Top 10 Decentralized Finance Projects In 2022
Decentralized Finance is garnering all the attention and has easily become a trillion-dollar industry. De-Fi is easily worth as much as Apple, Google, Amazon, and Microsoft. And we know that this is just the start.
De-Fi can easily transform the banking and finance space with its perks. And the beauty of these projects is not just limited to financial products but can go above and beyond.
Before we peek into the top Decentralized finance projects, we need to understand what a Defi project is briefly:
A software protocol that runs decentralized financial projects in blockchain networks is briefly called the Defi project. This is an emerging financial technology based on blockchain. This technology will eventually remove some systems like banks, financial institutes, and others.
There are the greatest 10 Decentralized finance projects:
Uni swap is an exchange for cryptocurrency built on the Ethereum blockchain via smart contracts. The best part about this platform is that it doesn’t charge fees for using it or involve middlemen. Beyond that, the exchange also has its own token, which is basically a governance token, by the same name. These tokens are given the investors the voting power for the specified blockchain projects.
UniSwap Is an open-source protocol that provides liquidity and trading ERC20 tokens mostly on Ethereum. These protocols are made on non- upgradeable and censorship resistance. UniSwap Labs develop this interface and protocols.
If anyone wants to create a new pool of liquidity, provide Liquidity, token SWAP, or maybe vote on governance proposals, he can use the UniSwap interface to Web3 wallet.
On the other hand, Pancake swap is another decentralized exchange built on the Binance Smart chain. Pancake Swap is an automated market maker, a form of a Decentralized Exchange (AMM). The participants trading on the platform automatically draws liquidity from one or more liquidity pools, which rebalance after each trade.
You can make the trade almost instantly in the Pancake Swap. In this case no need for an account in the Pancake Swap. Pancake is the most accepted and leading Decentralized exchange on BNB smart chain. Pancake gets the utmost trading volume in the market.
Pancake Swap also has one more big facility whose exchange rate is very low. One of the lowest among the decentralized exchanges. This is almost a double win for a user or customer.
Decentralized finance projects have made some moves in the insurance sector as well.
CDx enables cryptocurrency investors to secure their assets from credit risk and insure against exchange attacks. Tokenized debt, staking pools, and stablecoins can all be used to mitigate credit risk using CDx. CDx wants to make crypto safer for everyone to speed up mainstream adoption.
Defi users can be protected against smart contract risk thanks to the COVER Protocol. It helps calm the tumultuous Defi environment by fostering confidence and trust in protocols and their users. COVER Protocol will open the doors of Defi to all investors by bridging the gap between decentralized Finance and traditional Finance.
COVER Protocol’s long-term goal is to let anyone buy coverage on anything.
Borrowing and Lending
Borrowing and lending are two of the most common use cases for decentralized finance systems. It’s essentially like banking but decentralized.
The Ethereum network serves as the foundation for Aave. ERC20 tokens, like all other tokens on the network, use the Ethereum blockchain to perform transactions. Aave is a decentralized finance (Defi) technology that allows people to lend and borrow cryptocurrencies without going via a middleman.
Cred (US) LLC is a regulated lender that offers a return on cryptocurrencies offered as security to some borrowers. Cred (US) LLC also rents cryptocurrency from users and pays interest-based rental fees. The yield element is commonly referred to as “CredEarn.”
Yes, stablecoins are currencies that fall under Defi finance projects. The main objective is to peg it to a stable currency or commodity, to maintain a non-volatile price point.
It’s the world’s leading stablecoin, fully regulated and pegged to the US Dollar. This implies that when USD is $1, the coin is worth $1.
Gemini is a corporation based in the United States that is regulated by the New York Department of Financial Services. Gemini USD is a stablecoin backed by the US dollar that is always convertible to $1 at Gemini. Similar to USD.
Defi wallets allow you to safely store your assets even when you are not connected to the internet. You’ll also need online wallets that allow you to effortlessly engage with Defi protocols while allowing you to exchange crypto-assets flexibly.
Trust wallet is a one-stop shop for all of your cryptocurrency and blockchain needs. This wallet can hold all your crypto tokens, including Net-fungible tokens, facilitate cryptocurrency transactions and provide a DApp marketplace.
Ethereum wallets are programmers that allow you to manage your Ethereum account. Consider it a bank-free version of an internet banking app. You can check your balance, make transactions, and connect to apps using your wallet. To send money and manage your ETH, you will need a wallet.
In simple words, this is an application that will help you to interact with the Ethereum account. You may think it is an internet banking application like HSBC or SCB – but this app is without the bank. This app will help you connect your wallet, read, and instantly know your balance, send, or make a transaction within seconds. This will show you your transaction history, corporate offers, and more.
This wallet is your only tool to communicate with the Ethereum account. This actual meaning is you can swap wallet providers at any time. Many wallets will let you have and manage many Ethereum accounts. It is the reason why your funds don’t have custody. This is just a tool to manage what is yours.