Popular DeFi platform by protocol
DeFi platforms are all the rage these days. But why is this?
Well, as of July 2022, the Total Value Locked (TVL) in decentralized finance (DeFi) stood at $38.1 billion — a 4X increase since July 2020.
The number of investors entering the market to trade cryptocurrencies has also increased by 178% with experts anticipating figures to hit 1 billion by end of the year.
It’s not hard to see that cryptocurrencies are the 21st century’s version of gold. And everyone wants a piece of the pie.
Great as all of this is, it must be remembered that the world of crypto is like the early 1800s Wild, Wild West — lawless and brutal. Because the industry is still relatively new, due diligence prior to investing is an absolute must.
That’s why in this post, I’ve taken the time to help rookie investors familiarize themselves with DeFi platforms by reviewing the top platforms most investors are trading on.
Pancake Swap
In the Binance Smart Chain (BSC) ecosystem, PancakeSwap (CAKE) is the busiest DeFi platform receiving 13.5 million daily visits. The platform was established in 2020 and its native token is CAKE.
CAKE also has the highest number of listed tradable assets (tokens) — 4, 260. The popularity of the platform may be attributed to the low transaction fees (0.02% for Perpetual Futures trading and 0.07% for takers) and the speed at which tokens are exchanged.
Lastly, although CAKE is versatile giving Binance users a pathway to connect to the platform it is not ideal for beginners as prior experience with other decentralized applications is preferable.
Developer-Friendly DeFi Platform: Uniswap (UNI)
Developers flock to Uniswap (UNI). Part of the Ethereum ecosystem, Uni records the highest developer activity numbers.
The platform’s biggest faux pas, however, is its steep transaction fees. In spite of this, Uniswap boasts the biggest daily trading volumes of all DeFi platforms: $650 million vs. Cake’s $279 million.
Most Popular DeFi Platform in the Avalance Ecosystem: TraderJoe
Trader JOE operates in the Avalanche ecosystem alongside AAVE, Benqi (QI), and AVAX. Established in 2021, Trader JOE already receives up to 3.3 million daily visits. There are 100+ spot cryptocurrencies currently listed on the platform and the native token is JOE.
The platform is secured by the Avalanche protocol and investors can anticipate paying 0.3% transaction fees on swaps.
For those with some knowledge of how DeFi platforms operate, staking, lending, and trading should be a relatively easygoing experience.
Most Promising DeFi Platform: SushiSwap (SUSHI)
SushiSwap (SUSHI) was officially listed on the Binance ecosystem in September 2020. Although riddled with a few scandals, the platform has managed to maintain its influence. In terms of TVL, SUSHI is in 11th position as the platform’s assets are valued at the tune of $1.51 billion.
SushiSwap operates on 16 blockchain networks including Polygon, Fantom, Ethereum, Harmony, BSC, Arbitrum, and Optimism. Features that can be found on the SushiSwap DEX include lending and leverage (Kashi), staking (Sushi Bar), token vault (BentoBox), and IDO Launchpad (MISO).
Innovative DeFi Platform: Ethereum Classic (ETC)
Ethereum Classic (ETC) was birthed in June 2016 following the DAO hack. Being one of the older DEX has placed ETC high up in terms of seniority and most trusted platforms. That’s why its token, ETC, is in the top 100 most traded coins.
The platform which runs on Ethereum Virtual Machine (EVM), also boasts high traffic volumes and developer activity. It is fully decentralized, maintaining the immutability synonymous with Ethereum; supports smart contracts and DApps, and is significantly cheaper than BTC and ETH.
ETC trading fees lie between 0.08% — 0.75% and withdrawal fees cost 0.001 ETC — 0.01 ETC.
Disclaimer: Any information provided in this blog is not intended to replace legal, financial, or taxation advice given by qualified professionals.