In a financial world that is becoming increasingly digital, DeFi focuses on bringing the convenience of peer-to-peer transactions to investors. 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. Lets take a look at some of the best DeFi projects to look out for in 2022.
Curve is a decentralized stablecoin exchange whose liquidity is managed by an automated market maker.
Curve Finance’s governance token is CRV. This protocol implemented a complex time-based staking system to exchange CRV into veCRV, where veCRV is a token for governance purposes and has the right to claim the cash flows generated by the protocol.
With Maker, users can lock-in collateral as collateral for loans in exchange for Dai. The Maker Foundation founded it in 2015 as an open-source project to offer economic freedom and opportunity to anyone, anywhere. Towards the end of 2017, Maker launched its first stablecoin, the Single Collateral Dai (SAI), which used Ether (ETH) as collateral.
United DAO, a decentralized reserve currency protocol that boasts the great potential to become a native stable currency. The primary aim of United DAO is to function as a currency that is able to hold its purchasing power regardless of market volatility.
United DAO is a must-watch for DeFi enthusiasts. Understanding that the true strength of the UTD tokens lies in the strong backing of the treasury, United DAO have taken in steps to boost its treasury by striking a fine balance between liquidity, risk management and growth. By optimizing the growth of its treasury across various treasury backed assets, United ensures the continued strength of its treasury, which in turns backs the UTD token.
Abracadabra Money utilizes interest-bearing tokens (ibTKNs) like yvWETH, yvUSDC, yvYFI, yvUSDT, etc. as collateral to borrow MIM (Magic Internet Money) that is USD-pegged. MIM works like any other stablecoin.
Tokens bearing interest have been introduced by Abracadabra Money. Previously, they sat idle. Abracadabra Money lets users leverage their funds at minimal risk to reach the next threshold, opening up a variety of additional models and possibilities.
DeFi platforms are having a moment and getting some much-deserved recognition from both consumers and investors. DeFi funds are raising millions of dollars each day to push initiatives, improve and build platforms, and grow the already thriving network. These advancements are paving the way toward financial equality by increasing accessibility to important and otherwise unattainable financial tools. DeFi eliminates the gap, making the roadblocks that gatekept economic advancement for the very wealthy few a thing of the past. The future of DeFi is already here, and it’s for everyone.