Hello Project Hope community and Steemit in general, we can already start with the second challenge presented by @steemitblog, in which we can talk about something that is revolutionizing finance, making a lot of capital move, and leaving many benefits in some, as well as losses in others, I must emphasize, the reality is that any type of investment has its risks, but the way to combat or minimize these risks is by educating yourself and researching very well before investing.

In this case, with the Steem Crypto Challenge Month #2 : Diving into DeFi that @steemitblog carries out with the support of @steemcurator01 and @steemcurator02 I can make concrete some ideas that I have in relation to what I think of DeFi, and my small experience in this decentralized financial world through SUN.io. I will make at least a couple of publications about it, and I will allow myself to extend a little bit to make some approaches I have in relation to this topic, so let's start.

The first thing that we must start is to have clear what is this of DeFi?, because if not we will not know what we are talking about, in addition, it is necessary that we leave these points clarified because there are people who are entering the world of cryptocurrencies through steemit and they can think that this is the only way to work with cryptocurrencies, to win them, and really they would be having a very limited vision of the reality.

Well, DeFi means DeCentralized Financing, ok, this is clear, but what is that for?, I explain it in a simple way through a comparison with what people know and use frequently to manage their Personal Finance, this is a Bank. Those sites where most people open accounts (savings or checking) and leave their money so that that entity can "take care of it", for this to happen they generally charge you for maintenance of your account, for providing them with tools that allow them to move their money, among other things. In addition they (the banks) use your money to make loans to other people and charge a large interest, which will leave a large benefit, eye, to the banks, you as a saver will only receive a few cents, but will have to pay for this to happen. This is the way finances have been handled for decades, in a Centralized way. I hope I'm being pretty clear up to here.

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But, what has to do DeFi in all this, what I explained before is the model CeFi (Centralized Finance), DeFi is the opposite. You do not give the responsibility to anyone to operate and benefit from your money, but all the movement of your funds is at your charge, but through a smart contract, well, I have added another term that may be new to some.

It's important to understand this intelligent contract, because it's the lifeblood of DeFi finances, the way it has eliminated direct involvement in money management decisions. In other words, this smart contract is a computer program that relies on a Blockchain to be executed, and only when everything is fulfilled is it carried out. We see in this platform something similar with the benefits of the publications, they are charged and arrive directly to our Wallets only when the 7 days of circulation of our posts are fulfilled, have you noticed, only this way, without the intervention of any of us it is executed, it is previously configured this way.

Having these points explained a little more clearly beforehand, I'll move on to the next, I'll explain the general operation of DeFi, based on my personal experience.

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Every financial system needs solvency or Monetary liquidity, in order to work properly, that is, to be able to make loans, maintain optimal levels of movements of some specific cryptocurrencies or of several, and the profits of these movements (purchase/sale), of the loans are those that allow to generate profits in the investors, who are those who maintain and give stability to the system. Well, you could say that this is basically what banks do, and I would answer that yes and no, why, because in this case each of us has immediate access to our funds, the moment we want to withdraw them, we do it and that's it. In addition, the profits are arriving permanently to our Wallets, and not monthly as in the banks, I must also say that all this process of distribution is executed by a Smart Contract (explained previously), that there will be no delays in the execution of this.

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As usual, @steemitblog leaves some questions in its publication regarding the contest, which in a way can serve as a guide for those who want to participate in the challenge. The first of those questions, I think I have answered it in the development of this post, that question is:

What's DeFi in your mind and have you ever bought any DeFi tokens?

To conclude with this publication that already goes quite extensive, I want to delimit that my experience with DeFi, until now, has been only with SUN.io, I have SUN, JUST, and obviously TRON cards, besides the SUN that I have gained offering liquidity to this ecosystem.

But within this new financial ecosystem called DeFi, which has exploded this year, the best known is that of UNISWAP, based on the Blockchain of Ethereum**. I don't know it very well yet, I'm taking my time to understand it. Because in addition the amounts to enter are a little more elevated, besides that the collection of commissions is a little high for my capital.

For now I have finished with this first publication of this challenge.

Thanks in advance to @steemitblog, @steemcurator01 and @steemcurator02 for their support.

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