Due to the current DeFi hype, today there are numerous different DeFi apps. DeFi has already made numerous users a profit, in particular, due to its numerous advantages over traditional financial products. This time we’ll consider the most popular DeFi apps and present their most important functions. Let’s get started!
Curve is the first DeFi app on our list. The project serves to create an Exchange Liquitidy Pool on an Ethereum basis and thereby enable extremely efficient trading with stablecoins.
In 2018, the founder of Curve, Michael Egorov, was enthusiastic about DeFi and had the idea of starting his own project in the field of cryptocurrencies. Then he developed an algorithm on which Curve is ultimately based today.
Accordingly, Curve is a trading platform for stablecoins. However, the focus of the project is clearly on the market-making algorithm, which can provide significantly more market depth compared to Uniswap. In addition, trading fees are much lower than that of other DeFi apps, as Curve works only with stablecoins.
The users benefit from this by being able to achieve significantly higher yields on average. In addition, there is also greater liquidity, as many users are willing to make capital available for the reasons just mentioned. Curve is based on the CRV token, which is used for value growth as well as for management. Overall, DeFi developers see enormous growth potential in the banking sector.
Although Curve Finance wasn’t launched until January 2020, users have already invested more than $912 million. In addition, 2.4 million ETHs and more than 78,000 bitcoins were also invested.
Yearn.finance is another decentralized network that provides various lending services such as Aave, Compound, Dydx, and Fulcrum. When paying in at Yearn.Finance, the tokens used are automatically converted into yTokens. They are, in turn, then automatically distributed to the currently most profitable lending offers at regular intervals. The Curve mentioned at the beginning is a well-known platform that makes use of these tokens.
Currently, the total volume of tokens invested — Ethereum and Bitcoin — as well as funds at Yearn.Finance is around half that of Curve. Accordingly, the project is in second place in our top 5 DeFi apps.
Synthetix also rightly appears in our overview of the top 5 DeFi apps. At Synthetix, users can trade cryptocurrencies, stocks, currencies and precious metals. Integrating assets that exist in the real world is one of Synthetix’s unique selling points .
Like the already mentioned Yearn.Finance and Curve, Synthetix is based on the Ethereum blockchain and originally served as a stablecoin. At Synthetix, trading of shares or precious metals takes place via ERC20 tokens. Synthetic assets or ‘synths’ copy the price of an asset in the ‘real world’ and use it on the Ethereum blockchain, giving the synth all the properties of an ERC20 token.
One of the great advantages of this is the permanent availability of trades. While the ‘real’ exchanges have specific trading hours, here you can trade virtually around the clock without leaving your own home.
Kain Warwick is the current CEO and Founder of the project. Synthetix uses two different tokens — a Synthetix Network Token (SNX) and the synthetic assets mentioned at the beginning. You can trade the SNX tokens on decentralized exchanges such as Uniswap and also use them to create new synthetic assets.
Crypto.com is quite a well-known project. The provider advertises, for example, on Instagram and is enjoying ever-increasing popularity. Crypto.com offers its users an amazingly large variety of offers. Including, for example, a stock exchange, a credit card and of course DeFi.
With the Crypto.com Defi Wallet you can send cryptocurrencies to any user around the world with your preferred confirmation speed and a network fee. The DeFi Wallet is now also available in the App Store and the Google Play Store.
The provider states that it’s the best place to swap and farm DeFi tokens. The platform offers users the opportunity to have full access to their Crypto.com DeFi wallet. Well, the good thing is that you don’t even need a Crypto.com wallet to receive and send cryptocurrencies with the DeFi wallet.
Polymath is last but not the least in our top 5 DeFi apps list. The provider simplifies a legal process of creation and sale of security tokens. Since only certain users who are on a ‘list of authorized investors’ can hold ST20 tokens, the deposits are largely secure. Polymath also offers functions for tokenization of assets as well as for creation of new security tokens.
Moreover, Polymath smart contracts can confirm who is currently buying or selling the tokens. Only users who have gone through the provider’s KYC procedure are allowed to own the tokens.
With the help of smart contracts enabled by Ethereum, Polymath allows its users to enjoy various innovative services. Ultimately, the long-term aim of the project is to replace the existing financial system and give users full control over their assets.
What other worthwhile DeFi apps can you recommend? Feel free to share your ideas in the comments. Have a great weekend!