Before entering my homework I would like to thank @yohan2on, for his very informative class: Topic 4: Introduction to Decentralized Finance (DeFi) - A new Fintech Revolution (Part 1).

Well, I will answer the homework, which is briefly explaining some of the DeFi DApps that the professor has given: Maker, Compound, Synthetix, bZx, Uniswap.

But before getting into the discussion of DApps, I will first explain about DeFi so that readers understand clearly.

DeFi (Decentralized Finanace)

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Since 2019, the term DeFi has become a hot topic not only among blockchain industry actors but also financial industry players in general. DeFi also goes by several other names. Some say that DeFi is "Finance 3.0" and then some say "open finance", or "affordable finance". Here, DeFi tries to move various traditional financial services such as lending (lend, borrow, loan), trade, saving, transfer, insurance, remittances, and so on to run on the ETH blockchain network system that has been decentralized.

If we put it simply DeFi is a financial system that does not have third-person interference or the term is without intermediaries. With DeFi, crypto-assets can be transferred, traded, transacted, or even used for other financial activities.

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1. Maker

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MKR was created by MakerDAO which managed to absorb a large number of users and made it a very popular application among financial service users. Initially, MakerDAO was a token that was a StableCoin named DAI.

DAI is created using a decentralized protocol based on the ETH Blockchain. The price of DAI is planned to be equivalent to US dollars so that it has very high attractiveness because shareholders have involvement. Then to support DAI price fluctuations, MakerDAO created a token called Maker (MKR). These tokens are stablecoin and DAI tokens, but Maker uses fiat or gold reserves so that it can stabilize the price in the market price which in turn helps stabilize the price of DAI which is his brother.

2. Compound

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Compound is a project on the Ethereum network. The concept of this idea was proposed by an economist named Robert Leshner whose goal is to offer crypto-asset lending facilities.

If we want to get interested when saving at a conventional bank, we have to save our money in that bank and the money will be very difficult to withdraw. Compound offers us to be able to withdraw our crypto assets at any time.

In the lending and borrowing transaction process, lenders and borrowers will be directly involved in this process where they have to lease assets in the protocol. The advantage is that loans can be repaid and locked assets can be opened again.

3. Synthetix

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Synthetix is a token that is a StableCoin as well as the tokens above. Currently, this coin serves as one of the DeFi projects offering to trade in currencies, stocks, and other assets. As we know, stock trading is still dominated by traditional financial centers, with tight regulations, and difficult to automate. originating from the Synthetix protocol also on the Ethereum platform which focuses on offering stocks, precious metals, currencies, and other assets. Assets "Synths" will copy and track real-world asset prices and bring them to the Ethereum blockchain, so users don't have to do research elsewhere.

4. bZx

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bZx is a system in the DeFi ecosystem, this system provides lending and borrowing trading platform, this is the same as Compound which I have explained above. The difference with Compound is that the bZx protocol allows users to do margin trading.

Margin trading is an activity where users can make trades by borrowing capital from the protocol so traders will have more capital then they will get more profit on trading.

5. Uniswap

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Uniswap is a protocol that operates as a means for its users to exchange tokens called ERC20. The protocol created by Hayden Adams provides access to its users so that they can get their tokens without having to use other intermediaries. The token exchange rate on this platform is based on a mathematical algorithm equation that will automatically calculate the balance between the two tokens and compare them. The concept of Uniswap is to balance the value of the tokens and exchange them based on how many people want to buy or sell the tokens.

Conclusion

I highly recommend traders and other people who are involved in Cryptocurrency to learn about DeFi and the tokens in it, because all of that is very useful and is the newest information from the world of cryptocurrency.

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