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

Hi to you all hope this Homework post meets you all. Special greetings to my lecturer for this week professor @reminiscence01 for yet another amazing lecture session with him on DeFi Products. After going through the class, I have been able to answer the questions that follow

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

DeFi stands for Decentralized Finance and it stands to describe a number of applications and projects on the blockchain technology that is directed towards limiting and eliminating the influence of the traditional world of finance. One of the major focuses of Defi is to provide financial services to crypto users without interference of a third party or an intermediary.

b) Explain the benefits of DeFi products to crypto users.

By DeFi products, we mean financial service tools that help to better decentralize the blockchain network by eliminating the involvement of third parties in the system. These products that exist as applications provide high level of security and better opportunities like staking for the users. DeFi products are beneficial in that;

• It makes for Transparency:

Transactions carried out on the blockchain network using DeFi product are ever made transparent and public for users to see. This eliminates fraud in the system

• It is a Permissionless system:

By permissionless, we mean transactions are not dependent on the decision of any third party for validation or any sort of verification. Rather every user has unlimited access to their funds and the entire system which is quite different from the Traditional system where there are restrictions and limitations that at times appear as verification.

• There is a high level of decentralization.

With DeFi products there is no intermediary between you and your funds as is the case with traditional financial systems where either the broker or the bank stands as a middleman and which results to delayance for transactions to be signed. There is no such thing with DeFi since it is a highly decentralized system

• It has a Low Cost

Using DeFi productions makes the processing of transactions to be done at a very high speed and not only that but also at a cost-effective rate. This has been possible through in the blockchain network when using DeFi products

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

By DEX, we mean a decentralized Exchange. And as we saw earlier, Decentralization eliminates middlemen’s involvement in financial transactions on the blockchain network. We have discussed the Benefits of DeFi products and relaxing it to decentralized exchange, we are going to examine 2 DEX projects that are currently running Binance smart chain and Tron Blockchain.
For the Binance Smart chain wear going to see the Pancakeswap

PANCAKE SWAP

This is one of the most prominent decentralized exchanges built on the Blockchain network and owned by an anonymous team called “Chefs”. Pancake swap made it possible for users to trade Binance’s BNB coin alongside other bep-tokens without any interruption from an intermediary or third party. Pancake token has as its main token the “Cake” which can be used to execute and carry out a good number of functions. They include execution of smart contracts, lottery, staking, etc. With Pancake swap, Users can still earn funds by locking up their tokens for a while which will yield them awesome rewards sing the staking function.

JUSTSWAP

Now talking about Decentralized exchanges built on the Tron Block chin network we are going to be discussing the Justswap platform which is owned by the Tron Foundation and was birthed in 2017. Just like other DEX platforms, Justswap also allows users to perform a number of functions like swapping tokens without the involvement of a third party and allows exchanges on TRC20 tokens even while providing its users a high level of Liquidity. Tron Network is great in that it offers very high-speed transactions at a low cost and also the possibility of carrying out exchanges with TRC20 tokens. Tokens such as Sun, USDT, UTU, SUNOLD, TUSD, JST, USTJ, ETH,BTC, etc

3. 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)

I will be using the Justswap Decentalized Exchange platform to swap between some tokens. We will be swapping our Tron token for a token on our justswap platform called Sun and the steps below will guide us on how to do a swap on tokens here.

STEP1

To have access to my tron account on the just swap platform,I connect my tronlink wallet to Just swap platform on my PC, I open the tronlink Browser extention and then I copy my wallet address as we can see below

STEP2

As soon as my tron wallet is open on just swap I get straight to doing my swapping. I enter the amount of TRX I want to swap then I select the corresponding token to which I wish to swap to.Here, I will be swapping 20Trx For 68SUN

STEP3

Next a popup notification appears which demands me to confirm the swapping info

STEP4

Next I am requested to sign the transaction and after this is done the transaction is a successful one as seen below