In the Crypto market, DeFi is a new trend at the moment. Defi is mentioned hotly and it can be said that DeFi is the current “trend”. In this year 2021, what DeFi projects should you be interested in? Which DeFi Coins Should I Invest In?
All your questions will be answered in the article below, please refer to the following article.
I. What is the DeFi concept?
DeFi (Decentralized Finance) is decentralized finance or open finance which are financial applications that leverage the power of Blockchain to build an open finance. DeFi is completely decentralized and transparent so that users can access and use it anywhere without being dominated by centralized individuals and organizations.
DeFi ensures that each individual is always the custodian of one of their assets anytime, anywhere through the popular means and financial markets that Defi offers.
II. Criteria for choosing potential DeFi Coins
To evaluate a project with potential or not, we should evaluate it on many different aspects:
- Blockchains are new, more scalable and storable;
- Good user experience, build product applications that meet user needs;
- Higher security than coins in the same array;
- Currently there is still investment potential.
III. 10 DeFi Coins You Should Care In 2021
1. Uniswap (UNI)
Uniswap is one of the leading AMMs in the market and is constantly updating and has a solid market share, UNI is even planning to invade the Oracles segment where ChainLink holds the majority of the market share.
The volume of transactions, users on Ethereum, reliability and client file that UNI holds are numbers that will probably make the project even more explosive this year.
2. Sushiswap (SUSHI)
Going in the direction of multi-chain to differentiate, SushiSwap is the first product and also the core product of the Sushi project. This is the fork version of Uniswap V2, so the operating model of SushiSwap is quite similar.
But not a fork sitting still, SUSHI creates its own market with a completely different direction, Multi-chain with many products that have been and have started working: MISO, SAKE,…
Even the SUSHI token price seems to be the only undervalued token right now as they grow so much and promise more potential this year.
3. Curve Finance (CRV)
Curve Finance is a decentralized exchange protocol designed specifically for Pegged 1:1 Pegged Stablecoins or Crypto Assets of equal value.
Currently, Curve’s TVL has surpassed Uniswap, the user volume is also in the top 3 of the current dex, proving that Curve’s breakthrough is huge. In the coming time, if this growth momentum can be maintained, CRV will create more opportunities for us to participate in investment.
4. Polygon (MATIC)
Polygon is a Layer 2 project that helps to scale and improve existing problems on the Ethereum network such as: slow transaction speed, limited scalability, and extremely high fees for performing tasks.
As an extremely successful sidechain, taking advantage of the time when Ethereum was abandoned by the retail community due to exorbitant gas fees, Polygon quickly emerged, attracting cash flow even in less than half a year and becoming most prominent today.
5. Compound (COMP)
Compound is a protocol that allows users to lend and borrow crypto assets without going through any third parties.
The project started in 2021 with TVL under 2 billion USD, but in just a few months, COMP’s TVL has surpassed 10 billion USD at one point. Currently, Compound is still the top 4 Lending projects with the largest TVL in the context of the chaotic market.
6. Aave (AAVE)
Aave is an open source and non-custodial protocol that allows users to profit by depositing and borrowing assets. Simply put, Aave is like a system of lending pools.
Besides being a lending platform similar to Compound or MakerDAO, AAVE also launched a permissioned pool product – a “private pool” for organizations to practice before applying to DeFi, expanding to polygon… The series has made AAVE the largest lending coin with TVL.
7. InsurAce (INSUR)
InsurAce operates like a traditional insurance company, with two main segments: insurance and investment. In this period, insurance projects seem to be quite quiet, but when the market becomes more volatile like now, it is certain that the demand for insurance projects will increase.
Up to now, Ethereum’s scaling solution has received a lot of attention. Although Arbitrum One is still in the process of working on Ethereum in beta state, in the context of Ethereum’s expensive gas fees that can be solved, Arbitrum is also very careful when they test the product very carefully, this probably is a project worth looking forward to in 2021.
9. ChainLink (LINK)
Chainlink is a decentralized Oracle network established in 2017, becoming one of the most commonly used projects today in the entire crypto space. The service that Chainlink provides is to provide external data for smart contracts (Smart contracts) on blockchains.
Perhaps in the Oracle array, there is still no other project that surpasses ChainLink in the near future, besides SUSHI, we should consider the price of LINK at the moment.
10. Yearn.finance (YFI)
yEarn.Finance is a liquidity aggregator, running on the Ethereum blockchain for lending platforms and helping users achieve the highest returns during smart contract interactions.
Previously, Yearn was not considered an ecosystem, it is a project with many partnerships but perhaps we need to review it as recently YFI is making a comeback. Quiet product development will probably occur when projects enter a strong boom phase.
Through the above article, Ola City has introduced to you about DeFi projects and potential DeFi coins in 2021. Hope you will be able to draw investment opportunities for yourself.
See you in the next article.
Ola City Global