Sirwin
Sirwin

Polygon & Avalanche in De-Fi ecosystem

By idiosyncratic | Idiosyncratic Crypto | 12 Feb 2022


Decentralized Finance has been competing with the centralized exchanges for years. Thanks to several DEXs (Decentralized Exchanges) people are able to be their own banks by providing liquidity for the pairs or multi-components of liquidity pools.

Although NFTs attracted the attention on themselves, the De-Fi ecosystem is still one of the hottest products of blockchain for those who want to liberate themselves from the banking system and the doubtful actions by the existing crypto exchanges.

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We have witnessed the leading position of Ethereum in terms of De-Fi concept when the total value locked (TVL) and the projects on the chain are considered. While Ethereum L1 may have some issues with the transaction fees, Layer 2 solutions such as Polygon, Arbitrum and Loopering have gained reputation with their products.

When I check the situation in De-Fi world, I see the growing interest on both Polygon (L2) and Avalanche blockchain in terms of De-Fi. Let's see what's cooking for us:

Blockchain Activities - Last 30 days

Trader Joe on Avalanche is an interesting project that I think you should have an eye on. This DEX connects the whole Avalanche ecosystem and it is the Avalanche form of Uniswap on Ethereum or Pancake on BSC. It looks like De-Fi concept is appreciated by thousands of people when the inflation becomes a threat for economies.

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Polygon - The King is Back

As you know, we are getting ready for PolyCUB version of Cubfinance on Polygon network. Although the number of L2 solutions on Ethereum is increasing, Polygon is still the most popular one compared to the other counterparties. Although we had some concerns about the transactions and the confirmation process in the recent history, the chain works without any concern now.

I'm using DefiLlama to track data about blockchains and crypto assets.

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We can clearly see that Polygon is back on track with the TVL locked on it. Even though we are nearly half-way of the ATH level, the next bull-run will multiply the ATH imho. Seeing that the growing interest, I assume that PolyCUB will have more TVL on the project than CubFinance on BSC. All we need is a good marketing while all eyes are on Polygon.

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When I check the Dexes that have the highest TVL on them, the DEXs that operate on Ethereum are all integrated to Polygon to make operations affordable for millions of people. Putting BSC and Fantom aside, multi-chain projects are leading the Polygon and Avalanche Network.

Avalanche: Bridges + Incentives + Community = $$$

I appreciate the success story of Avalanche network and I think they are building a sustainable network where things are created slowly but firmly.

When we check the oldest De-Fi projects on the chain (Pangolin and Yeti), we can see that the incentives are still vivid and people have no issues by holding their crypto assets on these liquidity pools.

Trader Joe (The name could be more fancy, though) is the most promising project in the eyes of investors. I think the next DEX token will outperform the others will the Joe when the bull-run starts.

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It is just the top of the iceberg for Avalanche ecosystem for the TVL on it. Many projects establish partnership with Avalanche to operate on that chain, too. I think the brand name is well-represented by the team of Emin Gün Sürer.

IMHO, the next blockchain that LeoBridge will be built should be Avalanche Network since the project is one of the most promising ones that may enable CUB to reach the well-deserved levels.

Situation in De-Fi

Ethereum blockchain is by far the leader of De-Fi ecosystem with $135b TVL locked on it.
Avalanche is ranked at 4th position being $2-4b behind BSC and Terra for now. I expect the flippening from Avalanche to be at the second position when the next bull-run is over. For Polygon, I assume that the project may be among top 5 networks with highest TVL.

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We may discuss Terra and Fantom later. I believe they are worth being mentioned on Hive blog.

TL;DR

Polygon has been gaining its reputation to operating with no big issues as the second layer of Ethereum. Having Curve, AAve, Uniswap on it, Polygon provides many advantages for crypto investors to use MATIC against the other services.

When it comes to Avalanche, I think the project has a long way to go in the crypto ecosystem. When the bridges of AVAX and the incentive programs are considered, the chain has been gathering enough people and projects to be ranked after Ethereum in terms of TVL.

Seeing the on-chain data, I think the bull-run will be great for Avalanche and Polygon network users. For PolyCub, I also assume that the TVL will be much higher than CubFinance on Binance Smart Chain.

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idiosyncratic
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Crypto-Blogger 🖊Blockchain Gamer 🎮 https://read.cash/@idiosyncratic https://noise.cash/u/idiosyncratic1 https://leofinance.io/@idiosyncratic1


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