The DeFi sector continues to see expansion in all aspects. According to recent reports, the market currently holds over $6 billion in value locked in Smart Contracts. Impressively, this growth is increasing in both its scope and rate. There are now more products, protocols, and platforms than ever in the market. This ever-growing diversity can make finding the best platforms a real choir.
At the current rate of entry, you would need to put aside some serious time and effort to get even the smallest grasp of the market. Complicating matters is the fact that there are new financial instruments being developed daily. These new systems provide more opportunity but also make understanding DeFi an ever-growing challenge.
Luckily, there are some DeFi projects that deserve your attention for their unique approach. These platforms introduce proprietary technologies and business models to eliminate some of the most pressing issues facing the market currently. From staking and lending for profits to eliminating centralization, DeFi is impressive.
Here are 4 unique DeFi Projects to watch for the end of 2020
The Force Protocol
The Force Protocol is an add-on that works across the DeFi sector. This extra package for decentralized finance was designed to rectify some of the inherent issues developers and users encounter on the Ethereum network. Specifically, The Force Protocol streamlines contract upgrades, fixes data structure issues, removes slow on-chain interactions, and poor user experience due to a lack of necessary infrastructure.
The Force Protocol consists of a set of DeFi technical components and tokenized protocols that simplify the core functionalities of DeFi investing. The platform provides users with secure, inclusive, innovative, and transparent blockchain-based financial services. Additionally, the system introduces solutions for cross-platform transactions, stable coin issues, and on-chain payments
The Force Protocol relies on three DeFi technical components that all interact to accomplish the platform's goal. These components include fundamental components, extension components, and financial components. Together, these tools create a highly usable DeFi interface geared towards all user types.
Synthetix is a decentralized investment platform that brings new capabilities to the market. The platform's main characteristic is its ability to create Synths. Synths are on-chain representations of real-world assets. These synthetic versions of real-world assets can then be traded on a peer-to-peer basis.
This decentralized, non-custodial, multi-token infrastructure provides users with an impressive variety of DeFi protocols. Users can earn profits via staking, inflation, and fees. The SNX token makes it all possible. SNX is staked as collateral to potentially create any synthetic asset that resides on the platform. In this way, users can trade nearly anything from stocks like Tesla and Apple, to debt-equity on top of Ethereum.
Importantly, Synthetix recently partnered with Chainlink to ensure that its network provides the most up-to-date pricing metrics. ChainLink is another popular project that hosts a blockchain of oracles. Oracles are off-chain sensors that can send and receive data from a blockchain.
DeFi Yield Protocol (DYP)
The DeFi Yield Protocol (DYP) removes whale manipulation from the DeFi space forever. DYP takes care of this concern by integrating a DYP anti-manipulation feature that ensures that the rewards from supported tokens (DYP/ETH, DYP/USDC, DYP/USDT, and DYP/WBTC POOL) are automatically converted from DYP to ETH at 00.00 UTC. Also if the price of DYP is affected by more than -2.5 then the maximum DYP amount that does not affect the price will be swapped to ETH, with the remaining amount distributed in the next day rewards.
DYP Finance offers a Utility Token that enables users to interact with the features on the DYP smart contract. Ethereum miners can join the DYP mining pool and get rewarded monthly with a 10% bonus from the ETH monthly income earned by the pool. The automated Earn Vault will distribute 75% of profits to liquidity providers while the 25% left will be used to buy back their protocol token to add liquidity and maintain token price stability.
DYP features a decentralized governance protocol that helps the network to maintain a strong community of users engaged in the platform's development. Interestingly, the community gets to vote on whether to burn or reward users with the DYP tokens the anti-manipulation protocol secures. This level of community participation is one of the best aspects DeFi brings to the market.
NFTfi is a hybrid platform that takes the best aspects of DeFi and combines them with the growing value of the non-fungible token (NFT) sector. NFTs are blockchain verifiable collectors. The most popular form of NFT is ERC-721 tokens. Examples of valuable NFTs include tokens from Gods Unchained, Decentraland, Cryptovoxels, and Cryptokitties. These tokens are also what's used to verify digital artwork.
Users can stake their NFTs and receive loans using NFTs as collateral. This strategy allows anyone who owns inactive or unused digital assets to use them to get short term crypto loans. When users repay this loan with interest, their NFT is unlocked.
Lenders can browse through the selection of NFTs available at any time. Once they find an NFT they are willing to lend against the process is simple. They select the amount they are willing to lend and make an offer to the borrower. If the offer is accepted, the NFT gets locked in a smart contract. If the borrower is unable to repay the loan, the lender gets to keep the NFT.
4 Unique DeFi Projects to Watch
The rise of DeFi introduces some new and exciting ways to earn free crypto. The key to success is to only stick with reputable platforms like the ones listed above and you are sure to achieve your desired ROIs. DeFi may be new, but the profits its producing are enough to motivate continued adoption for years to come. As the year starts to close out, there's no reason to slack on your investment strategy.
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