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Highlights
- Over the past two or three years, the DeFi space has grown massively and has attracted massive interest from millennials.
- In the early stages, the DeFi infrastructure was on the Ethereum blockchain. However, now other blockchains have DeFi services.
- As the crypto ecosystem is growing rapidly, DeFi space could boom in future.
Decentralized Finance, or DeFi, comprises financial services that are not controlled by a central authority and do not require intermediaries.
Over the past two or three years, the DeFi space has grown massively and has attracted massive interest from millennials.
In simple terms, the Decentralized Finance infrastructure is not run by a central entity. But it is managed through a shared ledger system, which includes decentralized exchanges, stablecoins, lending platforms, and even stablecoins.
In the early stages, the DeFi infrastructure was on the Ethereum blockchain. However, now other blockchains have DeFi services and allow finance apps to run.
Although there's an ongoing debate on whether the DeFi services will replace the traditional financial services, there's no denying that they are becoming popular.
Let's look at top DeFi projects that could be explored in the second half of 2022.
1. Polygon
Previously known as the Matic Network, Polygon is an Ethereum scaling and infrastructure development platform. It is believed that Web3 is for all and supports the DeFi infrastructure.
Polygon allows users to build decentralized applications while charging a low transaction fee and claims to be highly secure.
Also Read: What is Spintop (SPIN) crypto, and why is it soaring?
MATIC is the native utility token of the Polygon network, and it has managed to yield higher returns for holders. Notably, the MATIC crypto returned more than 250 per cent in a year.
2. Avalanche
It is a smart contracts platform based on blockchain technology, and it is also one of the leading projects in the NFT space. In 2021, Avalanche raised US$ 230 million in funding, and it had 225 projects at that time, including DeFi projects like SushiSwap and Tether.
As per the official website, Avalanche offers low-cost and fast transactions. Additionally, it is eco-friendly, which is important amid environmental concerns over crypto mining.
AVAX is the native token of Avalanche, and it can be used for staking and payments.
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3. Aave
It started as ETHlend in 2017 and has emerged as the leading DeFi platform over the years. Aave is a decentralized liquidity platform, and it enables users to earn rewards on deposits and borrow digital assets.
The platform claims to integrate borrowers and lenders in a decentralized ecosystem, and users can earn rewards and discounts by staking the AAVE coin on the platform.
Also Read: What is Celo crypto and why is its price skyrocketing?
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