The decentralized finance (DeFi) market is now a $100 billion sector, and wise investors are eager to invest in the market. 2021 saw an unprecedented growth of the DeFi, and investors are out searching for the most promising DeFi projects to invest in. Although the DeFi boom is growing by the day, there are a lot of people who don’t understand what it is all about.
Decentralized finance is a combination of financial applications that are deployed on the blockchain network. Unlike the traditional financial institutions, DeFi is decentralized and doesn’t depend on any central control. There is huge potential in the DeFi sector, but most people are already overwhelmed with many projects that they don’t know where to start. This creates a barrier of entry for many people.
We have carried out thorough research to identify the top 5 most promising DeFi projects to invest in. These projects are selected based on the viability of the idea, the experience of the team behind the project, and the growth potential of the token of the project.
Top 5 Most Promising DeFi Projects
QUBE is a decentralized finance project designed to improve the success of crypto enthusiasts. It is a multifunctional crypto platform that provides varieties of DeFi services like swap protocol, staking pool, and it also serves as an NFT marketplace and many more. According to the whitepaper, the vision of the QUBE project is to serve as a single platform where users can do whatever they want in the DeFi ecosystem. It is a universal DeFi and crypto space designed for networking, investing, trading, and improving skills in working with crypto assets.
Notable that the QUBE token does not plan to be limited to the ERC-20 standard. The team plans to deploy it on different blockchain protocols like Binance Smart Chain (BSC), Polygon (Matic), and Avalanche. There is currently a shortage of quality launchpads in the DeFi space, which has made it difficult for users to get in the whitelist. To solve this problem, QUBE offers simplified entry and fair selection.
Another one of the topmost promising DeFi projects to keep an eye on is EQiFi. The project is powered by a regulated and licensed bank known as EQIBank, and this sets it apart from the rest in the industry. EQiFi has developed advanced infrastructure to aid borrowing, lending, and investing in Ethereum and other ERC-20 tokens by leveraging blockchain technology. It also caters to selected fiat currencies. Since EQIBank powers the project, it makes it possible to have access to multi-currency bank accounts and credit cards, as the case may be. The interesting thing about this project is that the team took only ten days to reach the funding goal set for the seed phase as well as other strategic and essential rounds. There is no doubt that EQiFi is a DeFi project with huge future potential that is worth keeping an eye on.
3. Synthesis Bank
The major selling point of decentralized finance is its ability to democratize financial services. This is exactly what Synthesis bank does with a view to investment banking. As the name implies, the project is a bank that is built on the Ethereum smart contract. It allows users to invest in a wide range of different assets in a single and simple channel without the need for an intermediary and with as little interference as possible. With Synthesis bank, investors can invest in digital assets and other emerging alternative financial products. The project aims to develop a streamlined offering that would enable both retail and institutional grade investors to participate in solid-backed tokens and crypto assets via a simple channel. Its audit was carried out by CERTIK, one of the leading blockchain ranking and verification platforms. Synthesis bank is the first tokenized investment bank.
InsurAnce is an Ethereum-based DeFi project that offers insurance against most of the issues faced by DeFi users. The current DeFi market has been booming; however, it is not yet perfect. Users have faced issues like hacks, bugs, and other external attacks, which led to the loss of assets and the likes. This is where insurance comes in for people that lock their tokens on these DeFi platforms. Therefore, there is a high need for DeFi-related insurance, and InsurAnce is here to fill that space. The project has attracted investments from Parafi Capital, Hashkey group, Huobi DeFiLabs, Hashed, IOSG, and Signum Capital. InsurAnce will cover products from notable DeFi platforms.
Last but not least on our list of top 5 most promising DeFi projects is DODO, an on-chain liquidity provider. This project provides stability via a proactive market maker (PMM) and was first developed on Ethereum as an ERC-20 smart contract. The project later expanded to the Binance Smart Chain (BSC). DODO features capital-efficient liquidity pools (LPs). These LPs support single-token provision, reduce slippage for traders, and minimize impermanent loss. The DODO project eliminates all hindrances impeding the creation of liquidity pools for the issuance of new digital assets. Also, it allows asset ratios, liquidity depths, fee rates, and other parameters to be freely customized and configured in real-time. With these developments, DODO has launched Crowdpooling, a permissionless and equal opportunity liquidity offering product. This is geared towards professional on-chain market makers.
If you are looking for the most promising DeFi projects to get started with, this list is the best you can get. However, it is important that you do your due diligence on each of them to have a sound understanding of how you can benefit from them.
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