The decentralized finance industry (DeFi) has grown dramatically with massive popularity since 2018. This rise has led the industry to reach billions of dollars in investment. DeFi, which provides financial services to people by utilizing smart contracts, gained great momentum, especially in 2020, and has continued to increase this momentum in 2022 as well.
Thus, more decentralized finance projects pop up on the ground than ever before. Moreover, a new DeFi project is entering the industry every day. In today’s article, we will talk about the hottest DeFi projects that every decentralized finance project enthusiast should check out!
Uniswap is one of the decentralized exchange projects, which is one of the most popular DeFi projects. Ever since it was released in 2018, Ethereum-based Uniswap has kept achieving significant transaction volume. It allows the exchange of ERC-20 tokens by using smart contracts. As long as the token is within the Uniswap Exchange Pool, the exchange can be performed for any ERC-20 compatible token.
The project, designed in 2017, is expressed as one of the best DeFi projects. In addition to being a decentralized exchange platform, the project offers users a synthetic asset issuance platform service. As a cryptocurrency based on the Ethereum blockchain network ERC-20, it provides users with transactions on the ERC-20 blockchain network between their crypto money assets and currencies, stocks, precious metals, and other assets.
However, in the SNX system, real-world stocks, fiat currencies, and other assets are traded on a synthetic equivalent called Synths. Thanks to these synths, real-world assets can be traded at the DeFi world for the same price.
The EOS-based mobile game Upland is an increasingly popular real estate trading game with a bright future. Accessible from the Google App Store and Apple App store, this mobile app combines real-world locations with blockchain-based virtual product ownership. However, it does not require a crypto wallet to do this, which is a very convenient feature for people who are far from the crypto world.
By the way, if you say how to protect security without a wallet, the application provides this with the private keys they provide to the users.
It’s not too late to be a real estate tycoon, is it?
NIFTEX allows owners who hold high-value NFTs in their hands to sell their assets in pieces. In fact, this is one of the biggest reasons why we put NIFTEX on this list. Very high-value NFTs such as digital art, video, in-game items, or land plots are somewhat difficult to trade due to their high price.
For example, if you have an NFT worth 10 ETH, you can turn 50% of that value into 50 ERC20 tokens through NIFTEX.
In short, the number of people who can afford an NFT with hundreds of thousands of dollars is quite low. However, at this point, the ERC721 standard allows NFTs to be segmented and sold in this way, and locked in the blockchain network.
Ren (REN) is an open protocol released in May 2020 to enable collaboration and liquidity between different blockchain platforms. REN, the protocol’s token, is the collateral for the network of Darknodes that power RenVM. The project’s goal is to enable the collaboration and thus accessibility and expansion of DeFi by removing liquidity and transaction obstacles related to blockchain networks.
REN simply enables users to have inter-blockchain liquidity that can be used for all decentralized applications.
Fantom (FTM) is a smart contract platform that provides developers DeFi services with its unique consensus algorithm. The consensus algorithm is known as Lachesis and promises a quick, scalable, and secure infrastructure for decentralized applications. As a result, it decreases the processing time required for the transactions, transfers, and verifying.
Fantom also serves as the first DeFi stack developed on an aBFT consensus. The project team states that the project enables users to trade quickly and cheaper.
Besides, FTMs can be used to mind fUSD for DeFi tools, which can be later used to buy and sell synthetic assets, lend, and so forth.
OpenSea is the most popular online marketplace where NFT artworks, collectibles, or game items are displayed, and users can trade with each other.
OpenSea, the first NFT platform established based on a decentralized understanding, utilizes the smart contract package named “Wyvern Protocol.” The OpenSea developer team says that this protocol is one of the most important factors that allows its users to perform their transactions more securely and quickly compared to other NFT market markets.
In order to log into the OpenSea platform, you first need a wallet. Metamask NFT is one of the most commonly used wallets for marketplaces.
As for the Fees, OpenSea is one of the DeFi applications with
Rarible is a platform where digital artists can sell their creations via NFTs, sell them on the Ethereum blockchain platform, and receive a certain amount of tokens in return. Once produced, the artists’ NFTs are put up for sale on the Rarible market and await their buyers. Thus, these original and unique works can be digitally auctioned or purchased directly by others.
Rarible, a fairly new art marketplace, is one of the best (but certainly not the last) apps DeFi offers. It should also be said that everyone involved in trading on Rarible also earns a portion of the 75,000 RARI coins that are distributed weekly.
Zora is a universal NFT marketplace based on media registry protocol. The app allows creators to share their arts to earn money, have people contribute to the media through their opinions, and share what is created.
Unlike Rarible, Zora has no weekly distribution offering. Instead, with each resale, the initiative creator acquires a fee based on a certain percentage.
Audius is one of the first music-only apps created using DeFi technology. The project is promoting itself as the world’s first decentralized music streaming platform. Audius aims to give artists more flexibility, control, and freedom in the music they create. Simply, it supports establishing a more flexible and free music community.
Catalog is another music-based DeFi app where everyone can acquire the best audio masterpieces. The app allows users to collect, trade, and listen to audio works.
The best thing about catalog is that the artists have 100% of the initial sale; what is more, they can determine a percentage-based fee upfront, triggered by every resale.
3box is a decentralized data storage solution based on the Ethereum network. Users can upload their data via the app, which becomes available to reach through any other dapps using a wallet.
3box users can manage and share their private/ public data on the decentralized network. The personal information is kept on IPFS and managed by using OrbitDB.
Civic is a promising solution that enables organizations, such as DAOs, exchanges, and NFT platforms, to arrange accessing-processing to their dApps. It helps these businesses to attract the best userbase based on their policy and goal while reducing loss risk.
The Civic dapp promises a quick verification to maintain the privacy and safety of your online community. The app also has an algorithm to detect bots and spam that might harm your business.
SelfKey is a blockchain-based identity system develop to allow people to own, arrange, and control digital identities.
The company was founded based on the idea that centralized institutions cannot be trusted since they are vulnerable to data breaches and security intrusions.
Hence, they utilize a blockchain network to provide a more secure and private identity system where individuals freely manage their digital identity.
Foundation is another NFT marketplace that aims to create a new creative atmosphere—a world where people trade pieces with other buyers, where the creators can have a share with each resale of their digital NFT.
Creators cannot create an account as they like; instead, they have to be invited by someone who is already a member of the Foundation as a creator. Once you get the invite, you need some ETH in your wallet to create your Foundation profile and share your artwork.
In the app, you are allowed to buy a fraction of the artwork if you don’t want to buy all of them.
SuperRare is a decentralized application allowing artists to create digital artworks paired with a unique token.
Based on the Ethereum blockchain, this platform allows monitoring down to sensitive information related to an artwork, such as its date and origin, while ensuring that this sensitive information is stored in a distributed ledger that no one can manipulate.
As in every NFT marketplace, the platform allows artists to combine their art with a token by tokenizing their creations. Thus, the artifact becomes linked to the Non-Fungible Token (NFT).
Perhaps the best feature of Bitski as an NFT market is that it opens its doors to traditional bank customers as well. The application allows users without a crypto wallet to log in with their bank account and lets people buy NFT with a credit card.
The platform also provides an option to simply fill out a form to generate an NFT, without requiring an invitation, so you can share your NFT with other people.
Showtime is an NFT marketplace that allows users to create, sell, and buy NFTs without gas costs. This application, which is a social network exclusive to NFTs, also has the “like” and “comment” features, which are the most important features of a social media application.
Oasis Borrow is a DeFi application that aims to help users get DAI in exchange for debt by using the Maker Protocol, thus achieving high-profit rates through their crypto assets.
Users can generate DAI by locking their favorite collateral containing ETH, WBTC and more than 25 tokens with Oasis Borrow. Thus, users can open a Maker Vault and deposit crypto collateral assets.
Since DAI is a stable-price cryptocurrency based on the Blockchain, it can be sent to anyone and acquired from anywhere.
Users can become depositors or borrowers in AAVE, a decentralized non-custodial liquidity market protocol. Depositors contribute liquidity to the market in exchange for passive earning, while borrowers can borrow in an over-or under-collateralized trend.
To benefit from the AAVE protocol, users must deposit the amount of assets they prefer, which will earn passive income based on the market borrowing requirement.
AAVE also allows its users to get loans regardless of location. The interest rate of the loan may change depending on the supply-demand balance in the market.
PoolTogether is an ETH-based lottery app that allows users to deposit cryptocurrencies for a chance to win a prize pool on a weekly basis. Accumulated wagering fees in prize pools are based on user deposits.
The system works like this: users need to deposit cryptocurrencies into pools to buy tickets. Each pool’s amount is provided weekly as a draw to a maximum of five winners. However, after the draw, the tickets are not voided but instead are carried over to the next draw until you redeem the prize. For this reason, it is a lottery where no loss is possible.
Dharma is a DeFi app using a smart contract to borrow and lend crypto-assets on the ETH and Matic Blockchain.
The most important feature distinguishing Dharma, borrowing and lending application, from others is that it allows users to make transactions by connecting their bank accounts to the wallet.
The application also aims to make it easier for users to benefit from other applications of the DeFi ecosystem beyond purchasing and token exchange.
Dharma, which was acquired by OpenSea at the beginning of 2022 and has operated under OpenSea since then, can be seen as a promising application for NFT marketplaces as well.
Zapper is a DeFi app that enables tracking and gathering users’ DeFi data from more than 225 DeFi protocols and liabilities on a simple interface.
Apart from managing multiple DeFi protocols from a single interface, Zapper also enables to perform multiple transactions required for protocols at once with a system they call Zapping, which saves transaction fees and time.
The app’s main purpose is to provide an easy, fast, and low-cost experience to every user in the DeFi world.
Gitcoin is a fundraising platform operating on the Ethereum blockchain, where people can financially support open source projects. The app enables projects and its supporters to interact and work together through open-source software.
When project owners post an ad on Gitcoin, employees who meet the criteria for the ad can interact with them and get paid in cryptocurrencies.
Gitcoin, which is trying to support Web 3′ technology to spread it in a decentralized world, has Gitcoin DAO for decentralized management of the collected funds.
By transforming the freelance market into a decentralized one, the Ethlance platform offers a solution to the high fee rates demanded by freelance sites based on the central system.
Those who want to advertise their skills and expertise on the internet are often exploited in various ways by brokerage firms.
On top of that, both the freelancer and the bidder must be able to pay fees to the brokerage firm. However, Ethlance uses smart contracts for freelancers and employers with a 0% fee rate. That way, you don’t have to pay any fees to the mediator.
The Golem project is a DeFi project that takes the decentralized structure to the next level with a very innovative approach. The Golem dApp allows users to rent computing power by paying their own token, GNT. In this way, the Golem becomes a decentralized supercomputer that brings together the powers of all computers included in its network.
The application is often used by people who need additional power to perform complex calculations or tasks that exceed the computer’s capabilities. Hence, when the computer has a functioning shortage, you can immediately buy extra network processing power to solve the problem.
Numerai, developed based on Ethereum, is to introduce decentralization to the field of data science and increase the effectiveness of machine learning. Numerai is also a data hedging project where complex technologies such as artificial intelligence, cryptography, and data science co-exist. Developers and data scientists can create non-compromised models without worrying about privacy.
With Numerai, encrypted and protected data can be bought and sold. When NMR coin is preferred in these transactions, various advantages are offered to the users.
OpenLaw is a technology currently developed to produce next-generation smart legal agreements based on blockchain technology.
The application is still so new and under development. However, the developer team provides lecture documentation that explains how to build an agreement based on the application’s language, enabling integration APIs.
Request Network is a decentralized payment system based on the Ethereum ecosystem, where anyone can securely make payments and money transfers. It aims to eliminate the need for third parties while providing a cheaper and more secure payment solution with broad fiat currency support.
The app also integrates with countries’ financial policies to comply with each country’s trade laws. Request Network also leverages the immutability of Blockchain to generate financial and accounting services.
Axie Infinity is an NFT earn-to-play war game, similar to the Pokemon. Axie Infinity runs on the Ethereum blockchain, and each Axie in the game is an ERC-721-based NFT.
We collect, develop, and fight monsters named Axie with NFT feature. You can earn money by trading the collected Axies.
Axies have four attributes: health, morale, speed, and skill, which make up the fighting power of these cutie monsters.
Why is DeFi important?
DeFi technology is important because it allows people to perform transactions more freely and under their own control, where there is no centralized structure.
What can DeFi offer?
With DeFi, you can benefit from many services such as earning interest, loans, lending, derivatives swapping, and asset swapping without requiring a bank.
Is DeFi accessible by everyone?
Yes, it is. Anyone with an Internet connection can access more open, freer, and fairer financial markets derived from the DeFi technology.
How do dApps work?
dApps utilize a blockchain network, such as ETH, and use smart contracts for automation.
What does the ERC-20 mean?
ERC-20 defines the general standards applied for the tokens on the Ethereum. While ERC stands for “Ethereum Request For Comments,” 20 is the ID number.