By now, it can be said that most people know what cryptocurrency is, or at least they have heard of Bitcoin. Growing interest from some of the most prominent institutions in the world has helped increase Bitcoin’s popularity. Let’s find out top 10 DeFi projects in this article!
Recently, NFTs have become increasingly popular and even more celebrities have started promoting them, continuing to attract mainstream press focusing on the crypto and blockchain space. However, apart from Bitcoin’s recent all-time high and growing fascination with NFTs, perhaps the most significant development in the space lies in the area of decentralized finance (Defi) with established members. equally brilliant.
DeFi is quickly becoming one of the most exciting areas of focus in the space. Here is a list of the top 10 DeFi projects that could impact the future of the financial industry.
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Aave
Aave is an open-source liquidity protocol used to earn interest in cryptocurrencies through depositing and borrowing assets. Aave is one of the leaders in the DeFi space and is non-custodial, which means Aave doesn’t have any control over users’ private keys or cryptocurrencies. Essentially, the platform does not directly interact with users’ crypto assets.
Users participate as depositors or borrowers. Depositors provide liquidity to earn passive income, while borrowers can choose between borrowing in a high-mortgage or low-mortgage way. The AAVE token gives holders the ability to vote on improvements to the Aave protocol. At the same time, users who stake AAVE can earn staking fees and rewards from the protocol.
Aave was one of the biggest projects during the summer of DeFi craze in 2020. Aave allows users to borrow and lend with more than 20 different cryptocurrencies, providing more options for users compared to other cryptocurrencies. competitors in the space and make it one of the top DeFi projects.
Compound is one of the top 10 DeFi projects
Compound is an automated interest protocol that allows users to earn interest and borrow cryptocurrency. The platform currently helps users earn interest and borrow 13 different cryptocurrencies. Compound allows anyone to deposit Ethereum-backed tokens to earn interest on their tokens or take out a secured loan.
COMP native token holders can propose changes to the Compound protocol and vote on whether to accept changes from other token holders without the Compound team participating.
This sets it apart from other similar protocols. Users can earn COMP tokens by depositing cryptocurrencies or borrowing money, or they can buy them from several exchanges. The compound is one of Aave’s biggest competitors.
Yearn.finance
Yearn.finance uses automation to help users maximize their profits from yield farming. Yield farming is a method of earning rewards and interest from cryptocurrencies by searching for the best interest rates and deals on the lending markets.
Yield farming is a complex process, but Yearn.finance uses automation to simplify the yield farming process for the non-tech savvy, allowing them to benefit from profitable farming. without any of the stress associated with the required technical knowledge. Yearn.finance is set up to make decentralized finance and yield farming easier for the average investor.
Chainlink
Chainlink is a decentralized oracle service. Blockchains cannot access data that exists outside of the network so oracle is used as the data feed. Chainlink allows DeFi investors to have access to data from the outside.
Access to real-world data gives investors access to the data they need to complete financial transactions. Chainlink’s decentralized oracle network provides input and output to smart contracts on any blockchain.
By providing access to real-world data, Chainlink improves the capabilities of smart contracts.
Uniswap
Uniswap is quickly becoming the leader in decentralized finance. Uniswap is a trustless, decentralized financial infrastructure that enables token swaps and provides liquidity through liquidity pools.
The platform also has a strong governance structure, allowing the community to own the protocol through Uniswap’s UNI token ownership. Uniswap is primarily built as a decentralized exchange on the Ethereum blockchain for ERC-20 token swaps.
To appreciate Uniswap’s rapid ascent to the leading DeFi platform, the numbers must be considered. At the time of writing, Uniswap’s all-time high volume is over $196 billion. The community includes over 72K liquidity providers, over 39 million transactions, and over 200 DeFi integrations.
In addition, the UNI token quickly became one of the most popular tokens on many exchanges. Uniswap’s dedicated community and governance system show that the platform will continue to grow and become more influential in the years to come.
Serums
Serum is an ecosystem and decentralized exchange (DEX). The platform is known for its strength in providing low transaction costs and unparalleled speed.
Transaction speed and cost are the two main issues facing decentralized finance. By solving these problems, Serum makes a difference and will ultimately help advance the goals of decentralized finance and help DeFi. Fast transaction speeds and low costs could help DeFi gain mass adoption.
The serum runs on the Solana blockchain and is permissionless, which means you don’t need permission to join the community, use the DEX, and benefit from the ecosystem.
Polkadot
Polkadot is a multi-chain platform. The platform works on the whitepaper written by Gavin Wood. Gavin Wood was previously the co-founder and CTO of Ethereum. Polkadot allows the transfer of data between connected blockchains (known as parachains). Polkadot makes it possible to use data from private, restricted networks on public blockchains.
Polkadot is a smart contract platform, however, many developers are using it to develop DeFi projects and build DeFi engines because it is fast and allows for scalability. These are two aspects that Ethereum can leverage to improve. The main goal of Polkadot is to enable a completely decentralized network where users have full control.
MakerDAO
MakerDAO is a Decentralized Autonomous Organization (DAO) and one of the most recognized DeFi projects. This is mainly due to its connection to DAI, a stablecoin whose value is pegged to the US dollar and one of the crypto industry’s most popular stablecoins.
DAI is a currency that anyone can use at any time. Maker allows to lock DAI on their platform and earn DAI savings rate set by Maker community.
The Maker Protocol, also known as the smart contract that powers DAI, is administered by Maker’s MKR governance token holders. Maker is a cryptocurrency ecosystem and has more than 400 applications and services integrated with stablecoin DAI. Including wallets, DeFi projects and platforms, blockchain games.
Orion Protocol
Orion Protocol’s mission is to solve some of the biggest problems in DeFi by consolidating the cryptocurrency market. This DeFi project is building the first gateway to the entire market. The goal is to “aggregate every CEX, DEX, and swap pool into one decentralized platform,” creating a connection between the various DeFi products in the space.
The sprawling nature of the cryptocurrency market today has divided DeFi and traditional finance. By creating an entry point where the entire digital asset market can be accessed in one place, this protocol could theoretically be used to bridge the gap between cryptocurrencies, traditional finance and real-world assets.
Synthetix
Synthetix is a liquidity protocol that describes itself as the “backbone for derivatives trading in DeFi”. With over $2 billion in assets locked in the protocol, Synthetix is fast becoming a leading DeFi project. Synthetix allows trading and staking on its platform.
SNX token holders have administrative rights in the structure of Synthetix. The SNX token will give holders the power to disqualify selected DAO members and veto the decisions of selected members in some cases.
Final thought
The DeFi projects listed in this article are just a few of the many that are poised to impact the future of the financial industry. It is clear that the DeFi space continues to grow and offer more innovative solutions to the problems of centralized finance. In short, the future of finance is decentralized.
Top News hopes you find this can help you learn more about DeFi projects and up-to-date information!
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