The Tech Quiz - Season 35

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Good day friends, it's another week to learn something interesting in a crypto currency space. A lot of people have heard or they haven't participate in this particular project or you might not know how this DEFI project works. This contest will enlighten us about DEFI, different DEFI project and what future holds for it. Let start with the contest question.

DeFi in full is Decentralized Finance which means a financial services and systems built on blockchain technology that enabling peer-to-peer transactions, lending, borrowing, and trading without traditional depending on third party like bank. There are different types of projects manage by DEFI like:
🛑Compound
🛑MakerDAO
🛑Uniswap
🛑SushiSwap
🛑USDT
🛑DAI
🛑Non-fungible tokens (NFTs)
🛑Aave
🛑Curve
🛑Synthetix

Like I said, we have so many projects on DEFI because they helps in regulating and making transactions without depending on the third party. This are one of my favorite DeFI project and why I choose it!;

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I choose uniswap and compound in DEFI project. Uniswap is a decentralized exchange on Ethereum allowing trustless crypto trading. If you want to participate, you need to create a liquidity pools by depositing tokens, and an automated market maker algorithm sets fair prices based on pool balances. Trades are conducted directly from wallets, with a 0.3% fee distributed to liquidity providers.

While Compound is also a decentralized lending protocol on Ethereum allowing anyone that participate in it to to lend and borrow cryptocurrencies. In this project you needs to deposit into pools to create a lending reserve, with interest rates determined by supply and demand. The fun part of it is that borrowers can borrow tokens with interest, while lenders earn interest but collateral is required for loans to be secured. So I consider uniswap and compound as my favourite DEFI project.

🛑To me, I think there's going to be a better improvement in DEFI in such a way that there will be Improvements in Ethereum's scalability and the lanching of new blockchains to make cheap and fast transactions.

🛑Also,, imagine when DEFI is been regulated by government unlike today, it will make many people to participate more in DEFI project as well as building a trust with users.

🛑There will also be ability to interact and carry out transaction in different block chain networks which will make DEFI more popular.

🛑In the future there will be high Security and insurance levels to mitigate risks and protect everyone participating in DEFI project. This improvement will expand the DeFi use cases beyond lending and trading and also increases the focus on user experience and adoption.

In conclusion, DEFI helps in carryout transition with waiting for approvements from third-party and we have many projects under DEFI. It's left for you to chose and explore the one that aligned with your interest. My regards.

Cc;
@malikusman1
@wilmer1988