- Toshendra Kumar Sharma
- November 21, 2020
Wondering which are the top DeFi gains of this week? Interested in learning and exploring a bit about them? Let’s dive into it.
Table of Contents
- Why is DeFi Making a lot of Noise?
- Introduction to Top Three DeFi Gains
- Concluding Lines
Why is DeFi Making a lot of Noise?
DeFi, also known as Decentralized Finance, is an ecosystem of financial apps built on top of the Ethereum blockchain that operates independently of any central authority. While cryptocurrencies such as Bitcoin, Ethereum, and others aim to make global payments accessible to everyone anytime, the Defi protocol aims to combine both crypto and finance. From the past one year, the number of services in the DeFi domain has skyrocketed. As investors have started realizing that centralized crypto exchanges operate like traditional banks, decentralized exchanges have started gaining a reputation. DeFi Pulse (a data site that lets individuals find the latest analytics and rankings of all DeFi protocols) reported that in less than a month in 2020, users have locked an additional $125 million of cryptocurrency in DeFi apps. This popularity is because they cut out human intermediaries and replace them with smart contracts.
Introduction to Top Three DeFi Gains
In this section, we will see the development experienced by the DeFi market and which are the top three DeFi protocols.
SushiSwap is the latest DeFi liquidity pool platform where people can add their tokens into the liquidity pools, and in return, individuals get rewarded with tokens and SUSHI tokens. It was seen that the total value locked on the protocol was cracked through the $700 million just three days after its release. An unknown developer copied Uniswap to create SushiSwap, which was intended to be almost the same, except for the inclusion of a coin, known as SUSHI( a procedure’s native coin), and token incentives for liquidity suppliers and token holders.
SUSHI’s rate dropped from it’s all-time high of $11.93 to listed below $1. But now, they are restoring its momentum. According to Coingecko, the coin has grown by 93.3% in the previous week. Moreover, it was reported that the token is likewise up 28.9% on 14 November 2020, and at the time of writing, it has a Market Cap of $162,241,681, and its 24 Hour Trading Volume is $143,160,490.
Just like other DeFi protocols, it is another decentralized exchange protocol built on Ethereum Blockchain that allows users to trade without involving any middleman, with a high degree of decentralization and censorship-resistance.
Initially, it was created by Hayden Adams in the year 2018. But the underlying technology that encouraged its implementation was first described by Vitalik Buterin.
Uniswap is among the first leaders of the Automated Money Markets (AMMs) that has also witnessed a significant rate pump in the previous week with a 67.3% development of UNI. At the time of writing, the market capitalization of Uniswap is $723,017,618, and its 24-hour trading volume is $300,052,340.
Since its origin, the protocol has served as a reliable and highly decentralized financial support. It was noted that the protocol had supported over $20 billion volume traded by over 250,000 unique addresses across 8,484 assets.
Aave is another popular protocol that is driving the DeFi agenda to the next level. It is an open-source, decentralized protocol that enables users to lend and borrow crypto-assets of their own choice in a trusty manner while offering stable and variable interest rates. To be more specific, it is an open-source and non-custodial decentralized protocol enabling the creation of money markets. Just like Compound protocol, Aave provides a similar money lending market, but instead of just concentrating on the total amount of assets locked, Aave re-uses locked assets within the Ethereum Blockchain ecosystem.
At the time of writing, Aave’s market size is $1,652,550,916.73, and presently, it trades at a rate of $4.15. Besides its 67.3% development, the coin has pressed other coins to rank as the 26th crypto asset by market cap, according to CoinMarketCap.
From the above discussion, it is clear that these DeFi protocols hold a promising future in the DeFi space. What’s your take? Will DeFi change the way we exchange money? Which is your favourite protocol? In which one are you interested? Let us know in the comment section below.