If you observe the financial markets, you may hear the term “decentralized finance” or “DeFi” pop up a lot.
In an increasingly digital world of finance, DeFi focuses on bringing the convenience of peer-to-peer trading to investors.
By harnessing the efficiency and power of smart contracts (digital contracts that exist on the blockchain), DeFi platforms create a space for lending, borrowing, trading, saving, and earning interest without all the usual bureaucracy and minutiae.
The goal of DeFi networks is simple: no paperwork and no time waiting through a bank for transactions to clear.
Automating contract processes on the blockchain eliminates the need for manual intervention.
Step Up Doing business with DeFi is seamless and fast.
Equal Opportunity DeFi is bridging the gap between individuals and financial oligarchs.
At the beginning of 2019, the TVL of lending platforms (mainly MakerDAO) was $270 million.
This momentum continued in 2020 as well, until Compound kicked off the craze with the launch of its governance token, COMP, and the first call for liquidity mining.
By December 2021, DeFi’s TVL jumped more than 1,000 times to $322.41 billion.
You can see the top 20 coins and items below.
The top ten DeFi selections in 2022 select the most promising DeFi tokens in 2022 from two aspects. Comprehensive evaluation and screening of two rankings. DeFi market capitalization 1. Curve (CRV) Curve is a decentralized stablecoin exchange.
Its liquidity is managed by automated market makers.
Curve Finance’s governance token is CRV.
The protocol implements a complex time-based staking system that exchanges CRV for veCRV, where veCRV is a token used for governance purposes and has rights to claim the cash flows generated by the protocol.
2. MakerDAO (MKR) Using Maker, users can lock up collateral as collateral for loans in exchange for Dai.
The Maker Foundation founded it in 2015 as an open source project to provide economic freedom and opportunity to anyone, anywhere.
In late 2017, Maker launched its first stablecoin, Single Collateral Dai (SAI), which uses ether (ETH) as collateral.
3.AAVE (AAVE) Using the Ethereum token AAVE, users can participate in the non-custodial decentralized currency market.
In exchange for paying a floating interest rate, deposits provide liquidity to the market, and borrowers can borrow cryptocurrencies.
4. WBTC (WBTC) Wrapped Bitcoin (WBTC) is a tokenized version of Bitcoin (BTC) that runs on the Ethereum blockchain (ETH).
WBTC is compatible with ERC-20, the basic compatibility standard for the Ethereum blockchain, enabling it to work with the latter’s ecosystem of decentralized exchanges, crypto lending services, prediction markets, and other DeFi-enabled decentralized applications.
The system is fully integrated.
5. Convex Finance (CVX) - DeFi 2.0 Convex simplifies the Curve boosting experience to maximize yields.
With Convex, Curve liquidity providers can earn trading fees and claim boosted CRV without having to lock the CRV themselves.
It is easy for liquidity providers to offer liquidity rewards and increase CRV.
Convex allows users to stake CRV and receive a portion of the boosted CRV received from trading fees and liquidity providers.
It improves the balance between liquidity providers and CRV stakeholders as well as capital efficiency.