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

Introduction

Defi product is really an interesting topic has it help us in knowing more about the decentralized exchange and how it is of benefits to us with the great practical experience.

Question

1a) In your own words, explain DeFi products and how it is shaping the present-day finance.

Source

Defi product has it full meaning as decentralized finance product, These are product that was developed in order to eliminate Central authorities when it comes to anything financial exchange. These are product that makes use of smart contract when it comes to blockchain.
With this product, individual can be able to loan funds from others, here, the can also make profits too by saving due to the fact that it has high rate when it comes to interest. With all this advantage we should also know that there is also a disadvantage involved such as the user must have idea about cryptocurrency.
Defi product really shape the world in lots of ways such as, the security aspects, which means that the security network of defi product is very strong which means that it trust level is very high because individual will always be sure that his or her fund are safe.
Secondly, no third party involvement, here individual can perform transaction without the involvement of any other person, the individual here can perform transaction at his will. Thirdly, transaction when it comes to defi product are being charged at a lower rate.

Question

b) Explain the benefits of DeFi products to crypto users.
There are so many benefits of defi product to crypto users which are.

No geographical boundary
No time limit
speed of transactions
Easily accessible
Decentralized system
security level

No geographical boundary

When it comes to defi product, it can be operated anywhere and any part of the world, which means transaction can be performed between 2 individual in different countries.

No time limit

When it comes to defi product transaction can be performed at any time individual are not limited to a particular time, but the individual is free to do transaction any moment he wants to.

speed

The rate of speed at which transaction is being performed here is faster than in the centralized system.

The security

when it comes to defi product the level of security is very tight and secure which also increased the individual trust because he or she will always be sure that his or her funds are safe with no fear of the account being hack.

Transaction charges

When transaction is being performed here, the charges is always low which makes it interesting because there is nothing like bank charges etc.

Easily accessible

It is easily accessible, just with a smartphone, personal computer or laptop individual can be able to perform transaction.

Decentralized system

Here, there is no third party involvement, but it is rather the individual that is in full control of the account without having to involve anyone before performing transactions.

Discuss any DEX project built on the following network.
Binance Smart Chain
Tron Blockchain

Pancakeswap( Binance smart chain)

Source

This is one of the decentralized project that is being built on the binance smart chain and is one of the project in which the security level is very strong, with the pancakeswap individual can be able to purchase the cake which is it native token and hold it and make great profit from it by holding it for long.
This exchange also allows us to be able to convert the BEP20 token on the binance smart chain. The pancakeswap is also being used in the binance application and with it individual can also generate profit by purchasing token when it is in dip and holding it till it rise and sell it out.
In pancakeswap, with the aids of automated market makers(AMM) model the user can be able to trade against a pool of liquidity and there is no involvement of order book here.

With the pancakeswap individual can be able to stake the cake and also make use of it in trading and make gain, it also permits individual to stake and make profit, the rate at which individuals are also being charged here is low and there is no third party involvement with a high level of security, no boundaries and time limit.
The pancakeswap also has features such as

farming

Which has to do with the ability of the individual to keep or save the cake which is the native token and also make good profit.

swapping

With the pancakeswap, individual can be able to swap their BEP- 20 token on any exchange that is on the binance smart chain.

staking

Here, it has to do with staking of the token(Cake) for rewards

lottery

Individual can also play lottery here and make earnings

liquidity addition

In pancakeswap we make use of automated market makers, no order book is involved here. But for individuals to be able to farm or keep the cake token they must add liquidity to their exchange.

Justswap(Tron Blockchain)

Source

The justswap just like the pancakeswap is a decentralized exchange which means that it is the individual that have full control of the account and no third party involvement, with a lower charge on the transaction fee.
In justswap individual can swap any TRC20 token with ease and was founded in the year 2017, and it enables user to be able to convert 2 TRC20 token at the system price and reward are being received as commission, individual that makes use of justswap are also capable and able to receive to make more profit because of liquidity

The justswap has the following features which are

The amount of liquidity here is unlimited.
No restrictions in entering of the market and individual can also exchange TRC 20 token.
The individual are not charge any commission here.
It can be accessed easily and at individual comfortable zone.

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)

justswap(tron blockchain)

Here, I will be showing step on how to swap 12 TRX to USDT using the justswap.

Step 1
Open the tron link wallet and click on discover and some applications will pop up there you click on justswap as shown in the screenshot below.

[Screenshot from tronlink wallet]

Step 2
After clicking on the justswap the next thing is for me to select the cryptocurrency pair, I will be swapping 12 trx to usdt after that I will click swap as shown in the screenshot below.