Maker is a smart contract cryptocurrency built on the ethereum platform with a stable coin pegged at US Dollar
As at 2017, Maker was only $600, but now more than $2000. The screenshot from coinmarketcap shows the proof below.
Also, the compound protocol allow users to borrow asset. What user needs to do is to specify the asset to be borrowed and cToken is used as collateral. cToken on compound means user's balance. It is this balance that would determine the amount of asset to be borrowed. Every thing on the compound protocol is set algorithmically, so if the any transaction carried out by a user conforms with the programmed system, the transaction would incline.
Also, they are represented on the ethereum blockchain as ERC20 tokens, so for example, Gold is called SGOLD on the synthetic protocol to represent the real world gold, and that makes it a synthgold (an ERC20 token). The synth tracks the price of the real-world asset and showcases it on the ethereum blockchain which can be traded as an ERC20 token.
- The first is the fiat.
All local currencies are fiat but specifically, there some that are traded on the ethereum blockchain
SUSD SKRW SUER. Note that the S stands for synth and all these fiats are ERC20 on the ethereum blockchain-powered by sythetix (Synth).
There are commodities too like Gold
Cryptocurrencies like SVGC, SETH, SBNB are also parts of the cryptocurrencies traded on synthetics.
IBTH, IBNB, and IBTC
Crypto indexes, and so on.
There is a particular amount of SNX to be locked to generate the synthetic asset that would be used on the ethereum platform. The amount of SNX I put in for example determines the amount of SGOLD, SUSD -etc, I would get, but there is a collateralization ratio, and if the ratio is not met, the transaction won't be successful.
Every SNX holders have a benefit. There is what is called a dead pool or trading fee. Every transaction that happens on the SNX platform goes with charges and these charges are distributed among all SNX holders who hold SNX as collateral to the synthetix platform. Also, the regular staking reward goes on.
One of the disadvantages of Synthetics is that SNX can fluctuate due to the change rate for different assets, You will deposit more SNX to get more Synthetic assets to retrieve your complete SNX back. There is always a disadvantage to everything. However, the good part outweighs the other.
As of today, SNX is above $21.
bZx is a decentralized platform built on the ethereum blockchain for lending, borrowing, and trading founded by Tom Bean and Kyle Kistner in 2017. On the platform, there are two main strata which are the fulcrum and the toque. The fulcrum is for tokenized lending and margin trading. Users can borrow funds for trading and payback according to the platform's settings.
Users can select wallet providers ranging from metamax, to trust wallet, ledger, trezor, wallet connect, and so on. There is no KYC to use the fulcrum feature on the platform. Also, the toque is meant for borrowing asset which has a fixed interest. For instance, if you want to borrow $100 worth of an asset, the interest might be $5 fixed. (Just an example). Users already know the fixed price of the interest on any asset they want to borrow.
I wrote about uniswap in one of our prof's week 4 Homework. Here is the link https://steemit.com/hive-108451/@ckole/crypto-academy-week-4-homework-post-for-gbenga.
Uniswap is a decentralized dapp that runs on the ethereum blockchain that anyone can interact with. It is designed for sweeping any ERC20 tokens and create liquidity on ethereum blockchain. As a decentralized exchange, Uniswap has made listing of coin easy, unlike the centralized exchanges where millions of dollars are needed. Coins are listed free on uniswap. Also, Uniswap and any other DEXes are difficult to shut down because they operate openly. Even if there is a governmental attack that succeeds in shutting them down, the codes can be forked and another brand will emerge, so the decentralization system of Uniswap makes it unique.
Thanks for this homework @yohan2on. I'm learning more and improving myself in the crypto world. This is coming almost late. but I still made it before the deadline. More power to your elbow.
All images are screenshots from my PC.