10 DeFi and Altcoin Projects That Should Be Followed In The End Of 2020. If you’re following the blockchain space, you’ve probably heard that $ 4 billion of assets have recently flowed into an emerging industry called Defi (decentralized finance).
So what exactly is DeFi and why is it important? In short, DeFi is a decentralized platform that emerged to bring the mass market of unsupervised financial services by leveraging Ethereum’s interoperability and smart contract capabilities. With DeFi, the average person can send their money to a lending pool that enables a smart contract with interest rates of up to 20%; it can even earn much more.
Beyond this simple example, DeFi helps democratize financial assets and various components in the industry, from the way data is collected and managed, to securities tokens and stablecoins. According to DeFi monitoring site DeFiPrime, there are currently more than 100 projects addressing various DeFi solutions.
Here are the projects that lead the DeFi field and attract the attention of investors and product developers!
DIA (Decentralized Information Entity); It is a non-profit open-source Swiss blockchain project that sets its mission to ensure the adoption of transparent, open-access data and oracles. Within DIA’s DeFi ecosystem, a decentralized community of DIA token holders is in control, and DIA’s governance token serves as an incentive for key market actors.
DIA is poised to become an open source “Bloomberg” for crypto and financial data. DIA is currently one of the most anticipated projects in the DeFi space, and the token sale started on August 3. The project is supported by important investors such as Outlier Ventures.
2. Orion Protocol
Orion Protocol (ORN) came to the market as the first Dynamic Coin Offering (DYCO) and was one of the most requested sales in 2020. Orion is building B2B and B2C solutions on the most advanced liquidity aggregator ever developed, led by CEO Alexey Koloskov, an experienced blockchain developer and creator of the Waves exchange.
Orion has signed partnerships with Elrond Network, Bitmax, MXC, and Acheron since its launch. Since launching on Kucoin and Bitmax, about 33% of the initial ORN supply was given to a pre-stake program, and the token was then stabilized over 20 times that.
Aleph.im is one of the newest projects seen in the DeFi space over the past few months. Aleph says the blockchain works as nodes for decentralized computing power and storage; It is a chat protocol for machines. By 2020, the public cloud services market is expected to reach $ 374 billion and exceed $ 520 billion by 2022. While Amazon’s AWS is currently the market leader, the demand for decentralized solutions has never been higher.
As a testament to Aleph.im’s success, it can be said that the websites are actually running over the network right now. Aleph will also be included as one of the partners of Serum, the world’s first fully decentralized derivatives exchange project.
Leading crypto derivatives exchange FTX announced the new DeFi DEX (decentralized exchange) to be built in Solana. DEX, which will be unveiled under the name Serum, will try to close the points where other DEXs fail by providing trading at the speed and price customers want.
According to DeFi Rate, “Serum seems to aim to offer investors the familiarity and convenience of a centralized exchange like FTX in a completely decentralized and reliable way. The architecture is poised to support node operators with various incentives, along with SRM inflation, transaction fees, and a delegation / reference system called “leaders.”
Compound was one of the first products of the last DeFi cycle to gain mass attention as its native token COMP before correcting its current levels. Compound is a money market protocol that allows all users to earn interest on the Ethereum blockchain or to borrow assets in exchange for collateral.
The process of contributing to a liquidity pool on compound is relatively straightforward; everyone is allowed to start earning interest immediately, with rates automatically adjusted according to supply and demand.
One of the more fascinating projects, Yearn Finance experienced mind-blowing growth in its local tokens, YFI, in July thanks to a limited supply dedicated to liquidity providers. Yearn acts as a decentralized ecosystem for aggregators using lending services, allowing participants to swap tokens such as USDC, DAI and USDT, and participate in Yearn’s most profitable lending opportunities.
The company is led by developer Andre Cronje, who started the process with democratization in mind. There were no things like front mining, front selling, or team buying tokens – so YFI tokens essentially belong to the community. It will be interesting to see how YFI performs in the coming months.
Powered by Synthetix, dHedge is backed by leading investors such as Blocktower Capital and Three Arrows Capital, and has created a new protocol for decentralized asset management aimed at democratizing trading for all. The company recently announced that it will exit stealth mode.
With Synthetix’s zero-slip trading model and broad set of assets listed, dHedge is looking for new ways to harness the liquidity of derivatives provided by the Synthetix protocol. Synthetic currently allows users to extract, hold, and trade derivatives based on such various assets, including cryptocurrencies, fiat currencies, and commodities.
Uniswap is one of the driving forces behind the current DeFi bull run. Acting as a fully decentralized exchange, Uniswap differs from other DEXs as it utilizes incentive-based liquidity pools rather than order books. Users who decide to provide liquidity will be rewarded with a fraction of the fees for each Ethereum-powered transaction.
Currently, Uniswap has a liquidity pool of over $ 100 million and the amount locked there is growing. For novice cryptocurrency users; There is also a feature to learn Uniswap. There are also issues that need to be examined before using Uniswap.
Launched in early 2020, Curve is specifically designed for stablecoins with its low financial slippage and low paying algorithm. It allows users to trade between stablecoins. Curve was one of the first advocates of “yield farming” and currently offers 7 pools where users can deposit stablecones to earn rewards such as new currencies. Currently, $ 210 million is locked in Curve pools.
With a simple interface, Curve is one of the most popular DeFi platforms and has been praised for its user-friendly features and transparency. The company has been supporting other DeFi projects in recent months.
10. Maker DAO
With over $ 1 billion in locked assets, Maker DAO is probably the most well-known platform on this list. The decentralized loan platform supports DAI, a stablecoin with value pegged to USD and one of the most used stablecoins in the cryptocurrency industry. Maker DAO allows anyone to open a “safe”, lock crypto collateral and create DAI with it.