Top 7 DeFi projects in 2022
The revolutionary DeFi idea completely ruined the whole conventional ways and represented a new technology of transferring data, especially money. It has provided more efficiency, transparency and decentralization in financial systems and members can have complete control over their personal information. Furthermore, There are some great DeFi based projects which Bonti has introduced in this article.
What’s DeFi purpose?
It’s crystal clear that DeFi has come to eliminate the middleman and the main control of the governments and Banks over people’s personal information. Decentralized Finance -as the name shows- has cut off the third party to secure the transactions, decreasing the confirmation process time and giving the whole control to the members. By DeFi, there’s no need to wait for financial institutions or banks to confirm the transactions or there is no more fear of human mistake during the process. The leader of DeFi is Ethereum blockchain which hosts a lot of projects. We are going to mention 7 best DeFi projects in the remaining of the article.
UniSwap is the first decentralized exchange (DEX) using the AMM mechanism -Automated Market Maker- which is the foundation of all the DEXs on Ethereum blockchain or any other blockchains supporting DeFi.
The native token of this exchange is called $UNI which is an ERC-20 token. The first version of UniSwap was released by its founder Adams in 2018. This platform by using AMM is consistently increasing the liquidity and the slippage rate is at its lowest.
One of the intriguing lend and borrow platforms is Compound. This platform allows the users to stake cryptocurrencies and get a loan with an interest rate. This rate would be calculated by the supply and demand over that currency or in general digital assets. Moreover, Compound members are able to charge cryptocurrencies and buy $cToken the native token of Compound. By holding the cToken, members would be rewarded during this period.
Bancor is one of the first decentralized exchanges based on Ethereum blockchain represented in 2016. This open-source platform provides permissionless token trading using smart contracts. Bancor -like UniSwap- uses AMM which allows the users to earn interest by providing the liquidity for the liquidity pool.
The native token of Bancor is called BNT used for in-app transactions.
Maker is an Ethereum based platform using smart contracts for lending and borrowing for ERC-20 token owners by collateral. The stable coin used in Maker is DAI. The lending process starts by blocking an amount of crypto i.g. 2 ethereums and getting DAI which can be used for in-platform transactions. DAI is created to bring more transparency to the transactions and omit the middleman exactly like the purpose blockchain has.
Aave is another lending platform which allows the users to be both lenders and borrowers. When you lend, you earn interest, when you borrow, you pay interest. In this platform, You will put up collateral in cryptocurrencies but there is no bank or financial institutions involved. It’s only users using smart contracts running the network.
Avalanche by concentrating on speed, efficiency, extensibility to other networks, more scalability and cutting the transaction fees by hosting the million membered DApps without an awful UX, has become one of the popular platforms for the crypto community. Avalanche, by having 1000 full nodes, claims that the network confirms the transactions in less than a second. $AVAX is the native token of the platform. Avalanche can host NFTs which has made it more intriguing.
Chainlink is a decentralized oracle built atop Ethereum blockchain invented to be a connection between external data and the blockchain and vice versa. The native token of Chainlink is called $INK.
There are a lot of projects with different functions and purposes which mostly are built atop Ethereum blockchain and have revolutionized the whole conventional financial industry. In this article, we tried to mention the bests based on users’ experience.