The protocol allows low slippage swaps of stablecoins such as USDT, DAI, and USDC. Curve FinanceĬurve Finance is an Ethereum based decentralized exchange liquidity pool tailored for efficient stablecoin trading. With over $4 billion locked in its trading pools, SushiSwap has emerged as a leading DeFi platform that enables you to trade digital assets without the need of any intermediaries. The platform allows you to make a liquidity pool for your own token by providing ETH and any ERC20 of your choice and swapping out one token for another. Essentially, it’s a copy and paste of Uniswap, with some changes to Uniswap’s open-source code. SushiSwap is a decentralized application that aims to incentivize a network of users by providing a platform where users can purchase and sell digital assets. Each liquidity pair is denoted by a unique, freely-transferable ERC20 token.Ĭurrently, $4 billion worth of Ethereum tokens is held in Uniswap liquidity pools. Uniswap enables users to create markets (i.e., liquidity pools) that help improve the protocol’s exchange liquidity. The conversion of ERC20 tokens is done through a simple UI in a private, secure and non-custodial manner. Uniswap is a decentralized exchange protocol that allows users to swap between ETH and ERC20 tokens on-chain or earn fees by providing any amount of liquidity. Presently, Aave has over $5 billion locked up in its smart contract. The protocol’s native governance token is LEND but can support 16 digital assets (13 of which can be collateral). Lenders provide liquidity to the market to earn passive income, while borrowers can obtain overcollateralized and undercollateralized loans.Īave provides trustless, uncollateralized loans where borrowing and repayment must happen in the same transaction. AaveĪave is a decentralized, non-custodial liquidity market protocol where you can participate as a lender or borrower. The protocol has over $6 billion locked up in its liquidity pools, making it one of the most popular DeFi platforms out there. Interest rates adjust automatically in relation to supply and demand.Ĭompound sets aside ten percent of the interest paid as reserves, with the remainder going to liquidity suppliers. You can add assets to Compound’s liquidity pool and immediately start earning compounding interest. CompoundĬompound is a decentralized money market protocol based on the Ethereum blockchain that allows digital asset holders to borrow and lend crypto against collateral. Moreover, DAI holders can lock their DAI into Maker’s Dai Savings Rate (DSR) contract and earn a variable interest in Dai, produced from stability fees. Instead, the Maker protocol relies on smart contracts and collateralized ETH to maintain price stability. Unlike other dollar-backed stablecoins, it does not hold USD in the bank. You can use Maker to open a vault, lock in collateral such as ETH, and generate DAI as debt against that collateral.ĭAI is the only stablecoin that you can use without limitations. MakerDAO is a decentralized lending application on the Ethereum blockchain that supports the Dai (DAI), a stablecoin that is pegged to the USD. The platform has over $7 billion worth of tokens locked in Maker protocol smart contracts. Maker is the most notable DeFi application in the market today. We have referenced data from DeFi analytics provider DeFi Pulse to come up with our list of top DeFi applications. In this guide, we will list twelve leading Ethereum-powered DeFi protocols ranked by the dollar amount locked up in each platform’s smart contracts. Today, the total value locked up in DeFi has more than doubled from January this year to stand at over $42 billion. Instead, the role of financial institutions is replaced by decentralized smart contract protocols. Today, DeFi users can borrow, lend, trade, invest, and make payments without the need for a financial institution as an intermediary. DeFi refers to financial services built on the blockchain, mainly on the Ethereum network, that allows anyone to access financial products and services online in a decentralized and borderless manner. Click to share on Telegram (Opens in new window)ĭecentralized finance (DeFi) is one of the hottest trends to emerge out of the crypto markets. Click to share on Twitter (Opens in new window).Click to share on LinkedIn (Opens in new window). Click to share on Facebook (Opens in new window).
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