TOP 3 DeFi projects to watch
|Marek Feder|source|8482x
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TOP 3 DeFi projects to watch

The DeFi sector is by far the most interesting category of projects of the 2020 cryptocurrency world. Decentralized finance has brought one crucial idea - the transfer of the financial sector to decentralized platforms. These would completely replace the intermediaries or third parties on which the current centralized system is based. The aim is also to reduce and eliminate various monopolies that plague the financial world.


For the time being, DeFi solutions, projects, and platforms are largely built on Ethereum, bringing users more efficient traditional financial services that are decentralized and accessible to anyone with an Internet connection. These projects are highly credible, as most of them are completely transparent. All of these features, and many more, are helping the DeFi sector to grow. Some of them are particularly interesting and have huge growth potential.


MakerDAO


MakerDAO is without a doubt one of the most important DeFi projects. With a total market capitalization of up to billions of dollars and a dominance of more than 21% in the DeFi sector, MakerDAO is the most-watched project in this category. Its popularity was also boosted by its own stablecoin, Dai, which is one of the most widely used stablecoins in the cryptocurrency sector. This is because Dai makes money on interest rates for borrowing finances, can be used for payments, for trading, or for investing in many DeFi projects that do not allow investment using other cryptocurrencies.


What really sets MakerDAO apart from the competition is its governance and automation systems. These use Ethereum's smart contracts to enable automated borrowing without being inspected by a centralized entity. In addition, voting on whether assets other than cryptocurrencies could be used for lending and borrowing money within the system is currently underway. If this proposal were to be approved, it would mean a significant step forward for the project.


Synthetix


The second interesting project is the Synthetix investment platform. This project, built on Ethereum, is one of the most widely used decentralized exchanges, enabling the creation and trading of the so-called "Synts" tokens. These are "synthetic versions of real-world assets." Simply put, users of this platform can purchase any assets from cryptocurrencies, through precious metals to stocks using ERC20 tokens.


In addition to bringing this interesting idea to the decentralized world, Syntethix is also one of the best in terms of tokenization, token modeling, and their use. However, the biggest success of this project so far is the cooperation with this year's "cryptocurrency miracle" - Chainlink. It will supply the necessary information and data to the Syntethix platform through its blockchain, thus completely reducing the need for other centralized entities. With this move, Synthetix has made it clear that it is serious about decentralization, gaining a large number of supporters.


Uniswap


Another project that has great potential is the DEX exchange Uniswap. This project is undoubtedly driving the DeFi sector forward, as Uniswap is the largest decentralized exchange. In addition to the largest daily volumes on the DEX exchanges, they also boast the largest number of transactions, the highest liquidity, and, in addition, are growing by far the fastest in all these metrics. That is why Uniswap is referred to as one of the most dominant DEX exchanges of the future, which only confirms that this project is definitely worth watching.



Of course, the DeFi sector features many more projects that have great potential. Curve, dYdX, Anyswap, Aave, Balancer, or, for example, yEarn.finance, which earned its investors up to 32,000% in a month, are worth mentioning. Projects in this sector show huge growth potential and therefore it pays to follow them.

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