In Q2 and Q3 of 2020, many Defi projects promise to be introduced to the crypto community. VakaFx has selected and introduced to readers the top 5 Defi projects in 2020 that you should invest in.
YFValue (YFV)
One of the best rated Defi projects is YFVaule (YFV). YFV is a YEarn-inspired governance token that rewards investors. The project aims to bring real value in profitable farming finance (Yield Farming) to all users, whether you are whales or baby fish. Supply inflation rate voting and a referral system with automatic burning are performed entirely online.
Compound Finance (COMP)
Compound Finance is one of the first projects to shift the focus of investors away from Bitcoin to profitable farming. By lending digital assets through the Compound's liquidity pool, investors immediately begin earning compound interest.
Furthermore, in June, the COMP token is listed on Poloniex, thus creating a spectacular increase in value from $ 55 to $ 385 (600% return). COMP is subsequently listed on both Coinbase and Binance shortly thereafter.
Given the latter fact that COMP is listed on prominent exchanges such as Coinbase, Binance, and Poloniex, strengthened Compound Finance's position in the DeFi market by 2020. Furthermore, according to DeFiPulse.com and at the time of writing, $ 801 million of digital assets are currently locked, thus providing additional evidence that investors are confident about its future.
Yearn Finance (YFI)
With a circulating supply of 29,961 YFI, Yearn Finance has exploded cryptocurrency. Due to demand, the value of YFI has skyrocketed compared with Bitcoin's current value of around $ 12,000. At the time of writing, YFI is trading at $ 13,797 after hitting an all-time high of $ 16,700.
The success of the YFI token is one reason that Yearn Finance is a leading Defi project for 2020. The total value of more than $ 750 million is locked in the Defi project. YFI has been listed on major exchanges like Binance and Bibox, thus providing legitimacy for the project.
Additionally, Yearn's decentralized ecosystem aggregates lending services such as Aave, Compound, DyDx, and Fulcrum to optimize token lending. Depositing money into Yearn means they are rebalanced to choose the most profitable lending service.
Yam Finance (YAM)
Yam Finance's story has a few similarities with DogeCoin in the sense that the project was launched as an experiment. The creators of Yam Finance even warned investors that its code was still unaudited but by the time YAM had first glitched, more than $ 477 million have been locked on the Defi platform.
The fact that its creators learn from their mistakes and started the transition to YAMv2 proves that it is a flagship project for 2020. Its migration contracts are audited by PeckShield and YAM finance there will likely be another move in the Defi arena.
Curve Finance (CRV)
Like Compound, Curve Finance gained prominence in Q3 2020. At the time of writing, around $ 1 billion in assets are locked in the platform. Launched in January 2020, Curve allows users to trade between stablecoins with minimal slippage and low fees.
Its liquidity pool is powered by Compound and Yearn Finance, thus providing the volume needed to enable efficient asset swaps on the Curve. With the Ethereum network being a dome-shaped activity leading to high gas fees, Curve provides the perfect solution for those looking for a safe and cheap option to switch between stablecoins.
Curve Finance can be considered as UniSwap for stablecoins. Currently, fees across all pools are 0.004% and there are no administrative fees, thus, providing incentives for traders who prefer Curve Finance.
Just (JST)
All the popular Defi platforms above are built on the Ethereum network and the Defi Just project separates from this model as it is built on the Tron network. The Tron network is extremely fast when compared to Ethereum in its current state. Furthermore, transactions on the Tron network are cost-free, thus attracting the attention of DeFi investors who are looking for lower fees and faster speeds.
The key to Just's future is the decentralized platform JustSwap that allows seamless exchange of TRC20 tokens like Ethereum's UniSwap. All developments surrounding the Just ecosystem come through the efforts of Justin Sun and the Tron Foundation. Sun is known for his non-stop work ethic and he decided to give his all to DeFi as explained in his most recent letter to the Tron community.
Conclusion
In short, 2020 will enter cryptocurrency history as the year of DeFi. In the second and third quarter of 2020, several DeFi projects stood out for their ability to attract profits and the visibility of their creators.
Hopefully, with this article, you will find a potential project to invest in. Good luck.
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