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DeFi Protocols – An Overview

DeFi is a network of open, decentralized and interconnected financial products built on blockchain networks like Ethereum, Cosmos, Polkadot and Wanchain. With smart contracts and other dapps, DeFi protocol is set to completely disrupt traditional finance systems.

DeFi, simply put, makes it possible for anyone to carry out financial transactions without the need of a central entity. Users are in total control and are the sole decision-maker on what happens to their assets.

DeFi is currently one of the fastest-growing and most disruptive niches in the blockchain and crypto space. Many schools of thoughts see the possibilities embedded in this ecosystem as limitless.

Five DeFi protocols to look out for

1. Chainlink

First on the list is Chainlink, a decentralized price reference platform that provides real-time data to smart contracts. While smart contracts are a worthy innovation, they are however unable to securely connect with real-world data off-chain. Chainlink provides a solution to this issue, it serves as a secure link between smart contracts and off-chain data. Therefore, providing reliable, secure and accurate real-world data for smart contracts. The native token of the entire Chainlink ecosystem is LINK.

2. REN Protocol

An open permissionless protocol that allows the private transfer of assets between blockchain. REN protocol makes it possible for users to acquire tokens from any blockchain by simply making use of pre-existing smart contracts. The protocol completely eliminates the problems associated with wrapping and unwrapping tokens.

3. Reserve Protocol

Known as a decentralised stablecoin platform, Reserve Protocol is designed to ensure over 100% on-chain collateral support. To achieve this, the platform scales its supply with demand.

4. 0x Protocol

0x (ZRX) is a DeFi protocol that facilitates the exchange of tokens and assets issued on the Ethereum blockchain. With 0x, developers can easily build their own applications for exchanges. 0x native token ZRX powers the entire 0x ecosystem and can be used to execute an update of the 0x protocol. The platform also carries out decentralized loans services. With the protocol, lenders can easily organize and also determine market prices for outstanding loans.

5. Cred

Providing top-notch lending services, Cred is well known globally as a licensed lender. It provides business and retail credit by making use of a “substantial balance sheet”.  Cred native token is the LBA. It provides users with unrestricted access to premium financial services.

Traditional finance systems have been a source of concern to the average person. DeFi systems with its apps and smart contracts are viewed as being the solution to the less than reliable conventional financial systems.

About the author

An ardent lover of the cryptocurrency and blockchain space. Educating others about this innovative tech is a lifelong goal.

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Crypto Stats

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin37,183 1.03 % 11.11 % 1.37 %
Ethereum2,609.4 0.54 % 3.45 % 0.88 %
Tether1.000 0.32 % 0.39 % 0.26 %
Binance Coin376.63 1.41 % 6.92 % 4.14 %
Cardano1.620 1.30 % 2.84 % 6.88 %
Dogecoin0.3449 0.47 % 4.48 % 7.59 %
XRP0.8993 1.20 % 2.55 % 11.07 %
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Polkadot23.22 1.58 % 6.93 % 1.37 %
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