DeFi: 1. Polkadot (DOT)
The Polkadot network is a web-based platform designed for blockchain interoperability. Its mission is to “enable a completely decentralized web,” giving control to web users.
It also aims to allow developers to easily build web-based, decentralized apps (dApps) and connect them to businesses or other organizations.
Several projects use Polkadot’s network as a foundation, including distributed ledger consultancy ChainSafe, and recently launched DeFi project Reef Finance.
2. Aave (AAVE)
Aave, formerly LEND, is a “decentralized non-custodial liquidity market protocol” that allows its users to lend or borrow crypto-assets without the need for a third party.
The concept works by allowing individuals to stake several crypto-assets in return for interest paid in Aave-based assets. The staked assets become part of a pool that borrowers can tap into by using other crypto-assets as collateral.
The protocol’s native token AAVE is currently worth $188.31 and has a market capitalization of $2.32 billion. It’s currently ranked number two in DeFi in terms of Total Value Locked (TVL), with over $3.23 billion staked.
3. yearn.finance (YFI)
yearn.finance is a DeFi portal that aggregates several staking opportunities into one easy-to-use platform. This allows its users to stay on top of the cryptocurrencies that provide the best farming yields.
The platform also collaborates with some of the top DeFi applications in the cryptocurrency space, including Cream Finance and Cover Protocol. YFI, the platform’s token, led last year’s “Summer of DeFi,” rising from its launch price of $3,000 to today’s price of $31,016.96.
That may just be the start. Founder and lead developer Andre Cronje was named DeFi person of the year in 2020 by analysis portal DeFi Prime. There is still more to come with yearn.finance, including the second version of its flagship vaults service.
4. SushiSwap (SUSHI)
SushiSwap is a decentralized platform that allows crypto-holders to provide liquidity in return for interest. The platform then uses this liquidity to facilitate “swaps” between different cryptocurrencies.
The sushi theme continues with the platform’s latest product under development, Bentobox, which will add a lending platform to its list of products.
5. Alpha Finance Lab (ALPHA)
Alpha Finance Lab combines several DeFi products from lending to AMMs. Its objective is “to maximize returns while minimizing risks” for its users. It also seeks to make it easier for people to engage with DeFi projects by integrating a user-friendly interface in an often complex space.
Alpha Finance Lab’s latest product, Alpha Homora, will allow users to use leverage to stake tokens such as SUSHI. With Homora set to be launched in the next few days, ALPHA has gained over 300% in the past month.
The platform currently has $452.7 million in TVL, with ALPHA currently sitting at $0.81.