core benefit of the Justswap is that, it has the ability to provide an unlimited liquidity to it's users and also gives them a wider range of freedom to exchange any type of crypto the want without the interference of a third party.

3) In the DEX projects mentioned in question 2, give a detailed illustration of how to swap cryptocurrencies by swapping any crypto asset of your choice. Show proof of transaction from block explorer. (Screenshots needed)

• lunch your Tronlink wallet and click on browser at the down side of your screen.

Screenshot taken from Tronlink wallet

• Click on Justswap and wait for it to load.

Screenshot taken from Tronlink wallet

• On the just swap home page, select the token you will like to swap with and for the sake of this, I am going to select USDT.

Screenshot taken from Tronlink wallet

• Input your amount and click on swap

Screenshot taken from Tronlink wallet

• A dialog box appears asking you to confirm your Swap. It takes you through a series of confirmations and all you need to do is to confirm all until the swap is successful.

Screenshot taken from Tronlink wallet

Conclusion

First of all I just wanna say a big Thanks to professor @reminiscence01 for giving us search a wonderful lecture on Defi.
Indeed the decentralized finance is the present day world need right now since it helps in fast transactions, it also helps user have the choice to choose on who and when to trade their token with and also on the type of platform they will like to do that.