DeFi i.e. Decentralized Finance is one of the reasons why blockchain market at its peak even in pandemic time. If you following crypto since 2017 or early 2018 then you must very familiar with ICO hype. In the ICO buzz many projects gained massive market volume in the period. Now, DeFi trend exactly gaining more response than expected, where all DeFi together locked $7+ billion worth volume.
It was started with Compound Finance, as after being listed on trading platform, it explodes on market after crossing $1 billion worth. However, most of DeFi is based on Ethereum network and to trade or swap, user must own ETH supported wallet e.g. Metamask or Trust Wallet. Those who already brought DeFi coin must have face problem highest gas fees and even transfer fees while transfer from one wallet to another. In recent report 40% of Ethereum volume is collected from Gas fees and fees keeps surging as number of transaction increases.
Best DeFi Project/Coin to Invest
- Chainlink: farming Chainlink will be the more beneficial nowadays, as after being top Defi Project with highest market volume. as it is one of the safest and fastest growing projects because in last 4 month it surges from $3.5 USD to highest $20 USD of 2020. However, we don’t have any idea about how this Defi thing work, as Chainlink is one the growing project in blockchain and one of the top decentralized oracle service providers in the real world. So, for being safer side Chainlink will be the best choice to invest with average return.
- Compound: as we mentioned above compound was the main reason behind creating buzz of DeFi project. It offers decent ROI with multi-asset support for staking and farming include stablecoin and DeFi project. Comp token work as governance token for ecosystem, as following appearance on decentralized trading platform, token sees 600+% growth within a one week. However, project based on autonomous protocol that simply help user to earn interest by Holding different tokens on Ethereum. The project since it debuts serving thousands of users and integrated with different blockchain project.
- Curve DAO Token: DeFi Project that launches are governance token with DAO i.e. Decentralized Autonomous Organization by unknown user. The project comes into top DeFi picture after it cross $1 billion market volume. CRV is governance token where time-weighted voting is considered for future development of project. in the main moto behind launching project is to provide exchange for stablecoins and bitcoin tokens on Ethereum. However, CRV token can be traded on centralized Finance too and decentralized finance, so those who want to farm token can simply purchase on Binance or other trading platform.
- bZx Protocol: one of the most advanced Open finance Protocol Decentralized finance project. the Protocol empower traders, lenders and borrowers on Ethereum network with maintaining flexibility in finance. bZx pushing margin trading and also introduced to main product Falcrum and Torque to focus on lending and trading and loans with fixed interest rates. BZXR is governance token that continuous works on improvement and refining of the protocol.
- Bella Protocol: Binance Exchange platform introduce Launchpool for Decentralized Finance project, where Bella Protocol is first project on their Platform. Bella Protocol aim to solve mainstream problem in existing DeFi i.e. high gas fees and poor user interference. In the solution Bella Protocol aggregate user interface and charges zero gas fees. basically, yield farming from now will be one click away where user deploy their token to earn passive income. BEL token will fuel ecosystem where BEL Holder can earn APY and avail discount and offers on Bella.Fi platform. BEL token is not distributed to BNB, BUSD and APRA asset holder where each day user can earn BEL Token.
- UMA: Platform that provide infrastructure to developer for developing Synthetic asset. Project is built on open-source and permissionless blockchain like Ethereum that help counterparties to design and create own financial smart contract. In the secondary solution, it also offers daa verification mechanism along with decentralized oracle service. UMA gained consistent market volume, where as of writing it 2nd of most valuable DeFi Project. UMA recently introduced yield farming where user can earn passive income with incentive. However, UMA was also behind ren protocol and recently launch yield dollar that enable renBTC locking on UMA.
- Yearn.Finance: DeFi made Simple with this slogan Yearn.Finance aim to simplify yield farming with automated maximum profit switching. The platform focusing on maximize or highest return for liquidity provider and yield farmer in return user can earn YFI Token. Yearn.Finance is hidden gem in Decentralized finance that has different platform as per features or asset demand. every day staker and farmer will earn governance-controlled token with user friendly and full statistical dashboard. Recently tons of project fork yearn.finance and they also secure top position in ranking with million worth volume locked.
- Bidao: after completing ICO with 30% staking rewards for early investor, Bidao Set to listed on trading Platform. Bidao is based on Multi-chain Decentralized Finance and trustless Stablecoin. BID is native Token of ecosystem that will fluctuate and use to distribute incentive or interest. project already integrate with big Blockchain project like Chainlink, Tron, Ontology, Tellor and other top crypto.
Ethereum following bullish trend no surprise in that, but user must be taking care before they invest in DeFi Project. for e.g. SushiSwap i.e. firstly introduced as fork uniswap or in reality founder just flip the uniswap to launch sushi. However, the controversy continues after uniswap denied relation with them and many other projects like Band protocol refuse any integration. Sushi at one point about to cross $10 USD mark but within one week it falls down below $2 USD, at that time Sushi Founder cash their Token back to ETH. However, founder then shift project to FTX Exchange but people still confuse about Is it scam or real project. so, here we listed some of point that must every trader should follow:
- Choose safest platform to farm or stake, as some platform promises to provide maximum APY or some offers. But we suggest you must check security, working of governance means voting real matter or not and project investor and other founding member history.
- Check ICO platform where upcoming ICO reported as we recommend icodrops, where you got final date of ICO and details about project team and investor. Check If project backed by big investors and integrated with existing blockchain project. e.g. Bella Protocol launched by Binance.
- Check Project Information: Launching Blockchain project is nowadays simple and anyone with simple knowledge and existing tool. Check basic info like founder linkedin profile, project social media official handler and other.
- Invest Small Amount: don’t rush to invest get proper knowledge and start with small amount with proper study of Price pattern.
- Watch multiple Project: if you rely on single project then risk on losing your investment may increase.
- Stablecoins: farming with stablecoin i.e. pegged to $1 USD worth can minimize risk even in market crash.
- User metamask to HODL your investment.
DeFi is controlled by community itself, so user of token holder is responsible for development and decision making. DeFi bring security and transparency that can minimize risk of hacking and security. Centralized Finance is controlled by central entity and it charges high transaction fees with slow transaction throughput or lower transaction per second. Ethereum changed landscape with Decentralized Exchange, Finance and Application. Now DeFi said to permanent change in Blockchain industry but daily new project launched focusing on new feature and maximize APY.