It is another great week to make research and learn from the research being made, I am always excited to learn from the opportunities that present themselves to us through the lectures presented by the awesome professors and I must commend the hard work done by this professors.
This week’s task by professor @gbenga is asking us to talk about DEFI and I must confess that this is my first time of making good research on the topic which makes it an extremely good opportunity for me to learn.
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A little explanation on DEFI.
The operations of DEFI is similar to the blockchain in the sense that it is not controlled by an individual or a single organizational body, in a short term we can describe it as being a decentralized system that does not have a direct authority this in turn makes transactions to be carried out really fast and also eliminating middle men from transactions.
DEFI applications mostly include DEXs, stable coins, lending platforms etc.
A discussed project on DEFI ecosystem.
For the purpose of this assignment, I will be talking about BlockFi as a project on the ecosystem. DEFI is secured completely with cryptocurrency and it offers loan in fiat to users. With a secured cryptocurrency token placed down as a form of collateral, DEFI lends out fiat to its users
BlockFi is not actually decentralized but it has the risk of its operations carried unto DEFI platforms that have their access on the blockchain. The interest rate charged on BlockFi is highly dependent on the token used as collateral.
BlockFi has a unique method of operation, it serves as a bridging factor between traditional finance method and cryptocurrency, the existence of BlockFi makes it extremely possible for cryptocurrency holders who need to gain fast access to fiat to get it without selling their tokens. BlockFi happens to be a good lending option because it accepts BTC, ETH, LTC as well as other stable coins.
Conclusion.
Just like I mentioned at the beginning of the post, this weekly task continues to open my eyes to opportunities to learn more about cryptocurrency and I must give a big shout-out to the @steemit team for doing a great job and also to @gbenga for this wonderful topic.
Hello, Thanks for being a part of this week's class and participating in the assignment.
Question
What do you think about Defi and Cefi?
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