Many crypto users have heard about DeFi and some of its better-known platform options. However, only a few crypto users are taking advantage of using these platforms. If they are looking for ways to make their crypto investments work for them it would be reasonable to consider DeFi platform options.
Currently, Ethereum is the most well-established and largest, open-ended decentralized blockchain. The entire DeFi and all its projects are built on ETH.
DeFi continues experiencing significant growth. Currently, it is over a $2 billion market, which has already been deployed across various platform options that offer exchange services, lending services, tokenization services, monetary banking services (e.g., the issuance of stablecoins), or other financial instruments and risk management tools like prediction or derivatives markets.
Decentralized finance platform options offer traditional services to clients in a safe, decentralized, and fast manner, which allows anybody with internet connectivity around the globe to access varieties of financial services/products. Crypto customers can lend, trade, borrow, invest, and even grow their funds in DeFi protocols without relying on intermediaries like banks and other financial institutions.
Here are the top six DeFi platform options that can enable users to invest their funds, take loans, earn interests, borrow funds, and even trade complex financial products without asking anyone for permission to open an account.
MakerDao protocol is an efficient and trusted open-source blockchain. The platform is an engaging experience that enables customers who have Ether cryptocurrency and access to MetaMask in their mobile devices to lend themselves money in form of DAI.
DAI is a stable and decentralized virtual currency pegged to fiat currencies to allow users to borrow and lend money. It is created when clients deposit Ethereum cryptocurrency as collateral into what is identified as Collateralized Debt Positions (a personal smart vault holding Ether).
Compound is another significant platform, which creates decentralized and algorithmic money markets with set interest rates. The platform allows customers to invest Ether and tokens into the protocol, earn good interest rates, as well as lend and borrow Ether and tokens against collateral to short-sell, use, or invest.
Uniswap is a reputable platform that allows customers to swap trustless tokens, implying that all transactions can be conducted on the smart contract network. Uniswap does not use order books. It instead utilizes a claim structure known as liquidity pools, which assist in boosting the platform’s exchange liquidity. Hence, users can offer liquidity for others who intend to exchange tokens, or they can exchange tokens against each other.
Synthetix is a platform, which enables clients to create and then trade synthetic assets. Such synthetic assets are normally on-chain assets, which track the value of various real-world assets.
Synthetix allows customers to access and invest in “Synths” (synthetic assets), which can be anything from indices, stocks, fiat currencies (e.g., dollars), cryptocurrencies (e.g., Bitcoin), energy and agricultural commodities, gold, and other assets. Anything which is traded can be brought on this platform.
dYdX is another vital platform, which brings derivatives, options, and margin trading to the crypto space. The platform enables customers to lend, trade, borrow, and invest within USDC stablecoin, DAI cryptocurrency, and Ethereum markets. Moreover, it provides both cross and isolated margin trading as well as offers perpetual market contracts with USDC and BTC offering up to 10x leverages on BTC.
InstaDApp is a big shot platform that offers various DeFi services such as managing virtual assets, borrowing, lending, leveraging, swapping, and others. The platform offers one-clicking switching platforms that enable users to easily switch to cheaper lending platforms with lower interest rates, particularly for MakerDao and Compound. It is a friendly platform in which users can easily own, swap, trade, borrow, invest, and grow funds.
The Smart Way to Grow Money
It’s clear that DeFi platform options, as illustrated above, offer financial services that fill the gap that lags behind in traditional finance and banking. They, therefore, serve as new platforms that enable financial inclusion and fulfill the widespread adoption needs for crypto and blockchain. They bring non-custodial financial services to the mass market by leveraging Ethereum’s smart contract and interoperability capabilities. With DeFi, ordinary people can pull their money into decentralized asset management platforms and earn interest rates up to 20% and even more in some cases.