Crypto Academy Week 7 - Homework Post for [@gbenga]. Introduction to Defi and Yield Farming.
Hello Professor @gbenga, Thank you for another week of insightful class in which we can learn new concepts about Blockchain and Cryptocurrency. This week 7 Lecture is very Helpful and Educative. Let's get started with the Task.
INTRODUCTION
As Cryptocurrency market is Widely expanding and growing. More discoveries are made every day. Because Cryptocurrency and Defi is going to become the new Normal.
Just as Proffessor stated
Decentralized Finance (Defi) refers to the use of decentralized networks such as open-source applications, and protocols built on Smart Contracts of blockchains to create a decentralized financial service or product which is often transparent and built on a permissionless blockchain there by reducing almost entirely one person's control over Transactions.
information and Technology Technology witnessed a major shift because of the invention of the internet, Recently we are seeing how Cryptocurrency and blockchain technology is creating a new global financial infrastructure that combines both existing markets and completely new ones directions.
The main advantage of such a decentralized financial system (DeFi) is that the only condition for access to its services is an Internet connection, which greatly simplifies the process of participation, reduces costs, reduces the possibilities for censorship and manipulation by centralized organizations that own and control infrastructure underlying existing financial markets. And this is a land Slide achievement
A Project/Protocol in the Ecosystem.
Synthetix
Source
https://medium.com/mercuryo/defi-an-overview-of-the-decentralized-financial-ecosystem-43b9ec771bd0
Synthetix is a decentralized platform on the Ethereum blockchain for creating synthetic crypto assets, the value of which is tied to the value of real assets.
As of June 2020, there are over 40 Synthetic assets on the platform, most of which are tied to top cryptocurrencies, as well as to some fiat currencies, commodity indices, and stock market shares.
In total, the Synthetix DeFi service includes three decentralized applications (Dapps):
- Exchange — a trading platform for exchanging synthetic assets without intermediaries.
- Mintr — an application for issuing Synth assets by blocking SNX tokens by their owners.
- Dashboard -statistics dashboard Synthetix Network.
In addition, users Synthetixcan use ETHEREUM as an alternative collateral method with a collateral ratio of 150%. However, in this case, users are not included in the general debt pool and, as a result, do not receive any additional rewards.
CONCLUSION.
There are soo many Advantages Decentralized finance have.
- Accessibility for any user, regardless of his geographic location, credit history and other restrictions that exist in a centralized financial system.
- Transparency of all transactions in the blockchain. Also, all smart contracts are open source, which can be easily audited and identified for possible vulnerabilities.
- Flexibility of the software interface — the user can use any convenient interface offered by third-party developers or created independently.
- Openness (Permissionless) allows users to directly interact with applications through browser extensions (or software wallets), and also provides the ability to create their own applications
- Interoperability provides amazing opportunities to combine new DeFi applications with existing services (like Lego) that interact with each other through universal protocols and can be combined to create completely new products.
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
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Source: https://medium.com/mercuryo/defi-an-overview-of-the-decentralized-financial-ecosystem-43b9ec771bd0