Hello again, Altcoins and BTC Communities... I’m a newbie investor looking to take advantage of the current crypto market situation amid the coronavirus and the temporary price reversals happening in the market. The last month of 2020 has been a blast for the crypto world as it faces such exponential growth in just a span of a month. There has also been a rise in the development and introduction of decentralized finance assets to this day. Before we dive deep into the top ten DeFi projects, we must first know their definition and essence.
DeFi systems are projects with respective cryptocurrency representatives with one goal in mind: to decentralize and disrupt financial institutions like banks and other physical financial storage/s. DeFi projects are tasked with the introduction and development of modern-day cryptocurrency trading platforms. This in turn allows a wide variety of digital investment opportunities, breaking the limitations created by banks and other fundamental financial schemes.
DeFi projects are expected to rise up and increase their engagement with modern-day financial trading. Provided below are the top ten (10) DeFi projects to keep an eye on:
10. Uniswap –Uniswap has two (2) versions, with version one as an on-chain system of smart contracts on the Ethereum blockchain that implements an automated liquidity protocol based on constant product formula. Version two offers a new implementation based on the same formula, with several highly remarkable features. Uniswap is a fully decentralized, open-source exchange platform that provides incentivized liquidity pools. This incentivizing system is directed towards people trading on the exchange to become liquidity providers. Uniswap users pool their money together to create a fund that is used to execute all trades that take place on the system.
9. Serum – a decentralized exchange (DEX) that provides speedy and low-cost transactions towards its users. Serum utilizes on-chain order books with an interface familiar to that of centralized exchanges. This allows its users to endorse their orders with directions, giving them full control over their own assets. It is also noteworthy to mention Serum's program of giving its users the ability to trade custom cryptocurrency contracts, permitting them to assume positions on any product that Serum has to offer, even including cross-chain physically settled contracts which can also be tokenized for the blockchain.
8. UMA – is an open-source infrastructure that aims to deploy and enforce synthetic assets on the Ethereum blockchain. UMA provides its users the capacity to engage in priceless financial contracts. These contracts do not require an on-chain price feed to work and are designed to incentivize counterparties to properly collateralized their positions without any on-chain price feed. As the UMA community defines, their synthetic tokens are assets whose value changes over time depending on their tokens' reference index. By utilizing these priceless financial contracts, developers on UMA can secure and create synthetic tokens, directly benefitting UMA's token sponsors. To date, UMA has a total of sixty-three (63) million value locked in contracts, with a corresponding amount of twenty-one (21) million total value of synthetic tokens dedicated.
7. Compound – is an algorithmic and autonomous DeFi project under the Ethereum blockchain that enables its stakeholders to borrow and lend a certain amount of cryptocurrencies. These include Dai (DAI) Ether (ETH), Tether (USDT), among others. Users who store their financial holdings with Compound also gain the benefit of financial interest towards their accounts, depending on the type of cryptocurrency they used in making negotiations. To this day, the Compound DeFi has more than eight ( 8 ) million dollars worth of assets locked upon its asset earning across nine (9) different projects.
6. Blocknet – a decentralized network that connects blockchains, whether through cross-chain Dapps or even using a protocol as a second layer to extend the blockchain functionality, Blocknet provides its developers the authority to establish applications that will secure digital transactions. Blocknet offers its lightweight and multi-asset wallet called the XLite. With the use of XLite, Blocknet's stakeholders can manage to buy, sell, and store cryptocurrencies. Connecting the XLite wallet to Blocknet's Block DX will allow greater trading opportunities for its users, reducing any unnecessary consumption of time and effort in navigating to other trading platforms.
5. Divi – the Divi project has presented itself and offered the solution to introduce the use of crypto in today's world. To achieve its goal, it has made its move to establish the Divi wallet. This user-friendly smart wallet brings up promising features of multi-coin system trading, even including fiat. The Divi wallet also has its lottery blocks program that weekly draws and announces Divi coin winners from its participants. The Divi clients can also earn more of its coins by running and maintaining Divi-powered masternodes. The Divi project will soon launch its Divi card, a Visa/Mastercard debit card which can be funded by the user's crypto balances on their Divi Wallet. This revolutionary strategy will allow the widespread introduction and use of crypto in day-to-day financial transactions.
4. Stakenet – Stakenet is an autonomous and future-proof platform that combines the Lightning network and Masternode into a global blockchain for decentralized applications. The Lightning Network is a second-layer solution that enables peer-to-peer off-chain transactions within a blockchain or between and among different blockchains. A Masternode on the other hand is a dedicated full node of a blockchain that resides around the world. The Stakenet project has furnished its Masternodes to be Lightning network ready. This design allows Stakenet users to experience the instant and virtually feeless transactions of cryptocurrency. Currently, the Stakenet wallet, Stakenet's non-custodial multi-currency light wallet that features Stakenet DEX is currently in beta testing.
3. Binance – one of the most well-known cryptocurrency exchange platforms in this day and age, with an average daily trading volume of over two (2) billion USD and processes more than one point four (1.4) million transactions per second, the Binance application offers trading of many different cryptocurrencies like Bitcoin, Dogecoin, Ethereum, Polkadot, Cardano, and many more. Binance is known for having insurance protection for its crypto traders, accompanied by its multi-level security features to avoid any loss of investments. Binance also supports margin trading, where users who have the courage to stake greater risks for greater profits are welcome.
2. Polkadot – a flagship project by Web3 Foundation, a Swiss Foundation founded to facilitate a fully functional and user-friendly decentralized web. Polkadot's mission is to connect private and consortium chains, public and permissionless networks, oracles, and future technologies yet to be created. Furthermore, Polkadot enables the cross-chain transfer of any type of data or asset not limited to tokens. To date, Polkadot has climbed up the ranks of the cryptocurrency market, as an alternative crypto coin that has gained a two hundred fifty-five percent (255%) increase in performance compared to the sixty-seven percent (67%) of Bitcoin. A Dubai-based FD7 Ventures recently announced its plan to sell seven hundred fifty million (750,000,000.00) dollar worth of its Bitcoin holdings over the next month in Cardano and Polkadot blockchain.
1. Cardano – defined as a blockchain platform for changemakers, innovators, and visionaries alike, offering the technology required to establish unparalleled security and credibility to decentralized applications. Cardano is the first blockchain platform that was built through peer-reviewed research that secures enough information to proceed with processing billions of data. Cardano features the Ouroboros, the first peer-reviewed, verifiably secured blockchain protocol. Ouroboros is responsible for maintaining Cardano's decentralized and sustainable network, allowing it to run seamlessly. Alongside Polkadot, a big number of investors have set their eyes on staking their assets in Cardano. Its cryptocurrency, ADA, has reached its all-time high value of one point thirty (1.30) dollars per coin. This development has turned Cardano to become one of the largest cryptocurrency platforms with a measured market capitalization of around thirty-nine (39) billion.
The future of the crypto ecosystem is and will always be uncertain. We shall be prepared to receive groundbreaking news, whether good or bad. We shall also expect an increase in the number of other different blockchain companies together with their respective crypto-powered projects, given the fact that the cryptocurrency has proven itself as an indestructible investment that can change the financial capacity of its rightful owner/s.
I would love your help. I'm open to every opinion.
