By acting as a foundation for DeFi projects to build upon, it’s aiding the growth and potential of the network as a whole. This makes Polkadot, and projects who choose to build on Polkadot, much faster and scalable than Ethereum’s current offering. Polkadot (DOT) facilitates an internet where independent blockchains can exchange information and transactions in a trustless way via the Polkadot relay chain. This will help DeFi to properly scale and avoid the bottlenecks holding back the earlier generations of blockchain projects. Chainlink recently announced the launch of a Programmable Token Bridge that will allow for new communication between DeFi blockchains. Cardano announced last month that it’s getting an ecosystem boost from its recent $100 million investment in decentralized finance, NFTs, and blockchain education.Ĭhainlink (LINK) is a decentralized oracle service that aims to connect smart contracts with data from the real world using oracle technology. Avalanche recently completed $230 million in funding to support its DeFi initiatives, making it a compelling place for DeFi projects to set up shop.Ĭardano (ADA), one of the world’s largest blockchain projects, is sometimes called the “ Green Blockchain” because of its impressive energy use reports and proof of stake protocol. The project positions itself as a direct rival to Ethereum due to its ability to provide cheaper transactions in a fraction of the time.
You can also earn rewards and discounts by staking the AAVE coin on the Aave DeFi platform.Īvalanche (AVAX) markets themselves as “the fastest smart contracts platform in the blockchain industry,” while also solidifying their place in the booming NFT space and building connectivity with other blockchain projects such as SushiSwap (SUSHI), Chainlink (LINK), and the Graph (GRT). It brings together lenders and borrowers in a decentralized space to allow for an equal opportunity lending system. Aave is a decentralized liquidity platform that allows for borrowing assets and earning rewards on deposits.
The world of DeFi is getting bigger every day, but there are a few projects we have our eyes on for 2022.Īave (AAVE), initiated in 2017 under the name ETHLend, is one of the original DeFi platforms on the market. DeFi is closing the gap between the individual and the financial oligarchy. Many of the financial opportunities offered through DeFi platforms are usually reserved for major financial institutions like hedge funds and banks. With no reliance on different parties or deal with wait times to complete a transaction, DeFi makes doing business a more seamless and fast experience from start to finish. Smart contracts are processed digitally on blockchain technology, so no paperwork and no wait time through the bank for transactions to clear.Īutomating the contract process on the blockchain takes away the need for human intermediaries, eliminating the need to engage outside mediators, like lawyers, to process agreements between parties. The goals of the DeFi network are simple: By harnessing the efficiency and power of smart contracts - digital contracts that live on the blockchain - DeFi platforms create a space for lending, borrowing, trading, saving and earning interest that doesn't require all of the usual bureaucracy and minutiae. In a financial world that is becoming increasingly digital, DeFi focuses on bringing the convenience of peer-to-peer transactions to investors.
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