5 DeFi Projects You Should Know About in 2021 – hackernoon.com


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The growth of Defi is remarkable, with the industry making great strides in the past few years. It’s quite right to conclude that this industry is probably the next big thing in the financial world, primarily owing to the many use cases of the upcoming projects. 

Decentralization of finance was the main idea in Defi’s creation, and many of the platforms have lived up to that promise. However, with the strong surge in Defi, it’s quite challenging for any investor to make conclusions about which project is worth their money. 

You probably are that investor and wonder what Defi projects show unique features and maybe a potential to grow? Here are some of the most unique Defi projects you should check out for in 2021. 

Kava

Kava is a Defi lending platform offering its users USDX stablecoins loans, thus introducing the crypto market’s utmost flexibility. Like chainlink, Kava is known for its cross-chain capabilities and its vast array of stablecoin loans. There is a considerable probability that Kava will add bitcoin to its supported coins in the future. 

As of the time of writing, coinmarketcap reports that Kava was among the best performing Defi platforms, with a $70 million market cap. 

To ensure all the loans are well collateralized, Kava leverages a protocol dubbed ‘collateralized debt position’. Among Kava’s unique features include;

  • Generous support for cross-chain assets.
  • Provides a yield earning option where USDX stablecoins are minted and contributed to a Hard protocol.
  • Provides Masternodes and staking opportunities and offers excellent rewards for top 100 validators.
  • Autonomous system for burning coins to regulate supply thus increase demand and leave the currency deflationary.

Ren Protocol

The Ren protocol was initiated with the main aim of providing interoperability between blockchains platforms. The protocol has its native token REN which mainly operates as a bond for the persons running power RenVM Darknodes.

It aims to remove the issues of interoperability and cross-blockchain liquidity. According to Coinmarketcap, the REN protocol has a market capitalization of over $300 million. 

Among some of REN’s best features include;

  • Multi collateral lending, where users can utilize their existing non-custodial smart contracts as collateral for cross-chain assets
  • Enables cross-chain OTC trading with the large volume traders not facing high risks of untrustworthy trade counterparties
  • Allows users to take cross-chain assets to their decentralized exchanges

Defi Yield Protocol(DYP)

Defi Yield Protocol is a smart contract-based network designed to decentralize liquidity provision to everyone on the platforms. It merges an Ethereum mining pool and yield farming to ensure maximum profitability.

For instance, in 24 hours, DYP users earned about 47.69 ETH. Moreso, in just the first 18 days live, the platform’s liquidity providers made 609.98 ETH, an equivalent of $652 thousand. 

Currently, the most outstanding DYP feature is it’s resistance to market manipulation. Due to it allowing everyone to provide liquidity, whalers will not have superiority when causing shifts in prices. 

Although the platform is already feature-rich, DYP will soon be introducing better systems to ensure better service provision and rewards. Among the features include;

Within the next two weeks, DYP will be launching new staking pools with DYP tokens, leading to a total number of 4 DYP staking pools.

The staking pools’ rewards will depend on the lock period, with the lowest reward being 20% and highest being 35% APR, and the lock time ranging between 30 and 120 days.

There will be a RE-INVEST function allowing investors to plow back their rewards without being charged any fee.

DYP referral program will credit 5% of rewards received from referred friends to the referee.

However, with all those features, DYP is still working hard to give even better products like;

  • DYP Earn Vault
  • ETH mining pool
  • Governance upgrade
  • DYP tools with 100% decentralization, aiming to bolter DYP use cases

Band Protocol

Band protocol is a platform that collects real-world data taking it to on-chain applications, and also creating some links for exchanging information between on-chain and off-chain data sources. 

Therefore, the Band protocol gives a gateway for users/developers to get any form of real-world data and use it. Band protocol later launched on Cosmos and reached even more expansive grounds including accessing more real-world data like sports results, insurance, weather etc. 

Among some of its best features include;

  • Speed and efficiency
  • Compatibility with many blockchains
  • Permissionless oracle creation
  • Simple, smart contract integration

Ox 

Ox is a Defi protocol designed to eat the process of Swapping ERC20 tokens built on the Ethereum network. The protocol can scale-out things in the Ethereum blockchain, enabling the chain to be more scalable, thus handling more transactions. 

Ox network’s good performance is increased speed, security and immutability of the Ethereum blockchain. 

In coinmarketcap, Ox is among the top 20 best performing Defi platforms, with an adequate market capitalization. There are currently 1 billion ZRX in circulation. 

Unique features from Ox include;

  • It supports both ERC 20 and ERC-723 tokens from the Ethereum network
  • Has comprehensive and unique applications including its possibility of being applied in marketplaces
  • Shared liquidity
  • Trustless exchange

Conclusion 

The Ren protocol provides powerful tools, in multi collateral lending, and cross-chain trading. The band protocol offers top speed, compatibility and proper smart contract integration. 

Ox protocol offers top solutions to the Ethereum blockchain, including scalability. Kava is an excellent USDX stablecoin lending platform, opening a world of opportunities for users. Defi yield protocol, a feature-rich platform that guarantees users top stability with features like resistance to manipulation, and the earn feature to help users maximize income.

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