4 Underdogs of DeFi that you might want to consider
- The DeFi market has seen a massive surge over the past few months, and it is barely slowing down.
- Still, there are plenty of new projects that are ready to see their own rise and bring something new.
- Their innovative nature will be beneficial for the crypto industry, the DeFi sector, and naturally, the users
The decentralized finance (DeFi) market has exploded in 2020, especially during the summer of this year. Numerous projects that have extremely high potential have already been released, with many more in the pipeline.
In fact, one of them — Uniswap — was just reported to have beaten Coinbase’s monthly trading volume in September. This is the amount of attention that DeFi is receiving right now.
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With that in mind, it is still believed that the hype is beginning to slow down, as the stars of the DeFi sector are beginning to settle in and stabilize. This is exactly the time for some new blood to enter the market, and for investors to move in on these new projects before they start seeing a surge in popularity.
There are three new DeFi projects that are worth considering right now.
DeFiner is a project that aims to allow crypto owners access to a non-custodial P2P platform, which will let them deposit their digital assets and earn interest on them.
The platform will also serve as a lending/borrowing service, so users also get to earn interest on the coins they loan to others. It already supports a number of coins, including Bitcoin, Ethereum, Binance Coin, Tether, as well as DAI.
From what is known, users can expect interest rates between 6% and 12%. Meanwhile, lenders can withdraw their funds at any time.
Next, there is PlotX, which is a decentralized, community-governed project that plans to offer high reward yields when trading on crypto price prediction markets.
This type of platform shows a lot of potential, as it utilizes the wisdom of the community. Using it in a smart way can lead to sizable profits, although they are also known for expensive fees, high risks, and no provably fair settlements,
Still, it allows users to take bullish, bearish, or neutral stances, and earn yields if their price predictions are correct. It is definitely a project worth exploring further.
In the third spot, there is RAY — or Robo-Advisor for Yield. This is basically a smart contract system, which uses off-chain price oracles for automatic fund transfers. The funds are sent to a lending protocol that will find the highest yield and offer it to the user.
Right now, RAY allows users to lend Ethereum DAI, and USDC tokens. As soon as users deposit their funds into one of the RAY smart contracts, they receive a unique token that they can use to prove the ownership of the deposited funds. Of course, that also includes the interest that they gain in the process.
Any additional yield produced by RAY comes with a 20% fee, however. But, the project is confirmed to be legitimate and safe by Trail of Bits.
4) Skale Network
Lastly, there is Skale Network, which is not exactly a DeFi project, but more of a technical infrastructure that allows users to create rather powerful dApps within the Ethereum ecosystem.
One thing to note is that the area of use — a decentralized, modular cloud interface — would be extremely beneficial when it comes to helping the DeFi sector’s scalability. In addition, reducing the load that Ethereum’s network has to deal with would also reduce the gas fees.
With Skale, limitations and compromises would become a thing of the past, and Ethereum would finally be able to recover from the surge of DeFi.