STEEM CRYPTO ACADEMY WEEK 7 HOMEWORK POST FOR @gbenga; SYNTHETIX AND THE ETHEREUM BLOCKCHAIN/ ECOSYSTEM
Hello professor @gbenga, I'm glad to take part in this week's lesson. Below is my homework task, please join me.
Decentralized finance (DeFi) may be described as the process of making financial products and services available and accessible to anyone/everyone without the interference of a third party nor reliance on any central intermediary or middleman.
The Decentralized ecosystem I'll be writing about is the Ethereum blockchain as well as the Synthetix protocol that is being run on the blockchain.
THE ETHEREUM BLOCKCHAIN
Ethereum is a decentralized blockchain platform which permits the modification and distribution of its source code (open-sourced), and wmuses smart contracts to execute command and also build some dApps which operate without entrusting a third party.
The Ethereum technology enable users to send cryptocurrency with minimal charges and Ethereum operates through a globalized interdependent network.
The Ethereum blockchain has several projects built in its ecosystem and has its own currency, Ether.
One of the protocols that runs on the Ethereum blockchain is the Synthetix.
SYNTHETIX
Synthetix is a decentralized finance protocol built on the Ethereum blockchain which AIDS in the issuance of synthetic assets (synths) on the blockchain.
This protocols uses everything synthetic which means synthetic Fiat currency, synthetic Cryptocurrency, gold and silver, etc.
Synthetix is a non-KYC required platform which operates on an incentive system known as staking.
The idea of this protocol was originally conceived in 2017. The person behind this idea is Kain Warwick, a Director of blueshyft.
STAKING
Staking is the process in which users convert their SNX tokens into a pool of collateral to be used by investors for trading and in return, earning a weekly reward. Stakers can also trade with the staked fund as well as exchange it for other tokens available in the blockchain like ERC20 tokens. In as much as staking is profitable, there are some risks involved in it which means there is a possibility for losses to be incurred if the trading turns bad.
SYNTHETIX DEX
Synthetix's built-in decentralized exchange is a system that enable users to trade on the assets listed on it. There are about nineteen assets available for trading on the Synthetix Dex.
The requirement to trade on this exchange is simply to connect it to any web3.0 wallet. Fees charged on the Synthetix Dex is 0.30% which is used to reward users who stake their assets in the platform. In addition to this fees is the gas fees charged on the Ethereum blockchain.
With wallet to wallet transactions on the Synthetix Dex, there are no withdrawal charges.
SYNTH TOKEN
Synth tokens are assets which carry the prices of a real asset. These assets are distributed as a result of staking of the SNX tokens.
In order to create new synths, users can purchase the SNX token and then stake them. Once these tokens are being staked, new synths would be minted.
sUSD, sEUR, SRMB are examples of Fiat synths. Asides this, there are other synths such as Synthetic Binance coin (sBNB) and Synthetic apple (sAAPL).
Thank you so much for having me here. I really appreciate!
Cc:
@steemitblog
@steemcurator01
@steemcurator02
@gbenga
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.
Review
Organized writing, you can improve on your post and its length in the future. The more comprehensive a post is, the more knowledge is shared.
Rating 6.5
Okay Sir. Thank you so much