The Decentralized Finance (DeFi) market has been growing in recent months and there has been an incredible number of investments in these companies. The entire crypto market has also been in a bullish mode for the last months and we could certainly see DeFi projects attracting new investors and attention.
In this guide, we will be sharing the top 4 DeFi Projects you should closely follow if you want to be updated with the latest trends in the market. The entire space is expanding and users are currently searching for the next winning projects in the space.
These are the top 4 DeFi Projects you can find in the market.
Aave is the first of our top 4 DeFi projects we will share with you in this guide. Aave (LEND) is a project that has been growing in the last years and it is considered to be an open source and non-custodial protocol that enables the creation of money markets.
Users can start earning interest on their deposits and borrow assets. The protocol market size is currently $1.71 billion and some of the assets supported include stablecoins such as DAI, USD Coin (USDC), TrueUSD (TUSD) and Tether (USDT) among other coins such as Ethereum (ETH) or Basic Attention Token (BAT).
The main goal behind this DeFi Project is to focus on creating a transparent and open infrastructure for decentralized finance around the world. Nowadays, Aave is the largest DeFi project in the world and it has $1.52 billion locked in USD value, according to data provided by DeFi pulse.
The company is working on the Ethereum blockchain and it aims at providing stability to the DAI stablecoin in the market. This works by using a dynamic system which is called Collateralized Debt Positions (CDP) in combination with other solutions such as autonomous feedback mechanism and incentivized networks.
The MKR token will fluctuate according to how DAI performs in the market in order to help it reach its $1 value. The goal is to keep it as close as $1 as possible. This is why MKR tokens will be created or destroyed accordingly.
Since it was launched, MKR registered a return on investment of 2,700% and it is currently being traded at around $619. It also has a market cap of $622 million. Currently, there are more than $1.43 billion locked in this DeFi project.
Curve Finance has been evolving as a decentralized exchange liquidity pool that was developed on top of Ethereum and created so as to offer one of the best stablecoin trading markets in the world. The project was launched back in January 2020 and it became the third-largest DeFi project in the world in just a few months.
At the moment, the firm was able to create 7 different Curve pools that include some of the largest stablecoins in the world. These stablecoins include Compound, Paxos Standard (PAX), Y, Binance USD (BUSD) ren and sBTC. Users can simply swap stablecoins or provide liquidity to these Curve pools and users will earn fees using the Curve.fi platform.
In recent months, the Curve Finance protocol was able to gather $1.28 billion which are now locked. In this way, the firm became the third largest DeFi project in the world.
The last one of our Top 4 DeFi Projects list includes Yearn Finance. This company was able to gather almost $900 million in funds locked in just a few weeks. This shows the large interest there is for DeFi projects around the world.
The company is providing aggregation services that would allow users to get information about Aave, Compound, Dydx and other projects in the DeFi market. Thus, Yearn Finance is working so as to make it easier for users to find the DeFi projects they are looking for.
Users will be able to deposit funds on the platform and receive yTokens. This would create an Automated Market Maker with other digital currencies such as yDAI, yUSDC and yUSDT. Users will earn lending fees and also the trading fees on the Curve.fi platform.
The YFI token is also one of the most attractive in recent times considering that it had a value of over $15,000. Nowadays, this is one of the most promising projects in the DeFi market.
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