DeFi Project - Crypto Academy / S4W8- Homework Post for @reminiscence01

Introductions to DeFi

DeFi means decentralized Finance. Decentralized Finance is a unique cryptocurrency concept in the public blockchain system that created to discontinue the normal way financial services are rendered to individuals in our present day world. It is a fast advancing cryptocurrency concept that wishes to eliminate the involvement of third party while making transactions anywhere in the world. It is a financial crypto application created with the use of blockchain technology leaning on smart contracts to operate.

DeFi is made up of applications and person to person applications platforms created on blockchain networks controlled by their users with full access making it easy for them to be used for lend and borrowing services as well as a swift trading of financial assets.

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Question 1. (a) In your own words, explain DeFi products and how it is shaping the present-day finance. (b) Explain the benefits of DeFi products to crypto users.

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DeFi Products are cryptocurrency financial instruments developed for the attainment of the intended decentralized nature of cryptocurrencies where every individual has a form of control over their financial assets where access to financial services such as lending, borrowing and exchange of one asset to the other using a swap function (provided on almost every DeFi) are provided.

DeFi wants to make the world a better place because access to financial service is a major problem of the world's economy. Products such as lending and borrowing, individuals have an unlimited access to their assets and assets provided in the DeFi space to be able to meet up with their financial needs.

People can comfortably save their crypto assets on DeFis and also earn rewards while their assets are locked up in DeFi pools.
Lending for instance eliminates the idleness of some assets making it possible to provide loans to the a system, providing liquidity and also other users of a DeFi. This is done to get annual yield which is a percentage provided by the system for the particular asset loaned.

Also, borrowing enables users of DeFi who get short of financial assets to still have access to finances from the system or other users helping them to borrow and pay back with a certain interest. To be able to enjoy this, a user need to have given out loan to the system before he can borrow.

Users who wishes to swap their earnings in due time also have the swap function to be able to change their accrued financial assets to currency of their choice using DeFi.
As all these products are enjoyed on DeFi, individuals need to be rest assured that their funds are protected therefore they cannot lose them.

The financial system we have in the world today has being shaped by the presence of DeFi and its products. Individuals can get free access to get loans without having to go through a rigorous process and also providing just little as collateral. Also, individuals who can provide lending services can automatically get some accrued benefits because the DeFi operations are trusted systems. No bridge of agreement can happen as the system records the transactions. These services provided by DeFi has made individuals enjoy this services on trusted platforms better off than the traditional system of the world.

BENEFITS OF DEFI PRODUCTS

DeFi products have many benefits that they present to users. I shall discuss some of them.

1. Free Access to Financial Services: Every user of DeFi has free access to financial services such as lending and borrowing. Users need no permission or authorization to be a part of these DeFi products. Anytime, any day and any where, one can access DeFi products without having to gain access through an authority.

2. DeFi products can be seen and used by everyone.
   DeFi products are not locked up on DeFis where they cannot be seen. They are displayed for everyone to see. Supplies of some assets are displayed with the interest rate they would yield for users so also borrowable assets have interest rate which users would pay back after the period they borrow an asset.

3. Decentralization.
   DeFi products are used in a way where a central authority is not stationed to control there working. Users can get whatever products with any measure of their assets they have in their wallets. This means they are in total control of their funds and whatever they do with them is up to them.

4. Transactions are done at Low cost.
   The cost of carrying out a transaction involving DeFi products is very low due to the speed of transactions. As this is so some of the products on DeFi can be expensive in the sense that they burn tokens to execute transactions.

5. Security of Assets.
   Assets used to purchase DeFi products are secure. No loss can be incurred with the use of DeFi products. Users only have to play their parts well in the security of their accounts to make their funds secure. As for the system, it has been structured securely to protect each user fund.

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Question 2. Discuss any DEX project built on the following network. (a) Binance Smart Chain (b) Tron Blockchain

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DEX Projects Built on Binance Smart Chain

Out of the numerous projects builtbon the Binance Smart Chain, I shall discuss PANCAKESWAP.

PANCAKESWAP

PancakeSwap is one of the leading decentralized applications on the Binance Smart Chain. It has a DEX and DeFi that provides users with platform to exchange and enjoy DeFi products in the DeFi market.

PancakeSwap is one of a growing wave of DeFi platforms that let crypto traders to conduct transactions with trade tokens without paying a significant fee to a middleman. It is one of the largest DEXs on the Binance Smart Chain, despite the fact that there are DEXs on Ethereum (such as Uniswap) with far larger average trade volume.

PancakeSwap allows users to immediately unstake their CAKE tokens making it a more unique platform. The lottery period on PancakeSwap is six hours and each of these periods cost 10 CAKE tokens.

PancakeSwap supports BEP20 tokens and allows the swapping and staking of these tokens among themselves at a very low cost.
BEP20 tokens supported PancakeSwap are BNB, CAKE, XVS, SAFEMOON, TKO, ALPACA, BELT, BTCB, BUNNY, BUSD, ETH, EPS, NRV, VAI, WBNB and USDT.

Features of Pancakeswap

1. DEX: Pancakeswap has a swap function that enables users to trade their tokens for others. The price for exchange is provided using Automated Market Maker technique.

2. Liquidity Pool: This feature is used to provide liquidity for some tokens. Yield Farming and staking are the two ways of providing liquidity. These are the best ways to earn CAKE tokens using the DApp.

3. Lottery

The CAKE token is used to reward users that provide liquidity.

PancakeSwap can be accessed through the Trustwallet DApp browser or mobile application.

DEX Project Built on Tron Blockchain.

There are so many activities built on Tron Blockchain but I shall be talking on JUSTSWAP

JUSTSWAP

JustSwap is an Exchange platform built on the Tron blockchain network for swapping of cryptocurrency tokens that are of Tron blockchain standard. It can be accessed through the TronLink just like some other DEXs supported by Tron blockchain. JustSwap as the name implies is a trading platform where user can trade there cryptocurrency assets (TRC20 tokens) to others with low transaction fees and a fast network.

JustSwap uses the Authomated Market Maker technique to provide the price for the swapping of tokens as there are no order books in DEX. The Authomated Market Maker used by JustSwap use DEX Aggregator to compare prices of tokens in other DEX and chooses the best for pricing for each order.

With JustSwap users can enjoy low cost of transactions, easy access to unlimited liquidity and earn. It is available to all users and trades can be done at anytime.

The two main features of JustSwap are the Swap and Pool. Numerous traders and liquidity providers use JustSwap to exchange their tokens and provide liquidity for some tokens at will. They can remove their liquidity at any point in time.

JustSwap supports all the TRC20 tokens which includes TRX, WIN, USDT, BTC, WBTC, ETH, WETH, TUCD, USDJ BTT, SUN, DICE, NFT, UDSC, LIVE, HT, and LTC. On JustSwap all these tokens are paired to one another that means they can be traded for one another at a price provided by the JustSwap system.

Liquidity is also available for each of this tokens. This is done on a pair to pair basis where equal liquidity is provided for the paired tokens chosen by a user.

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Question 3. In the DEX projects mentioned in question 2, give a detailed illustration of how to swap cryptocurrencies by swapping any crypto asset of your choice. Show proof of transaction from block explorer. (Screenshots needed)

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How to Swap Cryptocurrencies with the use of PancakeSwap.

To be able to do this, some BNB must have been sent to binance smart chain wallet address on Trustwallet. I had already done that.

The steps to swap using pancake are these are below.

1. Launch Trustwallet application and click on DApps.
2. Click on PancakeSwap after scrolling down to it on the next page.
3. The PancakeSwap exchange would be displayed, click on connect to connect wallet, choose Trustwallet or Metamask by clicking on it.
   4.Once it is connected, select currency and enter amount to be swapped, then click swap. On the next page, confirm the swap.
4. Approve the transaction by clicking Approve.

How to Swap Cryptocurrencies with the use of JustSwap.

The steps below can be followed to swap cryptocurrencies using JustSwap.

1. Launch your TronLink application and click on Discover.
2. It would navigate to a new page, scroll down and you will see JustSwap among the exchanges, click on it.
3. The JustSwap DEX would be launched, enter the details by clicking on choose tokens and entering amount and click on swap.
4. Confirm the transaction and click continue to authorize the transaction.
5. Click on confirm after confirming your details and enter finally enter your TronLink password and click done.

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CONCLUSION

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Cryptocurrencies like Tron, Ethereum ns Binance blockchains are after building a decentralized financial structure that would enable people get unlimited access to money and valuable cryptocurrency assets.

DeFi is an evolving part of cryptocurrency that is already gaining ground. Decentralized Finance use the power of blockchains like the ones listed above to with the help of smart contracts which they use to provide services that the world needs. The major DeFi products are lend and borrowing and swaps in major DApps. DeFi in its specialty provide pending and borrowing services for the tokens supported by the blockchain on which it is built. Some DeFis also have the swap functions which help users exchange their tokens for others quickly and at a very low rate.

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Cc:
@reminiscence01
@wahyunahrul

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