Steemitblog Challenge: Deep Dive into DeFi: Delegation. by shortsegments

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· @shortsegments · (edited)
$45.81
Steemitblog Challenge: Deep Dive into DeFi: Delegation.
This is my entry into the Steemitblog Challenge: Deep Dive into DeFi: Delegation a key passive income tool for decentralized finance on Steemit. 

#steemcryptochallenge

My country is #usa


![EA8D2BF6-FE2B-45D4-A4C8-178BA9E739F5.jpeg](https://cdn.steemitimages.com/DQmPRfpveEtCcTq5bmKKs2ySA7A2VwpCHPo4i2L8B55oSgi/EA8D2BF6-FE2B-45D4-A4C8-178BA9E739F5.jpeg)



Delegation is a passive investment vehicle, which I believe is unique to the Steem blockchain. While the two most commonly known and understood ways to make Steem are to be awarded author rewards for content creation and curation awards for manual or programmed upvoting, there is a third way of earning Steem called Delegation. When you earn Steem through delegation, you don’t create content and you don’t upvote content. Instead, you first “Power-Up” or transform Steem the cryptocurrency into “SteemPower” the unit of influence or value awardment on the Steemit platform. Then you loan Steem Power to other people or businesses on the Steem blockchain, through a loan process called delegation. The people or businesses you delegate your Steem to, use your SteemPower primarily to award content and earn curation awards, which they then share with you. Thus you can earn Steem here without being active.

**Delegation explained**
To understand why delegation is possible you need to understand that unlike many other cryptocurrency blockchains which have one coin, the Steem blockchain has three, which are called Steem, Steem Power and SBD. Influence on the Steemit platform otherwise know as the amount of Steem award your upvote bestows, depends on how much Steem Power you possess either through purchase, lease or loan. Those who own SteemPower can delegate or loan Steem Power to others, who use it primarily to generate curation awards and share those awards with the owners of the SteemPower. Thus curation can be an active process of consuming and upvoting, an automated process using upvote bots like Steemauto or a delegated process. People who own SteemPower loan it out through a special loan process called delegation.

**The Safety of Delegation**
I have loaned people money before and it is always risky because once you give someone your money. There is a risk of the business failing and you lose all your money. There is the risk that the business succeeds and you don’t get your proper share. There is always a sense of vulnerability when your money leaves your possession. The wonderful thing about this invention, called delegation, which I think is unique to the SteemBlockchain, is that you when you delegate Steem Power you still control it. So you can take it back anytime you want by Un-Delegating it. You don’t have to ask permission to take it back and you don’t have to wait for someone to give it back to you. You just Un-delegate it and take it back.

**Examples of Delegation**
Many people delegate their Steem Power to manual curation projects to support content creators  and so they don’t waste their daily voting power allotments. Other people delegate to Steem Engine Tribe upvote bots, which are manual curation bots, designed to reward Tribe Webpage  content with both Tribe Token awards and Steem awards.

**Delegation FAQ**
You can only delegate Steem Power you own.
You can’t delegate Steem Power you leased or Steem Power delegated to you.
Once you undelegate Steem Power the project or business you delegated it to loses that Steem Power immediately and can no longer use it. However you won’t be able to use it for 4 days. This is a safety feature to protect the blockchain from people who would abuse this delegation system.


**How to Delegate SteemPower**

The simplest way I know to delegate is by using Steemworld. 

I type www.steemworld.org/@shortsegments into my browser and then hit return.

You type www.steemworld.org/@yourSTEEMITname.

Then once my personal page loads I go to the section called delegation.

Then a box opens and choose who You  want to delegate to and how much. 

Follow the instructions in the Pictures.

![96C0AF5F-F368-478F-A305-70104B4B86EC.jpeg](https://cdn.steemitimages.com/DQmVGAQ3msZxSxrePz37qog4sgJfK8syq4EGWyF477KL35f/96C0AF5F-F368-478F-A305-70104B4B86EC.jpeg)

That brings you here your Steemworld page

![FD920174-D486-4D7F-97F6-A7717043D86F.jpeg](https://cdn.steemitimages.com/DQmSK5icmodvEJ7PjwYTnzcRjWkcLzUkbHCSTE8iJz8zqdj/FD920174-D486-4D7F-97F6-A7717043D86F.jpeg)

Then you....

![5766EC06-992B-4037-A2CC-604C66832C7C.jpeg](https://cdn.steemitimages.com/DQmSxdspi3mLReNxeq8Ci6c3WYhrgsFxgcCMxoqzPBdYjbQ/5766EC06-992B-4037-A2CC-604C66832C7C.jpeg)

Then...

![996C9E85-F946-4804-B9B4-0874088786E1.jpeg](https://cdn.steemitimages.com/DQmdQfe8GbAEbeNGu58sZU9fUGkd3wUu35yFmD9cRzqEyNz/996C9E85-F946-4804-B9B4-0874088786E1.jpeg)

Then...

![88C67D7F-F304-4B55-8E30-5B6A6F51197C.jpeg](https://cdn.steemitimages.com/DQmXa185H6RREpVfZa7mTUoZTvKkv1iNmK72Zv7H7yJYb72/88C67D7F-F304-4B55-8E30-5B6A6F51197C.jpeg)

Then...

![8EEE76E4-0D1D-4348-9C60-0742A311AE4F.jpeg](https://cdn.steemitimages.com/DQmZxsn993vUFrJnVL7Tm6qs6WMYJcpzyXXPJW4keuMioQS/8EEE76E4-0D1D-4348-9C60-0742A311AE4F.jpeg)

Then...

![EAFB5997-EFA5-49D0-B148-39A18A455FD5.jpeg](https://cdn.steemitimages.com/DQmRMfcC4jzc8JVtwHrgQBn76vCPBUFaBrgfDzEFJmq5QqE/EAFB5997-EFA5-49D0-B148-39A18A455FD5.jpeg)

Then...

![3CF6AC80-680B-4ABE-991C-4CB069786762.jpeg](https://cdn.steemitimages.com/DQmRSwCYB6Lkii5YpmhcRjVRHEhtFow4n3pu7pJSdKdHC1Q/3CF6AC80-680B-4ABE-991C-4CB069786762.jpeg)

Then...

![1A72C6A6-0EFC-4CC3-846F-023B2968989A.jpeg](https://cdn.steemitimages.com/DQmRHCpwED1ycSytcxAM8GvCpzr8qT17sLgH2xoFxExqGbe/1A72C6A6-0EFC-4CC3-846F-023B2968989A.jpeg)

Then...

![01101469-727D-41CC-B6E4-2520822DF16D.jpeg](https://cdn.steemitimages.com/DQmYi4DnbVFegTbBFsGS2N9aEy2YP3hDC1SYqihjeW3DVX1/01101469-727D-41CC-B6E4-2520822DF16D.jpeg)


Then...

![9055CF26-2AA3-4554-B186-33EE74D8071A.jpeg](https://cdn.steemitimages.com/DQmQYdReewP5wgyNSLGVS5DWZgfAtyQQxeFhAHk7uR7GGET/9055CF26-2AA3-4554-B186-33EE74D8071A.jpeg)

Then...

![12D1412D-C4F7-4177-8640-D17B02A9079F.jpeg](https://cdn.steemitimages.com/DQmQYdReewP5wgyNSLGVS5DWZgfAtyQQxeFhAHk7uR7GGET/12D1412D-C4F7-4177-8640-D17B02A9079F.jpeg)


Then...

![299C4DDA-5C64-438B-B208-25D3825EE475.jpeg](https://cdn.steemitimages.com/DQmZxHe8cft3DhbpwiifqEnmdctffmTUTx57diUP3HzGLYp/299C4DDA-5C64-438B-B208-25D3825EE475.jpeg)

Then...

![F5849AD8-927A-4A8D-B9CE-043ADDB567E1.jpeg](https://cdn.steemitimages.com/DQmS6FeepVJfMnaVWWhK3HtDyb9Egb7AWrXTUVWDY8yPQGp/F5849AD8-927A-4A8D-B9CE-043ADDB567E1.jpeg)




**Un-Delegating**
When you want to take your Steem Power back you use the same delegation section and click the **X** at the end of the colum or choose delegate and put zero for amount. Choosing **X** is faster. 

***Follow the pictures:***

**First...**

![B5548D00-C6FA-47C8-A565-060492CCD4D1.jpeg](https://cdn.steemitimages.com/DQmS3kb2Z56GFg2JMff4PL6cyvFw31x6waDnmk86Gb7h5GT/B5548D00-C6FA-47C8-A565-060492CCD4D1.jpeg)

**Second...**

![49047C42-8400-4D10-8B9E-D5A55ED81D89.jpeg](https://cdn.steemitimages.com/DQmU8iH9prjFiV4ZpMhq2HPgivVLSWRmGh8nP2UU178ugty/49047C42-8400-4D10-8B9E-D5A55ED81D89.jpeg)

**Third...**

![49BCD5CB-730C-4268-BF0A-37BC07FC9177.jpeg](https://cdn.steemitimages.com/DQmRBjwFWPwzbDYS63HjCAUnkTzZnyG8rDNkgkVtNRAyiK6/49BCD5CB-730C-4268-BF0A-37BC07FC9177.jpeg)

**Fourth...**

![097E777E-13AD-4A79-B9D9-5B5BE9A9DF80.jpeg](https://cdn.steemitimages.com/DQme4N6hKHpo6bKYNz1wVrHn8d7Uj9Z5dEe5FX3zAURpxKK/097E777E-13AD-4A79-B9D9-5B5BE9A9DF80.jpeg)

**Your Done!**

 
**Delegation things you should also know.**

You can only delegate Steem Power you own. So you can’t delegate Steem Power you leased or Steem Power someone delegated to you.  

Once you undelegate Steem Power the project or business you delegated it to loses that Steem Power immediately and can no longer use it. 

However you won’t be able to use it for 4 days. This is a safety feature to protect the blockchain from people who would abuse this delegation system.

I hope you find this useful. @shortsegments


✍🏼 By Shortsegments



![EDA7150D-35C1-4D67-A8B5-F5861A905324.jpeg](https://cdn.steemitimages.com/DQmcXhUhLi6ah8etSUWunwWHroQhqbiuriGn3AC5yDw236N/EDA7150D-35C1-4D67-A8B5-F5861A905324.jpeg)



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vote details (339)
@sapwood ·
$1.11
> which I think is unique to the SteemBlockchain, is that you when you delegate Steem Power you still control it.

That's the beauty of DeFi. At any point of time, you are the absolute owner of the fund, you can revoke the delegation at any point of time in Steem Blockchain. That is the liberty in other DeFi ecosystems too, such as withdrawing from the LP pool in Justswap and that is how it makes the DeFi ecosystem powerful and that also makes it different than the traditional banking system.

Steem on.

#twopercent #india #affable
👍  ,
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@shortsegments ·
This is true. DeFi gives both opportunity and control,
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@lovveday ·
$0.08
Yes sir, i found this lesson useful. I have not know about this aspect of steemit. Thank you sir
👍  
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vote details (1)
@shortsegments ·
Thank you
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@jehoshua-shey ·
$0.09
Hello @shortsegments

You really expounded the concept of delegation on steem so well. Thank you for this information. Prior to reading this post, I thought delegation was done with steem but after reading this post, I've learnt that it is actually done with steem power and that's where it's all makes sense. 

Delegation is honestly the best loaning system I've ever come across. Someone with a lot of money he has no immediate plans for, say $400 buys steem worth of $400 (about 2400 steem), powers up and then looks for a good place to delegate it to. Each day the person gets at least 1 steem each day. In 30 days, that's 30 steem. No charges or transaction fees. Crazy stuff.

You know, I actually had $400 to spare in 2017. I was in the university then and got some scholarship grant from some oil and gas giant. I had already cleared my dues, I actually had nothing to do with the money then. Damn! if I get in that situation again, oh my! 

The banks in my country refused to do a fixed deposit with that amount, they said it was too small. But over 90 days, I could have earned 90 steem or more and It wouldn't even have been a fixed deposit, as I could have my money withdrawn anytime an emergency arises.

Long live Defi!!

#twopercent #nigeria
👍  ,
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@shortsegments ·
Thank you
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@lavanyalakshman ·
$0.08
Well detailed post. Thank you very much for this detailed post.

In steem on deligation we earn good returns,i completely agree with it. With out doing any thing we earn at least 10% per year. It is very unique feature in steem block chain.

Nice post from you. Have a great day ahead.

#twopercent #india #affable
👍  ,
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vote details (2)
@himo-570 ·
http://www.coastalhealthinstitute.com/site/Kenya-es-Liv.html
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http://www.coastalhealthinstitute.com/site/Kenya-uk-Liv-Liv.html
http://www.coastalhealthinstitute.com/site/Kenya-us-Liv.html
👎  
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@himo-570 ·
http://www.coastalhealthinstitute.com/site/Nadal-es_Liv.html
http://www.coastalhealthinstitute.com/site/Nadal-es-Live.html
http://www.coastalhealthinstitute.com/site/Nadal-es-Ver.html
http://www.coastalhealthinstitute.com/site/Nadalr-es-Liv.html
http://www.coastalhealthinstitute.com/site/Nadalr-es-Ver.html
http://www.coastalhealthinstitute.com/site/Kenya-es-Liv.html
http://www.coastalhealthinstitute.com/site/Kenya-it-Liv.html
http://www.coastalhealthinstitute.com/site/Kenya-uk-Liv.html
http://www.coastalhealthinstitute.com/site/Kenya-uk-Liv-Liv.html
http://www.coastalhealthinstitute.com/site/Kenya-us-Liv.html
👎  
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@sduttaskitchen ·
$0.07
You always share very important information especially it is very useful for us who newly joined the platform, thank you so much 😊👍
👍  
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@shortsegments ·
Your welcome. Thanks for the compliment.
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@sduttaskitchen ·
Pleasure is all mine 😊
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@steemcurator01 ·
Congratulations you are one of the winners of the Steem Crypto Challenge Month...

* [**https://steemit.com/steemcryptochallenge/@steemitblog/1000-days-of-steem-steem-crypto-challenge-month-big-prizes-to-be-won**](https://steemit.com/steemcryptochallenge/@steemitblog/1000-days-of-steem-steem-crypto-challenge-month-big-prizes-to-be-won)

Thank you for taking part

The Steemit Team
👍  
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@shortsegments ·
Thank you very much for this reward!
I greatly appreciate it.
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@haikubot ·
<em>Thank you very much 
For this reward! I greatly 
Appreciate it. 
</em>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>- shortsegments</sup>

---
<sup><sup><em>I'm a bot. I detect haiku.</em></sup></sup>
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@crypto.piotr ·
$0.07
congratulation buddy :)
👍  
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@crypto.piotr ·
$0.07
IMPORTANT QUESTION @steemcurator01

is there any other way to delegate SP (except of steemworld)? can I share with someone direct link allowing to proceed with delegation?
👍  
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@hardaeborla ·
$0.07
I never knew there's more to delegation not until after I read your publication abutting Defi. It's really interesting learning from you and I must admit that your write up really made my day.

Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕💓
👍  
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@shortsegments ·
$0.11
Thank you, and I am glad you found the post helpful.
👍  
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@crypto.piotr ·
$0.07
Dear @shortsegments

Great choice of topic buddy. I've been wondering many times how to explain idea behind delegation. Especially to new users. Or even better - those who do not know much about Steemit.

And I've failed tremendously hehe. Im not sure if it is possible to explain this idea to anyone who doesn't understand STEEM blockchain in the first place. Wouldn't you agree?

ps. IMPORTANT QUESTION:
is there any other way to delegate SP (except of steemworld)? can I share with someone direct link allowing to proceed with delegation?

Yours, Piotr
👍  
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@shortsegments ·
Hi @crypto.piortr
Yes, there is a formula for delegation using code, I use it in this article on Steem-Staking, I probably should do a post on it also.
https://steemit.com/steem-staking/@steem-staking/5r5d1g-why-invest-in-decentralized-finance-on-steemit
I will put the code in a comment.
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