My post not get curated last week. So i post it again. below is link and professors remark on that post.
https://steemit.com/hive-108451/@sherazsultan/steemit-crypto-accademy-home-work-post-for-reminiscence01-on-defi-products-by-srrebullient
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Hello everyone. I welcome you all in 8th week of 4rth season. This week the professor
@reminiscence01 have discussed the Defi Products in detail. This is my homework post
Question 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.
The Defi Stand for Decentralized finance. This term is used for those project which are built on the the blockchain technology. The defi projects provide the decentralized financial system to the users to perform the crypto transactions.
The defi projects used the smart contracts and perform all the transaction directly between two people without involvement of the third party. The defi has changed the traditional finance system magically. This new crypto world trend enable the users to perform the P-2-P transactions.
The traditional financial systems no doubt are costly and time taking. The intermediate party is always there whenever a transaction is performed. The middleman have access to the users wallet and personal information. He have more power and authority as compare to the user himself. The defi has introduced the financial system based on the blockchain technology which make the transaction more fast, easy, less costly and provide more scalability.
It is said that the Defi concept is as old as the bitcoin. It was started with the invention of the bitcoin which challenged the traditional financial system by eliminating the third party. But this became possible with the invention of the smart contracts in the Ethereum blockchain.
Most of the defi applications are built on the Ethereum blockchain.
All the defi projects replaced the middle man with the smart contracts and enable the users to perform the transactions directly without involvement of any middle man.
This technology has made the financial system transparent, scalable, fast and less costly. The transparency of the system has made it more reliable and secure. Everyone is able to read the data stored on the network
DeFi PRODUCTS
Before 2009, the traditional financial system was there which had the third party to perform the transactions. The financial system was dependent on the middle men. The middle man had the access to the personal information and assets of the users. Then a person named as Satoshi Nakamoto introduced the decentralized financial system by inventing the decentralized crypto currency, Bitcoin.
The bitcoin was built on the blockchain where the transactions are performed directly between the users without involvement of the third party. But still the financial system was not completely decentralized.
The financial system became completely decentralized by the invention of the smart contracts in ethereum blockchain which had made the financial system decentralized in al the aspects. The defi products were started in 2017 which made the finance system decentralized not just in term of performing transactions but also saving, lending the assets, etc
The defi has made the finance system decentralized in all the aspects like lending, saving the assets without the involvement of any middle men. The users have full access and control over there accounts. No third party can access the user's personal information.
These applications enable the two users to perform the transactions directly without interference of the third party. It has made the finance system more secure and fast. The transactions are performed quickly with less transaction fee.
How it is shaping the present-day finance.
There was a time when the finance system was centralized. It was depend on the middle man. The users who wanted to transfer his fund to any personal contacted to the middle man which were usually the banks. The banks deducted their transactions fee and send amount to the receiver. The receivers also had to went to the banks to receive his money. It was time taking, not secure as the banks had access to the user's assets and costly too.
The defi applications has changed the finance system magically. The finance system has became so fast, secure, transparent and less costly. The transactions can be performed directly between two parties without involvement of the third party.
The blockchain based finance system, defi has made the financial system secure and reliable. No third party can access the user's assets and personal data. There is no need of any bank to perform transactions. The user can do it quickly with his own mobile phone just having the internet facility.
The smart contracts has made the financial system secure, reliable and transparent. The transparency of the system made it more reliable and secure. The data stored on the network is readable by all the users on the network. Everyone on the network can read the data of any transaction which has been performed on the network but the stored data is immutable.
The smart contracts have cut the need of the third parties in the financial system by providing a bridge between the two parties who can perform the transactions directly. The high level privacy and the security is provided in defi products.
Question 1(B)- Explain the benefits of DeFi products to crypto users.
Transparent-
The defi applications has made the finance system transparent. All the stored data is transparent and visible to everyone on the network. This enhance the security and reliability of the system.
No Third party-
The Defi projects has cut down the need to the third person to perform the transactions. The finance system has became the decentralized in all the aspect with the defi products. There is no central authority in Defi. This system is not owned by any person or group.
Scalability & Speed-
The Smart contracts has made the finance system more scalable and fast. The transactions can be performed within nano seconds on the defi applications.
Immutable-
The defi system allow all the users to read the data stored on the network but no one can change the stored data. The stored data is immutable.
Security- The defi applications are more secure. No one can access the user's account except user himself.
Transaction cost-
The Defi products has made the financial system fast and less costly. The transactions can be performed with low transaction fee.
Question 2 - Discuss any DEX project built on the following network.
The Uswap is an automated market maker decentralized exchange which is based on the Tron blockchain. This DEX Allow the facility of fast swapping and trading of the TRC-20 tokens
This decentralized exchange has a variety of the features which make it efficient and unique from other Decentralized exchanges. This project can be said a new version of Uniswap which has covered all the week points of the Uniswap in an efficient way.
This exchange is safe and secure. In order to list a coin on this exchange, the experts chec
ked and audit it thoroughly. Only those coins are listed on the USWAP who have fulfilled all its requirements and criteria.
So user do not need to worry about the authenticity about the tokens which are listed on the exchange. Because all the tokens are checked by the developers and only then they are listed and available for the public on the exchange. This safe dex feature of Uswap make the user free from worry of the scamming and fraud token
Moreover, the users who provide the liquidity to the network are rewarded. The transaction fee on this exchange is distributed among those users who provide the liquidity to the USWP decentralized exchange
Features of USWAP
Automatic Market Maker -
The USWAP use the automated market maker technique. The liquidity pools are there to enhance the liquidity of the network. The users who provide the liquidity are rewarded.
First Tron Based NFT Market Place -
The USWAP is the first NFT market place based on the Tron network. This feature of the USWAP make it more prominent and unique among other dex. The artists are allowed to create their NFTs on the USWAP and they can present their art to the public.
PanCake Swap(Binance Smart Chain)
PanCake swap is build on the binance smart chain. This decentralized exchange allow the users to swap the BEP-20 token easily in fast speed. There is no order book on the Pancake swap as this decentralized exchange use the automatic market maker methodology.
Moreover the users are allowed to provide the liquidity in liquidity pool. They are rewarded in return. When a transaction is performed on the network, the transaction fee is deducted for that. This transaction fee is distributed among all the liquidity provider. So user can earn heavy income by providing the liquidity.
The cake is the native token of the Pancake swap with the market price and market rank. The market capitalization is .
The pancake swap provide a fast and secure way to the users to perform the transactions. This exchange is highly scalable and use the smart contracts to eliminate the need of the third party.
Features of the Pancake Swap
Staking -
The pancake swap enable the user to earn the income by allowing them to stake their coin in the yield farm of their own choice. They select the yield farm which match their token, stake their tokens and earn reward.
NFT- You can win the NFTs on the pancake swap decentralized exchange
Lottery - The users are allowed to buy the lottery using the native token of the Pancake swap. The users buy the lottery, if they win it, they earn a lot of the cake coins.
Initial Farm Offering - If you are holding the cake token, you are able then to swap your tokens with the projects which are not launched yet for the public.
Question 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)
- Open the exchange platform of Tron. And click on the swap.
- Enter the amount which you want to swap. Then click on the swap button.
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- A new window will be appear to confirm the transaction. I entered the 4TRX. Click on the Confirm button.
- Then enter password. And your transaction is done.
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- Below is the transaction detail.
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Conclusion
The defi technology has bring the magical changes and advancement in the finance system. This blockchain based financial system has made the finance system magically so fast, secure, transparent and less costly. The transactions can be performed directly between two parties without involvement of the third party. The defi projects provide the decentralized financial system to the users to perform the crypto transactions. No one can deny its positive effects in the financial system. The defi projects used the smart contracts and perform all the transaction directly between two people without involvement of the third party.
I would like to say thanks to the professor
@reminiscence01 to share this important and useful knowledge about the decentralized finance with us.
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