Best DeFi Projects 2022

Two types of cryptocurrency assets can be promising in 2022:

  1. Tokens of blockchain projects aimed at cross-chain integration on bridges between different standards. As the blockchain industry develops, unification and the ability to quickly move between two blockchains will be in demand. For example, the projects Chainlink, Polkadot, Solana are growing in this area.

  2. Tokens of blockchain platforms focused on the creation of decentralized applications (not only financial ones). DeFi and other dApps are still in their infancy. Over time, this will be a vast niche that can potentially cover many areas of life. Decentralization has a positive economic impact across a wide range of industries. In complex structures with many participants, this is achieved by reducing the cost of coordination. For example, we can single out projects based on the Ethereum, EOS, and TRON blockchains.

Decentralized Finance (DeFi) is a decentralized, open-source, and trustless ecosystem of financial applications and services based on public blockchains, primarily Ethereum.

The DeFi ecosystem encompasses all aspects of financial services and transactions, including lending, lending, and trading within decentralized structures. Any internet user can interact with the ecosystem and manage assets through peer-to-peer (P2P) and decentralized applications (dApps).

Prospects for Working with DeFi

Today, DeFi is not just a trend but a whole area within which effective technical solutions are created to improve the current financial model. The developments offered by the decentralized finance market make it possible to optimize many processes and solve traditional banking problems.

It turns out that crypto-anarchists have grown into businessmen who today can participate on an equal footing in the "game of financial thrones" with representatives of the current financial system. The weight of DeFi proves the growing interest in the direction of institutional investors. The scale of the decentralized finance market can be judged by the number of funds blocked for the needs of the protocols. The indicator is close to the level of $ 270 billion. Such volumes indicate a high level of significance of DeFi.

Significance of DeFi Platforms

DeFi is the key to automating many processes in the financial market. The result is based on the use of smart contracts. In them, developers put code with a specific sequence of actions that the system must perform. This approach can be applied, for example, in trade or lending. In this case, the parties can refuse intermediaries.

The ability to trade without a third party and pressure from any regulatory authorities has become one of the reasons for the growth in popularity of DeFi. This approach has brought market participants closer to true decentralization.

It is important to note that significant funds, trading firms, and even centralized profitability platforms show interest in the decentralized finance market. Representatives of such projects are often involved in providing liquidity to DeFi protocols. The growing interest from prominent players in decentralized finance is accompanied by positive dynamics of investments in the market.

Among the institutions that dominate the capital pools of several DeFi projects, the following can be distinguished:

  • Alameda;

  • Three Arrows;

  • 0XB1;

  • Celsiu.

Such attention of prominent players to the market allows its participants to attract large amounts of financing. For example, the Big Data Protocol platform recently raised $ 7 billion within 24 hours of launch. Probably, the project attracted investors with its transparency because the protocol code is open and available for study.

A technical base provides the security of many startups. Often, DeFi project teams copy the codes of already well-known protocols, such as Sushi's MasterChef or Synthetix Rewards, and add small changes to them for originality.

Unfortunately, such initiatives have turned the market for decentralized finance into a conveyor belt - it has been flooded with similar startups. At the same time, among the total mass of DeFi-protocols, there are pearls with which you can make good money.

DeFi Projects That Will Be Interesting to Follow in 2022

We bring to your attention already completed projects, and new DeFi projects 2022 that deserve attention:

  1. Chainlink (LINK). The idea behind the project is to provide value to other initiatives for a fee. With it, platforms like Aave can find out the value of a coin taken or deposited. Even though Uniswap overtook Chainlink, for me, the triumph of this DeFi startup was still the main event of 2021. The efficiency of the project reflects its high level of capitalization.

  2. Uniswap (UNI). The project is the epitome of DeFi. With its help, anyone can start trading tokens and make money on operations with digital assets. An essential advantage of Uniswap is simplicity in everything: from ideas to their implementation. The demand for project ideas can also be judged by the high capitalization rates of its native token.

  3. Aave (AAVE). With the help of the project, users can earn about 6.1% from the placement of tokens. At the same time, cashback indicators for using debt funds on the platform can reach up to 12%. Aave needs to lower the entry threshold. At the same time, the project's high profitability rates still make it one of the most attractive on the market. At the moment, Aave can be considered by those who can afford to allocate several thousand dollars for investments.

  4. Compound (COMP). The startup's developers have created apps for saving and borrowing. Compound is similar in many ways to Aave, but the platform has its peculiarities. For example, a project pays out a portion of the profits in its high-value management tokens. Compound's business model, which lends itself through its management assets, allows investors to earn significantly more on their investments than traditional financial institutions such as Goldman Sachs and JPMorgan can offer.

  5. MakerDAO (DAO). As part of the project, the DAI stablecoin was launched. Such assets, I believe, have become the key to a new understanding of the possibilities of interaction between the world of traditional money and cryptocurrencies. Stablecoins can be compared to a bridge to fiat by linking them to the rate of regular money. DAI investors can claim dividends of 3% per annum. Despite the small profitability indicators, the very mechanism of the project, thanks to which users can receive stable payments, deserves attention.

  6. Curve (CRV). The project is an exchange and a liquidity pool. Its advantages include the ability to exchange stablecoins with a low commission, a large selection of trading pairs, and the simplicity inherent in Uniswap. At the same time, Curve is much cheaper and faster than its more famous competitor. Such advantages allow the project to get ahead.

  7. Synthetix (SNX). Using the platform, you can earn on material raw materials, traditional money, and ERC-20 format tokens. The project can become the second MakerDAO. His excellent reputation can help him in this.

  8. JUST (JST). It is a project of Justin Sun, the founder of the popular crypto startup Tron. The initiative is based on the development of a platform for high-yield lending. JUST has already managed to prove itself from the best side. I think marketing genius Justin Sun will continue to promote his project.

  9. WBTC (Wrapped Bitcoin). I like his concept - transferring bitcoin to the Ethereum blockchain. With the help of WBTC, the most capitalized cryptocurrency was used in the DeFi market. The project is a Decentralized Autonomous Organization (DAO). All members of its ecosystem platforms have a voice.

  10. RenVM (REN). The project developers plan to attract traditional cryptocurrencies to the decentralized finance market. The RenVM team is currently working with Bitcoin, Bitcoin Cash, and Zcash. Technical solutions of an ambitious project allow transferring liquidity between blockchains.

In 2021, we can already talk about the high level of maturity of the decentralized finance market. If last year DeFi looked like an awkward teenager, today it seems more like a confident business person. At the same time, new stages of growth await the decentralized finance market ahead. The presence of development prospects suggests that investors still have a lot of opportunities to invest in DeFi profitably.