Over time, growth, opportunities, and most importantly, change occur. This was seen when DVDs were exchanged for streaming apps, books were shelved for tablets, and cryptocurrencies replaced traditional payment methods.
Cryptocurrencies are now dominating the financial world, and blockchain domains are growing at an alarming rate. As a result, crypto enthusiasts face many opportunities. But for now, they’re all focused on one thing-decentralized finance or DeFi.
DeFi projects have emerged as people seek ways to explore financial opportunities. In this way, decentralization enters a new, reliable, and transparent financial services domain. Compared to the central banks we are currently familiar with, the financial world will be upside down when blockchain technology is expected to be decentralized.
Whether you’re a crypto enthusiast or a beginner in blockchain technology, you may want to know about DeFi projects and its implications for the future. This article lists five major DeFi projects that form a global and traditional financial view.
Top 5 DeFi Projects Taking the Lead
EGG.FI is a Web3 dashboard. A financial platform where you can track your wallets, trade, and generate yield on 14 chains and 157 protocols.
EGG Protocol is the native token of the EGG.FI ecosystem which allows users to own voting rights by holding the EGG token on their wallets.
It allows users to explore popular wallet addresses and copy their trades with the cheapest and most secure routes in the crypto sphere. Users can also explore NFTs and wallet history, all in one place.
EGG.FI is the DeFi place you need, where you can handle every DeFi action from a single place without switching to different platforms in order to stake, provide liquidity, trade, explore, etc. Some of the EGG.FI’s most popular services are:
Wallet Explorer: Where users can explore any wallet address and the assets in balance, DeFi staking, liquidity mining, lending, NFTs, and much more.
History: Users can explore any wallet address history without moving to websites like Etherscan, Polygonscan, FTMScan, BSCScan, etc. EGG.FI supports more than 15 DeFi projects and it plans to add many more in the near future.
Staking: EGG.FI is offering fully decentralized staking where users can stake EGG, ETH 2.0, KSM, MATIC, and many more with as little as 50$.
Liquidity Mining: Explore all sorts of decentralized Liquidity Mining pairs with EGG.FI, you can add as little as 50$ into any pool and withdraw immediately whenever you want.
Trade: EGG.FI is offering the cheapest Fiat to Crypto and Crypto to Crypto trading by constantly checking for the cheapest and most secured routes out there.
Bridge: Users can bridge their EGG tokens from multiple blockchains such as EGG from BSC to MATIC and the opposite. This can help users easily allocate tokens on different blockchains without a hassle.
Play: EGG.FI offers gamified steps where users can complete profile steps and receive free EGG tokens that can trade, stake, or hodl.
2. Olympus DAO
Olympus is an algorithmic currency protocol with the goal of becoming a stable cryptonative currency. Though sometimes called an algorithmic stablecoin, Olympus is more akin to a central bank since it uses reserve assets like DAI to manage its price.
The goal is to achieve price stability while maintaining a floating market-driven price. The biggest difference between OHM and stablecoins like USDC is that OHM is backed but not pegged to a certain price.
Olympus DAO has two main features, staking & bonding.
Staking at Olympus is a profit-sharing mechanism. It is designed to be the dominant strategy for participants. For staking, holding, and assembling.
The main goal of Olympus is to reward those who purchase OHM (Olympus Tokens) and increase their financial value.
The protocol provides equal benefits to all participants. By staking your sOHM (Stake OHM) tokens, Olympus DAO is offering everyone the same percentage staking rewards that are compounded. This method uses game theory to ensure that stakers continue to earn high returns as the protocol is growing.
Bonding is Olympus’ secondary value creation strategy. This allows Olympus to obtain its own liquidity and other reserves such as LUSD by selling OHM at a discounted price in exchange for these assets.
The protocol provides bond conditions such as bond price, amount of OHM tokens to which the bond is entitled, and lockup period. Bonders can charge a portion of the reward (OHM token) when it is transferred and the full amount at the end of the lockup period.
Bonding is an active and short-term strategy. Secondary bond market pricing mechanisms make bond discounts more or less unpredictable. Therefore, bonding is considered a more aggressive investment strategy and requires continuous oversight to be profitable compared to staking.
Abracadabra is a lending DeFi project that uses interest-bearing tokens (ibTKN) with US dollar peg stablecoin (Magic Internet Money MIM) as collateral, which can be used like any other traditional stablecoin.
- Borrow: Abracadabra uses Kashi Lending Technology to provide an isolated lending market where you can adjust your risk tolerance according to the collateral you choose.
- Stake: Abracadabra allows its users to take a part in the fee-sharing mechanism. Users can stake SPELL in order to earn SPELL tokens.
- Farms: Abracadabra provides various farming methods that allow users to farm SPELL tokens using LP tokens. This mechanism is used to maintain deep liquidity in a particular pair. Farming is currently available on Ethereum for ETHSPELL and MIM3CRV-LP tokens.
- Swap: Thanks to Curve Finance, users can swap their MIM coins for other stablecoins such as USDT, USDC, or DAI.
- Bridge: Thanks to Multichain project, Abracadabra’s users can bridge their MIM tokens directly on the Abracadabra interface.
4. Convex Finance
Convex Finance is a platform that increases rewards for both CRV stakers and liquidity providers. Everything with a simple and user-friendly interface.
By using Convex Finance, both stakers and liquidity mining providers receive additional yields.
Basically, everyone who uses Convex is pooling their assets together so that the platform can get more CRV and convert it to veCRV to maximize the boost for all Curve LP token holders.
Convex offers four very impressive ways for a passive income. If you provide liquidity to any of the curve liquidity pools that Convex supports, you will receive the next revenue stream:
- Basic interest rate
- A slice of transaction fees from the Curve platform
- Convex boosted CRV reward
- CVX token via Convex
Even if you do not provide a big amount of assets to the liquidity on Curve, putting your small asset balance into a long-term liquidity mining can be handsomely rewarded in the future.
5. Anchor Protocol
Anchor Protocol is a Borrow Protocol that offers up to 19.5% return on Stablecoin deposits. Lenders can deposit UST and earn attractive interest rates on their investments while benefiting from low volatility. The borrower can turn LUNA collateral into a productive asset without relinquishing control of LUNA collateral.
Anchor sets itself apart from the other money market protocols such as Aave and Compound with its sophisticated user interface and easy-to-use features. The core value proposition of the protocol is to connect borrowers and lenders by providing the former with a way to borrow with stablecoin without losing investment and the latter with attractive interest rates on stable assets.
Lenders connect the Terra Station wallet and deposit UST (every 8 seconds) by paying a transaction fee of 1.60 UST and earning an annual interest rate of 19.5% of the protocol prorated for each block trade.
Borrowers bind the LUNA token and instead receive bLUNA (the combined LUNA). They can borrow up to 60% of the collateral placed on the UST and pay a slightly higher interest rate than is paid to the lender. The combined LUNA can be released after 21 days. However, you will also receive ANC tokens distributed by the protocol to encourage its adoption.
This protocol uses income from spreads between the borrower and lender interest rates to earn staking rewards in the range of 5% to 7% each year on Terra. Anchor yield reserves are protocol finance and cover costs if interest rates do not reach a stable equilibrium. For example, during the summer of 2021 crypto market modification, Terraform Labs injected 70 million UST into anchor yield reserves to ensure protocol stability.
If you want to find out more about DeFi 2.0 projects, we recommend you check this cool YouTube video.
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of EGG Finance. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.