The Major players in Defi Banking

Cover Image for The Major players in Defi Banking
Henny-X
Henny-X

Decentralized Finance (or simply DeFi) refers to an ecosystem of financial applications that are built on top of blockchain networks. More specifically, the term Decentralized Finance may refer to a movement that aims to create an open-source, permissionless, and transparent financial service ecosystem that is available to everyone and operates without any central authority. I'll introduce you to some of the companies making a major impact in no particular order...

A) KYBER

Kyber Network is an on-chain liquidity protocol that lets token holders contribute liquidity (called reserves). The Kyber Network offers multiple types of reserves, each of which exists as a smart contract controlled by whoever deployed it. For example, Kyber Network maintains its own reserve.

B) ZAPPER

Zapper.fi is an interesting platform that lets you quickly and easily deploy and manage your DeFi positions within a single interface. ... It is a DeFi portfolio management dashboard that helps you stay on top of your portfolio, liquidity pools, and liquidity mining positions

C) LOOPRING

Loopring is an Ethereum zkRollup protocol: a layer-2 (L2) scaling solution. Loopring's L2 increases transaction throughput and decreases cost, while maintaining complete Ethereum security guarantees. Loopring's zkRollup supports token transfers, orderbook exchanges, and AMM (automated market maker) exchanges.

D) SY/SX

Synthetix is a decentralized platform on Ethereum for the creation of Synths: on-chain synthetic assets that track the value of real-world assets. Born as stablecoin project Havven, Synthetix rebranded and expanded its scope prior to launching on mainnet in February 2019. As of March 2020, the Synthetix platform supports over 30 Synths representing fiat currencies, commodities (e.g., gold), and cryptoassets. Stocks, indices, and other derivatives are planned.

E) NEXUS MUTAL

Nexus Mutual is an open platform on Ethereum that lets members pool and share risk through a discretionary mutual (a community-owned insurance alternative). Only members can participate in the network, buy cover, and hold NXM (the platform's native token). But anyone can become a member by paying a nominal fee in ETH. The mutual is fully member-owned, and members are entitled to a share of any capital held in excess of what's necessary to pay potential claims.

F) INSTADAPP

InstaDApp is a smart wallet with an intuitive interface built on top of popular DeFi projects like MakerDAO, Compound, Uniswap, etc. for managing assets. It’s optimized for users lacking advanced technical or financial experience.

InstaDApp allows users to perform complex actions like leveraging or saving by buying or selling collateral in a single transaction. One of InstaDApp's most popular features is its Bridge which allows users to migrate debts between Maker Vaults and Compound Finance. Other features include the option to lend assets or add liquidity to Uniswap pools.

G) YAERN.FINANCE

yearn.finance is a decentralized ecosystem of aggregators that utilize lending services such as Aave, Compound, Dydx, and Fulcrum to optimize your token lending. When you deposit your tokens to yearn.finance, they are converted to yTokens, which are periodically rebalanced to choose the most profitable lending service(s). Curve.fi is a prominent integrator of yTokens - creating an AMM (Automated Market Maker) between yDAI, yUSDC, yUSDT, yTUSD that not only earns the lending fees but also the trading fees on Curve.fi.

H) STYHENIX

Synthetix is a decentralized platform on Ethereum for the creation of Synths: on-chain synthetic assets that track the value of real-world assets. Born as stablecoin project Havven, Synthetix rebranded and expanded its scope prior to launching on mainnet in February 2019. As of March 2020, the Synthetix platform supports over 30 Synths representing fiat currencies, commodities (e.g., gold), and cryptoassets. Stocks, indices, and other derivatives are planned.

I) COMPOND

Compound is an algorithmic money market protocol on Ethereum that lets users earn interest or borrow assets against collateral. Anyone can supply assets to Compound’s liquidity pool and immediately begin earning continuously-compounding interest. Rates adjust automatically based on supply and demand.

J) AAVE

Aave (from the Finnish word for "ghost") is an open source non-custodial protocol on Ethereum for decentralized lending and borrowing. For lenders, the protocol mints ERC20-compliant aTokens at a 1:1 ratio to supplied assets. Interest immediately starts compounding continuously, represented by a steady increase in the amount of aTokens held by the lender.

K) CURVE

Curve is a decentralized exchange liquidity pool on Ethereum designed for extremely efficient stablecoin trading. Launched in January 2020, Curve allows users to trade between stablecoins with low slippage, low fee algorithm designed specifically for stablecoins and earning fees.

L) MAKER

MakerDAO is a decentralized credit platform on Ethereum that supports Dai, a stablecoin whose value is pegged to USD. Anyone can use Maker to open a Vault, lock in collateral such as ETH or BAT, and generate Dai as debt against that collateral. Dai debt incurs a stability fee (i.e., continuously accruing interest), which is paid upon repayment of borrowed Dai. That MKR is burned, along with the repaid Dai.

M) UNIWAP

Uniswap is a fully decentralized on-chain protocol for token exchange on Ethereum that uses liquidity pools instead of order books. Anyone can quickly swap between ETH and any ERC20 token or earn fees by supplying any amount of liquidity.