The crypto space is full of exciting opportunities. These are the top 5 projects you should consider if your goal is to make it big in 2019 and beyond.
The “best defi projects 2020” is a possible Megatrend that will come with the release of DeFi 2.0. Here are top 5 projects you should consider before investing in them.
We analyzed and inspected the DeFi area to bring you the top 5 projects that are based on Defi 2.0. These projects, we feel, have enormous potential and will establish a new benchmark in the impending mega bull market.
DeFi is going to be the next big thing in the crypto world. Defi’s total market capitalization is well over $150 billion, and we’re just scratching the surface. This year, a lot of that value expanded as more people realized how decentralized apps may deliver the ideal blend of return and efficiency. The amount of money going into these Defi apps is mind-boggling, but it proves the value of fresh supply-side innovation.
Cryptocurrency’s market demand is always increasing. People want economic models that provide people with digital equality and better alternatives to old financial institutions. While many initiatives are tackling the underlying issues, we are still seeing changes in liquidity, scalability, and capital efficiency. The potential of Defi 2.0 initiatives to take crypto mainstream will determine the next bull run. It’s critical for protocols and platforms to provide the best ways to engage with a network like Ethereum without having to pay large gas costs or endure lengthy wait times.
We need programs that concentrate on improving TVL and producing a healthy cash flow to overcome these limits. Capital efficiency will be critical in the next crypto megatrend. New-gen initiatives in Defi 2.0 will focus on reducing transitory losses, strengthening financing markets, and functioning under direct control.
We analyzed and inspected the DeFi area to bring you the top 5 projects that are based on Defi 2.0. These projects, we feel, have enormous potential and will establish a new benchmark in the impending mega bull market. Let’s get this party started!
Abracadabra Money is number one (SPELL)
- $1.79 billion in market capitalization
- 0.025$ is the price.
- Exchanges: Uniswap, FTX
We discussed how essential capital efficiency would be in the DeFi 2.0. And Abracadabra Money does all of this and more. It’s a closed-loop lending system that uses interest-bearing tokens like yvWETH or yvUSDC to fund Magic Internet Money (MIM), a dollar-pegged digital currency. The SPELL token acts as the ecosystem’s governance token and provides excellent rewards via staking.
Users may readily alter their collateral ratio on the lending platform, enhancing capital efficiency and earning rewards. Not only that, but the MIM token may be used as a decentralized stablecoin that is more useful and multi-chain compatible than its contemporaries.
Users are in a great position to discover attractive options thanks to the notion of yield farming with leverage. They may use the interest-bearing tokens to take out a loan with a lower interest rate and get close to 90% of their deposit value back. This, however, carries the danger of being liquidated. “It’s a whole new manner of market-making in the decentralized world,” stated Abracadabra’s co-founder.
This project’s trajectory seems to be promising and significant. The team wants to create an automated liquidity pool that will provide depositors with higher returns and provide MIM and SPELL tokens more use. If properly executed, this might be a key impetus for the next DeFi bull run, bridging the gap between market-making and stablecoins.
Popsicle Finance is No. 2 on the list (ICE)
- $383 million in market capitalization
- 33.3 dollars
- Bitfinex, Uniswap, and Pancakeswap are some of the cryptocurrency exchanges available.
The next item on our list is a platform for cross-chain liquidity management. Popsicle Finance understands that today’s ecosystem is not chain-agnostic. Users are able to transfer cash across chains without difficulty. Popsicle Finance devised a number of products to address this issue, including Sorbetto, Gelateria, and Frapped.io. The three of them work together to form a capital-efficient ecology.
Sorbetto is a term that refers to two different types of ice cream. Limone is one and Fragola is the other. Sorbetto Fragola uses Uniswap V3 to place users’ cash in the most traded usage zone, increasing their earning potential. Popsicle Finance’s custom price range takes into account consumers’ temporary losses and maximizes their yield after taking into account the asset’s historical volatility. It’s a wonderful fit for liquidity providers since the pools aren’t yet overcrowded, and they don’t have to worry about figuring out how to disseminate money effectively.
Gelateria is another feature that has yet to be implemented. It is a lending mechanism that enables limited partners (LPs) to leverage up and earn higher rates on a variety of assets. Frapped.io, the first and only non-custodial official wrapper of USDT, is also in the works. It improves regular stablecoins’ blockchain interoperability. The wrapped tokens are now accessible on BSC and Fantom Opera.
Gelato Network, No. 3
- $18.6 million in market capitalization
- 1.91 dollars
- Gate and Uniswap are two exchanges.
We need to see projects that add functionality to current ones if DeFi 2.0 is to become a crypto megatrend. Gelato is one such network that tries to address concerns with decentralized applications. It’s a web-based protocol for automating smart contracts and enabling new processes. Its network of dependable bots is where the innovation rests. Developers may leverage the protocol’s underlying infrastructure to add new activities and automate them on behalf of their consumers.
Gelato Network, one of the first initiatives to do so, has already connected with a number of crypto protocols and runs hundreds of automated sequences per month. Gelato’s smart contract automation capability is used by Instadapp, an asset management platform, to secure under collateralized debt situations. As a consequence, users are no longer need to wait for cash to be transferred from one lending protocol to another.
Gelato is also offering a solution to a long-standing issue with Uniswap v3. The Gelato network is used by Uniswap’s G-UNI liquidity management system to reward its community to supply deep liquidity. The number of conceivable applications for this project is limitless. It may assist yield farming initiatives by automating the harvesting and reinvestment of incentives. It can make updating leaderboards and delivering incentives easier for NFTs and gamers. If developed properly, the Gelato network will be the go-to site for all Ethereum-based developers and apps based on layer two networks.
#4 [STRP] Strips Finance
- $15.1 million in market capitalization
- 7.05 dollars
- Gate and Uniswap are two exchanges.
Strips Finance is taking on one of the most underappreciated risks in the DeFi industry: dealing with yield-generating projects. And then there’s the issue of interest and borrowing rates shifting. We often observe projects that fail to offer a set or steady interest rate range. Strips Finance aims to alter that for the benefit of mass adoption.
The first Arbitrum exchange has a fixed borrowing cost and provides greater yield farm returns. Furthermore, by pledging merely 10% collateral, one may significantly increase their returns. As a consequence, users may trade interest rates with about 10x leverage with ease. Stake liquidity is another option to profit using Strips Finance. Users get not just trading fees and prizes, but also a part in insurance.
The platform’s native token, STRP, provides an additional layer to power all network activities, so liquidity isn’t an issue. Fixed-term and bond products, as well as interest rate choices, are expected in the next year.
#5 Finance on the Planet [AQUA]
- $143 million in market capitalization
- Price: 1663 dollars
- PancakeSwap is a service that allows you to swap pancakes.
Planet Finance is a protocol that is exceptional in terms of generating high rewards with little risk by using many applications. AQUA, Planet Finance’s native token, is at the heart of the platform, allowing for lending, borrowing, trading, and auto compounding. GAMMA is another protocol utility token. It allows users to profit from staking GAMMA by increasing returns and lowering costs.
The Blue and Red planets, respectively, are focused on increasing stablecoin and other cryptocurrency returns. They also offer a tool that automatically converts the dividend into a cryptocurrency. Furthermore, users will be rewarded with tokens.
The green planet is a place where you may lend and borrow money. Its distinguishing feature is its capacity to provide discount levels through the GAMMA token. Users may diversify risk while increasing income by farming between planets using the permissionless lending protocol.
Real-time interest deposits are another intriguing feature that distinguishes this form of lending mechanism. Lenders don’t have to wait for payments with Planet Finance. The user experience will be enhanced by the rolling interest being represented in real-time. Planet Finance should anticipate big things in the next mega trend of DeFi 2.0, with so many offers that answer significant issues in the existing Defi environment.
Final Thoughts
DeFi is currently in a condition that we do not want to be in going ahead. Projects’ lack of liquidity and scalability will prevent widespread adoption. We need cutting-edge solutions that address these issues while also providing an advanced version with no access hurdles. As a result, DeFi 2.0 will be the next big thing in terms of bringing such initiatives to the people.
Disclaimer:
The author’s study led to the selection of altcoins in this article. None of these altcoins are held by the author. Before investing in any cryptocurrency, make sure you do your homework.
Karthikeya Gutta, a crypto writer and freelance contributor for ItsBlockchain, was born and raised in India. With in-depth analysis and research, he covers many facets of the sector. His enthusiasm for blockchain and the crypto ecosystem stems from his belief that it has the potential to transform the world and benefit millions of people.
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With the release of DeFi 2.0, there are many projects that you should consider investing in. Here are top 5 projects on uniswap that you should consider. Reference: best projects on uniswap.
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