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.
There are a lot of benefits offered in the DeFi ecosystem. The main benefit here for crypto users is to earn passive income on the asset they are holding. Instead of keeping your assets in your wallet, users can engage in DeFi services to earn accrued interest on their assets. This is also beneficial to the entire crypto market as it also helps to generate liquidity.
We discussed some benefits of DeFi products and also discussed DeFi products built on Binance Smart Chain and Tron Network. We also tried to explore some platforms built on this network and how to carry out transactions on them.
The homework task aimed the following to educate the users on DeFi products:
Understand DeFi products and it's Benefits.
Explore DeFi Products built on Binance Smart Chain and Tron network.
At the end of the week, we had 106 entries. The task distribution is as follows:
Recommendation and Feedback from Homework Task
The performance for this week is quite low compared to the previous weeks. This can be seen as the inability of some participants to understand the question performing the homework task. Also, a lot of users haven’t cooperated with #club5050 rules which is part of the marking scheme.
There have been improvements in the presentation and writing of the participants. Though some participants are still making effort to improve their writing skills.
The compliance of the students wasn’t encouraging. Students were expected to explore other DeFi projects in the crypto industry and not the one explained in the lesson. Only a few numbers of the participants were able to make good research on other DeFi projects,
There was no case of plagiarism/spun content in this week's submissions. We encourage every to keep submitting quality and original content. The community will keep fighting plagiarism as this is a great offense in Steemit Crypto Academy.