Decentralized Finance Ecosystem and project "PancakeSwaps"
Over the years the Centralised finance system also known as CeFi, and ruled the Finance Ecosystem, which has led to so much time wasting, frauds, hacks, ridiculous Government policies and taxes, even delays of transaction most times, and it's that bad that whenever I need to go rectify a matter at the bank, I dedicate that whole day due to delays and so on., until the birth of the Decentralized Finance Ecosystem.
the Decentralised system is based on the blockchain and has made carrying out transactions as well as financial services not a pain in the neck, due to its permission-less, fast and stress-free features, the Decentralized Finance Ecosystem is rapidly taking over the finance sector.
WHAT is DEFI
DEFI which is short form for Decentralized Finance is a system that provides open and permission-less access to any kind of financial service you would want.
It is best to look into the kind of world we live in today when it comes to finance to be able to better understand the DEFI system, the typical standard for people in the world today is dealing with the traditional system of banking, no matter the kind of bank, either American bank, Swiss bank or any where in the world.
DEFI Ecosystem
Imagine putting money into your bank account and practically getting extremely little or no interest at all, no matter how long the money stays in the bank, it's become a thing of norms to trust our traditional banks to save our money but don't trust them well enough when it comes to getting some interest attached to our money banked with them.
Take for instance I intentionally saved about $400 USD for several months approximately almost a year in one of my account just to see how much interest I could acquire over time, only for me to get an alert of just 60 cents, and immediately I saw it I bursted into laughter, but such is unlikely with the DEFI Ecosystem.
A lot of us knew when BTC started, and at the time I even got the info it was selling for less than $ 200 USD, but currently one BTC is worth $ 55,595 USD, though some people may say it took years to get to such level, but my point is in a Centralised system like out traditional banks, no matter how many years you try to save your money into their banks, it can never and will never yield such profit.
The DEFI Ecosystem is based on the blockchain, Ethereum precisely and solely takes on the same concept of the Centralised finance system, but flips it over its head, which in turns possess a honest, transparent, permission-less, fast and reliable service.
It won't be a thing of surprise if DEFI fully takes over the financial industry at large.
PancakeSwaps
PancakeSwaps is a blockchain based AMM(automated market maker) on the Binance smart chain, which allows users to uninterruptedly exchange tokens as well as earn cake.
If you're already familiar with the "SushiSwap" or "UniSwap", then you'd have no issues understanding the PancakeSwaps.
The PancakeSwaps can also be referred to as a Decentralized Exchange in which BEP-20 tokens can be swapped.
Asides from swapping of trading BEP-20 tokens you can as well add liquidity and earn rewards.
Note that's there isn't an order list where you're matched with another using during the swap process but rather you trade against a liquidity pool.
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.
Remark
Pancake Swap is just as popular as Sushi Swap, JustSwap, or Uni Swap but you didn't explain in detail the Defi exchange.
Rating 6