Challenge #2 : Diving into DeFisteemCreated with Sketch.

in Steemingcurators3 months ago (edited)

This post is a response to Steem Crypto Challenge Month #2 : Diving into DeFi organize by @steemitblog which you can find the details here Steem Crypto Challenge Month #2 : Diving into DeFi

tron2.jpgSteem joining Tron ecosystem via @projectw protocol swapping Steem to WST token

What is DeFi for me?

There are a lot of definitions out there that you can get by google-ing it, but in this post, I will explain what defi is in my own understanding.
Decentralized finance(DeFi) is a process on the blockchain that usually happens in the traditional banking system, done through a Smart Contract, an agreement that already put in place on the protocol and fully automated, meaning we don’t need a middleman like banking system to get into any of the things that the banking system out there usually does.
You don’t need to go to the bank, going through a middleman in the bank preparing all the paperwork, and provide all other proof that you could to make the bank convinced that you are eligible for any product that they're are offering.
defi1.pngGraphic by finematics

Have you ever bought any DeFi tokens?

I have tried using the Just lending and borrowing protocols USDJ, SUN mining yield farming and other yield farming protocols built on Tron networks such as token(Blocks/Nodes) Blocknodes.io maintain by @steemingcurators Yield Farming team.

What makes you excited about DeFi?

Defi excites me as I can finally do something that I can’t at a traditional bank, for example, to get a loan and save my money with a better interest rate(staking/yield farming).
With Defi, you can save your money in the form of cryptocurrency and get much better(APY) interest for that. Compared to when you save your money in the traditional bank, usually, we only get like 0.1% APY or sometimes they even deduct your money for administration fees or other miscellaneous fees.
Also, money in the bank will decrease in value in time as the bank of any country in the world keeps printing(unlimited supply) the money for example the World Reserve Currency(USD) by the Federal Reserve. On the other hand, the value of cryptocurrency for example Bitcoin will keep going up in time because the amount of bitcoin that will ever be produced is limited, there will be no more bitcoin after 21 million bitcoins being produced.

Bitcoin also has a stipulation—set forth in its source code—that it must have a limited and finite supply. For this reason, there will only ever be 21 million bitcoins ever produced. On average, these bitcoins are introduced to the bitcoin supply at a fixed rate of one block every ten minutes. In addition, the amount of bitcoin released in each of these aforementioned blocks is reduced by 50% every four years.
source

Which project do you think is the best DeFi application?Why?

JUST DeFi lending and borrowing

Personally, I like JUST Defi on the Tron Blockchain. JUST DeFi(lending and borrowing) is an alternative to Makerdao on Ethereum Blockchain but with much cheaper transaction fees and faster than any similar products on Ethereum protocol.
One of the reasons we move into cryptocurrency is:

  • to get rid of high fees on moving our money and also
  • to eliminate the long process of preparing contract/agreement on the products in the traditional bank which is solved by a Smart Contract on the protocol.

JUST DeFi ecosystem providing this to its users. It's just like another bank with blockchain technology with faster and cheaper transactions.

JustSwap Liquidity Pool based Decentralized Exchange

Another thing that I like on Tron Blockchain is their liquidity pool based decentralized exchange Justswap. I can easily exchange my crypto from another blockchain that is in form of TRC20 into any other token on Tron without going into any centralized exchange. If I become the liquidity provider(provide the liquidity pool with my own token), I can get reward through the trading fees that happening on the liquidity pool.

sunbtc.jpgphoto by sun.io

SUN Mining Yield Farming

I also like their recently launched SUN token that will be limited in supply like bitcoin. Why? Because I can sow this limited coin without an expensive mining machine as the bitcoin token required. I like all the Defi products that being introduced on Tron blockchain so far. They have added bitcoin into the Sun Mining Pool too. That is exciting because you can now hold your bitcoin and also get an interest in the form of SUN token which is also limited in supply.. How cool is that?!

Photo by @projectw team

What’s the mechanism of DeFi or any DeFi project?

I like the mechanism of most of DeFi project that they are permissionless and trustless/trutless tokenized as all the transaction done through a Smart Contract that has been prepared all the agreement in advance and fully automates.
I like that it also now we can do an Interblockchain transaction, for example now we can swap our STEEM token into a WST token that can be swapped on JustSwap into any other Tron based token to join the funland of Dapps on Tron network, thanks to the @projectw team for this.
Another exciting feature on Tron Blockchain is that they now have a TRC20 version of Bitcoin. Meaning we can now use bitcoin on the Tron blockchain ecosystem.

defi2.png DeFi ecosystem has lot more to offer Graphic by finematics

Are you feeling positive or negative about the future of DeFi?

I have super positive bullish feelings about the future of Defi. Defi is the future of banking. I can see that in the future people will be using blockchain to do anything that traditional banking is doing right now. My favorite DeFi protocols/ bank of blockchain currently is on Tron blockchain because their product is affordable for an average investor like me. They allow me to test the water of DeFi without using much capital upfront to try everything that interest me. The Tron ecosystem is so exciting with all the fun Dapps and soon they would be more as more developers developing their apps on Tron ecosystem, and I can't wait to try all of those cool and rewarding Dapps!
Photo by @steemingcurators

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 3 months ago 

I will retweet this link also, a very positive thing about Steem.

My favorite DeFi protocols/ bank of blockchain currently is on Tron blockchain because their product is affordable for an average investor like me

Tron is the platform for the common middle class. If I have 5 USD worth crypto I can still easily go for investing/swapping in Tron whereas that much may not be sufficient in the Etherum family, the gas cost has gone so high that, I need at least anything above 25 USD or to make it count. Excessive transaction fees are a turn-off for a micro trader.

TRC-20 USDT is a beauty when I compare it to ERC-20 USDT in the context of transaction fees.

Steem on.

#twopercent #india #affable

 3 months ago 

I agree with your points. If we are aiming for mass adoption to use blockchain for their daily transaction, then Tron Blockchain is providing those.

As always beautifully written and I like the way how you structured your posts. Hopefully slowly but surely everything will go to DeFi that will make life easy for many and we finally get control ourselves about our finance. I like how you integrated Tron projects too :)

 3 months ago 

Hi dear, thank you, Tron is a part of the Steem family too 😊

Wow excellent information from you. I dont know how to convert steem to trin,after reading your post i get information. Thank you very much for your great post.

In compare etharium mining ,Tron is very faster and less fee too. Thats why i lending my assets in Tron platform.

Nice post from you. Have a great day ahead.

#twopercent #affable #india

 3 months ago 

Thank you I agree, Tron ecosystem providing a place where everyone can participate

 3 months ago 

Congratulations you are one of the winners of the Steem Crypto Challenge Month...

Thank you for taking part

The Steemit Team

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Anroja

Thanks so much @crytokannon for all these vital information.. I have learnt what Defi is and it's importance.. I have been in cryptocurrencies before but with the huge emerging of Tron, many things have really changed for good.. I will convert all my coins to Tron to enjoy all its benefits. #nigeria #defi #steemalive

Very nice and attractively structured post. Informative and both good placement of graphics and high quality graphics.
Well done👏👏