Crypto Academy Week 4// An Introduction to DeFi (Part 1)//Submitted to@yohan2on

Happy new week and month @yohan2on.

Thank for this explanations.

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I would love to define first what a DeFi is. Thank you for the privilege to research on something new today.

What is DeFi?
DeFi which means decentralized Finance and as the name implies, they are financial systems which functions independently without the need of a centralized body or an organization like banks, credit loans, insurance bodies. It's a peer to peer financial system which allows you transfer crypto, sell crypto without the interferance from any third party or a central body.

Most DeFi are built on the Ethereum blockchain.

Lecture Task

Homework task: Briefly explain each of the following DeFi Dapps
Maker
Compound
Synthetix
bZx
Uniswap

** Marker**

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A maker is a name given to a token created by MarkerDOA with the sole aim to support stabilizing the Dia token and ensuring governance for the credit system. It is also a decentralized DAO platform, built on the Ethereum blockchain, Decentralized in the sense that it does not require any entity or organization to operate or manage it.
Maker is one of MARKERDAO's currency, (MKR and DAO), Dai is a stable coin and MKR does the job of keeping DAi as stable as possible at 1 USD. It can be either be created or destroyed according to price fluctuations on it DAi counterpart. Holders of MKR engage in voting as it accords them these rights, and in the end gives approval. This holders are then rewarded.

Compound
Compound is a automated software built and running in the Etherum network, it allows users to send money into a lending pool so it can be borrowed in reward for a new c token which can be traded and redeemable.

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Compound is a centralized platform, though not a bank but you can lend and borrow from it. In leading you recieve rewards and in borrowing, a 100 percent value your are borrowing is put in a asset support system. Though there are other exchanges that allow you trade on borrowed funds, Compound prove to be a safer, more transparent and innovative platform as it c an be built upon.

COMP is the governance token of the compound protocol built on the Etherum network through smart contracts. Everyday a certain amount COMP is distributed to lenders to operate with.

Synthetix

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Synthetix is a decentralized application built on the Ethereum network in which users can either create, buy or sell cryptos on their peer to peer groups. It requires no singular Entity for its operation. Accessing this synthetic cryptocurrency assest will give investors more leverage to assess non - Synthetic assest such as gold and normal fiat, etc.

It comprises of 3 Dapps which are:

1. The Syn tokens
2. The synthetic exchange, and
3. The monetized synth, all having their various operations.

bZx

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bZx can be a defined a DeFi lending application built on the Etherum network. It allows an investor to borrow, lend, and conduct margin trades without relying on the thirty. That means it is completely decentralized. BZx financial operations are automated, this is made possible by the BZx smarts contract.

It use the itokens, ptokens, and the BZrx tokens which puts a step higher than platforms ot its class. Each of this tokens plays a vital role in the BZrx operations. itokens are distributed to lenders, ptokens to borrowers and the BZrx is the governance token of the BZx protocol which is used for voting on project, with incentives being distributed.

Uniswap

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Uniswap is simply a decentralized project built on the Ethereum blockchain, it is an automated liquidity protocol which gives users leverage to provide liquidity on its platform and inturn gets token reward for providing such liquidity. The incorporated smart contracts control how this liquidity is achieved. It also eliminates the use of order book but rather uses an Automated Market Marker (AMM).

UNI is the name of its governing tokens, which gives holders right to carry out specific actions such as voting on new tokens and changes in protocols.

Uniswap greatest challenge has aroused from high cost of gas fees, Ethereum gas fees has being on the hike lately, owing to influx of transactions. Since it is Etherum based, it is also affected.

THANK YOU FOR THIS WEEK LECTURE