The terminology DeFi is actually an abbreviation for Decentralized Finance. It is a method of utilizing blockchain technology and network for the development of decentralized financial products, making it easy for anyone to access. DeFi products have shortened the long procedure of visiting middle men agents or financial organization such as banks and brokerages. DeFi products helps helps users complete financial transactions without having to go through any middle man or third party intermediary. DeFi products uses what is known as DeFi protocol to function on blockchain networks and connect users directly from vast locations.
The rise of DeFi products have created a new wave in both the world of finance and the world of crypto. DeFi products have made it easy to access the financial markets now, anyone with a good internet connection can use DeFi products/services from the comfort of his/her home and the markets never closes. The decentralized nature of DeFi products (dApps/Dex) makes it impossible for central authorities to have any control, to block a user access, block payments or freeze accounts.
DeFi products have changed the modern day finance and made it easy for traders, decentralized finance counters human's inefficiency. While using a DeFi product transactions and services which were usually made slow in the hands of humans are faster, free from human errors/mistakes and inconsistency this is because the DeFi systems are automated and all operations are codes.
In other to further explain how DeFi products have made the modern day finance, below is a table comparing decentralized and traditional finance
| Traditional Finance | Decentralized Finace |
|---|---|
| Using traditional finance, companies and organisation hold your money/assets | Users hold their money/asset themselves and have total control. |
| Transactions can take hours or even days due to certain protocols or inefficiency in human | Transactions including payments, transfers and trading all take place within minutes because of the automated systems. |
| Traditional finance is handle by humans who will need to rest and take breaks, leading to a close in markets | It is automated and markets are open 24hrs even at midnigts making it more reliable. |
| Due to centralisation there is no transparency | It's decentralized nature make allows maximum transparency in the network |
| .Traditional finance strictly requires a user full identify and verification | Does not require full identification or verification. |
Benefits of Decentralized Finance
1) Token/coin Exchange: With the aid of Dexs which are DeFi products people can conveniently swap or trade different coins and tokens whenever and from wherever they wish, also at moderate charges. This is like a better version of swapping country currencies.
2) Fast and Steady Access: Using traditional finance a person who wants to urgently swap currencies or get a loan would have to visit a bank, brokerage or financial organizations and there would be many protocols involved which are mostly time consuming or the markets would be closed. But with DeFi products a user has 24hrs access and can get loans, swap tokens/coins and make other transactions conviniently and quickly anytime, anyway as long he/she has an internet connection.
3) Access Stable Coins: The volatile nature of cryptocurrencies portrays q problem to crypto users and financial services. However the development of DeFi products have brought a possible solution to this by creating stable coins which their values have been pegged to real life world assets such as; gold. Examples of such stable coins are Dai, USDT, USDC, USDJ, etc. With this loaning and retailing of coins have never been made better for crypto traders and these coins can be used as a means of saving their funds since it has a more stable value.
4) Transparency: DeFi products offer full transparency to it's users, all activities are recorded on a distributed ledger and stored on the blockchain and it is made public.
Pancake Swap (Binance Smart Chain)
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PancakeSwap is the most popular Dex running on the Binance smart chain. It is also trending not only on binance smart chain but also in the entire world of crypto and this is as a result of it's good features ranging from massive liquidity to having a sizeable userbase.
Pancake swap was built in order to enable users swap binance coin (bnb) and every other BEP-20 tokens while maintaining maximum security and total independence on a third party intermidiary or centralized services. PancakeSwap is decentralized platform and all transactions are executed usiny smart contracts and codes. Also it has an open sourced software making it transparent and open to the public. It's native token is cake.
PancakeSwap also has a fee charged during every transaction or trade, they charge 0.20% on every transaction/trade done on the platform.
Services/Functionalities Of PancakeSwap
- Instant swap of BNB coin and BEP-20 tokens
- Yield Farming
- Lottery V2
- Prediction Markets
- NFT Collectibles
- Syrup Pools
- Initial Farm offering (IFO)
JustSwap(Tron Blockchain)
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Just swap is a DeFi product which was created for the instant swap of any Trc20 token. It was the first Dex to be built in the Tron network. The justswap exchange protocol guarantees full security and decentralistion in it's services including trade and swap. While using Justswap a user need not go through the long process of getting verified or even opening an account, this is because it utilises a decentralized wallet to get it's users logged in and one whi it currently supports is the TronLink pro wallet.
Justswap offers a variety of trading services such as; Lending tokens, tracking ,swapping tokens and pooling tokens. Justswap has a fee charged when using their services which is normal amongst Dexs. Justswap charges a 0.3% fee at trading, this means that whatsoever token a user is swapping 0.3% of it will be deducted as a fee charge.
Functionalities of Justswap
• Unlimited Liquidity: One of the things that is very essential to trading platforms is liquidity. Justswap ensures that it provides it's users and crypto projects with enough and unlimited liquidity and this makes transactions faster.
• 24hr Availability: Justswap is fully and always available, offering a secure and fair market place to everyone who wishes to use their product.
• Great Ease/Comfort: The Justswap exchange platform allows users to conveniently swap their tokens instantly without executing matching orders.
• Open Source: Justswap gives every user the room to do their transactions on their own no matter the variability if the transaction, courtesy of it's open sourced nature.
Swapping with JustSwap
To answer this part of the question I used my TronLink pro wallet.
Step 1: I open my TronLink wallet and clicked on discover, it took me to a page with menu, I clicked Justswap
Step 2: In Justswap page, I selected the amount of trons I wanted to swap and selected the currency I would like to swap to and clicked swap.
Step 3: A page with analysis and breakdown of the transaction came up, I clicked continue swap. Anothe authorisation page came up I clicked continue.
Step 4: A page where I'm warranted to input my password came next and I did and clicked in done. Another page came up saying completed, I clicked on close.
Step 5: I went to my history, to view Tronscan and confirm status of the transaction.
