DeFi projects are hot right now because of the flexibility, limitless transactions, and sense of ownership they offer users. Experts believe that they are the future of finance because they allow being underbanked and carrying out transactions at cheaper fees (compared to banks and other institutions) from anywhere in the world in minutes without rigorous registration requirements. All you need is a wallet which can be created easily on any smartphone.
In this content, we highlight 5 DeFi projects that could be the shining stars of 2023.
Aave is a DeFi project that deals in overcollateralized loans – loans backed by collaterals that are worth more than the amounts borrowed. It uses smart contracts to automate lending, borrowing crypto and distribution of assets and has strict rules to protect lenders and borrowers.
AllianceBlock is a protocol connecting DeFi and TradFi (traditional finance) and enables both sectors to profit. AllianceBlock runs a staking reward program that rewards owners of institutional, data, and service nodes to secure tokens to add more value to network users and stakeholders. Recently, AllianceBlock shared that it is joining forces with ARTBANX, an art collection management system to construct seamless gateways between TradFi and DeFi.
Uniswap enables users to transfer Ethereum tokens through Ethereum Blockchain. Uniswap was launched in 2018 and is often referred to as the top decentralized exchange (DEX) on Ethereum Blockchain. DEX is independent of third parties in handling users’ cash, affording users financial liberation. DEX is more secure than a centralized exchange due to the absence of a hackable central point of failure.
Founded in 2019 by Julian Hosp and U-Zyn Chua and currently the fastest-growing fintech platform in Southeast Asia, Cake DeFi aims to bring crypto to daily life. On the platform, users have the option to buy, sell, swap, lend, borrow, freeze and invest in liquidity pools. You can easily adjust how you spend your assets through the user-friendly interface.
Orbs is a blockchain platform that enhances the capabilities of existing EVM and non-EVM smart contracts. With the rising complexities of DeFi platforms and their reliance on centralized infrastructure, Orbs operates as a decentralized serverless cloud that can allow developers to extend smart contracts with decentralized backend services.
These are the 5 DeFi projects to watch out for this year. Stay tuned as we share more exciting DeFi and NFT news!