25 February 2021
DeFi - Decentralized Finance can be defined as a form of finance that facilitates financial instruments to the network without the need to rely on intermediaries and it is based on cryptocurrency and blockchain technology. Since the industry is decentralized, it has been seeing exponential growth and popularity. The potentiality of DeFi is promising and because of its functions, it could be the next big thing in the finance world.
DeFi is also a great platform for an investment approach; since its growth has been remarkable it can be concluded that it creates opportunities for the users as well as the investors and if you are looking for projects to invest in.
In this blog, we have listed Best 10 DeFi Projects in 2021:
Website Link: https://aave.com/
Aave is a decentralized open-source and a non-custodial liquidity protocol that enables users to earn interests in the deposits and borrowing assets. The depositors provide liquidity to the market and borrowers are able to borrow in a manner of over-collateralised and under-collateralised. The protocol is audited and secured, and its token AAVE is utilised for the Aave protocol governance.
2. Maker DAO
Website Link: https://makerdao.com/en/
The Maker Protocol is also known as the Multi-Collateral Dai (MCD) facilitates users to generate Dai by leveraging collateral assets that are approved by the Maker Governance. MakerDAO is an open-source project based on the Ethereum blockchain and Decentralised Autonomous Organization. It was created in 2014 and managed by people across the world that holds its governance token. It consists of a decentralized governance community that works to generate Dai and the holders manage the Maker Protocol and DAI-related financial risks enabling efficiency in the system and within the Maker Protocol. The Maker Protocol was the first DeFi application that received significant adoption and it is one of the largest DApps on the Ethereum blockchain.
Website Link: https://www.kava.io/
Kava is a multi-chain DeFi lending platform for digital assets wherein a blockchain for cross-chain DeFi. The platform is a multi-asset DeFi platform that offers USDX stablecoin loans, financial services, and Chainlink oracle data to the blockchain and end-user applications. The users can earn high-yield on their cryptocurrency and the platform is secured, audited and verified.
Website Link: https://renproject.io/
Ren is an open protocol platform that facilitates access to inter-blockchain liquidity for all the DApps - Decentralized applications. The user can transfer any token between any blockchain without having to worry bout wrapping and unwrapping. It facilitates multi-collateral lending, integration of cross-chain assets to DEX, cross-chain OTC trading, cross-chain lending and so forth. RenVM is a decentralised cryptocurrency asset custodian of the platform that powers the decentralized interoperability solution.
5. Band Protocol
Website Link: https://bandprotocol.com/
Band Protocol is a cross-chain data oracle platform that facilitates aggregating and connecting the APIs and the real-world data to smart contracts. The platform is secure, scalable, and blockchain-agnostic. It consists of built-in price oracle, developers can create custom-made oracles, and enables developers to create price feeds, event reports and data oracles. It provides a suite of tools for the API providers and enables smart contracts and blockchain developers to connect DApps with any open APIs through Data Oracle Script which also is customizable and programmable in any language that is compatible with WebAssembly standard.
Website Link: https://0x.org/
0x is a grade liquidity aggregator for DeFi applications, thus, it is an open protocol for decentralized digital asset exchange. Its smart order routing enables splits up of the user’s transaction across decentralized exchange networks and fills with possible lowest slippage. It works to enables all forms of value such as fiat currencies, stocks, bonds, real estate, digital collectibles, software licenses and so forth to be tokenized on public blockchains.
Also Read, The Novice Guide To Yield Farming On DeFi
Website Link: https://www.curve.fi/
Curve is an exchange liquidity pool based on Ethereum that enables efficient stablecoin trading, low risk for liquidity providers, and supplemental income fee for liquidity providers. It allows users and smart contracts to trade between USDC and DAI with low slippage, low fee algorithm for stablecoins and to earn users. The platform also facilitates the supply of liquidity pool to the Compound protocol
Website Link: https://chain.link/solutions/defi
Chainlink is a decentralized oracle network that secures price feeds for DeFi enabling tamper-resistant and high-quality price feeds. The platform connects smart contracts on any blockchain to real-world data, events, web APIs, enterprise systems, data providers, cloud services, payment systems, IoT devices and many more. It facilitates blockchain-based derivatives platforms, lending and borrowing platforms, stablecoins, asset management platforms, high-quality data, end-to-end decentralization, crypto-economic security, blockchain-agnostic, open-source community and so forth.
Website Link: https://uniswap.org/
Uniswap is an automated decentralized trading pool that enables liquidity to users and Ethereum applications. It works on the Ethereum blockchain and the protocol of Uniswap is to create liquidity and trading of ERC-20 tokens on Ethereum. It facilitates liquidity providers, developers and traders to participate in a financial marketplace, and eliminates trusted intermediaries, rent extraction while enabling fast and efficient trading.
Website Link: https://compound.finance/
Compound is an open-source software development platform that facilitates tools, products and services for DeFi ecosystem. It is a protocol that is an algorithmic and autonomous interest rate which is built for developers for open financial applications. It is secured, audited, verified, and enables users borrowers to take loans and lenders to provide loan by locking crypto assets within the protocol.