3 DeFi Breakthroughs You Might Have Missed in June 2020

3 DeFi Breakthroughs You Might Have Missed in June 2020

By Ed-california | CoinBuzz | 7 Jul 2020


Hello again everyone. It’s been a long time since I’ve posted but well, we’re all having a tough time with the lockdowns and the consequences of the pandemic. 

COVID-19 doesn’t seem to be affecting the cryptocurrency market though - a lot of action has happened in June. May was all about the halving, but June was all about defi. In fact, that’s all anybody seemed to talk about but you can’t blame them. It has almost given the whole market a new life and renewed a belief that Ethereum will be the future of decentralized finance.  

Developments happened at a breakneck pace but some were so significant that they would go down as this year’s biggest milestones in my opinion. Continue reading to see the 3 biggest defi breakthroughs that happened in June. 

1. Compound Launches $COMP Token 

63e40892c14ef7575eab359d811f85812b21acbe879556535828811c1688a676.jpeg

Source

On June 15, Compound Finance (COMP) announced that it had launched its governance token COMP, which let users stake the asset and decide on critical network decisions, such as the approval of new markets to the platform. Compound lets users earn interest on assets by providing liquidity and the governance token allows votes on such parameters as interest rates.

Why was that a breakthrough? 

The launch that started it all (okay, maybe that’s an overstatement), Compound Finance’s launch of the COMP token immediately sparked a migration to the platform, with COMP’s value and market cap skyrocketing and overtaking Maker (MKR). 

It was also the first time a project decided to launch a token AFTER it had built a viable product that had proven itself - unlike an ICO, where so many have been misled with token sales only for the project to produce nothing. Compound’s value and service have demonstrated that new releases in the defi space are some of the promising developments. 

Where is Compound Finance today?  

2. Loopring Pay 

c4a581cba0c836bcc913270cb439a9a191f90a38657e6c25daed45187222767d.jpeg

Source

The Loopring (LRC) team announced on June 6 that they had launched their instant and free payment service for ERC-20 tokens, called Loopring Pay. The team took their zkRollup solution and applied it to payments (previously having been applied to exchanges only). The solution will be made available to other apps and wallets, and will come to the Loopring Wallet as well. As of June 7 the instant payments feature is only available at Loopring.io 

Why was that a breakthrough? 

The Loopring protocol has proven that it can boost the performance of decentralized exchanges by a great deal with the current throughput being greater than 2000 transactions per second. That kind of performance in payments - and also allowing third parties to integrate the solution - brings the kind of scaling Ethereum needed for a long time.

Anyone can build atop of Loopring's tech and utilize its zKRollup implementations not only for DEX purposes but also for near-instant erc-20 transfers at the cost of ~$0.00006 per transfer, what is currently covered by Loopring at Loopring.io

Where is Loopring today?  

3. OMG Scaled Ethereum Mainnet 

eac268688b2c41a6e0f7cbf151c2bed7987ff6e7ed756be7239105b6e8b541b6.jpeg

Source

On June 1, OMG Network revealed that they had deployed their plasma scalability solution to the Ethereum mainnet, greatly boosting throughput and reducing costs. The project, which has Vitalik Buterin as advisor, had been working on the solution for years, which is one of the first layer-2 scaling solutions to come to life. The launch was accompanied by the release of a demo web wallet and blockchain explorer.

Why was that a breakthrough? 

OMG Network’s More Viable Plasma (MoreVP) scaling solution has seen much discussion in bringing the kind of layer 2 performance that would make large scale use of Ethereum possible. It might not be the only scaling solution out there, but it saw a lot of support. In addition to scaling Ethereum to thousands of transactions per second, Plasma also reduces transaction fees by 66%!

Where is OMG Network today?  

  • Tether - the largest stablecoin issuer is using OMG Network’s Plasma solution to reduce transaction time and costs 
  • Parent company SYNQA raised $80 million in Series C funding
  • Currently ranked 42 by market cap, with approximately $213 million 

And all of that has only happened in June. The signs are good for the defi space and it’s very likely that we’ll see even more progress in the months to come.


Ed-california
Ed-california

Crypto's the future and you know it.


CoinBuzz
CoinBuzz

In-depth Crypto Opinions and Analysis.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.