Hello comrades,
I trust you are doing well.
Today marks my last presentation for this season and below is my presentation.
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Defi
1 a) In your own words, explain DeFi products and how it is shaping the present-day finance. b) Explain the benefits of DeFi products to crypto users.
1a
To me, Defi products are financial services tools or projects that are built on a blockchain network which aims to bring decentralization in the financial sector through the elimination of third party involvement in accessing financial services or products.
Some examples of Defi products are; JustLend, Nexo, Curve, Blockfi and etc.
Defi is shaping the present-day finance by providing and ensuring an uninterruptible, user friendly and borderless ecosystem for crypto users and enthusiasts.
It is also shaping the present-day finance by eliminating third party involvement in accessing and delivering financial services of which the users have total control over their assets.
People are able to enjoy flexibility and security in terms of accessing financial services.
Users are able to do smooth and swift transactions without depending on a third party unlike that of the traditional banking (financial) system where there are many requirements and stressful processes before a person would be able to do a transaction or offered financial services.
In simple terms Defi products have help to eliminate the challenges people face with intermediaries in terms of accessing financial services.
The daily trading volume and marketcap of the Defi coins even guarantee the fact that Defi products are of the essence to many people and therefore they are shaping the present-day finance system.
1b
Below are some benefits of Defi products to crypto users:
High transaction speed; people don't have to personally wait in cues just to carry out transactions or receive financial services. Defi products offers their users the opportunity to do transactions at their comfort zones on a high speed as compared to the traditional financial system where people would have to follow cues just to make transactions or receive financial services. The absence of intermediaries brings about smooth and swift transactions on the part of the users.
Low transaction fees; there is a low cost of transaction as compared to the traditional financial system due to the lack of intermediaries.
High security; high security is assured since only the users manage their assets and private keys.
Decentralization; the users enjoy autonomy over their assets without any interruption because they have in possession of their private keys. People have the total freedom to utilize their funds due to the decentralised nature of Defi products.
Reliability; Defi products or tools operate 24/7 without holidays and closing time therefore people are offered financial services at anytime and anywhere unlike that of the traditional financial system where people are denied access to their funds due to closing periods and public holidays.
General access; everyone has the mandate and freedom to access Defi products without facing any restrictions. They are permissionless and therefore everyone is eligible to access them unlike that of the traditional financial system where there are many and strict requirements before granting people access to financial services.
Transparency; transactions on Defi products are made publicily to their users with the help of the blockchain technology unlike that of the traditional system.
Privacy; users enjoy some level of privacy on their financial activities due to absence of intermediaries.
Easy access; Defi products are easily accessed providing the user has an internet connection. Users don't necessarily have to visit a particular place in person just to do transactions or receive financial services, all they need is internet connection in order to have access to the tools or apps.
2 Discuss any DEX project built on the following network. Binance Smart Chain. Tron Blockchain
Binance Smart Chain
PancakeSwap
PancakeSwap is known as one of the vibrant and most popular decentralised exchange platforms that is built and based on the Binance Smart Chain.
The platform was launched in September 2020 and it has experienced a lot of progress till date.
It has the most users as compared to the other DEX platforms with the last 30 days users of 2.8 million. It regularly clocks over $100 million in 24-hour trading volume, interesting.
PancakeSwap as the name suggests, has the main aim to help its users to securely swap assets (BEP-20 tokens) at ease, but then that is not the only feature it possesses because it also allows its users to serve as liquidity providers whereby they enjoy some level of interest or passive income from transaction fees.
PancakeSwap offers better user experience by ensuring low transaction fees and high transaction or confirmation speed.
In PancakeSwap there are no order books but instead automated market maker which means traders receive assets from a liquidity pool offered by the liquidity providers (investors).
It has a native token known as Cake which is used for staking, PancakeSwap lottery and voting on the system's governance processes.
It is one of the dApps and it is mostly accessed on the supported Web3 Wallets such as TrustWallet, WalletConnect, MetaMask and etc.
PancakeSwap is funded by the PancakeSwap treasury which receives about 15% of all the transaction fees in return for the platform's management and maintainence.
Tron Blockchain
JustSwap
JustSwap is a decentralised exchange platform which is built and based on the Tron blockchain network. JustSwap is known as the first decentralized token exchange protocol on the Tron platform.
It enable its users to Swap TRC-20 tokens and it also enable them to enjoy some level of interest rate as they serve as liquidity providers just like that of the PancakeSwap.
Users who dedicate themselves to participate in the JustSwap liquidity mining earn an annual interest of APR or APY.
JustSwap was launched in 2020.
JustSwap is a dApp and it can be found on Tronlink pro wallet in the Discover section.
JustSwap does not support Fiat currency and there are no transactional fees with the exception of mining or network fees which are received by the miners.
JustSwap can only be used by connecting an existing Tronlink wallet and it does not support mobile browser to connect to the wallet.
Therefore users need to download the Tronlink Wallet App on their smart phones or use the Tronlink Chrome plug-in on their PC's. The wallet or account can easily be created and activated by downloading the App and following the necessary account creation procedures and receiving at least 1TRX from another user.
3 In the DEX projects mentioned in question 3, 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).
I couldn't perform a swap on PancakeSwap due to insufficient funds.
Below are the steps to use in order to successfully make a swap of any crypto asset using the JustSwap DApp on Tronlink.
- You have to open the Tronlink wallet on your smart phone (Android or iOS). In case you don't have it, download and activate it by receiving some few TRX from a different user.
- Go to the Discover page and click on JustSwap.
- The JustSwap page will open then you select or search your preferred tokens for the Swapping and input the amount you want to Swap as well. Mine happened to be a Swap of 10TRX for 12.5JST.
Select or search your preferred tokens.
Input the amount.
- Make confirmation of the swap.
- And the swap will be completed successfully.
- You can go ahead to have a view of the details of your transaction on the Tronscan block explorer as shown below.
All the above screenshots were taken from my TrustWallet app, Tronlink wallet app and www.coingecko.com
Conclusion
Defi and its products have brought some form of relief to all crypto users. Lesser transaction fees, convenience , speedy transactions and etc.
I hope the developers of such projects keep improving their good works so that we can enjoy the ecosystem to its maximum.
Thank very much Prof. @reminiscence01 for offering us the opportunity to enlightenment in the crypto arena.
I hope we meet at the intermediate level.
Hello @phlexygee, I’m glad you participated in the 8th week Season 4 of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
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Thanks for your participation in cryptoacademy course. Good write up.
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Thank you.
I appreciate.
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