DeFi is one of the most hyped sectors of the blockchain ecosystem, which tries to transfer most of the tools and opportunities from traditional finance to the world of cryptocurrencies. It happens through various instruments such as borrowing, investing, and lending with the help of smart contracts. This technology proposes to clients higher safety and anonymity, which allows for making significant profits.

DeFi 1.0 projects took place on the Ethereum blockchain. Saddle Finance, PancakeSwap, Fantom, and others were able to shoot and show great results. DeFi 2.0 will work with different ecosystems, which opens up many more opportunities and prospects. Below, people can find a list of projects that have a chance to take off in 2022.

The platform for DeFi Applications

Avalanche is a platform that allows clients to run decentralized finance apps or provide other services. All smart contracts operate through the Proof-of-Stake protocol. The transaction confirmation time is less than one second. Since its inception, more than 225 projects have been implemented. Successful investment rounds testify to the prospects of the project.

Best rates across the exchanges

Users often face the problem of finding reasonable offers on crypto exchanges. 1Inch created a product that compares deals across different liquidity sources. The system will offer clients only the best prices among the many potential markets. The Pathfinder algorithm allows investors to effectively compare proposals with various blockchain ecosystems such as Ethereum, Binance Smart Chain, and Polygon.

First PoS blockchain platform

Crypto enthusiasts know about Algorand, as it is the first platform to apply the Proof of Stake protocol. People get the opportunity to conduct atomic transfers, as well as apply on-chain or off-chain smart contracts. Recently, the platform announced its intention to promote the development of DeFi projects on the Algorand Network. It has set up a separate $300 million fund. Thanks to this, crypto investors predict the boom of this company in 2022. That is why it is necessary to think about investing in this project.

Trading Without Holding Physical Asset

Synthetix is ​​a protocol based on the Ethereum. The goal is to release synthetic assets that can later be used in cryptocurrencies, inverses, fiat currencies, and other realms. This DeFi tool exists in the form of ERC-20 smart contracts. Users get the opportunity to track and receive profit from assets by holding them. Operations with Synthetix token can be made on Kwenta or DEX Synthetix. This project is gradually gaining popularity in the crypto community, so it has every chance to boom soon.

Bitcoin Usage in Decentralized Finance

Due to the continuous development of DeFi, there is a need to use Bitcoin in DApps. Badger DAO is designed to solve this issue. Sett Vaults allows users to profit from synthetic Bitcoin assets. The company has also created the Digg software that monitors cryptocurrencies with elastic supply.

Besides, Badger DA offers BAGER token holders to take part in the development of the platform. Investors can participate in voting regarding the Badger DAO’s development and receive benefits when new products are released.

Ethereum ecosystem yield-optimization

Alpha Finance Lab launched the Alpha Homora product to enable clients to benefit from yield farming and liquidity provision. The primary advantages of this technology are described below.

  • Innovative yield farming with the ability for 2.5x leverage to borrow ETH on Uniswap pools.
  • Entire anonymity and safety.
  • Swift and straightforward interface with pretty design.

This DeFi technology is one of the successful Binance Launchpad products. The platform, designed in the style of Harry Potter films, is of great interest to crypto investors. This technology has every chance of gaining popularity this year.

Automated liquidity protocol

Everyone interested in DeFi knows exactly about Uniswap. It is a platform built on the Ethereum blockchain and is fully decentralized. The company enables every investor to be a liquidity provider by introducing an automated liquidity protocol. Many tokens are available here, each with its pool and value. Uniswap plans to cooperate with other companies and funds in the future, which opens up good opportunities for users to earn money.

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