In this week's lesson prof @gbenga discussed what a DEFI or Decentralized Finance can do and what amazing things it will provide in the crypto world, particularly about its ecosystems and projects/protocols. In this week's Steemit Crypto Academy Homework, the task is for us to tackle about a DEFI ecosystem as well as a project/protocol under that same ecosystem.
DEFI QUICK OVERVIEW
Decentralized Finance (DeFi) is the use of public blockchains in monetary systems. It's a brand-new monetary system, so it's one of the most talked-about topics among entrepreneurs, blockchain experts, and students like us. The term "public" is crucial in this situation. Its public blockchain can be compared to Ethereum's. There is no room for centralized authority on the public blockchain.
DEX or DECENTRALIZED EXCHANGE
Image is from https://blockchain.news/insight/decentralized-exchanges-uniswap-vs-sushiswap-explained
Capital deposits, order books, order matching, and asset exchange are the four core functions of any exchange. Each of these functions must be decentralized in order to create a fully decentralized exchange, or DEX. The asset exchange part of cryptocurrency exchanges is typically decentralized by default because the assets are cryptocurrencies. The remaining three functions, particularly deposits, are typically centralized.
No one can be locked out of a decentralized exchange. The most obvious advantage of a DEX, as with any decentralized application, is its resistance to censorship. A decentralized blockchain application can't be shut down unless the entire chain is shut down.
Decentralized exchanges also require users to be 100 percent responsible for and in control of their funds. While not everyone wants to be in charge of their assets' safety, shouldering the responsibility on your own ensures that your funds are as safe as you want them to be.
A DEX PROJECT (UNISWAP)
Uniswap was created as a decentralized financial exchange (DEX) that allows anyone to participate in financial transactions involving Ethereum-based tokens without the need for a central body or middleman. It is dedicated to providing users with permissionless access to financial services that are secure and immutable, free of discrimination and counterparty risk.
Let us take a look at the overview of UNISWAP
When you visit uniswap.org this will be the landing page and in order for you to use this decentralized exchange is to click or touch that "USE UNISWAP" at the top right corner or rather click this link https://app.uniswap.org/#/swap
Liquidity pools on Uniswap are pairs of ETH and ERC-20 tokens that are swapped and exchanged.
All you need to do is to connect your ERC20 Wallet and you can swap now. For example in my case I connect my metamask!
Current Look at uniswap Analytics
Top Tokens in UNISWAP
Here are the Top Pairs at the moment as well
So basically the Idea of a DEFI or decentralized finance is what led us to these amazing decentralized exchanges that paved the way for traders and investors like us to handle our own assets without the needs or worries of outside factors. Thanks to prof @gbenga for another interesting topic and with that this is my week 7 homework.