The Steemit Crypto Academy Week 7: Introduction to Defi and Yield Farming By @gbenga

in hive-108451 •  4 years ago  (edited)

Hello everyone,

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DECENTRALIZED FINANCE


Decentralised finance is commonly referred to as DeFi. It is a concept of a financial ecosystem living digitally on a shared infrastructure. This is all about monetary systems using public blockchains. financial service like borrowing, lending and trading exist, but they operate on a public network, meaning it's accessible to anyone with an internet connection

Decentralised finance is a fast growing sector of the cryptocurrency industry. But cryptocurrency coins create a decentralised store of value separate from any government backed fiat currency. In short term Defi creates decentralised financial instruments separate from traditional centralized institutions

Why do we need DeFi?


Decentralised finances offers the opportunity to give equal access to financial services. There are a lot of people if I can say over millions that do not have access to financial services due to isolation, lack of funds, political oppression, and so on but with Defi it gives you equitable access to finance services .


Decentralised finance movement promise to bring a lot of benefits to investors and customers, including eliminating intermediaries and central oversight, which makes financial markets more accessible to retail investors and creating new investment opportunities for individuals .


WHY DEFI IS GROWING

Cross chain always allow the DeFI sector to spread the burden of increase in the demand across multiple blockchains. DeFi success will be determined by several factors that is : the transaction fees, the transaction speeds, so that users will be able to exchange their fiat money for cryptocurrency and back again.

why decentralized finance popular in 2020 ?


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Ethereum is the reason why decentralised finance is growing at a tremendous rate. Ethereum support the smart contracts and the ability to tokenize it, this makes Ethereum perfect for a financial revolution, and makes it the reason why decentralised Finance is hotter in 2020 than ever before.

DeFi tokens or coins

There a lot of decentralised finance token but just to list some down

  • Aave AAVE. The Total Supply: 16,000,000 AAVE. ...
  • Synthetix SNX. The Total Supply: 190,075,446. ...
  • yEarn YFI. Total Supply: 30,000 YFI.
  • Uniswap UNI. Total Supply: 1,000,000,000 UNI. ...
  • Compound COMP. The Total Supply: 10,000,000 COMP. ...
  • Kyber Network – KNC. The Total Supply: 210,623,056 KNC. ...
  • Maker MKR. The Total Supply: 1,005,577 MKR. ...
  • 0x Protocol – ZRX.

There more but this are just some of the top ones one have have to know about

Chainlink :I will say it is currently the number one DeFi token by market cap. It is the prognostication and supplies values to other projects for a fee. This is how sites such as Aave is, which is a DeFi savings and loan, automatically knows how much a coin being borrowed or deposited is worth.

The Decentralised finance is almost catching up with the other traditional financial system and despite some of the obstacles which are certain while operating on the bleeding edge of transformation , the world of DeFi is on the path to prosperity. Over some time, it's difficult to predict how the space will be shaped when the power to build financial services will democratise. However, at the point where Decentralised finance and fintech map are merge, we will have an inflection point where embryonic financial technology will just be part of a new financial system. One that realizes the dream of being fast, available,egalitarian and secure.


Some videos from YouTube will be showed below to help you get a clear view of the DeFi


video 1 :Beginners guide

Video 2 how to trade with DeFi

video 3 how prevent DeFi being hacked or scam

How to Prevent Defi Rug Pulls Hacks and Scams!CryptoWendyO1.1K views5 months ago
I hope with this video you get the full concept of the DeFi am so grateful to be part of this contest Thank you all for viewing this post a big Thank you to @gbenga

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